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🛍️How retailers are seeking to improve self-checkout
Integrating loyalty programs
Hello, Retailist community! 🌟 As we head into the weekend, there's a buzz of anticipation in the e-commerce, retail, and Direct-to-Consumer (DTC) sectors. This past week has been brimming with news, emerging trends, and exciting innovations in our industry. With an abundance of information at our disposal, are you ready to delve into the most captivating stories that have come to light? Let’s explore these developments and uncover their implications for us!
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While shifting consumer behavior serves as a significant driver, it is not the sole contributor. The rise in ORC and shoplifting exacerbates returns fraud, with stolen merchandise often finding its way back into retailers' returns systems.
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In the news: Top headlines this week
How to take over the fashion world, according to the women who made J.Crew cool again. Libby Wadle and Olympia Gayot have been credited with revitalizing J.Crew since they became CEO and creative director of women's and kids' design, respectively, in 2020. Their efforts have successfully introduced the brand to a new generation, making significant changes that have renewed its appeal. At the annual Parsons Benefit, Business Insider asked Wadle and Gayot for advice on how young fashion creatives can succeed, highlighting their expertise in transforming and modernizing a legacy label. [Business Insider]
Germany backs ending EU tax break that helps Shein and Temu keep prices low. Germany supports a change to European Union import tax laws that would eliminate an exemption for cheap parcels, a move targeting online retailers like Shein and Temu. This exemption has allowed these companies to sell low-priced items made in China, helping them gain market share. Critics in the United States have similarly argued that this tax loophole allows Shein and Temu to undercut competitors and avoid customs inspections. [Reuters]
Macy’s beats earnings estimates, as turnaround plan shows early progress. Macy’s exceeded Wall Street's earnings expectations for the fiscal first quarter, showing early progress in its turnaround strategy. The retailer's revenue was in line with expectations, prompting it to raise its full-year earnings forecast while maintaining a cautious sales outlook due to ongoing consumer pressure. CFO and COO Adrian Mitchell noted the company expects improvements as it advances its strategy both online and in stores. Following the announcement, Macy’s shares rose approximately 5%. [CNBC]
Target comparable sales have dropped for 4 straight quarters, and it's scrambling to avoid a 5th. Target has experienced a decline in comparable sales for four consecutive quarters, with a 3.7% drop last quarter despite generating $24.5 billion in revenue. While e-commerce orders grew by 1.4%, this increase was insufficient to offset a 4.8% decrease in in-store sales. Comparable sales, which exclude new and closed stores and reflect results from locations open for at least 13 months, are a key metric for assessing the company's underlying health. [Business Insider]
Elf Beauty projects annual sales, profit below estimates despite upbeat Q4. Elf Beauty projected annual sales and profit below Wall Street expectations, citing the impact of persistent inflation on consumers' ability to spend on non-essential items like cosmetics and skincare. Despite this, the California-based company exceeded estimates for fourth-quarter revenue and profit. This indicates that while Elf Beauty has benefited from post-pandemic demand, high food prices and interest rates are leading consumers to prioritize essential goods over discretionary purchases. [Reuters]
How Macy’s, Kohl’s and Nordstrom are chasing Millennial, Gen Z shoppers. Department stores like Macy’s, Kohl’s, and Nordstrom are striving to attract Millennial and Gen Z shoppers as their traditional customer base ages and sales slow. These retailers are facing competition from social media-driven trends, specialty retailers, big-box stores, and online platforms, leading to an existential crisis. To stay relevant, Nordstrom has considered going private, and activist investors have attempted to take over Macy’s and Kohl’s. Retail analyst Oliver Chen emphasized the urgency of appealing to younger consumers, noting that these department stores need to cater to both younger and older customers to regain lost ground. [CNBC]
Under Armour Looks To Do More With Less. Under Armour's founder and CEO Kevin Plank, in his first quarterly earnings call since returning, outlined a new "Protect This House" strategy aimed at streamlining the company's operations. This strategy involves reducing the range of product offerings, simplifying the go-to-market processes, significantly cutting back on discounting, and making more impactful product launches. The focus is on three main areas: increasing product demand and customer loyalty, optimizing and modernizing operations, and enhancing consumer experiences. [Retail Wire]
How retailers are seeking to improve self-checkout. Retailers are working to improve self-checkout systems by addressing several issues identified in initial implementations. Companies like Mashgin and Invenco have learned from past mistakes, such as Mashgin's early strategy of deploying kiosks that couldn't accept payments like cash, loyalty cards, and coupons, which limited customer adoption. To enhance the self-checkout experience, retailers are focusing on making these systems more versatile and user-friendly. This involves ensuring that kiosks can handle various payment methods and integrating loyalty programs to meet customer expectations and improve satisfaction. [Payments Dive]
Lululemon restructures product, marketing teams as Chief Product Officer Sun Choe exits. Lululemon is restructuring its product and marketing teams following the departure of Chief Product Officer Sun Choe, who joined in 2016 and became CPO in 2018. Choe's tenure saw a significant fourfold increase in revenues, reflecting a compound annual growth rate in the low 20s. Despite her departure, Lululemon plans to expand the roles of the chief brand officer and global creative director rather than replacing Choe. The company's shares dropped approximately 3% on the news, underscoring Choe's respected influence on the brand's success. [Retail Dive]
Red Lobster superfans desperately want a piece of the bankrupt chain. Red Lobster superfans are eager to obtain sentimental items from the chain as it faces bankruptcy and store closures. Many sought to purchase their favorite tables before dozens of locations were shut down. By May 15, at least 99 stores in 27 states had closed, and on Monday, the company filed for Chapter 11 bankruptcy. One contributing factor to the financial troubles was the costly endless-shrimp promotion. [Business Insider]
What Will It Take To Reverse Starbucks’ Decline? Starbucks experienced a disappointing quarter with declining same-store sales in both the U.S. and China, resulting in a 2% drop in global revenue and marking its first quarterly sales decline since 2020. CEO Laxman Narasimhan attributed the poor performance to increased competition and cautious consumer behavior. In response, Narasimhan has proposed various solutions to address the company's issues, aiming to revitalize sales and improve overall performance. [Retail Wire]
Off-price retailer TJX lifts annual profit forecast on strong demand, lower costs. TJX Companies, the parent company of TJ Maxx, raised its annual profit forecast following strong first-quarter results driven by robust demand and lower costs. Cooling inflation and competitive pricing compared to department stores have boosted sales, including discretionary items. The company's "treasure hunt" strategy continues to attract customers, and lower freight costs along with improved inventory management have strengthened margins, increasing to 30%, up by 1.1 percentage points from the previous year. Additionally, TJX is benefiting as affluent shoppers opt for cheaper retailers, seeking designer goods at affordable prices. [Reuters]
Pier 1, Stein Mart ownership changes hands. The backers of Retail Ecommerce Ventures (REV) have acquired the intellectual property portfolios of Pier 1 and Stein Mart, averting bankruptcy and planning expansion. Despite previous financial struggles and rumors of bankruptcy, REV is now seeking new acquisitions and is in discussions with other retail brands, mostly digital-only. REV's strategy involves acquiring distressed retail brands and transitioning them to online operations, as seen with their current portfolio which will soon reflect these recent changes. [Retail Dive]
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