Tue, Jan. 6, 10:11 AM
Sat, Jan. 3, 7:51 PM
- The intense competition in retail over free shipping policies is expected to bring some pain to Q4 margins as big box and e-commerce firms scrap for market share, warn analysts.
- ComScore reports that free delivery on online purchases rose to 68% in 2014, up from 44% last year.
- Amazon (NASDAQ:AMZN): 2014 shipping costs were up 32% through Q3. That mark comes before a holiday season in which the company says it saved customers a mere $2B in shipping fees.
- Wal-Mart (NYSE:WMT): The Bentonville giant has already warned investors it will spend heavily on e-commerce and fulfillment center expansion as it eyes +30% growth in online sales. The company may have difficulty dialing back its free delivery policies, say industry insiders.
- Target (NYSE:TGT): Wolfe Research projects a 1% shift in Target sales to e-commerce cuts into the firm's profit margin by 5 bps.
- What to watch: Online sales rose 16% in Q3 vs. 4% for broad retail, a differential that is expected to have widened in Q4. Retailers with a sharp shift in mix to online could have trouble hitting consensus EPS estimates.
- Related stocks: BBY, DKS, CAB, SPLS, TJX, BIG.
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, UGE, RCD, PEZ, PSCD, SZK
Dec. 30, 2014, 11:47 AM
- Best Buy (BBY +0.2%) and Staples (SPLS +0.3%) are increasing their reliance on "creative" sub-leases in order to trim square footage costs, according to ICSC.
- The trend in retail towards downsizing is expected to become even more pronounced in 2015.
- Sears Holdings (SHLD -1.9%) shifted into a real estate management mode over a year ago, aided by prominent deals with Dick's Sporting Goods and Whole Foods Market.
Dec. 23, 2014, 2:59 PM
- The strong reads on consumer spending (ICSC, Redbook) bode well for Q4 earnings in the retail sector, note analysts.
- Electronics sellers (BBY, HGG) and the luxury sector (RL, TIF, COH, KORS, KATE, FOSL, VRA) are viewed as being in a good position to see a December boost.
- Companies which eased off on pulling a bulk of their sales forward with Black Friday/Cyber Monday deals are also seen as potential winners with sub-$2 gas resetting some holiday budgets.
- Though e-commerce is expected to dazzle again this holiday season. It's not all fun and games for analysts looking at margins. The extension by Amazon (AMZN -0.1%) of its free shipping offer could be a signal that inventory levels are higher than anticipated and that the growth-at-all-costs mentality at the company is as entrenched as ever, notes Nasdaq Advisory Services.
- The S&P Retail ETF (NYSEARCA:XRT) has doubled up the return of the S&P 500 over the last 3 months, 10.8% vs. 5.1%.
- Previously: Retail trends to watch: Athleisure, P-E buyouts, and new online channels (Dec. 20 2014)
- Related ETFs: XLP, XLY, VDC,VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, PSL, UGE, RCD, PEZ, PSCC, PSCD, SZK
Dec. 10, 2014, 8:21 AM
- Best Buy (NYSE:BBY) is advertising free two-day shipping on thousands of items, reports RetailDive.
- The move by the company is a reaction to the aggressive shipping promotions from Target and Amazon this holiday season.
- Analysts see a marginal mix benefit for FedEX (NYSE:FDX) and UPS (NYSE:UPS) from the increase in retailers pushing their free two-day shipping services.
Dec. 9, 2014, 8:36 AM
- Shares of Best Buy (NYSE:BBY) are lower in early trading as a crisis at Conn's casts a shadow over big box retail.
- Some retail analysts are calling the knee-jerk reaction a little overwrought considering Best Buy hasn't been as aggressive with its financing program.
- BBY -1.9% premarket vs. S&P 500 -0.7%. Shares of hhgregg (NYSE:HGG) haven't opened yet but could see some nervous trigger fingers also.
Dec. 4, 2014, 7:25 AM
- Best Buy (NYSE:BBY) plans to exit China after running into a number of challenges competing in the region.
- The company's Jiangsu Five Star Appliance unit will be sold to Zhejiang Jiayuan Real Estate Group for an undisclosed amount.
- Last year, Best Buy sold off its European business in a move that took some pressure off its bottom line.
Dec. 2, 2014, 1:05 PM
- A technical breakdown on the performance of retail e-commerce sites for Black Friday and Cyber Monday reveals some winners and losers.
- Sears (NASDAQ:SHLD), Costco (NASDAQ:COST), Office Depot (NASDAQ:ODP), REI, Saks and NewEgg drew high marks for using responsive web design to create a seamless mobile experience for users.
- Costco and Sears were also on a list of fastest sites - along with Barnes & Noble (NYSE:BKS), W.W. Grainger (NYSE:GWW), Williams-Sonoma (NYSE:WSM), and Hennes & Mauritz (OTCPK:HMRZF).
- The extended holiday was more uneven for Best Buy (NYSE:BBY), Staples (NASDAQ:SPLS), Cabela's (NYSE:CAB), and Forever 21 which had painful outages or slow performance times.
- J.C. Penney (NYSE:JCP) was reported to have had a temporary mobile glitch which caused a slowdown, but also ended up on a list of top website performers.
Dec. 2, 2014, 2:42 AM
- This year's Cyber Monday sales grew by much less than expected, according to data from IBM, as online retailers began their web promotions and sales during and even before the Thanksgiving weekend.
- Cyber Monday sales, which were projected to grow between 13%-15%, only reported an 8% rise.
- The results underline the waning importance of Cyber Monday and Black Friday, which until a few years ago kicked off the holiday shopping season.
- Related stocks: EBAY, AMZN, DKS, BBY, TGT, WMT, SPLS, M, GPS
- ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ
Dec. 1, 2014, 1:40 PM| 10 Comments
Dec. 1, 2014, 9:35 AM
Dec. 1, 2014, 7:50 AM
- Comscore estimates e-commerce spending rose 32% on Thanksgiving Day to $1.01B and 26% on Black Friday to $1.51B.
- Most retail analysts are sticking with their forecast for 4.0%-4.5% growth for holiday sales this year, with early shopping and e-commerce making up for a dip in store traffic on Black Friday.
- Apparel sellers in particular came out with a stronger online push this year.
- Related stocks: OTCPK:AMZZ, EBAY, AEO, ANF, JCP, JNY, JWN, KSS, LB, M, URBN, PSUN, BKE, WTSL, GPS, FDX, UPS, DKS, BBY, LULU, KATE, VRA, SPLS.
Nov. 28, 2014, 11:39 AM
- Best Buy's (BBY +1.8%) website is back up and running.
- In a statement to the media, Best Buy said a spike in mobile traffic caused its ill-timed outage earlier today.
- The company has been touting its price-match guarantee this holiday season which is believed to be creating large interest with shoppers.
Nov. 28, 2014, 10:16 AM
- Best Buy's (BBY +1.8%) website is down at the moment.
- A message on the retailer's home page to Black Friday consumers: "Check back soon."
- Shares of BBY have trimmed off some of their early gains, but could feel a sharper sting if the outage minutes stretch into hours.
Nov. 24, 2014, 12:01 PM
- Some data mining by WalletHub gives a sneak peek at which retailers are above and below the sector average of 39.5% on Black Friday discounting off of typical pricing.
- Retailers with above-average discount activity: J.C. Penney (NYSE:JCP) 65.44%, Macy's (NYSE:M) 63.52%, Rite Aid (NYSE:RAD) 53.34%, Sears (NASDAQ:SHLD) 50.19%.
- Retailers with below-average discount activity: Costco (NASDAQ:COST) 21.14%, Big Lots (NYSE:BIG) 25.24%, Amazon (NASDAQ:AMZN) 26.10%, Best Buy (NYSE:BBY) 32.08%.
Nov. 21, 2014, 9:06 AM
BBY vs. ETF Alternatives
Best Buy Co Inc Best Buy Co Inc is a retailer of technology products, including tablets and computers, televisions, mobile phones, large and small appliances, entertainment products, digital imaging and related accessories.
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