Sam’s Club is trialing Scan & Go technology that gives members access to direct-to-home shipping, it said Tuesday. The option is integrated into the Sam’s Club app and will allow members to place direct-to-home orders in the aisle by scanning select merchandise. Sam’s Club bills the program, dubbed Scan & Ship, as an easy fulfillment solution for items that require large vehicles for delivery, such as big-screen TVs, playsets, patio furniture, mattresses and grills. It gives members a way to select alternate colors and sizes unavailable in the club. The member can buy the item and have it delivered typically within three to five business days, said the retailer. Scan & Go uses near field communication; shoppers scan a QR code to begin contactless shopping and skip the traditional checkout line. The feature can be used three times before a message prompts the member to download the Sam’s Club app to use Scan & Go again, it said.
May retail sales through electronics and appliance stores, though down 3.4% sequentially from April, were up 90.8% from May 2020 when many physical store operations were closed or curtailed, reported the National Retail Federation Tuesday. Online and other non-store sales were down 0.8% from April but up 8.2% year over year, it said. NRF attributed the marginal month-over-month declines in electronics and other sectors as “largely due to supply chain constraints.” Consumer demand “has continued to be strong even as the concentrated impact from government stimulus has faded,” said NRF. “There is still pent-up demand for retail goods and consumers are likely to remain on a growth path into the summer.”
Walmart is giving 740,000 store employees a new, free Samsung Galaxy XCover Pro smartphone with case and protection plan, plus an app designed to help them manage daily schedules, said the retailer Thursday. Employees will be able only to access the app’s work features while they’re on the clock, but they can use the phone as their own personal device if they choose “with all the features and privacy they’re used to,” it said. Walmart won't have access to employees' personal data, it said. Employees previously shared Walmart-owned handheld devices on the job.
Two-thirds of consumers in traditional retail loyalty programs aren’t satisfied with them, and 40% aren’t interested in joining one due to a lack of perceived value, blogged Clarus Commerce Friday. COVID-19 has accelerated the need for retailers to differentiate, Clarus said, citing a McKinsey study saying 35% of U.S. consumers tried a new brand since the start of the pandemic, and 77% have engaged in new shopping behaviors. Two-thirds of consumers said their loyalty is harder for retailers to secure at a time when large retailers are stepping up efforts to launch premium programs. Best Buy is testing a $199 annual program in 60 stores (see 2105270052), offering exclusive member pricing, unlimited Geek Squad tech support, two-year warranties, free delivery on all products and free installation on most products and appliances, said CEO Corie Barry on a call last week. Walmart is offering a 15-day free trial to its latest loyalty program, Walmart+, a $98 annual plan that offers free shipping with no order minimum, a 5-cents-per-gallon discount on gasoline, and the ability to check out by phone in store.
Conn’s opened a store in Ocala, Florida, its seventh in the state, it said Friday. The 34,000-square-foot showroom in the Boyd Market Center has CE products, appliances, furniture, mattresses and home office products. A grand opening is planned for summer. Conn’s operates 152 stores across 15 states.
Masks, hand sanitation and social distancing will be required when Google opens its first brick-and-mortar retail store inside its campus in New York’s Chelsea neighborhood this summer. “Our expectations of how we shop have changed significantly, and forever, due to the COVID-19 pandemic,” blogged Jason Rosenthal, vice president-direct channels and membership, saying employees will clean all spaces multiple times a day and limit visitors “to ensure customers feel safe when they visit." Store management will follow the guidance of local and national authorities to adapt health and safety procedures as needed, Rosenthal said Thursday. Many customers want to experience products before buying them to “learn what it feels like, sounds like and looks like in their hand or on a desk,” he said, “but in-store shopping might look a bit different than what customers are used to.” Health and safety of customers and the store team is the priority, he said. “Easy pickup options” will also be available for customers who shop at GoogleStore.com. Google employs more than 11,000 in its New York office and views the store “as a natural extension of our longtime commitment to the city,” said Rosenthal. Customers will be able to browse and buy Google products in the Nest, Pixel and Fitbit lines. Store visitors will be able to “experience how our products and services work together in a variety of immersive ways." Store employees will help with troubleshooting an issue, “fixing a cracked Pixel screen or helping with installations,” he said. The store will hold how-to workshops throughout the year. Google welcomes feedback on the store “so we can continue to explore and experiment with the possibilities of a physical retail space and build upon the experience.” The Google store, with a block-long footprint between 8th and 9th avenues, is a few hundred feet from Apple’s West 14th Street Meatpacking District store.
BJ’s Wholesale Club had “elevated consumer spending” in fiscal Q1 ended May 1, retained its 2020 market share gains “and enjoyed benefits from government stimulus payments,” said CEO Bob Eddy on a quarterly call Thursday. Same-store sales grew 22% in the quarter on a two-year “stacked” basis, he said. Connected home is among categories “performing well” under the strategy, he said. “Digitally enabled sales” grew 31% in the quarter, and 380% on a two-year stacked basis, said Eddy. Members have downloaded the BJ’s app more than 5 million times, and about a third use it “regularly,” he said. Eddy was leading his first such call as CEO after the unexpected death April 8 of Lee Delaney (see 2104090009). Delaney’s “legacy remains ingrained in our culture and in how we will run our business,” said Eddy. The stock closed 5% lower Thursday at $46.16 after falling 9.4% earlier in the day when Chief Financial Officer Laura Felice said BJ's would refrain from giving "formal" 2021 "guidance." FY 2021 "remains difficult to forecast, given the number of uncertainties, most notably related to the timing and size of the shift of our consumer behavior away from food at home," as people return to dining out, she said. "We would expect comps for the remainder of the fiscal year to be in the negative 10% range," suggesting a ripple effect in same-store sales as consumers eat in restaurants.
Consumers “tapped the brakes slightly” in April, with retail spending down 1.3% sequentially after a 21.2% March surge spurred by government stimulus checks, reported the National Retail Federation Friday. Year-over-year growth was 28.8%, “reflecting the disparity between retailers that could remain open a year ago and those that were forced to shut down” due to COVID-19, said Chief Economist Jack Kleinhenz. Electronics and appliance store sales were up 1.2% month over month and 140% year on year. The slight dip from a strong March shows household finances “remain strong, and the economic recovery will likely continue to gain steam as we head into the summer months,” said CEO Matthew Shay. The Centers for Disease Control and Prevention’s updated guidance for vaccinated individuals “will help further open the economy and get more people back to work,” he said. Retailers will continue to follow state and local COVID-19-related laws and regulations governing store operations, Shay said, “and we urge lawmakers and government officials to prioritize policies that both encourage work and continued safety.”
Best Buy President-Chief Operating Officer Mike Mohan will qualify for severance for his "involuntary termination" when his role ends July 1 (see 2104300001), said a definitive proxy statement Wednesday for Best Buy's annual meeting to be held virtually June 16. His severance will be calculated from his base salary and "benefits elections" in place the day he departs, it said. Mohan would have qualified for $2.09 million in severance had he been fired at the Jan. 30 close of fiscal 2021, and he will be eligible for a "similar" payout when he leaves in two months, said the proxy. Best Buy's board agreed to pay Mohan $1 million in a single lump sum when he departs "in lieu of fiscal 2022 short-term and long-term incentive compensation," it said. Best Buy separation agreements bind terminated executives to open-ended confidentially, plus one-year noncompete and nonsolicitation clauses, said the proxy. Best Buy hasn't discussed the circumstances of Mohan's impending departure, only that his positions won't be filled and that his duties will be reassigned to other members of the executive leadership team.
April U.S. retail sales grew 23.3% year on year, and 10.8% vs. April 2019, said a Thursday Mastercard report, citing stimulus payments, warmer weather and broader reopening after COVID-19 pandemic shutdowns. Online sales grew 19.9% and 95.6% over the same time frames, it said. The retail sales recovery “has not been universal or consistent,” but general trends include a resurgence in restaurant spending, said Mastercard. April spending grew 119% and 5.7% vs. 2019, led by limited-service restaurants, but full-service eateries were down 13.5% vs. April 2020. Department stores had increased spending, up 203% from 2020 and 9.6% vs. 2019. Jewelry (255%) and lodging (319%) had some of the largest year-on-year gains, said the report. E-commerce sales remained elevated year on year, making up 21.6% of total retail spend, including 61.7% of apparel sales, it said. “People are excited to gather again, and they're refreshing their look for the occasion,” said analyst Steve Sadove.