Hey Friends,
Retail sales rose 0.7% on the month, well above the 0.3% Dow Jones estimate. Excluding autos, sales were up 0.6%, also well ahead of the forecast for just 0.2%. According to the latest Commerce Department report, sales gains were broad-based on the month, with the biggest rise coming at miscellaneous store retailers, which saw an increase of 3%. Online sales climbed 1.1% while motor vehicle parts and dealers saw a 1% increase and food services and drinking places grew by 0.9%, good for a yearly increase of 9.2%, which led all categories.
In some Amazon News….Amazon partners with Petco in latest expansion of return drop-off footprint. Petco operates more than 1,500 locations across the U.S., Mexico, and Puerto Rico. Kohl’s has previously stated that it added 2 million new customers in 2020 thanks to its Amazon partnership. Earlier this year Amazon began charging some customers $1 for returns made at UPS stores (if there is a free option closer to the delivery address) in a bid to reduce expenses. It also rolled out a new feature that flagged “frequently returned” products.
In some technology news…PayPal has introduced a new package tracking feature on its app. This feature streamlines the process of tracking online orders by automatically collecting and displaying shipping information from Gmail integration. Users with Gmail accounts linked to PayPal will benefit from this automated tracking, while those without Gmail accounts can input tracking details manually. This feature eliminates the need to enter order numbers on carrier websites or search through email inboxes for delivery status.
Walmart is set to open a fifth "next-generation" fulfillment center in Stockton, California, by 2026. This 900,000-square-foot facility will enhance the retailer's ability to process online orders quickly and efficiently, especially in the West Coast region. Walmart aims to improve its next- and two-day shipping capabilities through optimized processes at such facilities.
Klarna, one of the largest online and e-commerce fintech providers, has introduced 13 new features to enhance its shopping app. These developments include a shopping lens that enables users to take photos and find where to purchase items through AI-powered image recognition and search. The app also offers a search and compare tool to find the best online deals for similar products. Additionally, users can now scan barcodes to access product information, customer reviews, and price comparisons for about 10 million products. The app also facilitates payments through QR code scanning at integrated retailers.
For those who have been following knows I love a good survey….According to a Shopify and Gallup survey of 1,761 U.S. consumers, 74% of shoppers expect their holiday gift budget to remain the same or increase compared to last year, with 37% of Gen Z shoppers planning to spend more. Around 41% of shoppers intend to start their holiday shopping in October, 39% in November, and 20% in December. While 93% of shoppers plan to buy some gifts online, 47% anticipate buying all or most of their gifts online. Additionally, 48% of Gen Z consumers plan to buy gifts through social media, and the same percentage would buy their holiday gifts early if retailers introduced deals and promotions sooner.
Nike continues to be the favorite footwear and clothing brand among teenagers, as per a survey by Piper Sandler involving over 9,000 teens. Sephora is the top beauty retailer for 37% of respondents, followed by Ulta (32%), Target (9%), Amazon (5%), and Walmart (5%). In e-commerce, Amazon dominates as the preferred shopping site for 55% of respondents, followed by Shein (12%) and Nike (7%).
And to wrap up….Retail Dive announced their annual retail conferences to watch in 2024. The full list can be found here and are headlined by NRF’s Retail's Big Show and Shoptalk.