Retail Roundup | November 2022
As a retail technology company obsessed with data, we at Tillerman are constantly looking at the trends and forecasts shaping the retail industry broadly. The start of 2022 continued to bring challenges with supply chain issues, inflation and of course Omicron having an impact, but there were bright spots as well. Heres a roundup of some of the retail stories that caught our eye this month.
With the November weather finally turning cold, all eyes were on Black Friday to close out the month. According to the Wall Street Journal, early signs were pointing to a more muted shopping day than last year. But surprisingly they found that people spent $5.3 billion online on Thanksgiving Day,
up 2.9% from the holiday last year. Adobe Analytics, which the WSJ cited in their article, forecasted that online spending on Black Friday itself would be between $9 billion and $9.2 billion, up 1% to 3% from a year ago. Results came in on the higher end of that estimate and, according to Retail Dive, Adobe Analytics reported that Black Friday's online spending reached $9.12 billion this year, up 2.3%.
Contrastingly, muted expectations for Singles Day proved true as this year's results were "disappointing" according to BOF. Neither Alibaba-owned Tmall nor rival JD.com published precise Singles Day figures-for the first time in more than ten years-but estimated results were well off the $115 Billion generated in 2020, and most fashion and luxury players were unhappy.
Macy's and Mattel both expanded their footprint in the Metaverse. Macy's produced a virtual Thanksgiving Day Parade (in the metaverse) with a digital experience powered by the OnCyber metaverse, and Mattel has launched its own NFT marketplace.
The New York Times reported that Walmart delivered a rise in sales in its latest quarter, signaling that consumers have continued to spend despite high inflation and that the retailer had moved past the missteps that plagued it earlier this year. Walmart also increased its full-year forecast for revenue and profit, and projected confidence by announcing a $20 billion share buyback.
Sticking with the theme of positivity, fashion trends have continued to drive sales in spite of inflation and recession fears. The Dad Sneakers movement stays strong, according to the Wall Street Journal. The sneaker, typically bland and oversized in style, has proven to be a massive hit among consumers driving prices upwards of $1,000 from luxury labels like Balenciaga and Gucci. The trend has also inspired a reappraisal of stalwart athletic brands like New Balance, Mizuno and Asics. Despite their bargain brand aesthetic, a series of blocky New Balance 550 sneakers (made in collaboration with New York brand Aimé Leon Dore) have become a staple among city dwellers and boast a resale value three times their original price.
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