HOME DEPOT SALES GREW 4.2% in Q1. This was lower than analysts’ expectations, primarily due to gardening supply sales dropping in March and April due to cool weather. However, the other departments for the retailer performed ahead of expectations and showed high growth over last year.
Online orders were 6.7% of Home Depot’s total sales last year and 45% of online orders were picked up in stores. In an effort to meet these customer delivery demands, bring down transportation costs and improve inventory management, the retailer announced a 5-year, $1.2 billion plan to add 170 distribution centers across the US for same day delivery and direct ship to customers. This will enable them to reach 90% of the US in one day or faster. Home Depot also plans to build 7 e-commerce centers and the use of a greater fleet of small vans and trucks to deliver to local professional customers and contractors.
Accelerated Analytics customers who utilize their Power Pack of POS reporting tools for Home Depot sales and inventory reporting continue to grow in excess of the retailer’s overall sales growth numbers. In Q1 2018, Accelerated Analytics customers grew 5.51% in sales over Q1 2017. Utilizing a strong set of exceptions and inventory reports help these vendors stay on top of Home Depot initiatives and drive overall and same-store growth consistently.
L’Oreal, who utilizes Accelerated Analytics for its retailer point of sale data collection and harmonization for the majority of its US Luxe division retailers, revealed its 2017 results this week. Chairman and CEO, Jean-Paul Agon, spoke at a financial analysts’ meeting with specific results. In the final quarter of the fiscal 2017 year, sales were up 4.1% and 5.5% in same store comps versus 2016. Their full 2017 results were up 0.7% and 4.8% in comps. While he acknowledged, “The beauty market grew at a healthy pace,” the “making of it turned out to be somewhat different from our expectations.” The luxury color cosmetics and skin care both accelerated the sales growth. Mass-market beauty grew less than in 2016. China and travel retail were the strongest sectors and North America grew, yet not as strong as 2016.
Genesco, a Nashville-based specialty retailer and footwear, head wear, sports apparel and accessories vendor, uses Accelerated Analytics for POS reporting for many of its key US retailer accounts. The company announced this week its intention to focus heavier on its footwear business, and is exploring the sale of its Lids Sports Group division. They stated its footwear business is “the optimal platform to deliver enhanced shareholder value over the long term.” They continued to state that its sales “would generate capital that the company can deploy productively to further enhance shareholder value.” A committee and capital firm have been engaged to explore this possibility that is currently in the infancy stages.
Sources: Chainstoreage.com, WWD.com