Pet retailer Chewy made a splash on the stock market this week. The online company priced its initial offering at about $22 per share, valuing it at $8.77 billion. On Friday, shares climbed to $39, and the company raised $1 billion in the IPO. PetSmart bought Chewy in 2017 for $3.4 billion, but spun it off in order to help pay down its debt.
It’s not Amazon’s existence or cut-throat competitive strategies that have sealed the fate of other retailers that are losing market share, like JCPenney, Bed Bath & Beyond and Sears. Instead, it was a series of executional and strategic missteps over a critical window of time during which today’s better-equipped competitors were taking action in areas like e-commerce and logistics as well as experiences and services.
Through the official partnership, VF gets access to data from Alibaba’s 654 million-customer database across its marketplaces, including Tmall and Taobao. With that data and TMIC, VF can more readily identify customer trends, test new products before launching them, build customer data profiles and track products post-launch in order to judge how well they’re performing with Chinese customers.
In the past, Foot Locker had to figure out how to market products from companies like Adidas and Nike after it had already been created. Now, CMO Jed Berger and Foot Locker are working more closely with vendors to develop product exclusively for their stores, using customer data and insight from Berger’s marketing team that its vendor partners don’t have access to.
Fashion resellers do not have access to the same tools and strategies that brands and retailers can employ, like collaborating on a new product or dropping a hyped collection. Instead, they have to turn to other strategies to draw attention and bring in new customers. Celebrity closet sales are one way that resellers are making that happen.
Store fulfillment for online orders is something Target has been investing in heavily. Through a combination of ship-from-store, same day delivery powered by Shipt and in-store order pick-up and drive-up options, Target stores now fulfill 80% of online orders. As CEO Brian Cornell told investors during the company’s first-quarter results for 2019, it’s an operation that’s profitable for Target.
Lululemon is seeing positive results from its investments in new categories like men's, e-commerce capabilities and international growth. During its first quarter earnings report on Wednesday, the company saw revenue increase 20% over the same period last year, to $782 million.
Retailers like Ulta, Stitch Fix, Sephora and Wayfair are betting on tools that make it easier for customers to search for and test out products, thus providing them with more data about how customers decide on a product in order to improve their personalization efforts.
Showfields, the experiential rotating retail space in New York City, opened on Tuesday its fourth floor, which had been under construction since the store’s opening in March. Rather than dedicate the fourth floor to more retail space, Showfields designed it to be a coworking space.
For custom apparel brand Indochino, the preference for proprietary extends beyond its products. The 12-year-old, Vancouver-based business does most of its media buying in-house, and has for most of the company's history. In 2017, it built its own attribution system to better determine the effectiveness of different marketing channels and unite online and offline data. And it operates off of its own proprietary point-of-sale system that it's installed in all 45 of its showrooms across the U.S. and Canada.
Loyalty program members are often a retailer’s most valuable customers. So to get the most value out of these customers, retailers are analyzing their purchase behaviors, including how responsive they are to certain email promotions and other marketing messages.
At its investor day yesterday, CVS Health announced that it plans to open more HealthHubs -- which are redesigned drugstores that include more health services and products -- in Houston, Atlanta, Philadelphia, Southern New Jersey and Tampa this year. By the end of 2021, CVS Health expects to have 1,500 HealthHubs.
While startups brands shift their marketing spend to physical catalogs to break out of crowded digital platforms, Ikea is taking its print catalog to Pinterest. With a shoppable catalog built into Pinterest boards, Ikea hopes to drive both awareness and conversions.
Compared to its biggest competitor Sam’s Club, Costco has been slow to push features like buy online, pickup in-store, as well as digitize the in-store experience. As the company starts to prioritize its e-commerce business, however, that's starting to change.
J.Crew and Gap are looking to spin off Madewell and Old Navy respectively, in an attempt to generate some short-term cash infusion and help their parent companies regain a sense of focus. But both of their recent earnings reports show that, even though these soon to be independent companies have been reporting solid growth for the past couple of years, they still have a tough road ahead.
As brick-and-mortar businesses struggle to stay competitive in the Amazon era, a retail revolution has occurred.
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