Flash Report | February 4, 2019 Register for Free Access Americans Fall Out of Love with Valentine’s Day — But Those Celebrating Are Set to Spend More than EverValentine’s Day in 2019 is expected to be very different than it was a decade ago, according to an annual survey released by the NRF and Prosper Insights & Analytics. The percentage of people expecting to celebrate the day has dropped to 50.7% in 2019 from 54.7% last year and 62.8% in 2009, making likely 2019 participation the lowest in a decade. Read More
Insight Report | February 1, 2019 Premium Revised Foreign Direct Investment Policy to Rejig the E-Commerce Playing Field in IndiaOn December 26, 2018, the Indian government unexpectedly announced a revised FDI policy for e-commerce. Since 2010, when it first allowed 100% foreign investment in business-to-business e-commerce, international firms such as Amazon set up intricate joint-venture and holding company structures to cleverly navigate the Indian e-commerce landscape. Read More
Market Navigators/Market Outlook | February 1, 2019 Premium Sector Overview: US Apparel Specialty Retailers — Collaborations Are the New NormalIn 2018, U.S. apparel and footwear specialty retailers’ sales totaled $197 billion, according to Euromonitor International, and its analysts forecast sector sales will grow at a CAGR of 3.3% to 2023, reaching $232 billion. Relative to the recent past, 2018’s results were strong. Sportswear and athleisure are driving specialty apparel and footwear sales. We see areas of opportunity in the lingerie and plus-size categories. We expect specialty retailers to continue exploring collaborations, partnerships and global expansion – particularly into China and India. Read More
Event Coverage | February 1, 2019 Register for Free Access World Bank Sees Slowing Productivity and Social Inclusion As Key Challenges for High-Growth East Asia CountriesThe success of these economies has been built on the “East Asian Development Model,” which the World Bank says includes policies and initiatives to promote export-oriented manufacturing, supported by education designed to support economic growth. However, developing East Asia still has some gaps to fill. China’s per capita GDP is only one-fifth the average for high-income economies, followed by Vietnam at just 5% and Cambodia at 3%, according to the World Bank report. When South Korea achieved high-income status in 2000, its labor productivity was 2.5 times higher and its human capital was one-third higher than China’s was in 2018. Read More
Event Coverage | February 1, 2019 Register for Free Access Insights from the 2019 WeChat Pro Conference: Boosting Mini Apps and Personalizing Red EnvelopesEveryone gives away money in small red envelopes called hong bao at the Chinese New Year, and WeChat is launching new features to help users personalize this feature. Traditionally, hong bao are delivered in person, handed directly to the recipient, but in recent years this has gone digital: WeChat says about ¥3 billion was sent by WeChat in 2015 — but that figure climbed to ¥46 billion in just two years. Read More
Analyst Corner | February 1, 2019 Register for Free Access WEINSWIG’S WEEKLY FEBRUARY 1, 2019Robots: Moving Beyond Warehouses into the Stores and the Streets Robots burst into the consciousness of the retail industry when Amazon acquired warehouse-robot-maker Kiva Systems for $775 million in May 2012. Since then, many other retail companies have followed Amazon’s example and deployed robots in their own warehouses. These robots are not the kind that walk and talk; they’re flat, faceless machines that scoot across a warehouse floor, delivering a shelf of goods to a fulfillment center, where a human packer then completes the order. While many imagine that warehouses and fulfillment centers are already completely automated, most operate using human-machine teams, which are likely the most efficient and cost-effective solution. Read More
Store Tracker | February 1, 2019 Databank Members Weekly Store Openings and Closures Tracker 2019, Week 5: Things Remembered on Verge of Bankruptcy, Williams-Sonoma May Close 80 StoresYear to date in 2019, U.S. retailers have announced 1,678 store closures and 1,399 store openings. Read More
Company Earnings Update | February 1, 2019 Register for Free Access Alibaba (NYSE: BABA) 3Q19 Results: Solid Growth Driven by Core Commerce and Cloud SegmentsManagement noted uncertainty around China’s economy but believes that new initiatives in cloud services and entertainment as well as global expansion will help offset the impact of China’s slowing economic growth. Southeast Asia remains one of the key areas of focus for the near term. Read More
Company Earnings Update | February 1, 2019 Register for Free Access Tractor Supply Company (NASDAQ: TSCO) 4Q18 Results: Beats Consensus Estimates, Guidance in Line with ConsensusTractor Supply reported Q4 revenues of $2.13 billion, up 9.2% year over year and above the $2.10 billion consensus estimate. Comps were 5.7%, beating the 3.7% consensus estimate and comprising a 3.0% increase in average ticket and a 2.6% increase in transaction count. All geographic regions and all major product categories had positive comps. Continued strength in everyday merchandise in the consumable, usable and edible categories helped drive comps, in addition to strong sales of winter and other seasonal products. Read More
Company Earnings Update | February 1, 2019 Register for Free Access H&M (STO: HM-B) FY18 Results: Logistics Upgrade Proves a Drag on ProfitsFor 1Q19, the company expects markdowns to be around 1 percentage point lower compared to the year-ago period and expects to see continued improvement in inventory, led by strong collections and increased full-price sales. Net sales for the period December 1, 2018 to January 28, 2019, increased 4% year over year in local currencies. In FY19, the company plans to open around 335 new stores, of which around 240 will be H&M stores. H&M plans to close 160 stores. The company will open new logistics centers outside Madrid and north of London at the end of 2019 or beginning of 2020. Read More
Company Earnings Update | February 1, 2019 Register for Free Access LVMH (ENXTPA: MC) FY18 Results: Fashion and Leather Goods Set the PaceLVMH full-year sales rose 9.8% to €46.8 billion. Currency exchange rates adversely impacted full year sales results by (400) bps. Online sales rose approximately 27-28%, to €3.7 billion and now represent 8% of consolidated 2018 revenues. Fashion and leather goods set the sales pace, achieving 15% organic growth in 2018. The Louis Vuitton brand has surpassed €10 billion annually and the fashion and leather goods segment now represents 39% of consolidated 2018 revenues, up from 36% in 2017. Read More
Insight Report | January 31, 2019 Premium US Holiday Comparable Sales Update: Department Stores See a Slowing Trend While a Number of Specialty Retailers ShineTwo big-box retailers, Costco and Target, posted strong numbers in the holiday season. Costco reported total same-store sales growth of 6.1% for December, which was below the 9.2% growth posted in November, but ahead of the consensus estimate of 4.8%. Costco grew its e-commerce sales by 13.6%. Target Corporation reported that comparable sales in the combined November and December period grew 5.7%, compared to 5.1% growth in the third quarter of fiscal 2018. Results were driven by positive store comps and comparable digital sales growth of 29%. Target expects that fiscal 2018 will be the fifth consecutive year in which its digital sales will grow more than 25%. Target gave guidance for fourth-quarter comparable sales growth of approximately 5%. Read More
Company Earnings Update | January 31, 2019 Register for Free Access eBay (NASDAQ: EBAY) 4Q18 and FY18 Results: Steady Growth, More Returns for ShareholderseBay reported revenues of $2.88 billion in 4Q18, up 6.3% year over year and beating the consensus estimate of $2.86 billion recorded by Bloomberg. GMV was $24.6 billion, up 1% as reported and 2% on a currency-neutral basis. Gross margin increased 31 basis points to 78.5% and operating margin decreased 82 basis points to 23.7%. Non-GAAP diluted EPS increased 20.3% to $0.71, beating consensus of $0.68. Read More
Market Navigators/Market Outlook | January 31, 2019 Premium Sector Overview: North American Food Retailers — Cross-Channel Retailing Is Emerging as the Dominant ModelEach Sector Overview report provides an analysis of a particular retail sector or consumer market. This report covers the North American grocery sector, concentrating on the US. Our coverage focuses on supermarket retailers with some discussion of other grocery channels. Mass merchandisers, warehouse clubs and discount stores are covered in a separate Sector Overview report. Read More
Flash Report | January 30, 2019 Register for Free Access Walgreens Boots Alliance Bags Over 60 Shopko Stores After Bankruptcy Court Approves BidsGeneral merchandise retailer Shopko filed for Chapter 11 bankruptcy protection on January 16, 2019. The company attributed its petition for financial restructuring to “excess debt and ongoing competitive pressures.” The retailer stated it would close an additional 38 stores this year, in addition to the 67 previously earmarked for closure, relocate 20 optical centers to freestanding locations and auction off its pharmacy business. Read More
