Today in Retail: Albertsons Digital Sales Growth Slows to 5%; CarMax Falls Short of Earnings Estimate

Today in retail, Albertsons digital sales growth slows, while CarMax fails to reach earnings estimates. Plus, Sephora’s chief technology officer looks forward to the “checkout of the future,” Franchise Group shows interest in buying Kohl’s, inflation hits 8.5%, and eCommerce merchants balance seamless payments and increased regulations.

Albertsons Digital Sales Growth Slowed to Single Digits in 2021

Digital sales growth for grocery chain Albertsons Companies slowed to 5% in the fourth quarter of fiscal year 2021 and for the full fiscal year, reflecting a large-scale return of shoppers to stores to pick their own groceries. For the period ending Feb. 26, Albertsons reported growth in its identical sales of 7.5% for Q4 and a drop for the year of 0.1%. On a two-year stacked basis, identical store sales were up 19.3% for Q4 and 16.8% for the full fiscal year.

CarMax Stock Dips After Failure to Hit Earnings Estimates

CarMax stock continued to dip Tuesday (April 12), dropping more than 8% in mid-afternoon trading with news that its fourth-quarter earnings for fiscal year 2022 were lower than the year before and that they had missed most analysts’ estimates. CarMax shares have dropped in value almost 20% in the past year. The company’s net earnings for Q4 suffered because of higher-than-expected expenses, dropping 22.8% to below $1 per share, down from $1.27 a year earlier. Annual earnings were up 54.2% to $1.2 billion.

Sephora CTO Says ‘Checkout of the Future’ Is as Much an Experience as a Transaction

With 500 physical stores in the U.S., 600 store-in-store locations at Kohl’s, a website, a mobile app and 14 years of digital experience, Sephora has a deep and diverse understanding of its customers. Chief Technology Officer Sree Sreedhararaj told PYMNTS that a positive experience ultimately rules the day, and is more important than just the checkout. The checkout experiences in-store for beauty will continue to focus on seamless and convenient ways of handling transactions, but they will also focus on the experience that the beauty retailer can give to the customer.

The Vitamin Shoppe Parent Franchise Group Offers $9B for Kohl’s

Franchise Group, which owns and operates retail stores including The Vitamin Shoppe and Buddy’s Home Furnishings, has submitted a $9 billion indicative offer for department store retail chain Kohl’s. The Franchise Group’s offer would be equal to $69 per share, still short of the bid by Canadian luxury department store chain Hudson’s Bay, which has said it would pay at least $70 per share to acquire Kohl’s. Activist owners at Kohl’s, including hedge fund operators Macellum Advisors, have been pushing the company to sell outright or consider spinning off its eCommerce operations.

Prices Surge 8.5% in March, Highest in 40 Years

Consumer prices rose 8.5% in March compared to 2021, the biggest surge in 40 years as the Russia-Ukraine war is driving energy prices up, according to the U.S. Bureau of Labor Statistics. Prices rose 1.2% in March compared with February following hopes that inflation was on a monthly decline. The indexes for gasoline, shelter and food added the most to the seasonally adjusted increase. The gasoline index went up 18.3% in March and accounted for over half of the monthly increase. The food index increased 1%, and the food at home index rose 1.5%.

eCommerce Merchants Strike Seamless Payments, Regulatory Balance With Orchestration

Online spending volume has expanded in the past few years, with the value of digital payments worldwide expected to grow at a compound annual growth rate (CAGR) of 15% between 2021 and 2028. This includes both B2B and consumer-facing payments, presenting new opportunities for today’s merchants. As online payments become more prevalent, however, lawmakers worldwide are beginning to pay closer attention to digital data security and privacy. In the latest Payments Orchestration Playbook, PYMNTS analyzes the challenges and frictions merchants face worldwide as they look to comply with regulations. It also looks at how payments orchestration can enable businesses to overcome these frictions.