Evaluating Whole Foods’ Marketing and Purchasing Strategies
Whole Foods spends less on advertising and marketing than conventional supermarkets, relying on word-of-mouth recommendations and customer testimonials.
Retail & Wholesale
Market Realist tracks the latest news on stock performance, acquisitions, and earnings in the retail and wholesale sectors.
Introducing Whole Foods: America’s Organic Food Market
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.
A Snapshot of Signet Jewelers’ Divisions and Product Offerings
Signet Jewelers operates under three divisions: the Sterling Jewelers division, the Zale division, and the UK Jewelry division.
Huge Growth Potential in the Global e-Commerce Market
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.
SWOT Analysis: Looking at Kroger’s Strengths and Weaknesses
We will do a SWOT analysis for Kroger (KR) and look at the strengths, weaknesses, opportunities, and threats for the company.
SWOT Analysis: Upcoming Opportunities for Kroger
Kroger (KR) is a well-established player in the natural foods market. The company offers over 15,000 natural and organic food items.
Kroger’s Fiscal 2015 Revenue at an All-Time High
Kroger’s (KR) revenue reached an all-time high of $108 billion in fiscal 2015, which ended January 31, 2015, up by 10.3% from fiscal 2014.
A Look at Ross Stores’ Superior Inventory Management Skills
Ross Stores’ inventory management system is supported by its strong supplier relationships and the strategic location of its buying offices.
Efficient Supply Chain: Vital to Managing a Vast Store Network
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.
An Analysis of the US Grocery Market
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.
A Look at Supermarkets: Kroger’s Primary Business Segment
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’s Store Formats and Product Offerings
Kroger operates in several store formats, offering its customers the option to shop in its stores in-person or online for delivery or pickup.
Analyzing Coty’s Level of Competition
High-end companies like Coty rely on repeat customers and mainly compete on the basis of product quality and product differentiation.
Ross Stores’ Same-Store Sales Growth: A Consistent Track Record
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.
Key Components of Ross Stores’ Sales Mix
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.
Inherent Risks and Rewards in Walmart’s E-Commerce Business
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%.
Why Has JCPenney Been Restoring Its Private Brands?
The year 2014 marked 100 years of JCPenney’s (JCP) first private brand Marathon Hats. One of the major focus points of JCPenney’s turnaround strategy was to bring back its private brands.
Breaking Down Nordstrom’s Revenue Growth
In the last fiscal year, Nordstrom’s revenue growth was 7.7%, a substantial number when compared to its peers.
Ray Dalio’s 3 Rules of Thumb and the Road Ahead for China
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.
Understanding JCPenney’s Merchandise Mix
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.
Can Lululemon Keep Seeing Traction in Same-Store Sales?
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.
Key Product Categories for the Back-to-School Season
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.
A Glance at Family Dollar’s Historical Performance
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.
What Does the ShopperTrak Retail Traffic Index Indicate?
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.
Understanding Tesla Motors’s Product Portfolio
Tesla plans to expand its product portfolio to include the Model-X, which is expected to hit the roads sometime later this year.
The Relationship between the Retail Industry and the US Economy
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.
What Is the Strategic Importance of Tesla’s Gigafactory?
By 2020, the Tesla Gigafactory will reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013.
Estée Lauder’s Growth Barriers: Weaknesses and Threats
The abundance of counterfeit goods and accessories is adversely affecting the sales of Estée Lauder’s products. This also hurts EL’s brand image.
How Are Consumer Confidence and the Retail Sector Related?
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.
Is Relative Valuation Alone Sufficient to Value Retail Companies?
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.
How Are Brick and Mortar Retail Companies Valued?
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’ Retail Pharmacy Market Share Rises in 2Q15 on Scripts Growth
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.
Major Factors Driving CVS’s Retail Pharmacy Segment Growth
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%.
Is Jet.com a Potential Threat to Amazon’s Business?
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.
Multichannel Retailing Drives Growth for Restoration Hardware
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.
Consumer Sentiment Shines on Wall Street: Upbeat in June
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.
Nordstrom’s Online Channel Fuels Sales Growth in Fiscal 2014
Nordstrom’s online channel has been very instrumental in growing sales. In fiscal 2014 ending January 31, 2015, sales of Nordstrom.com grew 23.0% to $2.0 billion.
Why Store Expansion is a Critical Driver for Lululemon Athletica
Despite having negative comps in 1H15, Lululemon’s revenue growth for its physical stores was positive at 9.7% year-over-year in fiscal 2015.
Analyzing Lululemon’s Omni-Channel and E-Commerce Differentiators
Lululemon is testing RFID (radio frequency identification) technology and plans to implement the technology, which is currently used in ~13 stores.
Why Is Online Expansion So Vital for Department Store Growth?
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.
Why Same-Day Delivery Is Imperative in E-Commerce
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%.
Alibaba Worries about Counterfeiting Once Again
Kering, a Paris-based luxury goods maker, sued Alibaba (BABA) for encouraging counterfeiting on its online platforms.
The Wal-Mart Impact on Food Price Deflation
What starts as a competitive strategy for Wal-Mart may also affect the general level of grocery price inflation in the United States.
E-Commerce Should Spark Walmart’s Fiscal 1Q16 Performance
Walmart announced it was testing unlimited shipping for $50 per year, presenting significant competition to Amazon’s Prime service.
Nordstrom Announces Plan for 6 Canadian Stores
In March, Nordstrom announced the opening of its second international location in Canada. Nordstrom plans to open six Canadian stores through 2017.
Highlights of TPG-Axon Management’s Dropped Positions in 4Q14
In 4Q14, TPG-Axon sold its stakes in Macy’s (M), Monsanto (MON), Alibaba Group Holding (BABA), and Vantiv (VNTV).
Home Depot Stock Outperforms Peer Group
Home Depot’s (HD) stock has performed well over the past five years. In fact, it’s been the best-performing stock in its peer group.
Gauging TJX Companies’ Same-Store Sales Growth
The growth in TJX Companies’ same-store sales slowed down in fiscal 2015, growing by 2.0% compared to 3.0% in fiscal 2014.
Baskin-Robbins’ Four Year Revenue Trend
As of 2014, there were about 2,500 Baskin-Robbins locations in the United States and about 5,000 locations in the international market.
Blue Ridge Capital Opens New Position in Walgreens Boots Alliance
Walgreens Boots Alliance is a firm created by the merger of Walgreens and Alliance Boots in December 2014.