Company Earnings UpdateTESCO (LSE: TSCO) 1Q18 Update: Sixth Consecutive Quarter of UK Comp Growth Coresight Research June 19, 2017 Executive Summary Tesco reported total group sales (ex fuel) of 3.6% in 1Q18, or 0.8% at constant exchange rates. Tesco grew UK comparable sales by 2.3% in 1Q18, up from 0.7% in the prior quarter. Group comps came in at 1.0% in 1Q18, up from 0.4% in 4Q17. 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 ReportWalmart to Acquire Bonobos for $310 Million in Cash Coresight Research June 19, 2017 Executive Summary Walmart announced the signing of an agreement to acquire Bonobos, Inc., a leading apparel brand built on the Internet, for $310 million in cash. Following the closing, Bonobos will report to Marc Lore, President and CEO of Walmart U.S. eCommerce. The Bonobos and recently-acquired ModCloth brands will be offered on Jet.com and in a variety of countries over time. The acquisition, subject to regulatory approval, is expected to close toward the end of the second fiscal quarter this year, or the beginning of the third quarter. Bonobos offers a young and loyal male millennial customer base, which is less price-sensitive and focuses greatly on quality. Although the acquisition is likely to hurt profitability slightly in the short term, it can offer major benefits over the long term as Walmart scales up the brand. 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 UpdateH&M (STO: HM-B) Monthly Sales Update: Weak Sales in May Coresight Research June 16, 2017 Executive Summary H&M reported total sales rose by 4% year over year in local currencies in May 2017. This compares to year-over-year sales growth of 7% in April. The total number of stores grew by 10.3% year over year to 4,498, as of May 31. Sales growth lagged store growth by 633 basis points in April, expanding from the 388-bps difference in March. 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) 1Q17 Results: In-Line EPS; Company Lowers Guidance Due to Higher Inflation Expectations Coresight Research June 16, 2017 Executive Summary Kroger reported 1Q17 adjusted EPS of $0.58, in line with the consensus estimate. Revenues were $36.3 billion, up 4.9% year over year and slightly above the $35.6 billion consensus estimate. Identical supermarket sales excluding fuel were down 0.2%, beating the (0.5)% consensus estimate. Including fuel, identical sales increased by 1.6%. Kroger lowered its FY17 adjusted EPS guidance to $2.00–$2.05 from $2.21–$2.25 previously. The company cited increased expectations for LIFO, from $25 million to $80 million, incremental price investments in certain markets and incremental investments in hours and wages as the factors behind the lower guidance. Kroger continues to expect identical sales growth (excluding fuel) of 1% in FY17. 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 CoverageNew York Fashion Tech Lab (NYFTL) Tech Runway Demo Day 2017 Coresight Research June 16, 2017 Executive SummaryFung Global Retail & Technology attended the New York Fashion Tech Lab’s (NYFTL’s) Tech Runway Demo Day 2017 in New York City on June 14. The event featured NYFTL’s fourth accelerator class of startups, which consisted of nine women-led companies. The startups’ various areas of focus include creating new ways for customers to shop, new ways for retailers to track engagement and new ways for retailers to communicate and engage with customers. New ways for customers to shop: Four of the presenting startups are developing new ways for customers to shop. Markable’s image-recognition technology enables users to shop while they watch TV. Obsess is a virtual reality (VR) platform that will enable fashion brands to create a different shopping experience via virtual stores. Snap Tech is a visual search tool that makes content shoppable. Zeekit has created an augmented-reality (AR) solution that allows consumers to virtually try on all of the clothes in a store’s inventory after simply uploading a photo of themselves. New ways for retailers to track engagement: Two of the presenting startups have created technologies designed to track and enhance brand loyalty. Awear Solutions’ frequent-flyer-type fashion solution tracks and rewards customers who wear particular apparel items. Point 93 is an app that determines the price that a customer is willing to pay for an item, and how long the customer is willing to pay it. New ways for retailers to communicate and engage with customers: Three of the startups that presented focus on targeting relevant content to consumers in an exciting way that generates revenue. Camera IQ is an AR platform that enables brands to connect with their audience through engaging and interactive content. E-Contenta uses artificial intelligence to track a website’s most-read content, which it repackages for specific groups. Findmine is an automated personal stylist that offers outfit suggestions for users. 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 Jun 16, 2017 Coresight Research June 16, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the emergence of retail loyalty programs and how companies are increasingly using customer data to craft personalized offers. The Nordstrom family is exploring a bid to acquire the department store chain that bears the family name in a deal that would turn the publicly traded company into a private venture. In a bid to increase its online presence, Swedish furniture retailer IKEA plans to begin testing the use of third-party websites to sell its furniture next year. With an eye on gaining new sales channels and more exposure to developed markets, Brazil’s Natura entered exclusive talks to acquire The Body Shop from L’Oréal with an offer that values the British chain at €1 billion (US$1.1 billion). 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 ReportTop Three Takeaways from Loop Commerce’s “Shopping for Others: Unlocking a BlindSpot in Digital Commerce” Event Coresight Research June 15, 2017 Executive SummaryOn June 13, the Fung Global Retail & Technology team attended a Loop Commerce event in New York entitled “Shopping for Others: Unlocking a Blind Spot in Digital Commerce.” Our top three takeaways were: Retailers should have strategies in place to help alleviate the anxiety of gifting. Personalized marketing is now expected by most brand-loyal customers, who do not see it as creepy—and gift data is critical to effective personalization. Gifting can also be an opportunity to showcase experiential retailing, acquire new customers and reduce 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 UpdateInditex (BME: ITX) 1Q17 Results: Continued Sales and Margin Strength Coresight Research June 15, 2017 Executive Summary Inditex reported 1Q17 revenues of €5.6 billion, an increase of 14.1% year over year and above analyst estimates. Constant currency sales increased 12.5% year over year in 1Q17, which ended April 30. EBIT increased by 18.3% year over year to €834 million, and 1Q17 EBIT margin expanded by 60 bps year over year to 15.0%. Inditex’s store and online sales at constant currencies for the trading period of February 1 to June 3, 2017 have increased by 12% year over year. 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 ReportMay 2017 US Retail Sales and Traffic Coresight Research June 15, 2017 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 US Monthly Retail Sales and Traffic Report reviews year-over-year changes in selected store-based metrics, including sales, traffic and conversion rates. Highlights from our May Retail Traffic report: Total US retail sales for May declined by 0.3% month over month and amounted to $473.8 billion. Results came in lower than the consensus estimate of a 0.1% decline. On a year-over-year basis in May, total retail sales increased by 3.8% and retail sales excluding autos also increased by 3.8%. Five out of 13 major store categories posted positive sales results, while two were flat compared with April. Nonstore retailers and furniture stores posted the largest month-over-month increases, of 0.8% and 0.4%, respectively. According to RetaliNext, a number of in-store metrics were negative in May, but showed a slight improvement from previous months. Sales were down 5.5% year over year, the smallest decline in the last six months.In-store traffic fell by (6.1)% in May year over year, but the decline was lower than that seen in most recent months. 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 2017 US Retail Sales and Traffic Coresight Research June 15, 2017 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 US Monthly Retail Sales and Traffic Report reviews year-over-year changes in selected store-based metrics, including sales, traffic and conversion rates. Highlights from our May Retail Traffic report: Total US retail sales for May declined by 0.3% month over month and amounted to $473.8 billion. Results came in lower than the consensus estimate of a 0.1% decline. On a year-over-year basis in May, total retail sales increased by 3.8% and retail sales excluding autos also increased by 3.8%. Five out of 13 major store categories posted positive sales results, while two were flat compared with April. Nonstore retailers and furniture stores posted the largest month-over-month increases, of 0.8% and 0.4%, respectively. According to RetaliNext, a number of in-store metrics were negative in May, but showed a slight improvement from previous months. Sales were down 5.5% year over year, the smallest decline in the last six months.In-store traffic fell by (6.1)% in May year over year, but the decline was lower than that seen in most recent months. 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: Retail X Factor— The US Economy Coresight Research June 14, 2017 Executive Summary This is the first report in our X Factor series in which we identify themes that we believe will be critical for the US retail landscape throughout 2017 and beyond. In this report, we look at the macroeconomic backdrop in the first quarter of 2017, and analyze the economic outlook and how this could impact retail for the rest of the year. In 1Q17, the US economy saw its weakest real GDP growth of 0.7% since 2014, mainly due to a warm winter which inhibited the consumption of goods and services. One beneficiary of this warmer winter was the US housing market, which saw 8.1% more housing starts and 15.6% more new home sales than last year. Another sign of the strength of the overall economy is the unemployment rate, which is at a historical low of 4.4%. Retail sales experienced year-over-year growth of 5.7%, 5.9% and 5.4%, respectively, in the first three months of the year, driven by increasing inflation and gains in income. We expect favorable policies, including tax cuts, and strong fundamental macro data to support growth for the remainder of 2017. 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
Flash Report3D Body-Scanning Technology: Creating the Perfect Fit Coresight Research June 13, 2017 Executive Summary Most ready-to-wear apparel manufacturers decide the fit and sizing of their garments based on limited information. In the absence of accurate body measurement data, apparel companies generally size garments by using fit models in one or two standard sizes, and then scale prototypes proportionally to all sizes based on the originals. For a consumer, finding the right size for one’s body shape is often challenging, as the retail industry has no standard sizing system for all brands. 3D body-scanning technology could be the solution to these fitting challenges. The noncontact technology can be used to capture the shape of a human body via a line of laser lights or a camera. The technology records the body’s exact shape and size and creates a 3D digital model of the body within seconds. 3D body-scanning technology can help apparel companies create garments with a more accurate fit by providing true measurements of customers of different shapes and sizes. Body-scanning tools can also benefit consumers, by enabling them to virtually try on clothing in order to find the best fit. Use of such tools could, in turn, drive down return rates for online orders, which are currently as high as 30%–40%. Looking beyond current industry practices, consumer-generated 3D body measurement data could help retailers optimize the size composition of their inventory and avoid excess markdowns. Retailers could use body measurement data collected by devices such as fitness scales and smartphones to make sizing decisions. We might see further interconnection between artificial-intelligence-powered shopping devices (such as Amazon’s Echo) and body-shape-tracking devices that results in a more seamless shopping experience. 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 ReportTakeaways from 2017 Alibaba Investor Day 2 Coresight Research June 13, 2017 Executive SummaryAt Day 2 of the 2017 Alibaba Investor Day, the senior executive team shared its strategic vision for the company to make it easy to do business anywhere. Executive Chairman Jack Ma outlined his long-term vision for Alibaba and identified globalization and China’s consumption upgrade opportunity which he believes will help the company reach US$1 trillion GMV by fiscal year 2019 and serve one-third of the world’s population by 2036. Executive Vice Chairman Joe Tsai shared the chief tenets of the group’s investment strategy: driving interest alignment through minority stakes and post-M&A value creation. President of AliCloud Simon Hu believes AliCloud will be able to maintain its rapid growth through its continued domestic dominance and overseas expansion. Ant Financial CEO Eric Jing, President of Cainiao Network Wan Linand Chairman and CEO of Alibaba Digital Media & Entertainment Group Yu Yongfu shared their vision of inclusive finance and how the business can leverage data and the platform economy to create value for customers and merchants globally. 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 DiveWarehouse Club Stores: Time To Take The Treasure Hunt Online—Part 3 Coresight Research June 12, 2017 Executive SummaryIn Part Three of this Deep Dive, we provide an overview of the warehouse-club sector. The 40-year-old global warehouse club sector is estimated to generate approximately $191 billion in revenues in 2017. The clubs’ business model seeks to limit gross profits so as to offer low prices to members while generating profits for shareholders through reasonable membership fees. The majority of the clubs are located in the US, which accounted for nearly three-quarters of sector revenues in 2016. The market is dominated by three companies: BJ’s Wholesale Club, Costco Wholesale and Sam’s Club (a division of Walmart). The US warehouse club sector grew at a 7.2% CAGR from 2001 through 2016. Its growth rate outpaced that of the total US retail industry by 3.3 percentage points over the period. The international market grew at an even brisker 10.8% CAGR. Yet the sector’s growth rate slowed over the same period, actually hitting zero in 2015. And researchers are forecasting that the US segment will grow at a 2.4% CAGR, more than 1.5 points lower than overall retail, from 2016 through 2020. The spoiler behind the sector’s decelerating growth rate has likely been e-commerce, which the clubs have been slow to embrace. Warehouse clubs currently generate 4% or less of their revenues from e-commerce. As is the case with many other retailers, warehouse clubs need to develop a strategy to compete with e-commerce players, as well as leverage their unique strengths to adapt to other demographic and technological 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
Company Earnings UpdateTakeaways from Walmart’s 47th Annual Shareholders’ Meeting Coresight Research June 9, 2017 Executive SummaryThe Fung Global Retail & Technology team attended Walmart’s 47th Annual Shareholders’ Meeting, held in Fayetteville, Arkansas. Below are takeaways from the meeting: Walmart is moving in the right direction. Walmart’s financial framework calls for growth and wise spending. Walmart is implementing new delivery methods such as click and collect. The new delivery initiatives save customers money and time. Walmart is inventing the future of shopping, again. Walmart’s culture is incorporating more risk taking. Walmart is working to improve price gaps on private label. Private label can leverage sourcing to offer unique products. Strong fiscal 1Q18 results were the result of two years of investment. Walmart has many other levers to improve performance. 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
