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☆ Retailers jacked up prices and squeezed consumers. They might have just blinked
▼ + stars: | 2024-05-05 | by ( Parija Bhatnagar | Parija Kavilanz | ) edition.cnn.com time to read: +7 min

“There’s just less dollars for consumers to spend.”The challenge for retailers now is to shake consumers out of that frugal mindset. Retail spending has increased in seven of the past 10 months through March. “If you want to convince consumers to spend you have to give them a reason to do so. Lower prices are a clear opportunity to drive people into the store or online.”It’s a lever that Walmart, he said, has pulled forever. Clothing chain H&M told analysts during its most recent earnings call that it, too, would lower prices.

Persons: Sarah Wyeth, ”, Chad Lusk, Alvarez, ” Wyeth, “ There’s, they’re, Zak Stambor, Stambor, Joe Raedle, ” Stambor, “, ” Jesper Brodin, ” Brodin, ” Michaels, ” Ashley Buchanan, Michaels, Lars Daniel Ervér, Frida, Chuck, – CNN’s Bryan Mena Organizations: New, New York CNN —, Ikea, Shoppers, “ Retailers, CNN, Walmart, Ingka, “, Cheese, Stambor Locations: New York, Hallandale Beach , Florida

☆ Target citing crime for closing stores shows retailers are fighting an uphill battle
▼ + stars: | 2023-09-27 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +7 min

Industry experts say even a small increase in crime can have massive, cascading effects that cause retailers to close stores. And stolen items can have an outsized impact on store profitability, considering the razor thin profit margins many large retailers typically operate at. “Increasing store crime is another variable in play right now for retailers,” said Zak Stambor, senior retail & ecommerce analyst with Insider Intelligence. Organized retail crimeAt issue is a particular type of store theft that loss prevention experts classify as “organized retail crime” or ORC. Last month, Dick’s Sporting Goods warned that retail theft was damaging its business and would lead to lower annual profits.

Persons: New York CNN —, ”, Burt Flickinger, Zak Stambor, Jane Roh, Shawn Kelly, TJ, they’re, Read Hayes, criminologist, ” Stambor, Hayes, “ Organizations: New, New York CNN, Strategic Resource, Insider Intelligence, eBay, Facebook, Pennsylvania Liquor Control, Police, CNN, Philadelphia, Attorney’s Office, “, GS, Cheltenham Plaza, Pennsylvania Liquor Control Board, Dick’s Sporting Goods, TJX Companies, TJ Maxx, Goods, Nordstrom, Foods, University of Florida, Prevention Research Council, Walmart, Target, National Retail Federation, ”, Walgreens Locations: New York, Los Angeles, Chicago, Philadelphia, Cheltenham, Wyncote, Montgomery County, San Francisco

☆ Best Buy declares the 'low point' in tech sales after years of declines
▼ + stars: | 2023-08-29 | by ( Hayley Peterson | ) www.businessinsider.com time to read: +4 min

Best Buy's CEO said we're in "the low point in tech demand after two years of sales declines." "We continue to expect that this year will be the low point in tech demand after two years of sales declines," Best Buy CEO Corie Barry said Tuesday on a call with analysts after the company reported its second-quarter earnings. Best Buy is already seeing glimmers of stabilization in categories like home theater, executives said on the call. AdvertisementAdvertisementBut first, Best Buy has to get through the rest of this year. "Best Buy faces a tough environment in which few consumers are looking to splurge on big-ticket items such as home theaters, TVs, and appliances," Stambor wrote.

Persons: we're, Macy's, Corie Barry, Barry, Zak Stambor, Stambor Organizations: Shoppers, Service, Chase, Walmart, Amazon, Costco, Intelligence Locations: Wall, Silicon

☆ Kohl's beats profit estimates on cost cuts, leaner inventory
▼ + stars: | 2023-08-23 | by ( ) www.reuters.com time to read: +2 min

Aug 23 (Reuters) - Kohl's Corp (KSS.N) beat estimates for quarterly profit on Wednesday, as leaner inventories, lower costs and fewer discounts helped the department store chain counter a broader retail slowdown. Inventory declined 14% during the quarter as Kohl's undertook stock clearance, leading to a 61 basis points drop in gross margin. "It managed to sell more excess inventory and reduced its expenses, which helped it beat expectations," Insider Intelligence analyst Zak Stambor said. "While Kohl's is still in the early innings of its turnaround plan, it appears to be moving in the right direction," Stambor said. The company earned 52 cents per share in the second quarter ended July 29, above analysts' estimates of 22 cents.

Persons: Tom Kingsbury, Kohl's, Zak Stambor, Stambor, Savyata Mishra, Anil D'Silva Organizations: Kohl's, Insider, Retailers, Thomson Locations: Kingsbury, Bengaluru

☆ Santa better get a T- shirt because summer has claimed Christmas
▼ + stars: | 2023-08-20 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +6 min

Stores have been pushing up Christmas merchandise earlier and earlier in recent years. In 2021, Amazon and Walmart, afraid of tepid consumer demand because of the pandemic, initiated holiday sales as early as October. The same pattern was repeated last year, effectively elongating the year-end holiday shopping season. “I expect an ever-growing holiday season is here to stay, at least for the foreseeable future,” said Zak Stambor, senior retail & ecommerce analyst with Insider Intelligence. Among the festive items were Christmas tree ornaments, festive ribbons, plush elves and tabletop ornaments.

Persons: can’t, Don’t, ”, Zak Stambor, Nikki Baird, Stambor, here’s, we’ve, ” Lowe's, Lowe’s, “ Organizations: New, New York CNN, Walmart, Labor, Insider Intelligence, ” Industry, Amazon, Depot, Lowe’s, CNN, Costco Locations: New York, Amazon, “, Santa

☆ Bud Light owner AB InBev beats forecasts in quarter dominated by boycott
▼ + stars: | 2023-08-03 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

Bud Light, made by Anheuser-Busch, sits on a store shelf on July 27, 2023 in Miami, Florida. Anheuser-Busch InBev , the world's biggest brewer, on Thursday smashed profit expectations during a quarter that saw a social media-driven boycott of its bestselling Bud Light beer in the U.S. AB InBev's U.S. revenues were down 10.5% in the second quarter, according to its results, as core profit fell 28.2%. In its earnings statement, AB InBev said research conducted on its behalf through a third-party firm showed 80% of 170,000 consumers surveyed were "favorable or neutral" towards the Bud Light brand. The company did not specifically mention the Bud Light boycott

Persons: Bud Light, influencer Dylan Mulvaney, Zak Stambor Organizations: Anheuser, Busch, Busch InBev, U.S, InBev, Bud, Constellation Brands, Modelo, InBev's, Insider Intelligence, Bud Light Locations: Miami , Florida, Belgium, United States

☆ A retailer just blocked 42,000 customers from its site for returning too many items. It could trigger a new wave of returns backlash.
▼ + stars: | 2023-05-25 | by ( Grace Mayer | Associated Press | ) www.businessinsider.com time to read: +3 min

Sweden-based online fashion retailer Bootz AB blocked 42,000 customers for returning too many items. Bootz's policy is part of a larger trend among retailers who are charging customers for making too many returns. While levying these measures against customers isn't new, shoppers are making more returns than ever before, Insider reported. Some retailers are now wanting customers to shoulder the cost of returns, by charging them fees to make those returns, Insider reported. Amazon, TJ Maxx, and Abercrombie & Fitch, are just a few brands that are charging customers who make online returns.

☆ Best Buy plans to open more outlet stores selling used and refurbished items as consumers pull back on buying new electronics
▼ + stars: | 2023-03-03 | by ( Avery Hartmans | ) www.businessinsider.com time to read: +3 min

Best Buy plans to open more outlet stores to appeal to "value-focused" shoppers. Best Buy forecasts another "down year" for the electronics industry, but expects a rebound in 2024. The outlet stores, which Best Buy began opening in 2021, allow customers to shop for open-box electronics and appliances. "We will open more outlet stores that support our value-focused customers," Barry said. Insider Intelligence predicts computer and consumer electronics sales will grow just 2.5% in 2023 — in 2021, the category grew 13.8%.

☆ Kohl's blamed its rough quarter on a squeezed middle class, but one analyst says it's because stores are a mess
▼ + stars: | 2023-03-01 | by ( Avery Hartmans | ) www.businessinsider.com time to read: +4 min

But one analyst blamed messy Kohl's stores and "dispiriting" stores during the holidays. Kingsbury said that Kohl's store portfolio remains healthy. Kohl's partnerships with other brands is driving sales, CEO saysKohl's and Amazon inked a deal in 2019 that allows Amazon customers to return items to Kohl's stores. Ted Shaffrey/APKingsbury also highlighted Kohl's partnership with Sephora, which operates store-in-store concepts in Kohl's locations across the US. Kohl's previously said that the Amazon partnership drew over 2 million new customers to its stores in its first year.

☆ Kohl’s had a rough holiday
▼ + stars: | 2023-03-01 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —As consumers pulled back on their holiday spending amid biting inflation, it seems that Kohl’s dropped off many shoppers’ lists. Sales at Kohl’s stores open for at least one year dropped 6.6% during the holiday quarter, the company said Wednesday. Kohl’s comments echo those of other retailers, like Walmart (WMT) and Target (TGT), who have said consumers are strained, although those companies posted stronger holiday results than Kohl’s did. This change in shopping behavior hurts Kohl’s more than big-box rivals because the chain does not sell food, nor as many necessities. In November, Kohl’s chief executive Michelle Gass announced she was leaving the company to become the CEO-in-waiting at Levi’s (LEVI).

☆ Americans are comfort eating potato chips, popcorn, and pretzels as economic anxiety rises and recession looms
▼ + stars: | 2023-02-08 | by ( Mary Hanbury | ) www.businessinsider.com time to read: +3 min

The US salty snack market is continuing to grow even as consumers feel the pinch. According to Mintel's survey, more than a quarter of people have increased their consumption of salty snacks in the past year, with 47% of millennials eating more chips, popcorn, and pretzels. "As consumers continue to navigate stressful and evolving times, salty snacks can be there to help them slow down and even relieve stress," Mintel analyst Kelsey Olsen in a statement. "Salty snacks are winning in their ability to satisfy cravings and meet emotional needs, expanding their role beyond a quick hunger-satisfying solution." "Snacking continues to be a way for consumers to connect or to enjoy a moment of delight in their day," he added.

☆ Shoppers' returns are spiking to unprecedented levels — driving a $280 billion problem that's starting to backfire against them
▼ + stars: | 2022-12-07 | by ( Alex Bitter | ) www.businessinsider.com time to read: +5 min

Inflation and a phenomenon called 'bracketing' are driving returns, Insider Intelligence says. Returns add another layer of cost and complexity for retailers, Insider Intelligence analyst Zak Stambor wrote in the report. Depending on the way they handle returns, retailers could be on the hook for packaging, shipping, and labor costs, he wrote. Zara is among the stores that have started charging shoppers if they return items by mail. Amazon, for example, allows customers to return items purchased on its website at Whole Foods grocery stores, which the company owns.

☆ Consumers are looking to chocolate, Oreos, and Twinkies to 'not feel terrible all the time' — Hershey, Hostess, and Mondelez are cashing in
▼ + stars: | 2022-11-15 | by ( Alex Bitter | ) www.businessinsider.com time to read: +6 min

Consumers are buying more chocolate and cookies as recession fears hang over the economy. But they are still buying smaller pleasures, including sweet treats like cookies and chocolate. Now, many of the same companies are seeing sales of chocolate, cookies, and other sweet snacks rise. "Our products remain an affordable treat for families and consumers," Michele Buck, the CEO of Hershey, told analysts on a call. While consumers cut back spending in many areas, such as travel, sales of lipstick actually grew.

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