More collapses expected in retail's 'killing season'
- The growing popularity of Black Friday promotions, a shift to online shopping and burgeoning debt levels have contributed to the recent spate of retail collapses, according to the administrator of struggling clothing chain Jeanswest.
- KPMG partner James Stewart, who leads the firm's restructuring services business, said Jeanswest had been losing money for several years and was afflicted by the same problems that had contributed to the demise of thousands of retailers in Australia and overseas in recent years.
- These include the shift to online retailing, which is undermining the profitability of retailers' bricks and mortar stores; Black Friday, which is pulling forward sales from December to November at lower margins; and rising debt levels following the banking royal commission.
- Most of the retailers that collapsed in the past year, which include Bardot and Harris Scarfe, had strong online businesses but the sales shift to the internet had damaged their bricks and mortar model.
Shopify to boost Vancouver presence with 1,000 hires, new permanent office
- E-commerce giant Shopify Inc. is expanding its footprint on the West Coast with plans to hire 1,000 workers in Vancouver, where it will also build a permanent office.
- The focus of the operation will be on building software and expanding its research and development team, which supports about one million website customers around the world, the Ottawa-based company said in a statement Tuesday.
- Retail e-commerce in Canada in November rose 6.6 per cent from the same month a year earlier to $2.4 billion, according to Statistics Canada.
- Shopify said earlier that it’s spending more than US$1 billion to build and operate a network of fulfilment centres across the U.S. to help retailers cut shipping and improve delivery times.
- In May, Shopify opened its newest office in Toronto and plans to double its workforce in the city to 1,500 by opening more new space in 2022, the company said.
Apple is limiting China travel and has closed one retail store due to coronavirus outbreak
- Apple CEO Tim Cook said on Tuesday that the company began limiting employee travel to China last week amid the coronavirus outbreak, and that Apple has closed one store in mainland China and reduced operating hours for other retail locations.
- The announcement is yet more evidence that the virus is affecting the tech industry’s presence in one of its most vital markets, both for sales and manufacturing operations.
- Foxconn, one of Apple’s lead supplier, said on Tuesday it did not expect the coronavirus to affect its manufacturing timelines.
- Cook made the announcement on a call with investors after Apple’s quarterly earnings release, saying, “We have closed one of our retail stores and a number of channel partners have also closed their storefronts.” Apple says sales in the area around the city of Wuhan, where the coronavirus outbreak is said to have originated, are low.
THE OMNICHANNEL FULFILLMENT REPORT: Why the death of brick-and-mortar has been greatly exaggerated
- Likewise, BORIS is poised for steady growth in the near future: US retailer adoption of BORIS is expected to increase from 40% in 2017 to 81% in 2024, more than doubling over the period, according to Business Insider Intelligence estimates.
- As these services become increasingly popular and consumers come to rely on them, retailers will need to find a way to implement them in a way that distinguishes them from their competitors' offerings.
- In The Omnichannel Fulfillment Report, Business Insider Intelligence examines the current trajectory of BOPIS and BORIS and provides strategies retailers can use to implement them.
- We first examine the growth that each service is expected to see in the next few years, as well as the drivers of higher adoption among both consumers and retailers.
- We then look at some best practices that retailers can use to develop BOPIS and BORIS offerings that will help them stand above their competitors as the services grow in popularity.
This Is Why the Dow Jones Surged 225 Points Today
- The Dow Jones rallied aggressively on Tuesday, rising 226.21 points or 0.79% to 28,762.01 as the U.S. stock market enjoyed a respite from risk-off trading conditions.
- Adding to the positive mood, CB consumer confidence was impressive, suggesting retail spending could continue to bolster the Dow. Despite its fantastic recovery, the Dow Jones was the laggard among the three major U.S. stock market indices.
- With the stock market enjoying a healthy bout of risk-on, the move in the Dow Jones was aided by the World Health Organization’s continuing reluctance to label the coronavirus epidemic as a global crisis.
- The risk of this remains high because the disease is a rampant problem in China, with CNBC’s Jim Cramer warning that buying into this stock market like standing on “quicksand.” He suggests that although the rally in the Dow has been strong, it could reverse almost as quickly.
Canopy Growth shares surge after BMO upgrades stock, raises target price to $40
- She noted that while Canopy and other major LPs such as Hexo Corp., Tilray Inc. and Aphria Inc. have experienced “meaningful market-share expansion,” she believes Canopy’s value-price brands in particular have “likely taken some share” from Aurora Cannabis Inc. and Organigram Holdings Inc. Recreational retail pricing declined sharply in December, according to Statistics Canada data, due in part to companies launching cheaper lines of dried flower products.
- The latest sales data from Health Canada showed that despite the lack of retail outlets across Ontario, cannabis sales in November increased roughly five per cent from the month before, totalling $136 million.
- After a bearish few months, cannabis stocks have seen a rally since the new year, due in part to better-than-expected earnings results from some of the major licensed producers, the introduction of cannabis 2.0 products and investor optimism at the opening of new retail stores across Ontario.
Gen Zers have a spending power of over $140 billion, and it's driving the frenzy of retailers and brands trying to win their dollars
- For stores looking to connect with Gen Zers — who have a spending power of $143 billion and will account for about 40% of global consumers this year — it's clear that retailers and brands need to invest in researching how this new generation shops, even if it means disrupting traditional blueprints.
- Though, to court younger consumers, it might be best for brands to focus less on pop-up experiences, and more on establishing a long-term presence — at least according to one study conducted by communication management company Retail Zipline, which found that many Gen Zers prefer longstanding retailers over pop-up shops.
- Nordstrom's traditional brick-and-mortar setting, combined with the intimate experiences of a pop-up, has allowed for the retailer to establish itself as good partner both for brands and for shoppers.
How Amazon escapes liability for the riskiest products on its site
- For years, the online retail company has argued that many of its customers are simply passing through to use its platform — that the buyer and seller of the product are connecting, and Amazon is merely a passing intermediary.
- Tightly integrated into Amazon’s own sales, Marketplace products are often cheaper for consumers, less controlled, and sometimes less reliable than other products — and because Amazon is usually seen as a platform for those sales rather than a seller, the company has far less liability for anything that goes wrong.
- In an academic paper set to be published next year in the Brooklyn Journal of Corporate, Financial & Commercial Law, two professors argue that Amazon acts as a “heavy hand” in its Marketplace, closely influencing purchases on its platform.
Celebrities from Brad Pitt and Selena Gomez to Jeff Bezos have worn this millennial CEO's eyewear brand. Here are Garrett Leight's 5 key tips for aspiring entrepreneurs.
- In an interview with Business Insider about his career, Leight also gave some advice for others who aspire to enter the luxury retail field, and for entrepreneurs who have launched — or who are thinking about launching — their own business.
- In speaking about luxury retailer Barneys, Leight said one of the main reasons the store failed in the 2010s is because it didn't establish an "identity" that could connect with the younger generations.
- When speaking about how his brand uses social media for marketing, Leight and his brand's chief communications officer Jamie Katz emphasized that they rely on authenticity in order to connect with customers, future buyers, and most importantly, brand ambassadors.
- To ease his stress, Leight makes sure he involves himself in activities that can take his mind far away from the world of business and entrepreneurship.
Ecommerce and online payment technologies market trends in 2020
- The e-commerce ecosystem is rapidly evolving thanks to advances in online payment processing and electronic payment technology, as well as the willingness of almost all merchants to accept credit cards online.
- And while e-commerce's portion of the total share of the U.S. retail market is still relatively slim, nearly all of the growth in the retail sector now occurs in online sales.
- Below, we've outline the market outlook for e-commerce, listed some online payment statistics, and examined some online payment trends.
- Business Insider Intelligence predicts that global e-commerce volume will increase from $3.1 trillion in 2018 to an expected $5.8 trillion in 2024.
- Given the rise in online shopping, Business Insider Intelligence estimates that the revenue for companies processing online payments will increase from $82 billion to $138 billion between 2018 and 2024.
- Business Insider Intelligence's Payments Ecosystem research report examines the payments ecosystem today, its growth drivers, and where the industry is headed.