What’s the Story?

We count down to the holiday season with a 12-week series focused on the data, trends and observations surrounding the end-of-year peak. In the second week of the series, we discuss the festivalization of holiday retail and its implications, including the benefits for US retailers.    

Coresight Research is spearheading the inaugural 10.10 Shopping Festival in partnership with Shopkick and Fashwire on October 9–12, 2020. The festival was inspired by the success of Singles’ Day and 6.18, China’s two biggest shopping festivals.

Coresight Research began planning the 10.10 Shopping Festival in June, after large retailers started voicing concerns about shipping capacity constraints this holiday season.

As part of its efforts to bring the retail industry together, Coresight Research cohosted a webinar on September 16 with David Fisch, CEO of Shopkick, and Shay Gipson, Head of Strategic Partnerships at Fashwire, to discuss how retailers and brands could participate in 10.10.

Shopkick outlined more details in a September 25 press release, prior to Amazon’s announcement of Prime Day 2020.

On September 28, Amazon confirmed that Prime Day 2020 would run on October 13–14 for shoppers in Australia, Austria, Belgium, Canada, China, France, Germany, Italy, Japan, Luxembourg, Mexico, the Netherlands, Singapore, Spain, the UAE, the UK, the US and (new for 2020) Turkey. Amid the coronavirus crisis, the event was postponed from July.

Why It Matters

The shape and scale of consumer demand during the holiday peak is less certain than ever. Our holiday coverage aims to offer directional guidance. In addition, as supply chains are strained and many retailers canceled orders earlier in 2020, the dynamics of this holiday season will be unlike any before. We believe that it could be unexpectedly strong as consumers have pent up demand and, due to the limited options for spending on services in recent months and over the holiday season, more discretionary income is available to be spent on gifts for others and for “selving” (self-gifting).

Festivalizing Holiday Retail: In Detail

10.10 Shopping Festival

The 10.10 Shopping Festival will run on October 9–12, including the event’s namesake day of October 10 (or 10.10). The event will offer a gamified retail experience as well as deals to consumers, while driving traffic and pulling forward holiday shopping for retailers.

During the 10.10 Shopping Festival, which will span Shopkick’s Shopper Appreciation Weekend (October 9–11), shoppers will earn major rewards in the form of “kicks” (Shopkick’s rewards currency), for visiting and purchasing from participating retailers and brands, both online and offline. “Kicks” can be redeemed for gift cards or donated to participating charitable organizations. 

In addition, Fashwire’s participating designers will be presented in a curated global shop available in store, online and via the Fashwire mobile app. All participating designers will donate a portion of their proceeds to charitable causes.

Philanthropy is a core component of the 10.10 Shopping Festival, which encourages retailers and consumers to give back. Shopkick members will have the opportunity to redeem their “kicks” in the form of a charitable donation, and Shopkick will donate 5% of the monetary value of all “kicks” earned throughout the weekend to a charity. The festival is partnering with charities including St. Jude Children’s Research Hospital, a cornerstone partner; Pink Aid, helping to celebrate Breast Cancer Awareness Month with a 10.10 Gala; Soles4Souls, which turns unwanted shoes and clothing into livelihoods for those in underdeveloped countries; and The Mayor’s Fund to Advance New York City, which supports people with disabilities (PWD).

Supporting partners for the festival include innovators such as Newmine, Position Imaging, Science Inc. and Trove; REITs, landlords and shopping centers such as American Dream; supply chain companies such as Blue Yonder; and the Manhattan Chamber of Commerce.

Prime Day

Prime Day will be held on October 13–14 in most countries this year. It remains a 48-hour event, like last year, but between September 28 and Prime Day, Amazon.com will offer daily offers for Prime members.

Here’s what’s new:

  • During Prime Day, the company’s livestreaming platform, Amazon Live, will spotlight deals from small businesses selling on Amazon.com.
  • In its daily deals leading up to the event, Amazon is promising discounts of up to 30% on premium fashion brands; up to 40% off Amazon brands including in fashion, pet, food, and health and wellness; and $15 off shoppers’ first order of $50 or more on Amazon Fresh.
  • Greater prominence for small businesses includes a “Spend $10, Get $10” promotion from September 28 to October 12, curated collections of products from small businesses, and Amazon claiming to spend more than $100 million on promotional activities to help small firms grow sales.

The Impacts and Implications

The 10.10 Shopping Festival will herald the start of the holiday season for US retail, in place of the more traditional Thanksgiving and Black Friday. This event will help to pull forward holiday shopping, to help alleviate supply-chain pressures—especially in the fulfillment of online orders—against the backdrop of the Covid-19 crisis.

Already, three in 10 US consumers expect to start shopping earlier for the holidays, compared to last year. This compares to just one in 10 that expects to start later. Among those expecting to shop early, the earlier availability of discounts is a prompt for 35% of respondents (highlighted in Figure 1). Many shoppers appear to be attuned to the pressures on shipping capacity, with almost half (47.8%) of early shoppers concerned about online orders being delivered in time.

 

Figure 1. Respondents That Expect To Start Holiday Shopping Earlier: Why They Plan To Shop Early (% of Respondents)
Base: 339 US respondents aged 18+ who expect to start holiday shopping earlier than last year
Source: Coresight Research

 

Retailers must not miss this opportunity to:

  • Capture early holiday sales.
  • Spread demand over a longer period and so alleviate pressures in fulfillment.
  • Piggyback on consumer interest in shopping festivals such as Prime Day.

And, of course, they must minimize any loss of sales to Amazon.

On September 29, the day after Amazon confirmed the dates of Prime Day, Target said that it will hold its Deal Days promotional event on the same two days—October 13 and 14. Target will also expand “Black Friday pricing” through the whole of November, and promises to offer almost 1 million more deals than last year.

Soon after, Walmart announced a Big Save Event, running October 11–15.

In 2019, we saw rival US retailers and marketplaces run promotions against Prime Day:

  • Target Deal Days ran from July 15 through July 16, the same days as Amazon Prime Day.
  • Online marketplace eBay’s “Crash Sale” on July 25, 2019 saw a wave of deals, from electronics and home items to fashion and accessories. So far this year, the retailer has not announced plans for the event.
  • Walmart launched a “Google Week” from July 8 to July 16 in 2019.
What We Think

October shopping events will help pull forward holiday demand, extending the season to three months. Coresight Research has heard concerns about shipping capacity constraints this holiday season from a number of retailers. Major logistics providers have indicated that their already strained networks will be severely tested in the months ahead, as e-commerce captures a bigger share of holiday sales.

Other advantages of festivalizing holiday retail include the following:

  • Shopping festivals give brands an opportunity to clear inventory that may have accumulated during the Covid-19 crisis and lockdowns. Globally, Amazon sold over 175 million items—ranging from groceries to devices—on Prime Day in 2019.
  • Shopping holidays’ limited-time offers create a sense of urgency for shoppers by generating a fear of missing out.
  • Festivals can serve as a springboard for new products. Each year, Amazon highlights new products from curated brands, which are launched during the event. This year, Prime Day in India saw over 300 products launched. In China, Singles’ Day is a major event for new products.

Implications for Brands/Retailers

  • Retailers can jump on board existing festivals, launch their own events or extend traditional holidays such as Black Friday to much longer periods. Retailers must not miss the opportunity to capture the expanding demand for early holiday shopping. They should seek to spread demand over a longer period and so alleviate supply-chain pressures. They can also piggyback on shopper interest in festivals such as Prime Day. Furthermore, retailers should seek to minimize any loss of sales to Amazon.

 

 

Reasons to Read

In this Market Outlook, we explore the recovery of the US retail REITs (real estate investment trusts) sector in a coronavirus-impacted retail environment.

This report covers the following:

  • The size of the US retail REITs sector—including the distribution of major shopping centers by state, funds from operations over the past five years, and sector headwinds and tailwinds
  • The competitive landscape—including market capitalization, net revenues and investment categories of selected major players
  • Key themes in the market—including rent collection, store closures and tenant-landlord relationships

This report focuses on eight of the major retail REITs operating in the US: Brixmor Property Group, Brookfield Property Partners, CBL Properties, Macerich, Simon Property Group, Taubman Centers, Unibail-Rodamco-Westfield and Washington Prime Group.

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We present Three Things You Need To Know on US Home-Improvement E-Commerce: Retailers Accelerate Plans To Scale Online Operations. Find the full report here.

QUESTION OF THE WEEK: How Has Covid-19 Impacted Omnichannel Fulfillment for Major US Store-Based Retailers?

The surge in online orders at store-based retailers was reflected in demand for collection services, including in newly launched or extended curbside collection services. For example, Target reported that stores enabled more than 75% of its digital sales in its second fiscal quarter ending July 31, 2020.

Reasons to Read

On September 17, 2020, Deborah Weinswig, CEO and Founder of Coresight Research, presented at the Dallas-Fort Worth Retailers Association September Meeting, providing insights into the trends shaping the future of retail.

We summarize highlights from Weinswig’s presentation in this report, covering the following key content:

  • The rebound of retail in the US and China following Covid-19
  • Five post-crisis trends in retail—including the shifts to contact-light retail and experiential e-commerce
  • Five actions that retailers can take to drive market share in the new environment—including by spearheading new shopping festivals and increasing omnichannel personalization and loyalty.
  • Expectations for this holiday season

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Reasons to Read

This report provides select findings from Coresight Research’s September 29 survey of US consumers on their behaviors and expectations, with a focus on implications for retailers. This week, we discuss volatility in consumer behavior across retail and food service.

This report is available for free and can be accessed by registering for a free account. We highlight selected findings from our weekly survey across three key topics:

1 What activities respondents have done in the past two weeks

2 Whether respondents are currently avoiding public places, including shopping centers and malls

3 Whether respondents are buying more or less of any retail categories as a result of the Covid-19 outbreak and, if so, which types of products

Our full report is available to premium subscribers and includes further findings:

A full list of the public areas or travel that consumers are avoiding

A full list of the activities that respondents have done in the past two weeks and what they expect to do in the next two weeks

Whether US shoppers are making more purchases online during the coronavirus outbreak and, if so, which categories

Our latest research provides an update to our previous reports, which were based on surveys undertaken on September 22, September 15, September 9, September 2, August 26, August 19, August 12, August 5, July 29, July 22, July 15, July 8, July 1, June 24, June 17,June 10, June 3, May 27, May 20, May 13, May 6, April 29, April 22, April 15, April 8, April 1, March 25 and March 17–18.

In addition to this survey, Coresight Research is publishing ongoing coverage on the coronavirus outbreak, which can be accessed here.

 

 

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Reasons to Read

Coresight Research’s September 29 survey provides a detailed update on US consumers’ behaviors, concerns and expectations, with a focus on the implications for US retail.

This week, we discuss volatility in consumers’ current and expected behaviors across retail and food service, with survey findings covering the following:

  • What activities respondents have done in the past two weeks and what they expect to do in the next two weeks
  • Whether respondents are currently avoiding public areas or travel—and which types of places or travel they are avoiding
  • Whether respondents are buying more or less of any retail categories as a result of the Covid-19 outbreak and, if so, which types of products
  • Whether US shoppers are making more purchases online during the coronavirus outbreak and, if so, which categories

The findings provide an update to our previous reports, which were based on surveys undertaken on September 22, September 15, September 9, September 2, August 26, August 19, August 12, August 5, July 29, July 22, July 15, July 8, July 1, June 24, June 17, June 10, June 3, May 27, May 20, May 13, May 6, April 29, April 22, April 15, April 8, April 1, March 25 and March 17–18.

If you do not have a premium subscription, you can access select findings in a complimentary abridged report.

In addition to this survey, click here to view additional coverage of the coronavirus outbreak.

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Reasons to Read

In each report in the Weinswig’s Weekly series, Coresight Research CEO and Founder Deborah Weinswig reflects on a topical theme in retail. This week’s note “From the Desk of Deborah Weinswig” discusses how the new 10.10 Shopping Festival will kickstart the holiday shopping season in early October in the US this year.

Each report also includes recent retail and technology headlines from Asia, Europe and the US.

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Reasons to Read

Coresight Research’s Coronavirus Tracker brings together data on the development of the coronavirus pandemic and its impact on countries, economies, industries and consumers. The Coronavirus Tracker includes:

  • A frequently updated coronavirus timeline of key developments related to the spread and impact of the outbreak worldwide, from China to the US.
  • An up-to-date timeline of the events that have been canceled or postponed across business, sport and leisure.
  • Details of announced temporary store closures or reduced opening hours by major US retailers.
  • Newly added on March 25—hiring plans announced by major US retailers, including those seeing strong demand for nondiscretionary goods and those selling online.

Check back regularly as we add new information on the impact of the coronavirus pandemic on economies, retailers and consumers—including data from Coresight Research US consumer surveys. And find our Coronavirus Insights reports here.

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QUESTION OF THE WEEK: Which US Retailers Saw the Fastest Online Sales Growth in the Second Quarter?

Albertsons, Best Buy and Ulta Beauty grew online sales by more than 200% year over year in the second quarter. Dick’s Sporting Goods, Home Depot, Kroger, L Brands, Lowe’s, Lululemon, Target and Tiffany & Co. reported triple-digit e-commerce growth.

Reasons to Read

Our Weekly US and UK Store Openings and Closures Tracker reports on store closures, openings and bankruptcies. We cover:

  • A week-by-week comparison of store openings and closures in the US and UK year to date in 2020
  • What is happening in retail in the US and UK this week
  • Year-to-date 2020 major US and UK store openings and closures
  • 2020 major US retail bankruptcies
  • New non-store-closure news

This week, there are highlights from Allbirds and Ascena Retail Group in the US and Aldi and B&M in the UK. We also discuss quarterly store opening settlements in the US following the release of quarterly company filings this week.

Click here to view our full collection of Weekly US and UK Store Openings and Closures Trackers.

Complementing our weekly Tracker report, the new Coresight Research Retail Store Databank offers our premium subscribers access to openings and closures data from 2012 to 2020 year to date, filterable by sector and year. Click here to view.

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Reasons to Read

The Coresight Research team attended Alibaba Group’s annual Investor Day virtually. We present key insights from the event on September 28–30, including the recent performance and future outlook of Alibaba’s key businesses:

  • Core Commerce—Taobao, Tmall and Tmall Import
  • New Retail—Freshippo
  • Local Services—such as Ele.me
  • Cainiao Logistics
  • Alibaba Cloud

We also outline Alibaba’s three core growth engines and strategies.

Clear here to read more Coresight Research coverage of Alibaba Group.

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Reasons to Read

On September 22, 2020, Coresight Research hosted Andreas Sjölund, Quinyx Chief Revenue Officer and Cofounder, to discuss how workforce management automation can help retailers manage the new retail landscape.

We present key insights from the webinar, covering the following topics:

  • How meeting employee priorities in terms of flexibility can boost employer revenues and loyalty.
  • The role of workforce management automation in ensuring safety and appreciation in the work environment
  • How automated workforce systems can optimize the arrangements of employee shifts

Click here to view the video recording of this webinar.

To register for future Coresight Research webinars, please click here.

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Reasons to Read

On October 1, 2020, Coresight Research presented

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Reasons to Read

The rapid shift toward working from home in the wake of the coronavirus pandemic has accelerated the longstanding casualization trend in US workplace dress codes, with significant impacts for the formal businesswear market. We discuss the following key topics:

  • The current US businesswear market—including the scope of different formal apparel categories and the impact of coronavirus-related shifts to working from home on brands and retailers including Ann Taylor, Brooks Brothers and Tailored Brands.
  • The future of the businesswear market, including the increased popularity of work-leisure clothing and technology innovations in businesswear.
  • Opportunities for growth in the declining market—such as DTC and online sales and subscription/rental business models, with examples from brands including Indochina and Rent the Runway.

For more insight into the US retail industry, read our previous deep dive report on US Home-Improvement E-Commerce here.

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