Event CoverageTech. 2018, Part 2: Hearing from Starbucks and Birchbox on Driving Digital Sales Coresight Research September 14, 2018 Executive SummaryThis week, the Coresight Research team attended the Tech. 2018 conference in London, which is produced by Retail Week and the World Retail Congress. Here are our takeaways from the second and final day of the event: Starbucks leverages data from its rewards program and mobile app to offer more targeted promotions via the app. Tech vendors can provide more than just software and technology to retailers; they can act as valuable advisors, too. Beauty-box services, such as those offered by Birchbox, can break shoppers out of their routines and prompt them to spend more on beauty products. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Company Earnings UpdateKroger (KR) 2Q18 Results: Earnings Beat, Misses on Revenue Coresight Research September 14, 2018 Executive Summary Kroger reported 2Q18 revenues of $27.9 billion, up 1.0% year over year and slightly below the consensus estimate of $28.0 billion. Adjusted EPS was $0.41, up 5.1% year over year, beating the consensus estimates of $0.38. The company reported a gross margin of 21.3%, 36 basis points down year over year. Kroger guided its 2018 sales growth, excluding fuel, in the range 2.0%-5% in 2018. On an adjusted basis, the EPS guidance was in the range of $2.00-$2.15. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Analyst CornerWeinswig’s Weekly Sep 14, 2018 Coresight Research September 14, 2018 Executive SummarySeptember 14, 2018 This week’s note “From the Desk of Deborah Weinswig” discusses the prospects for US retail as we head into the fourth quarter. Amazon will be the No. 1 seller of apparel in the US in 2018, according to Wells Fargo. The e-commerce behemoth’s apparel and footwear gross sales are expected to top $30 billion this year. HBC and Signa, the respective owners of German department store chains Galeria Kaufhof and Karstadt, announced that they have agreed to merge the two chains. On September 10, 2019, Alibaba CEO Daniel Zhang will replace Group Executive Chairman and cofounder Jack Ma as chairman of the Alibaba board. Ma will continue to serve as a member of the board until the company’s annual general meeting in 2020. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Insight ReportCoresight Research Countdown to 11.11 Series, #8: 9.9 Mega Sale; Moët Hennessy and Alibaba to Explore ‘New Retail’ Opportunities Coresight Research September 13, 2018 Executive SummaryAlibaba’s 11.11 Global Shopping Festival, also known as Double 11 or Singles’ Day, takes place on November 11 every year and it has now become the world’s biggest 24-hour online sale. This report series covers the various shopping festivals and developments in New Retail that have already happened or will take place till this event. Alibaba’s most recent shopping event was 9.9 Mega Sale held September 9–10. During the promotion period, US supermarket chain Kroger offered customers a variety of products in healthcare, personal care, and mother-and-child care categories, along with cold pressed oil and nuts. During this sales period, Kroger offered various vouchers that encouraged customers to shop more. For instance, customers could get ¥20 off on orders above ¥119. Kroger also offered tax–free shopping and free delivery. LVMH-owned wine and spirits specialist Moët Hennessy and Alibaba are exploring opportunities in New Retail. Moët Hennessy will leverage Alibaba’s ecosystem and sell products across Alibaba’s retail platforms: Tmall, Tmall’s Luxury Pavilion and Hema supermarkets. 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 CoverageAlibaba Hosts 2nd NYFW Tmall China Day: Three Women Runway Designers Selected to Represent the Contemporary Chinese Shopper Coresight Research September 13, 2018 Executive SummaryThis week, Alibaba hosted its second series of New York Fashion Week (NYFW) Tmall China Day events in collaboration with the Council of Fashion Designers of America (CFDA) that was held September 9-11. Three leading brands, Particle Fever, JNBY, and Angel Chen, presented their collections on the runway at this event. Tmall China Day also included a pop-up market at Opening Ceremony, a retailer, which included products from six Chinese labels that represented “China cool,” the phenomenon of Chinese brands gaining popularity with millennials who want authentic and hip designs that integrate Chinese cultural elements. Three leading Chinese designers presented their runway collections at NYFW China Day this year. These designers cater to contemporary Chinese consumers. Tmall Fashion has launched an initiative to empower 100 local designers. The goal is for the selected designers to generate over RMB 10 billion in combined sales by 2020. Shoppers in China can use see-now-buy-now technology to purchase China Day NYFW runway items beginning September 13, 2018. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Event CoverageTech. 2018, Part 1: Technology Is Breaking Down the Barriers to Selling Beauty and Enabling Closer Ties Between Apparel Brands and Suppliers Coresight Research September 13, 2018 Executive SummaryThis week, the Coresight Research team is attending the Tech. 2018 conference in London, which is produced by Retail Week and the World Retail Congress. Our takeaways from day one of the event include: Germany’s biggest electronics retailer, MediaMarktSaturn, was late to e-commerce and is now determined to be an early adopter of technologies such as artificial intelligence (AI)-powered robots, augmented reality (AR) and virtual reality (VR). Beauty giant Coty is using AI in a number of ways to break down the barriers to selling fragrance and cosmetics products online. It is becoming increasingly important for brands and retailers to work closely with their suppliers to deliver faster speed to market and to source effectively. Local manufacturing is becoming more of a reality thanks to robotics, 3D modelers and automation. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Company Earnings UpdateInditex (BME: ITX) 1H18 Results: Strong Organic Growth, Flattish Margins Coresight Research September 13, 2018 Executive Summary Inditex reported 1H18 revenues of €12.03 billion, up 3.0% year over year and below the consensus estimate of €12.06 billion. Sales grew by 8.0% at constant currency. The operating margin contracted marginally, by 10 basis points, due to an increase in SG&A expenses. By concept, sales under the Pull&Bear and Oysho brands grew the strongest, by 11.2% and 7.0%, respectively. Inditex expects its 2H18 same store sales growth to be in the range 4%–6%. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Company Earnings UpdateHudson’s Bay Company (HBC) 2Q18 Results: A Retrenchment to North America Helps Soften Comp Decline Coresight Research September 13, 2018 Executive Summary HBC reported fiscal 2Q18 revenues of C$2,160 million, down 2.0% year over year. Adjusted EPS was $0.53, lower than the consensus estimate of $0.57 and even with the year-ago quarter. Total comparable sales declined by 0.4%. The company did not offer 2Q18 or full year guidance, nor did the company offer guidance on its 1Q call. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Deep DiveThe Final Hurdle – Innovation in Last-Mile Logistics Coresight Research September 12, 2018 Executive SummaryThis report covers innovation in last-mile logistics, a key component of the supply chain that presents unique challenges and exciting opportunities for improvement. The report covers three components of last-mile logistics: transportation, delivery and reverse logistics. Last-mile logistics costs accounted for an estimated 53% of overall delivery costs in 2016. Adding further complexity and congestion to the matter is the steady increase in delivery volumes, up by approximately 38% in the period 2012–2017. Facing high costs, large delivery volumes, shifting consumer expectations and increased competition, numerous parties are investing heavily in last-mile innovation. Big retailers and logistics providers have made recent acquisitions and are developing new technologies and models in-house, while startups are also entering the space. Regulatory restrictions and other challenges present significant hurdles for some of these new technologies, including delivery robots and drones. Although the vehicles themselves are being developed quickly, issues such as air traffic control and malicious interference may prevent or significantly delay scaled use of these devices for last-mile delivery. Advances in smart lock technology have enabled in-home delivery, but consumers are skeptical about the solution, citing concerns including theft and privacy. Secure lockers have popped up as an alternative delivery model, offering convenience to customers and addressing package volume issues for residential and office property managers. Retailers are also experimenting with solutions to ease and limit returns. Free returns are increasingly expected by consumers, and the offering is important to drive purchasing. However, incentives and promotions may be used to reduce the number of free returns, especially when combined with artificial intelligence (AI) solutions that can predict likely returns. 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 UpdatePrimark (LSE: ABF) FY18 Pre-Close Trading Update: Increased Selling Space Drives Sales Growth Coresight Research September 11, 2018 Executive Summary Primark’s parent, Associated British Foods (ABF), reported its FY18 pre-close trading update on September 10. This report focuses on results for Primark, the company’s retail division. Primark guided its FY18 sales to grow 5.5% year over year on a constant currency basis, driven by an increase in selling space, offset by a 2% decline in same-store sales. The company expects its operating margin for FY18 to be 11%, well ahead of the 9.8% reported in 1H18 and last year’s margin of 10.4%, led by favorable exchange rate movement. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Deep DiveIndian E-Commerce Platforms Update Coresight Research September 11, 2018 Executive SummaryThis report discusses major e-commerce platforms in India that have contributed to the e-commerce ecosystem. We identify the following five retailers as the largest platforms in Indian e-commerce by funding received: Flipkart, Snapdeal, Paytm, Quikr and Bigbasket. The Indian e-commerce market is expected to grow to $47 billion in 2018 and to reach $200 billion by 2026. On May 9, 2018, Walmart announced its acquisition of a 77% stake in Flipkart. The e-commerce market in India is dominated by marketplace platforms, and among the specialists, fashion pure plays take the lead. The fashion e-commerce market in India is expected to grow to $30 billion by 2020. The draft e-commerce policy unveiled on July 30 this year might negatively impact the foreign stakeholders in Indian e-commerce if implemented with the proposed changes. 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 ReportChina’s Silver Economy: Digitally Savvy Seniors Are Making a Difference Coresight Research September 10, 2018 Executive SummaryChina’s population is aging and an increasing number of these senior citizens are shopping digitally. It is believed that the digital competence level of Chinese seniors continues to rise, boosting the silver economy. According to China’s National Health and Family Planning Commission, the population aged 60 and above in China is expected to surpass 255 million by 2020, accounting for 18% of the total population. The number of “netizens”—people who use the Internet and participate in Internet activities—aged 50 and above totaled 80 million, representing 10% of all Internet users, per a 2017 study by China Internet Network Information Center (CINIC). Tech companies are implementing ways to provide a more digitally-friendly experience for Chinese seniors. For example, Alibaba launched an elderly-friendly Taobao app in January this 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
Company Earnings UpdateFive Below (FIVE) 2Q18 Results: Beats Estimates and Raises Guidance Coresight Research September 10, 2018 Executive Summary Five Below, Inc. reported 2Q18 EPS of $0.45, up 47.4% year over year and beating the $0.42 consensus estimate. This figure includes a $0.03 benefit from share-based payments. Revenues were $347.7 million, up 22.7% year over year and beating the $334.8 consensus estimate. Comps increased 2.7%, beating the consensus estimate of up 0.1%. The company raised full-year EPS guidance to $2.51–$2.57 from $2.42–$2.48, revenue guidance to $1.528—$1.540 billion from $1.502–$1.517 billion and comp guidance to +2.5%–3.0% from +1%–2% previously. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Event CoverageA Natural and Organic Asia: Takeaways from Natural & Organic Products Asia (NOPA) Exhibition Coresight Research September 10, 2018 Executive Summary The Coresight Research team attended the Natural and Organic Products Asia (NOPA) exhibition held August 29–31 in Hong Kong. According to the US Organic Trade Associations’ Global Organic Trade Guide, Asia’s organic products market is growing rapidly and is expected to increase at a minimum rate of 10% every year until 2020. Asian consumers are increasingly willing to purchase clean labels and natural beauty products. China and Hong Kong present great market potential for natural and organic food and beauty products. More Asian consumers will go natural and organic, and we expect the wholesome products’ market to continue expanding. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Insight ReportNew Swimwear Brand Alyned Together Launches Inclusive, Sustainable and Affordable Collection Coresight Research September 10, 2018 Executive SummaryThis summer, Alyned Together launched its first collection, an inclusive, eco-friendly swimwear line with a consumer-friendly price point. The contemporary lifestyle brand promotes environmental activism and body positivity and is one of the first swimwear brands that seeks to incorporate inclusivity and sustainability. Alyned Together’s first swimwear collection focuses on universal styling and price points for customers of all sizes, from XS to 3X. The company’s goal is to bring quality and luxury to all for less, while giving back to the environment. The brand uses recycled polyester as the collection’s main fabric.The material is generated from plastic waste collected on shore, and product packaging is made from compostable poly bags. The team is developing its next collection by incorporating consumer insights and using 3D technology, with the aim of reducing sampling and overall fabric waste by 50%. 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
