Deep DivePrivate Label To Drive Disruption in CPG Coresight Research October 8, 2019 Executive SummaryPrivate-label products are a major disruptor in the US consumer packaged goods (CPG) category. In this report, we outline the scale of private labels in US CPG, discuss why retailers are moving into private labels and how CPG brands can respond to the challenge. US private-label CPG sales growth accelerated from 2.2% in 2015 to 5.8% in 2018, according to IRI. Major retailers have rolled out private labels across a range of CPG product categories. Target and Kroger have recently launched new CPG brands. Retailers’ shopper data gives them an advantage in better understanding what consumers want, so they can launch private-label products to match. CPG brand owners are fighting back by adding direct-to-consumer channels and boosting R&D spend for product differentiation. 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
Question of the WeekHow Does US Retailers’ Buy Online, Return in Store Deployment Compare Against Global Counterparts? Coresight Research October 7, 2019 QUESTION OF THE WEEK: How Does US Retailers’ Buy Online, Return in Store Deployment Compare Against Global Counterparts? US retailers trail their international counterparts marginally in adopting the “buy online, return in store” (BORIS) model, with 42.1% offering the service versus the international average of 46.7%, according to a 2018 OrderDynamics survey of retailers in seven countries. Omnichannel retailers see much higher rates of adoption. This document was generated for
Company Earnings UpdateCostco Wholesale (NASDAQ: COST) 4Q19 Results: Revenues and EPS Comfortably Beat Consensus Coresight Research October 7, 2019 Executive Summary Costco Wholesale reported 4Q19 revenues of $47.50 billion, up by 7.0% and comfortably above the consensus estimate of $37.33 billion. EPS was $2.47, up 4.9% compared to the year-ago quarter and easily beating the $1.71 consensus estimate. Comps increased 5.1% compared to 7.2% in the year-ago quarter, excluding the impact of changes in gasoline prices, foreign exchange and an accounting change related to revenue recognition. This document was generated for
Deep DiveHoliday 2019: UK Retail Outlook—One-Third of Nonfood Sales Set To Be Online Coresight Research October 7, 2019 Executive SummaryContinuing our Holiday 2019 series, we preview UK retail over the peak November–December season. As we write, the nature and timing of the UK’s departure from the EU, which is scheduled for October 31, are unconfirmed, and this adds uncertainty to estimates for the holiday peak. An on-schedule exit from the EU at the end of October will provide some (perceived) finality to consumers. In the best case, this could release pent-up consumer demand, which would provide some upside to our estimates for holiday trading. Reinforcing this possibility, consumers confounded economists’ forecasts after the UK voted to leave the EU in 2016 by going on a spending spree that resulted in strong holiday retail sales. We expect to see total retail sales grow by around 3.5-4.0% year over year, with the midpoint of 3.75% taking total holiday retail sales to £83.7 billion. This compares favorably to the 3.1% increase last year. We estimate some 32.6% of all nonfood spending will be online this holiday season. We expect Internet-only retailers to outpace the increase in total online sales by around 500 basis points. For large retail businesses, which account for the bulk of retail sales, we expect growth of approximately 3.0-3.5% during November and December. Across a number of metrics relevant to the consumer economy, we see a more positive environment than last year; wage growth has strengthened considerably and unemployment is down. 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 ReportHalloween 2019 Will be an $8.8 Billion Holiday in the US, Down Slightly from Last Year’s $9 Billion Coresight Research October 4, 2019 Executive SummaryAccording to new survey data from the National Retail Federation (NRF) and Prosper Insights & Analytics: US consumers plan to spend an average of $86.27 this Halloween – far less than other holidays such as Valentine’s Day’s $162 average and down slightly from last year’s Halloween record of $86.79 per person. Average spend has remained relatively flat over the past few years, although the long-term trend in total spend has been a slow but steady rise, from $3.3 billion in 2005 to $8.8 billion in 2019. Celebrants will look to social media this year more than ever before: 35% of those surveyed will look online for inspiration, the next highest is in-store at 28%. Some 67% of those who will shop this year plan to buy a costume. This document was generated for
Event CoverageInsights from Groceryshop 2019 Coresight Research October 4, 2019 Executive SummaryThe Coresight Research team was in Las Vegas attending and participating in the Groceryshop 2019 conference, September 15-18. In this report, we share our insights from the conference. Coresight Research CEO and Founder Deborah Weinswig kicked off the event by emceeing the Groceryshop Emerging Technology Spotlight on September 15. Weinswig also introduced Coresight Research’s SCORE framework for artificial intelligence (AI) in grocery retail. Companies need to connect demographics, life stage, lifestyle, social media and other lifestyle indicators to truly understand customers and predict behavior using AI. Many at Groceryshop expressed the view that it is better to risk taking action based on imperfect data, instead of waiting for the perfect data set that may never come. This document was generated for
Insight Report30 Global Retail Cities: São Paulo Coresight Research October 4, 2019 Executive SummaryWith this series, 30 Global Retail Cities, we profile the world’s major shopping cities—from fashion capitals such as Milan to shopping hubs such as Honolulu and Bermuda. We curated the top retail stores in each city, along with must-see shopping districts, major retail events and innovative store formats. Click here to view the full 30 Global Retail Cities series. Highlights: São Paulo Fashion Week is a semi-annual event that acts as a platform to promote Brazil’s creative fashion culture. House of Bubbles combines a launderette with a clothing rental subscription service, encouraging customers to think about sustainability in fashion. Vila Madelena is an up-and-coming Bohemian area in São Paulo, featuring a variety of bars, restaurants, shops, art galleries, street art and antique fairs. 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
Analyst CornerWeinswig’s Weekly — October 4, 2019 Coresight Research October 4, 2019 Executive SummaryOctober 4, 2019 This week’s note “From the Desk of Deborah Weinswig” looks at the waning importance of holiday shopping for US retailers, with holiday sales accounting for a steadily decreasing proportion of annual sales. In the news this week: Simon Property Group is teaming up with online shopping site Rue La La’s parent company to launch a new website for people looking for deals. Uniqlo has partnered with textile company Toray Industries to launch a line of apparel made from used Uniqlo down jackets and recycled plastic bottles. Carrefour has extended the use of blockchain technology to Camembert de Normandie cheese. Shoppers can trace producers’ locations and see the product’s path from farm to shelf with a QR code scan. This document was generated for
Flash ReportNational Retail Federation Forecasts 2019 US Holiday Sales Growth of 3.8%–4.2% Coresight Research October 4, 2019 Executive SummaryThe National Retail Federation (NRF) released its 2019 US holiday forecast. The NRF expects spending in November and December to increase by 3.8%-4.2% year over year, taking total sales to between $727.9 billion and $730.7 billion. The NRF’s forecast aligns with Coresight Research’s estimate of 4% growth for November and December. The NRF’s 2019 forecast is above the five-year historical holiday average of 3.7. The solid forecast reflects that the US economy is continuing to grow and that consumer spending is the primary engine behind the growth, according to Matthew Shay, NRF President and CEO. The impacts of tariffs on holiday spending are unknown, as some merchandise was subject to tariffs that took effect September 1, and other products will have tariffs applied on December 15. Click here to read Coresight’s coverage on US holiday retail and gain key retail insights for 2019 and prior years. This document was generated for
Store TrackerWeekly US and UK Store Openings and Closures Tracker 2019, Week 40: Forever 21 Files for Bankruptcy; Plans To Close Many US Stores Coresight Research October 4, 2019 Executive SummaryOur Weekly US and UK Store Openings and Closures Tracker reports on store closures, openings and bankruptcies. In the US, year-to-date announced closures have already exceeded the total we recorded for the full year 2018. Coresight Research estimates announced US store closures could reach 12,000 by the end of 2019. So far this year, US retailers have announced 8,579 store closures and 3,571 store openings. This compares to 5,844 closures and 3,258 openings for the full year 2018. Year to date, UK retailers have announced 443 store closures and 635 store openings. 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 CoverageBrookfield Investor Day 2019: Low-Interest-Rate Environment Will Drive Valuation Coresight Research October 4, 2019 Executive SummaryOn September 26, 2019, Brookfield Property Partners hosted its investor day at Brookfield Place in New York City. The company will continue to leverage its real estate platform to buy, build and operate assets. Brookfield is committed to minimizing the environmental impact of is operations, fostering energy efficiency, conserving natural resources and reducing waste. Management commented that the company’s assets will become more valuable in a low-interest-rate environment. This document was generated for
Company Earnings UpdateAscena (NASDAQ: ASNA) 4Q19 Results: Concentrating on Growing Brands, Ascena Says It Is Not Considering Bankruptcy Coresight Research October 4, 2019 Executive Summary Ascena Retail Group reported fiscal 4Q19 revenues of $1.27 billion, above the consensus estimate of $1.20 billion, but down year over year. The company reported adjusted 4Q19 earnings per share (EPS) of $0.13 excluding items, lower than the year ago period. Ascena’s third quarter comparable sales were flat, compared to a 4% increase in the year-ago period. Due to the closure of the company’s Dressbarn business, the company provided guidance for only the continuing operations of its premium fashion brands, plus fashion brands, and kids segments for 1Q20: The company projects net sales of $1.10-1.12 billion. Management expects comparable sales of negative low single digits. This document was generated for
Company Earnings UpdateH&M (STO: HM-B) 3Q19 Results: Revenues and EPS Beat Consensus; Transformation Work on Track Coresight Research October 4, 2019 Executive Summary H&M reported 3Q19 net sales of SEK 62.57 billion, up 12.1% year over year and slightly higher than the consensus estimate of SEK 62.44 billion recorded by StreetAccount. The company reported EPS of SEK 2.33, up 24.6% year over year, and ahead of the consensus estimate of SEK 2.28 recorded by the StreetAccount. In FY19, the company plans to open a total of 290 new stores, including franchises, and the majority of these will open in 4Q19. This document was generated for
Event CoverageTech. 2019: Technology Is Driving Consumer Centrism and Smart Consumption in Retail Coresight Research October 4, 2019 Executive SummaryOn October 2–3, 2019, Coresight Research’s London team attended Tech. 2019 at Printworks, London. The event focused on the technology and trends that are shaping the future of retail: Technology empowers customer-centric retail models, enabling companies to deliver consistent levels of customer service across multiple touchpoints. Partnerships between companies to strengthen data analytics or last-mile delivery are seen as a winning model in retail compared to the alternative of vertical integration, according to retailers such as JD.com. While smartphones are currently central in the consumer experience, the rise of wearables could threaten the role of cell phones in retail in the near future, by delivering greater personalization and a better user experience. The adoption of 5G technology is needed to unleash the full potential of artificial intelligence (AI) in retail. The next-generation mobile connectivity can deliver the low latency needed for more advanced AI applications. AI enables smart consumption through greater personalization that minimizes the risk of failing to offer shoppers what they want, which in turn reduces unsold inventory that needs to be disposed of and the likelihood of returns, making the industry more sustainable. This document was generated for
Company Earnings UpdateTesco (LSE: TSCO) 1H20 Results: Dave Lewis To Step Down in 2020 Coresight Research October 3, 2019 Executive Summary In 1H20, Tesco reported a strong, 25% increase in adjusted operating profit, yielding an adjusted operating margin of 4.4%. In 2Q20, the closely watched measure of UK comp growth slid to (1.0)%, versus 0.4% in 1Q20 and below the (0.6)% consensus. CEO Dave Lewis is to leave in summer 2020. He will be succeeded by Ken Murphy, formerly of Walgreens Boots Alliance. This document was generated for
