Analyst CornerWeinswig’s Weekly June 22, 2018 Coresight Research June 22, 2018 Executive SummaryJune 22, 2018 This week’s note “From the Desk of Deborah Weinswig” discusses Amazon’s relatively recent move into the plus-size women’s apparel market. According to Reuters, Microsoft is now working on tech that would allow retailers to build checkout-free stores, but instead of installing the technology in its own stores, the company is reportedly in talks about a potential partnership with Walmart to build Amazon Go–like checkout-free stores. UK-based Trouva, a curated online marketplace for brick-and-mortar boutiques, has launched in Berlin. Trouva’s platform enables small, independent, offline boutique retailers to sell online. Google agreed to a strategic partnership with e-commerce firm JD.com through which Google will purchase $550 million worth of shares in the Chinese firm. The companies said that they would “collaborate on a range of strategic initiatives, including joint development of retail solutions” in Europe, the US and Southeast Asia. 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
Store TrackerWeekly Store Openings and Closures Tracker 2018, Week 25: Safeway to Close Two Stores Coresight Research June 22, 2018 Executive SummaryCoresight Research tracks store closures, openings and bankruptcies for a select group of retailers in the US and the UK. Our Weekly Store Tracker focuses on department stores and specialty retail stores, including, but not limited to, those selling softlines, hardlines, consumer electronics, groceries and furniture. Click here to view our full collection of Weekly US and UK Store Trackers. Highlights from this week’s Store Tracker: Year-to-date 2018, the number of US store closure announcements stands at 4,136 and the number of store openings is 1,885. Safeway plans to close two stores by the end of July.. Google announced it will invest $550 million in JD.com to explore retail opportunities in Southeast Asia, the US and Europe. Year to date in the UK, there have been 895 store closure announcements and 622 store opening announcements. Habitat will open two new standalone stores in the UK. 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 UpdateKroger (KR) 1Q18 Results: Beats on EPS and Revenue, Raises Outlook Coresight Research June 22, 2018 Executive Summary Kroger reported 1Q18 adjusted EPS of $0.73, up from $0.58 in the year-ago period and above the $0.63 consensus estimate. Revenues were $37.5 billion, up 3.4% year over year and above the $37.3 billion consensus estimate. Same-store sales excluding fuel were up 1.4%, below the 1.5% consensus estimate and inline with company guidance. The company raised its FY18 EPS guidance range to$2.00–$2.15from $1.95–$2.15 previously. The consensus estimate calls for full-year EPS of $2.07. The company expects full-year same-store sales growth of 2%–2.5%,versus previous guidance of 1.5%–2%. 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 CoverageCES Asia Part 2: Hearing about Ever-Smarter Smart-Home Devices Coresight Research June 22, 2018 Executive Summary The Coresight Research team attended Asia’s fastest-growing consumer technology event CES Asia 2018 in Shanghai. This year’s event attracted over 500 global exhibitors, more than 40,000 attendees and over 1,200 media. This is the second of two reports on our key takeaways from the event. Smart cars were not the only technology advancement to take center stage at CES Asia 2018; smart speakers and “smart living” appliances powered by the Internet of Things (IoT) also had their share of the spotlight.The Chinese tech heavyweights—Alibaba, Baidu and JD.com—all showcased their versions of smart speakers to rival Amazon Echo. Alibaba announced its Tmall Genie AI Union initiative to connect its smart speaker to small home appliances. Haier demonstrated its smart-home solutionsfor the living room, kitchen, bedroom and bathroom, while Hisense showcased the first artificial intelligence (AI)TV with its World Cup AI Platform. 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 Decline of the UK Department Store – and Struggles in Germany, Too Coresight Research June 21, 2018 Executive SummaryIn the UK, major midmarket department stores are undertaking store closure programs to address underperformance—and Germany’s department-store market leader is seeing sales declines deepen, too. On May 22, Marks & Spencer (M&S) announced plans to accelerate its closure program, which involves shuttering more than 100 of its Clothing and Home stores by 2022. On June 6, privately-owned House of Fraser announced plans for a company voluntary arrangement (CVA) that proposes 31 store closures—more than half of its current 59 stores in the UK and Ireland. On June 19, Debenhams issued its third profit warning of 2018. It, too, is closing stores. On June 5, Hudson’s Bay Company(HBC) reported a 6.6% slump in comparable sales at Germany’s Galeria Kaufhof. 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 CoverageLondon Tech Week 2018: Profiling 13 Retail-Tech Startups Coresight Research June 20, 2018 Executive SummaryThe Coresight Research team attended London Tech Week 2018 held June 11–17.We attended two retail-tech startup pitches during the week: Tech London Advocates’ Retail Tech 50 at startup incubator Cocoon Networks and Project Kairos London’s Retail TechPitch at trade show TechXLR8. Here, we profile 13 of the retail-tech startups we met. Tech London Advocates’ Retail Tech 50 showcased five London-based retail-tech startups: self-checkout technology MishiPay, physical store-monitoring platform Third Eye, mobile shopping app developing platform PoQ, retail and hospitality staff app Yapster and omnichannel commerce platform Mercaux. Project Kairos’ event introduced eight retail-tech startups including augmented reality (AR) company Digital Pop-Ups, self-checkout platform Planckly, e-commerce cybersecurity firm Prodaft and fresh-food automated sales kiosk Servo Kiosk. Many of the companies that we saw during London Tech Week 2018 collaborate with leading retailers. MishiPay’s technology is used by French home improvement retailer Leroy Marlin and German electronics retailer Saturn, while PoQ’s clients include pure-play retailers Missguided, Made.com and PrettyLittleThings. 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 DiveChinese Demand for Cross-Border E-Commerce Booms but Looming Tax Reforms are a Cloud on the Horizon Coresight Research June 20, 2018 Executive SummaryChinese shoppers’ appetite for imported products continues to grow apace. We review the current state of the cross-border e-commerce market, note the factors supporting demand and look at forthcoming tax changes that will impact cross-border sales. E-commerce imports into China more than doubled in 2017, according to the country’s customs authority, the General Administration of Customs. Consumer packaged goods (CPG) categories such as food, baby products and beauty products consistently top the rankings of what Chinese shoppers buy from international sellers online. The Chinese government has repeatedly delayed implementing tax changes that would make cross-border shopping less favorable to consumers. However, these changes, now slated for the end of 2018, could soften growth in cross-border e-commerce sales slightly in 2019. Despite this potential cloud on the horizon, we see sustained opportunities for Western retailers to cater to Chinese demand for trusted brands in certain CPG categories. We believe the underlying drivers of cross-border e-commerce remain solid. Chinese consumers will continue to seek out trusted brands and retailers as a guarantee of authenticity, particularly in CPG categories, and rising incomes mean that more and more Chinese consumers are being pulled into the catchment for cross-border e-commerce purchases each 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 ReportCase Study: Moroccanoil—Using Influencers, Exotic Appeal and Gift Packages to Grow Its China Cross-Border Revenue Coresight Research June 19, 2018 Executive SummaryCoresight Research interviewed Moroccanoil CEO JuE Wong in May 2018 to learn about the company’s experience selling its oil-infused, natural beauty products to consumers in China. Moroccanoil is a $62.6 million company based in Los Angeles, California, that sells hair and skincare products such as shampoos, lotions, cleansing bars and conditioners. The company began selling in China in 2014. Wong, who joined the company in October 2017, shared insights and lessons for foreign businesses seeking to sell in China. Moroccanoil generated brand sales of $15 million during the 2016 11.11 Global Shopping Festival. Alibaba hosts the annual 24-hour online shopping event in China every November 11 (“Singles’ Day” or “11.11”). In 2017, Moroccanoil’s brand sales reached $34 million during the festival. This year, the company is looking to generate 11.11 shopping festival revenues of $102 million, triple its 2017 total. The company uses gift packages and promotional kits during the festival to drive the value of its hero products. Shoppers who purchase these items receive other products and, so, perceive the hero product to be free. Moroccanoil uses key opinion leaders (KOLs, also known as brand influencers) to advocate for the brand’s exotic appeal. CEO JuE Wong recommends that companies find KOLs who truly love their products and brand and who share the same values as the brand. Wong recommends that brands seeking to do business in China work with a local social media partner that understands the Chinese consumer’s psyche in order to gain information that will help them make better decisions about content and delivery. 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 ReportUS-China Tariff Update: Dispute Escalates, but Imports of Consumer Goods to the US Remain Unaffected Coresight Research June 19, 2018 Executive Summary The US is imposing tariffs of 25% on hundreds of categories of goods imported from China. The tariffs are to take effect on July 6 on $34 billion worth of imports. The US tariffs focus on “industrially significant technologies” rather than on consumer goods. US plans to impose tariffs on a further $16 billion of Chinese imports will go out for public consultation. Passenger cars will be the biggest category of imports to which the new tariffs will apply. China has responded by slapping 25% tariffs on $34 billion of imports from the US. 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 ReportMay 2018 US Same-Store Sales Coresight Research June 19, 2018 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 May US Same-Store Sales report: Same-store sales for Costco saw an acceleration in May versus the same period last year. Cato, Buckle and L Brands all reported positive May comps, which also accelerated versus the same period last year. Mass-merchant Costco saw comps increase by 11.7% year over year in May versus the 7.7% consensus estimate. Hardlines were up by the low to mid-teens year over year, better-performing departments were majors, garden, office and sporting goods. L Brands reported a 5.0% comps increase overall in May, while Victoria’s Secret’s comps were up 2.0% and Bath & Body Works’ were up 10.0%. 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 CoverageCoresight Research and Alvanon Cohost Trailblazers 2018 Event – One Size Does Not Fit All: Inclusive Design & the Modern Consumer Coresight Research June 19, 2018 Executive SummaryCoresight Research and Alvanon, a global apparel and product development consultancy, cohosted a Trailblazers event called One Size Does Not Fit All: Inclusive Design & the Modern Consumer on June 14 in New York City. More than 300 C-suite retail executives, entrepreneurs, designers, creators and other business leaders attended the invitation-only event. The presentations focused on the theme of inclusive and adaptive design and how it is revolutionizing the way we think about fashion consumers. Participants included executives from Alvanon, Avery Dennison, Cole Haan, Coresight Research, Ffora, GGP, Global Brands Group, Gwynnie Bee, Li & Fung, MagnaReady and Universal Standard. The event concluded with the Trailblazers14 startup pitch competition, where 14 innovative, early-stage companies presented their solutions for various points across the retail value chain. 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 CoverageLondon Tech Week 2018: The Customer Value that Tech Delivers Is What Matters Coresight Research June 19, 2018 Executive SummaryThe Coresight Research team attended London Tech Week 2018 held June 11–17. In this report, we feature our key takeaways from the various events we attended. A follow-up report will focus on some of the notable startups we met during the week. Virtual Reality (VR) can make brick-and-mortar a key component of shoppers’ multichannel experience: Travel agent TUI talked about how it has adopted VR technology to offer a better shopping experience to its customers. Retailers should use augmented reality (AR) to stand out to make the store visit more memorable: Creative agency Swift Creatives discussed how storytelling needs to be a key goal for retailers adopting AR in-store. Brick-and-mortar retailers are best positioned to become the go-to place for smart-home technology: Electronics retailer Dixon Carphone showed how its physical store presence helps to educate customers and help with the promotion of smart-home devices. Internet of Things (IoT) helps retail and logistics operations deliver customer value: Telecoms company Vodafone showed how IoT is empowering retail to deliver more value to customers. 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 ReportRETAIL-TECH LANDSCAPE CHINA Coresight Research June 19, 2018 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 DiveSlicing and Dicing Amazon’s Private-Label Offering Coresight Research June 18, 2018 Executive SummaryIn this report, we take an exclusive deep dive into Amazon’s US private-label offering, using a detailed, proprietary dataset collating information on nearly 7,000 such products. Apparel dominates Amazon’s US private-label offering: there are almost 5,000 private-label products across men’s, women’s and children’s clothing and footwear, equivalent to almost three-quarters of all its 6,825 private-label products. Moreover, some 66 of Amazon’s 74 private labels offer apparel. Home and kitchen is the second-biggest category by number of products, with 852 products spanning specialized private label-brands Pinzon by Amazon, Rivet and Stone & Beam, as well as the multicategory AmazonBasics brand. We conclude that Amazon is building a highly-segmented private-label fashion offering. This segmented approach is reflected in its large number of brands, range of price points and presence across clothing and footwear subcategories. It is most clearly evident in the often-limited number of products within each apparel private label: Amazon is creating brands designed to resonate with a specific consumer segment or focus on a specific apparel subcategory. 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 ReportTesco (LSE: TSCO) 1Q19 Update: UK Growth Softens, Booker Drives Group Acceleration Coresight Research June 18, 2018 Executive Summary Tesco reported a 2.1% increase in comparable sales in its core UK market in 1Q19, a slight slowdown from prior quarters. Supported by very strong underlying growth at Booker, which was integrated in the quarter, Tesco reported group comp growth of 1.8% in 1Q19, up sharply from prior quarters. 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
