Coming off a strong 2020, Target’s latest earnings exceeded estimates. In its 2021 first quarter earnings report, the company recorded double digit growth and increased its market share. Target execs credited investment in store visits, pickup and delivery for the growth. But, the company said that private label lines were also a major driver of sales, reaching a record 36% in sales growth.
At its most recent earnings, Walmart reported 37% year-over-year growth in its e-commerce sales, a strong number from a company that is on the verge of being overtaken by Amazon in the retail sector -- and whose executives have expressed concerns about rising competition from Amazon and Instacart.
Last year, Home Depot and Lowe's reported huge sales gains on the backs of people spending more time -- and more of their money -- at home. Now, the question is whether or not these gains can continue into 2021. During their first quarter earnings calls this week, Home Depot and Lowe's laid out their respective strategies for retaining customers this year.
Amazon brought in $52.9 billion through its online stores in the first quarter of 2021, by far its largest category of revenue. But other sectors of its business -- including seller services, subscriptions, AWS and advertising -- have continued to see big surges. But competitors, including Facebook and Shopify, are also seeing big commerce gains.
Nike has managed to fend off significant sales losses during the pandemic, but that doesn't mean it was immune from any headwinds. The company reported during its fiscal third quarter earnings today hit net revenue of $10.4 billion, up 3% year-over-year, while e-commerce sales were up 59% year-over-year. However, that represents a slowdown compared to 9% revenue growth and 84% e-commerce growth during its second quarter.
During its fourth quarter earnings, Kohl's executives focused their remarks on how the company plans to bring shoppers back to store next year. The company reported today that during its fourth quarter, net sales were down 10% year-over-year, while online sales were up 22%. Kohl's still managed to report a profit of $343 million. Now, Kohl's is preparing for the launch of a new private label athleisure brand later this month, as well as the launch of new Sephora shop-in-shops in August, to try and drive customers back to stores.
After a year of significant e-commerce growth, Best Buy executives said the company is now focused on preparing for the shift to online shopping to remain permanent. During its fourth quarter earnings on Thursday, Best Buy reported that e-commerce sales were up 90%, and now represent 43% of its total sales. CEO Corie Barry said that the company is projecting that next year, e-commerce will still make up roughly 40% of sales. In order to prepare for this shift, Best Buy is rethinking both how its stores look, and how it staffs those stores.
During its fourth quarter earnings call, Macy's executives made it clear that they are betting on e-commerce to help the department store chain recover from the pandemic, as they tried to position the company as a "digitally-led" retailer. Digital sales were up 21% year-over-year, and its e-commerce division is now profitable. But Macy's is still trying to figure out how to differentiate its website from those of of other big-box retailers or department stores.
Almost six months after its official debut, Walmart+ has been one of the retailer's successful coronavirus-era rollouts. With Walmart's growing e-commerce sales over the past year, the membership program may help keep the momentum going. In turn, Walmart's answer to Amazon Prime stands to build on the retailer's online grocery and essentials delivery business long after the pandemic.
Nearly a year after sales for its connected indoor bikes surged, Peloton is still struggling to fulfill demand in a timely manner. The fitness company, which went public shortly before the pandemic, is heavily investing in owning the supply chain and reducing delivery windows.
The fourth quarter closed out a record year for the company, and it put Amazon’s overall net sales in 2020 at $386.1 billion -- up a full 38% from 2019. That growth is buoyed by a big year for its third-party seller and its rapidly growing ads business. In its predictions for next quarter, Amazon only expects those gains to slow down slightly.
During its third quarter earnings on Tuesday, Walmart reported slower sales growth compared to the prior quarter. America's biggest retail chain is seeing fewer people panic-buying compared to the earlier days of the pandemic, and its shoppers have less money to spend as any enhanced benefits from the CARES Act have no run out. However, Walmart's e-commerce business in particular continues to make steady gains against competitors.
Amazon unsurprisingly posted record third quarter earnings. Sales exceeded expectations, as did profit. Still there were a few things of note. Amazon didn't highlight its third-party sellers as much as past years, for example. It did, however, nod to its growing suite of new revenue engines. Here's a look at the e-commerce giant's most recent earnings.
PepsiCo.'s latest quarterly earnings show tremendous growth among digital channels. They include e-commerce sites like Snacks.com and Pantryshop.com, whose sales have doubled since launching in May. This growth is the latest evidence that big CPG brands are taking steps to ease their reliance on wholesale and better compete with emerging brands. Recent examples include Clorox's big foray into DTC, as well as Heinz Kraft's Heinz to Home platform it operates in the U.K.
During its fiscal first quarter earnings, Nike reported that sales were down 1% year-over-year. In today's retail environment, that's a success. The athletic apparel reported that while it's still not seeing the same in-store traffic that it was a year ago, it's digital sales are up 82%, even as more than 90% of its stores were reopened. Nike's benefitted from seeing a huge increase in downloads of its apps, which include its main Nike shopping app, Nike Train Club, and Nike Run Club.
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