e-Commerce & more I 17th to 23rd Aug- #62
195%, +135% ,+97%, ....%
What are these numbers Nabil???
Target, Lowe's, Walmart Ecommerce growth for Q2 2020!! The new normal of exponential online sales growth continues (expect this at least till end of 2020 in my opinion!).
Other news of the week included… Telecom Argentina launch ecommerce platform, Yamato Japan partners with Doddle on PUDO solution, UK John Lewis goes into “Furniture As A Service”, Target & Lowe's blows quarter expectations, DoorDash goes into grocery delivery, Wee Grocery raises $35M for Asian Online Grocery Platform
- Telecom Argentina launches e-commerce platform
On June 29th this year, Peru Credicorp (a major financial institution) announced it was entering the space of ecommerce platforms, now it’s Argentinian Telecommunication company Telecom which is aiming to enter the space of ecommerce platforms…
Many ecommerce giants have expanded significantly their offering from payment, streaming, gaming to physical retail and everything in the middle….Now, time to fight back from major players in other industries wishing to play in the game of global online commerce, who will win long term?
2. Yamato to offer a “Completely new collection experience to Japanese customers”
Anywhere, Anytime, Anyone, Anything is becoming the norm of online commerce. To achieve this omnichannel vision of selling, shipping, returning across multiple channels and options, companies have to build networks of solutions across their entire digital ecosystem & supply chains.
In recent years, we have seen the increase of options to get your online orders shipped to you, Pick Up & Drop off (PUDO) locations are definitely a key solutions in order to optimize logistics and enhance consumer experience. This partnership between Doodle & Yamato shows the importance of this kind of solutions for logistics companies in order to serve consumers rising expectations.
3. UK John Lewis goes into Furniture As A Service
Would you rent your sofa? Maybe one day….
“The next generation of customers” loves Subscription models!! We have seen this business model gaining a lot of traction in the last years. From companies like Rent the Runway to Fernish, the new generations of customers doesn’t necessarily want to own cars, houses, clothes or whatever…. With COVID19 creating significant shift & impact into consumer behavior and wallets, many people staying at home are looking at improving their home with limited budgets so the launch of John Lewis is coming at a perfect time.
4. Target sets sales record in Q2 as same-day services grow 273%
I often get asked who is doing a great job at Omnichannel Commerce, my answer for the last 2 years has always been Target!! I’m not surprised on their amazing quarterly results, I just hope I would have invested more into their stock (TGT) which is now at record high. Sales grew 24.3% in Q2, profit up 80.3%, digital sales growing 195%, Same-day services like Drive Up, Order Pick Up and Shipt also grew by 273%.
Target have been investing and merging the digital & physical experience the best and we can expect these amazing results to continue in Q3 & Q4 so it’s not too late to invest!
5. Lowe’s reports blowout quarter with 30% surge in revenue
Lowe’s online sales soared 135% as the pandemic pushed more customers to shop online.
Home improvement has been a clear winner of the “stay at home” economy! Lowes results clearly shows that the growth of online sales is not only on traditional ecommerce categories like fashion & electronics but it’s touching more and more categories of products.
6. DoorDash expands with on-demand grocery delivery
DoorDash began delivering from a wide range of convenience stores earlier this year! A first step to leverage their restaurant business into a new areas boosted by COVID: Delivery of Grocery. They are now going all in and offering grocery purchase and delivery for partners including Smart & Final, Meijer and Fresh Thyme. The war of for demand delivery dominance is growing at fast pace.
Doordash new service will compete directly with Instacart, one of the major difference in strategy with Instacart will be the “Embedded shoppers” concept which consist of specialized shoppers for the shopping in each store and then groceries delivered by DoorDash’s Dashers. This could improve significantly the picking cost & time in store which is one of the huge area of improvement for a model like Instacart.
7. Start Up of the week: Weee Raises $35M
Asian Grocer Weee raise $35M as COVID 19 boosted online grocery sales across the globe. The California-based startup sells Asian groceries like fresh kimchi and Japanese desserts to all major US Cities. Weee recorded +700% revenue growth in June, either people are eating a lot more Kimchi to protect themselves from Covid or they got a lot more new customers!
Enjoy, Cheers
Nabil