Today in Retail: Klarna Teams with eBay to Offer BNPL Services; Howard Schultz Returning to Starbucks as Interim CEO
Today in retail, Target partners with Stoney Clover Lane on a new spring collection, while February retail sales sputter as consumers spend more fueling their tanks. Plus, Inditex expects to reach 30% of revenue through eCommerce in 2024, Sokowatch rebrands as Wasoko and retailers are focusing on customer loyalty to solve a growing returns problem.
Feb Retail Sales Stall as Consumers Pour Money Into Gas Tanks
A U.S. Department of Commerce report released Wednesday (March 16) showed that February retail sales rose 0.3%, following an upwardly revised 4.9% jump in January, which had initially been reported at 3.8%.
When a 5.3% gain in gasoline and a 0.9% increase in auto sales are backed out, the February barometer of consumer retail purchasing actually fell 0.4% last month, the government data showed.
Among the 16 categories measured was a 3.7% drop in so-called non-store sales, which includes eCommerce, as well as the 1.8% decline posted by health and personal care stores. Restaurants stood out as one pocket of strength, with food services & drinking places rising 2.5% from January and 28.6% from 2021.
Klarna Offers BNPL to German eBay Shoppers
Online marketplace eBay and Swiss buy now, pay later (BNPL) company Klarna have joined forces to offer German shoppers more flexible payment options, according to an Alt FI report Wednesday (March 16).
The new payment options being added to eBay’s German site will supplement existing payment methods like Klarna’s Pay Now service. The new features let customers access “Pay Later” and “Financing,” giving them multiple options with each purchase.
The companies said the launch of both options will come in phases, beginning with some select sellers in the next few weeks, with a wider debut later in the year.
Zara Parent Inditex Continues Digital Transition, Expects 30% eCommerce in 2024
Global clothing retailer Inditex, parent company of Zara, on Wednesday (March 16) in its 2021 full-year and fourth-quarter earnings presentation said it expects 30% of its revenue to come from online sales in 2024, continuing a transition to a more eCommerce-heavy business that started during the COVID-19 pandemic in 2020.
Inditex announced online sales of 7.5 billion euros ($8.25 billion) in 2021, good for a 14% increase over 2020. Online revenues rose 77% from 2019 to 2020, starting at 14% of the company’s revenue in 2019, according to a report in the Financial Times.
Marta Ortega, daughter of Inditex founder Amancio Ortega, will take over as the company’s chairperson on April 1, replacing Pablo Isla. Óscar García Maceiras recently took over as Inditex’s new chief executive.
Starbucks CEO Johnson Retires; Schultz Returns for Third Time to Lead Chain
Starbucks CEO Kevin Johnson is retiring after five years at the helm and handing the leadership back to longtime chief executive Howard Schultz, who is returning to the coffee chain for the third time April 4, this time as interim CEO until a permanent replacement is hired.
Johnson, who is also exiting his board seat, will remain in an advisory role until September, according to a press release on Wednesday (March 16). He was recruited by Schultz to join Starbucks as chief operating officer in 2015. When Schultz stepped down two years later, Johnson was appointed CEO.
Retail Returns Pivot to Customer Loyalty Play From Costly Problem
The retail industry’s acceptance of the growing returns predicament is often geared more towards “selling their way out of it” by growing sales rather than actually addressing it. This is doubly true for eCommerce, where the outsized rate of returned items runs above 20%.
A growing number of merchants are pivoting toward solutions that at least reduce the pain of the inevitable and make the experience better for buyer and seller alike, whether the returns happen online or in-store.
By taking a holistic approach that automates as much of the multi-faceted returns process as possible, Orvis has been able to reduce its “WISMR” (where is my refund?) queries by 42% versus the prior fully phone-based system, Amy Williamson, customer supervisor at the Vermont-based outdoor and sporting goods retailer told PYMNTS.
Target, Stoney Clover Lane Team Up on Spring Collection
Target Corporation on Wednesday (March 16) announced a partnership with customizable accessories brand Stoney Clover Lane on a limited-time spring collection of more than 300 items, including apparel and swimwear, travel accessories, beauty essentials, outdoor items and more.
Kits and individual patches will be available on Target.com and in most Target stores starting April 2, with prices ranging from $2 to $160 and most items priced less than $20. The Stoney Clover Lane x Target collection ranges in size from XXS-4X.
Sokowatch Announces Rebrand to Wasoko After $125M Series B Funding Round
B2B eCommerce startup Sokowatch on Wednesday (March 16) announced that the company is rebranding to Wasoko after a $125 million Series B fundraising round, according to a LinkedIn post from the company.
The round valued the company at $625 million, according to a TechCrunch report.