New & Notable in Retail: August Update
It’s August, which means back-to-school season is here for many of us. For others, it’s just around the bend. As we head into the (hopefully) busy fall and winter months, it begs the question: what are leading retailers doing to prepare and position themselves for success?
We’ve rounded up news from top companies to glean insights from their example. Here’s the rundown on the latest retail behaviors and takeaways.
Target
We’re kicking things off this month with good news from Target, which reported increased foot traffic and higher overall customer spending — led by a staggering 50% increase in luggage sales, as well as growth in other “going out” categories like beauty products, sunscreen, and even toys (think birthday parties). However, there were sharp declines in products associated with the pandemic-mandated “staying in” lifestyles. These included kitchen appliances, TVs, and outdoor furniture.
Speaking of the pandemic, Target also shared insights on how it weathered the storm, including re-imagining customer care and adapting to shifting consumer priorities.
Other July news included Target’s plans to increase its online shopping presence by keeping up with the speedier delivery times of rivals like Amazon and Walmart. Some strategies include the addition of more sortation hubs and using large-capacity delivery vehicles.
Target also announced that Tabitha Brown for Target would debut its second collection featuring bold and bright home goods, gifts, furniture, and more.
Brand Takeaways
Target’s July underscores moving away from the pandemic and toward our new normal. The company's commitment to faster shipping reinforces the importance of responding to this consumer priority.
The continuation of the Tabitha Brown for Target collection highlights the increasing emphasis on joyful surroundings—even in small things, such as pops of color and statement pieces.
Kohl’s
Kohl’s continued its image makeover by getting in on the 80s and 90s nostalgia trend with announcing its new exclusive partnership with iconic Levi’s® SilverTab™.
On the not-so-bright side, Kohl’s stock was downgraded by multiple analysts due in part to the impact of inflation on consumer demand. According to Bank of America analyst Lorraine Hutchinson, the move reflects a generally “negative view on the department store industry.”
Amidst the downgrade, the brand was preparing for back-to-school season with the launch of a new in-store experience, Discover @ Kohl’s, which features a designated back-to-school area highlighting featured brands and products with a give-back element.
Brand Takeaways
As evidenced by Kohl’s downgrading, inflation is having a widespread impact on the retail industry as businesses wrestle with issues related to pricing and profits.
Recommended by LinkedIn
With the back-to-school season on the horizon, retailers concerned about consumer spending may follow Kohl’s example to take new steps to entice shoppers.
Walmart & Sam's Club
Like Kohl’s, Walmart is planning for back-to-school with promises of savings on seasonal essentials. The retailer also announced a new partnership with WALDO offering affordable contact lenses.
Walmart also continued its commitment to technology with the announcement of a Walmart+ and InHome “ultimate membership” partnership, as well as plans to add 4,500 Canoo electric delivery vehicles to support the sustainable growth of its ecommerce business.
Last month Walmart also launched its Environmental, Social, and Governance Summary Report for the fiscal year 2022, which defines the company’s four themes for the year ahead: opportunity, community, sustainability, and ethics and integrity.
Finally, Walmart furthered its commitment to connecting companies with more sustainable packaging innovations through its Circular Connector tool by announcing plans to accelerate the process through a collaboration with the U.S. Plastic Pact to offer the inaugural Innovation Awards. Designed to inspire new packaging solutions while also serving as a testing platform, this free-to-enter contest will focus on three categories: recyclability, reuse/refill, and compostability.
Brand Takeaways
Technology and sustainability remain ongoing priorities for Walmart. Packaging businesses may find the first-ever Innovation Awards to be especially interesting. Learn more here.
Amazon
Amazon had a busy July, including plans to start paying full college tuition for front-line employees, add four new small businesses to its HQ in Puget Sound, and the success of Amazon Prime Day for small businesses.
On the community and sustainability front, Amazon made serious progress, including toward:
Finally, Amazon also reported on its efforts to support sustainable grocery practices, including its commitment to safer food contact packaging.
Brand Takeaways
As always, Amazon remains at the retail industry’s forefront for technology, community, and sustainability while also revealing (and providing) opportunities for like-minded businesses and brands.
Stay on top of packaging and retail industry trends! Follow us on LinkedIn, or subscribe to our blog today.