Mike O'Brien
Mike O’Brien has worked in journalism, marketing and public relations for … well, quite a while. At Multichannel Merchant he focuses on the world of direct-to-customer operations and fulfillment, editing MCM’s weekly O+F Advisor newsletter, and programs the annual Ecommerce Operations Summit conference. Previously Mike was a senior account executive for Marx Communications, a boutique public relations firm working with marketing and advertising technology companies. Other past work includes stints as a media relations consultant for a concert promoter, a marketing communications specialist for a pharma software firm, a research analyst covering corporate e-learning and a daily newspaper reporter on every beat imaginable – except sports.
As did Black Friday, Cyber Monday set a record of $11.3 billion in online spending, per Adobe Analytics, up 5.8% from the first-ever down year of 2021, once again driven by heavy discounting to spur demand in an inflationary period. At the peak of 8 a.m. to 9 a.m. PST, consumers were spending at a clip of $12.8 million every minute, Adobe reported.
Black Friday looked good compared to an average day this year or even a year ago, but less so when compared to 2019. Online, sales were healthier, but just a 2.3% gain from 2021, Adobe said. Lululemon Athletica, American Eagle Outfitters and Victoria’s Secret were winners, and Gap, Banana Republic and Hollister were challenged.
Sales expectations are somewhat muted based on a welter of surveys and experts, as well as most retail earnings, but Cyber Week is still kind of a big deal, extended season and early deals notwithstanding. There are, of course, no lack of consumer jitters due to nagging inflation, with study after study indicating some degree of hesitancy.
Last month, the Department of Labor proposed a change to the way it determines the classification of independent contractors. If it eventually becomes law, the rule change would have a lasting effect on the gig economy and gig workers. Kashyap Deorah, CEO of HyperTrack, talks about the balancing act in front of the DOL.
After making a lot of noise this year with a list of grievances including poor management practices and bad peak season forecasting leading to the brink of insolvency for many, an association of FedEx Ground contractors has disbanded, taking a shot at the founder on the way out the door.
A hedge fund which made millions with its stake in GameStop before the struggling retailer became a Reddit-fueled stock phenomenon has invested in Pitney Bowes, believing its assets are undervalued, and suggesting its ecommerce unit could be sold. Hestia Capital may put forward a former Stamps.com executive as a director.
For 16 years, Alen has been selling its a top-rated air purifiers on Alen.com and Amazon. Now the company has expanded into retail, with product in 300+ Lowe’s stores, with potential for expansion. Alen has seen sales climb 210% growth since 2020. The CEO and the COO of Alen talk about the company’s growth and channel approach.
Target brought bad news Wednesday, with Q3 earnings miss plus a warning about a softer Q4, as families make tough budget calls on essentials vs. nonessentials heading into the holidays while high inflation lingers, registering a 7.7% rate in October. The company is calling for a low single-digit decline in Q4 comparable sales, and an operating margin of 3%.
As Amazon stumbles, planning to lay off ten thousand workers, drastically scaling back its facilities plans and missing earnings forecasts, ascending rival TikTok is becoming more of a globally dominant behemoth, day by day. The latter reportedly began testing an in-app shopping feature with select U.S. retailers last week.
Walmart gave the retail sector a much-needed pre-peak season shot in the arm, especially following Amazon’s recent miss, posting better-than-expected Q3 sales and adjusted earnings, as its low-priced grocery business soared and ecommerce revenue grew 16%. Three billion of the loss was from a settlement of opioid litigation.