Today in retail: CarMax inventory suffers
In today’s top retail news, CarMax says its inventory is way lower than the company would like due to a shortage of new vehicles and high prices for used vehicles, while Amazon’s expansion of its Halo platform accentuates the company’s focus on connected fitness. Additionally, cosmetics brand Lancôme has teamed up with ByondXR to create a virtual pop-up store in the UK, and Bed Bath & Beyond is seeing traffic take a hit as the delta variant remains a concern.
CarMax struggles to build inventory as vehicle shortage continues
Used car dealer chain CarMax said its inventory was still around 30% lower than expected and down 15% year over year, reducing vehicle availability but not having no impact on the company’s sales yet. Officially, CarMax reported net sales of $ 8 billion, up almost 49% from the second quarter of 2020, mainly due to higher selling prices. The company sold a total of 419,895 cars through its retail and wholesale channels, up nearly 20% year-over-year.
Amazon Halo expansion could disrupt the connected fitness space
Along with announcements about Alexa, home robots and other new devices earlier this week, Amazon has unofficially set its sights on Peloton, in a bid to take on the connected fitness giant with an expansion of its Halo platform. . The e-commerce giant has added Halo View, a new bracelet with display, as well as Halo Nutrition, a platform to help develop healthy eating habits, and Halo Fitness, a new service with hundreds of workout classes from studio quality similar to Apple Fitness +.
Lancôme launches a virtual pop-up store in the United Kingdom with ByondXR
The ByondXR virtual shopping platform teamed up with Lancôme on Thursday to create a virtual pop-up store in the UK using extended reality technology, as part of Lancôme’s 2021 global campaign to promote its skin serum Great with new consumers. Lancôme claims to have seen a 350% increase in customer engagement time in its virtual stores since their first launch in February.
Bathing in bed and beyond traffic in the second trimester
Bed Bath & Beyond reported a 26% decline in net sales in the second quarter of fiscal 2021 ending August 28, compared to the same three-month period in 2020. Comparable sales were down 1% from compared to the previous year, mainly due to slower than expected traffic in August in stores and digital platforms. The Bed Bath & Beyond brand fell 4% in the second quarter, while buybuy BABY grew by a high percentage among teens.
Social commerce is the new puzzle of retail inventory
The rise of social commerce presents challenges for brands, according to Yuval Ben-Itzhak, president and chief strategy officer of Amplifi. One of the most common problems, he said, is tracking inventory, prices and shipping in the myriad of stores and social markets where products are sold.