Last year, Target announced that they would be ending their relationship with Amazon and bringing their e-commerce operations in-house. I only assume that many e-commerce platforms and integration partners were courting the large retailer, touting their services. Yesterday, the retailer announced the full list of vendors that will be involved in the nearly 2 year project:
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Sapient Corp., based in Boston, as the lead partner and integrator,
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International Business Machines Corp., based in Armon, NY, which will provide the multichannel e-commerce platform,
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Oracle, based in Redwood City, Calif., which will provide the database platform,
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Endeca Technologies Inc., based in Cambridge, Mass., which will provide search and navigation functionality,
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Autonomy Corp., based in San Francisco, which will provide content and digital asset-management functionality,
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Sterling Commerce Inc., Dublin, Ohio, which will provide global inventory visibility and cross-channel order-management functionality, and
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Huge Inc.,based in Brooklyn, NY, will provide visual and interaction design.
This is going to be an interesting project to watch and I can’t wait to see what Target and their vendors come up with. A highly visible, successful brand that is already known for a pleasant in-store shopping experience will have a very high bar to meet as re-platform their e-commerce offering.
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Another reduction in the retail workforce: this time it is Macy’s announcing a 4% reduction in their workforce, slashing 7,000 jobs. 5,100 of those are at the store level.
“Reducing our workforce is an unfortunate outcome of the current economic environment, and I am frustrated that so many of our people will be unable to move forward with us as we proceed into a very exciting future for Macy’s and Bloomingdale’s,” Macy’s CEO Terry Lundgren said in a statement.
The retailer estimates the restructuring efforts will reduce previously planned expenses by about $400 million a year beginning in 2010.
This is the latest in a line of retail layoffs – last week Home Depot, Starbucks, Williams-Sonoma, and Target all announced layoffs. Best Buy has also announced that they will be cutting workforce in their corporate headquarters later this month.
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Wednesday
November 26, 2008
Over at ecommr, we’ve been adding e-commerce elements related to Black Friday. Head to ecommr to see a roundup of the different banners, homepage landing, and e-mails that retailers are using to promote their Black Friday specials. More will be added as we come across them.
As a related note, it appears (to me) that retailers are being more aggressive in their marketing for Black Friday, with earlier campaigns and with more detail. Normally, promoting specific price points for comes right before Thanksgiving. But this week has been filled with “online previews”, television commercials, and e-mail marketing that seems to be more aggressive and detailed than years past. Retailers are trying to step up their game in order to capture a larger piece of the shrinking sales pie.
Walmart and Target both have their Black Friday ads online and featured prominently on their homepages. Kohl’s even has an entire section on their site that allows customers to browse the Black Friday ad and make a printable shopping list.
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Wednesday
September 3, 2008
More announcements from retailers offering assistance in the aftermath of Hurricane Gustav:
Best Buy, with eight stores in the affected region, has announced that customers can donate to the American Red Cross through all of the stores nationally through September 30, 2008. The retailer will also match donations up to $1 million.
Home Depot has announced it has donated $300,000 to the American Red Cross, in addition to $500,000 that the retailer donated to employees who were affected by the storm.
Finally, Target has announced a variety of relief efforts. They’re donating $300,000 in product relief packages assembled by volunteers and delegates from the Republican National Convention. The retailer has also given the American Red Cross access to their store in Convington, LA for use as an emergency operations center, and are allowing the Salvation Army to use a vacant store in Dallas, TX to store supplies.
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Associated Press is running an article this afternoon called Retailers stock up as Gustav nears coast. The article discusses different measures that retailers are rolling out in order to prepare for the storm, to make sure that they are able to reopen quickly after the storm hits and to provide the supplies the people need in the aftermath.
Some interesting points:
- Home Depot is staging critical supplies, such as lumber and generators, within a day’s drive of the stores that are expected to be hit.
- Wal-Mart shipped 47 truckloads of water to the region on Thursday.
- Target is making sure that supplies, such as personal hygiene products, are shipped not only to the affected region, but to places where evacuees are likely to be moved to.
The logistics of making sure the stores are able to open up in the aftermath of a major natural disaster like this is astounding. The retailers need their employees to be safe, need the stores to be stocked, and need to have distribution and communication networks in place to ensure everything goes smoothly. This is a huge undertaking, but retailers like Home Depot, Wal-Mart, and Target plan for these types of events in advance and have the support systems in place to make sure the transition goes as smoothly as possible.
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The stimulus checks have been (presumably) spent, back to school shopping is underway, and the retail sales numbers for July are in and they are, well, pretty ugly. A lot of retailers posting negative same-store-sales numbers for the month, many of them posting numbers that fell below Wall Street’s expectations. Wall Street is responding – as of 12:30, the S&P Retail Index is down around $7.
The negative results are hitting all segments of retailers – from department stores to the mall, teen retailers to mass market merchandisers. Wal-Mart posted a positive sales increase of 3.0%, but that is less than the 3.5% increase that Wall Street was looking for. Target saw same store sales drop 1.2% in the month of July and warn that August isn’t going to be much better. JCPeneny’s sales dropped 6.5% but raised their Q2 guidance “due to better than expected sell-through of promotionally priced merchandise and continued expense management measures.” Kohl’s saw a steep 10.4 drop in same store sales in the month.
Gap saw negative numbers across all brands – Old Navy down 16%, Banana Republic down 8%, and Gap North America down 6%. When are they going to spin off the Old Navy brand, sell it, and let someone else deal with the turnaround?
Teen retailers aren’t seeing the Back to School numbers they hoped for with American Eagle down 7%, PacSun was down 4%, Abercrombie & Fitch (as a company) was down 7% (with only A&F proper posting flat numbers, up 1% for the month. Hollister was down 11% – blowing away the 4.1% decrease expected by analysts), but Aeropostale saw sales jump 13%.
More coverage from CNN/Money, Forbes, and Marketwatch.
Reminder, all of July’s numbers are available to analyze over at our partner site, Retail Numbers.
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A few of the stories I’m reading and wanted to share today:
John Zogby’s got a very insightful look into the political trends of retail consumers and dives behind the numbers to make sense of it all. He looks at presidential election polling numbers, the retailers the customers shop at, and how this relates to the retailers’ branding.
J.Crew’s website has had their share of mistakes and downtime lately. Church of the Customer is talking about the apology e-mail that the retailer sent out to their customers and what this means for the company.
Matt at A New Marketing presents a clean, easily digestable definition of what social media is.
.. and finally – Starbucks is offering a $2 discount on iced beverages in the afternoon when you buy a drink in the morning. I think this is a smart move that should drive repeat business throughout the day. Besides that, I’m selfish and now look forward to saving a little bit of money on my second trip to Starbucks every day.
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Another mixed month for retail sales. While some retailers rebounded and look to go into Back to School on a positive note, it was another dark month for some mall and teen retailers.
Wal-Mart beat expectations with a 5.8% increase in June (showing 6.1% increase at their US name-brand stores and a 4.6% increase at their Sam’s Club locations). Target ended up in positive territory with a 0.4% uptick in same store sales. Costco showed a 9% increase, Kohl’s beat estimates with a 2.3% increase, and even mall retailer Aeropostale showed gains with a 12% increase in June.
The month was not as kind to mall and teel retailers such as Gap (company down 7%), Abercrombie (down 3%), and American Eagle (down 11%).
June’s numbers have been posted to Retail Numbers, which allows you to chart and track the retail industry monthly same-store sales.
More coverage from Fox Business and the Associated Press.
Photo above from Flickr user James@mannequindisplay. com, used under Creative Commons.
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A bit of lingo that I’ve learned lately: turns out that Target refers to the the impact of the Back to School/Back to College season on their stores, by classifying them into levels. The levels are No Affected, Affected, Freaky, and Super Freaky. It doesn’t appear that there are a lot of Super Freaky stores in the company, but those that are classified as such, are situated within close proximity to college campuses. I wonder what kind of percentage increase these stores see, over the rest of the company, during the season.
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Some links for today:
First off, two stories from the Consumerist. In one, an Target employee alleges that security there “mostly follows black people”. Article contains a rebuttal on most of the points from another current Target employee. As usual with the Consumerist, great comments on that article with some more interesting information.
Also from the Consumerist, some leaked internal documents from AT&T, in regards to the retail end of the iPhone launch. As the biggest technology and consumer electronics launch of this year, this will have huge implications on retail. With so many people wanting to get it, I’m interested to see how other retailers (non AT&T/Apple) react to this and try to get people to buy their products on iPhone launch day.
Yesterday’s New York Post has an article, Macy’s Margins, on the behind the scenes concerns of Macy’s regional buying officiers and what that means to the consumer.
Finally, Zumiez’s Couch Tour was in Deptford, NJ (just outside of Philadelphia). Reports are that several teenagers were hurt at the concert. But what is amazing to me is that estimates put the crowd at 2,000 to 2,500 people. Great turnout for this event. I’d imagine Zumiez is happy with those kinds of figures. More coverage from the Gloucester County Times.
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