Reasons to Read

November 11 marks the Chinese shopping festival known as Singles’ Day. As part of our comprehensive series of reports covering this retail holiday, we assess the success of US and international brands in penetrating the Chinese market.

We discuss a number of factors that may be impacting the exposure of these brands:

  • The success of indigenous brands
  • Digital marketing strategies
  • Physical presence in China

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

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Reasons to Read

The e-commerce business model is evolving to enable retailers to engage with customers more directly. As part of our Retail-Tech Landscape report series, we look at the growth and success of various direct-to-consumer (DTC) brands.

This report covers the following content:

  • What is a DTC company?
  • Why are DTC brands so successful?
  • Growth of DTC brands
  • DTC brands that are disrupting the retail industry across a number of retail categories
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Reasons to Read

With comps flagging, Gap Inc. announced President and CEO Art Peck would step down to be replaced by the founder’s son. Comparable sales have been declining, particularly at Gap Global, for the last couple of fiscal years.

  • Gap global comparable sales for the third quarter ending November 2, 2019 were down
  • Banana Republic Global Brands’ comps also fell – but were up in the same period last year
  • Old Navy Global comps slid as well, also following an increase in the same period last year

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Executive Summary

November 10, 2019

  • This week’s note “From the Desk of Deborah Weinswig” looks at the rise of Spectacular Retail.

In the news this week:

  • CVS Pharmacy has worked with US logistics company UPS to offer prescription delivery by drone, and completed its first drone delivery to a private home and a retirement center on November 1.
  • British retailer Mothercare has filed a notice of intent to appoint administrators for its UK business; its global businesses will continue to operate as usual.
  • Amazon faces challenges in its planned acquisition of 49% of Indian retail conglomerate Future Group. The Competition Commission of India has raised competition questions which could delay the deal.

 

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Reasons to Read

Coresight Research recently visited the new Wegmans supermarket in New York’s Brooklyn Navy Yard.

  • The store is Wegmans’ 101st store – and its first store in NYC.
  • The store offers a complete slate of products, including grocery, prepared food, restaurant and bar options.
  • At 74,000 square feet, it is significantly larger than most NYC supermarkets – although roughly half the size of a typical Wegmans.
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Reasons to Read

The Xcel Brands x Coresight Research Monthly Fashion Trend Report highlights fashion trends that are just emerging or growing quickly.

  • Ruched mini dresses, body hugging dresses most often made from stretchy knit fabrics, is an emerging trend attracting consumers at all price points – from fast fashion to luxury and most selling at full price.
  • Oversized blazers are the new wardrobe staple of the season and are a top growing trend based on rapidly rising online search rates.
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Reasons to Read

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 Harrods in the UK and Dressbarn, Forever 21 and Kroger in the US.

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 9,037 store closures and 3,807 store openings.

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Reasons to Read

In this latest report in a series of quarterly economic updates focused on the US and China, we look at the drivers of GDP growth and the impact of trade tensions in the third quarter of 2019. We assess the following key macroeconomic indicators:

  • The rate of US GDP growth
  • The performance of US industrial production
  •  Changes in personal consumption expenditure
  • Changes in accumulated per capita expenditure in real terms
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Reasons to Read

The Xcel Brands x Coresight Research Monthly Fashion Trend Report highlights fashion trends that are just emerging, growing quickly or hitting maturity.

The Monthly Fashion Trend Report offers critical insights on evolving trends for designers, planners, retailers, buyers and merchandisers. The trend report is a valuable decision-making tool based on deep quantitative and qualitative analysis using data from Trendalytics.

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Reasons to Read

Powered by data and technology, China-based e-commerce giant Alibaba is realizing three major growth strategies through the implementation of its “New Retail” concept.

In this report, we see how the company is applying New Retail across numerous brands in multiple verticals, including:

  • Online retail
  • Offline retail
  • Strategic alliances
  • Cloud computing
  • Logistics
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Reasons to Read

In line with the 2019 industry trend of providing a destination retail experience for shoppers, Nordstrom has opened a flagship women’s store in New York. Using the Coresight Research BEST framework for physical retail, we assess Nordstrom NYC against the following four themes:

  • Brand building
  • Experiences
  • Service
  • Technology integration
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Reasons to Read

The travel retail industry is experiencing high year-over-year growth, offering opportunities for beauty brands and retailers to increase sales.

In this report, we assess the growth of selected beauty brands in airports and other duty-free stores, and consider the impact of a number of key drivers:

  • Increasing numbers of travelers, particularly from China
  • Convenience and price advantage
  • Access to data insights
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Our infographic focuses on the results of our fifth annual survey of Chinese overseas tourists’ travel, spending behavior and preferences.

Find the full report here.

Reasons to Read

Adobe held its annual financial-analyst meeting in conjunction with its annual MAX conference and laid out plans to expand its total addressable market (TAM) to $128 billion in 2022, up from the $108 billion market estimated last year.

  • Adobe expects category creation and expansion, customer expansion and technology to drive this growth.
  • The company expects growth to come from its Experience Cloud, which offers tools that enable e-commerce, including analytics, customer data analysis, experience management, managing transactions and managing and automating advertising campaigns.
  • Adobe expects Experience Cloud growth from higher demand for data and insights, content and personalization, commerce, customer journey management and advertising

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Reasons to Read

On November 5, Kroger hosted its 2019 analyst day.

  • Management noted the benefit of “incrementaility” from digital channels: Over 50% of Kroger’s revenue from delivery and pickup services comes from competitors. And, as customers shop across more modalities (channels), they bring more sales from rivals to Kroger.
  • CEO Rodney McMullen said Kroger’s aspiration is to generate a strong, attractive shareholder return. This is underpinned by a stable and growing core grocery business, complemented with asset-light alternative profit streams combined with a focus on high-return capital investments.
  • For FY20, management guided for adjusted earnings per share (EPS) of $2.30-2.40 versus the FactSet consensus of $2.30; identical-store sales growth of more than 2.25%; and, alternative profit businesses to grow incremental operating profit in the range of $125 million to $150 million.

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