Executive Summary

  • Macy’s announced a joint venture with Fung Retailing Limited to explore retailing in China starting in late 2015
  • Alibaba is paying US$4.6 billion for a 19.99% stake in Suning, a major Chinese electronics retailer with 1,600 stores in 289 cities
  • Costco plans to open its first store in France, the first of up to 15 stores planned over the next 10 years
  • Havaianas, the Brazilian footwear maker, is entering into a new strategic alliance with several Disney properties, and the two companies are collaborating on the design of cobranded flip-flops

Executive Summary

Warehouse club stores have enjoyed years of revenue growth, and clubs continue to post solid results despite flattish US retail sales. With the breakneck pace at which many technologies are evolving in the mobile and e-commerce worlds, we examine new opportunities — as well as potential risks — that could either curtail the current health of the industry or elevate it to the next level. In this report, we examine several major themes, the risks and opportunities as they apply to warehouse club stores, including:

  • Sourcing and production: Domestic production, direct imports and onshoring versus nearshoring.
  • Product identification: RFID tags and holograms.
  • Supplier traceability: The genuineness of goods, the gray market and market for diverted goods.
  • Pharmacies: Favorable long-term trends include an aging population and a strong drug pipeline.
  • Private Label: Exclusives driving traffic and profit growth.
  • Amazon and Jet.com: How does Amazon affect warehouse clubs, and what is Jet.com’s business model?
  • Margins: What is the structure of and changes to margins?
  • Mobile commerce: What can warehouse clubs do to enhance the mobile user experience in store?
  • E-commerce in China: What is happening in China’s e-commerce, and what can be transplanted to the US?
  • Robotics: What is the state of the robotics industry and what are other retailers doing with the technology?
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Executive Summary

Coresight 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 monthly US Same-Store Sales Report reviews comparable sales metrics reported by Costco, Buckle and Cato.

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Executive Summary

  • This week, FBIC attended the inaugural RISE tech conference in Hong Kong, hosting 525 start-ups and 5,000 attendees over two days
  • Neiman Marcus Group submitted its filing for an initial public offering, seeking to raise up to $100 million
  • Etsy, the online marketplace for handmade items, is set to launch in Selfridges as part of the store’s “festive concept space”
  • Celesio, parent of both LloydsPharmacy and Sainsbury’s, announced that LloydsPharmacy will acquire Sainsbury’s pharmacy business for US$195 million

Executive Summary

  • Stich Fix provides seamless and personalized style service based on information obtained via a 10-minute style survey
  • Stitch Fix then sends the customer a well-packaged box of five items that may include tops, dresses, jewelry and accessories
  • Over 70% of customers purchase at least one item out of five shipped in each order
  • While some companies provide similar styling services, Stich Fix is more advanced in funding rounds and offers better price points than its competitors
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Executive Summary

  • UK general merchandise retailer Argos claims to be the first British retailer to generate £1 billion in annual m-commerce sales.
  • Photo and video sharing platform Instagram will take in $2.81 billion from mobile advertising revenues, surpassing those of Google.
  • Brazilian e-commerce sales grew by 25.3% to an estimated US$14 billion in 2014 and could hit US$20 billion within five years.
  • Desigual plans to open 450 new stores in Latin America over the next two years, including five new stores and five store-in-a-stores in Mexico this year.

Executive Summary

  • Automobiles are logically the next devices to be connected to the Internet, since we spend so much time in them and want connectivity everywhere
  • They will function as nodes in the Internet of Things (IoT), which is forecasted to encompass 50 billion devices by 2020
  • The key new functions of connected cars will be in the area of driver assistance, followed by safety, and then entertainment
  • Tesla is the current connected-car leader, providing over-the-air software updates that provide new functionality and reduce repairs and maintenance, and other well-known companies are developing their own technologies
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Executive Summary

  • Jet.com made a splash with its public launch this week, offering free six-month trial memberships and prices it claims are 10–15% cheaper than those from other e-commerce companies
  • The National Retail Federation reduced its forecast for US retail growth this year to 3.5% from 4.1%, due to unfavorable weather, labor issues at West-Coast ports, and the stronger dollar, among other issues in the first half of the year
  • Unilever announced a partnership with Alibaba Group to help its products reach more Chinese consumers
  • Retail e-commerce in Latin America is expected to grow 23.9% this year to reach nearly US $50 billion
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Executive Summary

  • This week, the FBIC Global Retail & Technology team followed Amazon Prime Day around the clock
  • According to the NRF’s Back-to-School Spending Survey, the average family with children in school plans to spend $630.36 on electronics, apparel and other school needs this year, 6% less than last year
  • Japan’s famous hospitality also faces low productivity, however the government is seeking to double service productivity growth by 2020
  • Mexico’s media industry is expected to grow by 5% this year due to a digital boom in luxury and women’s lifestyle magazines, and retail is benefiting from the opening of luxury flagship stores in Mexico City
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