Analyst Corner | January 25, 2019 Register for Free Access Weinswig’s Weekly January 25, 2019hree Ways China Will Lead Digital Retail Trends in 2019 — and Why These Trends Are Likely to Drive Consolidation Among Major Platforms China continues to lead the world in the integration of online and offline retail, most notably through Alibaba Group’s New Retail concept. We predict that retailers in the U.S. and Europe will increasingly adopt elements of New Retail in 2019. But what else is worth keeping an eye on in Chinese digital retail? This week, we discuss three digital trends we expect to see in 2019, and we note that all three are likely to strengthen the competitive advantages enjoyed by China’s market-leading apps and platforms, such as WeChat, Douyin (also known as TikTok) and Tmall. Read More
Company Earnings Update | January 24, 2019 Register for Free Access Burberry (LSE: BRBY) 3Q19 Update: Limited Edition Products Drive Excitement and SalesBurberry reported a 1.1% retail revenue decline for 3Q19 to £711 million. Comparable store sales rose 1%, driven by mid-single-digit comps in mainland China and Korea. There was very little change in price, thus the increase in comps was volume driven. A net two store closures eliminated 1% of retail selling space. Read More
Company Earnings Update | January 24, 2019 Register for Free Access Ahold Delhaize (ENXTAM: AD) 4Q18 and FY18 Update: Strong Performance Prompts Narrowing of GuidanceAhold Delhaize reported a trading update for its fourth quarter and FY18: In 4Q18, net sales were €16.5 billion, up 3.0% at constant currency, roughly in-line with the consensus of €16.48 billion by StreetAccount, but lower than the 3.6% growth recorded in the previous quarter. Net consumer online sales grew 26.4% at constant exchange rates. For FY18, net sales increased 2.5% year over year at constant exchange rates to €62.8 billion. Net consumer online sales reached €3.5 billion. Read More
Company Earnings Update | January 24, 2019 Register for Free Access Omnichannel Is Key: Takeaways from Retail’s Cutting Edge Conference at StartMeUpHK Festival 2019Dustin Jones, Managing Director of Fung Retailing Group, shared how foreign retailers can more easily enter the China market, leveraging Fung Retailing’s China expertise and supply chain capabilities — and its recent strategic partnership with Alibaba that deepens its reach and strengthens its digital capabilities. Read More
Flash Report | January 24, 2019 Register for Free Access JD.com Takes Flight in Indonesia with Drone Delivery TrialJD.com’s drone delivery is the first time a Chinese drone has been used for delivery in Southeast Asia, and is also the first time the Indonesian government has granted permission to use a drone for logistics purpose. Read More
Event Coverage | January 23, 2019 Register for Free Access AI Creates Smarter Living: Takeaways from the TechLIFEStyle Conference in Hong KongThe Coresight Research team attended TechLIFEStyle conference, part of StartmeupHK, held in Hong Kong January 22, 2019. StartmeupHK is an initiative launched by InvestHK to promote Hong Kong as a startup destination, connecting entrepreneurs and investors. The theme of the event was “living smarter, living better,” looking at how lifestyle technology can be woven into everyday life. These are some highlights of the event. Read More
Company Earnings Update | January 23, 2019 Register for Free Access Carrefour (ENXTPA: CA) 4Q18 Update: Latin America Picks Up the Slack as France Is Hit by DisruptionCarrefour reported group comparable sales excluding automotive fuel were up 1.9% year over year in 4Q18, versus 2.1% growth in 3Q18 and ahead of the consensus estimate of 1.0% recorded by StreetAccount. Performance in France was weak and growth was driven by Latin America. Total sales at actual exchange rates were down 2.3% year over year, impacted by currency effects. Read More
Insight Report | January 22, 2019 Premium Chinese New Year Preview: Year of the Pig Celebrations to be Worth ¥1 Trillion to Retail as Digital Gifting and Traveling Continue to Go BigRetail and food-service sales during Chinese New Year grew steadily from 2011 to 2018. During the 2018 Chinese New Year Golden Week (February 15-21), retail sales reached ¥926 billion (about $146 billion), 10.2 % higher than the same period in 2017 —and more than double what it was in 2011, according to Ministry of Commerce statistics. Read More
Question of the Week | January 21, 2019 Free Report Where do U.S. adults shop most often for skin care and cosmetic products?Question of the Week January 21 2019 – Where do U.S. adults shop most often for skin care and cosmetic products? Read More
Company Earnings Update | January 21, 2019 Register for Free Access VF Corp (VFC) 3Q19 Results: Raises Guidance as Active Segment Propels GainsVF Corp. reported adjusted fiscal 3Q19 EPS of $1.31, up from $1.01 in the year-ago quarter and above the $1.10 consensus estimate. Total revenues were $3.94 billion, up 8.0% year over year (10% at constant currency). Excluding Kontoor Brands (scheduled to be spun off at the end of April), revenues rose 12%. By segment, Outdoor revenues rose 11% to $1.61 billion; Active revenues increased 16% to $1.14 billion; Work segment revenues rose 9% to $62.6 million and Jeans revenues declined 27% to $67.8 million. By channel, direct-to-consumer (DTC) rose 9%, Digital (within DTC) rose 21% and Wholesale increased 6%. By region, Asia Pacific sales rose 16%, led by China, up 23%; followed by a 9% gain in the U.S., 7% in the Americas (non-U.S.) and 4% in EMEA. Read More
Insight Report | January 21, 2019 Premium UK Holiday 2018 Retail Sales and Trading Wrap-Up: December Growth Slows as Uncertainty Accelerates Structural Shift Away from the MidmarketMomentum in the retail sector decelerated meaningfully in December, as measured by both value and volume (real terms). Value sales growth slowed from 4.2% in November to 2.1% in December. This was despite a number of retailers reporting a better month in December following an unusually tough November. Across November and December in aggregative (our definition of the holiday period), sales were up 3.0% year over year. Read More
Deep Dive | January 18, 2019 Premium US Digital Payments Take Off, with Unexpected Winners and LosersThe digital payments landscape is evolving rapidly as consumers and merchants adopt more innovative modes of payments. Cash is declining worldwide, while credit and debit cards have gained popularity. Mobile payment and wallet services are also gaining traction, supported by growing smartphone use, faster data rates and greater Internet penetration. Read More
Deep Dive | January 18, 2019 Premium Aldi and Lidl in the US: Aldi Climbs the Grocery RankingsAldi is America’s eighth-biggest grocery retailer by estimated 2018 revenues, according to Euromonitor International. It has grown revenues by an estimated CAGR of 12.7% over the past five years. After a shaky start in the U.S. market, Lidl has diversified into a range of store formats. Lidl is continuing to open stores at a steady pace, and its recent acquisition of the 27-strong Best Market Chain suggests a renewed impetus to grow its footprint in the U.S. Read More
Event Coverage | January 18, 2019 Register for Free Access Luxury FirstLook 2019—Digital Acceleration: Key TakeawaysCoresight Research attended Luxury Daily’s Luxury FirstLook 2019: Digital Acceleration conference in New York. The event was packed with senior executives from luxury brands, retailers, agencies, publishers and service providers. We were there to discuss digital acceleration, but most in the room agreed luxury companies are still in the early stages of adopting cutting-edge technology tools – not keeping up with their more digitally savvy clientele. Read More
