Flash ReportAlbertsons Companies to Acquire the Remainder of Rite Aid for a Combined Value of $24 Billion Coresight Research February 21, 2018 Executive Summary Albertsons and Rite Aid announced a definitive merger agreement under which privately held Albertsons will merge with publicly traded Rite Aid. Rite Aid and Albertsons have a combined value of around $24 billion, including debt, according to the companies. Rite Aid comprises thousands of drugstores and a benefits management company with millions of members and is in the process of selling a chunk of its stores to Walgreens. The transaction would create a company with $83 billion in revenue and enable Albertsons to go public after more than a decade of private equity ownership. The merger is expected to close early in the second half of calendar year 2018, subject to shareholder approval and other approvals. 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 ReportDynamic Pricing: Hard to Compete with AI on Pricing Coresight Research February 20, 2018 Executive SummaryDynamic pricing—also referred to as real-time or demand pricing—is an approach used by retailers to set flexible prices for products based on current market demand. In other words, to formulate optimal prices to maximize sales and margins. Advancements in digital technology are enabling retailers’ dynamic pricing strategies to become increasingly accurate and effective. Digital technology can be used to gather and analyze data that influence prices and to formulate optimal pricing according to the circumstances. Optimal prices are calculated by complicated algorithms that consider factors such as consumer behavior, seasonality and competing retailers’ activity. Amazon’s use of dynamic pricing is one of the main examples of its application in retail. In order to offer competitive prices at all times, Amazon constantly scans competitors’ prices and price levels set by third-party retailers on Amazon Marketplace to inform its own pricing. 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 UpdateAvon Products (AVP) 4Q17 Results: Flat Revenues, Big EPS Beat from Cost Cuts Coresight Research February 19, 2018 Executive Summary Avon Products reported 4Q17 adjusted EPS of $0.12, beating the $0.07 consensus estimate and compared with $0.01 in the year-ago quarter. Revenues were $1.57 billion, below consensus of $1.60 billion and flat year over year. The company realized more than $250 million of cost savings under its 2016 Transformation Plan, exceeding its cost savings target of $230 million for 2017. The company is maintaining its long-term goals of achieving mid-single-digit constant-dollar revenue growth and a low-double-digit operating margin, which will take some time. 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 February 16, 2018 Coresight Research February 16, 2018 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses retailers’ tightening of previously generous return policies due to changing consumer behavior and an increase in fraudulent activity. US retail gasoline prices moved lower for the first time this year, following broader markets and sector metrics, with a national average retail price of $2.57 per gallon, 3 cents lower than last week. Britain’s biggest supermarket chain, Tesco, is set to launch a separate grocery brand to take on discounters Aldi and Lidl. The new banner is expected to match the German retailers on price and offer a smaller range of products than the average Tesco store. Alibaba is furthering its physical retail footprint, acquiring a 15% stake in Beijing Easyhome Furnishing for ¥45 billion, or around $867 million, and pumping $486 million into a big data retail firm. 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 7: Land of Nod Closes All of Its Stores Coresight Research February 16, 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 1,790 and the number of store openings is 1,510. Land of Nod will close all six of its stores. Its merchandise will be sold on its website or at Crate & Barrel stores. JCPenney will close its Milwaukee distribution center and customer care center, and plans to shutter eight stores. Mattress Firm could be closing significantly more than the 200 stores announced in December, according to analysts at Wedbush. Nieman Marcus CEO Karen Katz retires and Geoffroy van Raemdonck will fill the role. David’s Bridal debt was downgraded further to junk territory over potential default, which could entail store closures. Year to date in the UK, there have been 76 store closure announcements and 491 store opening announcements. 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 DiveAmazon Apparel – US Survey Reveals What Shoppers Buy, Which Retailers They Have Switched from and Their Attitudes Toward Amazon as a Fashion Retailer Coresight Research February 15, 2018 Executive SummaryOur survey of US shoppers has uncovered a wealth of findings on Amazon Fashion. Here are our top six takeaways: As measured by number of shoppers, Amazon Fashion is neck and neck with Target as the second-most-shopped apparel retailer in the US. A large portion of Amazon’s apparel shoppers are Prime members, and approximately two-thirds of Prime members bought apparel on Amazon last year. Amazon’s private-label ranges comprise the fourth-most-bought clothing or footwear “brand” on Amazon, even though the ranges are still relatively new. One in nine Amazon apparel shoppers surveyed said that they have bought Amazon private-label apparel. Target is the top retailer that Amazon Fashion shoppers have switched some or all of their apparel spending from. Target apparel shoppers are also more likely than average to say that they expect to buy apparel on Amazon in the next 12 months. Younger adult shoppers are looking for the full Amazon Fashion experience and are the age group most interested in trying Amazon’s apparel private labels and its Prime Wardrobe service. They are also the group most interested in the possibility of Amazon opening physical fashion stores. Amazon Fashion shoppers are satisfied with the site’s online experience and cited the ease of browsing and searching as the top reason to buy apparel on the site. Only 12% of shoppers think that the site could be made easier to browse. Amazon risks being viewed as an off-price retailer. Fully 48% of all Amazon apparel shoppers expect to always pay less than full price on the site, while only 12% shop on Amazon because its fashion ranges are up to date. 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 CoverageMAGIC Las Vegas 2018: Key Takeaways from Day Two Coresight Research February 15, 2018 Executive SummaryThis week, the Coresight Research team is attending MAGIC Las Vegas 2018, one of fashion’s most comprehensive trade shows covering men’s, women’s and children’s apparel, accessories and footwear. Here, we share five key takeaways from day two of the event. “Reimagining retail” is giving consumers what they want, when they want it, 52 seasons a year. Microfactories are producing garments, from concept to creation, in hours. Through supply-chain digitalization, apparel companies are using virtual showrooms to sell products, without ever producing samples. Emerging market brands are driving retail; the consumer is looking for something new. Amazon is pressuring all retail to improve. 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 ReportUS Retailers Ready to Cater to Chinese New Year Shoppers with Mobile Payments Coresight Research February 14, 2018 Executive SummaryMany Chinese tourists are currently preparing to travel overseas during the Lunar New Year celebration, which begins on February 16 and runs through March 2 this year. In the US, hundreds of thousands of retailers and service providers are ready to cater to these tourists by offering them the mobile-wallet payment options they prefer, such as Alipay. Almost two-thirds of Chinese travelers say that the option to pay by mobile is an important factor in choosing a retailer when shopping overseas. Alipay has been building out partnerships across retail, hospitality, leisure experiences and transportation in the US and is now accepted at more than 170,000 locations in North America. This Lunar New Year, Chinese travelers visiting the US can pay for hotels, apartment rentals, taxis, restaurant meals and retail purchases with Alipay. Many retailers and service providers are able to accept Alipay through point-of-sale and payment-processing intermediaries such as Adyen, First Data, Poynt, Verifone and Worldpay. Others have worked directly with Alipay to implement mobile wallet payments. 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 CoverageMAGIC Las Vegas 2018: Key Takeaways from Day One Coresight Research February 14, 2018 Executive SummaryThis week, the FGRT team is attending MAGIC Las Vegas 2018, one of fashion’s most comprehensive trade shows covering men’s, women’s and children’s apparel,accessories and footwear. Here, we share five key takeaways from day one of the event. Companies are hiring Chief Algorithm Officers (CAOs) to raise their apparel IQ. At Hugo Boss, smart factories are the company’s “digital twin” and are transforming fashion production. Connectivity—through relationships in the supply chain—provides speed. Transparency into all elements of the supply chain—through connected apps—is the future of fashion. In women’s footwear, price and value are driving buying decisions for the consumer, while brand is most important for athletic shoes. 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 UpdateUnder Armour (UAA) 4Q17 Results: EPS in Line with Expectations, Company Announces Further Restructuring Plans Coresight Research February 14, 2018 Executive Summary Under Armour reported 4Q17 adjusted EPS of $0.00, in line with the consensus estimate. Total revenues were $1.37 billion, beating the $1.31 billion consensus estimate and up 4.6% year over year. North American revenues, which make up more than three-quarters of overall revenues, were down 5% in the quarter. International revenues reflected continued strong momentum and represented 46% of the increase in revenue. For 2018, the company expects net revenue to be up by low single digits, including a mid-single-digit decline in the North America business and international growth of more than 25%. The company expects 2018 EPS of $0.14–$0.19. 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 Reworked – Part 3: The Future of Physical Stores – Four Areas of Opportunity Coresight Research February 12, 2018 Executive SummaryThis report concludes our three-part Retail Reworked series, which considers changes in spending trends and consumer demand. As e-commerce skims off ever more purchases—particularly those that are planned, functional in nature or of higher-value products—physical stores can benefit by focusing on one or more of the following propositions: Convenience: serving demand for last-minute purchases in local stores. Collection: offering in-store pickup of online orders, which can lead to incremental purchases by shoppers who visit stores to collect their orders. Discount: serving the shopper base that continues to flock to value-positioned stores operating largely or solely offline, such as off-price stores, grocery discount stores, warehouse clubs and dollar stores/pound shops. Destination: creating experience-rich, quality stores and shopping centers that appeal to leisure shoppers. 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 UpdateL’Oréal (ENXTPA: OR) FY17 and 4Q17 Results: Chinese Demand for L’Oréal Luxe Products Supports Solid Comp Growth Coresight Research February 12, 2018 Executive Summary L’Oréal reported FY17 net sales of €26,024 million, up 0.7% year over year but below the consensus estimate of €26,153 million. Comparable sales were up 4.8% at constant exchange rates. The best-performing division in FY17 was L’Oréal Luxe, which reported comparable sales growth of 10.5%. Geographically, the Asia-Pacific region was the best performer, with comparable sales growth of 12.3% in FY17. For FY18, the company expects to outperform the market and to achieve significant growth in comparable sales and profitability. 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 UpdateHanesbrands (HBI) 4Q17 Results: EPS in Line, EPS Guidance Below Consensus Coresight Research February 12, 2018 Executive Summary Hanes Brands reported 4Q17 adjusted EPS of $0.52, down 1.5% from $0.53 in the year-ago quarter and in line with the consensus estimate. Revenues were $1.65 billion, up 4.4% year over year and roughly in line with the $1.63 billion consensus estimate. Separately, the company announced an agreement to acquire Bras N Things, a leading specialty retailer and online seller of intimate apparel in Australia, New Zealand and South Africa, for an enterprise value of approximately $400 million. The company offered 2018 adjusted EPS guidance of $1.72–$1.80, below the consensus estimate of $2.04. 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 February 9, 2018 Coresight Research February 9, 2018 Executive Summary This week’s note “From the Desk of Deborah Weinswig” takes a look at Amazon’s fourth-quarter and full-year earnings results, including the company’s currency-neutral sales by country and third parties’ contributions to total unit sales. eMarketer expects total retail sales to grow by 3.7% in 2018, to about $5.3 trillion in the US, with the e-commerce channel gaining 16%, to reach $526.09 billion in sales. Growth in e-commerce should bring its share of total US retail sales to 10% for the first time, according to the company. British grocer Morrisons is set to launch its Nutmeg own-brand clothing range online for the first time. Beginning in September, shoppers will be able to buy Nutmeg clothing through Morrisons’ website, on mobile devices and in-store through click-and-collect. Swedish fashion retailer H&M announced that it will launch a new online marketplace for discounted fashion and lifestyle products in 2018. The site, called Afound, will feature collections for men and women from external brands as well as from H&M’s portfolio. 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 6: Bon-Ton Files for Bankruptcy Coresight Research February 9, 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 1,776 and the number of store openings is 1,510. Bon-Ton files for Chapter 11 bankruptcy to explore potential strategic alternatives, with plans to close 47 stores in 2018. Nordstrom plans to close a full-line store in Salem, Oregon. Stein Mart assembled a team to explore opportunities to improve operating performance and identify potential strategic alternatives. Big Lots names Stephen M. Haffer as Chief Customer Officer. Lululemon CEO Laurent Potdevin has resigned over misconduct. The company has begun a search for a new CEO. Williams-Sonoma appointed Yasir Anwar as CTO, reporting to President and CEO Laura Alber. Hudson’s Bay names CVS Health’s Helena Foulkes as new CEO. Christopher & Banks names former Dick’s Sporting Goods executive Keri Jones as CEO. Year to date in the UK, there have been 76 store closure announcements and 491 store opening announcements. 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
