Deep DiveDeep Dive: US Consumer Survey— Can Amazon Prime Lure Lower-Income Shoppers Away from Walmart? Coresight Research September 2, 2017 Executive Summary In June 2017, Amazon announced that it would offer a 45% discount for its Prime membership to all government assistance recipients, a move that aims to lure more lower-income consumers from retail competitors such as Walmart. The discounted Prime membership could boost the penetration rate among this consumer group, which appears ready for e-commerce. In addition to Amazon’s competitive pricing, perks such as unlimited two-day free delivery would likely appeal to those consumers who may have reduced mobility (i.e., limited access to public transport, no car or no stores nearby). However, Amazon still faces a number of challenges to capture these lower-income consumers. Survey data shows that this group is 47% more likely to shop at Walmart than the average American consumer. Furthermore, difficulties in terms of online payment (for example, lack of a credit card) remain a barrier for these consumers to shop regularly on Amazon. 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 UpdateCarrefour (ENXTPA: CA) 1H17 Results: Profits Fall, Warns of Impact on Full-Year Results and Lowers Sales Outlook Coresight Research September 1, 2017 Executive Summary Carrefour reported 1H17 net sales up by 6.2%, or a 3.2% increase at constant currency. The gross margin diminished by 34 basis points, SG&A expenses as a percentage of sales fell by 5 bps and the operating margin decreased by 32 bps. Carrefour warned that the full-year results will be impacted by its performance in 1H17. For FY17, the company aims to grow total sales by 2%–4%, expects capex to be between €2.2 billion and €2.3 billion, and looks to maintain free cash flow at the same level as 2016. 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 CornerWeekly Insights Sep 1, 2017 Coresight Research September 1, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses off-price retailers’ recent expansion in Europe and their prospects for growth in the region. Hudson’s Bay Company, owner of the Saks Fifth Avenue and Lord & Taylor retail chains, plans to review its options, including going private, following pressure from an activist shareholder. UK online supermarket Ocado has unveiled an app for Amazon’s Alexa voice assistant that will enable owners of Amazon’s artificial intelligence–powered Echo smart speakers to add groceries to their shopping list by voice command. Walmart intends to invest roughly R$1 billion (US$316 million) in Brazil through 2019 to restore about 120 stores as rivals in South America’s biggest economy ratchet up investments to retain cash-strapped consumers. 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 UpdateFive Below (FIVE) 2Q17 Results: Beats on Revenues and EPS, Raises Guidance in Line with Consensus Coresight Research August 31, 2017 Executive Summary Five Below reported 2Q17 EPS of $0.30, up 69.3% from the year-ago quarter and beating the consensus estimate of $0.26. Revenues were $283.3 million, up 28.7% year over year and beating the consensus estimate of $276.6 million. Comps increased by 9.3% year over year, compared with the consensus estimate of 6.7% and guidance of 5%–8%. The company raised its FY17 revenue guidance to $1.236–$1.248 billion (versus $1.227–$1.242 billion previously), based on an expected 3.5%–4.5% increase in comps. Five Below raised its full-year EPS guidance to $1.62–$1.66 from $1.59–$1.64 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
Deep DiveShanghai— A Globally Connected City with a Vibrant Startup Scene Coresight Research August 31, 2017 Executive Summary With 24-million inhabitants, Shanghai is the largest city in China and ample grounds for consumer-facing businesses. The city is well known as both a global financial center and a world-class shipping hub. Not only are there a number of top venture capital (VC) firms, but several large, highly-rated universities as well, two of the main building blocks of a successful startup ecosystem. Shanghai’s government supports innovation and startups through various subsidy programs such as a risk-compensation policy, which covers as much as 60% of any actual losses due to the failure of seed investments. This applies not only to startups, but VC firms and investors as well. 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 PresentationRetail Revolution – Disrupt or Be Disrupted – The Connected Mall (ULI) Coresight Research August 30, 2017 Executive SummaryThree Global Trends Impacting the Future of Shopping Centers Urbanization Demographic Shifts The Hyper-Connected Consumer is Always On 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 DiveDeep Dive: Future Proofing Department Stores in Asia—Part 1 Coresight Research August 30, 2017 Executive SummaryIn this first report of our Asia Department Store series, we explore how the department store industry in Asia needs to evolve to navigate through the myriad of challenges currently facing the industry. Here in Asia, department stores are in need of an overhaul—the result of brand homogenization, their lack of appeal to younger consumers and channel shifts to e-commerce and fast fashion. What actions managements take will have a significant impact on how department stores fare in the longer term. While Asian consumers cannot be lumped into one group, there are some common traits that define them in general: they are increasingly urbanized, digitally savvy and are constantly searching for personalized experiences and convenience. The department store of the future will make extensive use of retail technology as a means to increase store productivity, the store will come in all shapes and sizes, and provide an immersive shopping experience and a community for consumers. This report sheds light on how department stores throughout Asia are innovating to cope with the new norm in retail, with extensive case studies on China, Japan, Korea, Thailand, Vietnam and Indonesia. 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 ReportHudson’s Bay Company (TSE: HBC) Reportedly Reviewing Strategic Options Coresight Research August 29, 2017 Executive Summary Hudson’s Bay Company (TSE: HBC) is reportedly reviewing its options, including going private, under pressure from an activist shareholder, according to a story published by Reuters citing “people familiar with the matter.” Actions under review include going private as well as potential sales of retail assets and real estate, although it is not guaranteed that a transaction will emerge from the review. The company was already working with an investment bank to defend itself against an activist investor, and it is reportedly seeking another financial advisor to carry out the review, according to the Reuters article. An investor, Land and Buildings, has urged the company to consider going private and to monetize its real estate holdings. Recently, Land and Buildings increased the pressure, seeking to nominate directors unless the company takes steps to increase its stock price. 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 DiveDeep Dive: Blockchain Mini-Series— Retail Applications Coresight Research August 29, 2017 Executive SummaryThis is the second report of our Blockchain Mini-Series, in which we cover the potential applications of blockchain technology in retail and supply-chain management: Blockchain technology creates a secure ledger that stores transaction records over a decentralized network. This eliminates the need for third-party verification and enables real-time information exchange. The application of blockchain technology can solve some of the following challenges for retailers: the risks associated with operating centralized databases, the risk of third parties’ counterfeiting branded goods, supply-chain opaqueness and incompatible databases across different supply-chain nodes. Since blockchain technology is still in its infancy stage, companies will likely face significant adoption challenges, which is why we believe it will have a mid- to long-term impact on the industry rather than in the immediate future. While mass adoption is still far off, companies would be wise to start preparing for the shift today. 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
Market Navigators/Market OutlookChina’s Online Fashion Recommerce Market—Part 2 China’s Top Online Fashion Recommerce Platforms Coresight Research August 27, 2017 Executive Summary China’s growing online recommerce industry is primarily dominated by two integrated platforms—Alibaba’s Xianyu and Tencent-backed Zhuan Zhuan—with a combined market share of over 90%. Venture capital (VC) fund flows have also fueled the growth of luxury fashion recommerce platforms. In Part 2 of our China Fashion Recommerce series, we analyze the country’s two largest integrated recommerce platforms Xianyu and Zhuan Zhuan, as well as delve into specialized luxury fashion recommerce platforms. We conclude that cooperation with social media platforms, the application of big data technologies and comprehensive authentication and aftersales services are the key drivers of success for online recommerce platforms in China. 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 CornerWeekly Insights Aug 25, 2017 Coresight Research August 25, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the use of facial-recognition technology for user identification in the next generation of smartphones. Many US families still have a lot of shopping left to do as they prepare their children for the start of school. According to the National Retail Federation’s (NRF’s) annual survey, the average family with children in grades K–12 had completed only 45% of their shopping as of early August. Discounter Lidl has become the UK’s seventh-largest grocery retailer, according to new data from market measurement firm Kantar Worldpanel. Lidl grew its UK sales by 18.9% in the 12 weeks ended August 13. Aldi, the UK’s fifth-largest grocery retailer, grew sales by 17.2%. Alibaba has continued its push into Southeast Asia after leading a $1.1 billion investment in Tokopedia, an e-commerce firm based in Indonesia. Tokopedia, which was founded in 2009, operates a marketplace that allows small retailers and large brands to sell to consumers. 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 UpdatePVH (PVH) 2Q17 Results: Beats Consensus and Raises EPS Guidance Coresight Research August 25, 2017 Executive Summary PVH Corp. reported 2Q17 revenues of $2.1 billion, up 7.0% year over year and slightly above the $2.03 billion consensus estimate. Adjusted EPS was $1.69, up from $1.47 in the year-ago quarter and beating both the consensus estimate of $1.64 and the company’s own guidance of $1.60–$1.63. Calvin Klein revenue increased by 8%, driven by a 20% increase in international sales. Tommy Hilfiger revenue increased by 4%, driven by a 9% increase in international sales. Heritage Brands revenue increased by 13% due to order timing. The company raised its full-year GAAP EPS guidance to $6.44–$6.54 from $6.24–$6.34 previously, and it raised its non-GAAP EPS guidance to $7.60–$7.70 from $7.40–$7.50 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
Company Earnings UpdateBurlington Stores (BURL) 2Q17 Results: Beats on EPS and Revenue, Raises FY17 Guidance Coresight Research August 25, 2017 Executive Summary Burlington Stores reported 2Q17 adjusted EPS of $0.72, up from $0.39 in the year-ago quarter and above both the $0.51 consensus estimate and the company’s own guidance. Total revenues were $1.36 billion, up 8.6% year over year and slightly above the $1.35 billion consensus estimate. Comparable-store sales rose by 3.5% during the quarter, compared with a 5.4% increase in the year-ago quarter and ahead of both the 2.8% consensus estimate and the company’s guidance of 2%–3%. Comp growth was driven by an increase in traffic and units per transaction. The company raised its FY17 adjusted EPS guidance to $4.11–$4.18 from $3.86–$3.96; consensus calls for full-year EPS of $3.98. Burlington Stores expects FY17 comp growth of 2.0%–2.5%, versus the 2.4% consensus estimate. 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 UpdateAbercrombie & Fitch (ANF) 2Q17 Results: Beats on EPS, Revenues and Comps Coresight Research August 25, 2017 Executive Summary Abercrombie & Fitch reported 2Q17 adjusted EPS of $(0.16), compared with $(0.25) in the year-ago quarter and beating the consensus estimate of $(0.33). Revenues were $779 million, down 0.5% year over year but beating the consensus estimate of $759 million. Comps decreased by 1%, ahead of the (2)% consensus estimate and up from (3)% in the first quarter. Hollister comps increased by 5%, while Abercrombie comps declined by 7%. The company’s guidance was for flat comps for the year, with comps flat to slightly up in the second half. 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
Flash ReportAmazon Expands Brick-and-Mortar Presence to 10 Bookstores This Week with Openings in Bellevue and San Jose Coresight Research August 25, 2017 Executive Summary Less than two years after launching its first brick-and-mortar bookstore, Amazon announced the opening of its ninth and tenth locations this week, in Bellevue, WA, and San Jose, CA. The company plans to open an additional three stores by the end of the year. The physical stores use data from Amazon’s online store to curate the selection of books on offer, and books are recommended based on user reviews from the Amazon website. The stores also feature Amazon’s consumer electronic devices, such as Kindle e-readers and Fire Tablets. The book displays at the stores mirror the look on Amazon.com. Covers face forward and next to each book there are printed reviews from Amazon users taken directly from the website. 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
