ICYMI: What We’ve Been Reading
Retail News Roundup
ICYMI: At RetailOasis, we recognise the importance of staying ahead in the ever-changing retail environment. To support your growth, we've compiled a selection of insightful articles that we consider essential for industry leaders. These articles highlight innovative and emerging trends, providing valuable perspectives to enhance your strategic decisions.
Source: Channel News
AMAZON ACQUIRES 1.1 MILLION NEW CUSTOMERS IN AUSTRALIA
Article Link: https://www.ragtrader.com.au/news/amazon-acquires-1-1-million-new-customers-in-australia
Amazon has gained 1.1 million new customers in Australia over the past year, bringing the total to 7.9 million Aussies shopping on the platform annually. This surge has hit local retailers like David Jones the hardest, while JB HiFi is one of the few to see customer growth. On average, Amazon shoppers buy six times a year, with books, small electronics, and clothing being the top categories. Amazon is also planning to expand into furniture and large electronics by 2026 and launch a section for ultra-cheap products under $30. This growth could significantly reshape the Australian retail landscape.
Source: The Body Shop
2. THE RUNNING LIST OF MAJOR RETAIL DEALS
Article Link: https://www.retaildive.com/news/the-running-list-of-major-retail-deals/622801/
Retail Dive has been tracking major retail deals since 2021, including IPOs, acquisitions, and other transactions. The number of deals in the retail industry has been increasing, with over 75 deals tracked in 2021 alone. However, not all deals succeed, such as the failed acquisition of Victoria’s Secret by Sycamore Partners. The article provides a comprehensive list of significant deals, offering insights into the ongoing changes and trends in the retail sector. Recent deals include Auréa Group acquiring The Body Shop, HBC buying Neiman Marcus Group, and Phoenix Retail’s acquisition of Express, Bonobos.
3. CHIPOTLE PORTIONS DRAMA: WELLS FARGO ANALYST EXPOSES INCONSISTENCY
Article Link: https://www.fox29.com/news/chipotle-portions-drama-wells-fargo-analyst-exposes-inconsistency
Chipotle has gone viral on TikTok for all the wrong reasons. Users across TikTok have accused Chipotle of shrinkflation, that is using fewer ingredients in its burrito bowls, with the hashtag "Chipotle small portion size" amassing over 58 million views. However, one Wells Fargo analyst took this a step further, ordering 75 burrito bowls from eight different locations in New York City to conduct their own study.
It turns out TikTok was right and unfortunately the results for Chipotle weren't good at all. Whilst the median weight of the bowls was 21.5 ounces, some locations offered the bowl at a hefty 27 ounces while another only came in at 14 ounces - all from the same menu and prepared in the same way. Are we looking at shrinkflation, or is this simply an example of poor operational model execution across stores?
Source: Retail Me Not
4. TARGET LAUNCHES DENIM TAKE-BACK EVENT
Article Link: https://www.retaildive.com/news/target-denim-recycling-promotion/722651/
Target is launching its first denim take-back event just in time for the back-to-school season. From Sunday through August 10, customers can trade in up to five pieces of old denim at any Target store and receive a one-time 20% off promo code for new denim purchases. This initiative, part of Target's sustainability efforts, allows customers to recycle denim from any brand and condition, with the collected items being repurposed by Target’s partners. The promotion aims to make denim shopping more affordable while reducing apparel waste.
5. BAZAARVOICE RELEASES 2024 GLOBAL HOLIDAY SEASON CONSUMER BEHAVIOUR REPORT
Article Link: https://www.bazaarvoice.com/press/bazaarvoice-releases-2024-global-holiday-season-consumer-behavior-report/
Bazaarvoice's 2024 Global Holiday Season Consumer Behaviour Report reveals that online shopping is now more popular than in-store shopping, with 50% of shoppers starting their journey online. The report, based on insights from over 8,000 global consumers (aged 18 to 65+ from United States, United Kingdom, France, Germany, Canada, and Australia) also shows that a significant number of people begin their holiday shopping as early as August (21%). Despite the online trend, malls remain popular, especially among Gen Z. Video content on social media is particularly effective in capturing shoppers' attention during the holiday season, with many preferring brand-created or user-generated content over influencer content. The report underscores the need for brands to adopt a comprehensive omnichannel strategy to engage consumers effectively.
Source: Harpers Bazaar
6. HOW OVERSEAS SHOPPING AND CROSS-CATEGORY COMPETITION ARE DRIVING CHINA’S LUXURY RESURGENCE
China's luxury goods market remains resilient despite increased volatility, with brands boosting investment and marketing efforts. In 2024, two key trends are emerging: the resurgence of international shopping and the blending of mainstream fashion with luxury styles. According to experts from Tencent and BCG, factors such as currency fluctuations and the importance of the quality-price ratio are driving these trends. Outbound tourism and international luxury shopping have notably increased, with a significant portion of Chinese luxury consumers purchasing overseas. Platforms like WeChat play a crucial role in providing information and facilitating personalized communication, aiding luxury brands in capturing this evolving market.
Source: Ted Baker London
7. TED BAKER’S FUTURE UNCERTAIN: LIKELY CLOSURE OF ALL UK STORES IN WEEKS
Article Link: https://www.forbes.com/sites/katehardcastle/2024/07/26/ted-bakers-future-uncertain-likely-closure-of-all-uk-stores-in--weeks/
Ted Baker is facing the imminent closure of all its UK stores within the next three weeks due to financial troubles, including bankruptcy protection filings in the US and Canada. The brand's decline stems from its inability to adapt to the digital retail landscape and leadership challenges following the exit of its founder. Efforts to stabilise under new ownership and revamp operations have so far failed to reverse its downward trajectory.
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