International Retail in the Green as Big Firms Report Profits
The retail industry across the globe had much to cheer about in October, as biggies Amazon and Skechers reported high profits. The unexpectedly prolonged heatwave in the UK also boosted the sale of summer items, last month. A detailed look at all that's m
Amazon Reports US$ 56.6 Bn Revenue in Q3 Riding on its Cloud business, retail giant Amazon.com saw its net sales increasing 29 percent to US$ 56.6 billion in the third quarter this year, compared with US$ 43.7 billion in third quarter of 2017. Operating income increased to US$ 3.7 billion in the third quarter, compared with operating income of US$ 347 million in the third quarter of 2017. Net income increased to US$ 2.9 billion in the third quarter, or US$ 5.75 per diluted share, compared with net income of US$ 256 million, or US$ 0.52 per diluted share, in the third quarter of 2017. “Amazon Business has now reached a US$ 10 billion annual sales run rate and is serving millions of private and public-sector organisations in eight countries,” said Jeff Bezos, Founder &
CEO, Amazon. “We’re not slowing down – Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100,” Bezos said in a statement. Amazon gave fourthquarter revenue guidance in the range of US$ 66.5 billion and US$ 72.5 billion.
Amazon Web Services (AWS) announced several new customer commitments and major migrations during the quarter. In the third quarter, Amazon introduced a new family of Echo smart home speaker devices. Amazon also introduced the allnew Fire HD 8 tablet, featuring an 8-inch HD display, a quad-core processor, 16 GB of internal storage with support for up to 400 GB more via microsd, up to 10 hours of mixed use battery life, and hands-free access to Alexa. The number of Alexa-compatible smart home devices has quintupled year to date to more than 20,000 devices from over 3,500 brands. Through new tools, including updated Alexa Smart Home Skill APIS and the Alexa Connect Kit, developers and device makers can enable voice control of any device and feature with Alexa. Amazon India also announced the launch of amazon.in in Hindi. Amazon Business is generating US$ 10 billion in annual sales, serving hundreds of thousands of business sellers and millions of customers across eight countries.
43.3 pc Consumers Spent on Summer Products This Year Due to Heatwave: Report
The prolonged heatwave in the UK and major sporting events boosted spending on summer items such as outdoor and gardening products, BBQ food and holiday clothing, with consumers judging Tesco to be the retailer that had promoted its summer ranges the best, according to Globaldata, a leading data and analytics company. The company’s latest report ‘Summer in the UK 2018,’ reveals that 43.3 percent of consumers spent on summer this year, including retail products and leisure. Despite spend on retail dominating, spend on leisure increased as a proportion of overall spending, as UK consumers took advantage of the great weather. Emily Salter, Retail Analyst at Globaldata commented, “Price continued to drive retailer choice for summer products, as low price was an important influencer for 55.4 percent of food and grocery shoppers, and 54 percent of holiday shoppers. The significance of price was despite an increase in perceived financial wellbeing.
“Along with the heatwave, price-focused retailers could take advantage of the 46.6 percent of consumers who watched the FIFA World Cup, thus capitalising on the increase in overall summer spending, with retailers such as ASDA, Primark and Aldi increasing their purchaser shares across summer product categories.”
Alibaba’s Robust Ecosystem Supercharges 2018 11.11 Global Shopping Festival
Alibaba Group Holding Limited officially kicked off the 2018 11.11 Global Shopping Festival in China’s capital, promising this year’s mega-event will be the largest-ever in terms of scale and reach. Businesses within the Alibaba ecosystem will jointly offer hundreds of millions of consumers
an enriching experience that supports their pursuit of high-quality products, entertainment and fast, reliable services. The festival will also demonstrate the enthusiasm of consumers and brands embracing Alibaba’s new retail strategy – the convergence of online and offline retail through technology. “This year marks the 10th anniversary of 11.11. On the back of China’s explosive digital transformation, the Festival’s astounding growth over the past decade has powered the steady growth of quality consumption sought by Chinese shoppers. The evolution also showcases the development of the Alibaba ecosystem over time expanding well beyond e-commerce,” said Daniel
Zhang, CEO, Alibaba Group. This year, 500,000 items will be available for pre-order on Tmall from October 20. Customers can enjoy additional promotional coupons on Mobile Taobao and Mobile Tmall.
Derek Miller Named President of IHA
Derek Miller has been named president of the International Housewares Association, succeeding Phil Brandl who will retire at the end the year. Miller, currently IHA’S vice president, global marketing, will assume the role of president October 1, 2018. Miller was selected by a unanimous vote of the IHA Executive Committee.
“We have a great staff and senior management team at IHA, and Derek has been an incredibly integral part of that for a long time,” Brandl said in making the announcement. “I congratulate Derek and believe he’s a great choice to lead the IHA organization. Quite frankly, this is a compliment and vote of confidence to the entire IHA team.”
“Having worked in housewares for more than 22 years, I am extremely pleased to continue serving the industry, the International Home + Housewares Show and the IHA through this new position,” Miller said. “I look forward to working with the IHA board of directors and leading the IHA staff to further develop the Show and other projects for the benefit of our entire industry.” Miller joined IHA in December 1999 as Director, International Business Development, and was named Vice President, International Services in October 2001. He led IHA’S international department until March 2014 when he was named vice president, global marketing.
Skechers Achieves Record Third Quarter 2018 Sales
Skechers USA, a global footwear leader, has announced financial results for the third quarter ended September 30, 2018. “Achieving record third quarter sales is a notable accomplishment given the strength of our third quarter 2017 sales,” stated Robert Greenberg, Chief Executive
Officer, Skechers. “As we near the close of 2018, we believe the direction of our business is on target with our record sales in the third quarter, continued international growth and strong gross margins,” stated David Weinberg, Chief Operating Officer of Skechers. Weinberg added, “With three record sales quarters in 2018 and brand acceptance around the globe, we achieved a new record for the first nine months of US$ 3.56 billion, an 11.5 percent increase over last year. In the third quarter, our international distributor business returned to growth, increasing 11.6 percent over the same period last year, and combined with our international joint venture and subsidiary business, our total international wholesale sales increased 11.8 percent for the period. International wholesale along with international retail now represents 55.5 percent of our total business. We expect our business in the United States—both wholesale and retail—to grow in the fourth quarter. We remain committed to efficiently and profitably growing our global footwear business.”
Sales grew 7.5 percent as a result of an 11.8 percent increase in the Company’s international wholesale business, and a 10.6 percent increase in its Companyowned global retail business. Its domestic wholesale business decreased 3.0 percent. The Company’s total international business grew 12.5 percent and its total domestic business grew 1.8 percent. Third quarter comparable same store sales in Company-owned retail stores worldwide increased 1.9 percent, including an increase of 3.0 percent in the United States offset by a decrease of 0.8 percent in its international stores.
Gross margins slightly increased as higher domestic margins from improved retail pricing and product mix were partially offset by the impact of negative foreign currency exchange rates.