News

Received a favorite Mother’s Day gift? Thank a chatbot
This year, consumer spending for Mother's Day was on pace to reach a record high. According to the National Retail Federation's annual study, shoppers were set to spend $23.6 billion, spending an average of $186 per mom. And everything from flowers, gift cards and clothing to jewelry, personal services and consumer electronics were on shopping lists. But did all that shopping land the perfect gift?
Graduation spending to hit record high
Some good news for retailers: Consumers plan to spend more than ever on graduation gifts this year as they stuff greeting cards with gift cards and cash. That’s according to the annual survey by the National Retail Federation and Prosper Insights & Analytics. With more consumers buying for graduates this year – 36% compared with 34% in 2016 – total spending is expected to reach $5.6 billion. That’s the highest number in the survey’s 11-year history, topping last year’s previous record of $5.4 billion.

Staples has mixed Q1

Staples reported mixed results for its first quarter as earnings came in line with expectations but its revenue fell short. The office supplies retailer reported adjusted earnings of 17 cents a share, in line with Wall Street forecasts. Total sales fell 5% to $4.1 billion, short of analysts’ expectations. Total company same-store sales fell 3%, beating estimates.
More big numbers from Home Depot

The world’s largest home improvement retailer raised its earnings expectations as it announced first quarter sales and earnings gains that beat the Street. Net earnings for the first quarter of fiscal 2017 were $2.0 billion, better than expected, compared with net earnings of $1.8 billion, in the same quarter last year. For the first quarter of fiscal 2017, diluted earnings per share increased 16.0% from the same period in the prior year.
Urban Outfitters Q1 profit falls 60%

Urban Outfitters reported disappointing results for its first quarter, weighed down by heavy promotional activity at its namesake and Anthropologie banners. The company’s net income fell 60% to $11.94 million, or $0.10 per share, down from $29.56 million, or $0.25 per share, in the year-ago period. Analysts had expected the company to earn $0.16 per share,
Starbucks’ payment system shut down takes a toll

Free coffee was on the menu at some Starbucks locations on Tuesday, due to a point-of-sale software glitch. What the coffee giant described as a typical software update ended up putting point-of-sale systems out of commission — and for longer than expected, in some locations. The outage began in the evening on Monday, May 16, and continued into Tuesday, May 17, according to CNBC.
Study: Email subscribers on the rise, post-engagement lags

New subscribers are bolstering marketers’ subscription bases by leaps and bounds, yet click rates continue to decline. New subscribers make up an average of 6% of marketers' subscriber bases. This is an 8% increase year-over-year (YoY), and 30% jump over the last three years, according to “Q1 2017 Email Marketing Compass: The New Age of Email Marketing,” a report from Yes Lifecycle Marketing.
Online home furnishings retailer delves deeper into AI

Wayfair is streamlining the way its shoppers navigate its vast online catalog as they search for specific looks. The retailer launched “Search with Photo,” a new feature that leverages artificial intelligence to make it easier for shoppers to find their desired furnishings. Shoppers can now simply snap a photo to find and purchase specific products that match the looks they see and love.
Off-price giant Q1 earnings beat Street, but sales miss

The TJX Companies had a rare sales miss in its first quarter, and gave second quarter guidance below expectations. Net sales for the first quarter, ended April 29, increased 3% to $7.8 billion. Analysts had expected $7.88 billion. Consolidated same-store sales increased 1% over last year’s 7% increase, just missing analyst’ estimates.
Report: Walmart preps for next competitive threat

Executives at Walmart are planning their next move in anticipation of its newest rival — and asking suppliers to support their cause. The European grocer Lidl, which has a track record for disruption, is preparing to open its first 20 United States-based stores this summer. The first locations are set to open their doors in the next few weeks. As a result, Walmart is asking suppliers to keep their prices low, according to the Consumerist.