Beyond pop-ups: How brands look for low-cost ways to test physical retail

Typically, the path to opening a permanent physical store for older DTC brands like Casper and Glossier looked like this: open a few pop-up stores in the cities where most of your customers are, make sure that they're stacked with highly Instagrammable displays and events, and use those pop-ups as a training ground for opening up your own physical retail stores. But even pop-ups that only run for a few months can be expensive. So, many younger brands are trying to strike partnerships with other DTC brands to display product in their stores for a limited period of time, or partner with companies outside of retail to display product or host events

Top Stories Nov 21

How Target’s private label strategy is boosting its margins

Target reported better-than-expected earnings results, and its stock has been soaring. Much of its recent success was thanks to its growing private label program, which gave the retailer better margins. The question remains whether the company can sustain this momentum as it scales more lines.

As Kroger Wine expands, more retailers are looking toward alcohol e-commerce

Kroger is continuing to roll out its online wine program. Today, it announced some new features and more locations. Put together, the grocer is trying to be a leader in the alcohol e-commerce space. It's certainly something that's ripe for the picking.

Home Depot's digital investments are not paying off as expected

In 2017, Home Depot unveiled "One Home Depot," which called for the company to invest $5.4 billion over the next three years to improve e-commerce capabilities, add more fulfillment capabilities like buy online, pickup in-store, and to redesign the website for its business-to-business customers, which the company refers to as "Pros." In return, Home Depot expected sales to hit $120 billion by 2020. But, Home Depot is finding that it's taking longer than expected to roll out some of its new capabilities.

Other news to know

  • During its third quarter earnings on Wednesday, Lowe’s reported that its e-commerce business grew by just 3%, while biggest competitor Home Depot reported the day before that online sales grew by 22% during the same period. CEO Marvin Ellison said during a call with investors that e-commerce is “still a bit of a mystery for us,” but that it’s looking to improve growth by revamping its website.
  • Victoria’s Secret continues to lose market share as it struggles with increased competition — from both big-box retailers like Target and Walmart and digitally-native brands. Parent Company L Brands reported during its third quarter earnings on Wednesday that comparable sales at Victoria’s Secret fell 7% quarter-over-quarter. Its Bath and Body Works brand, however, reported comparable sales growth of 9%.
  • PayPal is acquiring Honey, a browser add-on and app which allows customers to track prices and find coupons for particular products. The company said it plans to integrate some of Honey’s features into the PayPal and Venmo apps.
$4 billion
Amount PayPal is paying to acquire Honey
Latest Stories
How Poshmark uses small local events to drive engagement and retention

How Poshmark uses small local events to drive engagement and retention

Poshmark has over 7 million sellers on its resale platform. One way it's been trying to garner more engagement and retention is by facilitating small local events for these users. The company is now trying to invest further in this events program, as it tries to scale and potentially go public.

'An arms race': How retailers are trying to win on delivery ahead of the holidays

Fast, reliable delivery options have become table stakes for today's brick-and-mortar retailers, thanks to Amazon. Now, they're also becoming an  important part of these retailers' marketing strategies in the run up to big holiday sales days like Black Friday and Christmas. In the lead up to Black Friday, many retailers are dropping the minimum order value needed for customers to get free shipping altogether, or are giving their most loyal customers access to the fastest delivery and fulfillment options for free.

Evaluating Essential KPIs of Retail Media Success
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Evaluating Essential KPIs of Retail Media Success

Retail media is rich with data that the right team of analysts and strategists can help you unpack to better understand how your investment at retail is driving bottom lines. One metric doesn’t fit all; in fact, a combination of KPIs might be necessary to fully grasp sales success.

Why Under Armour is struggling with its direct-to-consumer business

Why Under Armour is struggling with its direct-to-consumer business

Under Armour, like many other brands that have relied historically on wholesalers to sell its product, wants to generate more revenue from its own website and stores. But, its direct-to-consumer business has struggled for a couple of reasons. In order to right the ship, Under Armour is looking to open more full-price stores, continue to highlight the technical innovation in its apparel and performance wear, and build a new e-commerce platform.

Modern Retail Research: Amazon is the second-most effective platform for driving sales

Everyone loves to hate on Amazon. The e-commerce juggernaut ranks low on trustworthiness, DTC brands don't want to sell on it, and even Nike is no longer going to be working with Amazon Retail.

'I'm in Facebook every day, and I’m freaking out right now': Confessions of a DTC marketer

'I'm in Facebook every day, and I’m freaking out right now': Confessions of a DTC marketer

There's a rising supply of direct-to-consumer brands eager to hand over money to agencies to help them with their Facebook marketing. In the latest edition of our Confessions series, in which we offer anonymity in exchange for candor, we speak to a former marketer who cycled through several agencies -- ultimately landing at one that focused mostly on direct-to-consumer brands -- before going freelance.

Nike's Amazon departure highlights bubbling brand tensions

Nike made the announcement that it would no longer have a brand presence on Amazon. This move highlights the calculus businesses make about how they should interact with the e-commerce platform. As a result, a debate is ensuing about whether brands need Amazon or Amazon needs brands.

Media buyer’s guide: Using data to establish identity
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Media buyer’s guide: Using data to establish identity

As the need for identity grows in importance and relevance, marketers are realizing now more than ever before that external support is needed in making identity solutions a reality.

To grow its direct business, Nike is looking to get more out of its app users

While other retailers like Target and Walmart have consolidated the number of apps they offer in recent years, Nike has centered its app strategy around building a handful of apps to serve specifics audiences. There's Nike's main app, Nike+, to which Nike has added more features in recent years to make it easier to shop in-store. SNKRS targets sneakerheads with limited edition product drops, while Nike Train Club and Nike Run Club are marketed towards fitness fanatics who want an app to help them manage their workouts. In total, Nike has more than 170 million users across its family of apps.

Amazon Strategies
Jan 28–Jan 29, 2020

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