UIUC Investment Management Academy’s Post

Wesfarmers is merging Kmart and Target into a single Kmart Group, marking a big shift in their retail strategy. This move aims to streamline operations and focus on Kmart’s strong market presence, especially as Target’s performance has been under pressure. 🔗 Learn more: https://lnkd.in/gdYQb3QX

Interesting tactic from over the pond retailers like Walmart, Best Buy, and Target, replicating Prime day and using their own members-only sales events to build out their retail memberships. These events are reporting to drive +20% increase in membership growth and something we could see happening in the UK as UK retailers accelerate their membership schemes. All events aligning to summer sales (late June/early July) is another factor to keep an eye on – more peak planning for retail teams!

This reminds me of why retailers like Costco Wholesale have been so powerful, a tried and tested business model from Price Club to modern day. Offer specific customers (members) something they can't get elsewhere. It will be interesting to see if/when we reach loyalty saturation points!

Shares of JD.com Inc. traded down around 8 percent on the Hong Kong exchange and were losing more than 8 percent in the early morning trading on the Nasdaq after retail giant Walmart Inc. announced the sale of its entire stake in the Chinese e-commerce firm. Walmart expects the sale to help focus on its strong China operations for Walmart China and Sam's Club, and deploy capital towards other priorities. In a filing with the U.S. Securities and Exchange Commission, Walmart stated that it no longer holds any shares of JD.com, but the details were not revealed. Meanwhile, Bloomberg reported that the retail major raised about $3.6 billion by selling 144.5 million JD.com shares for $24.95 per share. #Walmart #JDcom #ecommerce #retailers #SamsClub

Aloha Friday! 🤙🏼 Here are some interesting stories from the world of retail for Friday, January 31: 🏥 Walgreens Boots Alliance will suspend its quarterly dividend to strengthen its balance sheet and reduce debt. The suspension comes amid ongoing litigation and turnaround efforts. 🚜 Tractor Supply Company has posted a Q4 net sales increase of 3.1%. Comparable store sales increased 0.6% with an average transaction size increasing by 2.3%. 👟 Deckers Brands raised its full-year outlook and reported Q3 results that topped estimates, helped by demand for Ugg boots and Hoka running shoes. But investors sent shares lower in after-hours trade. 🏬 Walmart Canada has announced it plans to invest 6.5 billion Canadian dollars (about $4.5 billion) into its store and supply chain footprint. As part of the effort, it is planning to open dozens of stores across the country. 💷 John Lewis has issued a warning that it may not meet its profit targets for the year following disappointing festive sales at both John Lewis and Waitrose. The partnership cited lower consumer confidence as a key factor. 🚚 Shares of UPS closed down 14% Thursday after the company issued weak revenue guidance for the year and said it planned to cut deliveries for Amazon, its largest customer, by more than half. 📱 Apple reported its fiscal first quarter earnings after the bell on Thursday, beating expectations on the top and bottom lines. However, Apple’s iPhone segment brought in $69.1 billion versus expectations of $71 billion. 🤖 Poshmark is unveiling Smart List AI, a new generative AI feature designed to act as a co-pilot for sellers by using AI to create listing details across any category from a single photo upload. 🎨 Sherwin-Williams stock shed early losses to trade up 1.8% Thursday, after the paint company’s fourth-quarter sales fell short of estimates while its profit beat and it offered soft guidance for 2025. 🍸 Beer giant Molson Coors has agreed to acquire an 8.5% stake in the UK's Fever-Tree Drinks, the maker of mixers like soda and tonic water. Molson paid about $88.4 million, in cash, equivalent to 654.2 pence a share. 🍺 Sports bar chain Twin Peaks starts trading Thursday on the Nasdaq using the ticker TWNP, making it the first restaurant initial public offering of the new year and a potential litmus test for others looking to go public. ☕️ Starbucks and the union representing thousands of its employees said on Thursday that they were bringing in a mediator in a push to revive contract talks, which had stalled over an impasse on wage increases. 📈 The US economy grew 2.5% over the past year, according to new Commerce Department figures released Thursday, comparing the fourth quarter in 2024 with the one from a year earlier. 💊 Walmart is making same-day pharmacy delivery available in 49 states for both new prescriptions and medication refills, with some exceptions. #retail #retailnews #economy #DailyRetailNews

***COSTCO ALERT*** As an international visitor, I’ve always been intrigued by the unique Costco shopping experience. One of my first priorities upon arriving in the US was to get a Costco membership. After a few months of exploring their facilities, marveling at the variety of products, enjoying the famous hot dog, the $5 rotisserie chicken, and the Kirkland brand, I decided to dig deeper into its origins. Here’s an interesting history lesson: 💹 Sol Price, initially an attorney, had a client who was a wholesale jeweler supplying Fedco, a store offering significant discounts to federal employees. • 💹 In 1954, with $50K in capital, Price launched FedMart, sourcing inventory from his clients. FedMart charged a $2 annual membership fee and targeted federal, state, and local government employees. 💹 FedMart’s success was swift, growing to 45 stores and over $300M in annual sales within two decades. 💹 In 1975, Price sold two-thirds of FedMart to a German retail chain, but the partnership faltered, leading to Price’s departure. FedMart eventually closed in 1982. 💹 With his son Robert, Price used their acquired knowledge to found Price Club, a warehouse-style store offering bulk goods to small businesses. 💹 Price Club expanded rapidly to 94 locations across the USA, Canada, and Mexico, achieving $6.6B in revenue and $134.1M in profit. 💹 In 1983, Jim Sinegal and Jeff Brotman, both having worked with Sol Price, opened the first Costco in Seattle, Washington. The company experienced rapid growth. 💹 In 1993, Price Club and Costco merged to form PriceCostco, but by 1997, the company rebranded as Costco. Today, Costco operates 884 warehouses worldwide (USA, Canada, Mexico, Japan), with $254B in revenue (up 7.8% YoY) and a net income of $6.3B (up 7.7% YoY). A key takeaway is that a significant portion of their profit comes from membership fees. Are you a Costco member? What do you love or dislike about your Costco experience?

www.cpgconnect.ca/news: As its competitors rapidly grow their store networks, the parent company of Sobeys is taking a “measured” approach, its CEO said. “Most of our competitors are pretty rational players, and they're making what they think are smart decisions, and we'll have to see whether some of them are too aggressive or not aggressive enough,” Michael Medline told investors Thursday (Dec. 12). “We try to put up stores that make money and have good returns and we'll continue to do that.” https://lnkd.in/gtGN8GAy www.cpgconnect.ca/news follows Consumer Goods and Retail News.  To stay current, you can create News Alerts by Category. Membership is free. #Empire #CPG #ConsumerGoods #FMCG #FastMovingConsumerGoods #Retail #News #CPGConnectNews

www.cpgconnect.ca/news: As its competitors rapidly grow their store networks, the parent company of Sobeys is taking a “measured” approach, its CEO said. “Most of our competitors are pretty rational players, and they're making what they think are smart decisions, and we'll have to see whether some of them are too aggressive or not aggressive enough,” Michael Medline told investors Thursday (Dec. 12). “We try to put up stores that make money and have good returns and we'll continue to do that.” https://lnkd.in/gcMxigMN www.cpgconnect.ca/news follows Consumer Goods and Retail News.  To stay current, you can create News Alerts by Category. Membership is free. #Empire #CPG #ConsumerGoods #FMCG #FastMovingConsumerGoods #Retail #News #CPGConnectNews

Dollar Stores Get Serious About Private Label Investments - https://lnkd.in/eRvEVAKv Stores Get Serious About Enhance Product Lines with Major Private Label Investments In recent years, dollar stores have turned their attention to expanding their confidential offerings, aiming to attract a broader customer base and increase profitability That strategy is this business comes at a time of changing consumer behavior and#Dollar Stores #marketing #Private Label Investments #Private-Label #private-label products #retailers

Retailers have historically used their purchasing power to effect positive market changes. From Home Depot's commitment to phasing out old-growth wood to Walmart's decision to stop selling BPA-containing products, retailer influence is undeniable. Now, with Cosmetri’s Retailer Lists, ensure your products meet evolving retailer requirements seamlessly. Try it for yourself - https://lnkd.in/dFQG872R #RetailerCompliance #Cosmetics #MarketChange