Flash Report | January 14, 2019 Register for Free Access Alibaba Strengthens Its Presence in Digitalization Consulting with A100 Partnership ProgramAlibaba has grown from simple online marketplace to a digital commerce powerhouse, with operations in sales, marketing, product delivery, supply chain, logistics and data analytics — pretty much the whole nine yards. At an event in Hangzhou, the company announced the launch of a new collaborative program called A100. Read More
Deep Dive | January 12, 2019 Premium Understanding WeChat, China’s Super App: Part 2 — How WeChat Mini Programs Spell Opportunity for Brands and RetailersWeChat dominates the social media scene in China — so much so that even large companies are leveraging its reach over using their own apps, and even buying add space in WeChat games. To tap into this opportunity, WeChat has been developing “mini programs” that operate within WeChat but function as a separate company app would, allowing users to order, pay for, pick up or have goods delivered. What’s the opportunity? Read More
Event Coverage | January 11, 2019 Register for Free Access CES 2019 Wrap-Up: Five Cool Things You Need to KnowAt the show, we saw various applications of AI voice technology, which has expanded beyond AI appliances such as the Amazon Echo, Samsung’s Bixby, Apple’s HomePod, the Google Home and many others. Voice control has moved into the realm of home appliances, such as Amazon’s voice-controlled microwave oven, and the voice-controlled TVs and home appliances demonstrated by LG and Samsung. Voice recognition has also entered automobiles — Ford demonstrated operability with Alexa at CES two years ago, Alibaba showed interoperability with Volvo and BMW, and this week, Amazon started taking orders for Echo Auto. Read More
Company Earnings Update | January 11, 2019 Register for Free Access Tesco (LSE: TSCO) 3Q19 and Christmas Update: Strongest U.K. Christmas Growth for a DecadeTesco, the U.K.’s biggest grocery retailer, reported results for 3Q19 (ended November 24, 2018), and the subsequent six-week Christmas period (ended January 5). For the core six-week Christmas period, Tesco grew comparable sales in its U.K. operations by 2.2%, above the consensus estimate of 1.4% from StreetAccount. The company said it outperformed the market in volume and value terms and versus the market “in all key categories: food, clothing and general merchandise.” Read More
Company Earnings Update | January 11, 2019 Register for Free Access Seven & i (TSE: 3382) 9M19 Results: Struggling at Home, Silver Lining in Overseas Convenience StoresJapan-based retailer Seven & i reported net sales of ¥4,110.6 billion for the nine months ended November 30, 2018, up 15.8% year over year. Operating income came in at ¥304.3 billion, up 2.9% year over year. Gross margin on net sales decreased by 200 basis points to 19.6% and operating margin fell by 60 basis points to 6.0%. Diluted EPS was ¥176.53, up 4.7% year over year. Below, we outline the performance of convenience store operations, superstore Ito-Yokado, food supermarket York-Benimaru and department store Sogo & Seibu. Read More
Company Earnings Update | January 11, 2019 Register for Free Access Marks & Spencer (LSE: MKS) 3Q19 Update: A Weak Quarter for Food and Clothing AlikeOn the management call, CEO Steve Rowe noted that the third quarter was “challenging.” He said that “market conditions were tough, particularly in November when footfall and online visits both dropped significantly,” he said. Rowe said the sales growth was in line with the company’s expectations and was “steady” in the first half. The company reduced inventory volumes, resulting in 25% less stock going into the December sale. Rowe pointed to an increase in sales of entry-level clothing products, saying “customers are looking for value, and we’re providing that.” The company lowered prices on 227 food products and stripped out “complex and confusing” promotions. Read More
Company Earnings Update | January 11, 2019 Register for Free Access B&M (LSE: BME) 3Q19 Trading Update: UK Growth Is Hit by a Tough NovemberB&M U.K reported a 1.6% decline in comparable sales, below the 0.9% growth in first half and missing the Street Account consensus of a 0.2% decline. After what the company called a “difficult November,” December B&M U.K. comps strengthened to 1.2%, while U.K. same-store cash gross margin was down in November but bounced back in December. Group sales grew 12.1% year over year to £1.09 billion, slightly above the consensus of £1.08 billion, while total U.K. sales grew 4.5% year over year to £874.5 million. B&M’s Jawoll chain in Germany grew revenues 5.5% at constant currency, while its Heron Foods chain in the U.K. grew revenues 12.6%. Read More
Analyst Corner | January 11, 2019 Register for Free Access WEINSWIG’S WEEKLY JANUARY 11, 2019Retailers in the U.S. may have enjoyed a bumper holiday season, but their counterparts elsewhere in the world have been experiencing greater uncertainty. In China, the pace of economic growth has slowed, while in Germany, shoppers have shown renewed caution. Meanwhile, in the U.K., details on Brexit remain unclear, even though the exit date is now less than three months away – raising the real possibility of a deal-less Brexit. Across the U.S., Europe and Asia, macroeconomic and political uncertainty threatens to persist for at least the first few months of 2019. In this week’s note, we look at four inflection points we expect could significantly impact the economy and consumer sentiment in various countries. Read More
Store Tracker | January 10, 2019 Premium Reviewing 2018 U.S. and U.K. Store ClosuresIn the U.S., major retailers closed 5,524 stores and opened 3,083 stores during 2018. By sector, apparel specialist stores led the pack with 766 closures; Payless ShoeSource contributed 408 of these closures. Read More
Event Coverage | January 10, 2019 Register for Free Access CES 2019 Day 4: Five Cool Things You Need to KnowAMD is currently giving Intel serious competition in the microprocessor wars, and announced several new processors — for desktops, servers, mobile and graphics — and AMD says this increased computing power will be needed to solve society’s challenges in education, healthcare, climate change and energy. Read More
Event Coverage | January 10, 2019 Register for Free Access CES 2019 Day 4 Takeaways: Innovative Technology Startups At CESThe Coresight Research team is in Las Vegas this week for CES 2019 (formerly, the Consumer Electronics Show). This year’s event features over 4,400 exhibiting companies, including standout startups alongside established companies. Read More
Company Earnings Update | January 10, 2019 Register for Free Access Sainsbury’s (LSE: SBRY) 3Q19 Trading Update: Lower Holiday Promotions Weigh on Top LineDespite the declines, CEO Mike Coupe believes grocery was “solid,” general merchandise outperformed the market and that clothing “performed well” in the quarter. General merchandise sales grew “strongly” over the “key Christmas weeks” (unspecified) and outperformed the market over the quarter — but sales declined in the quarter due to cautious spending by consumers and the company’s decision to reduce promotional activity around Black Friday. Read More
Event Coverage | January 9, 2019 Register for Free Access CES 2019 Day 3 Takeaways: Five Innovative Technology Startups at CESThe Coresight Research team is in Las Vegas this week for CES 2019 (formerly, the Consumer Electronics Show). This year’s event features over 4,400 exhibiting companies, including standout startups alongside established companies. Read More
Company Earnings Update | January 9, 2019 Register for Free Access Morrisons (LSE: MRW) Holiday Trading Update: Wholesale Drives Growth; Retail Sales Impacted by Uncertainty£700 million of annualized wholesale supply sales expected ahead of initial end-2018 guidance. £1billion of annualized wholesale sales expected “in due course.” Further £4 million of incremental profit from wholesale, services, interest and online. In the second half, management expects lower costs of both Morrisons.com expansion and accelerated wholesale supply. Net debt will remain at a low level, consistent with the company’s capital discipline and the principles of capital allocation. Read More
Event Coverage | January 9, 2019 Register for Free Access The 4th New Economy Think Tank Summit: Three Things You Need to KnowThe Coresight Research team was in the room when some of China’s most innovative, tech-focused retailers came together for the fourth New Economy Think Tank Summit by AliResearch, the research arm of Alibaba. The Speakers included Min Wanli, Chief Machine Intelligent Scientist, Alibaba; Chen Weiru, Executive Director of Alibaba Industrial Internet Center; Liu Song, Vice President, Alibaba Group; Gao Hongbing, Vice President, Alibaba Group, Director of AliResearch; Steven Zhang, Vice President of Alibaba DingTalk; Ma Mingjie, Director General of Research Department of Innovation, The State Council Development Research Center; and, Michael Irwin Jordan, Professor at the University of California, Berkeley and Chair of Ant Financial Scientific Advisory Board. Read More
