China’s sluggish economy is bad news for everyone: While many retailers had been optimistic that a resurgent Chinese economy could offset slowing US growth, that now looks unlikely.
On today's episode, we discuss whether Amazon can keep expenses down while also keeping customers happy, where the company will place its bets on grocery, and how its advertising arm has performed of late. "In Other News," we talk about why most retailers site searches aren't working and how many streaming viewers will watch ads to save a few bucks. Tune in to the discussion with our director of Briefings Jeremy Goldman and analyst Zak Stambor.
“Shopping apps and marketplaces that specialize in ultralow-cost goods from China are gaining a foothold among US consumers—with broader implications for the future of ecommerce,” our analyst Sky Canaves wrote in our Chinese Ecommerce in the US report. Canaves expanded on what’s driving this retail opportunity for companies like Shein, Temu, and TikTok in the US and how it will impact the US market on a recent “Reimagining Retail” podcast episode.
Amazon is scaling back its private-label business: The company is cutting dozens of its brands in what appears to be a concession to the FTC.
Tapestry challenges European luxury dominance with Capri Holdings acquisition: The $8.5 billion purchase will enable the Coach owner to push upmarket and grow its share of global luxury sales.
Walmart is in a good spot right now: The retailer’s share of grocery sales keeps growing, which is providing fuel for it to build upon its retail media business.
US inflation continued its downward trajectory in July: Real wages also rose, giving consumers some much-needed relief, even though price pressures remain acute.
Retail media is one of the fastest growing ad channels we track, due in part to the allure of closed-loop attribution powered by retailers’ first-party consumer data. But advertisers are starting to curb their enthusiasm given measurement challenges stemming from the lack of methodological standards across platforms. As it stands, it’s nearly impossible for advertisers to compare platforms against each other, which can lead to misallocation of budgets.
The initial wave of excitement over generative AI is fading, leaving many retailers asking, “Now what?” Some might want to look toward Shopify, which is incorporating generative AI capabilities across its platform to help sellers build and scale their businesses more quickly. Or maybe take a cue from eBay, which is using the tech to make more accurate and helpful product recommendations. Meanwhile, Etsy is working to democratize access to machine learning models to help speed up deployment across its organization.
PayPal USD could be a market mover and expand stablecoin payments adoption
Rolling out cards in Latin America’s largest ecommerce market can help Amazon capture more volume as it grows its financial solutions
But the metric doesn’t take into account the full picture of consumers’ financial health
US adults are fairly evenly split on using mobile payment apps online versus in-store—except with PayPal, where 36% of users use the platform online most often, compared with 29% of users who use the app in-store, according to CivicScience.
LiveRamp broadens Pinterest collaboration: Global advertisers to benefit from enhanced data integration.
On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss the opportunity for China-based companies like Shein, Temu, and TikTok in the US, and how they can compete with Amazon. Then for "Red-Hot Retail," our analysts give us some spicy predictions about how fashion retail will change in the US as a direct result of Chinese manufacturers. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and researcher and Asia-Pacific lead Man-Chung Cheung.
The landscape has looked good for retailers this earnings season: But several potential challenges could derail that positive momentum in the months ahead.
Warby Parker and Allbirds are headed in opposite directions: Warby Parker boosted its outlook after reporting another quarter of growing sales and profits, while Allbirds continued to struggle.
The RealReal and thredUP set their sights on premium shoppers: Both companies are targeting bigger spenders to improve margins and achieve profitability by next year.
Carvana expects profitability to improve in Q3 as cost-cutting initiatives bear fruit: It’s well-positioned to capitalize on higher interest rates and new car prices.
AB InBev’s craft-like beer and beverage footprint is shrinking: The company is selling eight brands to Canadian cannabis company Tilray as it looks to boost its bottom line.