Today in retail, Oxford Industries’ CEO said consumers are willing to pay full price when they find a brand that makes them happy, while Instacart is creating micro-fulfillment warehouses for instant deliveries. Plus, Movado Group announced a 15.5% net sales growth in its fiscal 2022 fourth-quarter earnings report.
Consumers Pay Full Price for Brands That Make Them Happy, Tommy Bahama Parent Says
Oxford Industries CEO Thomas Chubb said customers’ willingness to pay full price across its brands — including Tommy Bahama, Lilly Pulitzer, Southern Tide, The Beaufort Bonnet Company and Duck Head — in 2021 was particularly strong in its direct-to-consumer (D2C) businesses, which accounted for 80% of its sales.
For the three months ending Jan. 29, Oxford said its sales rose to $300 million, marking a 35% increase from a year ago and a $2 million advance from where it was in January 2020.
Chubb said he expected to be in a “somewhat more promotional environment” due to inflationary cost pressures and a challenging labor market, but he said he is still confident in Oxford’s ability to deliver double-digit, top- and bottom-line growth this year and this quarter.
Traeger Stock Down Almost 16% After Grill Maker Predicts Sales Drop
Traeger Inc.’s stock is down about 16% in mid-afternoon trading Thursday (March 24) after the grill maker said in a Wednesday (March 23) press release that it’s anticipating lower sales for fiscal 2022 because of inflation, lower customer confidence and tighter margins.
Traeger lost $33.7 million in the fourth quarter of fiscal 2021, compared to a $3.3 million loss in Q4 of fiscal 2020. The company’s revenue for the latest quarter, meanwhile, was up 30.8% year-over-year to $174.9 million.
Movado Group’s Online Retail Growth Leads to 15.5% Net Sales Increase
Movado Group celebrated its growth in online retail as one of the driving factors in its fiscal 2022 fourth-quarter net sales increase of 15.5% for the three-month period that ended Jan. 31.
Overall, net sales were up from $178.3 million in Q4 of FY21 to $206 million in FY22’s final three months, according to the company’s earnings report released Thursday (March 24). Movado also saw growth in its wholesale brick-and-mortar sales and at Movado stores to create the sizeable year-to-year jump.
Deep Discounter Ollie’s Says Consumer ‘Trade-Down Effect Is Coming Soon’
Ollie’s Bargain Outlet, which was launched in 1982 amid the last bout of double-digit inflation, is preparing for a big 40th anniversary year, saying its 431 “semi-lovely stores” in 29 states are well-positioned for the latest round of consumer belt-tightening.
Although 80% of its sales come from the 12.6 million repeat customers who belong to its “Ollie’s Army” loyalty program, consumers who have never shopped in a Bargain Warehouse before will have 45 new places to do so this year, as Ollie’s moves forward with a brisk new-store opening plan en route to 1,050 locations.
Instacart Plans Micro-Fulfillment Warehouses for Instant Delivery
Instacart is planning to launch micro-fulfillment warehouses to gain a competitive edge as Amazon continues taking a bigger piece of the grocery delivery market and newcomers such as Gopuff crowd the landscape.
The decision also supports Instacart’s post-pandemic strategy to pivot from a gig economy food delivery platform catering to consumers to one that provides solutions to retailers. Carrot Warehouses, Carrots Ads, and Carrot Insights are some of the central services that will be extended to merchants.
Instacart’s first deal is with the Florida grocery chain Publix, with initial launch plans in Miami and Atlanta. The company is also in talks with ALDI, Schnuck Markets Inc., Good Food Holdings, Plum Market, Key Food, Food Bazaar and more.
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