Analyst CornerWeinswig’s Weekly January 25, 2019 Coresight Research January 25, 2019 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses three ways China will lead digital retail trends in 2019 and why these trends are likely to drive consolidation among major e-commerce platforms. Luxury jeweler Tiffany and Co. tempered its yearly profit forecast on Jan. 18 following an unexpected drop in holiday sales. The company attributed the decline to lower global spending by Chinese tourists due to a stronger dollar and to softer demand in Europe and the U.S. British retailer Marks & Spencer Group PLC has launched an online search feature called Style Finder that enables customers to search for a product on their mobile device with an image of the product rather than by typing in text. E-commerce giant Mercado Libre Inc. announced it will introduce QR code payments in Chile this year. The service will be available in partner stores beginning in the first quarter of the year. This document was generated for
Company Earnings UpdateBurberry (LSE: BRBY) 3Q19 Update: Limited Edition Products Drive Excitement and Sales Coresight Research January 24, 2019 Executive Summary Burberry reported a 1.1% retail revenue decline for 3Q19. Comps rose 1%, driven by mid-single digit comps in mainland China and Korea. The company closed a net two stores, eliminating 1% of its retail space. As Burberry executes its multi-year transformation and repositioning strategy, it is making traction with limited edition Riccardo Tisci products sold predominately via social media. B Series, monthly drops of Riccardo Tisci products, underpin improvements on social media. Burberry’s reach (or number of followers) on WeChat expanded 50%. This document was generated for
Company Earnings UpdateAhold Delhaize (ENXTAM: AD) 4Q18 and FY18 Update: Strong Performance Prompts Narrowing of Guidance Coresight Research January 24, 2019 Executive Summary In 4Q18, Ahold Delhaize reported net sales of €16.5 billion, up 3.0% at constant exchange rates, roughly in line with the consensus of €16.48 billion recorded by StreetAccount. The Netherlands posted comparable sales growth of 3.3%, while the U.S. grew comparable sales by 2.7%. Ahold Delhaize reported FY18 revenues of €62.8 billion, up 2.5% year over year on a constant-currency basis. The company expects FY18 EPS to be at the upper end of its guidance range, driven by its strong fourth quarter performance. This document was generated for
Company Earnings UpdateOmnichannel Is Key: Takeaways from Retail’s Cutting Edge Conference at StartMeUpHK Festival 2019 Coresight Research January 24, 2019 Executive SummaryThe Coresight Research team attended the Retail’s Cutting Edge conference, part of the StartmeupHK Festival 2019, a platform for startups, entrepreneurs, investors, industry leaders, students and academics to exchange ideas and make connections. The conference was part of an initiative launched by InvestHK, a government body charged with promoting Hong Kong as a location for international businesses. The event focused on retail topics from omnichannel strategies to sustainability. These are some of the key takeaways from the event. Fung Retailing Group is leveraging its recent strategic partnership with Alibaba to expand its offering in helping companies enter the China market. Brick-and-mortar stores are not dead, with positive in-store experiences raising brand visibility and supporting online sales. Alibaba’s Freshippo supermarkets (formerly known as Hema) showcased “retail of the future,” powered by technology and unconventional store formats. Nonprofit organizations such as H&M Foundation are gaining traction in advising brands on sustainability. This document was generated for
Flash ReportJD.com Takes Flight in Indonesia with Drone Delivery Trial Coresight Research January 24, 2019 Executive Summary JD.com has announced that it completed its first drone delivery trial in Indonesia. Indonesia is a huge market but its logistics and transportation infrastructure is underdeveloped, so drones may provide a way to more easily reach customers. The stage is set for a battle of the digital titans as Alibaba and JD.com compete to dominate in logistics in Southeast Asia. This document was generated for
Deep DiveDownload test Coresight Research January 24, 2019 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 CoverageAI Creates Smarter Living: Takeaways from the TechLIFEStyle Conference in Hong Kong Coresight Research January 23, 2019 Executive SummaryOn January 22, 2019, the Coresight Research team attended TechLIFEStyle conference, part of the StartmeupHK Festival 2019, a platform for startups, entrepreneurs, investors, industry leaders, students and academics to exchange ideas, make connections and chart a course for the future initiated launched by InvestHK, the HK government’s arm to promote Hong Kong as a location for international businesses. The theme of the event was “living smarter, living better,” looking at how lifestyle tech can be intertwined into everyday life. Hong Kong offers a number of advantages for startups, with convenient access to mainland China and hosting to talent from around Asia – and around the world. AI enables smart living in many different ways, in areas as diverse as retail and urban management. Companies look to technology innovation to help them better serve customers. Ant Financial aims to digitize finance for China, then the world. This document was generated for
Company Earnings UpdateCarrefour (ENXTPA: CA) 4Q18 Update: Latin America Picks Up the Slack as France Is Hit by Disruption Coresight Research January 23, 2019 Executive Summary Carrefour reported a solid quarter, with group comparable sales up 1.9%, ahead of consensus. Growth was driven by Latin America, where comparable sales were up 12.9%. France was weak, with comp growth of 0.1%; management said that its hypermarkets took a hit from protests in France. Management reported progress toward the company’s Carrefour 2022 targets on a number of fronts. This document was generated for
Insight ReportChinese New Year Preview: Year of the Pig Celebrations to be Worth ¥1 Trillion to Retail as Digital Gifting and Traveling Continue to Go Big Coresight Research January 22, 2019 Executive SummarySpring Festival, or the “Chinese New Year,” is a major spending period in China. In 2018, Chinese consumers spent ¥926 billion ($146 billion) shopping and dining out during the week-long holiday period, an increase of 10.2% compared to the 2017 holiday season, according to Ministry of Commerce statistics. These are our predictions for the Lunar New Year starting February 5, 2019 — the year of the pig: We expect total New Year Golden Week retail and food-service sales to reach approximately ¥1 trillion this year, up by around 8%. Spring Festival retail sales have risen steadily for more than a decade, but we see a slowing pace of growth in line with China’s slower pace of economic growth and mild economic uncertainty. Companies are already ramping up promotions on e-commerce platforms. Box office receipts will continue to grow. Digital gifting continues to go big. Traditions are shifting: more Chinese are opting to spend what was once one of the most important family holidays on the road, heading to domestic and international vacation spots. 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 WeekWhere do U.S. adults shop most often for skin care and cosmetic products? Coresight Research January 21, 2019 QUESTION OF THE WEEK: Where do U.S. adults shop most often for skin care and cosmetic products? This document was generated for
Company Earnings UpdateVF Corp (VFC) 3Q19 Results: Raises Guidance as Active Segment Propels Gains Coresight Research January 21, 2019 Executive Summary VF Corp’s Active segment led fiscal 3Q19 sales growth with a 16% year-over-year increase, including a 25% increase at Vans. The North Face revenues grew 14%, driving an 11% gain in the Outdoor segment. The Active segment drove operating margin expansion, with a 270-basis-pointsegment operating margin improvement, to 23.9%. Adjusted EPS of $1.31 rose 29.7%, beating the $1.10 consensus estimate. This document was generated for
Insight ReportUK Holiday 2018 Retail Sales and Trading Wrap-Up: December Growth Slows as Uncertainty Accelerates Structural Shift Away from the Midmarket Coresight Research January 21, 2019 Executive SummaryWe review December retail sales and major retailers’ trading updates for the U.K. Total retail growth slowed sharply in December, according to the Office for National Statistics (ONS). December retail sales increased 2.1% year over year, versus 4.2% year-over-year growth in November. Across the November and December holiday period, total sales were up 3.0% year over year. In December, the grocery sector reported very weak growth and the department stores/mixed goods sector turned negative. However, clothing stores reported solid year-over-year growth of 2.7%. Across November and December, online retail sales accounted for 20.6% of all U.K. retail sales and 30% of all nonfood retail sales. Retailers that focused on value tended to outperform: Tesco and Boohoo Group beat consensus while Primark claimed to have outperformed the U.K. apparel market. Consumer uncertainty appeared to fuel an acceleration in the structural shift to discount and online retailers. As a result, we saw mid-market difficulties continue, notably at Marks & Spencer and Debenhams. 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
Deep DiveUS Digital Payments Take Off, with Unexpected Winners and Losers Coresight Research January 18, 2019 Executive SummaryIn this report, we look at digital payments in the U.S., what‘s done well and not so well — and what consumer preferences tell us about the future of digital payments in the U.S. Digital payments are growing quickly as consumers embrace noncash methods. Digital commerce payments are expected to grow to over $1 trillion by 2022 – a CAGR of 14.8%, while proximity mobile payments are expected to grow 31.6% a year to $365.5 billion. Old-fashioned credit and debit cards remain popular, with purchase volumes increasing more quickly than account growth. Contactless cards have so far not been popular among U.S. consumers. The global mobile wallet market was worth $594.00 billion in 2016, and is expected to grow at a CAGR of 32% between 2017 and 2022, hitting over $3 trillion. 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 DiveAldi and Lidl in the US: Aldi Climbs the Grocery Rankings Coresight Research January 18, 2019 Executive SummarySupported by data on store locations and findings from consumer surveys, we take a deep dive into Aldi and Lidl in the U.S. market. Aldi is America’s eighth-biggest grocery retailer by estimated 2018 revenues, according to Euromonitor International. It has grown revenues by an estimated CAGR of 12.7% over the past five years. If Aldi maintained its five-year revenue CAGR and its bigger rivals did likewise with their respective average growth rates, Aldi would climb to seventh place in grocery in 2019 and sixth in 2022. Survey data shows that Aldi is the country’s second-most-shopped grocery retailer, by the number of consumers that have shopped there in the past 90 days. Almost one-quarter of U.S. consumers have shopped for groceries at Aldi in a 90-day period, rising to 40% in the Midwest. After a shaky start in the U.S. market, Lidl has diversified into a range of store formats. Lidl is continuing to open stores at a steady pace, and its recent acquisition of the 27-strong Best Market Chain suggests a renewed impetus to grow its footprint in the U.S. Given Aldi’s success, we see few reasons why Lidl should not capture meaningful share over the long term. We see discount formats and Amazon as potential twin pressures on midmarket legacy grocery retailers in the coming 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
Event CoverageLuxury FirstLook 2019—Digital Acceleration: Key Takeaways Coresight Research January 18, 2019 Executive SummaryCoresight Research attended Luxury Daily’s Luxury FirstLook 2019: Digital Acceleration conference in New York. The event was packed with senior executives from luxury brands, retailers, agencies, publishers and service providers. We were there to discuss digital acceleration, but most in the room agreed luxury companies are still in the early stages of adopting cutting-edge technology tools – not keeping up with their more digitally savvy clientele. These are our key takeaways from the one-day event: Casualization will continue to spread as the new normal, especially in the workplace. Asian youth will drive luxury growth and be responsible for the majority of luxury consumption within the next three to five years. Social and ethical issues will continue to grow in importance The competition may be a nonluxury brand This document was generated for
