Insight ReportAmazon (AMZN) Prime Day 2016 Preview Coresight Research July 11, 2016 Executive Summary Leveraging the success of last year’s Prime Day, a celebration of the company’s 20th year in business, Amazon is celebrating its birthday again this year, promising to offer even bigger and better deals to its Prime members than last year, which saw higher unit sales than on the previous Black Friday. Fung Global Retail & Technology conservatively estimates that Amazon could generate $525 million of sales on this year’s Prime Day, up 26% from our $415 million estimate last year, as Amazon leverages the success of last year’s event plus a 33% increase in the number of Prime members, which number nearly 70 million. Amazon is offering several pre-event deals, as well as daily deals, in order to grow excitement leading up to the event. Owners of Alexa artificial intelligence devices were initially offered a riddle when inquiring about Prime Day, and they will receive exclusive deals leading up to and including the event. Prime Day is a manmade shopping holiday that echoes Alibaba’s Single’s Day (held every Nov. 11), which has generated explosive growth for Alibaba. Last year’s Single’s Day saw a 54% increase in GMV to US $14.3 billion amid increasing international participation. Coresight has been covering Amazon Prime Day since it was launched in 2015 and additional reports from can be accessed here. 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 ReportWeekly Retail Promo Update Jul 10, 2016 Coresight Research July 10, 2016 Executive Summary JCPenney has a less promotional focus this week than it did during the same week last year. The retailer is offering 15% off home products this week versus 40% off last year. During this week last year, Target promoted sales on liquid detergent, paper towels, and soft drinks, but this year it is focusing on smartphones, gaming consoles and Fitbits (summer essentials technology gadgets). Macy’s is offering a more diverse range of promotions this week than it did last year, when sales mostly focused on apparel. The retailer has also increased its discounts on many selected items, from 40% last year to 70% this year. Bloomingdale’s is encouraging more online traffic by increasing the discounts offered in its bQuick! Online Secret Sale from 60% off selected items last year to 80% off this year. Kohl’s is offering savings similar to last year throughout its departments and is running a half-off promotion on Simple by Design furniture that is identical to the one it offered during this week last 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
Analyst CornerWeekly Insights Jul 8, 2016 Coresight Research July 8, 2016 Executive Summary In this week’s letter, we take a look at the potential winners and losers from the Brexit fallout, the near-term impact on consumers, and accelerating trends in UK retail, including the mass adoption of discount formats, a structural shift to the online channel and the relative insulation of younger consumers from the Brexit impact. World events seem to have deterred consumer spending recently. In response, retailers are stepping up promotions in order to clear excess inventories. Consumers continue to avoid paying full price for goods, with full-price units sold down 9.5% and orders using a promotion up 38% during the week leading up to the Fourth of July. Sainsbury’s, the UK’s second-biggest grocery retailer, plans to double its number of click-and-collect grocery collection sites over the next 12 months. The company launched its click-and-collect service for groceries in March 2015. Most customers using its drive-through collection points do so for big, weekly shops. Mexico implemented an 8% tax on high-calorie snacks in 2014, and a recent report says that the tax has been successful in reducing junk-food purchases, but only marginally and only among lower-income and middle-class households. The report says there was an average 5.1% reduction in purchases of items subject to the tax. This document was generated for
Insight ReportWALMART PAY: WALMART’S MOBILE PAYMENT SOLUTION GAINS TRACTION Coresight Research July 8, 2016 Executive Summary Walmart recently rolled out Walmart Pay nationwide in the US, bringing the retailer’s mobile payment solution to more than 4,600 retail stores. Customers can use the digital wallet for payments at checkout counters in Walmart stores and for in-app purchases. Walmart Pay transactions increased by 45% in the week after the rollout, according to Walmart. 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 DiveGym Clothes Are Making Their Way Out of the Gym: A Primer on Athleisure Coresight Research July 6, 2016 Executive Summary Athleisure is the trend of wearing activewear, clothing designed for athletic workouts, both inside and outside the gym. In the US, athleisurewear sales totaled $97 billion in 2015, up 40% from 2010 and up 7% from 2014. Last year, the segment outperformed traditional apparel, which saw more modest sales growth. Millennials tend to take a more holistic approach to health and wellness than older groups do. They exercise more, eat better and smoke less than previous generations. Fitness has become a more integral part of day-to-day life for millennials. Athleisure brands have been successful in building an emotional connection between their product and the customer, making it more likely customers will make multiple purchases. Customers want not only the specific items they are purchasing, but also the active lifestyle that comes with them. The athleisure universe is growing, which means it is harder for brands to stand out. The brands that have performed best and have proven they can withstand the emerging competition are the ones that do not sell just clothes, but a lifestyle. Athleisure is affecting big brands and traditional apparel retailers in a significant way that looks to be permanent. That said, we do not see the current pace of category growth as sustainable, and we expect more moderate growth going forward. 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 ReportWalmart Enters Strategic Partnership with Chinese E-Commerce Giant JD.com Coresight Research July 6, 2016 Executive Summary On June 20, Walmart (WMT) and JD.com (JD) announced a strategic partnership in China under which JD.com will acquire Walmart’s online grocery site Yihaodian, and Walmart and its Sam’s Club stores will become listed retailers on JD.com’s e-commerce sites. The deal leverages JD.com’s online traffic and broad logistics network and Walmart’s global supply chain. Under the agreement, Walmart will take a stake of about 5%, valued at approximately $1.5 billion, in JD.com. This long-term partnership will allow JD.com to expand its online-to-offline commerce operations, particularly in grocery. Walmart will be able to drive more traffic to its Sam’s Club and Walmart businesses through JD.com’s sites. Although Yihaodian currently accounts for only 1.5% of China’s B2C e-commerce market, it has a niche in China’s online grocery business, as other e-commerce players, such as Alibaba and JD.com, have much broader category coverage. com has made a series of investments in grocers, including Chinese online produce retailer FruitDay and supermarket chain Yonghui. Through this latest Walmart partnership, JD.com will be able to expand its imported food offerings and benefit from the use of Walmart’s and Sam’s Club’s supply chain. Walmart estimated that the deal will increase its second-quarter EPS by $0.16–$0.19 (its current guidance calls for EPS of $0.95–$1.08). The company is giving up all rights to create new e-commerce websites in China, but will continue to operate existing Walmart and Sam’s Club apps and websites. 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 ReportWeekly Retail Promo Update Jul 03, 2016 Coresight Research July 3, 2016 Executive Summary Stores are offering summer sales on items such as beach footwear, bottled water and sports chairs. Many retailers are focused on promoting their biggest sellers this week. 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 Jul 1, 2016 Coresight Research July 1, 2016 Executive Summary In this week’s note “From the Desk of Deborah Weinswig,” we look at how the UK’s historic decision to leave the EU will affect the UK, the US and the rest of Europe, from our vantage point on the US side of the Pond. Retailers are shifting to hold less inventory in stores, aiming to increase sales by 15% while keeping inventory levels flat or even decreasing them slightly. As consumers increasingly shop online, retailers are working to figure out how to profitably allocate inventory to meet consumers’ needs. Since inventory is one of retailers’ highest costs, holding less of it can free up capital for building online operations or covering wage increases. According to experience-marketing platform Monetate, more than half of online shoppers spend time shopping on different devices before making their purchase. Cross-device reconciliation allows customers to pick up where they left off, even if they switch devices. The total number of smartphones in China is expected to reach 1.4 billion by 2020, with an increase of 34 million mobile phone users, according to research firm Canalys. Chinese consumers are embracing digital devices—including smartphones, smarter vehicles, virtual reality devices and Internet-of-Things connected devices—and adoption rates have been boosted by the government’s “Internet Plus” initiative. This document was generated for
Company Earnings UpdateAlibaba (BABA) Steps Up Global Expansion Strategy by Raising its Stake in Lazada Coresight Research June 30, 2016 Executive Summary Alibaba announced that it will pay almost $1 billion to increase its stake in leading Southeast Asia e-commerce platform Lazada to 83% from 51%. We view the investment as an inevitable move to reinforce the group’s global expansion strategy and believe it fits well with Alibaba’s phased-in acquisition approach. We expect Alibaba to continue to generate synergies by integrating Lazada into its international retail commerce ecosystem and further expand its global market share. This document was generated for
Insight ReportDixons Carphone (LON: DC) FY16 Results: EPS Slips, but Meets Consensus Coresight Research June 29, 2016 Executive Summary British retailer Dixons Carphone reported an 18% increase in revenues for FY16. Revenues of £9,738 million beat the consensus estimate of £9,647 million. Basic EPS was 29.3 pence for FY16, down 1.3% from 29.7 pence in FY15 and in line with consensus. The company will expand its Connected World Services to the US, following an agreement with Sprint to roll out honeyBee service across the entire Sprint estate in 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 ReportUnder Armour (UA) Turns on the Lights at New Lighthouse Facility Coresight Research June 29, 2016 Executive Summary On June 28, Under Armour opened the UA Lighthouse, a center for manufacturing and design leadership, in Baltimore, Maryland. The Lighthouse will encourage innovation by providing designers, developers and partners with the tools they need to create, build and develop. The facility will enable 3D design and printing, rapid prototyping and the piloting of product lines. This center will also serve as a hub where new product and process technology is developed before being transferred to factory partners to scale up. 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 ReportOcado (LON: OCDO) 1H16 Results: Morrisons Agreement Boosts Scale for Ocado Coresight Research June 29, 2016 Executive Summary Ocado Group posted 15.1% revenue growth in 1H16, with revenues fractionally missing the consensus estimate. SG&A increased by 17.1% due to Ocado’s agreement to fulfill online orders for Morrisons, but the agreement also boosted gross margins. Diluted EPS climbed by 19.7%, to 1.40 pence, beating consensus. 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 ReportNike (NKE) 4Q16 Results: North American Revenues Fall Short Coresight Research June 28, 2016 Executive Summary Nike reported fiscal 4Q16 EPS of $0.49, above the consensus estimate of $0.48. Total revenue was $8.24 billion, below consensus of $8.28 billion. Revenues for the Nike brand were up 13%, excluding the impact of foreign currency. Nike brand sales to the wholesale channel increased by 9%, excluding foreign exchange. Direct-to-consumer revenues were up 25%, excluding foreign exchange, driven by a 51% increase in online sales, new stores and 10% comp growth. As of May 31, worldwide future orders for June through November were up 8% year over year, or up 11% excluding foreign exchange, versus consensus of 12.0%. 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
Insight ReportFinish Line (FINL) 1Q17 Results: Finish Line Beats, Reaffirms FY Guidance Coresight Research June 27, 2016 Executive Summary Finish Line reported 1Q EPS of $0.23, above consensus of $0.22. Total revenue was $453.5 million versus expectations of $449.5 million. Comps were 1.5% versus consensus of 2.2%. Management noted a challenging retail environment during the period. Management reaffirmed full year guidance for EPS of $1.50-$1.56 versus consensus of $1.54. Comps are expected to be up 3%-5% versus consensus of 4%. The company signaled that it expects sales to pick up as the year progresses. 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 ReportWeekly Retail Promo Update Jun 26, 2016 Coresight Research June 26, 2016 Executive Summary Stores are offering Independence Day sales on items such as pool supplies, drinks and sunscreen. Many retailers are focused on promoting their biggest sellers this week. 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
