E-COMM

We'll Do it Live

Once upon a time, QVC was the place to go for live shopping programming. A slew of companies is now entering the fray, including Swedish fintech firm Klarna, which will host its first-ever livestream shopping event in the US next month in a partnership with Cosmopolitan.

• Klarna held its first virtual shopping event in August, but not via livestream. That experiment drove 3x higher traffic to its app, compared to the average weekend in 2020. 
• It also piloted live programming last November during six hour-long segments for European shoppers that drew more than 100,000 viewers.  

This time around: Retailers including Macy’s, Adidas, Saks Off 5th, and Bluemercury will offer exclusive deals during the 48-hour virtual event, dubbed “Hauliday,” starting March 1. Klarna, which partners with 200,000+ retailers including Peloton and Sephora, provides customers interest-free payment plans on purchases.  

Viewers will watch through retail streaming service ShopShops. But Klarna is looking to create or purchase its own platform this year, which would be available through its app. 

Race to the top

“The ambition on my end is to create an ultra-modern QVC...without all the cheesy sales tactics and salespeople,” David Sandstrom, Klarna’s CMO, told Forbes. That’s not exactly a unique ambition. 

A crowding space: On Tuesday, livestream commerce platform Talkshoplive announced it raised $3 million in seed funding to beef up its offering. In December, TikTok piloted its first shoppable livestream with Walmart. Instagram and Amazon have been tinkering with livestreaming since last year and 2019, respectively—and QVC debuted on YouTube TV last month with 3+ million subscribers. 

Zoom out: Many platforms—and brands—think there’s something to this trend. But what about consumers? Andrew Lipsman, principal analyst at eMarketer, told Retail Brew livestreaming may not become a mainstream shopping behavior in the US though. But unlike QVC and HSN, livestreams targets Gen Z and millennial customers.  

Lipsman did say that “brands in lifestyle categories should generally be looking to experiment with the medium, and it has the potential to be an important channel for new product launches.”

SUSTAINABILITY

Word is Bond

H&M has issued a $604 million bond offering that has attracted $4.6 billion in orders. Hold up...bonds? This isn’t CNBC.

Why we’re talking about it: These are sustainability-linked bonds (SLBs), which require H&M to use more recycled materials and reduce greenhouse gas emissions—and pay more interest if those goals aren’t met. 

Bonding time: When a bond is issued, investors loan a company money for a specific period of time while receiving interest payments. In this case, demand from investors was so high that H&M was able to cut the interest rate in half. 

The SLB market is small, but becoming increasingly popular among companies and investors looking to meet environmental goals. 

• And H&M isn’t the first retailer to get involved. Last year, Chanel issued its first SLB offering at a ~$699 million price tag.  

Big picture: Investors like Helena Lindahl, a portfolio manager with Storebrand Asset Management who purchased the H&M bonds, believe SLBs can help curtail environmental harms. “If more retailers followed this route there will be a completely new industry for recycling clothes on a scale that is pretty far from where we are now,” she told Bloomberg. 

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Listrak has a solution for that too: Project Launchpad. It gives retailers and brands the strategic tips, tricks, and tools they need to achieve and exceed their revenue goals this year. 

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EARNINGS

Just Meeting Expectations

E-commerce and retail heavy hitters Shopify and Walmart enjoyed a record-breaking 2020, but Q4 earnings may foreshadow a less than remarkable 2021. 

Online only: Shopify reported $978 million in Q4 sales—a 94% year over year (YoY) increase. The Covid-19 vaccine rollout, however, will likely prompt many shoppers to return to brick and mortar stores. 

• Shopify CFO Amy Shapero said it expects to continue to grow in 2021, but at a slower pace. 
• The company wants to boost investments in its Shop App and Shopify Fulfillment Network, and expand internationally.   

Omnichannel options: Walmart missed quarterly earnings expectations, but still hit record earnings, bringing in ~$152 billion in revenue—a 7.3% YoY increase. 

• US e-commerce and same-store sales grew by 69% and 8.6%, respectively. 
• Walmart said it will raise wages for 425,000 workers—more than a quarter of its workforce—to at least $13/hour. 
• CEO Doug McMillon told investors the company wants to bolster automation to increase capacity for curbside pickup. 

Looking ahead...It’s a foregone conclusion that e-commerce will continue to be a driving force for retailers—the question is to what extent. Shopify's strategy in 2021 will be to build buyer loyalty and retention, according to its earnings call, while Walmart falls back on fortifying its brick and mortar operations.

WHAT ELSE IS BREWING

• McDonald’s will boost racial and gender diversity among its senior leadership. 
• Mall owner Westfield is leaving the US and unloading its assets.
• Michaels’s new Covid strategy is to ditch the general craft market and target DIYers. 
• Kroger is closing two more locations due to hazard pay laws, this time in Seattle. 
• Hermes’s Q4 sales soared as Asian and European consumers continued to buy luxury brands. 

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SWAPPING SKUS

Supermarkets are chasing health-conscious consumers who have the time (and funds) to carefully curate their eating habits. Come take a pantry tour through the blossoming health food industry.  

• High-end emporium Erewhon has taken off in Los Angeles, with the help of celebrities and influencers. (The New York Times) 
• Stores around the country are experimenting with more organic options, as demos invested in wellness grow. (Forbes)

FRIEND OR FAUX?

You know the drill. Three of the stories below are true; one is made up. Can you spot the fake? 

1. Applebee’s has launched a new virtual kitchen concept selling Cheetos-flavored wings. 
2. Stella Artois and Palace have dropped a new clothing line collab.  
3. Another MyPillow competitor enters the market, this time from a disgruntled former Trump administration official.
4. IHOP had to cancel its National Pancake Day promotion due to the pandemic. 

Keep reading for the answer.

ICYMI

Catch up on the Retail Brew stories you may have missed.

• Jet.com Cofounder Nate Faust Launches Olive, a Delivery Consolidation Platform
• Big Box Retailers Prep Inventory, Bopis Services for the First Covid Valentine’s Day
• Adidas Plans to Divest from Reebok After 15+ Years

FRIEND OR FAUX? ANSWER

3. No, there’s no new MyPillow competitor...yet.