Event CoverageICSC Research Connections: Experiences, Services, Fun and Commerce Too! Coresight Research December 2, 2019 Executive SummaryThe Coresight Research team attended and presented at ICSC’s Research Connections conference, held on October 27–29 in Miami Beach, Florida. We detail key insights from the three-day conference: By 2030, more services are expected to be offered in shopping centers, and there will be heightened consumer expectations for goods/products with experiences. New metrics will emerge to value retail real estate that holistically incorporates all that occurs in the store. An omnichannel retail strategy creates incremental spending across multiple commerce touchpoints according to an ICSC study, Halo Effect II. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Question of the WeekWhat Are the Key Purchase Drivers for Ulta and Sephora Shoppers? Coresight Research December 2, 2019 QUESTION OF THE WEEK: What Are the Key Purchase Drivers for Ulta and Sephora Shoppers? Customers of major beauty retailers Sephora and Ulta Beauty value trust the most when selecting a beauty brand; according to a survey by Prosper Insights & Analytics in July 2019, about 66% of Ulta and Sephora shoppers said they would select a beauty product based on trust. Effectiveness of products ranked as the second-most important criterion for both sets of shoppers. This document was generated for
Analyst CornerWeinswig’s Weekly—December 1, 2019 Coresight Research December 1, 2019 Executive SummaryDecember 1, 2019 This week’s note “From the Desk of Deborah Weinswig” looks at how Amazon’s deal with Pinduoduo positions the online retailer to tap into China’s fast-growing markets in smaller cities. In the news this week: Nicole Crafts announced it will close its entire fleet of more than 145 A.C. Moore stores. Michael’s will acquire nearly 40 A.C. Moore locations and a distribution facility. American Eagle will close all its American Eagle and Aerie stores in Japan by the end of December, along with its online store in Japan. Brazilian cosmetics company Natura will make half of its catalog suitable for refilling within the next five years as part of its sustainability initiative. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Insight ReportHoliday 2019: US Black Friday Insights Coresight Research November 30, 2019 Executive SummaryOn November 29, the Coresight Research team undertook its annual tour of stores for Black Friday. We visited 65 stores of 32 different retailers in the US. We had shoppers in New York, New Jersey, Hawaii and Illinois, at outlets, luxury malls, downtown locations, neighborhood centers and regional malls. In this report, we analyze each store according our proprietary BEST framework for physical retail. Store activity varied greatly: There were long lines at American Eagle Outfitters, Bed Bath and Beyond, the Nike Outlet, Old Navy and Target; but there were no wait times at Costco and drugstores. Ann Taylor, Bed Bath & Beyond, Bloomingdale’s, Ulta Beauty and Walmart were the top five retailers this Black Friday, ranked according to Coresight Research’s BEST framework. Of the 32 retailers visited, 25 offered promotions, with discounts averaging 37–47%. Although technology does not typically play a major role in Black Friday, stores this year offered automated displays, cell phone chargers, digital payment options, self-checkout and “Buy Online, Pick Up in Store” kiosks. Shoppers seemed motivated by Black Friday deals this year. Home and consumer electronics products were strong, indicating that consumers continue to invest in their homes. Accessories and clothing were top sellers too. Methodology Coresight Research’s proprietary BEST framework is designed to help retailers strategize physical retail around four themes (see Figure 1): Brand Building, Experiences, Service and Technology Integration. To better compete with online alternatives, physical stores need to evolve from offering purely transactional commerce to emphasizing destination retail. According to the BEST framework, brick-and-mortar stores should enhance the retailer’s brand; provide experiences that deepen the consumer’s relationship with the retailer and create a reason for a return visit; provide relevant and brand-appropriate services; and have in-store technology that allows for seamless shopping. Source: Coresight Research On Black Friday, the Coresight Research team evaluated stores using the four BEST criteria, giving each retailer one red star (for one point), a half red star (for a half point) or a black star (for zero points). We summarize the results in the following table. Source: Coresight Research Analysis of Stores Visited by BEST Criteria We discuss the top performing retailers across the four criteria of the BEST framework and include photographs from multiple different stores to showcase retailers’ Black Friday activities. Brand Building We assessed stores against four subcategories of brand building: Brand storytelling Incentivizing coupons or special deals to encourage a repeat visit Superior customer service Co-branding/relevant partnerships Each retailer earned a star, a half star or no star for how they satisfied the subcategories, equating to a score of 1, 0.5 or 0, respectively. With a total average score of 0.9, the strongest performer in the category of brand building was clothing retailer Express. Making up the rest of the top five were Bed Bath & Beyond, Bloomingdale’s, Nordstrom and Ralph Lauren, all of which received a score of 0.8. Express demonstrated strong brand storytelling. It offers trendy clothing for young women and men, from business formal to party clothes. Express also launched a brand ambassador program, which increased its presence on social media. The retailer always has clothes on sale, but it does not encourage repeat visit very strongly because it does not provide gift cards or coupons for next visit. Customer service was good on Black Friday—assistants were warm and helped customers find their size and style. Express has a partnership with the NBA, through which an NBA-licensed collection has been released. Express store displaySource: Coresight Research Marshalls’ store displaySource: Coresight Research Experiences We assessed the stores against four subcategories of experiences: Seasonal In-Store Experiences—for example, Santas, DJs and product trials/demos Seasonal Decorations Hospitality—for example, champagne and hot cocoa Gamification, doorbusters or hourly specials With a total average score of 0.9, the strongest performer in the category of experiences was department store Bloomingdale’s. Making up the rest of the top five were Abercrombie & Fitch, Bed Bath & Beyond, Lowe’s and Ulta Beauty, all of which received a score of 0.8. Bloomingdale’s offered lots of sales, with holiday and space travel themes. Bed Bath & Beyond offered amazing doorbusters from 5:00 p.m. until midnight on Thanksgiving and from 6:00 a.m. until noon on Black Friday. Appliances won hands down. The store experience across retailers on Black Friday was truly unbelievable, with great deals and service. Bloomingdale’s store displaySource: Coresight Research Macy’s DJSource: Coresight Research Service We assessed the stores against four subcategories of service: In-store customer service—for example greetings, directions and help in finding products Buy online, pick up in store (BOPIS) Buy in Store and Ship from Store Sustainability, or recycle/resale/recommence focus With a total average score of 1, the strongest performer in the category of service was women’s clothing retailer Ann Taylor, followed by Express with a score of 0.9. Making up the rest of the top five were Bed Bath & Beyond, Bloomingdale’s and Walmart, all of which received a score of 0.8. The staff at Ann Taylor is always helpful. Express always has very welcoming assistants to help customers with sizing and styling. There are also both BOPIS and Buy in Store and Ship from Store options. The company has community partners and has made significant donations to cancer organizations, minority empowerment and hunger charities, yet it does not have programs on suitability. Walmart offers good services, but the pick-up option takes some time to research locations and availability. The retailer had a big focus on its layaway with Affirm. Walmart displayed BOPIS signage. There were not enough sales associates, but they made a strong effort. Exuberant sales associates at American EagleSource: Coresight Research Mrs. Santa greeting customersSource: Coresight Research Technology Integration We assessed the stores against four subcategories of technology integration: Omnichannel integration—transparent inventory across chain and online In-store technology, including virtual try-on and size finder Digital payment options—for example, ApplePay, WeChat Pay, Alipay, Samsung Pay and Venmo Checkout process With a total average score of 0.9, the strongest performer in the category of technology integration was Bloomingdale’s. Making up the rest of the top five were Ann & Taylor, Kohl’s, Lowe’s and Zara, all of which received a score of 0.8. Bloomingdale’s used virtual reality and gamification. Zara offered self-checkout powered by Sensormatic, in which the customer places the items on a platform and they are scanned together, rather than scanned individually. Kohl’s offered digital signage, in addition to technology to find a size online if it was not available in the store. Branded phone-charging bank at Banana RepublicSource: Coresight Research Sears pick-up and exchange kioskSource: Coresight Research This document was generated for
Insight ReportHoliday 2019: UK Black Friday Insights Coresight Research November 30, 2019 Executive SummaryOn November 29, Coresight Research’s UK team undertook its fifth annual tour of stores for Black Friday. In this report, we pick out likely outperformers, one apparent underperformer and other stores of note Debenhams and John Lewis saw strong in-store traffic. Visible demand at House of Fraser was very muted when we visited. Next continued to use Black Friday for “authentic” stock clearance, with a flat 70% discount applied to a very limited selection of clearance products. ASOS and Zara deepened their maximum discounts from last year, but appeared to apply those maximum discounts more selectively. Our store visits on Black Friday 2019 were undertaken in central London, with a focus on Oxford Street in the mid- and late morning. In addition to detailing the activities of individual retailers, we provide a table comparing promotions this year to those of 2018. One theme appears to be deeper promotions that have been applied more selectively: Zara offered 40% off selected products this year versus a 20% discount across a number of categories last year; ASOS offered up to 70% off everything this year (with discounts varying by product) versus a flat 20% voucher code last year. Black Friday fell six days later this year than in 2018—pushing it further into the Christmas shopping period and after most workers’ end-of-month pay days. Barclaycard reported a 12.5% increase in transaction volumes compared to Black Friday 2018, by 10:00 a.m. Outperforming Retailers John Lewis is the typical outperformer on Black Friday. However, we were impressed with the demand and in-store buzz generated by department-store rival Debenhams. An abundance of staff were on hand to give out flyers and assist shoppers, and the store featured a range of product-personalization stations in high-traffic areas. It executed the event well, with dedicated Black Friday-themed windows and festive music adding to the ambiance—although the latter may be basic, it was not noticeable at rival House of Fraser (see later). Debenhams Oxford Street was rewarded with apparently strong shopper numbers by mid- to late morning. Debenhams executed Black Friday impressively and saw apparently strong demand.Source: Coresight Research John Lewis also saw strong shopper traffic across departments. As ever, the electronics department was especially busy. In apparel, John Lewis offered brand-wide discounts on many premium brands, as well as deeper discounts on selected John Lewis & Partners private-label products. In many cases, brand discounts appeared to be driven by price-matching under John Lewis’s “Never Knowingly Undersold” pledge. In the store’s bustling electronics department, many shoppers appeared to be browsing nonpromotional goods—suggesting that the promise of deals may drive conversion to full-price purchases. In apparel, John Lewis focused merchandising on full-price products, again suggesting potential for cross-purchasing. This year, John Lewis started its promotions one week before Black Friday, on November 22. On the afternoon of Black Friday, Bérangère Michel, Operations Director, said: “With some of our most compelling deals having gone live overnight, this morning has been particularly busy with customers taking advantage of the new offers.” As of Black Friday afternoon, John Lewis’s best-selling products were the 2019 Apple iPad 10.2” in electronics; Calvin Klein Underwear Cotton Stretch Trunks in apparel; Dior Sauvage Spray Eau de Toilette in beauty; and LEGO Star Wars in toys. John Lewis’s busy electronics department saw many shoppers browse full-price products.Source: Coresight Research John Lewis’s regular (nondiscount) festive merchandising remained prominent, encouraging full-price sales.Source: Coresight Research Headline deals at John LewisSource: Coresight Research In the apparel specialist sector, H&M and Zara saw strong shopper traffic. H&M repeated its “20% off everything” promotion that we saw last year. Zara deepened its (selective) discounts, from 20% in 2018 to 40% this year. H&M was busier than our image suggests.Source: Coresight Research Shoppers were flocking to Zara by mid-morning.Source: Coresight Research One Notable Underperformer Among the major department stores, House of Fraser was by far the weakest. Even by late morning, shopper traffic was very weak across womenswear and menswear. Traffic was a little stronger in beauty—but that is a pattern we saw across department stores, and it also reflects the beauty hall’s position as a “walk-through” department at the front of the store. Soft demand at House of Fraser was despite the timing being more favorable for Black Friday this year than last. However, the retailer changed its promotional offering to an across-the-board £20 voucher (for a future purchase) for every £100 spent—matching the promotion of sister chain Sports Direct. House of Fraser continued to offer selective discounts on brands and categories, but these were less prominent than in prior years (see later for our comparison of promotions). We note two further factors that are likely to have impacted Black Friday at House of Fraser: The retailer has a substantially more limited private-label selection than previously, having axed the Linea and Howick brands earlier this year. This gave the company less scope for deep price cuts; the deepest discounts in prior years tended to be in private-label apparel. Its merchandising was underwhelming—for example, with low-end plastic signage for major brands such as Under Armour in sportswear (the sportswear section in menswear appeared to lean heavily on the kind of product stocked in Sports Direct). We expect that the solid shopper turnout at Debenhams was at least in part at the expense of House of Fraser. House of Fraser saw subdued demand during mid- to late morning.Source: Coresight Research Other Stores of Note Electronics is a major Black Friday category, but store traffic did not look especially strong at the UK’s biggest electronics chain, Currys PC World. We visited two of the company’s stores in central London, and while they saw reasonably solid traffic, the strength of in-store demand appeared to be much weaker than that seen at John Lewis. Currys PC World launched its deals online the night before Black Friday. The company noted that it saw two orders every second in its early trading period, with Apple Airpods, the Xbox One S and the Galaxy Tab A 10.1” proving to be the top sellers. A later press release noted strong demand for the iPhone 11; Currys PC World offered £50 off the iPhone 11 Pro and iPhone 11 Pro Max. As in recent years, Next used Black Friday for “authentic” stock clearance, with a flat 70% discount on a very limited selection of clearance products. This contrasts strongly with the across-the-board discounts offered by rivals such as H&M and River Island (which, like H&M, offered 20% off everything in store), and maintains Next’s reputation for price discipline. Next maintained price discipline by offering (deep) discounts only on a highly limited selection of stock.Source: Coresight Research Adidas’s still-new flagship store on Oxford Street offered 30% discounts on a highly limited range of products, aligning with the store’s focus on brand building. Selected products were on offer at Adidas LDN.Source: Coresight Research As in recent years, Marks & Spencer opted out of Black Friday. Online Promotions ASOS and Boohoo.com deepened their promotions year over year. Boohoo offered up to 75% off everything (versus up to 50% off last year), and ASOS switched from a 20%-off voucher code in 2018 to up to 70% off all products this year. Boohoo.com offered discounts of up to 75% everything this year.Source: Company website ASOS offered discounts of up to 70% on all products this year.Source: Company website Amazon UK offered Black Friday promotions for a number of categories, including Amazon devices; computing and software; headphones, speakers and music; mobile phones; TVs, movies and home cinema; toys; and video games and accessories. Its headline deals were the Echo Dot reduced by more than half (from £49.99 to £22.00), Echo Show reduced from £79.99 to 49.99 and the Fire TV Stick cut to half price, from £39.99 to £19.99. Promotion Comparisons Source: Companies/Coresight Research This document was generated for
Event CoverageInsights from the Baker Retailing CEO Summit 2019 Coresight Research November 29, 2019 Executive SummaryOn October 15, the Coresight Research team attended The Wharton School’s Baker Retailing Center CEO Summit in New York City. We outline key insights from the event: Retailers are becoming less transactional and more emotionally connected with shoppers. A growing number of apparel companies are offering rental or subscription services. Brands and retailers are focusing on improving the shopping experience for their consumers. Private label is an important segment in the grocery sector. For Kroger’s Simple Truth brand, around 90% of transactions are captured on loyalty cards. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Store TrackerWeekly US and UK Store Openings and Closures Tracker 2019, Week 48: Charlotte Russe Expands Store Fleet Coresight Research November 29, 2019 Reasons to ReadOur Weekly US and UK Store Openings and Closures Tracker reports on store closures, openings and bankruptcies. We cover: What is happening in retail in the US and UK this week Year-to-date 2019 major US and UK store openings and closures 2019 major US retail bankruptcies New non-store-closure news This week, there are highlights from Charlotte Russe and H&M in the US and Abercrombie & Fitch in the UK. We also discuss quarterly store openings/closures settlements following the release of quarterly company filings this week. In the US, year-to-date announced closures have already exceeded the total we recorded for the full year 2018. So far this year, US retailers have announced 9,271 store closures and 4,341 store openings. Click here to view our full collection of Weekly US and UK Store Trackers. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportOctober 2019 Monthly Consumer Update: US, UK and China Coresight Research November 27, 2019 Reasons to ReadMacro-economic indicators from the US, UK and China all seem to point to positive, but growth seems unsteady and there remain areas of concern. US CPI growth eased in October, retail sales have been growing but at an erratic pace. UK earnings grew more quickly than inflation, while food and fuel inflation eased. China’s inflation grew at a faster rate, but still not as fast as wage growth. This report captures the big picture and what it means for retail as we head into the holidays. Coresight Research’s monthly reports keep you up to date on US and UK retail sales, US retail traffic and in-store metrics, selected US retailers’ same-store sales and key global consumer indicators. Click here to view our full collection of Monthly Reports. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportSupply Chain Briefing: Four Ways Companies Are Simplifying Their Supply Chains Coresight Research November 27, 2019 Reasons to ReadSupply chains are becoming increasingly complex, prompting global retailers to look for ways to simplify processes to speed operations and cut costs. Some of the strategies include: Consolidating vendors Unifying data systems Streamlining distribution channels Selling directly to consumers We also see companies lean on digital technologies, such as using Big Data and machine learning analytics tools for predictive analysis, embracing robotics and autonomous warehouses and leveraging cloud system to integrate digital infrastructure. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Event CoverageSalesforce 2019 Investor Meeting Focuses on Growth Drivers and Margin Improvement Coresight Research November 27, 2019 Executive SummaryOn November 20, 2019, Salesforce held its annual investor meeting in conjunction with its annual Dreamforce conference. Salesforce raised FY20 revenue guidance to $16.99–$17.00 billion from $16.75–$16.90 billion previously and offered solid targets for FY21 and goals for FY24. Global market growth drivers include a rising digital share of GDP and increasing spending on digital transformation. Salesforce’s growth strategy is based on growth among enterprises (including “land and expand” to increase sales to enterprises) and in new geographies and verticals. The company will supplement organic innovation with acquisitions to gain technology and talent, market adjacencies and to enter new markets. Salesforce has built a customer base that offers high persistence in recurring revenue and the company anticipates higher adjusted operating margins in FY21. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Insight ReportAlibaba: A Timeline of Key Events Coresight Research November 27, 2019 Reasons to ReadAlibaba operates on an international scale, providing e-commerce and digital solutions to business. As part of our Retailers’ Timelines series, we detail key events for Alibaba since its launch in 1999. Focusing on the past two years in particular, we look at the company’s investment priorities and strategic aims in the following sectors: Cloud computing E-commerce Local services Home furnishings Digital media Click here to read our full collection of Retailers’ Timelines. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportRetail-Tech Landscape: Artificial Intelligence in Retail Coresight Research November 27, 2019 Reasons to ReadArtificial intelligence can be applied to improve consumers’ shopping experience both online and offline, as well as to inform various aspects of retailers’ marketing and operational management strategies. As part of our Retail-Tech Landscape report series, we look at selected technology providers that offer artificial intelligence (AI) solutions across the supply chain. We cover the following applications: Conversational commerce Demand forecasting Inventory management Shopper engagement Store operations Supply chain management Visual search To view more of our Innovator Landscapes spotlighting innovative retail-tech startups that are disrupting the retail industry, click here. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Flash ReportLuxury Giant LVMH To Buy Tiffany for $16.2 Billion Coresight Research November 26, 2019 Executive SummaryOn November 25, French luxury conglomerate LVMH announced that it will buy Tiffany & Co, an American luxury jewelry retailer, for $135 per share for a total value of $16.2 billion. This acquisition further expands LVMH’s global presence in the fine jewelry market. The deal is the biggest ever for LVMH and is expected to close in the middle of 2020. The deal comes as global demand for jewelry is resurging. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Insight ReportInsights from China: Opportunities in China’s $63 Billion Livestreaming E-Commerce Market Coresight Research November 26, 2019 Reasons to ReadAs part of our biweekly Insights from China series, we assess the use of livestreaming in e-commerce as a strategy for brands to drive sales. This report covers the following content: Selling tactics deployed in livestreaming Major livestreaming e-commerce platforms Impact of employing livestreaming for brands and retailers Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveHoliday 2019: Hottest Toys Coresight Research November 26, 2019 Reasons to ReadThis report continues our Holiday 2019 series. Focusing on the toy industry in the US, we outline the latest gifting trends and discuss the key initiatives that retailers are undertaking in order to drive sales. We cover the following content: Store format preference of shoppers Types of toys that are trending this year, driven by the popularity of licensed entertainment characters and kid influencers, for example Competitive strategies being employed by major industry players The growth rate of the toys and games market in the US The appendix includes this year’s top-toy lists from Amazon, Kmart, Kohl’s, JCPenney, Target and Walmart. Click here to read Coresight’s coverage on US holiday retail and gain key retail insights for 2019 and prior years. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
