Latest news with #consumer
Forbes
3 days ago
- Business
- Forbes
Is Target Blaming Boycotts For Its Slump?
Is Target Blaming Boycotts For Its Slump? getty The country's seventh largest retailer has been the bullseye for grassroots consumer boycotts, but the real cause of its woes is in the c-suite. For a moment there, at the onset of the COVID-19 quarantine, Target seemed to be riding high on a wave of innovation that broke out when retailers of every stripe and category had to scramble to save their businesses from a global catastrophe. As we reported here in 2021, Target managed a rapid roll-out of an experimental click-and-curbside-collect program while simultaneously building out a credible e-commerce platform to drive sales. The gambit was a big success. Target's e-commerce business boomed, growing faster than Amazon and Walmart. The company won kudos for touches such as placing well-staffed pickup counters directly in front of the main entrance, ensuring crisp customer service. Shoppers were spared from standing in long lines and were more inclined to park and take a stroll through the store before leaving. What a difference a pandemic makes. Over the past two years, Target has found itself on fumbling defense. At this time a year ago, the company first started reporting that a long stretch of revenue growth had run out of gas because (according to Target execs) its customer base had been spending less on nesting (think throw pillows and furnishings) and more on travel and entertainment. For its fiscal year that ended on January 31, 2024, the company said revenue retreated by 1.6% and comparable store sales sagged by nearly 4%. In sharp contrast, both Walmart and Costco—with overlapping customer bases—posted annual revenue growth of more than 6%. What went wrong? A series of clear leadership missteps? Among the explanations was a boycott over an in-store Pride Month promotion in 2023 that backfired spectacularly. Also in 2023, Target closed nine stores in urban areas citing theft and violence, but an in-depth CNBC investigation claimed it found that crime rates were actually lower at the closed stores than at other nearby stores that remained open. The difference: stores that stayed open were in higher-income neighborhoods. According to CNBC, the findings, 'cast doubt on Target's explanation for the store closures and raise questions about whether the company's announcement was designed to advance its legislative agenda and obscure poor financial performance.' Target ran into yet another publicity buzzsaw last year during Black History Month when several historical figures such as Booker T. Washington were misidentified on a collection of refrigerator magnets. And a customer filed a class action lawsuit claiming the company 'surreptitiously' operated an anti-theft surveillance system that violated Illinois' Biometric Information Privacy Act. In the head-to-head competition with rivals, Target has seemed to be running a me-too campaign. It was late in developing a robust line of private label merchandise, far behind Walmart and Costco. And the company ballyhooed a long-term plan to add 300 mostly full-sized locations just as its rivals were planning smaller stores in neighborhood shopping centers. Finally, four days after the new administration took office in November, Target dismantled its DEI efforts—in which it had invested a lot of brand capital—which unleashed a fresh wave of scorn. The latest news is more bleakness for the nation's seventh-largest retailer. Since January, foot traffic has been steadily declining. The company's management has been mostly silent, according to a recent report on Forbes, and analysts describe the company's woes as self-inflicted' and its leadership as 'drifting.' Given the current economic cycle, with so much uncertainty and wariness among consumers, it's hard to imagine what Target could do to rescue itself from itself. Before the pandemic there were rumors that Amazon had its eye on acquiring the company as a quick way to create a bricks-and-mortar presence that could compete with Walmart, Costco, and others. Nothing became of the Amazon rumor, and it is harder to imagine today than it might have been in 2019. But it will probably take a shake-up of equal magnitude—a leveraged buyout and a clean c-suite slate, perhaps—and a major rebranding to reverse the slide and possibly resurrect Target's once-coveted cachet as the classy discount store. Investors might consider, what has been the 5-year return on invested shares? As of today, negative twenty-one percent (-21%) roughly vs S&P at plus ninety-four percent (+94%).
Entrepreneur
3 days ago
- Business
- Entrepreneur
Why Conversational Commerce is the Future of Shopping
Voice and chat technologies driven by AI are revolutionizing the shopping experience, making it more seamless and personalized. Opinions expressed by Entrepreneur contributors are their own. In the days before the internet, consumers had no real way of interacting with brands, but now all of that has changed. Conversational commerce is taking over and defining the entire commerce world — powered by voice assistants, chatbots and AI-driven messaging platforms — and making shopping more intuitive, personalized, frictionless… shaping a world of conscious consumers that are beginning to expect even more. As voice search and AI chat technologies mature, businesses that fail to adapt risk falling behind. The question is no longer if brands should integrate conversational commerce, but how to do it effectively. Conversational interfaces are becoming indispensable because they enhance customer experiences, and they also optimise brand strategies. Related: How Online Retailers Can Recreate the In-Store Experience and Drive Sales The rise of conversational commerce From Amazon's Alexa to WhatsApp chatbots, these tools are becoming more and more common — and for good reason. People want convenience over anything, and consumers want products that make their lives easier. For example, having a smart speaker that doesn't just play you songs or give you weather reports, but actually lets you order a pizza? Revolutionary. According to predictions, over 50% of U.S. households are expected to own a smart speaker by 2025, according to eMarketer. Chatbots are projected to save businesses $8 billion annually by 2024, as reported by Juniper Research. Additionally, 40% of consumers now use voice search daily, per PwC. Conversational commerce is AI-mediated interactions between brands and consumers through voice or text, enabling transactions, support and discovery in a natural, dialogue-based format, which means that consumers essentially have an AI assistant living in their homes when they purchase smart devices. Instead of having to navigate through complicated steps, consumers will be able to get what they need (or want) through verbal instruction and texting. Related: How to Build an AI-Driven Company Culture — Without Overwhelming Employees How conversational commerce transforms the customer journey Traditional ecommerce requires users to search, filter and compare products by themselves — a process that often leads to decision fatigue and also wastes time. AI-driven conversational interfaces enable natural-language product searches, such as "Show me running shoes under $100 with good arch support." Additionally, they provide instant answers to frequently asked questions, like "What's the return policy for this dress?" These interfaces also simplify discovery by offering personalized recommendations based on past behavior. For example, a user might hear, "You liked espresso — try this new dark roast blend?" or perhaps even dipping into their calendar and finding out that they have an upcoming event and informing consumers of an upcoming sale at particular brand outlets that they have patronized prior. Seamless transactions via voice and chat Voice-enabled purchasing is no longer a novelty; it's a necessity. Amazon's Alexa alone has facilitated billions in voice commerce, while WhatsApp and Facebook Messenger enable checkout directly within chat. Key advantages include hands-free purchasing, such as reordering groceries via Google Assistant. Domino's Pizza, for instance, allows customers to order via Alexa, Google Assistant or even Twitter DMs — reducing cart abandonment and boosting repeat sales. This level of convenience is setting new standards for customer expectations. 24/7 customer support and retention Conversational AI doesn't just drive sales, it also enhances post-purchase experiences. Chatbots resolve approximately 80% of routine customer service queries, reducing wait times and operational costs. Examples include instant order tracking, where a user can ask, "Where's my package?" and receive real-time updates. Being able to receive desired information at the drop of a hat increases user satisfaction. Think about it, would you rather call a postal service's hotline and wait fifteen minutes to get an update about your parcel, or have your smart speaker tell you in a split second? Blend automation with human handoffs Not every query should be automated. Use sentiment analysis to detect frustration and escalate to live agents whenever necessary. For instance, if a user expresses dissatisfaction, the bot can respond, "Allow me to connect you to a specialist" or "Would you like to speak with an agent?" which makes the customer feel both heard and valued. Striking a balance between automation and human touch is crucial for maintaining trust and satisfaction. While chatbots handle routine inquiries, complex or emotionally charged issues should always be handled by another human being. Leverage data and omnichannel consistency A user might start a conversation on Facebook Messenger, then switch to voice for quicker resolution. Ensure seamless cross-platform continuity so customers don't have to repeat themselves, and keeping a database on what the customer's history is also key to enhancing their satisfaction, which means that integrating backend systems to maintain context across all touchpoints is equally important. Use past interactions to tailor responses. If you have been to a restaurant multiple times, it's natural for the server to know your regular order. But wouldn't it be great for AI to adopt the same strategy? Your coffee shop's voice assistant might be able to recognize facial features much more efficiently and personalize each order. Personalization extends beyond product recommendations. It includes remembering payment methods, delivery addresses, and even preferred communication styles. The more tailored the experience, the more likely users are to return. In fact, being able to analyze conversation logs to identify drop-off points, such as where users abandon carts mid-chat, can also aid in boosting completion rates. Continuous conversation is key to staying ahead in the rapidly evolving landscape of conversational commerce, and customers are much more likely to proceed if they realize they don't have to start from zero. Related: How Conversational AI Bridges the Gap for Retail Customers Final thoughts Conversational commerce isn't just a trend — it's the future of customer engagement. Brands that integrate voice and chat seamlessly into the buyer journey will gain loyalty, efficiency and revenue growth. The key lies in combining cutting-edge AI without forgetting about EQ, which will be able to help every interaction feel intuitive and helpful. The shift from voice to value is here. Is your brand ready to join the conversation?
Reuters
3 days ago
- Business
- Reuters
Kohl's sticks to annual targets after smaller-than-expected quarterly loss
May 29 (Reuters) - Kohl's (KSS.N), opens new tab retained its annual forecasts after reporting better-than-expected results for the first quarter on Thursday, as the U.S. department store chain bets on its turnaround efforts against the background of tariff-induced choppy demand. The company's shares were up 6% in premarket trading. The stock has fallen about 43% so far this year. Kohl's, like peer Macy's (M.N), opens new tab, is looking to trim underperforming stores in its portfolio and focus on investing in outlets in prime locations to fend off the impact of intense competition from off-price and online retailers. The company has also benefited from expanding its partnership with Sephora as demand for beauty and skincare products remains resilient. Kohl's will have a Sephora at more than 1,100 U.S. stores by the end of the year, it said in March. The company maintained its annual sales target of a 5% to 7% fall, and earnings per share expectation of 10 cents to 60 cents. Analysts had expected Kohl's to cut or withdraw its forecasts as well at a time when tariffs have forced several companies in the retail space to sound warnings on consumer demand this year, and lower their financial targets. The company, which fired its CEO earlier this month for a personal relationship with a vendor, reported a loss per share of 13 cents for the first quarter, compared with its preliminary expectations of a loss between 20 cents and 24 cents. Analysts had expected a loss of 26 cents, according to data compiled by LSEG. Kohl's also reported a 3.9% fall in quarterly comparable sales, compared with its preliminary expectation of a 4% to 4.3% decline shared earlier this month.
Daily Mail
4 days ago
- Business
- Daily Mail
Pets at Home's profits edge up as demand for vet services surges
Pets at Home saw underlying pre-tax profits across its veterinary arm rise by 23.3 per cent year-on-year to £75.9million, preliminary results show. But, across the chain's retail arm, underlying pre-tax profits slipped 16.6 per cent year-on-year to £72.9million. Revenue from vet services swelled by 13 per cent year-on-year, to £655.1million, comprising a third of total revenue at the business. Revenue from retail sales fell 1.8 per cent year-on-year to £1.3billion, Pets at Home said. Pets at Home has struggled with sluggish retail sales for the last few years, which it has previously attributed to weak footfall and a 'challenging UK consumer backdrop'. Across all its operations, the company reported an underlying pre-tax profit of £133million for the year ending 27 March, up from £132million the previous year. On retail sales, the group said the business was 'impacted by a period of subdued growth in the pet sector due to a soft UK consumer backdrop throughout FY25, deflation and normalising levels of new pet ownership.' Overall statutory revenue edged up 0.1 per cent to £1.48billion in the year to 27 March. The group said it had 8.2million members signed up to its loyalty scheme by the end of the period. On vet practice expansion, the group said: 'In FY26 we plan to open at least 10 new JV practices alongside 15 extensions.' Pets at Home increased its dividend for shareholders by 1.6 per cent year-on-year, from 12.8p to 13p. Pets at Home shares fell 0.38 per cent or 1.00p to 261.40p on Wednesday, having fallen over 7 per cent in the last year. Chief executive Lyssa McGowan, said: 'The past two years have seen a profound transformation at Pets at Home. 'We have moved from a business with a strong presence in pet retail and vets, to a true pet care platform.' She added: 'In FY25, we also saw another outstanding year of growth in our vets business, fuelled by the commitment and expertise of our partners, supported by our best-in-class scale services, platform benefits and industry knowhow. 'Our practices significantly outperformed a more subdued industry backdrop and delivered this progress despite the ongoing uncertainty of the CMA investigation – further demonstration of the power of our unique joint venture model.' The Competition and Markets Authority has been investigating the veterinary sector and is probing whether a lack of competition in the industry has contributed to surging prices. Across businesses in the sector, prices for treatments grew by 60 per cent between 2015 and 2023, compared with inflation of 35 per cent for other general services, according to CMA research. The CMA is pushing for more transparency over pricing as part of the overhaul due to be finalised in the coming months. In addition to the price caps, the CMA is examining whether a ban on bonuses linked to offering specific treatments would be viable. Adam Vettese, a market analyst at eToro, said: 'Pets at Home are putting their best paw forward with the veterinary side of the business, which is continuing to show robust growth. 'This has helped offset weaker retail performance and brought overall results in line with market expectations. Pre-tax profit and earnings per share rose, reflecting operational resilience despite a challenging macro environment. 'The board's confidence is evident in the 1.6 per cent dividend hike to 13.0p, signalling optimism for long-term growth. 'However, headwinds persist. Elevated costs, softer retail footfall, and the ongoing CMA probe into veterinary pricing practices continue to cloud the outlook.'
Motor Trend
5 days ago
- Automotive
- Motor Trend
The 2026 Kia EV9 Holds Line on Pricing, Some Models Even See Reductions
So far, 2025 has been clouded by consumer (and automaker) angst over the effects of on-again, off-again tariffs. And even before this year, new-car prices had steeply risen following pandemic-era supply shocks and factory pauses and so on, so against that backdrop, it's surprising when news of a new car, truck, or SUV holds the line on pricing year-over-year or even sees a price cut. Bust out the champagne for the 2026 Kia EV9, which sees its prices slashed by up to $2,000 across its lineup. 0:00 / 0:00 so when news of a new car, truck or SUV cost the same or even less than the previous model year, it's celebrated news. By slashing its price by up to $2,000, the 2026 Kia EV9 is defiantly showing the way as both an all-electric, three-row SUV and an imported brand with a vehicle assembled in the US. Hopping into a new 2026 Kia EV9 still demands just less than $60,000, with the entry-level 2026 EV9 carrying the same $56,395 price tag as the 2025 model. This is largely due to the rear-drive, single-motor 2026 Light Standard Range battery pack—and most of the rest of the EV9—carrying over unchanged. Even so, the Light with the bigger Long Range battery pack is $2,000 cheaper than before ($59,395 vs. $61,395 for 2025) but gains one extra mile in range, going from 304 to 305 miles courtesy of its 99.8-kWh capacity. The dual-motor, all-wheel-drive EV9 Wind trim level now starts at $65,395, staying the same as 2025, but gains three miles of range (305 miles for 2026). All AWD EV9s will also gain Terrain Mode—with mud, sand, and snow profiles—that replaces the simple '4WD' mode from 2025. The EV9 Land AWD gains the same three miles of range but will be $1,000 cheaper than for 2025 ($70,395 vs. $71,395). The 2026 Kia EV9 Land AWD also gets a new Nightfall Edition option, a darkened appearance package at no extra cost in either the six- or seven-seat configuration. The Nightfall Edition adds unique front and rear bumpers along with a new and exclusive Roadrider Brown exterior color and 20-inch gloss black wheels and gloss black badging, trim, and other exterior elements. It also comes with unique seat stitching and design elements inside like exclusive gloss black side sills. 2026 Kia EV9 Full Lineup Driving Range Finally, the 2026 Kia EV9 GT-Line will not only be $2,000 cheaper but gains 10 miles of range (280 miles vs. 270 miles for the 2025 version). It also gets two new two-tone exterior color options (Glacial White Pearl or Wolf Gray, with both wearing an Ebony Black roof). What we're all still waiting for is the high-performance EV9 GT model. We've seen the details on this hyper family hauler that promises power north of 500 hp from all four wheels, but we're still waiting to see what its price will be. Once we have that information, we'll update this story. 2026 Kia EV9 Full Lineup Pricing
