Shifting Digital Preferences; Online Grocery Forecasts; Kroger + Instacart Partnership
Throughout the pandemic, consumers’ preferences for purchasing groceries in-store vs. online have ebbed and flowed. In our most recent round of work, we found yet another reversion away from stores with 35% of consumers saying they did the majority of their grocery shopping online. This is a step up compared…
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Amazon Advertising and Walmart Connect Revenue; Shipt Partners with CitrusAd
Amazon’s “other” segment which is made up of predominately advertising revenue grew 87.5% Y/Y in 2Q21 vs. 76.8% in 1Q21. The increase in revenue growth was driven largely by continued acceleration in the ads business. Amazon continues to innovate in the media business, launching over 40 new features and self-service…
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eCommerce Brand Implications: Macro, Consumer, and Retail
Today’s macroeconomic environment is causing significant change throughout retail. The COVID-19 pandemic has caused labor, transportation, and raw material shortages, ultimately resulting in short supply and delayed deliveries to retail customers. Source: CRC Macroeconomic Webinar, 07/21/2021, n = 305 Consumer Factors: Supply shortages have led consumers anywhere and everywhere to…
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eCommerce Highlights from Retailers’ 2Q21 Results
Shopify was the clear winner this quarter with 40% growth on top of 118% in 2020, driven by sustained strength in GMV and contributions from their POS offering and social commerce partnerships. Management noted that omnichannel opportunities will continue to remain a top priority, such as retail POS, social partnerships,…
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Amazon Supersedes Walmart; Growth Forecasts for 2021
Earlier this week Walmart reported their 2Q FY2022 earnings, bringing their total sales for the last year (ending in July) to $566 billion. Comparatively, Amazon made history this quarter by boasting an estimated $610B in total sales in the same time period, surpassing Walmart as the largest retailer in the…
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Amazon Updates: Volatile POs; Same-Day Delivery Expands; Price Increases Likely
Many brands saw extremely light purchase orders (POs) from Amazon in May, with the eTailer pointing to tight fulfillment center space ahead of Prime Day. However, our latest supplier benchmark suggests a net 12% of Food & Consumables brands and net 23% of General Merchandise brands are still seeing lighter…
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Mask Mandates Re-instated; Amazon 2Q Recap; Supply Chain Optimization
With the COVID-19 Delta variant on the rise, last week the CDC recommended that all individuals should wear masks in public indoor areas, regardless of vaccination status. In response to the CDC’s announcement, big-name retailers have started to re-instate their mask-mandates including Target, Walmart, Kroger, Home Depot, Kohl’s, Publix, and…
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eCommerce Supply Chain – Capability Investments; Grocery Delivery; Fulfillment Evolution
Only 26% of brands report bringing a "strategic approach" to eCommerce operational investments. When it comes to brands’ eCommerce supply chain, 74% of companies report approaching operational capability investments with a "tactical mindset." This would require significant business volume to validate investments, addressing issues in a reactionary manner, and…
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Prime Day Membership Bump, Hybrid Selling Model, & Post-Pandemic Grocery Shopping
Our research suggests an uptick in interest among brands to pursue the hybrid model on Amazon. This means brands would maintain their 1P retail relationship with Amazon’s retail team while also offering assortment on the 3P marketplace, either via the brand itself or through a partnership with another 3P…
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