Yesterday, 2:41 PM
- Amazon (NASDAQ:AMZN) sees an opportunity in the U.S. to open up as many as 2K Amazon Fresh grocery stores in the next ten years, according to Business Insider.
- A 20-store pilot program is expected to be up and running by the end of 2018, with a mix of traditional-style grocery stores and online pickup locations.
- Internal documents reviewed by BI indicate that Amazon is still deciding if the stores will be tied to Amazon Prime memberships.
- Amazon's determination with a large-scale store roll-out could have significance for grocery stores and other retail chains (WMK, SVU, WFM, IMKTA, CASY, KR, SFS, WBA, CASY, WMT, TGT, RAD) as they consider their own future models.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, CNDF, FTXD, JHMC.
Yesterday, 9:47 AM
- There's some mind-blowing numbers out on e-commerce as part of the 2016 Adobe holiday season forecast.
- E-commerce sales are expected to increase 11% this year to $91.6B. Though the pace is slower than what was seen in some recent years, it still triples the overall growth rate in retail.
- Cyber Monday is set to be the largest online shopping day of all time, with $3.36B in sales anticipated.
- Large retailers are seen outpacing smaller retailers by a wide margin, 17% growth vs. 7% growth. That means more market share for Amazon (NASDAQ:AMZN), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Best (NYSE:BBY) and Staples (NASDAQ:SPLS) in comparison to chains which already have a harder time leveraging their shipping costs.
- Adobe says hot gifts this year will include virtual reality devices, Pokemon, Barbie, Lego, Hot Wheels and Frozen toys.
- A stretching out of the holiday season from early October until past Christmas could help FedEx (NYSE:FDX) and UPS (NYSE:UPS) manage the logistics more efficiently.
- Related stocks: SNE, HAS, MAT, NILE, EBAY, DIS.
- Related ETFs: IBUY, XRT.
- Full Adobe report
Tue, Oct. 25, 3:41 PM
- Target (TGT -0.6%) announces that it will offer free shipping for all digital orders from October 25 through January 1, 2017.
- The company is also offering free returns and an extended Price Match Guarantee program, which allows customers to price match any purchase from November 1 through Dec. 24, except for Thanksgiving through Cyber Week.
- Earlier today, Best Buy announced free holiday shipping.
- Previously: Free online shipping again from Best Buy for holiday season (Oct. 25)
- Source: Press Release
Thu, Oct. 20, 1:40 PM| Thu, Oct. 20, 1:40 PM | 4 Comments
Tue, Oct. 18, 6:28 PM
- Former Wells Fargo CEO John Stumpf, who resigned from the bank last week after ~2M accounts were opened without customer authorization, has left the boards of Chevron (NYSE:CVX) and Target (NYSE:TGT).
- CVX said in an SEC filing that Stumpf left the board “for personal reasons and not as a result of a disagreement with Chevron.”
- According to Wells Fargo’s latest proxy statement, CVX and TGT were Stumpf’s only outside board seats at publicly traded companies.
Mon, Oct. 17, 1:02 PM
- Investors appear to be a little edgy about the chain store sector with the earnings season just starting to ramp up.
- Dillard's (DDS -4.3%) and Bon-Ton Stores (BONT -5%) are down significantly, while Kohl's (KSS -1.3%), Big Lots (BIG -0.7%), Fred's (FRED -1.6%), Target (TGT -1.2%), Five Below (FIVE -2.6%), Pier 1 Imports (PIR -5.3%), and Barnes & Noble Education (BNED -2.4%) are all tracking below broad market averages.
- There isn't a lot of consensus about what's been holding back U.S. consumers. Today, higher gas prices is being floated around as a factor, while last week it was election anxiety.
- 12-month chart of gas prices in the U.S. via GasBuddy.
- Previously: Retail sales track higher as expected (Oct. 14)
- Previously: Winners and losers from the retail sales report (Oct. 14)
- ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, CNDF, FTXD, JHMC.
Fri, Oct. 14, 9:05 AM
- Retail sales increased 2.7% Y/Y and 0.6% M/M in September on broad gains across categories. The sales totals for August were also nudged slightly higher.
- Sales from nonstore retailers like Amazon (NASDAQ:AMZN) were up 10.6% Y/Y to once again account for a higher percentage of overall sales.
- The building material & garden equipment category showed a 1.4% M/M and 5.6% Y/Y gain which bodes well for Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Department stores (DDS, SHLD, JCP, M, JWN) lagged again as sales fell 0.7% M/M and 6.4% Y/Y, while furniture and home furnishing stores (HVT, WSM, KIRK, RH, BBBY) outpaced the broad averages in the sector.
- Restaurant sales (NASDAQ:BITE) showed a nice jump from August, although the breakdown between large publicly-traded chains and independent restaurants isn't broken down.
- The early take from retail analysts is that the overall tone from the report is ever-so-slightly positive for Wal-Mart (NYSE:WMT) and Target (NYSE:TGT).
- Previously: Retail sales track higher as expected (Oct. 14)
Sat, Oct. 8, 9:09 AM
- Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
- "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
- Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
- It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
- Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
- Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Thu, Oct. 6, 9:40 AM
- Wal-Mart (NYSE:WMT) management is talking quite a bit about e-commerce during its Investment Community presentation.
- While that's not a surprise, there's still an underlying tone that the company's strategy is to ride out the extra costs of tech and e-commerce investments in order to adapt and evolve.
- "We’re moving with speed to position the company to win the future of retail," noted CEO Doug McMillon. He also said point blank that the world's largest retailer is going to look more like an e-commerce company over time. That's a stipulation that may have been inconceivable three or four years ago.
- Keeping with the e-commerce theme, guidance on store openings for the next two years was on the light side.
- Naturally, the $3B acquisition of Jet.com was a talking point
- The retailer also disclosed in a SEC filing yesterday that it has increased its position in JD.com to 10.8% of the shares that don't have voting power.
- Shares of Wal-Mart are down 2.69% in early trading after the company's guidance came in below expectations.
- The all-in bet by Wal-Mart on e-commerce has implications for other online sellers such as Target (NYSE:TGT), Staples (NASDAQ:SPLS), Best Buy (NYSE:BBY) and (of course) Amazon (NASDAQ:AMZN).
- Previously: Wal-Mart execs in the spotlight at investment meeting (Oct. 6)
Wed, Oct. 5, 6:35 AM
- Target (NYSE:TGT) will cut the ribbon on its 45,000-square-foot Tribeca store today, its latest effort to penetrate dense urban markets with smaller shops.
- But it will look decidedly different, as the company caters to city living.
- The store will forgo large furniture in favor of air mattresses, offer many grab-and-go items, and in place of a typical cookie-cutter food and beverage bar, it'll be home to Chobani's second cafe.
Mon, Sep. 26, 8:56 AM
- Target (NYSE:TGT) announces the departure of its chief digital officer.
- Jason Goldberger steps down after four years on the job amid a reset of the e-commerce team.
- The company says Chief Information Officer Mike McNamara and Chief Merchandising Officer Mike Tritton will take over Goldberger's duties.
- Online sales at Target have been growing at a pace below its ambitious goal of 40% or better.
- TGT +0.33% premarket to $69.00
Wed, Sep. 21, 10:18 AM
- Wal-Mart (WMT +0.4%) began online grocery pickup in four stores in Minneapolis today, with a fifth outlet due to start the service on October 6.
- The roll-out in Minneapolis is notable with the stores not far from the headquarters of Target (TGT +1.1%).
- 30K Wal-Mart items are eligible for online grocery pickup. The minimum order amount is $30.
- Target decided earlier this year to focus on its Instacart partnership instead of a store pickup service.
Wed, Sep. 21, 8:29 AM
Wed, Sep. 21, 8:11 AM
- Target (NYSE:TGT) announces it launched a new $5B share repurchase program. The company says it will begin repurchasing shares under the new authorization after the current $10B program is tapped out, likely before the end of the fiscal year.
- Target also declared a quarterly dividend of 60 cents per common share.
- “Today’s announcements reinforce Target’s longstanding commitment to thoughtfully returning cash to shareholders while continuing to prioritize investing in our business,” says CFO Cathy Smith.
- Source: Press Release
Fri, Sep. 16, 3:51 AM
- "Competition has been fierce," Target (NYSE:TGT) CEO Brian Cornell told employees gathered at the company's annual meeting, urging them to deliver a better in-store and online experience before the holiday season.
- Last month, Target's Q2 traffic and sales at stores open at least a year fell more than expected, and the retailer said it expected comparable store sales to either stay flat or fall by as much as 2% in the second half of 2016.
Thu, Sep. 15, 1:59 PM
- A new report from Moody's makes the argument that brick-and-mortar retailers such as Wal-Mart (WMT +1.2%) and Best Buy (BBY +0.1%) are thriving due to their sheer physical size. The ratings agency doesn't believe mass store closing are in the future, but sees a continuing trend toward "repurposing" of the store fleets to evolve to the multi-channel world.
- The pitch runs counter to the calls from some analysts for a mass reduction in square footage by major chains.
- Moody's on WMT: "Walmart's recent acquisition of Jet.com, while not a threat to Amazon's position, provides Walmart a speed advantage in boosting online growth by leveraging Jet's ready-made platform."
- Moody's on BBY:" Best Buy is an example of a retailer that continues to successfully transition online, with penetration approaching 20% of total sales."
- The interesting take from Moody's is probably relevant to other larger retail chains such as Staples (SPLS +1.8%), Target (TGT +0.8%), Walgreen Boots Alliance (WBA +0.3%), L Brands (LB +0.6%), Macy's (M +1%), and TJX Companies (TJX +0.8%) as well.
- Moody's press release