In today’s top retail news, CarMax says its inventory is much lower than the company would like amid a shortage of new vehicles and high prices on used ones, while Amazon’s expansion of its Halo platform sharpens the company’s focus on connected fitness. Also, cosmetics brand Lancôme is partnering with ByondXR on a virtual pop-up store in the U.K., and Bed Bath & Beyond is seeing traffic take a hit as the delta variant remains a concern.
CarMax Struggles to Build Inventory as Vehicle Shortage Continues
Used car dealership chain CarMax said its inventory remains about 30% lower than it expected and down 15% year over year, cutting into vehicle availability but not yet impacting the company’s sales. Officially, CarMax recorded net revenue of $8 billion, up nearly 49% compared to the second quarter of 2020, primarily because of higher selling prices. The company sold a total of 419,895 of cars through both its retail and wholesale channels, up nearly 20% year over year.
Amazon Halo Expansion Could Upend Connected Fitness Space
Alongside announcements about Alexa, home robots and other new devices earlier this week, Amazon unofficially set its sights on Peloton, aiming to take on the connected fitness giant with an expansion of its Halo platform. The eCommerce giant added the Halo View, a new wristband device with a screen, as well as Halo Nutrition, a platform to help build healthy eating habits, and Halo Fitness, a new service with hundreds of studio-quality workout classes akin to Apple Fitness+.
Lancôme Debuts Virtual Pop-Up Store in UK with ByondXR
Virtual shopping platform ByondXR on Thursday has partnered with Lancôme on a virtual U.K. pop-up store using extended reality technology, part of Lancôme’s 2021 global campaign to promote its Génifique skin serum to new consumers. Lancôme says it has seen a 350% increase in customer engagement time in its virtual stores since first launching them in February.
Bed Bath & Beyond Traffic Declines in Q2
Bed Bath & Beyond saw a 26% drop in net sales in the second quarter of fiscal 2021 ending Aug. 28, compared to the same three-month period in 2020. Comparable sales were down 1% compared to the previous year, largely because of slower-than-expected traffic in August across both stores and digital platforms. The Bed Bath & Beyond brand dipped 4% in Q2, while buybuy BABY grew by a high-teens percentage.
Social Commerce Is Retail’s New Inventory Headache
The rise of social commerce is presenting some challenges for brands, according to Yuval Ben-Itzhak, president and chief strategy officer at Emplifi. One of the most prevalent issues, he said, is keeping track of inventory, pricing and shipping across the myriad shops and social marketplaces where products are sold.
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