Retail & Wholesale

With 433 stores across the US, Canada, and the UK as of September 2015, Whole Foods has long been considered a synonym for organic and healthy food.

Signet Jewelers operates under three divisions: the Sterling Jewelers division, the Zale division, and the UK Jewelry division.

The global e-commerce market is expected to grow at a CAGR (compound annual growth rate) of 17 from $1.3 trillion in 2014 to $2.5 trillion by the end of 2018.

We will do a SWOT analysis for Kroger (KR) and look at the strengths, weaknesses, opportunities, and threats for the company.

Kroger (KR) is a well-established player in the natural foods market. The company offers over 15,000 natural and organic food items.

Efficient supply chain management is vital to a retailers’ day-to-day operations. A good distribution network optimizes product freshness, reduces waste, and lowers costs.

In 2013, grocery stores accounted for 90% of the country’s food and beverage store sales, while supermarkets accounted for 95% of the total grocery store sales.

The Kroger Co. (KR) is the largest supermarket chain in the US by revenue, operating 2,625 supermarkets at the end of fiscal 2015, which ended January 31, 2015.

Kroger operates in several store formats, offering its customers the option to shop in its stores in-person or online for delivery or pickup.

High-end companies like Coty rely on repeat customers and mainly compete on the basis of product quality and product differentiation.

2Q15 marked the 26th consecutive quarter of positive same-store sales growth for Ross Stores. Its last fall in same-store sales growth was in the 4Q08.

In fiscal 2014, women’s apparel accounted for 29% of Ross Stores’ sales of $11 billion. Home accents is also a key category at 24% of total sales.

Walmart’s (WMT) e-commerce business is slated to grow the fastest of all its channels, at 20%–30% per annum from fiscal 2016 to fiscal 2019. E-commerce sales were $12.2 billion in fiscal 2015, a growth rate of 22%.

Chinese policymakers should try to implement Ray Dalio’s three rules of thumb as closely as possible to get the country’s economic growth back on track.

JCPenney (JCP) sells merchandise and provides certain services to consumers through its department stores. The company also sells its products through its website at jcpenney.com.

Lululemon’s same-store sales performance was healthy in 2Q16. There’s been a reversal in the negative trend that dogged the retailer for much of last year, particularly in its brick-and-mortar channel.

Let’s take a look at some product categories that benefit from the back-to-school season. They include clothing and accessories, electronics or computer, shoes, and school supplies.

Over the last five years, Family Dollar was able to generate a five-year CAGR revenue of 7.2%. That looks decent when you look at it alone. But let’s compare it to its peers.

Retail traffic dipped in July 2015 after increasing in June 2015. The July numbers came in 17% below what was recorded by ShopperTrak in June.

Tesla plans to expand its product portfolio to include the Model-X, which is expected to hit the roads sometime later this year.

When we compare the S&P 500 (SPX) with the SPDR S&P Retail ETF (XRT), the retail ETF has beaten the broad market index on a trailing one-year basis.

Consumer confidence is one of the major factors that affect consumer spending. As a result, the retail sector has had a direct relationship with this metric.

When we talk about retail valuations, it is important not to generalize that all the companies in the SPDR S&P Retail ETF can be valued using the PCF or the PS multiple.

Brick and mortar retail companies have high inventory levels and are very capital-intensive companies that require a significant amount of working capital and capital expenditure.

CVS Health’s Retail Pharmacy segment reported sales of $17.2 billion in 2Q15, an increase of 2.2% over 2Q14. CVS boosted its share of the retail pharmacy market to 21.6% in 1Q15, from 21% in 2Q14.

CVS Health (CVS) expects Retail Pharmacy sales growth between 0.5% and 2% year-over-year in 2Q15. Total same-store sales are expected to be in the range of -1.25% to 0.25%.

Amazon (AMZN) has a new competitor in town—Jet.com. It opened to the public early last week. The startup was founded by Marc Lore.

Restoration Hardware, the luxury furniture retailer, is one of the most successful adapters of omnichannel retailing in the industry. It uses its stores as brand showrooms.

In the US, consumer sentiment rose in June. The Consumer Discretionary Select Sector SPDR ETF (XLY) has gained about 1.22% over the past month.

Lululemon is testing RFID (radio frequency identification) technology and plans to implement the technology, which is currently used in ~13 stores.

US online sales increased to 7.0% in 1Q15 from 4.2% in 1Q10. More consumers are preferring to shop online, which makes online expansion vital for department stores.

The US same-day delivery market could grow from $0.10 billion in 2014 to $4.03 billion in 2018 at a CAGR (compound annual growth rate) of 150%.

Kering, a Paris-based luxury goods maker, sued Alibaba (BABA) for encouraging counterfeiting on its online platforms.

What starts as a competitive strategy for Wal-Mart may also affect the general level of grocery price inflation in the United States.

Walmart announced it was testing unlimited shipping for $50 per year, presenting significant competition to Amazon’s Prime service.

In March, Nordstrom announced the opening of its second international location in Canada. Nordstrom plans to open six Canadian stores through 2017.

In 4Q14, TPG-Axon sold its stakes in Macy’s (M), Monsanto (MON), Alibaba Group Holding (BABA), and Vantiv (VNTV).

As of 2014, there were about 2,500 Baskin-Robbins locations in the United States and about 5,000 locations in the international market.

Walgreens Boots Alliance is a firm created by the merger of Walgreens and Alliance Boots in December 2014.

Home Depot’s (HD) supply chain is getting more productive, resulting in better gross margins. Each store stocks about 30,000 to 40,000 different products.