Today in retail, Dickies embraces virtual fitting to great success while Jana Partners slashed its ownership stake in Macy’s after pushing it to separate its eCommerce business from the brick-and-mortar operation. Plus, brands building super apps to meet customers’ desire for increased rewards programs, and Affirm’s perception depends on where you sit across the supply chain.
Jana Partners Cuts Stake in Macy’s by 84%
Activist investment firm Jana Partners reduced its stake in Macy’s by 84% at the end of 2021, from 4.6 million shares to 760,780, after pushing the retailer to separate its eCommerce operations from its brick-and-mortar business, according to a report Monday (Feb. 14).
Jana began pushing Macy’s to separate its $8 billion eCommerce business from its traditional stores last fall, saying the eCommerce side could be worth far more. Macy’s projected in February 2021 that its eCommerce business would hit $10 billion by next year.
Macy’s began discussions with consulting firm AlixPartners in December. AlixPartners had worked with Saks Fifth Avenue owner HBC on separating its eCommerce operations from its physical stores.
Valentine’s Day 2022 Set to Be a $24B Lovefest Despite Price and Product Issues
Americans will spend almost $24 billion on Valentine’s Day gifts this year, nearly 10% above the $21.8 billion spent last year, according to National Retail Federation estimates.
That includes 56% of shoppers buying candy, 40% buying greeting cards, 37% buying flowers, 31% planning an “evening out” and 22% giving jewelry to their sweetheart. The NRF pegs average 2022 spend at $175.41 per person, beating the $164.76 spent in 2021.
Brands Migrate to Seamless Super App Loyalty Programs That Work Everywhere
California winemaker E&J Gallo said Monday (Feb. 14) it is expanding a pilot program with Fetch Rewards that will reward consumers, regardless of where they purchase Gallo products, including Apothic, Barefoot and Black Box brands.
Fetch says it has 13 million active users who have submitted more than 2 billion receipts and earned more than $290 million in rewards points that are redeemed for gift cards and other perks. It recently surpassed $100 billion in gross merchandise value (GMV), equivalent to the seventh-largest retailer in the U.S.
Almost three out of every five respondents (58%) to the PYMNTS 2021 Holiday Shopping Outlook said they are “very” or “extremely” interested in online stores and brands that offer customer rewards programs, covering consumers across the entire economic spectrum.
Chinese Makeup Warehouse Chain Harmay Raises $200M To Fuel Expansion
Chinese beauty brand Harmay recently completed a pair of fundraising rounds totaling $200 million in investment capital that the company plans to use to expand into new categories and markets, while also building its digital presence, boosting its brand portfolio and increased collaboration with other brands.
Harmay, which has more than 400 employees, has nine brick-and-mortar stores across China that sell more than 9,000 products from more than 400 international beauty and lifestyle brands. The company plans to add stores this year in several cities, including Wuhan, Guangzhou and Shenzhen.
Investors, Merchants and Consumers Have Drastically Different Views of Affirm
Shares of buy now, pay later (BNPL) provider Affirm fell 45% late last week, extending a three-month decline that is now approaching 70%, but the company’s core consumer and merchant constituencies routinely praise the company, its technology, as well as its products and prospects.
A PYMNTS study last month showed that 50 million consumers have used BNPL in the past year, and Affirm was among the top four services used, with 34% using it online and 30% taking advantage of it in-store.
VF’s Dickies Brand Boosts Conversions, Slashes Returns With Virtual Fitting
VF Corp. is seeing a surge in customer buying and satisfaction, as well as a reduction in returns, less than a year into its 3DLOOK artificial intelligence (AI)-driven virtual fitting program.
3DLOOK and VF teamed up in May to help custom-fit its Dickies apparel brand for young, digitally active Chinese consumers using Alibaba’s Tmall platform. VF has seen gains in several key retail metrics, but most notably a 94% increase in conversions since it implemented the program since May. Dickies reported that 87% of customers said 3DLook’s digital fitting tool had improved the shopping experience and that they would like to see the size and fit recommendations software added to more products.
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