Welcome to The Week in Retail, a weekly roundup for marketers from Quad Insights that covers the latest must-know news surrounding the retail space.
Mega retailers combat inflation with expansive summer price cuts
On the heels of Memorial Day sales, many mega retailers are aiming to attract inflation-weary shoppers with extended summer discounts and promotions, The Associated Press’ Anne D’Innocenzio reports. In recent weeks, Target, Walmart and others have rolled out substantial price cuts for the summer months, each citing customer relief as a driver for the decision, D’Innocenzio notes. While discounting is an old-hat strategy for retail, Neil Saunders of consulting and data analysis firm GlobalData tells the AP that the recent trend of slashing prices on thousands of items at a time marks “a major shift” as retailers vie for increasingly price-conscious spenders.
Previously: “Target announces plans to reduce prices on everyday 5,000 everyday items,” as we noted in last week’s edition of this column.
Dollar Tree giving new life to closed 99 Cents Only stores
Consolidation continues to reshape the retail landscape as Dollar Tree this week announced the acquisition of 170 stores from the portfolio of bankrupt discount retailer 99 Cents Only, USA Today reports. The stores are in California, Texas, Nevada and Arizona and will help Dollar Tree expand its footprint in the western U.S., the company said in a news release. Plans call for transforming the 99 Cents Only stores, which largely sold grocery items, into Dollar Tree locations with Dollar Tree merchandise. The 99 Cents Only chain had announced last month it would close all 371 of its stores, citing challenges related to inflation, changing shopper behaviors and lingering impacts from the COVID-19 pandemic.
See also: “Dollar Tree to expand cage-free eggs signage pilot following positive results,” as we noted in the Jan. 5 edition of this column.
Abercrombie & Fitch Co. posts record results, cites success of omnichannel investments
Abercrombie & Fitch Co., parent of clothing retailer Abercrombie & Fitch, gave a thumbs-up to its omnichannel strategy in a boffo first-quarter earnings report. The company posted record revenue of $1 billion for the three months ending May 4, up 22%, according to PYMNTS. The company said it also improved gross margins, which rose 12.7%. In addition to its namesake brand, Abercrombie & Fitch Co. also owns Hollister. “Both brand families [Abercrombie and Hollister] are contributing nicely to our business results while expanding their customer base through increased marketing spend and improved omnichannel customer experience,” CEO Fran Horowitz told analysts during the company’s conference call.
More from Quad: “Best practices for omnichannel marketing? Embrace data transparency, Quad experts say”
Shoppers feel the effects of Rue21’s closure
Since Rue21 filed for bankruptcy and announced the closure of all 540 of its stores in early May, shoppers are feeling the effects of the teen apparel brand closing its doors. In May 27 interviews with WALB10 News, local Albany (N.Y.) Mall shoppers shared that they were saddened by their store’s closure while diagnosing it as a symptom of the larger mall problem. “[My teenage grandkids] absolutely love Rue 21. So now, I don’t know what our go-to will be,” Sonya Black told the news outlet. “I used to see American Eagle, Aeropostale and even Sears to the right of us. It used to be a flourishing mall, and now it’s completely deserted,” Ulises Rangel added. Citing a decline in wholesale business, apparel brands including Ralph Lauren and Levi’s have recently invested in significant DTC initiatives.
Schnucks joins digital network to deliver personalized promotions
Grocery chain Schnucks Markets has joined Ibotta Performance Network (IPN), “a digital network that delivers coordinated promotions across retailer platforms, third-party publisher sites and Ibotta’s DTC properties,” Retail TouchPoints’ Adam Blair reports. In addition to bringing Schnucks customers personalized offers and rewards, the partnership will function as a research and development engine for new customer experiences, such as retail media and in-store innovations, Blair notes. Per Blair, other IPN partners include Walmart and Dollar General.
Further reading
Retail operations and expansions:
- “Walmart Debuts Larger-Format Neighborhood Market Stores in Florida and Georgia” (Retail Touch Points)
- “PayPal Hopes New AI Ad Platform Will Boost Retail Marketing” (Inc.)
- “Meijer Sets Opening Date for 1st Grocery Format Store in Indiana” (Progressive Grocer)
Retail launches and partnerships:
- “Why Macy’s is investing in underrepresented business owners” (Retail Brew)
- ICYMI: “Walmart and Capital One break up” (Payments Dive)
Retail trends:
