eCommerce

By Kris Bjorson, JLL

Cost versus customer experience: As retailers compete on customer experience throughout the omni-channel supply chain process, the type of real estate and where it is located is playing a major role. In fact, according to JLL research, seven out of 10 retailers are still shaping their omnichannel product offering and customer service commitments.

Los Angeles – Commercial builder Bernards is constructing two mixed-use, multifamily projects in Southern California that will include a strong retail presence. Bernard’s is nearing the end of the construction phase for the new, 303-unit Camden Glendale (formerly Glendale Triangle), a seven-story project designed to appeal to “Gen-X” professionals.

San Francisco – Gap Inc. reported disappointing sales for April and the first quarter, hurt by fluctuations in foreign currency exchange and sliding sales at its namesake and Banana Republic divisions. Also, earlier timing of the Easter holiday, as compared to 2014, benefited the company’s March sales results and negatively impacted its April sales results.

Total same-store sales fell 12% in April, worse than predicted. Sales at Old Navy declined 6%, while sales at Banana Republic plunged 15%. Same-store sales for Gap fell 15%.

Brussels, Belgium – Belgian grocery retailer Delhaize Group and Dutch grocery retailer Ahold N.V. have confirmed they are engaged in preliminary discussions about a possible merger that could create one of the largest supermarket operators in the U.S. But the two companies said the talks may not result in any deal.

While American Apparel implements a “strategic turnaround plan,” the severity of the company's financial problems is worsening. 

Net loss at American Apparel Inc. grew to $26.4 million in the first quarter of fiscal 2015, from $5.5 million the same quarter a year earlier. Net sales dropped 9% to $124.26 million from $137.1 million. Same-store sales fell 5%.

It’s been a month since the announcement of Hal Lawton’s move from Home Depot to eBay, where he will head up eBay North America.

H&M is looking to tap into some of the exploding growth in the beauty industry by launching its first beauty collection.

The retailer will launch the products this fall, with an assortment of makeup as well as hair care, body care and beauty tools. The company says the range, with an ever-evolving makeup selection, will focus on seasonal looks, ideas and colors. The products will be available in over 900 stores worldwide and online at hm.com.

Seattle -- Amazon.com is opening its second one million-sq.-ft. fulfillment center in New Jersey, in the town of Carteret, as its looks to facilitate same-day deliveries in Manhattan.

Amazon opened its first one million-sq.-ft. fulfillment center in New Jersey, in Robbinsville, in July 2014. The company employs thousands of full-time employees at its Robbinsville fulfillment center and continues to hire to meet growing customer demand.

New York – Subscription retailers outpace e-commerce retailers and flash sale businesses by a long shot when it comes to a customer’s average numbers of orders in the span of a year. According to analysis of more than 10 million orders from 2.5 million unique customers by Retention Science, subscription retailers average 7.68 orders per customer in 12 months.

In contrast, e-commerce retailers only average 2.36 orders per customer in 12 months, and flash sale retailers only average 1.41 orders in that time span.

Chicago -- JLL is getting a big boost to its retail business by acquiring Wilson Retail Group, an independent retail brokerage and capital markets firm in Southern California.

The transaction will enable JLL, the nation’s largest third-party retail property manager, to provide a broader range of brokerage and investment sales services to retailers and investors in a core urban gateway. The transaction closed for an undisclosed sum.