Top 500 U.S. E-Retailers | Digital Commerce 360

CarParts.com’s Q2 earnings sag as CEO discusses transition

Kevin Williams — Thu, 01 Aug 2024 20:33:28 +0000

CarParts.com saw its Q2 earnings decline 18% from the same period a year ago to $144.3 million. Still, company leaders expressed confidence that the lower earnings are part of a broader transition at the company that they believe will lead it to profitability.

“In the second quarter, we made significant progress on gross margin and operating efficiencies, which reinforces our confidence that we’re on the right track,” said CarParts.com CEO David Meniane. “We expect the fiscal year 2024 to be a low watermark year as we execute on the changes we have been making.”

CarParts.com is No. 147 in the Top 1000 Database, where Digital Commerce 360 ranks the largest North American ecommerce retailers by annual online sales. There, it is classified as an Automotive Parts & Accessories retailer. Digital Commerce 360 projects that CarParts.com web sales will reach $677.51 million in 2024.

CarParts.com web sales by year

CarParts.com Q2 earnings results

Meniane said the company expects its newly realized operational efficiencies will lead to more robust earnings in 2025. Other notable numbers from the Q2 report include:

Gross profit of $48.4 million, a reduction from $60.4 million in the year-ago period, with gross margin of 33.5%.
Net loss was $8.7 million, or down $0.15 per share, compared to a net loss of $0.7 million, or $0.01 per share.
Adjusted EBITDA of $0.1 million, which is a reduction from $6.3 million the prior year.
Cash of $34.1 million and no revolver debt.
Total cumulative mobile app downloads of 450,000, more than doubled from the beginning of the year.

Importance of mobile app for CarParts.com digital sales

While CarParts.com has no physical presence — all its sales are digital — it is heavily promoting and refining its mobile app ordering capability, and that appears to be paying off.

Meniane said in the earnings call that 12 months after launching, mobile app sales accounted for 8% of total ecommerce revenue, with approximately 80% of customers shopping on mobile.

“Over time, we expect direct in-app purchases to drive savings and advertising spending by reducing our reliance on search engines and performance marketing, as well as incentivizing repeat purchases,” Meniane says.

But that doesn’t mean CarParts.com isn’t continuing to invest in more conventional channels.

“We continue to invest in our marketing channels,” Meniane told investors. “We are making strides on building brand awareness and recognition of our leading digital-first and customer-centric automotive ecommerce strategy, which is critical to capturing our target high-value customer base.”

Welcoming a new chief marketing officer

The earnings call also allowed CarParts.com to introduce Christina Thelin, who joined the company in July. Thelin brings over 20 years of experience in marketing with brands like Visa, Twitter, and Google. She replaces Houman Akhavan, who served in that role until last year.

“Christina will lead our strategic marketing initiatives as we continue to expand our market presence, drive customer engagement, and increase awareness for CarParts.com,” Meniane said.

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Beyond Q2 earnings show revenue down 5.7%, but key metrics show positive trends

Beth Duckett — Wed, 31 Jul 2024 20:08:04 +0000

Beyond Inc., the parent company of Overstock, Bed Bath & Beyond and Zulily, released its Q2 earnings results on July 29, reporting total net revenue of $398 million, marking a 5.7% decrease year-over-year.

Despite the drop, the online-only retailer reported some positive developments for the quarter ended June 30. Revenue was up 4% from the previous quarter. Beyond credited a 35% increase in active customers and an 18% rise in average order value from the same period a year ago. The net loss for the quarter was $42.6 million, an improvement from last year’s $73.5 million loss.

Beyond Inc. is No. 63 in Digital Commerce 360’s Top 1000 database of the largest North American online retailers. Bed Bath & Beyond formerly ranked No. 47 before its bankruptcy and Overstock.com previously ranked No. 50. Digital Commerce 360 projects Beyond’s total web sales in 2024 will reach $1.58 billion.

Beyond Inc. web sales by year

Beyond updates on turnaround effort in Q2 earnings report

“We have made significant progress in the past 150 days and will continue to execute on our plan to achieve growth and profitability,” Marcus Lemonis, Beyond’s executive chairman, said in a statement.

After acquiring the intellectual property of bankrupt Bed Bath & Beyond for $21.5 million in June 2023, Overstock.com rebranded as Bed Bath & Beyond. It then shut down the Overstock ecommerce website. By November, the company had rebranded again as Beyond Inc.

In March, Beyond backtracked on its decision and relaunched Overstock.com. It also acquired the intellectual property of ecommerce retailer Zulily for $4.5 million, with the new Zulily website slated to go live on Sept. 10.

Beyond expects profitability in 2025

In Beyond’s Q2 earnings call, Lemonis outlined plans to turn Bed Bath & Beyond into a $1 billion-plus ecommerce brand, emphasizing the need for “thoughtful and creative ways” to expand and leverage the brand’s IP for cash flow.

David Nielsen, president and CEO, highlighted that during the quarter, Bed Bath & Beyond experienced growth in core categories such as bedding, bath, and decor, as well as higher-ticket items like patio and outdoor furniture.

On the Overstock front, the brand’s online relaunch, supported by a new AI-driven marketing campaign, delivered strong performance in traditional categories like area rugs and furniture, Nielsen said. Its ecommerce site has expanded its product lineup and improved the user experience. Additionally, Overstock is set to finalize a deal with a major closeout and reverse logistics company, which could draw in more customers.

Looking ahead, Beyond plans to test a new technology, Vercel. Vercel provides an ecommerce solution that integrates with Shopify to speed up and personalize customer interactions. Over the next 18 months, the company plans to create a global loyalty program that leverages its database and partnerships with non-competing companies, with options to use and transfer reward points.

“Think about it like a Bonvoy at Marriott or a Star Alliance in the airlines,” Lemonis said.

In the coming months, he noted that Bed Bath & Beyond and Overstock typically see Q2 revenue outpace Q3 by about 12% to 14%, with Q3 serving as a transition to the busy Q4 season. The goal is to maintain or surpass this trend and improve gross margins every quarter, he said. Lemonis said he expects Beyond will achieve profitability sometime in 2025.

Other Q2 highlights reported by Beyond

Active customers numbered 6.2 million, up 35% year over year.
Orders delivered were 1.9 million, up 8% year over year.
Gross profit was $80 million or 20.1% of revenue. That’s a 530-basis-point decline year over year but a 70-basis-point improvement from the prior quarter.
Cash and equivalents totaled $186 million at quarter’s end.

The company is two-thirds of the way through a plan to cut fixed expenses by $45 million annually.

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2024 Global Online Marketplaces Report

Adam Campbell — Wed, 31 Jul 2024 17:00:07 +0000

The Global Online Marketplaces Report ranks the world’s Top 100 online marketplaces by 2023 third-party GMV by category. With digital marketplaces reaching $3.5 trillion, this Report is your key to unlocking the full potential of this powerful sales channel. It provides an analysis of the strategies and trends driving success behind an online marketplace strategy.

In 2023, fewer retailers participated in online marketplaces, but the Top 1000 retailers who did sell on marketplaces saw higher sales growth compared to those who did not. Mass Merchants dominated the top 24 spots, with other categories like Apparel & Accessories and Housewares & Home Furnishings also making it to the top 30. Total GMV showed an 8.4% growth year over year, rebounding from a 2.5% growth in 2022, indicating a recovery from the challenges faced in recent times.

The 2024 Global Online Marketplaces Report has everything you need to learn the ins and outs of digital marketplaces.

View the table of contents for full details on what’s included in the report.
Published July 2024

WHAT’S INCLUDED

25+ Data-Packed Charts

Visualize the power of the Top 100 online marketplaces in over 25 charts and graphs, covering topics like:

Total GMV and year-over-year growth for Top 100 global marketplaces, 2018-2023
Total GMV growth distribution for 2023 Top 100 global marketplaces
Web sales and growth for Top 1000 retailers by marketplace seller status, 2022-2023
Fastest growing global marketplaces
The Shopper Speaks: Exclusive Survey Data from Digital Commerce 360 and Bizrate Insights on their findings on why shoppers are embracing online marketplaces in record numbers

Here’s a sample from the report:

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Tractor Supply Company’s earnings show net sales increase in Q2

Kevin Williams — Tue, 30 Jul 2024 21:08:26 +0000

Tractor Supply Company announced its Q2 earnings results, registering an increase in sales during Q2 but falling short of analyst expectations.

Tractor Supply, which sells everything from rabbit food to garden tillers and other products with rural vibes, reported that its net sales increased 1.5% to $4.3 billion during its second fiscal quarter of 2024. Meanwhile, net income was up 0.9%.

Tractor Supply ranks No. 93 in the Top 1000 Database, where Digital Commerce 360 ranks the largest North American ecommerce retailers by annual online sales. It is categorized as a Hardware & Home Improvement retailer. As of June 29, 2024, the company operated 2,254 Tractor Supply stores in 49 states. Digital Commerce 360 projects that Tractor Supply’s web sales in 2024 will approach $1.1 billion.

Tractor Supply web sales by year

Tractor Supply Q2 earnings highlights

Compared with the same period a year prior, Tractor Supply’s net income was up 0.9% to $425.2 million in Q2, which ended June 29. That’s up from $421.1 million a year ago. Despite the gain, the result was still lower than what a consensus of analysts expected.

More highlights from the report include:

Comparable store sales decreased by 0.5%.
Selling, general and administrative (SG&A) expenses, including depreciation and amortization, increased 4.1% to $994.2 million from $955.4 million during the same period last year.
Operating income was $561.5 million in the second quarter of 2024 compared to $559.3 million in the second quarter of 2023.

CEO calls spending landscape ‘choppy’

During a conference call to discuss Q2 earnings, Tractor Supply CEO Hal Lawton said the company’s customers are dealing with an unfavorable macroeconomic environment.

“Consumer sentiment and consumer confidence are both subdued, and the consumer spending landscape continues to be rather choppy,” Lawton said.

Lawton also credited the quarter’s opening of 21 new Tractor Supply stores and three Petsense by Tractor Supply stores with boosting performance.

“Our new store productivity continues to perform very well,” Lawton stated.

Tractor Supply online results boost loyalty club

The company does not break out sales numbers for online vs. in-store, but Lawton touted TSC’s revamped loyalty program, which has a robust online component. Lawton says that the Neighbors Club loyalty program now has more than 36 million members, 5 million of whom have enrolled over the last 12 months, which has helped retain a loyal corps of customers.

“Our Neighbor’s Club retention rate remains remarkably consistent as our best customers continue to shop us more frequently and remain extremely loyal,” Lawton said, while noting some “disengagement” from non-core customers during problematic macro conditions.

Lawson made no explicit mention in the call of controversy raised during the past quarter when Tractor Supply outlined and then backtracked from its diversity, equity and inclusion (DEI) goals after a backlash from some customers.

Tractor Supply, though, generally does an effective job of knowing its customers, according to Michael Zakkour, founder and chief strategist at retail consulting company 5 New Digital.

“Tractor Supply understands its core consumer very well,” Zakkour told Digital Commerce 360. “Their demographic and the products they sell are better aligned with physical retail, and their focus on new store openings has boosted performance.”

However, Zakkour notes that its online presence is growing and improving.

“For their customers who want to shop online, the focus on improvements to their website and APP has also boosted performance,” Zakkour said.

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Deckers reports growth in Q1 earnings driven by Hoka and Ugg

Beth Duckett — Tue, 30 Jul 2024 18:42:20 +0000

Deckers Brands reported growth across its footwear properties in its Q1 earnings. The company’s first fiscal quarter of 2025, which ended June 30, saw a 22% rise in net sales to $825 million, up from $676 million the previous year. Direct-to-consumer (DTC) net sales, including digital sales, also saw a major boost, climbing 24% to $311 million from $250 million a year ago.

The company’s Hoka athletic footwear brand was the main growth driver, making up two-thirds of its net sales for the quarter.

“The brand is on track to deliver another year of healthy growth with premium products and elevated experiences that enhance our consumer connections,” said Dave Powers, Deckers’ outgoing CEO, during the earnings call.

Deckers Brands web sales by year

Deckers, which also owns Ugg, Teva, Sanuk and Koolaburra, holds the No. 51 spot on Digital Commerce 360’s Top 1000 ranking of the largest online retailers in North America. The company falls under the Apparel & Accessories category. Digital Commerce 360 projects that web sales for Deckers Brands will reach $2.1 billion in 2024.

Deckers Brands Q1 earnings growth led by Hoka and Ugg sales

Hoka set a new record in the company’s first quarter, with revenue surging 30% year-over-year to $545 million. The brand’s DTC revenue, primarily sales from its ecommerce website, grew by 33%.

Powers attributed the surge to high demand for Hoka’s products, including new launches, across the global market.

“From a DTC perspective, Hoka continues to see global gains through consumer acquisition and retention, with particular strength among retained consumers,” he said.

Ugg also delivered strong results in the quarter, with global revenue rising 14% year-over-year to $223 million, according to Powers. The growth was driven by robust full-price sales of key franchises like the Tasman and the Golden Collection, which significantly contributed to the boot brand’s DTC success in both the U.S. and international markets, he noted.

Future outlook and leadership changes at Deckers

Looking ahead, Deckers projects a 10% increase in overall revenue for the fiscal year ending March 31, 2025, reaching $4.7 billion. Hoka is expected to grow around 20%, while Ugg is expected to see mid-single-digit growth.

Powers is retiring as president and CEO on Aug. 1, with Stefano Caroti, the current chief commercial officer, set to take over both positions. Deckers also plans to nominate Caroti to the board at its 2024 annual meeting of stockholders, while Powers will remain on the board through the 2025 meeting.

Shareholders will also vote on a proposed six-for-one forward stock split during the annual meeting on September 9.

In addition, Deckers has reached an agreement to sell its Sanuk brand, which it acquired for $120 million in 2011. Details about the deal, expected to close in August, were not provided.

During the company’s October earnings call, Powers noted Sanuk’s strong product performance but said scaling the brand meaningfully within the Deckers’ portfolio would take too long.

“There’s other things that we think we can invest in, and we think that this is a brand that consumers love,” he said, adding that Sanuk “deserves a good home” versus being the “fourth or fifth brand in our portfolio.”

More Q1 earnings highlights for Deckers

For the quarter ended June 30, 2024, Deckers reported:

Sanuk’s net sales decreased by 28.4%, to $6.9 million from $9.6 million a year ago.
Teva’s net sales fell 4.3%, to $46.3 million from $48.4 million.

Other brands, primarily Koolaburra, saw net sales surge 123.5% to $4 million from $1.8 million.

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Ecommerce earnings recap: What you missed from Deckers Brands, Tractor Supply and more

Brian Warmoth — Mon, 29 Jul 2024 20:50:25 +0000

New earnings results are out from retailers in Digital Commerce 360’s Top 1000 database. The week saw positive signs for direct-to-consumer footwear as Decker Brands reported an increase in net sales of 22.1% year over year. Meanwhile, Tractor Supply recorded a 1.5% increase in net sales for its quarter. Read more ecommerce earnings coverage here.

Parentheses indicate the merchant’s ranking in the Top 1000, unless otherwise stated. The database ranks North America’s largest ecommerce retailers by their annual web sales.

This week’s ecommerce earnings takeaways

Decker Brands saw net sales rise 22.1% in its first fiscal quarter of 2025.
Tractor Supply offset a 0.5% drop in comparable store sales with help from its newest stores.

Albertsons (No. 24)

Q1 2024 earnings: Albertsons reported near-flat net sales growth year over year to $22.4 billion in its fiscal first quarter, which ended June 15. Meanwhile, digital sales rose 23% during the same period.

Read more on Albertsons’ earnings here.

Deckers Brands (No. 51)

Q1 2025 earnings: Deckers Brands said net sales increased 22.1% to $825.3 million in its fiscal first quarter, which ended June 30. Meanwhile, digital sales rose 23% year over year during the same period for the company, which owns the Hoka, Ugg and Teva footwear brands.

“From a regional standpoint, DTC growth was robust across international regions and within the U.S., which increased 31% and 21%, respectively,” said Stefano Caroti, chief commercial officer and incoming president and chief executive officer at Decker Brands, during the company’s earnings call. “Among international regions, growth was most meaningful in China and EMEA as both drove strong increases online and benefited from successful recent retail store openings.”

Read more on Deckers Brands earnings here.

Tractor Supply Co. (No. 93)

Q2 2024: Tractor Supply Co. announced that its net sales increased 1.5% to $4.25 billion during its fiscal second quarter ended June 29, 2024. The company attributed the growth to new store openings, which it said helped as comparable store sales declined 0.5% year over year.

“We are pleased with our second quarter EPS results that were in line with our outlook,” said Hal Lawton, president and chief executive officer at Tractor Supply. “My sincere appreciation goes out to our more than 50,000 Team Members for living our Mission and Values every day as we focus on taking care of our customers and each other.”

Read more on Tractor Supply earnings here.

Other recent ecommerce earnings results

Alibaba Group Holding Limited

Q4 2024: Alibaba said it grew revenue 7% year over year in its fiscal fourth quarter ended March 31, 2024. Meanwhile, net income decreased 96% compared to the prior Q4.

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by third-party GMV. Tmall ranks No. 2. Both operate in China.

Amazon.com Inc. (No. 1)

Q1 2024 earnings: Amazon net sales increased 13% to $143.3 billion in its fiscal first quarter. Meanwhile, its operating income more than tripled.

It ranks No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV).

Read more on Amazon’s earnings results here.

Birks Group Inc. (No. 1766)

FY 2024 earnings: The Birks Group announced that net sales increased 13.7% year over year to $185.3 million (CAD) in its 2024 fiscal year that ended June 29, ultimately leading to a net loss of $4.6 million (CAD). The jewelry retailer credited demand for watches and jewelry during the period and noted that it plans to invest in its website and ecommerce platform.

Read more on Birks Group’s earnings here.

Goodfood Market Corp. (No. 538)

Q3 2024 earnings: Goodfood Market Inc. said that net sales decreased 8.5% year over year to $38.6 million (CAD) in its third fiscal quarter of 2024 that ended June 1. Goodfood attributed the drop to a lower number of active customers, even as average order value increased.

The meal solutions company noted that it was optimizing prices, increasing its variety of meal kits and integrating grocery-product add-ons as it looks to improve sales.

“With our strengthened financial position, we enter the fourth quarter, which is typically marked by a seasonal slowdown in business activity as customers spend more time outside of their homes, with the opportunity to build additional momentum on the implementation of our intrinsic and external growth plan,” said Jonathan Ferrari, CEO at Goodfood.

The Home Depot Inc. (No. 4)

Q1 2024: Home Depot reported that sales declined 2.3% in its fiscal first quarter of 2024 ended April 28 due to challenges in the broader economy. B2B and Pro sales were equally impacted, while online sales grew.

Johnson & Johnson (No. 358)

Q2 2024 earnings: Johnson & Johnson reported that net sales grew to $22.4 billion in its fiscal second quarter, which ended June 30. That’s up 4.3% year over year. The company’s earnings do not break out ecommerce sales. However, it did note offerings that boosted sales during the period.

“Johnson & Johnson’s second quarter performance reflects our relentless focus on advancing the next wave of medical innovation and resulted in strong sales and adjusted operational earnings per share growth,” said Joaquin Duato, chairman and chief executive officer at Johnson & Johnson. “With a robust pipeline, upcoming regulatory milestones for Rybrevant and Tremfya, the integration of Shockwave, and continued expansion of newly launched products, including Acuvue Oasys Max 1-Day contact lenses and our Varipulse platform, we have a strong foundation for near and long-term growth.”

Target Corp. (No. 5)

Q 1 2024: Target reported that total revenue declined 3.1%. That’s down to $24.5 billion in the first quarter of its fiscal 2024 ended May 4. However, online sales did increase slightly. Declines in discretionary categories were partially offset by continuing growth in the beauty category.

Read more on Target’s earnings results here.

Walmart Inc. (No. 2)

Q1 2025: Walmart grew U.S. online sales 22% for its fiscal 2025 first quarter ended April 30, 2024. Consolidated revenue grew 6.0% to $161.5 billion in Q1.

Winmark Corp. (No. 1567)

Q2 2024 earnings: Winmark Corp. recorded nearly flat growth (a 0.6% increase) year over year with $10.4 million in net income for its second fiscal quarter in 2024. Merchandise sales for the quarter fell 30.3% from the same quarter a year earlier to $925,500.

“Year-to-date growth in royalties resulted from higher overall store count and, to a lesser extent, increases in per unit performance,” said Brett D. Heffes, chair and chief executive officer at Winmark.

The company, whose resale-focused franchises include Plato’s Closet, Play It Again Sports and Music Go Round counted a total of 1,336 franchises operating at the end of the quarter.

Ecommerce earnings calendar

Here’s when other ecommerce earnings are scheduled to report this quarter:

Beyond, Inc.: July 30
Proctor and Gamble: July 30
Carvana Co.: July 31
Adidas AG: July 31
Steve Madden: July 31
Amazon.com: Aug. 1

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Albertsons Q1 digital sales outpace flat total sales growth

Kevin Williams — Fri, 26 Jul 2024 20:32:42 +0000

Grocery giant Albertsons Companies Inc. tallied $24.3 billion in net sales and other revenue in its Q1 2024 earnings on Tuesday. The total beat predictions, rising less than 1% from the same period a year earlier as digital sales increased 23%.

The Boise, Idaho-based company reported an adjusted net income of $392 million for the first quarter, which ended June 15. Stores under the Albertsons Companies Inc. umbrella include:

Safeway
Albertsons
Shaw’s
ACME
Jewel-Osco
Randalls
Vons

In total, the chain operates 2,269 retail food and drug stores with 1,725 pharmacies.

Albertsons is No. 24 in the Top 1000, Digital Commerce 360’s database ranking of North America’s leading retailers by online sales. It is classified as a Food & Beverage retailer. Digital Commerce 360 projects that Albertsons total web sales in 2024 will reach $5.52 billion.

Albertsons web sales by year

Albertsons Q1 earnings results

In a released statement, Albertsons CEO Vivek Sankara lauded the company’s performance. However, he also cautioned that there are potential impediments to earnings ahead.

“As we look ahead to the balance of fiscal 2024, we expect to see continuing headwinds related to investments in associate wages and benefits, an increasing mix of our pharmacy and digital businesses which carry lower margins, and the cycling of prior year food inflation,” Sankara said, adding that some of the turbulence will be offset by other actions the company is taking.

“We expect these headwinds to be partially offset by ongoing productivity initiatives,” Sankara said.

Albertsons Q1 earnings came just two days before the grocery agreed to pause its proposed merger with Kroger. Regulators are suing to block the $24.6 billion deal, which already led to the companies proposing a list of almost 600 stores that they would sell if the merger closes. Both companies agreed to an injunction, eliminating the need for another hearing before the case — which was filed in Colorado — proceeds to trial on Sept. 30.

Albertsons digital sales soared in Q1

The 23% growth in Albertsons online ordering business reflected ongoing investments it is making to build out capabilities.

“In the first quarter of fiscal 2024, we continued to invest in our Customers for Life strategy and the digital and omnichannel capabilities necessary to support it,” Sankaran said. “Our Customers for Life strategy is placing the customer at the center of everything we do, and we continued to drive strong year-over-year growth in loyalty members as we launched our new simplified ‘for U’ loyalty program.”

The loyalty program, rebranded recently as “for U,” offers a more streamlined experience and digital deals to reward customers.

In Albertsons’ fiscal first quarter, its growth occurred as the company expanded its network of grocery delivery partners to include Grubhub, in addition to Doordash and Instacart. Albertsons began revamping its digital strategy during the pandemic as more customers shifted their shopping online.

“Speed and convenience are becoming just as important as cost savings,” Chris Rupp, Albertsons chief customer and digital officer, told the U.S. Chamber of Commerce in 2022.

Kevin Dunn, vice president of retail and consumer packaged goods sales at Liveramp, a data collaboration platform, attributes earnings results at Albertsons to its robust customer data collection program.

“Albertsons positive quarterly earnings results are a testament to the power of first-party data,” Dunn said.

That data is used not only to identify what Albertsons customers want, but also to power its retail media network capabilities.

“Leveraging its media network, the Albertsons Media Collective, the retailer has built powerful, data-driven partnerships with its brands and suppliers that deliver the real-time insights needed to bridge the online and offline customer experience,” Dunn explained.

Other details

Albertsons explicitly highlighted risks related to the proposed merger with Kroger. Those risks include the “ability to close the transactions contemplated by the Merger Agreement, and the impact of the costs related to the Merger,” according to Albertsons. Other concerns mentioned were:

“Erosion of consumer confidence”
“Restrictions on our ability to operate”
“Challenges in retaining and motivating our associates until the closing of the Merger”
“Litigation related to the transactions contemplated by the Merger Agreement”

Additional first-quarter highlights include:

Identical sales increased 1.4%.
Loyalty members increased 15% to 41.4 million.
Net income of $241 million, or $0.41 per share.
Adjusted net income of $392 million, or $0.66 per share.
Adjusted EBITDA of $1,184 million.
Total net debt of $7.57 billion as of June 15, 2024.
Net debt ratio of 1.81.

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Journeys taps Levi’s veteran Stacy Doren as new CMO

Beth Duckett — Thu, 25 Jul 2024 18:44:05 +0000

Genesco’s Journeys Group has brought on Stacy Doren, a marketing veteran with 20-plus years at Levi Strauss & Co., as its new executive vice president and chief marketing officer (CMO).

Starting Aug. 1, Doren will lead all marketing efforts for the teen fashion footwear brand. Same-store sales have lagged at Journeys and Genesco brands widely. However, Genesco reported a modest uptick in ecommerce sales during the last quarter. Doren will report directly to Journeys Group president Andy Gray, a former Foot Locker executive who also joined the company in January.

In a LinkedIn post announcing her new role, Doren wrote, “As a mom of two teenagers, I’ve frequented Journeys for years and strongly believe in the value proposition they deliver.”

Journeys is the largest business unit of Genesco Inc., which ranks No. 169 in the Top 1000, Digital Commerce 360’s database of the largest North American online retailers. The Nashville-based company operates 1,320 retail stores, along with ecommerce sites, and it’s the parent company of other footwear brands including Schuh, Little Burgundy and Johnston & Murphy. In the Top 1000 Database, it falls under the Apparel & Accessories category.

Doren’s career prior to joining Journeys as CMO

Doren started at Levi’s in 1999 as a senior manager for website content and marketing. Over her 24-year tenure, she held various senior positions, most recently serving as vice president of Levi’s Americas Marketing, overseeing the U.S. and Canada, while also leading the Latin America region for eight years.

Doren led a 50-person team at Levi’s, handling creative development, channel marketing, and other initiatives. According to a Journeys news release, she developed strategies that increased consumer engagement, rejuvenated the women’s business and revived the brand’s appeal among youth.

“Stacy is an exceptional marketing leader with a resolute commitment to consumer-centric strategies,” Gray, Journeys president, said in a statement. “Her brand-building capabilities and strategic foresight make her the ideal partner in shaping Journeys’ future chapters.”

Before joining Journeys in January, Gray spent over two decades at Foot Locker. There, he held senior roles including global president of Foot Locker, Kids Foot Locker, Champs and Sidestep. Foot Locker ranks No. 68 in the Top 1000.

Journeys’ leadership team also includes chief operating officer Mike Sypert, who has managed daily operations for Journeys, Journeys Kidz and Little Burgundy since August. In February, Chris Santaella, a former Foot Locker executive, joined as the retailer’s executive vice president and chief merchandising officer.

Journeys Group’s importance to Genesco

Journeys represented 62% of Genesco’s net sales in fiscal 2023, according to Genesco.

For its fiscal first quarter ended May 4, Genesco reported a 5% drop in net sales to $457.6 million, down from $483.3 million a year ago.

Comparable ecommerce sales rose by 3%, accounting for 23% of retail sales, up from 21% last year.

Genesco ended the quarter with 75 fewer stores versus a year ago. The drop in first-quarter sales was attributed to the store closures and lower wholesale and in-store sales, though higher ecommerce sales helped mitigate the impact. The company closed 17 Journeys stores this quarter and is considering shutting up to 50 more by early next year.

In its quarterly earnings call, Genesco CEO Mimi Vaughn emphasized Journeys’ efforts to boost its brand presence. Those efforts applied both in-store and online. She said a visual website refresh is in the works to improve the brand’s digital experience, but she didn’t provide a launch date.

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Warehouse boom tied to ecommerce growth yields bad air quality

Mark Brohan — Wed, 24 Jul 2024 22:35:21 +0000

Ecommerce is a boom for retailers and warehouse operators, but it’s a bust for air pollution and air quality.

A new study from researchers at George Washington University in Washington, D.C., finds that people living in communities located next to large warehouses are exposed to 20% more of a traffic-related air pollutant that can lead to asthma and other life-threatening health conditions.

“Increased truck traffic to and from these recently built large warehouses means people living downwind are inhaling an increased amount of harmful nitrogen dioxide pollution,” says Gaige Kerr, an assistant research professor of environmental and occupational health at the George Washington University Milken Institute School of Public Health. “Communities of color are disproportionately affected because they often live in close proximity to warehouses, especially dense clusters of warehouses.”

Ecommerce warehouses worsen air quality

Researchers measured nitrogen dioxide levels by using a satellite instrument from the European Space Agency to zero in from space on the nearly 150,000 large warehouses located across the U.S.

Trucks and other vehicles traveling to and from these large warehouses spew out nitrogen dioxide, particulates, and other harmful pollutants, the study says.

The researchers also looked at traffic information from the Federal Highway Administration and demographic data from the U.S. Census Bureau.

A major cause of added pollution has been the boom in warehouse construction. That boom was spurred by record levels of ecommerce buying from consumers and businesses. For example, the COVID-19 pandemic fueled the explosion of the ecommerce industry and warehouses that receive and sort consumer goods. As a result, the transportation infrastructure needed to ship goods to warehouses and then on to consumers is enormous, according to the researchers. Amazon, specifically, an industry leader in ecommerce, operated 175,000 delivery vans and more than 37,000 semi-trailers in 2021.

Amazon is No. 1 in the Top 1000, Digital Commerce 360’s database of North America’s largest online retailers based on web sales. It’s also No. 3 in the Global Online Marketplaces database, which ranks the 100 largest global marketplaces by third-party gross merchandise value (GMV). Digital Commerce 360 projects Amazon’s total web sales in 2024 will reach $469.01 billion.

According to the study, although warehouses are located all over the US, 20% are concentrated in just 10 counties:

Maricopa, Arizona
Alameda, California
Los Angeles, California
Orange, California
San Bernardino, California
Miami-Dade, Florida
Cook, Illinois
Cuyahoga, Ohio
Dallas, Texas
Harris, Texas

Key findings from the study

Although the average spike of nitrogen dioxide associated with warehouses was 20%, nitrogen dioxide levels near warehouses were even larger when there was greater heavy-duty vehicle activity near these facilities.
Warehouses with more loading docks and parking spaces attract the most traffic. They are also associated with the highest nitrogen dioxide levels.
Communities with large racial and ethnic minority populations are often located near warehouses. Thus, they inhale more nitrogen dioxide and other pollutants. The proportion of Hispanic and Asian people living close to the largest clusters of warehouses is about 250% higher than the average nationwide.

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Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, Twitter, Facebook and YouTube.

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Beyond Inc. revamps Overstock.com with fresh look, expanded inventory

Beth Duckett — Tue, 23 Jul 2024 20:01:48 +0000

Beyond Inc. has given Overstock.com a fresh new look and expanded its inventory in categories like liquidation and factory direct, according to a company news release. The online-only retailer had a soft launch in March and announced its “Grand Reopening” this month, adding millions of new items to its ecommerce site.

“As it relates to the site experience, it now reflects renewed branding and an improved overall look and feel, reflects improved navigation, and offers compelling promotions,” Alexis Callahan, Beyond’s vice president of investor and public relations, shared in an email to Digital Commerce 360.

In June 2023, Overstock acquired Bed Bath & Beyond’s intellectual property for $21.5 million and later relaunched the retailer’s ecommerce platform, shutting down its own website. However, during a February earnings call, Beyond executive chairman Marcus Lemonis acknowledged that closing Overstock.com was a “fatal mistake.” Under new leadership, Beyond fast-tracked the online retailer’s launch by six months, debuting the new site in March.

Beyond Inc. web sales by year

“We believe that our company can be an online leader, helping manufacturers, retailers, distributors, and lenders solve complex inventory problems in order to generate cash and improve their own profitability while creating a frequently visited, value-centric destination for consumers,” Lemonis said in a statement.

Rebuilding Overstock

Overstock.com now features a “significant” increase in core legacy categories, including indoor and outdoor furniture, apparel and footwear, décor and jewelry. Additionally, the platform expanded its offerings to include more closeouts, liquidation items, factory direct merchandise and reverse logistics products, according to the company.

Despite starting from scratch, Overstock’s soft launch exceeded expectations, Beyond president Dave Nielsen said in a May earnings call. Nielsen added that he expects continued growth in site visits as the brand improves customer engagement and expands its email and other acquisition efforts.

Lemonis noted in the call that while Overstock and Bed Bath & Beyond can thrive independently, they also complement each other. While Bed Bath & Beyond saw some success in traditional Overstock categories such as family room furniture and large area rugs, it didn’t meet Beyond’s key performance indicators for margin contribution and acquisition costs, he noted. The company believes Overstock can better return to its historical performance in these areas.

For the fiscal first quarter ending March 31, Beyond reported a modest rise in earnings, with an increase in active customers and orders. The company plans to release its fiscal second-quarter 2024 financial results on July 29.

Zulily website launch

Overstock.com’s full relaunch comes four months after Beyond acquired ecommerce retailer Zulily’s intellectual property for $4.5 million — including its website, domain names, trademarks, customer database, social media and software. Zulily, once known for its online flash sales, shut down in December after a period of financial instability. The company was previously owned by Qurate Retail, which ranks No. 18 in the Top 1000.

Beyond now expects to relaunch Zulily’s website toward the end of the third quarter of 2024.

“Our vision for Zulily is to focus on the segment of customers who loved Zulily before, working moms who enjoy shopping for themselves and their families,” Nielsen told investors in the May earnings call. “Shopping is fun for them, and they like to browse frequently.”

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