Today in retail, holiday demand drives Carter’s fourth-quarter sales, while Klarna partners with Brookfield Malls on buy now, pay later (BNPL). Plus, Instacart diversifies beyond groceries to retain customers, and Etsy’s big holiday shopping season boosts quarterly numbers.
Holiday Demand Drives Carter’s Q4 Sales
Children’s apparel retailer Carter’s blew past its own sales and earnings projections in the fourth quarter of fiscal 2021, with strong holiday demand and pricing accounting for supply chain increases such air freight cost spikes, increased tech and employee salary hikes leading the positive quarterly report. The company’s quarterly net sales were $1.1 billion, up 7% from the same time in 2020, and up 15% to $3.5 billion for the full year. Carter’s sees net sales growth of 2% to 3% in fiscal 2022 and forecasts its annual sales growth will top $4 billion by 2026.
Klarna, Brookfield Bring BNPL to Malls as Consumers Demand More In-Store Availability
Swedish BNPL giant Klarna and top-five U.S. mall owner Brookfield Properties have partnered to bring installment payment plans to thousands of retail tenants at more than 150 shopping centers that attract 70 million shoppers a month. The companies reached an exclusive multi-year partnership to bring the popular payment plans to more retailers and shoppers and includes a range of experiential activities, including media, livestreamed shopping and augmented reality.
Instacart Diversifies to Hold Onto Its Customers Amid Increasing eGrocery Competition
Instacart is looking to offer more value from its network of pickers and drivers, diversifying beyond the grocery category. The company has partnered with home improvement retailer Lowe’s on same-day delivery and with Delta Air Lines to offer SkyMiles as a reward for Instacart purchases.
Etsy Active Sellers Reach 7.5M, Active Buyers Hit 96.3M
Etsy’s numbers were up across the board for the fourth quarter of fiscal 2021, with sales through the crafts-focused marketplace up 16.5% year over year to $4.2 billion, active sellers up 72% to 7.5 million and active buyers up 17.6% to 96.3 million. The company beat the high end of its own revenue guidance by almost 4%. Etsy thrived during the holiday shopping season, with more than 5 million sellers delivering goods to customers during the most recent three months.
Jane.com Uses BNPL to Meet and Bolster Ties With Millennials, Gen Z Consumers
BNPL providers are moving into the food and beverage space, with Australia-based providers Zip and Afterpay leading the way both at home and in the U.S., according to the February 2022 edition of PYMNTS’ Buy Now, Pay Later Tracker. The offerings are more mature in Australia than those available in the U.S., where the concept of using BNPL to pay for dining out and groceries is still somewhat controversial. BNPL spending is expected to triple by 2026 to $995 billion, as the appeal of making credit-based purchases with predictable monthly payments and no interest continues to grow.
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