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- 📱As Retail Media Networks Widen Their Scope, Is a Reckoning Inbound?
📱As Retail Media Networks Widen Their Scope, Is a Reckoning Inbound?
This shift may ease supply pressures
🎉Hello, Retailist Roundup readers! As we bring another dynamic week to a close, the excitement in the retail and e-commerce sector is undeniable. This week has been brimming with pivotal updates, emerging trends, and groundbreaking innovations that are transforming our industry. Ready to dive into the top stories? Join us as we explore these developments and their wide-reaching impacts!
New from Retailist
Hybrid Work Models in Retail: Strategies for Balancing Remote Work
Whether it’s to see or feel products in person before making a buying decision or to connect with a real-life employee for service with a human touch, it’s clear that people still want the option of a brick-and-mortar storefront, even though e-commerce options are becoming increasingly convenient.
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In the news: Top headlines this week
Hugo Boss May Push Back 2025 Targets as Luxury Sector Falters. Hugo Boss may delay its key sales and profit targets beyond 2025, with investors anticipating updates on trading and cost-cutting plans in its second-quarter results. Shares fell by 10% in July due to weakened global consumer demand, especially in China and Britain, leading to lowered full-year sales and earnings forecasts. Despite these challenges, the company still aims for an EBIT margin of at least 12% next year. [Reuters]
As Retail Media Networks Widen Their Scope, Is a Reckoning Inbound? Retail media networks are expanding from onsite advertising to offsite channels like connected TV, social media, and open-web programmatic, aiming to leverage first-party data beyond retail. This shift may ease supply pressures but introduces complexities regarding margins and transparency. Retail media has seen rapid growth, but now it faces the challenge of proving its value in the broader digital advertising landscape. [Retail Dive]
Amazon Sets New Delivery Record. Amazon has achieved a new delivery record by delivering over 5 billion items globally within the same or next day so far this year, marking a 30% increase from last year. This success is attributed to Amazon's strategies such as expanding same-day delivery to over 120 U.S. metro areas, regionalizing fulfillment to reduce delivery distances, and using machine learning to improve inventory placement and efficiency. Additionally, Amazon invested $750 million in safety, significantly improving employee injury rates, while Prime members now enjoy 20 times more selection and faster delivery compared to the program’s launch in 2005. [Retail Wire]
Etsy Beats Quarterly Revenue Estimates on Steady Demand for Personalized Gifts. Etsy exceeded Wall Street expectations for second-quarter revenue and gross merchandise sales, driven by steady demand for personalized gifts. Marketing and advertising investments, along with occasions like Mother's Day and graduation ceremonies, boosted sales. The company reported a 4.1% year-over-year increase in gifting gross merchandise sales. [Reuters]
Is Big Lots’ Transformation Plan Enough to Save It? Big Lots faces significant challenges in a competitive retail sector, with financial struggles and operational setbacks raising concerns about its future. The company plans to close 35-40 stores this year and has reported substantial net losses and declining sales. Analysts doubt the retailer's ability to meet its credit and term loan obligations, highlighting a nearly 14% drop in net sales last year and a 10.2% decline in the first quarter of this year. [Retail Dive]
Starbucks Reports Another Disappointing Quarter as Revenue Declines. Starbucks reported a 1% drop in third-quarter revenue to $9.1 billion, falling short of the expected $9.2 billion. Despite increased spending per visit due to higher menu prices and promotions, same-store sales in North America declined by 2%, and in-store traffic dropped by 6%. CEO Laxman Narasimhan cited a "complex" consumer environment but remains optimistic about the company's long-term potential to stay the leading coffee retailer globally. [Retail Wire]
Babies R Us is back: Here’s why Kohl’s is betting on babies to drive its turnaround. Kohl's is opening Babies R Us shops within its stores across the country, planning to have 200 locations by the end of September. These shops will offer a variety of baby merchandise, such as shampoo, strollers, and car seats, expanding beyond Kohl's previous focus on baby clothing. The retailer aims to attract young families by catering to their needs and sees this expansion, along with increased offerings in home decor, gifting, and impulse items, as a significant growth opportunity worth over $2 billion in the coming years. [CNBC]
IKEA Focuses on Sleepeasy With New Pop-Up Event. IKEA U.S. is launching The IKEA Sleepeasy, an immersive pop-up event in New York from August 8-11 and August 15-18, 2024, at 51 Crosby St., SoHo. The event, which is free and open to the public, highlights sleep essentials such as air quality, light, sound, comfort, temperature, and decluttering. Modeled after a reimagined Swedish bodega, the interactive exhibition features live music, themed discos, IKEA food, and social media-friendly moments. [Retail Wire]
Adidas Confirms 2024 Outlook, Yeezy Hurts Q2 North American Sales. Adidas confirmed its full-year guidance and reported strong second-quarter results, though North American revenue fell due to leftover Yeezy stock. The brand increased its 2024 guidance and saw success with its retro-style Samba and Gazelle sneakers, benefiting from weaker sales at rival Nike.[Reuters]
Maternity Retailer Motherhood Overhauls Brand, Partners with Kohl’s. Motherhood Maternity is entering brick-and-mortar retail for the first time in five years through a partnership with Kohl’s, which is expanding its product assortment. The brand is part of Marquee's portfolio, which includes several well-known names, and was acquired from Destination Maternity during its bankruptcy. The operation of these brands has since transferred to Hatch Collective, with Marquee retaining intellectual property rights. [Retail Dive]
Despite Inflation, Pet Owners Haven’t Stopped Spending. Despite rising inflation, pet owners in the U.S. continue to maintain or even increase their spending on pets. Pet products and services have increased nearly 26% since 2019, with veterinary services up nearly 39%, both outpacing the overall inflation rate of 23% over the same period. Higher production and distribution costs along the supply chain, including ingredients and packaging, are driving these increases. [Retail Wire]
Campari Warns of Impact of Bad Weather, Agave Contracts on Margin. Campari warned that its gross margin growth could be affected by temporary challenges, despite a 2.1% organic rise in first-half adjusted operating profit. Shares dropped by up to 8%, with traders expressing concerns over margins and a cautious outlook impacting investor sentiment. [Reuters]
Saks Off 5th Chief Merchant Jumps to QVC. Mara Sirhal, former chief merchant of Saks Off 5th, has joined QVC as part of its “Age of Possibility” turnaround effort focused on women over 50. This move follows Saks Global's operational shakeup, including layoffs and the departure of Saks Fifth Avenue’s Chief Operating Officer, RJ Cilley, who left to become CEO of Voomi Supply. Saks Global is also forming a new entity encompassing Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, and Saks Off 5th. [Retail Dive]
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