eCommerce

Online retail giant Amazon is not looking for a repeat of holiday 2015, when increased fulfillment costs due to a surge in orders took a bite out of its holiday quarter earnings.   The company is adding 18 warehouse facilities this quarter in preparation for the holiday surge, according to a report by Recode. Last year, it added six.  

Clicks-to-bricks phenomenon Bonobos’ retail journey will soon extend to Manhattan’s Madison Avenue. The company has signed a 10-year lease for 1,725 sq. ft. on the ground floor of 488 Madison Avenue near St. Patrick’s Cathedral.   Neighbors of Bonobos at its new location include Saks Fifth Avenue, Tourneau, Burberry, and Nordstrom’s Trunk Club. The Feil Organization recently completed major renovations on the building, including a two-story glass curtain wall in the office lobby.  

Deal volume in the retail and consumer sector is up, but deal value is down.   Deal volume in the second quarter in the sector reached its highest level in the past 12 months, with 282 announced deals, up 5% over the first quarter, according PwC’s Q2 2016 retail and consumer M&A report.  

Rent-to-own giant Aaron’s saw its revenues rise but profit drop in the second quarter, and the retailer said it would review its store base going forward.     

Amazon has launched an online shop dedicated to innovative products from start-up companies.   Amazon has teamed up with popular crowdfunding site Kickstarter to showcase a collection of products that have been successfully funded on the platform. The Kickstarter Collection is featured on Amazon’s Launchpad section, the company’s storefront for hardware startups and crowdfunded projects. The new collection has more than 300 products, and covers a wide range of categories, from electronics and toys to home and kitchen.

Consumers’ increased confidence in their own financial situation bodes well for back-to-school spending.    At least that’s according to Synchrony Financial’s Back-to-School survey, which found that clothing, shoes and electronics represent the majority of back-to-school spending for most families surveyed and more than a third expect to spend more in both categories this year. Longer supply lists and more technology needs are among the drivers of increased spending.   

Consumers are putting their best foot forward when it comes to spending.