Today in retail, Stitch Fix is struggling, Sephora becomes the first beauty brand to join the Shipt marketplace and third-party sellers have more options than Amazon for their multichannel sales dreams. Plus, the coupon business is transforming to keep up with the digital shopping era, and Express is targeting 2024 for $1 billion in eCommerce demand.
Multichannel Support Gives Third-Party Sellers New Marketplace Avenues
Fulfillment By Amazon is the core inventory management system for the multichannel sales marketplace, but its third-party sellers are choosing other platforms, including Shopify, Etsy, eBay and elsewhere.
More online sellers sought alternatives to Amazon’s marketplace dominance in 2021, with Shopify often cited as the most aggressive competitor.
Meanwhile, Amazon acquired multichannel order management platform Veeqo — a deal that was made in November but not revealed until Tuesday (March 8) — signaling that the eCommerce giant wants to be in the sales and inventory management flow, even for products on competing marketplaces.
Trucking Companies Seek One-Stop Shop When Buying Used Commercial Vehicles
Ryder announced last month that it had selected InsurTech REIN to launch an embedded insurance program for Ryder’s used commercial vehicle sales customers, meaning buyers can consider REIN insurance at the point of truck purchase along with other services already offered there.
For those who are already in the trucking industry and already have insurance, the offering of REIN at the point of purchase gives them an opportunity to compare rates.
Ryder also offers other services that customers will need to buy a truck and put it to work, including financing, warranty and prepaid preventive maintenance at the point of purchase.
Sephora Joins Shipt Marketplace
Same-day delivery service Shipt and beauty retailer Sephora are bringing beauty and wellness products to shoppers’ homes in as little as one hour through their new partnership, according to a Wednesday (March 9) press release.
Shipt is also teaming up with TV hairstylist Jonathan Van Ness to help promote the collaboration.
Sephora joins more than 140 retailers and adds almost 500 locations to the Shipt Marketplace platform in cities across the U.S. Customers can earn Beauty Insider rewards from their purchases on the Shipt marketplace at checkout, the release stated.
Mastercard Feb Retail Sales Data Reflect Underlying Consumer Desire For Normalcy
February retail sales in the U.S. rose 8.7% from a year ago, as consumers spent big on jewelry, restaurants and luxury items throughout the month that includes Valentine’s Day, according to the February 2022 Mastercard SpendingPulse.
The biggest annual advances — outside of car buying — were seen in luxury (+55%), restaurants (+39%), apparel (+37%), department stores (+26%) and jewelry (+22%). Electronics, furniture and grocery sales also rose, with gains of 12%, 10% and 7% respectively.
eCommerce sales growth slowed to 4.4% last month after a 10% spike in January, although Mastercard points out that online retail is up 85% from pre-pandemic levels three years ago. In-store retail sales rose 10% for the month, which was double the pace seen by physical retail locations in January.
Express on Track for $1B eCommerce Demand by 2024
Express shoppers are becoming increasingly focused on eCommerce for their purchases, giving the fashion retailer’s execs the confidence to say they’ll reach their goal of $1 billion in eCommerce demand by 2024.
eCommerce numbers were up across the board for Express in its 2021 fourth-quarter and annual earnings report Wednesday (March 9) and the franchise has been buoyed by stock growth of about 35% so far in 2022 as it eyes growth of its 500 stores.
Express saw its fourth-quarter eCommerce demand jump 33% compared to 2020 and 21% over 2019. For the full fiscal year, which ended Jan. 29, Express achieved a 32% increase in eCommerce demand compared to 2020 and saw increases “across all key metrics” for its website and mobile app, including traffic, conversion, average order value and average unit retail.
Stitch Fix Is Broken: Onboarding, Conversion, Ad Spend Crush COVID-Era Darling
After touching a lockdown low 24 months ago, the artificial intelligence (AI)-powered personal styling site Stitch Fix has gone from trough (about $11) to record high (about $110) and now back again (last trading around $9) as neither investors nor customers seem able to make up their minds about the 10-year-old apparel business.
Going into Tuesday’s (March 8) fiscal second-quarter earnings report, the San Francisco-based company had already seen its stock drop nearly 90% over the past 10 months, but minutes after that release, Stitch Fix shares dropped 20% more on word that its “onboarding and conversion rate” were challenging, and its revenue this quarter would be down 7% to 10%.
CEO Elizabeth Spaulding told analysts and investors on the company’s webcast that changes in Apple’s iOS 14 marketing channels had hindered Stitch Fix’s ability to target new clients — which as of Jan. 29 stood at 4 million active users, a 4% increase from the same period last year.
Aging Coupon Business Evolves to Meet Demands of Connected Consumers
Companies riding the rising wave of digital commerce are searching for new ways to engage with customers—and to keep them engaged. Mix in high inflation rates and sagging wage growth and it’s a tough combination for everyone involved.
Michael Blend, CEO and co-founder of System1, told Karen Webster that the basic value proposition of the coupon itself has not changed since the advent of green stamps decades ago. But the methods of delivery are changing, particularly as concerns about data sharing and privacy continue to mount.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More