Consumers and retailers alike have been concerned for some time about the impact of an economic recession and tariffs on foreign goods. "We saw the lowest teen spending levels in eight years," Erinn Murphy, Piper Jaffray senior research analyst, said in a statement. Amazon is the clear favorite for Gen Z when it comes to e-commerce, with 52% of teens citing it as the No. 1 preferred shopping website, followed by Nike (4%) and American Eagle (3%). Nike held the top spot in apparel (23%) and footwear (42%), the survey found.
It looks like every demo is trying to save money. Retaildive.com, quoting a report from Coresight Research, reports that private label sales are growing four times faster than sales for national brands, from 2.2% in 2015 to 5.8% in 2018. Target and Kroger recently stepped up their game in private label, at a time when small grocers like Aldi and Lidl, as well as Amazon, have all appealed to U.S. consumers with their own brands. Costco's 'Kirkland' brand remains the titan in the space with sales exceeding $39 billion last year, reflecting a higher than 10% growth rate, Coresight said.
The clampdown continues on legal habits. Starting Jan. 1, 2020, Midwest supermarket chain Schnucks will no longer sell tobacco products. As an incentive to help customers stop smoking, Schnucks is offering double Schnucks Rewards points starting Oct. 15 on all of its over-the-counter smoking cessation products. Kroger announced earlier this week they will no longer sell electronic nicotine delivery products, known as e-cigarettes, at its stores and gas stations in response to the increasing concerns about the potential negative health consequences of using them.
Target will team with TRU Kids, the new owner of Toys R Us, to manage the relaunch of the brand’s online retail arm, CNBC reports. The site will roll out as ToysRUs.com, and customers who click to buy will be redirected to Target, which will handle sales and order fulfillment.
Domino’s Pizza reported its same-store sales were up 2.4% in the third quarter, below the 2.6% gain expected by analysts, Yahoo Finance reports. Earnings per share came in two cents below Wall Street’s expectations.
McDonald’s is putting the limited-time McRib sandwich back on the menu at more than 10,000 U.S. restaurants, the company said. The cult favorite first launched in 1981 and makes periodic returns.
Best Buy has opened its 13th U.S. outlet store in Houston to give shoppers the option of buying TVs, appliances and gadgets that other customers have returned, the Houston Chronicle reports. Returns are on the rise in the age of e-commerce, and the five-year-old discount retail concept gives Best Buy a way to make money on the returned products.