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Target’s 4-Word Core Strategy Aims To Win Over Customers From Walmart
🎉 Hello, Retailist Roundup readers! As we approach the long weekend with Labor Day coming up Monday, let's dive into this week's exciting developments in retail and e-commerce. Our roundup is packed with crucial updates, emerging trends, and innovative changes that are shaping the future of our industry. Get ready to explore the top stories!
New from Retailist
AI Revolution: 63% of Brands See Impact as Consumers Turn to AI for Smarter Shopping
40% of consumers now use AI regularly to help with their online shopping, with close to one in five using it as their primary source of information. This is a remarkable change in consumer behavior and one that requires a rapid response from marketing teams.
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In the news: Top headlines this week
Walmart Marketplace expands into premium beauty, collectibles and pre-owned categories. Walmart Marketplace is expanding into premium beauty, collectibles, and pre-owned categories as it aims to capture a share of the growing secondhand market and attract collectibles shoppers. This move comes as Walmart's online Marketplace has experienced over 30% sales growth in the past year, and the secondhand goods market is projected to reach $73 billion by 2028. Walmart faces competition from established players like eBay, where a significant portion of consumers has already embraced purchasing pre-owned items. [Retail Dive]
Corkcicle Launches Limited-Edition Collaboration With KFC. Corkcicle has launched a limited-edition collaboration with KFC, featuring a unique collection that blends Corkcicle's innovative drinkware designs with KFC's iconic branding. The collection, which includes drinkware and a specially designed ice or hot chicken bucket, is available exclusively on corkcicle.com while supplies last. Corkcicle's co-founder, Stephen Bruner, highlighted the excitement of merging their designs with KFC's brand to create something distinctive. [Retail Wire]
Gap's turnaround efforts drive quarterly results beat in surprise early announcement. Gap's second-quarter results surpassed Wall Street expectations, driven by strong sales at Old Navy and its namesake brand as shoppers sought trendy clothing. The company accidentally posted its earnings early, leading to a brief halt in its stock before shares rose 3%. Under CEO Richard Dickson, Gap is focusing on brand reinvigoration, updating stores with fresher, more stylish offerings to win back customers. [Reuters]
Foot Locker to exit several international markets, move headquarters to Florida. Foot Locker plans to exit markets in South Korea, Denmark, Norway, and Sweden by mid-2025 as part of cost-cutting and business simplification efforts. The retailer is also moving its headquarters from New York City to St. Petersburg, Florida, while maintaining a presence in New York and retaining its current workforce. Despite these changes, Foot Locker will continue to focus on expansion in Southeast Europe through its partnership with Fourlis Group, with plans to open 100 stores in the region. [Retail Dive]
Dolly Parton Debuts Cosmetics Line ‘Dolly Beauty’. Dolly Parton has launched her first cosmetics line, Dolly Beauty, combining her iconic status in music with her renowned sense of beauty. The line reflects Parton's desire to look and feel glamorous both inside and out, fulfilling her long-held dream of creating makeup that aligns with her personal vision of inner and outer beauty. [Retail Wire]
American Eagle saw profits grow nearly 60% as costs come down. American Eagle's profits surged nearly 60% in the fiscal second quarter, driven by reduced product costs, although the company missed Wall Street’s sales targets for the second consecutive quarter. Revenue reached $1.29 billion, slightly below the expected $1.31 billion, while net income rose to $77.3 million from $48.6 million a year ago. Despite this profit growth, the company's shares dropped approximately 3% in early trading. [CNBC]
Lady Gaga’s Haus Labs beauty line launches in Sephora at Kohl’s. Lady Gaga's Haus Labs beauty line is launching in Sephora at Kohl's, as Kohl's continues to invest in its Sephora partnership to attract more customers amidst declining sales. The Sephora shop-in-shops have proven successful, bringing in over $1.4 billion in sales last year, with expectations to exceed $2 billion by 2025. This expansion allows Haus Labs to reach new beauty consumers across America, marking another milestone for the brand. [Retail Dive]
Nordstrom shares climb 5% as earnings top estimates, but retailer issues cautious guidance. Nordstrom's shares rose 5% after the retailer reported earnings significantly above Wall Street expectations, driven by cost-cutting and improved efficiency. Despite this positive performance, the company issued cautious full-year guidance, expecting adjusted earnings per share to be between $1.75 and $2.05 and projecting sales growth of up to 1% or a potential decline. CEO Erik Nordstrom remains optimistic about the company's progress and outlook for the rest of the year. [CNBC]
With new leaders and a new plan will Beyond’s ‘gallery of brands’ succeed? After filing for Chapter 11 bankruptcy in April 2023 due to financial struggles and missteps, Bed Bath & Beyond is now aiming for a revival by leveraging its strong brand recognition. The company plans to create a "gallery of brands" featuring a range of retail offerings from luxury to off-price. This new strategy comes after past decisions, like a private label focus and supply chain issues during the pandemic, led to consumer alienation and contributed to its downfall. [Retail Dive]
Spirit Halloween Sets Record With 1,525 Locations for 2024 Season. Spirit Halloween is expanding its reach in 2024 with a record-breaking 1,525 locations across North America, responding to increased consumer demand for Halloween products. This year, the retailer will feature a carnival theme alongside its classic "Spirit Hallows" design, offering a mix of traditional spooky elements and new experiences. [Retail Wire]
Chipotle names company veteran Adam Rymer as finance chief. Chipotle has appointed company veteran Adam Rymer as its Chief Financial Officer, effective October 1. Rymer, who has been with Chipotle for 15 years and previously served as Vice President of Finance, will report to interim CEO Scott Boatwright. Meanwhile, former CFO Jack Hartung will transition to the role of President and Chief Strategy Officer to support Boatwright. [Reuters]
Nearly 40% of consumers return an online purchase ‘at least’ once a month. Nearly 40% of consumers return an online purchase at least once a month, with 87% of shoppers making at least half of their purchases online, according to a Narvar report. Despite the high volume of returns, totaling $743 billion last year, 60% of consumers are willing to accept exchanges or store credit instead of full refunds if the returns process is quick and easy. This highlights the potential for retailers to enhance customer loyalty by optimizing their returns experience. [Retail Dive]
Michaels and Dallas Cowboys Become Official Partners. Michaels has partnered with the Dallas Cowboys in a three-year deal, becoming the team's Official Partner. This collaboration will enhance the game-day experience by offering Cowboys-themed decorations, party supplies, and custom framing options. Michaels will also engage fans through DIY craft projects and special promotions to boost team spirit. [Retail Wire]
Target’s 4-Word Core Strategy Aims To Win Over Customers From Walmart. Target's core strategy, summarized in the four words "expect more, pay less," aims to attract customers from Walmart by offering high value at lower prices. CEO Brian Cornell highlighted the company's commitment to this approach by reducing prices on 5,000 items, reinforcing Target's focus on delivering everyday value in a highly competitive retail environment. [Retail Wire]
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