Today in retail: BJ’s sees sales increase
In retail today, Bath & Body Works is adding more eco-friendly packaging to its continuously updated product line, while Under Armor’s CEO is leaving the company as the course of its shares fall. Additionally, Uber is piloting a scheduled grocery delivery program.
Bath & Body Works focuses on innovation and expansion
Bath & Body Works stores will offer a range of more environmentally-friendly packaged products, the company said in its first-quarter earnings release.
Acting CEO Sarah Nash told investors and analysts on Thursday (May 19) that the company is using more data analytics with the aim of “transforming Bath & Body Works into a true omnichannel business”, capitalizing on trends fashion and the novelty of its packaging and products.
Bath & Body Works recently launched new fragrances and products every four to six weeks and plans to maintain that pace going forward, she said. The company plans to expand into new categories and expand its business into new geographies around the world. Shoppers will also start to see changes to the way Bath & Body Works manufactures its products and packaging, including the elimination of carbons, sulfates and dyes, with 35% of its assortment set to be reformatted by the end of the day. end of the year.
Kohl’s bets all on Sephora as latest takeover offers arrive
After announcing first-quarter results Thursday morning (May 19) that were, in its own words, “below expectations,” Kohl’s was more eager to talk about its growing partnership with makeup giant Sephora than the unexpected drop in 5% of sales from its 1,100 stores.
Amid declining sales for the group, which saw its core Home and Kids categories drop 17% and 12%, respectively, for the three months ended April 30, CEO Michelle Gass pointed out that Sephora stores experienced a different reality, including positive comps, incremental basket size growth, and spillovers from purchases in other departments by new, younger and more diverse customers.
While Gass and the entire existing 13-member board and management team said they were pleased to receive shareholder approval last week, an overnight federal filing revealed that the company’s director of marketing and director of merchandising were leaving the company. Gass assured analysts that she and the board were in contact with several parties interested in buying the retailer who were expected to submit binding fully-funded proposals in the coming weeks.
Uber joins race to expand grocery delivery to all income brackets
Uber announced Thursday (May 19) that it is piloting on-demand and scheduled delivery with Grocery Outlet at 72 of the West Coast’s discount grocery stores. The pilot test is underway in major cities including Seattle and San Francisco, and Uber Eats is running a free delivery promotion to entice consumers to try it out.
Throughout 2022, eGrocery players have taken steps to expand their audience to include low-income shoppers. In April, Instacart announced the expansion of its own partnership with Grocery Outlet to include nearly 400 stores in seven states. Since the start of the year, many grocers have announced that they are now accepting Electronic Benefits Transfer (EBT) and Supplemental Nutrition Assistance Program (SNAP) payments for digital orders.
Memberships and digital sales jump for BJ’s as more shoppers seek bargains
With the drive to get the most out of every dollar more pronounced than ever amid inflation levels not seen since the 1980s, BJ’s Wholesale Club is among the beneficiaries, at least according to its first quarter earnings report of the 2022 financial year published on Thursday (May 19).
The company reported a 14.4% year-over-year comparable club sales increase for the 13 weeks ending April 30, although that number drops to 4.1% when gasoline sales are excluded. BJ’s also reported an 11.9% year-over-year increase in dues revenue to $96.6 million. Sales growth through digital was 26%, so BJ members aren’t just doing their wholesale purchases in person at their local clubs, according to the company’s press release. Net sales increased 16.3% year over year.
With inventory at liquidation prices, the CEO of Under Armor leaves
Under Armour, whose shares have been halved in the past six months, announced that CEO Patrik Frisk is stepping down after two years at the helm of the company.
As the search for a successor begins and current COO Colin Browne sets to assume the role of interim CEO on June 1, the sweeping, multi-pronged transformation previously announced will continue. These efforts are aimed at mitigating supply chain disruptions from China, expanding the company’s direct-to-consumer and e-commerce channel, and reversing the slump in shoe sales, which fell 4 % in the last quarter and are dwarfed by the company’s apparel revenues.
The impending C-suite transition also follows the company’s previously announced transition to a new fiscal format, which, effective April 1, saw it launch into the first quarter of fiscal 2023 instead. only in the second quarter of 2022.