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- Gen Z's Holiday Spending Surge: How Retailers Are Leveraging AI, Social Media, and Discounts to Capture Their Attention
Gen Z's Holiday Spending Surge: How Retailers Are Leveraging AI, Social Media, and Discounts to Capture Their Attention
Temu and Shein's rapid growth has surged parcel delivery volumes, with each shipping around 900,000 packages daily in July, leveraging cost-saving supply chain strategies.
🎉 Hello, Retailist Roundup readers! As we wrap up the week and head into the weekend, let’s dive into the latest exciting developments in retail and e-commerce. Our roundup is packed with key updates, emerging trends, and innovative shifts that are shaping the future of our industry. Get ready to explore the top stories!
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To capitalize on this spend-happy consumer demographic, retailers are investing in AI (70%), social media ads (39%), influencer marketing campaigns (35%), email marketing (33%), and SEO (29%)
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In the news: Top headlines this week
Macy’s Set To Close 55 Stores by the End of 2024. Macy’s has announced plans to close 55 stores by the end of 2024 as part of its ongoing business revamp. Originally, the company intended to close 50 stores this year, but that number has increased. Though the specific locations haven't been confirmed, speculation suggests closures in Newington, NH, Traverse City, MI, and Tampa, FL, which may happen after the winter holidays. [Retail Wire]
Ulta Beauty Reports Mixed Q2 Results. Ulta Beauty reported net sales of $2.6 billion for Q2 fiscal 2024, slightly up from $2.5 billion last year. However, comparable sales dropped by 1.2%, a stark contrast to last year's 8% increase. Net income fell to $252.6 million, or $5.30 per share, from $300.1 million, or $6.02 per share. Gross profit margins and operating income also declined, while SG&A expenses rose due to higher store payroll and marketing costs. [Retail Wire]
Rite Aid Emerges from Chapter 11 and Appoints New CEO. Rite Aid announced it will operate as a private company after emerging from Chapter 11 bankruptcy. During the restructuring, the company closed hundreds of stores, sold its pharmacy benefit company Elixir, and negotiated settlements with lenders and creditors, including McKesson. Ownership has shifted to Rite Aid's creditors, and all existing common shares have been canceled. [Reuters]
Temu and Shein packages are flooding delivery networks. Will the surge persist? Temu and Shein's fast growth has significantly boosted the parcel delivery market. In July, each company shipped around 900,000 packages daily in the U.S., according to ShipMatrix data. Their streamlined supply chain leverages the "de minimis" exemption, helping keep costs low, attract more shoppers, and increase shipping volumes for carriers. [Retail Dive]
Verizon To Acquire Frontier Communications in $20 Billion Deal. Verizon Communications announced plans to acquire Frontier Communications in a $20 billion all-cash deal, aiming to expand its fiber network to 25 million premises across 31 states and Washington, D.C. Frontier, with 2.2 million fiber subscribers, will merge with Verizon's Fios network, which currently serves 7.4 million customers. The acquisition will enhance access to high-speed internet, mobile services, and advanced digital solutions, strengthening Verizon's position as a leading connectivity provider. [Retail Wire]
Dollar Tree shares plunge 22% after discounter cuts full-year forecast. Dollar Tree's shares dropped over 22% after the retailer cut its full-year outlook due to increasing pressures on middle- and higher-income customers. The company now expects net sales between $30.6 billion and $30.9 billion, down from previous guidance of $31 billion to $32 billion, and adjusted earnings per share between $5.20 and $5.60, lower than the prior estimate of $6.50 to $7. The forecast was lowered due to softer sales, costs from converting 99 Cents Only stores, and increased expenses related to customer claims and incidents at stores. [CNBC]
Walmart expands marketplace offerings with StockX sneaker deal. Walmart is partnering with StockX to expand its sneaker offerings on the Walmart Marketplace. StockX will launch its first marketplace sales channel through Walmart, offering hundreds of pre-verified sneakers, including popular models like Nike Jordan 1s and New Balance, starting next week. StockX's platform allows buyers and sellers to make real-time, anonymous bids on shoes, apparel, and other collectibles, with all sneakers verified as new and in their original packaging. The partnership is set to begin on Tuesday. [Retail Dive]
Red Lobster cleared to exit Chapter 11 bankruptcy protection. A bankruptcy court approved Red Lobster’s plan to exit Chapter 11, moving the seafood chain closer to emerging from bankruptcy. The company, which filed for bankruptcy in May due to increased competition, costly leases, a failed shrimp promotion, and reduced consumer spending, will be acquired by RL Investor Holdings by the end of the month. Former P.F. Chang’s CEO Damola Adamolekun will take over as CEO from Jonathan Tibus, who led Red Lobster through the bankruptcy process. [CNBC]
Walgreens sued by shareholder amid plummeting stock price Walgreens and its top executives, including CEO Tim Wentworth and CFO Manmohan Mahajan, are being sued for allegedly misleading shareholders by inflating the financial outlook for its pharmacy business. The lawsuit, filed in Illinois district court, accuses them of overstating expected revenue for the 2024 fiscal year and making false claims about the pharmacy division’s performance and growth. The suit also names 10 other high-level executives and Walgreens board chairman Stefano Pessina as defendants. [Retail Dive]
Volvo Announces New Technology Approach and Scales Back All-Electric Goal. At Volvo Cars' Capital Markets Day on September 5, 2024, the company introduced the Volvo Cars Superset tech stack, a unified technology platform for all future electric vehicles, starting with the EX90. This modular and flexible platform integrates systems, modules, software, and hardware, enabling continuous improvements across all electric models. The Superset tech stack allows for upgrades to benefit both future and existing vehicles, improving quality, speed-to-market, and overall vehicle performance. [Retail Wire]
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