EARNINGS

Strong starts

Walmart’s a winner once again. 

The company’s Q1 earnings blew past analysts’ expectations: its US e-commerce sales increased 37% YoY, same-store sales saw a 6% bump, and in-store traffic rose for the first time in a year in April. 

• Total revenue hit $138.3 billion, up 2.7% from last year.  
• Walmart also touted a gain in US grocery market share, citing Nielsen data. 

What’s working: “The omni strategy continues to resonate,” CEO Doug McMillon said in an earnings call Tuesday—roughly 3,700 stores now offer order pickup, and ~3,000 provide same-day grocery delivery. Trip consolidation, he noted, “led to nearly 10% increase in average basket size, with 3% fewer transactions.” 

• Among the items people are picking up now that masks are coming off: teeth whitener. 

What’s worrying: International markets, like India, Canada, Chile, and South Africa, where the pandemic persists, are struggling. Plus, competition ranging from Amazon to Instacart is hot on Walmart’s heels.   

The whole package

Walmart execs made it clear they’re going to lean into their successes. McMillon acknowledged that stores are under stress from the volume of pickup and delivery orders, which is why investments in automation and fulfillment centers are underway.  

• For example, Walmart is converting one of its Dallas-area Supercenters into a dark store. 

On that note, Walmart+ seems to be on the back burner. “We don't think that Walmart+ should be the primary focus at the moment for us with all these other opportunities,” McMillon said. 

Zoom out: Walmart’s competitors are seeing gains too. The Home Depot’s sales spiked 32.7% YoY, while Macy’s digital sales grew 34% YoY, and 32% compared to 2019. Target’s Q1 was also impressive, with comparable store sales growing 22.9% and digital comp sales up 50%. — KM

E-COMM

Forget 'summer Fridays'

To conquer the ~$11 billion US livestreaming market this summer, Facebook’s sacrificing the seasonal 1pm signoff. From May 21 through July 16, Facebook will host weekly “Live Shopping Fridays” with select brands. 

Streaming schedule: Each week, hosting duties will rotate between eight beauty, fashion, and wellness companies—the categories where Facebook Shops is already seeing engagement, Yulie Kwon Kim, head of product at Facebook Commerce, told Retail Brew. 

• Participating companies will go live in 30-minute segments hosted on their brand pages.
• During each broadcast, shoppers can directly purchase featured items and ask questions while the video plays. 

Brands have full creative control over their shopping programming, Kwon Kim said. Some are enlisting their founders to take the mic (Alleyoop) while others are leaning on stylists and influencers (Abercrombie and Sephora). 

Why now? Livestream FOMO. Retailers have taken notice of rivals testing live shopping, Kwon Kim told us, and want to better engage their existing Facebook audiences. 

QVC’s shadow: Between social media firms and livestream-first platforms, Facebook faces ample streaming competition. But Kwon Kim believes Facebook’s got an advantage: It already has organic and paid livestream options, in addition to storefronts for each brand. That’s a step up from just “a video where people are sharing and recommending products.” (Ahem, TikTok). — HL 

SPONSORED BY LISTRAK

70 Billion Is One of the Larger Numbers

It also happens to be the number of messages Listrak analyzed to compile its 2021 Ecommerce Email Benchmark Report. Sev-en-ty BILLION.

Whew, let’s back up for a second. Listrak is the cutting-edge integrated marketing platform built specifically to drive results for retailers—in other words, they know a thing or two when it comes to increasing engagement, revenue, and loyalty at every point of interaction. 

So what’s in this report? Think benchmark results for 70,000,000,000 emails sent by 1,000+ retailers and brands across 11 different types of email campaigns in 2020. 

Listrak didn’t just hoover up the data on email campaign metrics, either; they broke them down into key findings, such as:

• Increased send volumes don’t degrade engagement rates
• Personalized product recommendations increase conversions 
• A single integrated platform is crucial

Want more insights based on a rather large number of marketing emails? Get Listrak’s 2021 Ecommerce Email Benchmark Report here. 

APPAREL

One aesthetic fits all

For its next private label act, Nordstrom is making gendered clothing labels disappear. 

Nordstrom joined forces with apparel brand Wildfang to sell a gender fluid version of Nordstrom’s teen private label, BP. 

• BP + Wildfang will include shirts, overalls, and blazers in sizes up to 4X, sold across 23 US and Canada stores and online.  
• Nordstrom store associates are receiving special training tied to the Wildfang rollout, covering topics like gender-nonconforming styling. 

The goal? Acquiring Gen Z customers, who are known to experiment with different categories of clothing, Wildfang CEO Emma Mcilroy told WWD.

“Customers have told us they want to shop for what feels good and don’t want to feel bound by a certain section of the store or the site,” Nordstrom Brand PR Manager Meliz Andiroglu told Retail Brew. Nordstrom shoppers aren’t alone: On fashion platform Lyst, searches for “genderless fashion” rose 78% in Q1 2021. 

Rising tide: Nordstrom is the latest retailer to join a growing group that’s exploring gender neutral merchandising. PacSun started selling unisex clothes last September, while Adidas opened a London concept store. 

Looking ahead…Nordstrom and Wildfang only plan to collab on four drops for now, but the brands could extend the contract next year based on sales. Andiroglu confirmed to Retail Brew that additional gender fluid collections and store experiences are also in the pipeline. — HL 

SPONSORED BY OPTORO

If you want customers to return, then you better have good returns. It’s no secret that customers are looking for high levels of choice and convenience in their shopping experience these days. The same applies to your brand’s return policy. By enhancing your returns experience, you’re not just building brand loyalists; you’re also growing your revenue. Read Optoro’s data report here.

WHAT ELSE IS BREWING

• Target said shoppers are starting to spend more time browsing in stores.
• Macy’s wants to acquire new customers by expanding into categories like pet care and gourmet food. 
• Google will partner with Shopify to integrate its 1.7+ million merchants into search (and more).
• Boohoo will link executives’ bonuses to meeting sustainability goals.

COMMUNITY

On Wednesdays, we wear pink spotlight Retail Brew's readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Anu Jain ditched her management consulting job to join her parents’ jewelry business. There, she got the idea for her jewelry try-on startup, Tahj. We’ll let her tell you the rest.

What’s the pain point your startup solves? I started Tahj to help bridge the gap of wanting to shop online but needing to touch and feel jewelry before buying. We provide replica jewelry shipped directly to customers with virtual expert assistance.

Something we can’t guess about your role from LinkedIn: It's a small team right now, so I take our own marketing pictures, often modeling with my own hands. This gives me the perfect excuse to get regular manicures!

Favorite project you’ve worked on: Making customizable replica pieces for our jewelry that look identical to the real gold and diamond ones. It's been a fun, creative time working with manufacturers overseas.

One emerging trend you’re watching: Despite Covid forcing people to isolate, companies are finding new ways to enable retail therapy through a more enjoyable online experience. Since the luxury market has previously relied more heavily on in-store sales, transitioning online allows smaller, regional businesses room to grow.

SWAPPING SKUS

Today’s top retail longreads. 

Back to school: Companies like Levi’s are training retail workers to become data scientists and engineers. (WSJ)

A new fit: Valentino CEO Jacopo Venturini wants the fashion house to focus on its main line and go fur-free. (Business of Fashion)

Going digital: Despite initial concerns, some wholesalers are experimenting with online marketplaces. (Modern Retail)

ICYMI

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

• Digitally native food and beverage brands explore restaurant partnerships
• April retail sales fell flat—but not to worry
• General Mills to buy Tyson’s pet treat biz