Marks and Spencer has a Holly Jolly Christmas: RTIH rustles up the retail technology week in numbers
Do you like numbers? Do you like retail systems news? Then this is the article for you. Including Next, Whatnot, Retail Technology Show, InPost Group, Manhattan Associates, Ibotta, DoorDash, Amazon Fresh, Zalando, Klarna, and Shein.
5...Following a partnership in France, Italy and Spain, Zalando has rolled Klarna's out buy now, pay later (BNPL) offering to five more markets: Germany, Austria, the Netherlands, Poland and Denmark.
Kai-Uwe Mokros, Managing Director at Zalando Payments, says: "We are committed to providing our customers with a seamless and locally relevant shopping experience. Now more than ever, convenience, flexibility and conscious spending are key priorities for customers. We are very happy to extend our partnership with Klarna by launching their 'Pay in 3' option in additional markets."
"This collaboration increases our customers' payment flexibility and allows them to choose a solution that best suits their individual needs and preferences."
£4.1 billion...M&S’ third-quarter revenue rose 5.6% to £4.1 billion. Like-for-like food revenue grew 8.9% to £2.6 billion, while LFL clothing, home and beauty revenue was up 1.9% to £1.3 billion.
Stuart Machin, Chief Executive, says: "The external environment remains challenging, with cost and economic headwinds to navigate, but there is much within our control."
"We stay close to our customers and their needs, and with that in mind our investment in trusted value, along with great quality, style and innovation remains our priority. Transforming M&S is a marathon, not a sprint, and we go into 2025 shifting up a gear and raring to go as we accelerate the scale and pace of change.
$265 million...Whatnot, a marketplace focused on live shopping in the US, UK, and Europe, has announced $265 million in Series E funding, co-led by Greycroft, DST Global, and Avra. Joining Greycroft and Avra as new investors are Lightspeed Venture Partners and Durable Capital Partners, who participated in the round alongside returning backers Andreessen Horowitz (a16z), CapitalG, BOND, and Y Combinator.
The investment brings Whatnot’s valuation to $4.97 billion. The company has raised approximately $746 million since its founding in 2019.
“We believe there’s a better way to shop online, and it starts with creating a platform where sellers can grow thriving businesses around the things they care about most. We’ve proven this leads to the happiest experience for consumers and sellers alike,” says Grant LaFontaine, Co-founder and CEO at Whatnot.
“As we look ahead, we’ll offer even more ways for sellers to cultivate their communities and for buyers to shop and socialiwe. This capital will help us pave the way for mainstream adoption of livestream selling, and we’re grateful to welcome many new partners to the Whatnot family who share our vision that the future of shopping is live.”
$66 billion...Shein, which had a valuation of $66 billion at its last funding round, may be a juggernaut in the fast fashion world but its ambitions to list in London could hit a roadblock following sharp criticism from MPs investigating its supply chain.
Its general counsel for the EMEA region, Yinan Zhu, provoked the ire of British lawmakers for repeatedly failing to answer questions about the origins of its cotton, with the Chair of the Business and Trade committee saying they were horrified by the lack of evidence.
Singapore headquartered Shein, which was founded in China in 2012, is currently going through an approval process with the FCA as part of its listings application and it looks likely that, given the concerns of MPs, there will be further hold ups.
Susannah Streeter, Head of Money and Markets, Hargreaves Lansdown, comments: "Fast fashion has increasingly become an ESG risk for investors and one the regulator will be alert to, particularly given how the committee hearing has gone. The sector raises serious concerns about the sustainability of low cost materials, the environmental impact of production, and the human rights of the labour force behind the low price tags."
21 and 20...Despite Gen Z often being stereotyped as the TikTok generation, Millennials now outshop their younger consumer counterparts across TikTok, Instagram and Facebook, according to research by Retail Technology Show.
A survey of over 1,000 shoppers showed that on average Millennials made 21 purchases on TikTok in the last 12 months compared to the 20 items bought on the social platform by Gen Zers.
Compared to Gen Z consumers, Millennials also made more purchases across Facebook (20 vs 14) and Instagram (19 vs 18), making them the fastest growing demographic for social commerce, with the number of purchases made by Millennials across TikTok, Instagram and Facebook rising +36% year-on-year.
However, while Millennials lead the way on spending on TikTok, Insta and Facebook, Gen Z just outstrip them on the number of purchases made on Roblox (13, up from nine last year – a +44% increase, against 12 made by Millennials).
1 billion...European e-commerce logistics specialist InPost Group reports record high volumes in Q4 2024 and for the full year 2024. This performance was driven in Poland mainly by fashion segment and SME merchants as well as marketplaces, in Mondial Relay by growth in the B2C segment, and in the UK by rapid network expansion, coupled with improvement in logistics.
InPost Group handled a total of 322.1 million parcels in Q4 2024, marking a 20% YoY increase. On the record peak day, it served almost 14 million parcels in Europe.
During 2024, parcel volume exceeded the one billion mark for the first time ever, reaching 1,091.6 million parcels, which represents a 22% increase compared to FY 2023.
£1.5 billion...British consumers are expected to return £1.5 billion worth of unwanted Christmas gifts this year, highlighting the significant logistical and financial challenges facing retailers in the post-holiday period, according to research by Manhattan Associates.
The company surveyed 2,000 Brits for this.
From ill-fitting clothing to duplicate gadgets, gift returns initiate a complex reverse logistics process, with an estimated 67 million presents expected to be returned this year.
This puts immense pressure on retailers, warns Craig Summers, VP Northern Europe & MEA at Manhattan Associates. "Efficient returns management is vital during peak holiday season as businesses balance the need for streamlined processes with maintaining customer satisfaction."
115,000...Ibotta, which lays claim to being the largest digital promotions network in North America, and rapid delivery giant DoorDash have announced a multi-year partnership to provide the latter's customers with access to the former's catalogue.
For CPG brands, this new partnership creates an opportunity to reach consumers across DoorDash’s footprint of over 115,000 non-restaurant stores on its Marketplace in North America.
“We are thrilled to enter into this partnership with DoorDash, expand the reach for our thousands of brand partners, and continue to advance our presence in the growing on-demand delivery space,” says Bryan Leach, Founder and CEO at Ibotta.
“DoorDash has long been an innovative leader in local commerce, and we are honored to be their provider of digital offers for grocery, beer, wine and spirits, and other general merchandise categories. This partnership is especially impactful as brands continue looking to the IPN to reach new audiences, expand their market share, and drive incremental units.”
£1...Amazon Fresh has launched what is pitched as 'London’s Best Value Meal Deal', at £1 for customers throughout January.
Available from 6th - 31st January in Amazon Fresh stores across London, including the recently renovated Holborn, Liverpool St and Wood Wharf locations, customers can get a main, snack and drink from the £3.90 meal deal range for a quid.
They will need to claim the deal by visiting www.amazon.co.uk/mealdeal and pay at the gates or self-checkout using the retailer's app.
5.7%...Next’s full-price sales rose 5.7% on a comparable basis in the nine weeks to 28th December.
Aarin Chiekrie, Equity Analyst at. Hargreaves Lansdown, says: “Next’s Christmas trading update gave investors plenty to be jolly about. In the nine weeks to 28th December, full price sales rose 5.7% higher on a comparable basis, well ahead of the group’s previous guidance for 3.5% growth.”
“The better than expected finish to 2024 has led the fashion group to upgrade profit guidance once again. Full-year pre-tax profits are now expected to come in £5 million higher at £1,010 million, marking the fourth profit upgrade in a little over five months."
"Unwrapping some of the headline figures, revenue growth came entirely from the online channel, where sales growth is accelerating. Overseas sales are growing at an eyewatering double-digit pace, helping to offset a small decline in its retail stores which have come under a bit of pressure given the structural decline of the high street. End-of-season sales have delivered as expected and helped clear surplus stock, and inventory piles are sitting at a comfortable level heading into the new year."
Next also gave a sneak peak into its outlook for the new financial year, with pre-tax profits expected to grow 3.6% to around £1,046 million.
"This looks a little conservative, especially given Next’s track record of outperforming its own guidance," says Chiekrie. "But overseas growth is forecast to ease, and wage inflation and National Insurance increases are set to bring around £67 million of additional costs to cover, so erring on the side of caution is a smart move, and leaves potential for positive surprises.”
1...RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries.
As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.
As AI sees increasing adoption in the retail space, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.
Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.
Winners will be announced at an evening event at The Barbican in Central London on Thursday, 3rd July. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.
Shoppers are looking for wider deployment of AI supported services like in-aisle promotions, product information, no-stop checkout and in-store digital assistants. On the retailer side, three-quarters of companies say AI has had a positive impact on their store operations, both at improving efficiency and keeping products stocked.
A new SPAR Group survey (involving 1,000+ consumers and 60+ active retail executives) shows that both groups believe AI has the potential to make shopping easier, drive stronger brand reputation and improve the experience for both buyers and sellers.
“The survey reveals strong business cases for the use of artificial intelligence tools at stores, with both customers and merchants reporting positive outcomes from solutions and applications driven by the technology. Retailers still need to do a much better job of explaining the benefits of AI to consumers, but both groups are well on their way to an improved shopping/working experience and that will drive growth in the industry,” says Mike Matacunas, CEO and President, SPAR Group.
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