Wednesday 18 November 2020
Get your morning feed sent straight to your inbox every Monday through Friday by 6:30 AM ET. Subscription
We are convinced that most behavioral change will continue beyond the epidemic.
Investors took two major pieces of retail data on Tuesday morning.
Early Tuesday, Walmart (WMT) It released the third quarter results.
This report explained how Resilient consumers remained During the fall and also why the epidemic-related changes in shopping habits continue.
The company announced that US corporate sales rose 6.4% during the third quarter, with most of the gains coming from e-commerce. Walmart said in its quarterly report that e-commerce – where revenue grew 79% in the third quarter – was responsible for 5.7% of the increase. Both online sales and online orders for in-store pickups are included in Walmart’s e-commerce bucket.
“Changes in customer behavior have accelerated the shift to e-commerce and digital,” Walmart CEO Doug MacMillon said at the company’s conference call.
“We have been well positioned to catch and ride these waves in light of our past work and investments. Our e-commerce and multi-channel penetration continues to rise, accelerating trends by 2 to 3 years in some cases. We are convinced that most behavioral change will continue beyond Epidemic. “
A big part of this new behavior is standardizing trips, whether it’s to Walmart or not. Average ticket volumes at Walmart increased 24% in the quarter while the number of transactions decreased 14%.
Thus the rise of online and mixed orders reinforces the company’s top streak and creates momentum for more investment in keeping these types of behaviors in place. Macmillon says the company is convinced that many of these new shopping habits will persist after the pandemic. But it is also in the company’s best interest to make the habit as attractive as possible to customers.
“When a customer is shopping [in-store] And online, they’re spending about twice that amount, and they’re spending more in stores, ”MacMillon said on the call.“ These are pre-pandemic statistics, we’re not updating them at the moment. But it is important to remember one time [customers are] Participate in the digital relationship while they are shopping [with] In total like that, the value of the relationship with the customers increases. “
The new company Walmart + program You aim to get Prime service from Amazon and it’s a natural outgrowth of these types of consumer trends. The pandemic has also created the conditions that enable customers to try new habits faster – and collectively – entire retail sectors have been promoting in the better part of the past decade.
So, while the final direction of the modern form of retail has been apparent for some time, no retailer has Walmart or Target’s resources (TGT(Or amazon)AMZNYou will let this moment pass without helping clients permanently incorporate these new habits into their routines.
The latest government retail sales data published on Tuesday also shows the reason.
The October report on retail sales Disappointed, with online shopping Only true standout. In a world where safety and value are primary concerns, meeting your customers online is the only permanent way to stay in a growing portion of the American consumer budget.
“Consumers closed their portfolios as the first chills fell, with retail sales barely rising in October,” said James Watson, chief US economist at Oxford Economics.
“This reading is one of the first signs that spending will struggle to cope with declining income support and the explosive rise in virus cases across the United States.”
by Miles abroad, Reporter and broadcaster Yahoo Finance Live. Follow him on Embed a Tweet
What are you watching today
7:00 a.m. ET: MBA mortgage applications, Week End November 13 (-0.5% over the previous week)
8:30 a.m. ET: Building permits, October (1.567 million expected, 1.545 million in September)
8:30 a.m. ET: Housing starts, October (1.460 million expected, 1.415 million in September)
Before putting it on the market
6:00 a.m. ET: Louise (Low) It is expected to post adjusted earnings of $ 2.00 per share with revenues of $ 21.23 billion.
6:30 a.m. ET: Targeting (TGT) It is expected to post adjusted earnings of $ 1.60 per share on revenue of $ 20.72 billion.
7:50 am ET: Cos TJX. (TJX) It is expected to post adjusted earnings of 40 cents per share on revenue of $ 9.37 billion
Beyond the market
4:05 PM ET: Sonos (I am) It is expected to post adjusted earnings of 15 cents per share on revenue of $ 298.71 million
4:15 PM ET: L Brands (pound) It is expected to post adjusted earnings of 11 cents per share on revenue of $ 2.67 billion
4:20 PM ET: Nvidia (NVDA) It is expected to post adjusted earnings of $ 2.58 per share on revenue of $ 4.42 billion
Stocks are running low as warning about infection rates and restrictions outweigh hopes for a vaccine [Yahoo Finance UK]
NIO earnings: Chinese electric car maker outperformed revenue in the third quarter [Yahoo Finance]
Judy Shelton’s nomination to the Fed has sunk over the COVID virus quarantine, major defections of the Republican Party [Yahoo Finance]
POWELL: The Fed has committed to losing money, dropping interest rates “ as long as it takes ” as COVID-19 rises [Yahoo Finance]
Yahoo Financial Achievements
Bill Gates: Anti-mask sentiment in the United States is “worse” than in other countries
Washington aims to pass the Security Act 2.0 along with more changes to the pension system
New Miami Marlins GM Kim Ng Business Plan: Winning, Changing the Franchise’s Reputation
Follow Yahoo Finance at TwitterAnd the The social networking site FacebookAnd the InstagramAnd the FlipboardAnd the Smart NewsAnd the LinkedinAnd the YoutubeAnd and Reddit.
Look for live stock market prices and the latest financial and trading news
For lessons and information on investing and stock trading, check out Dinner
“Writer. Twitter specialist. Passionate social media ninja. Lifelong beer buff. Bacon fanatic. Wannabe web scholar. Devoted coffee maven.”
You may also like
World Cup 2022: New Zealand won the qualifiers by knockout
Catalog – Science – Meteorite hits New Zealand
Britain’s King Charles will not go to France because of the protests
Index – Abroad – The Hungarian government is angry at the White House for treating Viktor Orbán like an aeronaut.
Index – Offshore – Nearly a thousand earthquakes have rocked New Zealand’s North Island in just a few days