Hey Friends,
Halloween has officially passed which means the holiday season is upon us. To begin I wanted to share an interesting article I found on Spirit Halloween and their approach to short-term success. The retailer opened a record 1,506 stores this season, up more than 50 stores from 2022. Locations have more than doubled since 2009, and inventory turnover is minimal year to year. The retailer hires over 40,000 seasonal employees and it takes just nine to eleven days to stand-up a store. According to the NRF, total Halloween spending is expected to reach a record $12.2 billion, exceeding last year’s record of $10.6 billion.
Early retail earning reporting has begun with Amazon, McDonalds amongst others reporting strong results. Roughly half of the S&P 500 (.SPX) companies have reported results thus far, with more than 77% exceeding results. Consumer discretionary companies have been the biggest surprise, on average exceeding earnings-per-share estimates by 19%. A full retail earnings report will be shared in the upcoming weeks.
UPS announced this week that it has entered into an agreement to acquire Happy Returns from PayPal. Happy Returns is a U.S.-based software and reverse logistics company that enables frictionless, no-box, no-label returns for merchants and consumers. UPS expects the service will soon be available at more than 12,000 locations in the U.S.
This week Walmart has announced it is investing more than $9 billion over a two-year period to upgrade and modernize some U.S. stores with improved layouts, expanded product selections and new tech additions. These investments are aimed at changing the retailers image from merely a steep discounter to a destination where customers can also purchase fashionable home goods and clothing. Some of the investments include refreshed interiors and exteriors, with new paint, updated flooring, modernized restrooms, LED-lighting and new signage for brighter and easier navigation through the stores, the company said.
Ulta expands wellness spaces to more than 1,300 stores The beauty retailer, which is also expanding its assortment and emphasizing a “spa-like” atmosphere, is poised to do well at the holidays, analysts said.
Sustainability remains in top focus for Amazon……Amazon outlines push to ‘eliminate packaging altogether’ As the company looks to remove added packaging from more orders in 2024, its packaging innovation director explains how items are slotted into the Ships in Product Packaging program.
Zebra Technologies has released its 16th Annual Global Shopper Study. Zebra's 2023 Global Shopper Study unveils valuable insights from shoppers, associates and decision-makers, offering a new perspective on the evolving retail landscape. Some highlights below:
~90% of associates feel that the latest technology at their disposal enhances the customer experience – and most shoppers agree.
85% of associates agree real-time inventory visibility helps provide shoppers with a better experience, and retail executives point to automating inventory as a leading driver of profitability.
75% (+17 %YoY) of shoppers prefer to shop at online retailers that also have brick-and-mortar locations.
There has been some big news in big box retail over the past couple of weeks……
Kohl’s holiday look previews the retailer’s plans to snap out of sales slump. Kohl's holiday season will reflect the retailer's latest effort to refresh its stores and lift its stock. The company is adding more pet merchandise, home decor, and impulse and gifting items to drive sales. It marks the first holiday season overseen by Kohl's new CEO, Tom Kingsbury, and chief merchant Nick Jones.
Ross Stores, Inc. appointed Stephen Brinkley to the newly created position of president of operations, where he will oversee the off-price retailer's supply chain, along with stores and property development. Brinkley has previously served with SportChek, Target and Circuit City. Last fiscal year, Ross spent $270.2 million in capex on distribution and transportation and is planning more investments in its supply chain.
HomeGoods gives up on online shopping to focus on physical stores. The TJX Cos. division plans to focus on its 900 stores. The retailer’s other online stores are not closing. HomeGoods is getting out of the online shopping business after only two years. Final orders from customers were taken Saturday, Oct. 21.
Dollar General is making some changes in the C-suite. The discount retailer said it brought back former CEO Todd Vasos to replace Jeff Owen “to restore stability and confidence” in the company.
Peak retail season is right around the corner and retailers are announcing their peak season hiring plans and strategy for managing holiday demand. Stay tune to This Week in Retail to stay up to date on the latest.