Executive Summary

November 17, 2019

  • This week’s note “From the Desk of Deborah Weinswig” looks at another record-breaking Singles’ Day – and what it means for Western retailers.

In the news this week:

  • Amazon reportedly plans to launch its own low-cost grocery format with a store in Los Angeles in 2020 – not a Whole Foods nor an Amazon Go store – something new.
  • US fashion house Kenneth Cole opened its first flagship store in India in Mumbai and plans to open 10 stores in India in the next three years.
  • UK clothing retailer Quiz has collaborated with fashion-tech startup True Fit to deliver its custom fitting solution across its entire online collection in an effort to enhance the online experience – and reduce returns. 

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Reasons to Read

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.

Highlights from our October UK Retail Sales Report:

UK retail sales continued to grow at a reasonably healthy clip in October 2019albeit more slowly than in September. 

We review the monthly data for UK retail in total and by sector: 

  • We chart the trend in total value and volume retail sales growth over the last 13 months. 
  • We show value sales growth for 20 sectors across food and nonfood retail, for each of the latest three months. 
  • We discuss the growth in online retail sales, by major sector.  
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Our 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 store openings and closures
  • 2019 major US retail bankruptcies
  • New non-store-closure news

This week, there are highlights from Amazon in the US and supermarket chains Lidl and Sainsbury’s 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 9,052 store closures and 3,956 store openings.

Click here to view our full collection of Weekly US and UK Store Trackers.

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As part of our comprehensive series of reports covering the Chinese shopping festival known as Singles’ Day, we provide highlights of the promotions that retailers offered on November 11, both online and in physical stores.

This report covers the global expansion of the shopping holiday this year, focusing on the following regions:

  • US
  • Hong Kong
  • India
  • Europe

Click here to read more Coresight coverage of Singles’ Day for 2019 and prior years.

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Adidas opened a new four-floor Adidas LDN flagship store on London’s Oxford Street in late October. The Coresight Research team visited the store shortly after its launch to see what new and exciting features it offers.

We discuss how, in the latest example of “spectacular retail,” Adidas has incorporated the following key themes in its new store, with a focus on improving the shopping experience for its customers:

  • Digital integration, including interaction with the Adidas app
  • Specialist services and product customization
  • Immersive product experiences
  • Localization features
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German business software group SAP announced ambitious plans to grow margins five percentage points through 2023 at its most recent capital markets day.

Management outlined areas in which SAP can improve and grow:

  • Starting and ending with the customer.
  • Defining one set of priorities for the company.
  • Ensuring focus based on clear priorities.
  • Reviewing the business through three realities (market, product and financial).
  • Driving accountability through focus.

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Four major UK department-store chains—House of Fraser, Debenhams, Marks & Spencer and John Lewis—have come up against sustained structural shifts in retail in recent times.

In this report, we detail the resulting decline of these companies, assessing a number of factors:

  • Where department stores went wrong
  • The use of company voluntary arrangements to prevent business collapse and subsequent revival plans
  • Internal struggles and poor management decisions
  • Strategies that have been tried but failed, including e-commerce, destination retail, private-label products and store closures

The appendix includes timelines of key events.

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AI is a powerful tool that can greatly improve customization—but offers many other benefits, such as:

  • Understanding your customers better.
  • Providing enhanced services.
  • Offering a more seamless shopping journey.
  • Entertaining the customer during the shopping experience.
  • Improving operational efficiency.

We’re seeing leaders and emerging players specializing in areas such as marketing, customer service, sentiment analysis and demand forecasting. This report uses our proprietary Coresight Matrix to evaluate who’s leading and who is emerging in innovation and market power.

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We have identified five key takeaways from this year’s American Apparel and Footwear Association Executive Think Tank, covering the following themes:

  • Digitalization and transparency in supply-chain operations
  • Climate change
  • China market entry
  • Physical store transformation, using Coresight Research’s BEST framework

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As part of our comprehensive series of reports covering the Chinese shopping festival known as Singles’ Day, we detail the sales performances of major e-commerce players on November 11, namely Alibaba and JD.com.

This report summarizes highlights from the shopping holiday, covering the following content:

  • Alibaba’s impressive results compared to 2018
  • JD.com’s transaction growth
  • Global brand participation and product offerings
  • Innovative consumer shopping experiences, including livestreaming
  • Consumption in lower-tier cities
  • A focus on sustainability

Click here to read more Coresight coverage of Singles’ Day for 2019 and prior years.

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As part of our biweekly Insights from China series, we assess the parent-and-baby sector in China, which has grown rapidly in recent years, particularly in the e-commerce market.

This report covers the following content:

  • Annual growth rates of retail sales, both online and in stores
  • Market share of segments within the parent-and-baby sector
  • Key players in the parent-and-baby market and those leading in e-commerce
  • Customer demographics
  • Future opportunities for brands and retailers
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We offer key US consumer shopping insights for the holiday season 2019, based on data from the National Federation’s annual holiday spending survey. We consider a number of factors that could affect the approach of retailers and brands heading into this shopping season:

  • Spending intention trends across different age groups
  • Key influences on shopping decisions for the holiday season
  • Consumers’ preference for when to shop for holiday gifts
  • The use of online platforms and associated services for holiday shopping
  • The influence of the economy on spending plans

Click here to read Coresight’s coverage on US holiday retail and gain key retail insights for 2019 and prior years.

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  • Costco’s global same-store sales growth accelerated sequentially in October – especially online comps.
  • Buckle’s comps also accelerated, especially in men’s.
  • Cato’s same-store sales growth slowed in October, with the company cautiously optimistic as it evaluates the impact of current and future tariffs.
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As part of our comprehensive series of reports covering the Chinese shopping festival known as Singles’ Day, we provide news from the day itself as international and domestic brands alike compete for greater gains.

This report covers early updates and highlights from the retail holiday on November 11:

  • The achievement of record milestones by Alibaba
  • An emphasis on new products and consumer experiences
  • The prevalence of livestreaming and influence of key opinion leaders
  • The expansion of Singles’ Day to offline channels

Click here to read more Coresight coverage of Singles’ Day for 2019 and prior years.

 

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QUESTION OF THE WEEK: What Products Do Chinese Tourists Buy While on Overseas Trips?

Fragrances and beauty products were the most-bought category by Chinese travelers on overseas trips in 2019, according to Coresight Research’s fifth annual survey of Chinese outbound tourists. Clothing, footwear and accessories were the second-most-purchased category.

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