Target reported strong Q2 performance, with 34% growth in ecommerce sales, nearly 75% of which was attributable to its same-day order fulfillment strategy including buy online pickup in store, curbside pickup and local delivery. The retailer beat expectations on earnings, comp growth and revenue, and raised 2019 guidance.
The seemingly weekly drumbeat of retailers either closing stores or filing for bankruptcy is evidence of the ongoing seismic shift in customer demands and expectations, and the failure of many to pivot fast enough to meet them. Here is how retailers should navigate through the changing tides of the industry.
Retailers lowered the bar for Christmas season fulfillment, then easily cleared it, according to Kurt Salmon. Ninety-three percent of retailers tracked were able to process and deliver customer orders by the last guaranteed delivery date. But 33% of them ditched their last order promise date as Christmas approached.
Macy’s Inc. reported a 1.1% decline in net sales for the second quarter, from $5.6 billion to $5.5 billion, with comp sales inching up just 0.5% and double-digit online sales in the same period. Mobile sales via the Macy’s app were up 50%+ in the first half of 2018. See how Macy’s did in other areas of its business.