Question of the WeekWhich Are the Most Shopped Discount Apparel Retailers in Germany? Coresight Research August 12, 2019 QUESTION OF THE WEEK: Which Are the Most Shopped Discount Apparel Retailers in Germany? KiK, Takko, Primark and NKD are the most popular discount apparel retailers in Germany, by number of shoppers. Off-pricer T.K. Maxx (known as T.J. Maxx in the US) is the 18th-most-shopped apparel retailer. This document was generated for
Deep DiveRetailTech: In-Store Technology Coresight Research August 12, 2019 Executive SummaryRetail stores are bursting with technology: on the store floor, on the walls and shelves and ceilings, in sales associates’ hands and in the back room. This report outlines several technologies retailers use to communicate with consumers, offering a quicker, smoother, more pleasant and entertaining shopping experience. In 2019, US retailers should spend about $100 billion on capital improvements (stores and equipment), we estimate from US Census Bureau data. Some of the most powerful in-store technology is brought in by consumers — their smartphones — which they use to research products, visualize themselves trying on apparel and even checkout and pay themselves. There is a great deal of interactive technology in stores, such as product displays and magic mirrors, which collect information such as customer movements or emotions, which can then be used to offer personalized experiences and use augmented reality technology to show how a garment looks when tried on. Sensors and cameras inside the store can gather a great deal of data about the shoppers: how many enter the store, the areas they visit, which products they pick up, if they carry them into the fitting room. Facial recognition technology can identify them, though this raises privacy concerns. An army of robots has invaded stores, now greeting, guiding and fetching for customers, as well as taking inventory, mopping the floors, helping on the loading dock and in the warehouse. 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 ReportJuly 2019 US Same-Store Sales: Costco Reports Comps Below Consensus Coresight Research August 12, 2019 Executive SummaryCoresight 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. Our monthly US Same-Store Sales Report reviews comparable sales metrics reported by Costco, Buckle and Cato. Highlights from our July US Same-Store Sales report: Costco’s global same-store sales growth marginally improved from June, but missed the consensus estimate. Its e-commerce growth accelerated to 21.3% in July, from June’s 15.7%. Buckle posted a decline in same-store sales. Sales declined in both the men’s and women’s segments. Cato’s same-store sales growth rate decelerated from 8% in June to 4% in July. The company stated that July total sales exceeded the company’s expectations but it foresees challenges for the second half of the year. 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 ReportThree Months to Singles’ Day: Strategies to Drive Traffic for 11.11 Coresight Research August 12, 2019 Executive SummarySingles’ Day, held annually on November 11, began as a festival of young Chinese people celebrating their pride in being single. Alibaba started promoting the day as a shopping day (now officially called the 11.11 Global Shopping Festival) back in 2009. Only 27 brands participated then, generating total gross merchandise volume (GMV) of $7.8 million. Last year, total GMV on Alibaba’s various platforms hit $30.8 billion, up 27% from the prior year and a huge 252% CAGR over the past nine years. Click here to read more Coresight coverage of Singles Day for the upcoming 2019 shopping event and prior years. In our monthly reports counting down to Singles’ Day, we help retailers prepare for the event. With three months to go, we discuss traffic-driving strategies on Taobao and Tmall. 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 ReportAmazon India Engages Consumers with Gamification Coresight Research August 9, 2019 Executive SummaryAmazon is finding new ways to promote its mobile shopping app and drive mobile traffic in India. In this report, we look into the app-only quiz campaigns Amazon runs regularly for its consumers in India. App-only quiz campaigns are part of Amazon’s marketing campaign to promote its mobile app, increase subscribers and drive mobile traffic. With 483 million Internet users in India, about 36% of the population, there is room for growth in mobile app users. Amazon is trying to leverage this opportunity. App-only quiz campaigns can help increase repeat purchases and cross-selling. 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 Report30 Global Retail Cities: Geneva Coresight Research August 9, 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. These are our highlights from Geneva: Geneva hosts the annual International Exhibition of Inventions, which showcases over a thousand innovations from around the world; companies looking to acquire new technology and investors come to see what the future may look like. Geneva offers high-end shops selling luxury goods, alongside many mainstream retailers offering products at all price points. Geneva also features many innovative retail stores that have handcrafted products such as clothing, accessories and homewares. 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
Company Earnings UpdateFarfetch (NYSE: FTCH) 2Q19 Results: Strong Growth Driven by Platform GMV Coresight Research August 9, 2019 Executive Summary Farfetch 2Q19 revenues grew 42.7% to $209.3 million, beating the $199.7 million consensus estimate, as platform GMV expanded 44.3% to $488.5 million. Active users increased 55.7% to 1.8 million. The company reported an adjusted loss of $(0.15) per share, in line with the consensus estimate and versus a $(0.05) per share loss in the year ago quarter. The outlook for 2019 GMV was increased to reflect the New Guards acquisition as well as the prevailing heightened promotional environment for luxury. GMV is projected at $2.1 billion, up about 50%; platform GMV is estimated at $1.91-1.95 billion, a 37-40% gain, and an adjusted EBITDA loss of $(135) to $(145) million for an adjusted EBITDA margin of (15)% to (17)%. This document was generated for
Deep DiveE-Commerce Opportunities in Southeast Asia: Market Entry 101 Coresight Research August 9, 2019 Executive SummaryIn this report, we outline the scale and potential of retail and e-commerce in Southeast Asia. We discuss the opportunities in e-commerce platforms that brands can leverage, and the strategies brands can adopt to enter the e-commerce market in Southeast Asia. Southeast Asia’s retail sales are forecast to almost double to $1.38 trillion in 2025 from $720 billion in 2018, according to a study by Google and Temasek. E-commerce sales are expected to virtually quadruple to $100 billion by 2025 from $23 billion in 2018, according to Google and Temasek. Southeast Asia’s e-commerce potential lies in many factors that are unique to the region, which include: a GDP growth rate of 5.3% over the next 10 years, a growing middle class, a young population and a high rate of Internet and mobile penetration. Brands can leverage existing e-commerce platforms to break into this market, using strategies such as launching hero products and joining shopping festivals. 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 — August 9, 2019 Coresight Research August 9, 2019 Executive Summary This week’s note “From the Desk of Deborah Weinswig” looks at the impact of the falling UK pound on British consumers and retailers. FedEx will end its delivery agreement with Amazon as the online juggernaut develops its own delivery network which could potentially compete with FedEx. UK-based online fashion group Boohoo Group has purchased the online business and intellectual property rights of fashion brands Karen Millen and Coast from administrators for £18.2 million ($22.1 million). Indian e-commerce firm Flipkart will add a free video streaming service to its app, rolling out to 1% of users now but with a target of 100% in 20 days. The move is designed to attract new users and increase engagement. This document was generated for
Insight ReportSix Top Chinese Shopping Festivals You Cannot Miss Coresight Research August 9, 2019 Executive SummaryChinese shoppers respond well to sales and special promotions. Shopping festivals offer enticing opportunities for brands and retailers to drive sales, gain brand recognition and market themselves to Chinese consumers. Here, we discuss the top six Chinese shopping festivals brands and retailers can leverage to reach Chinese consumers. For each shopping festival, we will discuss what it is, why it is important and what brands can do to leverage the opportunity. Chinese New Year Chinese New Year, also commonly referred to as Spring Festival, usually falls in late January or early February and is the most important holiday in China. Families gather for meals and other celebrations spread out over days, each generally involving visits to various friends and relatives. The most common gift is a hongbao, a red envelope with cash inside, along with other gifts to family and friends. Chinese consumers usually begin preparing for the festival by buying various items weeks or even a month in advance. In 2019, retail sales in China during Spring Festival reached over ¥1 trillion, up 8.5% year over year, according to China’s Ministry of Commerce. In 2019, brands launched special-edition products for the year of the pig (each year of the 12-year cycle is represented by a different animal in the Chinese zodiac). Nike released a limited-edition Chinese New Year collection that unified patterns of all Chinese zodiac animals onto classic Nike, Jordan Brand and Converse silhouettes. Nike’s 2019 Chinese New Year EditionSource: Nike In a previous report Online Retailers Gear Up for Chinese New Year, we featured more examples of promotions on major marketplace websites. International Women’s Day Falling on International Women’s Day on March 8, the 3.8 International Women’s Day shopping festival targets female consumers. In China, retailers promote products such as women’s fashion, cosmetics and skincare during the event. We also see brands marketing in advance of the shopping festival. For example, Nike launched a “Just Do It” campaign in late February 2019 as a pre-sales event to boost customer awareness. Nike’s “Just Do It” campaignSource: Nike 6.18 Shopping Festival JD.com is the second-largest B2C e-commerce platform in China after Alibaba’s Tmall, and the company celebrates its June 18 anniversary every year by offering promotions. The 6.18 Shopping Festival, which lasts 18 days, was launched in 2010 and has developed into a hugely popular shopping event, similar to Alibaba’s 11.11 Global Shopping Festival (also known as Singles’ Day). While the 6.18 Shopping Festival was created by JD.com, the shopping festival has attracted retailers from across the e-commerce industry. In 2019, JD.com sales transaction volume during the event reached a record of , up 18.2% year over year. While Alibaba’s Tmall does not disclose total transaction volume, it did disclose that 110 brands reached around $14.5 million in sales including Apple, L’Oreal, Lancome, Nike and Adidas. Some brands such as Dyson, L’Occitane and Li-Ning, collaborated with Tmall to create exclusive 6.18 Shopping Festival versions of various products to drive excitement. Dyson, L’Occitane and Li-Ning’s collaborations with Tmall on limited edition 6.18 Shopping Festival productsSource: Tmall National Day Golden Week China’s National Day, which falls on October 1, celebrates the founding of the People’s Republic of China in 1949. It kicks off a one-week nationwide holiday called Golden Week, during which hundreds of millions of Chinese people travel and shop. During China’s National Day Golden Week 2018, total sales of retail and food and beverage enterprises in China amounted to $202 billion, up 9.5% year over year, according to China’s Ministry of Commerce. Brands often offer special discounts during National Day Golden Week. For example, Xiaomi offered special discounts to selected phone models between October 1 and 7, 2018. Xiaomi promotion during the 2018 China National Day Golden WeekSource: Xiaomi Double 11 Festival The Singles’ Day Shopping Festival, also known as Double 11 in China, was originally created by a group of Chinese college students to celebrate their singledom. Alibaba started holding sales during the festival in 2009, it gained popularity over time with promotions and deep discounts and has now grown to eclipse Black Friday in sales volume. In 2018, the total GMV on Alibaba’s various marketplaces hit $30.8 billion in the one-day event, up 27% year over year. In our previous report on Tmall category sales in 2018 Singles’ Day, we also saw that women’s clothing brands can sell up to 65 times more units on Singles’ Day than on an average day. To maximize sales, brands promote on social media with the help of influencers. Snack brand Three Squirrels featured selected products on Taobao’s live streaming platform the with the help of Chinese girl group SNH48. Customers logging onto Taobao to view the live stream had a chance to win prizes. Three Squirrels’ influencer marketing on the Taobao live streaming platform (right)Source: Three Squirrels Double 12 Festival The 12.12 festival represents an opportunity to clear inventory left after Singles’ Day, and is an end-of-season promotional sale hosted primarily by JD.com, Alibaba and some other marketplaces. The shopping festival lasts four days: December 8-12. While Alibaba did not disclose sales volumes for the 2018 12.12 Shopping Festival, e-commerce platform Pinduoduo said it saw a 370% increase in the number of purchase orders compared to the previous year. We see brands offering price discounts. For example, Huawei introduced price discounts of up to for selected phone models. Huawei 12.12 price discounts for models P9, Honor V8 and Honor 7iSource: Huawei Key Insights E-commerce in China represents a highly competitive scene, and can be hard for new participants to enter. The top shopping festivals in China represent huge opportunities for brands and retailers to raise brand awareness and drive sales. Brands and retailers must be ready to take advantage of the shopping festivals China to tap into their full potential. This document was generated for
Company Earnings UpdateCVS Health (NYSE: CVS) 2Q19 Results: Narrows Profit and Earnings Outlook on Aetna Strength Coresight Research August 9, 2019 Executive Summary CVS Health reported 2Q19 revenues of $63.4 billion, up 35.2% year over year and ahead of the consensus estimate. Diluted EPS was $1.49, versus a loss per share of $2.52 in 2Q18. CVS closed its acquisition of Aetna in November 2018 and was the primary growth driver during the quarter, along with increased volumes and brand name drug price inflation. For FY19, CVS narrowed its adjusted EPS guidance range to $6.89-7.00 from $6.75-6.90. This document was generated for
Company Earnings UpdateAdidas (DB: ADS) 2Q19 Results: Double-Digit Revenue Growth in E-Commerce and in China Coresight Research August 9, 2019 Executive Summary Adidas reported 4% currency-neutral 2Q19 revenue growth driven by high-single-digit growth in its sport inspired business. Revenues rose 5% to €5.51 billion. Asia Pacific sales grew 8% on a currency-neutral basis, driven by the strong 14% pace set in greater China. The company reconfirmed FY19 guidance: Sales growth of 5-8% on a currency-neutral basis and net income from continuing operations of €1.88-1.95 billion. This document was generated for
Store TrackerWeekly US and UK Store Openings and Closures Tracker 2019, Week 32: Walgreens to Shutter More Stores Coresight Research August 9, 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 7,673 store closures and 3,118 store openings. This compares to 5,864 closures and 3,258 openings for the full year 2018. Year to date, UK retailers have announced 414 store closures and 549 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
Company Earnings UpdateUnicharm (TYO: 8113) 2Q19 Results: Net Sales Ahead of Consensus, Asia Remains a Growth Engine Coresight Research August 9, 2019 Executive Summary Unicharm reported 2Q19 net sales of ¥173.9 billion, ahead of the consensus estimate of ¥173.5 billion and up 5.5% from 2Q18. Net sales increased for both the personal care and pet care segments, with pet care up 8.0% year over year. Asia (ex Japan) was a key region driving the company’s top-line growth, with 13.2% net sales growth in 2Q19. This document was generated for
Insight ReportSupply Chain Briefing: Robotic Process Automation Brings Productivity and Precision to the Supply Chain Coresight Research August 8, 2019 Executive SummaryIn our weekly Supply Chain Briefing series, we discuss how technology is transforming the various stages of the retail supply chain, including product design, demand forecasting, manufacturing, logistics, warehousing, last-mile delivery and sales. This report discusses robotic process automation, a technology that can help companies boost productivity and lower costs while reducing human error. Robotic process automation can improve the supply chain through lower costs, by reducing human error and improving productivity. Consumer goods and retail companies are tapping into the technology: The global market for robotic process automation could be worth $3.97 billion by 2025, according to research firm Grand View Research. 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
