The retailer tapped Adolfo Rodriguez for the role of executive vice president, chief technology and information officer. Rodriguez will be responsible for the end-to-end technology vision and execution for Guitar Center’s business. Now, in hiring Rodriguez, Guitar Center hopes to deploy disruptive technologies while reimagining its customer experience. He will also report directly to Guitar Center CEO Gabe Dalporto.

His arrival on the executive team follows other high-level Guitar Center hires this year. Recently, Guitar Center brought in Michael Martin to lead retail and sales operations. It also hired Kristin Shane to head merchandising and marketing.

Guitar Center is No. 108 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest online retailers in North America. Digital Commerce 360 categorizes Guitar Center as a Toys & Hobbies retailer.

Guitar Center’s new head of technology

Adolpho Rodriguez, executive vice-president, chief technology and information officer, Guitar Center | Image credit: Guitar Center

Rodriguez has experience in niche product categories. He came to Guitar Center from Advance Auto Parts, where he helped implement internal technology innovations. Previously, he also served in leadership roles at both Citrix and IBM. In addition, he brings a personal passion for music, having co-founded a band called Mind the Gap that performs for charity events.

“I am thrilled to join Guitar Center at such a pivotal time in its history,” Rodriguez said. “As a passionate musician and advocate for leveraging technology to drive business growth, I am eager to blend my professional expertise with my personal experience.”

Dalporto praised Rodriguez’s past experiences as an asset to Guitar Center, which has over 300 stores nationwide.

“His expertise in core retail systems and processes and his passion for transforming the customer experience make him a perfect fit at Guitar Center,” Dalporto said. “We are confident that we will reach new heights under his leadership and deliver groundbreaking solutions to our customers.”

Guitar Center’s strengths

Guitar Center is a survivor in the “category killer” space, which it shares with retailers like PetSmart, Party City and others that grew through dominating niche categories.

Mike Allmond, a longtime retail veteran and co-founder and vice president of the apparel and specialty chain Lover’s Lane, said Guitar Center’s personnel moves this year are hitting all the right notes.

“Retail has had to adapt to rapid disruption from ecommerce businesses and direct-to-consumer sales,” he stated. “In our niche, it has become critical to leverage technology and find the right people to manage a growing tech stack. From my 30-plus years in retail, Guitar Center is doing the right things to remain relevant.”

Allmond underscored that Guitar Center’s in-store offerings provide the chain with certain advantages.

“The specialized customer experience helps customers select the right products, something that general merchandise retailers most likely won’t be able to do,” Allmond said. Guitar Center can also build on its core business by offering lessons, instrument rentals and other music-centric experiences.

“In a retail landscape that is seeing a lot of bankruptcies and store closures, it is survival of the fittest, and the fittest are going to be those that continue to innovate at every level,” Allmond said.

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Funko handles fulfillment for many orders from funko.com through its warehouse in Phoenix, Arizona, Smiley told Digital Commerce 360 at the Salesforce Connections 2024 conference in Chicago. But when consumers buy a “Pop! Yourself” figure — a customizable figure made to look like an individual — fulfillment goes through a third-party logistics (3PL) provider’s warehouse in Mexico. Additionally, Funko orders made via Amazon.com go through Fulfillment by Amazon (FBA).

And it doesn’t stop there. Funko is exploring more fulfillment options to prepare for holiday sales.

Funko prepares for holiday sales with fulfillment expansion

The retailer plans “to continue to lean into the Pop! Yourself” figures because they’re the retailer’s most giftable offering, Smiley told Digital Commerce 360.

“When you want to gift something to somebody, you want it to be personalized,” Smiley said.

Funko promotes its Pop! Yourself figures, which go through a third-party logistics provider for fulfillment, ahead of the holiday season.

And at the moment, Funko only ships with one carrier, UPS. But it plans to expand to ship with multiple carriers for the 2024 holiday shopping season, Smiley told Digital Commerce 360.

“That’s going to enable us to bump up our last-ship date,” he said. “Our cutoff date will be closer to the holidays, and we’ll offer expedited and things like that.”

Smiley declined to specify which additional carriers Funko will use for holiday fulfillment, but he said they are some of the largest carriers in the nation.

Funko saw “massive growth” in its direct-to-consumer sales last holiday season, Smiley stated. And he expects more growth this year. He estimates a quarter of Funko sales today are DTC.

“We were not necessarily a Q4 brand like many other retailers were because of our conventions,” Smiley explained. “Summer was always our biggest season. The holidays started to — maybe by and large because of Pop! Yourself — become a competitive time of the year compared to the conventions as well.”

Why does Funko use different fulfillment warehouses?

In the case of its Pop! Yourself figures, the main reason Funko doesn’t ship them from its Arizona factory is because the 3PL provider also handles the building component. Funko has to build each customized figure to order. On the other hand, Funko figures shipped out of the retailer’s warehouse in Arizona come assembled.

Smiley said the Funko’s Arizona warehouse is “just not set up” to handle the building in addition to the fulfillment.

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Parentheses indicate the merchant’s ranking in the Top 1000, unless otherwise stated.

This week’s ecommerce earnings takeaways

• Lululemon posted a 10.4% increase in net sales for the quarter, with digital sales accounting for 41% of revenue.
• GameStop shared earnings earlier than expected, detailing a 28.7% decrease in net sales from a year prior.

Bark, Inc. (No. 201)

Q4 2024 earnings: Bark reported a 3.6% year-over-year decrease in revenue to $121.5 million for its first fiscal quarter of 2024, which ended March 31. It also recorded $490.2 million in revenue for its 2023 fiscal year, which was down 8.4% from the previous year.

Read more about Bark’s earnings here.

Bath & Body Works, Inc. (No. 62)

Q1 2024 earnings: Bath & Body Works said it saw a 0.9% year-over-year decrease in net sales, which totaled $1.4 billion during its first fiscal quarter of 2024 ended May 4.

Gina Boswell, CEO at Bath & Body Words, shared during its June 4 conference call that “there has been and continues to be significant work required to bring the company’s technology systems to where we need them to be for a leading omnichannel retail business of our size.” Looking ahead, she expects to be able to share more about these efforts later in 2024.

“We remain focused on investing in the foundational tools and systems need to support future growth, and have been engaging with world-class partners to do so,” Boswell said. “We continue to evolve the digital experience for our customers, and we look forward to sharing big wins from these efforts later in the year.”

Big Lots, Inc. (No. 237)

Q1 2024 earnings: Big Lots reported a 10.2% decrease in net sales year over year to $1.0 billion for its first fiscal quarter of 2024, which ended May 4. The company cited a “challenging consumer environment” as it announced a $205.0 million loss for the period.

The retailer is in the middle of a turnaround effort. It cited improved online promotions and experience as priorities as it looks to change course.

“We’re continuing to enhance the online experience and showcasing extreme bargain deals through the weekly ad, big bargains and big buyout sections, heavily featured on the site,” said Bruce Thorn, president and CEO at Big Lots, during the company’s June 6 earnings call. “We remain focused on influencing her home shopping journey through enabling customers to browse more products online and now offer a coming-soon preview, in-store inventory and have started the ability to preorder for core big-ticket items in furniture and seasonal at the end of Q2.”

GameStop Corp. (No. 35)

Q1 2024 earnings: GameStop said its net sales were down 28.7% year over year to $881.8 million for its first fiscal quarter of 2024 that ended May 4. The same period included a net loss of $32.3 million, which was smaller than its loss of $50.5 million a year earlier.

The company did not hold an earnings call after announcing earnings days earlier than previously scheduled. In addition, it shared that it would sell 75 million shares, following the sale of 45 million shares announced in May. That initial sale brought in about $933.4 million, Reuters reported. GameStop returned to the news spotlight ahead of its earnings release as meme-stock influencer and online streamer Keith Gill, who goes by the name “Roaring Kitty,” began sharing his recent trading activity publicly.

Lululemon Athletica, Inc. (No. 25)

Q1 2024 earnings: Lululemon Athletica announced net sales increased 10.4% to $2.2 billion in its first fiscal quarter ended April 28.

“In the first quarter, we saw strong momentum in our international markets, demonstrating how our brand continues to resonate around the world,” said Calvin McDonald, chief executive officer at Lululemon. “Guests responded well to our product innovations across categories, and we are pleased by the progress we are making to optimize our U.S. product assortment.”

During the company’s June 5 earnings call, Meghan Frank, its chief financial officer, noted that Lululemon ecommerce sales were up significantly, contributing to the quarter’s results.

“In our digital channel, revenue increased 8% and contributed $906 million of top line or 41% of total revenue,” Frank stated.

Other recent ecommerce earnings results

Abercrombie & Fitch Co. (No. 48)

Q1 2024 earnings: Abercrombie & Fitch reported net sales increased 22% to $1.02 billion during its first fiscal quarter of 2024 ended May 4, compared with the same period a year prior.

“We saw improved traffic trends across both stores and digital channels, which helped show teen customers the changes we have made to the assortment,” said Fran Horowitz, CEO at Abercrombie & Fitch, discussing its Hollister stores during a company earnings call. The company credited about 60% of Abercrombie brands’ sales to digital channels in 2023, with approximately 30% of its Hollister brand’s sales coming through digital channels.

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.

Read more on Alibaba’s earnings here.

Amazon.com Inc. (No. 1)

Q1 2024 earnings: Amazon net sales increased 13% to $143.3 billion in its fiscal first quarter, and 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.

American Eagle Outfitters Inc. (No. 40)

Q1 2024 earnings: American Eagle Outfitters recorded $1.14 billion in net sales for its first fiscal quarter of 2024 ended May 4, up 6% from a year prior. That percentage increase set a new first-quarter record for American Eagle. While in-store revenue rose 4% for the period, digital revenue grew 12%.

Best Buy (No. 8)

Q1 2025 earnings: Best Buy’s net sales of $13.41 billion were down 0.9% year over year in its first fiscal quarter of 2025 ended May 4. In the same period, online sales dropped 6.1%.

Read more on Best Buy’s earnings results here.

Costco Wholesale Corp. (No. 6)

Q3 2024 earnings: Costco net sales grew 9.1% to $57.39 billion in its third fiscal quarter of 2024 ended May 12. During the same period, ecommerce sales grew 20.7%.

Read more on Costco ecommerce sales here.

Dick’s Sporting Goods (No. 31)

Q1 2024 earnings: Dick’s Sporting Goods said net sales were up 6.22% year over year to $3.02 billion in its first fiscal quarter of 2024 ended May 4. The company raised its full-year guidance, noting that customers were spending more on apparel, athletic gear and sneakers.

Foot Locker (No. 59)

Q1 2024 earnings: Foot Locker reported net sales dropped 2.8% to $1.87 billion from a year earlier in its first fiscal quarter of 2024 ended May 4. The company is working on an ongoing turnaround plan, which CEO Mary Dillon said included “strengthening our brand partnerships, enhancing customer engagement through digital and loyalty investments.”

The Gap Inc. (No. 20)

Q1 2024 earnings: The Gap raised its guidance for the full year, announcing a 3.4% year-over-year increase in net sales of $3.4 billion for its first fiscal quarter ended on May 4. The quarter marked the first time during CEO Richard Dickson’s current campaign to turn the company around that its Athleta, Banana Republic, Gap and Old Navy brands all posted positive comparable sales increases. Dickson took over the chief executive role in August 2023.

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.

Kohl’s Corp. (No. 23)

Q1 2024 earnings: Kohl’s net sales fell 5.3% to $3.18 billion for its first fiscal quarter ended on May 4. The retailer blamed weather and excess inventory as it posted a net loss of $27 million, surprising analysts.

Nordstrom Inc. (No. 22)

Q1 2024 earnings: Nordstrom net sales increased 5.1% year over year to $3.22 billion during the company’s first fiscal quarter of 2024 ended May 4. The retailer shrank its net loss to $39 million from $205 million a year earlier as digital sales fell 0.2% during the same period. Digital sales accounted for 34% of Nordstrom’s total sales for the quarter, the company reported. It opened nine new stores in the U.S. in the first quarter, with plans to open 18 more.

Salesforce

Q1 2025 earnings: Salesforce grew revenue 11% year over year to $9.13 billion in its first fiscal quarter of 2025 ended April 30. However, the company missed expectations, with revenue from its Professional Services and Other category down 9.4% in the quarter at $548 million.

Read more about Salesforce revenue here.

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.

Ulta Beauty (No. 39)

Q1 2024 earnings: Ulta Beauty net sales rose 3.4% year over year to hit $2.73 billion in its first fiscal quarter of 2024 ended May 4. CEO Dave Kimbell said Ulta “successfully completed the final phase of our digital store transition” during the quarter “and are on track to decommission the legacy platform in the second quarter.” In addition, following the announcement of Ulta’s expanded partnership with DoorDash, Kimbell said Ulta plans to “introduce new digital buying guides that amplify search engine optimization while providing guests with educational content, beauty tips and product recommendations.”

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.

Read more on Walmart’s earnings here.

Ecommerce earnings calendar

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

• Lovesac Co.: June 13
• Signet Jewelers Ltd.: June 13
• La-Z-Boy Inc.: June 18

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As a new hire, Martin arrives at Guitar Center as it rethinks its in-store customer experience.

Guitar Center is No. 107 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest online retailers in North America. Digital Commerce 360 categorizes Guitar Center as a Toys/Hobbies retailer.

Michael Martin’s new position at Guitar Center

Martin will report to Guitar Center CEO Gabe Dalporto, the company said.

“Guitar Center is in the middle of reimagining the magic of the in-store experience for our customers, and Michael’s extensive experience driving innovation and execution in omnichannel retail stores will accelerate that transformation,” Dalporto said. “With a deep understanding of retail, coupled with his exceptional operational acumen and agility in navigating market shifts, Michael will be an invaluable addition to our team.”

In his new capacity, Martin will be responsible for strategic initiatives across more than 300 Guitar Center stores and 16,000 employees. He joins another recent hire, former PetSmart executive Kristin Shane. She came to Guitar Center in March as executive vice president, chief merchandising and marketing officer. The company also added Zac Bogart as senior vice president of digital marketing in January.

In addition to retail operations, Guitar Center stores also offer musical instrument repairs and lessons.

Martin’s background

In his previous work, Martin served in leadership positions at Fanatics, Staples and Wayfair. Most recently, his LinkedIn profile credits list his capacity as consulting CEO for the Massachusetts-based drive-up grocery store Addie’s, which closed in 2023.

“I’m thrilled to join Guitar Center — a legendary company — in its next phase of growth,” Martin said in a released statement. “I am committed to fostering innovation and elevating operational excellence across Guitar Center’s diverse sales channels and look forward to working closely with our retail associates as we continue Guitar Center’s transformative journey to provide exceptional experiences to our customers.”

Digital Commerce 360 analysts estimated that Guitar Center ranked No. 5 among top Toys & Hobbies retailers by online sales in 2023. That assessment put Guitar Center’s 2022 ecommerce sales at $0.89 billion, just behind The Walt Disney Company ($0.98 billion). Also in the top five for that category were SD Bullion ($0.98 billion), Streetwater Sound ($1.52 billion) and GameStop ($2.13 billion).

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Why are retailers using partners for last-mile delivery?

Facilitating same-day delivery is quite costly for retailers.

“Startup costs are stratospheric, as are the ongoing costs to run the service, thereby gobbling up profitability,” research firm Forrester said in a December 2023 report.

UPS-owned Roadie interviewed 150 industry leaders at retailers that offer same-day delivery. Most of them said implementation costs were in the six figures, and operational costs grew as the delivery programs grew. 

However, they also noted clear benefits. 80% said it led to higher customer satisfaction, and 70% said offering the service increased sales. Others mentioned customer retention and acquisition, conversion, and lower inventory costs as other perks.

29% of respondents said they used a crowd-sourced delivery platform, like Instacart or DoorDash. Those leaders told Roadie that partnering with one of those vendors has two benefits.

1. It’s easier to get the program running without a minimum volume or capital.
2. It’s flexible and scalable based on demand.

These are nine of the most significant same-day, last-mile delivery partnerships since the start of 2024.

1. Hy-Vee and Instacart

Hy-Vee said it would work with Instacart on same-day delivery, the retailer announced Feb. 8. The grocery chain will use Instacart’s fulfillment-as-a-service (FaaS) capability across its ecommerce channels, including Hy-Vee.com, WholeLotta.com, HyveeDeals.com, ShopPetShip.com and the Hy-Vee app. The relationship with Instacart will allow Hy-Vee to expand its delivery capacity to meet growing demand, it said.

Hy-Vee was able to integrate Instacart’s FaaS into its existing ecommerce operation using an API, the retailer said. Ecommerce operations platform company UpShop facilitated the integration between Hy-Vee and Instacart, the fulfillment operator said.

The grocer ranks No. 182 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

2. Pet Supplies Plus and DoorDash

Pet Supplies Plus teamed up with DoorDash in February to offer same-day delivery for pet supplies from its more than 700 locations. The store’s offerings are part of DashPass, DoorDash’s membership program with $0 delivery fees on orders from certain retailers and restaurants.

“Since launching the Pets vertical in 2020, DoorDash has more than 400,000 pet products available for on-demand delivery,” said Fuad Hannon, vice president of new verticals at DoorDash. 

Pet Supplies Plus is No. 213 in the Top 1000.

3. AWG and Instacart

Instacart expanded its relationship with Associated Wholesale Grocers, Inc. (AWG) to offer same-day delivery and smart shopping carts at more locations in March.

AWG is a cooperative food wholesaler with 1,100 member companies and more than 3,500 locations. The new agreement between the businesses brought Instacart’s ecommerce technology to all AWG locations across 32 states, from the 800 that previously had access.

AWG grocers are now included on Instacart’s app, where consumers can add products to their carts, check out, and receive same-day delivery from an Instacart driver. Orders can also be scheduled up to two weeks in advance.

4. Sally Beauty and DoorDash

DoorDash expanded its relationship with Sephora and added new partnerships with MAC Cosmetics and Sally Beauty in March. Through relationships with these retailers, DoorDash said it will offer customers on-demand delivery of beauty, hair, makeup and nail products in under an hour.

“We see consumers ordering from retail categories more than ever before and trying out new categories earlier in their DoorDash journey,” said Shanna Prevé, vice president of partnerships at DoorDash, in a statement.

“As consumers have higher demand and expectations for convenience and selection, we’re thrilled to connect merchant partners, like Sally Beauty and M·A·C, with people in new ways and unlock potential additional revenue,” she added. “For consumers, we remain hyper-focused on providing unparalleled speed and service to meet their everyday needs, whether it’s the last-minute beauty essentials or the viral must-have new products.”

Sephora is part of LVMH, which ranks No. 3 in Digital Commerce 360’s Europe Database. Sally Beauty ranks No. 339 in the Top 1000. MAC is part of The Estee Lauder Cos. Inc., which ranks No. 41 in the Top 1000. 

5. Lowe’s and DoorDash and Shipt

Lowe’s and DoorDash unveiled a partnership for same-day delivery from the retailer’s 1,700 U.S. stores in April. It marked DoorDash’s first time offering delivery for the home improvement retail category.

“Our collaboration with DoorDash unlocks an opportunity for us to reach new DIY customers who are shopping directly on the DoorDash app, helping them get everything they need for spring,” said Neelima Sharma, senior vice president, digital commerce and technology.

The retailer also partnered with delivery company Shipt this spring to offer delivery from 1,200 locations. 

Lowe’s is No. 11 in the Top 1000.

6. Vitamin Shoppe and Uber Eats

The Vitamin Shoppe and Uber Technologies announced a partnership in April to make the supplement retailer the first to be available via Uber Eats nationwide.

About 700 locations of The Vitamin Shoppe and Super Supplements are available to Uber Eats consumers in the United States.

“The Vitamin Shoppe is a growth-focused business with a digital-first mindset that is continuously transforming the way we serve our customers, by reaching them where and when they want to shop,” said Muriel Gonzalez, president of The Vitamin Shoppe, in a statement. “On-demand, same-day delivery from our stores via Uber Eats provides a fast and convenient way for our customers to access their favorite health and wellness products.”

The Vitamin Shoppe Industries Inc. ranks No. 286 in the Top 1000 Database. 

7. Wakefern Food Corp. and DoorDash

Wakefern added same-day delivery to its 365 supermarket locations through DoorDash. The stores operate under the ShopRite, Price Rite Marketplace, The Fresh Grocer, Fairway Market, Gourmet Garage, and Dearborn Market banners.

“In addition to our own in-house full-service grocery fulfillment offering, DoorDash joins our digital portfolio providing consumers yet another way to shop Wakefern banners,” said Wakefern president Mike Stigers. “By joining forces with DoorDash, which offers on-demand, fast delivery of grocery staples and household essentials, we can make grocery shopping even more convenient for our shoppers.”

Wakefern ranks No. 411 in the Top 1000.

8. Kohl’s and Instacart

Kohl’s Corp. joined Instacart in May, the retailer announced. As a result, Kohl’s merchandise will be available in as little as an hour through same-day delivery on Instacart. The service is now accessible at all of Kohl’s 1,172 U.S. stores, it said.

Instacart purchases at Kohl’s will be priced the same as in stores. In addition, customers will still be able to accumulate Kohl’s Rewards, it said.

“With Kohl’s as one of the first department stores on our platform, we’re proud to continue expanding our selection beyond grocery, making everyday shopping for our customers easier for their busy lives,” said Blake Wallace, senior director of retail partnerships at Instacart. “We’re committed to offering customers a broad selection of items and ways to get exactly what they need from the retailers they know and love.” 

Kohl’s is No. 23 in the Top 1000. 

9. Uber Eats and Instacart

The two delivery companies teamed up to allow consumers to order from restaurants through the Instacart app from restaurants on Uber Eats.

“Through this partnership, Instacart customers now have access to both the best online grocery selection in the U.S. and restaurant delivery, making it even easier for them to conveniently tackle all their food needs from a single app,” said Fidji Simo, CEO and chair of Instacart. 

Instacart drivers will continue to fulfill orders from grocery stores and retailers, while Uber Eats drivers will fulfill restaurant orders made through Instacart.

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In January, eBay laid off 1,000 workers, which was about 9% of its total workforce.

“We reached a major milestone in Q1 as pre-owned and refurbished goods reached 40% of total GMV on our marketplace after consistently outpacing the sales of brand new goods since the pandemic,” said eBay CEO Jamie Iannone.

EBay ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces database. The database ranks the 100 largest such marketplaces by 2023 third-party GMV. 

eBay sales grow in Q1

Year over year, eBay revenue grew 2% to $2.56 billion in Q1. That also equals its Q4 2023 revenue, the highest quarter that year and since Q4 2021. However, it’s still about half a billion less than its peak of $3.02 billion in Q1 2021.

EBay GMV was nearly flat, growing 1% year over year to $18.6 billion. Iannone said in a May 1 earnings call with investors that eBay remains “on track for GMV growth to turn positive by Q3 or Q4 of this year.”

Motor parts and accessories were “once again” the largest contributor to eBay sales growth in Q1, Iannone said.

“Fitment is a central component of trust within the P&A category, helping customers understand exactly which of our more than 600 million live listings in this category fit their vehicle,” Iannone said. “We continue to work closely with large P&A [parts and accessories] sellers to augment their inventory using the myFitment toolkit. To date, we have enhanced eligible auto parts with approximately 5 billion pieces of incremental fitment data and we’ve continued to see a double-digit increase in conversion on these augmented listings.”

On April 30, eBay announced a multi-year partnership with the McLaren Racing Formula One team. That deal will see eBay branding featured on the cars of two drivers, Lando Norris and Oscar Piastri, during the 2024 season.

Collectibles also remained a major contributor to eBay sales in Q1, Iannone said. EBay has rolled out new features for collectibles, including:

• My collections
• Price guides
• Authentication and grading partnerships
• Revamped condition standards
• Live commerce
• Vault storage
• New shipping methods to reduce costs

EBay has launched a simplified listing flow for sports trading cards to all U.S. sellers, Iannone said. It uses proprietary technology to prefill the listing with relevant item aspects, provide simpler shipping options and offer “smarter” pricing recommendations based on the card’s value and condition, Iannone added. The rollout has led to a double-digit percentage reduction in listing time and “measurable increases in completed listings and sold items per customer,” he said without revealing more.

eBay Live shopping in beta

Iannone said eBay Live spans multiple categories, including collectibles such as comics and sports memorabilia. It enabled viewing on desktop, on which Iannone said eBay improved homepage discoverability with personalized recommendations.

EBay also introduced AI-powered tools to enhance discovery, he added. One such feature is called Explore, and it enables users to browse “a list of personalized recommendations based on implicit and explicit interest signals, such as the user’s style preferences and sizes,” Iannone said. “The Explore feed updates in real-time in response to products that users interact with, while buyers can refine their shopping journey using our visually similar search feature powered by computer vision.”

Explore is also in beta and is currently available to all U.K. eBay users. Iannone said Explore has focused on fashion so far and that eBay plans to expand the feature’s capabilities later in the year.

eBay doubles down on collectibles segment with acquisition

In April — after Q1 ended — eBay acquired sports auction house Goldin Auctions from Collectors.

“Combining Goldin with eBay enhances our respective marketplace offerings by expanding the range of inventory available to eBay customers and opening up an expansive global audience for Goldin sellers,” Iannone said. “We believe this will enable a more well-rounded collecting experience across price points and service models, complementing our acquisition of TCGPlayer and recent partnership with sports trading card company, COMC.”

The online marketplace also agreed to divest the eBay Vault to PSA. Collectors is the parent company of PSA, which offers third-party authentication and grading services in the collectibles industry.

Also in April, eBay rolled out an early version of Shop the Look, which uses generative AI to create shoppable content and fashion recommendations. It is currently live on iOS in the United States and U.K.

Ad business

In Q1, eBay first-party advertising grew 28%. Meanwhile, total ad revenue represented 2.1% of GMV.

“During the quarter, over 3 million sellers adopted a single ad product and we ended the quarter with over $950 million live promoted listings,” Iannone said. “Our standard cost per acquisition units remain the largest contributor to year-over-year ad revenue growth in Q1, followed by our cost per click (CPC) advanced product.”

eBay earnings

For its fiscal Q1 ended March 31, eBay Inc. reported:

• Gross merchandise value (GMV) grew about 1% to reach $18.6 billion.
• eBay revenue grew more than 2% to $2.56 billion.
• Total advertising revenue grew 20% to $384 million and represented 2.1% penetration of GMV.

Check back for more earnings reports. Here’s last quarter’s eBay report.

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The financial restructuring agreement will allow all 815 retail locations to remain open and Joann will also continue to employ more than 18,000 workers. Joann will exit the process as a private company, owned by the creditors who agreed to eliminate $505 million in debt, about half of what the craft retailer owed.

Joann is No. 301 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. Digital Commerce 360 categorizes Joann as a Toys & Hobbies retailer.

Joann’s bankruptcy filing

The retailer first filed for bankruptcy on March 18, citing struggles to maintain sales after consumers cut back on hobby spending.

It listed $2.44 billion in total debts and $2.26 billion in total assets in the filing.

At the time, Joann had entered into a Transaction Support Agreement (TSA) with the majority of its financial stakeholders. It received $132 million in new financing in March, and it reported plans to reduce its debt by $505 million thanks to the new funding and agreements with lenders and vendors.

The Prepackaged Joint Plan of Reorganization approved by the U.S. Bankruptcy Court for the District of Delaware closely reflected the initial deal Joann made with creditors.

“I appreciate that this degree of consensus, especially in a case with stakes this high, isn’t forged by accident, but is the result of good and hard work,” U.S. bankruptcy judge Craig Goldblatt said at a hearing on the agreement.

The craft retailer hired Alvarez & Marsal North America, LLC as restructuring advisor. Latham & Watkins LLP served as Joann’s legal advisor, it said.

What happens next for Joann after bankruptcy

“We are pleased to have reached this significant milestone less than 40 days after initiating our court-supervised process,” chief customer officer and interim co-CEO Chris DiTulio said in a written statement. “We could not have reached this point without the unwavering dedication of our Team Members, the continued support of our industry partners and landlords, and the tremendous loyalty and enthusiasm of our customers. JOANN will move forward with a strengthened financial foundation, allowing us to invest in customer experience enhancements, our best-in-class product assortments, and our more than 18,000 Team Members nationwide.”

The other co-interim CEO, financial officer Scott Sekella echoed the sentiment.

“With a strengthened balance sheet and improved liquidity, we are better positioned to work collaboratively with our vendors, business partners and landlords, and ultimately to inspire the creativity in our customers that helps them find their happy place,” he said.

Joann has not had a permanent CEO in nearly a year. Former CEO Wade Miquelon retired in May 2023. Miquelon called fiscal 2023 a “challenging year” before his exit. The retailer’s board of directors has been searching for a new CEO since then.

Despite Joann’s debt, the business is in a promising place, according to the bankruptcy filing. 96% of stores have positive cash flow. Additionally, online sales accounted for 13% of revenue in fiscal 2024, the filing said. Stores and online sales will continue to operate with no changes, Joann said.

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Parentheses indicate the merchant’s ranking in the Top 1000.

Amazon.com Inc. (No. 1)

Amazon beat expectations with earnings for its fiscal fourth quarter ended Dec. 31, 2023. Its net sales in the quarter grew 14% year over year to $170.0 billion.

Full-year sales grew 12% to $574.8 billion in 2023, up from $514.0 billion in 2022. Read more about Amazon’s earnings here.

Chewy Inc. (No. 12)

Chewy, Inc. reported that net sales grew in its Q4 and fiscal 2023 ended Jan. 28, 2024, even as pet adoptions declined.

Read more on Chewy earnings here.

Costco Wholesale Corp. (No. 6)

Costco said net sales grew 5.7% to $57.33 billion in its second fiscal quarter of 2024 ended Feb. 18. Ecommerce comparable sales grew 18.4% in the same period.

Read more on Costco ecommerce sales here.

Levi Strauss & Co. (No. 162)

Levi’s reported that online sales grew 12% in its fiscal first quarter ended Feb. 25. However, overall revenue declined 8%, leading to a net loss of $11 million.

Read more on Levi’s earnings here.

Home Depot (No. 4)

Home Depot reported that online sales increased about 2% year over year in its fiscal fourth quarter ended Jan. 28. Meanwhile, total Q4 sales decreased 2.9% year over year to $34.8 billion.

Read more about Home Depot’s earnings here.

Sportsman’s Warehouse Holdings, Inc. (No.346)

Sportsman’s Warehouse reported that net sales declined 2.3% to $370.4 million in its fiscal fourth quarter ended Feb. 3. Meanwhile, same-store sales declined 12.8% in the same period. 

“Our net sales remain pressured from a challenging macroeconomic environment and persistently high inflation weighing on our consumer discretionary spending through the holiday season,” chief financial officer Jeff White told investors.

Target Corp. (No. 5)

Target revenue grew 1.7% to $31.92 billion in its fiscal fourth quarter ended Feb. 3. Online sales declined 0.7%.

Read more on Target’s earnings here.

Walmart (No. 2)

Walmart said U.S. online sales grew 17% for its fiscal 2024 fourth quarter ended Jan. 31. Its global ecommerce sales grew 23% over the same period, while international ecommerce increased 44%. 

Read more about Walmart’s earnings here.

So what does it mean?

• Levi’s is facing challenges from declining sales and resulting layoffs, but online sales are a bright spot for growth.
• Consumers across the board remain interested in promotions as they try to stretch their discretionary income, as noted by Sportsman’s Warehouse.

Ecommerce earnings calendar

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

• Amazon.com Inc.: Feb. 1
• Best Buy Co Inc.: Feb. 29
• Costco Wholesale Corp.: March 7
• The Home Depot Inc.: Feb. 20
• Lowe’s Cos Inc.: Feb. 27
• Target Corp.: March 5
• Walmart Inc.: Feb. 20

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Shane will report directly to Guitar Center CEO Gabe Dalporto, according to a March 19 statement. She “will oversee the integration of marketing and merchandising functions to enhance end-to-end customer experience,” the statement said. Her responsibilities will include guiding:

• Product
• Promotions
• Visual merchandising
• Omnichannel experience
• Activations

“Kristin’s impressive track record of market and sales growth, coupled with her nearly 20 years of retail expertise in the specialty product market, will be instrumental in activating Guitar Center’s new strategic direction and creating a more customer-centric experience,” Dalporto said in the statement.

In February, at eTail West in Palm Springs, California, Kristin Shane announces she will soon step into a new role. | Photo credit: Digital Commerce 360

In February, Shane announced at eTail West in Palm Springs, California, that she would be stepping into a new role.

What Guitar Center is getting in its new executive VP

Most recently, Shane spent more than four and a half years at PetSmart, where she served as chief merchandising officer and senior vice president of merchandising. Before that, she had also spent more than 10.5 years at Target Corp., where her most recent position was vice president merchandise manager for the beauty and personal care business.

“Leveraging my background in transforming retail spaces and driving significant market growth, I am eager to implement forward-thinking strategies that not only drive business results but also enrich our customer journey,” Shane said in the statement. “My goal is to ensure that every interaction with Guitar Center is not just inspiring but also deeply resonates with our customers’ passion for music, setting new standards in retail excellence and customer satisfaction.”

Guitar Center is No. 107 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest online retailers in North America. Digital Commerce 360 categorizes Guitar Center as a Toys/Hobbies retailer.

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The retailer expects to exit bankruptcy as soon as late April, when it would resume functioning as a private company. It became public in 2021 following 10 years as a private company, as well as a previous period as a public company.

Joann is No. 309 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. Digital Commerce 36categorizeses Joann as a Toys & Hobbies retailer.

Joann’s bankruptcy status

Joann said it entered a Transaction Support Agreement (TSA) with the majority of its financial stakeholders as of the March 18 filing. The retailer also received $132 million in new financing. It expects to reduce its debt by $505 million thanks to the new funding and agreements with lenders and vendors.

It listed $2.44 billion in total debts and $2.26 billion in total assets in the filing.

The craft retailer hired Alvarez & Marsal North America, LLC as restructuring advisor. Latham & Watkins LLP will serve as Joann’s legal advisor, it said.

“This agreement is a significant step forward in addressing JOANN’s capital structure needs, and it will provide us with the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance the customer experience wherever they are shopping with us,” Scott Sekella, chief financial officer and co-interim CEO, said in a statement. “This includes our more than 800 stores across the United States, 95% of which are cash flow positive. We remain committed to our suppliers, partners, team members and other stakeholders, and are focused on ensuring we continue to operate as usual so we can continue to best serve our millions of customers nationwide.”

Joann’s financial situation before bankruptcy

Joann’s most recent financial report was for its third fiscal quarter of 2024 ended Oct. 28. Net sales declined 4.1% to $539.8 million in the quarter. Comparable sales also declined 4.1%, while ecommerce sales grew 11.5% year over year. Online sales made up 13.1% of total quarterly sales. 

The retailer ended Q3 with a net loss of $21.6 million, compared to a loss of $17.5 million in the year-ago period.

Joann executives noted some consumer pullback in a call with investors in December.

“We are also experiencing some basket pressure by way of fewer items per transaction and are seeing customers shopping closer to their project needs versus stocking up and adding to their stash as in years prior,” said Chris DiTullio, chief customer officer and co-interim CEO.

“The discretionary retail environment is tough,” he added.

CEO search

Joann has not had a permanent CEO in nearly a year. Former CEO Wade Miquelon retired in May 2023. Miquelon called fiscal 2023 a “challenging year” before his exit. The retailer’s board of directors has been searching for a new CEO since then, with Chris DiTullio and Scott Sekella sharing interim CEO responsibilities.

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The post Joann files for Chapter 11 bankruptcy after consumer crafting pullback appeared first on Digital Commerce 360.