Those who have embraced omnichannel retailing by allowing customers to do everything from browsing to payment on their personal device have found it much easier to adapt with tactics like BOPIS to ensure the safety and health of employees and shoppers. The current crisis will serve as a catalyst for long-term process changes.
Target found the COVID-19 outbreak to be a two-edged sword in the first quarter, driving stratospheric ecommerce sales growth of 141%, while impacting profits due to about $500 million in associated costs, the company reported. It also saw over 5 million customers shop on Target.com for the first time in Q1.
Right now, there is a golden opportunity for direct to consumer brands to take the initiative and gain share, launch new products and increase their visibility at a time when many competitors are holding back due to various challenges related to COVID-19, experts from ChannelAdvisor said.
What should the growing number of retailers weighing bankruptcy be considering, and what kinds of restructuring plans should they set up? Attorney Thomas Wolford, a partner with Neal, Gerber & Eisenberg, gives us an insider’s look at what goes on from filing through re-emergence in this MCM CommerceChat podcast.
On the same day it was announced Deliv was winding down its operations this summer, it came out that Target is in talks to snap up some of Deliv’s technology assets to bolster its local ecommerce fulfillment and bring founding CEO Daphne Carmelli onboard, NBC reported. Others had reportedly been looking at Deliv, including grocers.
Neiman Marcus Group, owner of the 43-store chain of the same name as well as two Bergdorf Goodman locations and Last Call discount shops, has filed for chapter 11 bankruptcy protection as expected, in the process securing $675 million in loans from creditors. The filing also calls for a long-term plan to eliminate $4 billion of debt.
Retailers that have invested in inventory management tools that supply real-time visibility across channels are faring much better than those that didn’t as tactics like ship from store and curbside or counter pickup are proving to be survival factors, industry experts agreed.
How should brands be managing their messaging at this sensitive time, expressing empathy without overdoing it?
Deb Gabor, CEO of brand strategy consultancy Sol Marketing, has led brand and crisis strategy engagements for Dell, Microsoft, HomeAway and others. She discusses brand messaging do’s and don’t’s in the days of COVID-19.
Chinos Holdings, parent of preppy clothing retailer J. Crew and women’s apparel and accessories seller Madewell, filed Chapter 11 as part of a restructuring plan that calls for converting $1.65 billion of its debt to equity and securing $400 million in loans. This is the first major retailer to file for bankruptcy during the coronavirus crisis.
Retail was a mixed bag this week, as over a dozen states have begun to slowly reopen, working to come out the other side of the COVID-19 shutdown. Some retailers and malls are doing the same, hoping that enough returning shoppers and their pent-up demand for goods will help with massive cash flow and viability challenges.