Today in retail, Uber launches a pair of Los Angeles-based robotic delivery pilot programs, while Walmart and Target are among the big retailers set to report their quarterly earnings this week. Plus, Walmart is struggling to find manager candidates, even with a $210,000-plus salary.
Uber Eats Launches Two Robotic Delivery Pilots as Restaurant Industry Struggles to Meet Demand
Uber launched two Los Angeles-based robotic delivery pilot tests Monday (May 16): one in partnership with driverless vehicle technology company Motional and one with autonomous sidewalk delivery company Serve Robotics, which spun off from delivery company Postmates (now owned by Uber) in 2017.
The news comes as restaurants struggle to meet delivery demand amid rising labor costs, as the economics of the channel have become more challenging. For instance, Domino’s Pizza, a brand known for its huge delivery business and its own in-house driver fleet, has been leaving demand for the channel unmet.
On a late April earnings call, Russell Weiner, chief operating officer of Domino’s and president of the brand’s U.S. operations, said these issues are “in our and our franchisees’ control,” arguing that as the impacts of the pandemic become less relevant, they will become more manageable.
GameStop Names Former Belk Stores CEO Nir Patel As COO
Former Belk CEO Nir Patel will be joining GameStop as its new chief operating officer, effective May 31.
Patel, who has also held senior roles at Kohl’s and Lands’ End, oversaw Belk’s growth to more than 300 stores in 16 states. In a press release, GameStop said Patel has roughly two decades of experience in operations, merchandising, supply chain, and retail and store operations.
He will replace Jenna Owens as chief operating officer after she left the company in October.
Walmart Aims to Fast-Track Grads Into $200k+ Store Managers
Walmart is raising the stakes in the industry’s wage war with a new plan to recruit and train store managers for a role it said carries an average annual salary of $210,000.
In a bid to attract and retain employees for its 5,000 U.S. stores and warehouse clubs, as well as its network of 210 distribution centers, the Arkansas-based retail giant is appealing to students still in high school and college, wanting them to view a job at Walmart as a career starting point.
Walmart said it is piloting a new “College2Career” program this summer that will give young workers work experience, calling it an “opportunity to jump-start their careers by helping to run a multimillion-dollar business — one of our Walmart stores.”
Weber’s efforts to turn around its flagging omnichannel retail business didn’t work out as planned in the second quarter of fiscal 2022 — the three months ending March 31.
The company reported a net loss of $51 million year over year and a 6% drop in net sales from the same time in 2021 to $607 million this year. As a result, investors pushed Weber’s stock price down 7% in early trading Monday (May 16). Notably, Weber’s net sales are up 46% from 2020, an interesting result given how many people were stuck at home two summers ago.
It’s ‘TMI Week’ for Retail, as Walmart, Target, Home Depot, Lowe’s Lead Earnings Parade
A half-dozen of the world’s largest and most important players will report their most recent quarterly earnings alongside the government’s most recent reading on April retail sales this week.
Walmart will kick off the weeklong parade Tuesday (May 17) with fresh insight on how its 4,700 domestic stores are doing at meeting consumers’ changing needs. Walmart’s shares are up 10% since it last reported Q4 earnings three months ago, compared to a 10% decline for the S&P 500, and an expectation for just 1% top-line growth.
Meanwhile, Target has been leading the pack in digital transformation and strategic innovation. Even though 20% of sales are being done online, 96% of its revenue is already being fulfilled through its network of 1,900 domestic stores. Investors will be looking to see if the company’s five-year string of uninterrupted same-store sales growth remains intact, a streak it has managed to continue through the pandemic.
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