A new report from the Retail Industry Leaders Association (RILA) and McKinsey & Co. highlights how sticky the digital shift has become over the past year, and how important personalization, supply chain optimization, omnichannel and sustainability have become to ensure survival in the new landscape.
The pandemic dramatically accelerated the retail industry’s digital transformation. Large retailers had the technology and processes necessary to respond quickly, but others found their entire business models upended overnight. While some changes may go, what will stay is a renewed focus on building community in retail.
In a familiar theme for omnichannel retailers who have gotten ahead of the curve in digital transformation, Macy’s reported store sales down 61% in the second quarter, while ecommerce increased 53%. Still brick-and-mortar news was not all bad, as stores reopened stronger than expected and luxury goods outpaced projections.
Target CEO Brian Cornell piled on superlatives when discussing Q4 and 2019 results, including six consecutive years of 25%+ growth in ecommerce sales. Same-day (order pickup, drive up and Shipt delivery) accounted for more than 80% of Target’s Q4 comparable digital sales growth of 20%, compared to 1.5% overall comp growth.
Calling out Amazon for destroying brand differentiation and citing customers’ demands that brands be wherever they want them, real estate venture firm Fifth Wall closed a $100 million fund to help digital natives add stores. The fund is backed by some of the largest retail real estate owners and service providers in the U.S. and abroad.
Walmart reported dips in Q1 sales and earnings, due to a strong dollar, technology and ecommerce investments and bad weather; ecommerce growth was slower.
While Coach is seeing success internationally, domestic sales are seeing a decline. See what else is changing about the luxury accessories brand.
Macys’ inventory levels continue to be negatively impacted as a result of protracted labor issues that tied up shipments at 29 West Coast ports for months.