The ups and downs of retail: Best Buy, malls and Pokémon GO


The world of retail can be a fickle mistress. One quarter, a company can post killer or even better-than-expected earnings and be the stock of the day on Wall Street, only to fall flat the following quarter by missing earnings estimates by pennies per share.

Or in the case of Chipotle, years and years of buzz, customer loyalty and positive branding were undone after a few diners fell ill after eating at Chipotle restaurants across the country (including the brand is still trying to recover).

That said, PYMNTS decided to take a look at some of the biggest retail winners and losers around.

UP

Best Buy had one such example of a very good trading day on Tuesday (August 23) after the company posted strong quarterly earnings. Shares of the electronics retailer hit a 10-month high after rising more than 16% on Tuesday in the wake of the company’s earnings announcement, which showed sales and profits were exceeding expectations for the company. industry by fairly wide margins. Best Buy reported revenue of $ 8.53 billion for the quarter, roughly flat from the same period last year (revenue was actually estimated to be down), and saw profits increase by 6 % to $ 185 million.

It’s also a good time to be a mall, apparently. As recently released data from the Cowen Consumer Tracker Survey shows customer traffic hit a two-year peak in July, with 26% of all U.S. shoppers visiting a mall during that month. It’s also a 4 percent increase in visits since March. And it looks like frugal millennials are fueling the movement by visiting outlet stores, like Nike, Adidas and Under Armor, for athletic shoes and athletic wear, according to Footwear News.

It’s also not a bad time to be a robot. Seriously. As recent data released by the Association for Advancing Automation shows, there were more robots ordered for manufacturing and business purposes in the first half of 2016 than at any time before. And those numbers are only expected to increase in the coming years, as advances in automation technology and the growing use of robots in manufacturing are expected to “fuel the next wave of productivity and job growth. in the USA”.

DOWN

But, for every winner, there is a loser, and surprisingly, the record-breaking game in the Pokémon GO app tops this list this week. New data shows that, just two months after a release that saw it shatter just about all downloadable app store records, users are losing interest in augmented reality gaming quite quickly. According to Bloomberg, the game peaked at around 45 million daily users in mid-July, but was down to around 30 million daily users last week. That’s a drop of about a third of its daily users, not even two months since the game’s initial launch.

It’s also a bad time for Bay Area startups. Yes, of course, there probably won’t be a shortage of startups keen to relocate to Silicon Valley just yet due to its skilled workforce and network of industrial connections, but a new report from The New York Times finds that many nascent startups are ditching the region’s high rents and crushing commuting to, among other places, Phoenix, Arizona. With wages, taxes and energy costs about 25% lower in Phoenix compared to the Bay Area, the city has seen an 8% increase in tech jobs in the past year alone.

And you can say goodbye to “Store” in “Apple Store”. No, Apple is not closing all of its physical locations. Rather, it is a “clarification” to remind customers that Apple physical locations are more than just retail stores. So the Apple Store in Union Square, for example, will now be called only Apple Union Square.

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NEW PYMNTS DATA: TODAY’S SELF-SERVICE PURCHASE JOURNEY – SEPTEMBER 2021

On: Eighty percent of consumers want to use non-traditional payment options like self-service, but only 35 percent were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a PYMNTS and Toshiba Collaboration, analyzes more than 2,500 responses to find out how merchants can address availability and perception issues to meet demand for self-service kiosks.


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