Today in retail, Bed Bath & Beyond reports a loss in earnings, while REI plans to expand its trade-in program. Plus, Etsy feels immediate backlash from sellers related to a transaction fee increase, the gap between Amazon and Walmart is widening, Blackwells Capital again calls on Peloton to sell the company, shoppers want convenience whether shopping in person or online, and LVMH hits double-digit growth in most business segments and geographic regions.
Bed Bath & Beyond Slams Into Unforeseen ‘Impediments and Vulnerabilities’
Household furnishing retailer Bed Bath & Beyond reported an unexpected loss in its most recent quarterly earnings, a 12% drop in same-store sales and an 18% decline in its online business. While Bed Bath & Beyond CEO Mark Tritton blamed a “lack of available inventory to sell” in the retailer’s 1,100 stores and website as part of the problem, he stressed the trend would correct itself in the coming quarters as expected supply chain improvements kick in during the second half of the year.
REI to Bring Trade-Ins, Used Outdoor Gear Marketplace to All Stores by Midyear
REI Co-op announced in its 2021 earnings report that it is expanding its Re/Supply trade-in program and used outdoor gear marketplace to all stores by the middle of the year after launching it in select stores last year. The Re/Supply initiative allows co-op members to trade in and purchase used gear, which typically avoids carbon emissions of 50% or more. The company grew its used gear business by 86% in 2021 compared to one year earlier.
Etsy Must Craft Solution to Ease Ire of Sellers, Investors, yet Still Compete With Amazon
Since Black Friday, shares of Etsy have shed 60% — or roughly $20 billion of market value — as its faltering stock has plummeted to a 19-month low. Etsy will be looking to restore investor confidence when it reports its first-quarter earnings results in early May and is contending with a weeklong strike by thousands of its small, home-based artisans who are protesting and petitioning the company’s 30% transaction fee increase, which took effect Monday (April 11).
5 Things You Need to Know About the Amazon-Walmart Cage Match
New research shows that the gap is widening between Amazon and Walmart as eCommerce continues its ascent. In Q4 2021, the strength of the mobile internet combined with a pandemic shift to eCommerce found Amazon surpassing Walmart sales in all but one category — grocery — as the two battled over the $5.5 trillion spent on retail purchases last year.
Investor Blackwells Capital Renews Push for Peloton Sale
Activist investor Blackwells Capital has renewed its calls for Peloton to put itself up for sale, claiming the connected fitness brand continues to flounder under new CEO Barry McCarthy and that the company’s brand, technology and subscriber base can be molded into a more appealing business. However, Blackwells — which owns less than 5% of Peloton — also said that transformation can’t happen in the public markets.
New Study Shows Digital Pickup and Delivery Features No Longer Optional for US Merchants
In-store and curbside pickup has taken off in the United States, where eCommerce shoppers pick up their online orders four times as much as consumers in Australia, Brazil, Mexico, the United Arab Emirates and the United Kingdom. What is more is that among those that do, 47% wind up buying more on their trip to the store. PYMNTS’ “2022 Global Digital Shopping Playbook: U.S. Edition” delves into the details of the key drivers that bring this brave new cross-channel U.S. retail market into the limelight.
LVMH Achieves Double-Digit Growth in Most Groups, Regions
LVMH Moët Hennessy Louis Vuitton saw a 29% spike in its 2022 first-quarter revenue, hitting 18 billion euros (about $19.5 billion) for the first three months of the year. Only the Wines and Spirits segment of the business failed to grow by double digits in Q1, with supply chain constraints continuing to hamper that sector. Overall, the company achieved 23% organic growth for the quarter.
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