Today in retail, Kohl’s board of directors is fighting a takeover bid by an activist investor, while Hasbro’s board urges shareholders to keep them and Puma is trying to capture the women’s market. Plus, grocery stores’ in-store apps make shopping an omnichannel experience, PayPal is embracing Commerce 2.0 as we emerge from the COVID-19 pandemic and the furniture segment is struggling with supply chain complications and increased competition.
With Athletic Apparel and Footwear in Disarray, Puma Pounces With Push For Women
With shares of Nike, Adidas, Under Armour and Lululemon all down 30% to 50% in the past six months, the opportunity for old brands to connect with new customers in new ways is immense.
Players like Puma, for example, are looking to pounce by introducing new faces and athletes via its “She Moves Us” campaign which paired the buzz surrounding the inaugural F1 race in Miami with British race car driver Naomi Schiff.
At the top of this struggle stands industry leader Nike, whose stock is down 30% in six months, as the Oregon-based shoe, apparel and equipment maker struggles with supply chain challenges as it also undergoes a major strategic shift to increase its direct-to-consumer sales and limit the number of wholesale accounts it services.
Hasbro Board Fights Alta Fox’s Efforts to Oust Directors in Shareholder Vote
The board of directors for play and entertainment company Hasbro told shareholders in a letter Monday (May 9) that the current board deserves their support when they vote during the company’s annual meeting next month, despite efforts by activist investors Alta Fox to shake things up.
Alta Fox is pushing to oust three members of Hasbro’s board, including the chairman, in the June 8 vote. Alta is the biggest shareholder in Hasbro, with a 2.5% stake.
Grocers Offer In-Store App Features to Boost Omnichannel Shopping
Twenty-eight percent of U.S. consumers used a smartphone the last time they shopped inside a store, according to data from “The 2022 Global Digital Shopping Playbook series,” a PYMNTS and Cybersource collaboration, derived from a survey of 3,100 businesses and over 13,000 consumers across six countries. The most common reason U.S. shoppers use their mobile devices was to search for offers and discounts, followed by finding product information.
The vast majority of grocery shoppers continue to prefer to shop in stores, so boosting the in-store experience with mobile features could go a long way for grocers in terms of encouraging digital adoption, which in turn allows grocers to communicate with and learn more about those customers.
Convenience Stores Seek Hot New Brands to Dampen Threat of Delivery
Convenience store retailer 7-Eleven is giving up-and-coming brands an opportunity to grow and be put on its store shelves through the annual Brands with Heart initiative, according to a Monday (May 9) press release that kicks off the application process, which runs through the end of the month.
Brands with Heart gives brands the chance to introduce their products in 7-Eleven, Speedway and Stripes locations across the U.S. Some applicants will be invited to participate in in-store tests in their region, with fan favorites from each market getting spots in the Brands with Heart showcase.
Floundering Furniture Segment Faces New Threats From Competitors, Consumers
Swedish furniture giant Ikea, which did more than $44 billion in sales last year, is embarking on a $3 billion store refresh program aimed at turning its warehouse stores into fulfillment centers.
According to Tolga Oncu, retail manager at Ingka Group, which oversees Ikea stores and franchises worldwide, the 70-year-old operator of 466 global locations is embarking on a plan to transform its famed big blue box suburban outlet to better accommodate how increasingly digital consumers are shopping.
Although Ikea and Ingka Group are privately held, the move comes at a time when rampant inflation is crimping consumer spending and supply chain bottlenecks are complicating inventory and delivery. The investment and upgrade plan also coincides with mounting pressure from investors on Ikea’s publicly traded competitors who have seen their share prices drop anywhere from 35% to 75% over the past six months.
Macellum Advisors Urge Kohl’s Shareholders to Shake Up Board of Directors
Two days before Kohl’s shareholders will vote for the retail chain’s next board of directors, the managing partner of activist investor Macellum Advisors urged voters to choose its nominees and shake up the status quo for a company Macellum believes is falling short of its potential.
In a letter Monday (May 9), Jonathan Duskin urged his fellow shareholders to “elect its aligned and experienced candidates” during the annual meeting Wednesday (May 11). Kohl’s has also been fielding offers to sell some or all of its business from, among others, JCPenney owners Simon Property and Brookfield Asset Management.
PayPal Combines COVID Learning With Digital Transformation to Pursue ‘Commerce 2.0’
For all the ground gained during the COVID-19 pandemic, the digital shift during our time in isolation revealed what’s possible in a truly connected economy that’s bringing about the rise of what PayPal Vice President – Merchant Platforms, Integrations and Dev-Experience Nitin Prabhu calls “commerce 2.0.”
This forming iteration of the new-new digital commerce impacts consumers and merchants in different ways, with common themes emerging to inform the commerce 2.0 concept. The new retail is decidedly omnichannel, and that trend isn’t going away.