Today in retail, Walmart’s business model is becoming increasingly digital, while Crocs is putting more emphasis on the digital segment of the business. Plus, Gucci parent company Kering seeing massive growth in the company’s online segment.
Walmart Says ‘Business Is Increasingly Digital,’ Pledges Further Investment in Tech
The ongoing omnichannel transformation of Walmart — the operator of over 10,000 stores worldwide and a fast-growing eCommerce business — can be seen through its fourth-quarter and full-year results, as well as where it’s headed and investing for the future.
The retailer reported record company-wide revenues for the year, as well as for the U.S. unit for the quarter, at $572 billion and $105 billion, respectively, but CEO Doug McMillon told analysts and investors that “the business model is changing.”
“We’ve got a business that is becoming increasingly digital,” he said. “The eCommerce business, first party, third party, is growing and it gives us the opportunity to grow things like advertising income.” That includes Walmart Connect, a relatively new advertising-focused venture that has grown into a $2 billion contributor for the company.
D2C Home Brand The Inside Acquired by Havenly
Online interior design service Havenly announced Thursday (Feb. 17) that it has acquired direct-to-consumer (D2C) home furnishings brand retailer The Inside, unlocking access to made-to-order, customization options for customers, historically only available at luxury prices.
Havenly’s business model uses one-on-one design help and hand-picked products that helps customers improve their home within a budget. The Inside saw 600% growth in the past year. All employees will join Havenly in the deal.
Gucci Parent Kering Rides eCommerce Explosion to Record Revenue in 2021
Online sales for Gucci parent company Kering were up 55% in 2021, a key driver in the company’s overall upward trend across its earnings results, according to a press release (Thursday (Feb. 17), which showed the company’s online penetration rates doubled since 2019 and are now 15% of retail sales.
Kering’s revenue was 40% higher in 2021 than the same time a year earlier and 18% higher than in 2019, the release stated. Fourth-quarter sales growth was up 39% compared to 2020 and grew 34% compared to 2019.
Hasbro Activist Investor Alta Fox Wants New Board Members, Wizards of the Coast Spinoff
Activist investor Alta Fox Capital Management wants play and entertainment company Hasbro Inc. to make its Wizards of the Coast unit a separate entity and add five new board members as part of an overhaul to its business strategy.
Alta Fox, which owns 2.5% of Hasbro, is pushing for sweeping changes to the company’s “brand blueprint” strategy, replacing it with a focus on growing profitability in its consumer products and entertainment divisions.
The company says making Wizards of the Coast and Hasbro’s digital gaming division, including Dungeons and Dragons and Magic: The Gathering, its own entity, will at least double Hasbro’s share price to $200 or more.
Crocs Look to Take a Bigger Bite From Digital Sales
Crocs’ digital sales were up by double digits for a third consecutive year, company executives said in its fourth-quarter and full-year earnings call Thursday (Feb. 17). They increased by 48% and 122%, respectively, when compared to 2020 and 2019, respectively. It represented 37% of total sales for the year, compared to 42% the previous year and 31% in ‘19.
Direct-to-consumer revenue was $1.13 billion, a 64% increase over the year. By comparison, wholesale revenue was $1.17 million, up $69% over the year. In Q4, which included the holiday shopping season, digital sales grew 41%, which was 40% of revenues and up 163% for the final quarter of 2019.
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