“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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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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To incentivize signups, Etsy Insider will offer a variety of perks. They range from free shipping and special offers to donation boosts.

Etsy is No. 20 in the Global Online Marketplaces Database. The database is Digital Commerce 360’s ranking of the 100 largest such marketplaces by third-party gross merchandise value (GMV). Etsy’s musical instrument marketplace Reverb is No. 45 and used-clothing marketplace Depop is No. 54. Digital Commerce 360 projects that Etsy’s total GMV will reach $753.7 billion in 2024.

Etsy total GMV by year

What is the Etsy Insider paid membership program?

“In mid-September, we’ll launch a closed-beta version of Etsy Insider to select buyers in the United States,” wrote Simona Shakin, vice president of product and retention marketing at Etsy, in a company blog post on July 31.

Etsy did not specify how much membership fees for the program would be, but Shakin listed the benefits that members would receive as follows:

• Free U.S. domestic shipping on millions of items
• A birthday bonus
• Limited edition annual gift, designed by an Etsy seller
• First access to special discounts and select merchandise
• Double impact with Donate the Change

Donate the Change is an Etsy program that gives shoppers the option to round up order totals to donate to its Uplift Fund for promoting entrepreneurship.

“While Etsy Insider’s benefits deliver great value for buyers, the program comes at no cost to the Etsy seller community,” Shakin explained. “Benefits, including the free shipping, will be funded by Etsy and through the membership fee.”

Why Etsy is launching a paid membership program

Etsy CEO Josh Silverman said when addressing the company’s fiscal first-quarter earnings in 2024 that it was confronting a “challenging environment for consumer discretionary product.” That environment was reflected in a 3.5% year-over-year decline in gross merchandise sales during the quarter, which ended March 31. In addition, Etsy faces fresh competition from rivals such as Michaels, which launched its own MakerPlace marketplace in 2023.

“We’re confident Etsy Insider will make it easier and more joyful than ever for buyers to seamlessly discover pieces they will love from real people they’re proud to support,” Shakin said in her blog post.

Still, as a pure marketplace where all goods are sold by third parties — unlike hybrid marketplaces such as Amazon.com and Walmart Marketplace — Etsy lacks centralized fulfillment, making Etsy Insider an atypical program example among online marketplaces broadly, according to James Risley, research data manager and senior analyst at Digital Commerce 360.

27.8% of Top 1000 retailers have a free loyalty program, while 5.9% have a paid membership, Digital Commerce 360 analysis shows. The Top 1000 Database is Digital Commerce 360’s ranking of North America’s largest online retailers by annual web sales.

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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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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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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.

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. 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.

Read more on Walmart’s earnings here.

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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States, for example, have been collecting sales tax on ecommerce purchases by consumers and businesses for years.

Now, a growing number of states, including Colorado, Minnesota and Washington, are looking for options. Solutions include collecting a percentage of the fee consumers and businesses pay to have ecommerce packages delivered to homes or offices to pay for road repair and related projects.

How ecommerce is taxed in Colorado and Minnesota

For example, in 2022, Colorado became the first state to impose a retail delivery fee. That became one component of a 10-year, $5.4 billion transportation funding package. The retail delivery fee is expected to bring in $78 million a year. At that level, the fee represented approximately 15% of new revenues in the package.

All businesses were initially required to collect and remit a 27-cent fee on each retail delivery order by motor vehicle placed to a location in Colorado. Since being implemented, the fee has increased to 28 cents. However, Colorado also has amended the law to exempt businesses with $500,000 or less in annual sales from having to collect the fee.

Currently, two states — Colorado and Minnesota — have passed bills that collect a percentage of ecommerce delivery fees for fixing roads, bridges, and related transportation infrastructure.

Now, Washington is considering similar legislation. Washington has 57,000 miles of city and county streets. They account for 71% of the total miles in the state, according to the Washington State Department of Transportation.

Cities primarily fund their transportation systems on their own. As they do, 69% of transportation expenditures come from local sources, which face pressure due to competing local demands and structural budget deficits.

Meanwhile, the state’s share, which comes from state fuel tax receipts, is in decline. As a result, local governments are searching for new transportation revenue sources, according to a newly published report from the Washington State Joint Transportation Committee.

Why Washington is considering new legislation

A fee in Washington of 30 cents per order could generate between $45 million and $112 million in revenue in 2026, according to the report. The authors estimate that could grow to between $59 million and $160 million by 2030.

The cost to implement is estimated between $200,000 and $540,000 per year over the first several years.

So far, Washington has produced only one report. Meanwhile, no bill thus far has been introduced in the Washington state legislature.

Still, consumer and business ecommerce spending continues to increase. As it does, even more deliveries are being made. And more states including New York, Ohio, Nevada, Minnesota, Colorado, and Washington are exploring taxing delivery fees for road repair revenue.

“While neither Nevada nor Ohio has moved forward with a delivery fee, both states assessed the mechanism’s viability as a revenue mechanism including its revenue stability, efficiency, ease of administration, social equity, user equity, and transparency,” the report says.

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It’s also what United Natural Foods, Inc., a publicly traded wholesale distributor for food and grocery items, has invested in, launching its own retail media network this spring called the UNFI Media Network. It developed the platform with Swiftly, a technology company that powers retail media networks.

Who owns your data?

Third-party data is information about consumers that a retailer or advertiser acquires through an entirely separate source. On the internet, that’s often done through third-party cookies. Third-party cookies are code used on websites that can live on in web browsers across multiple site visits. They essentially track user activity and inform targeted advertisements delivered to those users. Google had planned to phase out third-party cookies, but it recently announced it will not do so.

The intuitive alternative to third-party data is first-party data. First-party data is what retailers and advertisers acquire directly and voluntarily from consumers. It can include an email address or phone number that a consumer uses to sign up for a loyalty program, or the information that a consumer uses to complete a checkout on an ecommerce order. That’s the kind of data that powers retail media networks and advertising.

Both kinds of data allow retailers and advertisers to personalize digital ads based on consumers’ shopping behaviors.

“One of the things that we thought was so important about Swiftly versus other retail media platforms out there is that the retailer retains 100% control of the information and data of that shopper, of that loyalty subscriber,” Louis Martin, UNFI president of wholesale, told Digital Commerce 360. “They don’t have to give that away.”

What is an example of retail media advertising?

Sean Turner, cofounder and chief technology officer at Swiftly, showed Digital Commerce 360 examples of what retail media advertising can look like. Sharing his screen on a web-based call, Turner showed three kinds of personalized ads the UNFI Media Network can display using Swiftly technology.

1. Personalized pricing promotions

In the example above, the consumer has shopped at a Hen House location. The prices in the promotion are specific to the Hen House location where that consumer typically shops. Swiftly operates in the first-party cookie list identity space, Turner said.

“So we’re not cookie-ing users to try to track and target users,” Turner told Digital Commerce 360. “I’m actually getting explicit opt-in identities with a first-party login with the user’s email address, phone number into these retailer apps. And when we go and we target users, we’re actually able to target them using a data clean room, target these same shoppers off-platform in a privacy-compliant and cookie-less way.”

A data clean room “leverages the hash of your email address, so you’re not sharing any of the raw data, and it couldn’t be used to reverse-engineer-your email address,” he explained. It matches two people “without ever having to exchange any personally identifiable information,” he added.

He compared the process to a digital version of circular print ads. A local grocery store can send printed coupons and pricing — often on newsprint paper — to consumers and potential consumers near it. But because many shoppers are more inclined to check prices on their phones and computers than go through traditionally mailed circulars, companies like UNFI and Swiftly use retail media advertising capabilities to reach potential customers.

“If I just show you an ad and you’re out on the internet and it just says, well, hey, apples are $0.98 a pound, I don’t know where to go,” Turner said. “I don’t know where to buy it. I’m gonna probably just ignore that ad ’cause it’s not gonna register with me. But if it’s the retailer that you go to every week that’s branded that ad and it’s like, hey, these are the deals at that retailer, well, guess what? We’re seeing very, very high average return on ad spend for these ads.”

2. Product-based promotions

Another Swiftly-powered retail media ad highlights a specific product, as opposed to a pricing promotion.

Turner also showed Digital Commerce 360 a different use case for personalized retail media advertising. In the image above, the retail media ad shows Alexia-brand onion rings. Clicking on the ad takes users to a recipe page featuring the product.

Clicking through the Alexia onion ring ad takes online shoppers to a page that promotes a recipe featuring the product, as well as what other ingredients a shopper should purchase to make the recipe as shown.

“I’ve got all the products featured right below that, so it makes it super easy for me to add these to my shopping list or to add it to an ecommerce cart and actually go and buy the product,” Turned said. “You’ve got a pretty good, complete story there.”

3. In-app mobile advertising

Swiftly powers the retail media technology for St. Louis-based grocery retailer Dierbergs’ mobile app. Upon opening the app, a user might see an ad to make s’mores.

An ad on the Swiftly-powered Dierbergs mobile app calls users to make s’mores.

When a user clicks the ad, she is taken to a list of products that an advertiser or advertisers promote to complete the recipe in their call to action. In this case, those would be Hershey’s, Kraft and Mondelez.

The Dierbergs app shows which products to buy to make s’mores, based on the companies advertising.

The app then displays the products with pricing based on the location where the user shops. Additionally, it shows which aisles a user can go to in the store to find the products. Both of those details update automatically, as the retailer’s app is linked to its point-of-sale system.

The product detail page shows an image, pricing and the duration of the promotion. It also shows where to find the product in the user’s preferred store location.

The user can add the product to an ecommerce cart or to a list for physical shopping by clicking the plus symbol in green on the product detail page.

Dierbergs app users can add products to their shopping lists or digital carts.

The app sorts the products that consumers add to their lists to display by aisle, making in-store shopping more efficient.

Impact on regional and independents retailers

Retail media advertising is a critical capability for smaller retailers, Martin and Turner both told Digital Commerce 360. Any retailer working with UNFI or brand that sells to those retailers can participate in the UNFI Media Network, Martin said.

That includes some of the largest consumer packaged goods companies (CPGs), he said. Those CPGs typically come in with a checklist of expectations. That’s because they have the resources to understand what goes into advertising at that scale, he added.

“The flip side is we also have a universe of suppliers who don’t have that infrastructure,” Martin said. “They are small, natural organic suppliers. In many cases, they may be all the way down to still doing stuff in the garage of their home to maybe having one or two production facilities and able to supply to just a few.

“Well, they’re not the ones that can go to Walmart and get on the media platform because one, if Walmart turns it on, they’re not going to have the scale to keep up with it. But two, they don’t have the administrative infrastructure to engage. And so we’ve tried to make that very easy for that type of supplier by you can just simply go on our website and with a few clicks, sign up, put your brand on it.”

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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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The motion specifically calls for approving and authorizing its debtors to close stores, approve procedures for store-closing sales, and approve “modifications to certain customer programs.”

Those programs include the debtors’ — Conn’s — return policy and acceptance of gift certificates, the filing said.

Conn’s announced June 26 that it received a delinquency notification from Nasdaq regarding its failure to file Form 10-Q for the results from its first fiscal quarter of 2024, which ended April 30. Amid filing delays, the furniture, appliances and electronics retailer, which operates Conn’s HomePlus stores, was seeking refinancing and considering bankruptcy, Bloomberg reported July 1.

Conn’s Inc. web sales by year

Prior to the filing, Conn’s had been growing its online sales for the past five years. For its fiscal year 2024, which ended Jan. 31, its consolidated revenue declined 7.8% year over year to $1.2 billion. The company attributed that drop to a 9.1% decline in total sales and a 3.6% reduction in finance charges and other revenues.

Conn’s bankruptcy

Conn’s continues to operate and manage its properties during the bankruptcy proceedings. The company currently has about 3,800 full-time and 150 part-time employees, according to the filing. It operates 553 retail stores and 22 distribution centers across 15 states, the filing detailed.

Among the pending authorizations requested in the filing, the Conn’s bankruptcy would include “the sale or disposition of the Store Closing Assets free and clear of all liens, clams, and encumbrances.”

Conn’s Inc. is No. 568 in the Top 1000 Database. The Top 1000 ranks North America’s largest online retailers by annual web sales. Within the database, Conn’s falls under the Consumer Electronics category. It also sells furniture and mattresses, home appliances, home office products, accessories, and “seasonal items from leading global brands,” the filing said.

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