Hey Friends,
Retail is already feeling the holiday hangover effect….
Macy’s has decided to close five department stores and two furniture galleries, after analyzing post-Christmas performance. The decision to close the stores forced the decision to lay off 2,300 associates. After the closing of the two furniture galleries, it is likely that the company will deemphasize separate furniture galleries going forward. Macy’s has rejected a buy-out offer of $5.8B from Arkhouse Management to take the company private, citing financial concerns and the undervalue of it’s real-estate alone.
Retailers in Great Britain suffered a dire Christmas as cash-strapped consumers cut back on shopping in December, fueling the biggest fall in monthly sales since shops were forced to close during the coronavirus pandemic in 2021. Sales plummeted 3.2% month on month as retailers across the board suffered as the cost of living crisis resulted in consumers making tough decisions, including choosing between buying food or presents
Wayfair announced that it is laying off 13% of it’s workforce, roughly 1,650 employees globally. In recent news, Wayfair has been vocal about it’s preference for employees working in an office, with remote-workers being most impacted by this round of layoffs.
Neighborhood Goods has decided to close it’s 4 stores. Launched in 2018, the multi-chain retailer opened as an alternative for niche brands to get into the wholesale market.
Fashion retailer Revolve Group has announced the reappointment of Jennifer Baxter Moser to its board of directors, effective immediately. Baxter Moser’s appointment comes as the owner of fashion platforms Revolve and Fwrd looks to offset a series of disappointing sales quarters. Revolve Group announced revenues for the third quarter were $257.6 million, a decrease of 4%, citing decline in average spend per active customer, and dips across both brands and regions.
According to a study conducted by Total Retail, Social shopping (which includes livestream shopping and online shopping events hosted by brands and retailers) is growing 28.4% annually and will generate over $3 trillion by 2028. To meet customer demands in the social shopping era, staying on top of stock visibility and ensuring that the data is integrated across all different touch points is essential.
Walmart announced last week that the average salary for store managers will go up about 9.4%, from $117,000 to $128,000 a year. Each store manager at Walmart’s 4,700 stores in the US will receive this pay raise.
Walmart has shut down its technology and business innovation incubator. Since it’s debut in 2017, this hub was responsible for introducing retail innovations such as shopping via text, voice commerce features, and the InHome direct-to-fridge delivery service.
In a recent study by PYMNTS that looked at retail subscription habits and it’s impact on merchants, while subscription rate has never been higher, 18% still prefer to shop in-store. 42% of consumers reported fewer visits to brick-and-mortar under subscription services, but stated that product selection, availability and a lack of subscription services to offer a one-stop-shop for all goods.
And to finish slightly off-topic……according to data sources, in the days leading into the Jan. 13 wildcard game between the Miami Dolphins and Kansas City Chiefs, Peacock gained 2.8 million new subscribers to its $5.99-per-month tier. The NFL Wild Card game, "shattered prior ratings," drawing in an average of 23 million viewers and making up 30% of internet traffic. I expect other events to follow suit, and open the avenue for retailers to host subscription service based events in the future.