Today in retail, 60% of UAE shoppers use their smartphones while shopping in stores, and Amazon is expanding its Luxury division to five European countries. Plus, Five Below is ready to capitalize on other retailers being bumped from the market, Target is leaning on grocery sales to drive its growth and Apple won’t lean on its banking partners for its BNPL rollout.
Would You Buy a $13,000 Designer Dress From Amazon?
At a time when more consumers are living paycheck to paycheck and belt-tightening is putting a dent on discretionary spending, Amazon is looking to tap into the resilience of high-end consumers by expanding its 2-year-old Luxury division to the five wealthiest nations in Europe.
In bringing its “Luxury, out of the box” campaign to Germany, France, Italy, Spain and the United Kingdom, the world’s largest online retailer is looking to bring the convenience of mobile shopping and rapid delivery to a corner of the market normally served by exclusive boutiques and highly staffed stores. At the same time, the growing initiative is also aimed at designers themselves, by giving them another platform in which to speak directly to new customers in more ways and places than ever.
With nine core categories to browse, from “Summer Soirée” to Dresses to Statement Heels, and 52 different designers and brands to pick from, ranging from Altuzarra to sunglasses by Wires, the expansion of the format is being touted as “just the beginning” for customers and labels in Europe and beyond.
Return to Events, Travel, Work Boosts Sales for Tommy Bahama, Lilly Pulitzer
An increase in social events and travel and the rise of more casual workplaces spelled good news this quarter for Oxford Industries, parent company of lifestyle brands Tommy Bahama and Lilly Pulitzer, with sales for both brands increasing in the first quarter of 2022 after what it called a record 2021.
Tommy Bahama’s sales increased by 46% between the first quarter of 2021 and the first quarter of this year, from $156.7 million to $228.1 million, according to the release. Lilly Pulitzer’s sales rose 25% year-over-year, from $73.6 million to $92 million.
Five Below Is Ready to Pounce on ‘Merchandise and Real Estate Dislocations’
Philly-based Five Below said it is forging ahead with its “Triple-Double” growth plan that will triple its store count to 3,500 while doubling sales and earnings over the next four years.
While the company’s just-reported first-quarter earnings results were “softer than expected” and saw its comp store sale slide by 4%, the discount retailer said it is well-positioned to capitalize on several macroeconomic factors that are currently roiling the entire industry.
The challenge Five Below faces right now in delivering the value that customers want is that their own shipping, labor, and inventory costs are also rising. Most retailers would deploy price increases and cost cuts, but at an “extreme value” player that markets itself as a place where goods are “priced so low, you can always say ‘Yes,’” passing along price increases is even more difficult.
Walmart Picks 1,200 Businesses in Largest-Ever ‘Open Call’
Walmart has made its selections for its Open Call, its largest sourcing event, the company announced in a Wednesday (June 8) news release. Now in its ninth year, the event is a crucial driver of customer traffic, both in-store and on-line. Walmart said it has invited close to 1,200 small and medium-sized businesses — out of 4,500 applicants — to take part in the event, the largest group ever selected.
As PYMNTS reported in March, Open Call is designed to bring products made, grown or assembled in the U.S. to shoppers around the country, either in-store on the web. Walmart bills it as part of its 10-year, $350 billion pledge to support American jobs. The selected business owners will pitch their products to Walmart and/or Sam’s Club merchants on the second day of the Open Call, scheduled for June 28-29.
Apple Ditching Banking Partners in BNPL Scheme
Instead of having a banking partner like other buy now, pay later (BNPL) programs, Apple is going rouge and is handling the lending itself through its wholly owned subsidiary Apple Financing, which will oversee credit checks and make decisions.
Apple Pay Later was one of several announcements the company made at its Worldwide Developers Conference (WWDC) on Monday (June 6). Its new BNPL product enables Apple Pay and Apple Wallet users to split four installment payments across six weeks. The program is initially launching in the U.S.
59% of UAE Shoppers Use Smartphones to Enhance Their In-Store Experience
In the United Arab Emirates (UAE), almost three out of five shoppers (59.2%) surveyed for the PYMNTS 2022 Global Digital Shopping Index reported using their smartphones at some point during their in-store shopping journeys.
When extrapolated to the whole population of the UAE, the research suggests that approximately 882,000 Emirati consumers use their smartphones to assist with in-store shopping, a greater share than in any of the other five countries surveyed — Australia, Brazil, Mexico, the U.K. and the U.S.
The greatest number of those shoppers (24.8%) reported using their smartphones to research product information, while others used it to compare prices (24.7%), build loyalty credit (20.7%) and search for offers and discounts (19.9%).
Following Walmart’s Lead, Target Taps Grocery to Drive Traffic
As retailers’ supply chain challenges continue with no end in sight, Minneapolis-based big box department store chain Target is turning its focus to grocery prioritize its strongest channels.
The company announced Tuesday (June 7) a plan of action for tackling supply chain complications and improving its inventory difficulties, which includes lowering prices to offload excess items and canceling orders, while focusing on high-performing categories including food and beverage as well as household goods and beauty.
This focus on grocery shows the brand is investing in the category with the greatest potential to keep consumers coming back on a regular basis, given that the typical consumer shops for groceries multiple times a week. Target is following the strategy that has yielded great success for competitor Walmart, the world’s largest grocery retailer, which brings in more than half its sales from food and beverage categories.
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