Buy Now, Cry Later
Consumers have increasingly leaned into BNPL services to avoid the high interest rates on credit cards.
After a better-than-expected holiday season – in part supported by credit card purchases and BNPL, the bills are now coming due.
That could force a slowdown in spending.
FINANCE
Primark (UK) said sales for the 16 weeks to January 6 rose 7.3% to £3.4 billion ($4.3 billion). The retailer said sales were helped as consumers opted to buy its slightly pricier The Edit and Rita Ora ranges.
Superdry (UK) said adjusted pre-tax losses rose 86% to £25.3 million ($32 million) for the six months to October 28, up from a £13.6 million ($16 million) loss last year. Revenues fell 23% to £219.8 million ($280 million) during the half year.
LVMH (France) revenue rose by 10% to €23.95 billion ($26 billion) in the fourth quarter of 2023, above consensus forecasts of 8.6%.
Dr Martens (UK) said revenue fell 18% in its third quarter to £274 million ($348 million). The decline was attributed to weak performance in the US, where sales fell 31%.
Birkenstock (Germany) said revenue rose 20% to €1.492 billion ($1.62 billion) for the year ended September 30, 2023. Revenue growth is attributed to a 6% rise in the number of units sold and a 14% increase in the average selling price (ASP). EBITDA increased by 11% to €483 million ($525 million). However, net profit declined to €75 million ($81 million) from €187 million.
Amer Sports (Finland) is planning an IPO that could value the company at as much as about $8.7 billion, according to data compiled by Bloomberg.
Macy’s (USA) rejected a $5.8 billion offer to take it private, setting the stage for a potential hostile takeover.
PODCAST
Building Customer Connection in a Crowded Market
Most B2B businesses see marketing as a waste of money.
However in a challenging market, companies selling products and services to other businesses need a lot more to stand out in the market if they hope to survive let alone grow their business.
The question facing many brands is how exactly can they promote a brand in a way that resonates with potential customers and helps to grow sales.
In this podcast Matt Bell, a specialist in B2B marketing, talks about practical ways that companies get more visibility – and sales.
You’ll Learn:
- How B2B companies can maximize their impact when they have limited resources.
- How companies can leverage thought leadership and brand content.
- Best practices for optimizing the buying experience for digital-first B2B customers.
MARKET INSIGHTS
Is Instant Retail the Next E-commerce Angst?
Logistics are one of the biggest costs for e-commerce – particularly the demand for faster deliveries.
The heat has now been turned up with the advent of ‘instant retail’ – where online orders are delivered in a matter of hours, not days.
Originally focused on daily essentials, now other categories are trying to figure out how to make this delivery model work, figuring it will give them a competitive advantage.
The risk is that it will pile on more costs – and more complexity – at a time when there’s even more pressure to drive profits. Read more
MARKETS
The US economy continues to confound analysts with US inflation getting close to target despite strong consumer growth. Spending is still being fuelled by savings and credit and surely can’t continue running at these sorts of growth rates. But for now the consumer refuses to lie down. Fed rate cuts are coming, but March still looks too early, per ING Bank.
Spain’s unemployment rate dropped to 11.76% in the fourth quarter of 2023 from 11.84% in the previous quarter, reflecting a resilient labor market amid the economic slowdown, per the National Statistics Institute.
The prospects of interest rate cuts by the Bank of England and of further falls in inflation over the coming year have lifted UK consumer confidence to its highest point in two years, per The Times.
Levi’s (USA) plans to cut 10-15% of its corporate workforce as part of a cost-cutting plan. About 500-750 jobs will be impacted.
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