Flash ReportKroger INVESTOR DAY Highlights Coresight Research October 29, 2015 Executive Summary Kroger, the nation’s largest operator of traditional supermarkets, held its annual investor day on October 27in New York. The company’s general strategy is to improve the in-store experience and develop a personalized offering through the expansion of its e-commerce capabilities. Kroger is continuing to invest in the e-commerce segment to build a more personalized real-time digital experience. Management announced that its click-and-collect service, called ClickList, will continue to expand beyond the 19 markets in which it currently operates. When shopping online, customers receive personalized suggestions, and can view past purchases and shop by category. Kroger believes the click-and-collect experience will help it build a digital relationship with customers. A key focus of the presentation—and a topic that elicited several questions—was the correlation between return on invested capital (ROIC), market share and the opportunity for Kroger within fill-in markets. The table below shows Kroger’s growth in Michigan from 2009 to 2014. Despite operating fewer stores in 2014 than in 2009, Kroger achieved higher sales and market share in 2014 by investing in scale and the customer experience. Kroger stressed the importance of investing in the quality of stores rather than in the number of stores. The company will continue to drive square-foot utilization in markets by investing in high-volume, quality projects to increase ROIC over time. Kroger expects to increase its Michigan store count to 100 by year-end, with 6 million total square feet. CEO Rodney McMullen expects the company to reach $4 billion in sales in Michigan, basically doubling its volume within the market. The company expects to increase its market share by 30% in the state. The company reaffirmed its guidance for fiscal year 2015 (ending Jan. 31): same-store supermarket sales growth, excluding fuel, of 4% to 5% and earnings per share (EPS) of $1.92 to $1.98. Moreover, the company also reaffirmed its long-term EPS-growth-rate target of 8% to 11% and expects third-quarter earnings to be at the higher end of the range. This document was generated for
Flash ReportWalgreens to Acquire Rite Aid in $17.2 Billion Deal Coresight Research October 28, 2015 Executive Summary Tuesday, Oct. 27, after the market close, Walgreens Boots Alliance announced an agreement to acquire smaller drugstore chain Rite Aid for $9.4 billion in cash, offering $9 per share in cash, which represents a 48% premium to Rite Aid’s closing price of $6.08 on Monday.Including debt, the deal is valued at $17.2 billion, the company said. The deal would bring together the #1 and #3 retail pharmacy companies, creating a pharmacy giant with over 13,000 stores and more than $67.1 billion in combined revenue, according toDrug Store News’s Annual PoweRx Industry Rankings. The combined company would have an especially strong presence in California and New York. The combination is expected to realizecost synergies of at least $1 billion annually. The boards of both companies have approved the transaction, which must receive Hart-‐Scott-‐Rodino approval and is expected to close during the second half of calendar 2016. This document was generated for
Insight ReportStarbucks Reserve: The Coffee Shop of the Future? Coresight Research October 27, 2015 Executive Summary On October 21, Starbucks opened Starbucks Reserve, a new concept store, in Central London. The store features table service and a coffee-tasting corner where customers can interact with the baristas. Starbucks Reserve offers coffees sourced from microplantations and boasts five different coffee-brewing methods. From 4 p.m. on, the store serves wine, craft beer and sharing plates. Tables are designed for mobile device users, with wireless charging and laptop sockets. A number of innovations introduced at Starbucks Reserve are likely to be replicated in regular Starbucks outlets. 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 DiveConnected Home Series: What Happens When Your Home Is Smarter Than You? Coresight Research October 22, 2015 Executive Summary By 2020, there will be approximately 25 billion IoT-enabled devices, 13 billion of them in the consumer electronics segment, says Gartner Research. Consumers across demographics are excited about owning a smart home. The key drivers in smart home adoption are home security, energy efficiency, entertainment, convenience/productivity, connectivity and health monitoring. The industry is marked by strategic collaboration between the IT giants and the rise of startups which develop popular smart devices. Interoperability between devices and the high cost of adoption are two issues to be resolved for the market to develop further. 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 ReportHouzz Everything for Home Renovation Coresight Research October 22, 2015 Executive Summary Houzz is an online home remodeling community that connects homeowners with design inspirations and home professionals. The six-year-old startup is poised to disrupt the billion-dollar home improvement market Its business model is driven by community, content and commerce. Since 2014, the company has expanded to 15 countries outside the US with localized websites and content. Recent acquisition of Gardenweb solidifies Houzz’s status as the leading community for home remodeling 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 ReportEXPLORIUM DISCOVERING THE FUTURE OF RETAIL Coresight Research October 18, 2015 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 CoverageBrand Licensing Europe 2015 Coresight Research October 16, 2015 Executive Summary The global licensing industry generated $241.5 billion in retail sales in 2014. More than half of global licensing revenues are generated in North America. Character and entertainment is the largest license sector. This document was generated for
Flash ReportAlibaba Launches Singles’ Day Global Shopping Festival Coresight Research October 15, 2015 Executive Summary On October 13, Alibaba Group launched its 2015 11.11 Global Shopping Festival in its Hangzhou headquarters in China. This year, Alibaba is estimating that Singles’ Day gross merchandise value (GMV) will reach $12.6 billion, up 35.5% from last year. Despite China’s economic slowdown and stock market turmoil, its e-commerce sector is still going strong. Alibaba’s Singles’ Day campaign is poised to benefit from this steady growth. The recent Alibaba-backed merger of group-buying companies Meituan and Dianping and Alibaba’s acquisition of video platform Youku Tudou have further strengthened the company’s leading position in China’s Internet and commerce spaces. This year, Singles’ Day will be more international than ever. Click here to read more Coresight coverage of Singles Day over the last few years. This document was generated for
Insight ReportBirchBox Launches Its Own Beauty Label Coresight Research October 15, 2015 Executive Summary On October 15, US beauty retailer Birchbox launched its first private-label products. The company, which until now had offered only branded lines in its home-delivered beauty boxes, launched its LOC (Love of Color) brand lipsticks and eyeshadows. 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 PresentationTop Ideas on Global Retail and Tech Coresight Research October 14, 2015 Executive SummaryFBIC TOP 15 RETAIL & TECH TRENDS Ecommercification: More Convenient Payment In-Store Shopping Becomes More Purposeful Webrooming Increasingly Personalized Shopping At-Home Beauty Devices Limit Salon Visits Geofencing and Beacons Enable Location-based Marketing Frictionless Retail Experience New Perspective on Back-End Visibility Retail Real Estate Supply Conditions—Announced Store Closures The Sharing Economy Model International Invaders are Coming Retailers Experiment with New Store Formats E-Commerce Opening Brick-And-Mortar Stores Smart In-Store Displays 3D Printing in Retail Stores 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 UpdateWalmart Plays Catch-Up in Investing in the Business Coresight Research October 14, 2015 Executive Summary Walmart held its annual investor day today in New York. The presentation focused on Walmart stores in the US and e-commerce. Overall, the company is working to improve its in-store experience and developing a seamless offering through the expansion of its e-commerce/m-commerce capabilities. These efforts, though a long time coming and necessary, could ultimately take time to bear fruit, and the next several years could prove to be a period of transition. The company reset the bar in terms of its guidance for the next few years: it will ramp up investment spending as it makes up for its lack of spending over the last several years. The bulk of the $1.2 to $1.5 billion in incremental capex will be allotted to an increase in wages for entry-level associates and to other investments in people and e-commerce. Management described the back-to-school season as “pretty good,” noted that Halloween is off to a good start and said that it expects the holidays to be highly promotional but “fine.” The US economy was characterized as “okay,” “steady” and “generally in pretty good shape.” Management believes consumer sentiment and willingness to spend have improved. A key focus of the presentation—and a topic that elicited numerous questions—was existing and incoming competition in the discount space. Walmart plans to recapture its position as the low-price leader and widen its margin versus competitors, though management noted that this would likely happen over the mid to longer term. Walmart is continuing to invest in the e-commerce segment and in building out its offerings. Examples include in-store pickup capability for online/mobile orders and grocery delivery, which will be available in 20 markets by the end of the year and will continue to expand. This document was generated for
Analyst CornerWeekly Insights Oct 14, 2014 Coresight Research October 14, 2015 This document was generated for
Insight ReportEXPLORIUM: DISCOVERING THE FUTURE OF RETAIL Coresight Research October 14, 2015 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 ReportChina’s National Day Golden Week – Currency Matters Coresight Research October 9, 2015 Executive Summary China has two seven-day national holidays per year. Traditionally, people go back to their hometown during the Lunar New Year Golden Week to celebrate at home with family, but retailers all over the world focus on the National Day Golden Week in October. A state-run news site called The Paper estimated that 4 million Chinese are planning to travel abroad during National Day Golden Week this year, an increase of 11% over last year. This document was generated for
Analyst CornerWeekly Insights Oct 9, 2015 Coresight Research October 9, 2015 Executive Summary E-commerce site Jet.com is dropping its annual membership fee in order to increase the pool of potential shoppers In a move to curb plastic waste, the UK government has introduced a levy of 5 pence (US$0.08) per shopping bag given out at supermarkets and large retail stores Toyota unveiled a modified Lexus GS that can drive itself on the highway, relying on sensors to navigate roads, merge lanes and overtake other vehicles International companies have reduced earnings forecasts due to declining commodity prices, rising inflation and the decline of the Brazilian currency, and US-based retailers have been unable to raise prices to offset the currency’s fall This document was generated for
