After enduring pressure from an investor and ousting CEO Jonathan Johnson, Beyond, the former Overstock now operating online as bedbathandbeyond.com, announced Camping World chief Marcus Lemonis will join Allison Abraham as co-chairs of the company board of directors.

In response to the move, Beyond stock rallied from $19.06 a share on November 30 to peak at $19.40 by mid-morning then falling back to $18.95 by noon. Beyond stock, then still designated Overstock before a recent name change, hit a high for the year of $37.86 on August 2, according to Yahoo Finance. On August 1, the operation transitioned from overstock.com to bedbathandbeyond.com online in the United States after doing so earlier in Canada.

Lemonis was the choice of hedge fund JAT Capital Management, which holds a 9.6% stake in the company, to run Overstock, a preference it expressed to the board in a letter on November 2. However, Lemonis, who runs the outdoor recreational company Camping World and who for several seasons hosted the CNBC show “The Profit,” told CNBC in an interview that he wasn’t interested in being CEO and had joined the  Overstock board in October expecting to be named executive chairman.

Abraham became chair of Overstock in 2017 after having served on the board since 2002, as cited in the Beyond investor relations site.

Johnson steered Overstock through the acquisition of Bed Bath & Beyond’s intellectual property rights, which occurred in June, and the August 1 renaming of the overstock.com site in the United States to bedbathandbeyond.com, which occurred earlier in Canada. In a company conference call, Johnson laid out a vision for Beyond which included adding more retail websites including a closeout specialty business that would operate similarly to the original overstock.com. In recent years, Overstock reoriented itself from a closeout business to one offering first-line goods, then shifted from being a general merchandise to a home specialist retailer early this year. He departed the company on the day, November 6, when the corporate identity flipped from Overstock to Beyond. Not long before, JAT sent a letter to the company board asking it to revamp management and appoint Lemonis to an elevated position, preferably as executive chairman.

“I am intensely focused on working with the management team to drive financial results, reduce operating costs and review all performing and non-performing assets,” Lemonis stated in announcing the change in board structure. “While the team has begun taking decisive actions to restructure the company for a better future, I am eager for what lies ahead in the months to come.”

Abraham noted, “Marcus brings a wealth of experience as a public company chairman and CEO, with powerful operating knowledge in retail, branding and customer engagement. Both of us, along with the rest of the board and management team, are unified in our overarching goals of driving enhanced value for shareholders.”

Adobe reported the period between Thanksgiving and Cyber Monday, characterized as Cyber Week by the business services firm, generated $38 billion overall, up 7.8% year over year.

Cyber Monday, meanwhile, saw consumers spend a total of $12.4 billion, up 9.6% year over year and surpassing Adobe’s initial projection.

In the peak hour on Cyber Monday, 10 p.m. to 11 p.m. Eastern time, consumers spent $15.7 million every minute, according to Adobe. Cyber Monday was the biggest online shopping day of all time, with many consumers grabbing major discounts in categories such as electronics, peaking at 31% off list price; toys, 27% off list price; apparel, 23% off list price; furniture 21% off list price; and appliances, 18% off list price.

Cyber Monday online sales for apparel increased by 189% compared to an average day in October 2023. In other categories, appliances grew by 166%, toys by 140%, furniture by 129%, electronics by 103%, jewelry by 99% and sporting goods by 95%. Top sellers on Cyber Monday included skincare gift sets, small kitchen appliances, televisions, smart watches, activity trackers and Bluetooth headphones, in addition to various toy and electronic items, according to Adobe.

Adobe reported Cyber Week was bolstered by record spending online during Thanksgiving, $5.6 billion, up 5.5% from the 2022 period; Black Friday, $9.8 billion, up 7.5%; and over the weekend, $10.3 billion, up 7.7%.

From November 1 to Nov. 27, Adobe asserted, consumers have spent $109.3 billion online, up 7.3% year over year, with 60% of spending driven by five categories including electronics, $21.7 billion; apparel, $19.2 billion; furniture, $14.7 billion;  grocery, $6.8 billion; and toys, $3.1 billion. Adobe expects the full holiday season, designated as November 1 to December 31, to hit $221.8 billion, up 4.8% from the year-earlier period. With e-commerce growth continuing to outpace in-store shopping, Adobe expects consumers to spend $1 of every $5 online this holiday season.

“The 2023 holiday shopping season began with a lot of uncertainty, as consumers shifted their spending to services while dealing with rising costs across different facets of their lives,” said Vivek Pandya, lead analyst, Adobe Digital Insights. “The record online spending across Cyber Week, however, shows the impact that discounts can have on consumer demand, especially with quality products that drove a lot of impulse shopping.”

The National Retail Federation reported a record 200.4 million consumers shopped during the five-day holiday weekend from Thanksgiving Day through Cyber Monday, surpassing last year’s record of 196.7 million.

The annual Thanksgiving Day-through-Cyber Monday shopping survey from NRF and Prosper Insights & Analytics demonstrated results surpassed an initial expectation of 182 million shoppers.

Over the weekend, 121.4 million consumers visited physical retail locations, a figure close to the 122.7 million in 2022. Online shoppers totaled 134.2 million, up from 130.2 million in 2022. 

Black Friday continued its streak as the most popular day for in-store shopping, with 76.2 million consumers opting to visit brick-and-mortar locations, up from 72.9 million in 2022. About 59 million consumers shopped in stores during the Saturday after Thanksgiving, down from 63.4 million in the year earlier. On par with last year, 78% of patrons shopped specifically for Small Business Saturday. Black Friday was also the most popular day for online shopping, continuing a trend that began in 2019, NRF pointed out. Roughly 90.6 million consumers shopped digitally on Black Friday, up from 87.2 million in 2022. About 73 million consumers shopped online on Cyber Monday, down slightly from 77 million in the previous year.  

About 44 million consumers used their home desktop or laptop to shop online on Cyber Monday, on par with 2022, NRF determined. Another 40.5 million shopped online using mobile devices, down from a record 45.7 million in 2022 but still above pre-pandemic levels.  

Top destinations for Thanksgiving weekend shoppers were online platforms, at 44%; grocery stores and supermarkets, at 42%; department stores, at 40%; clothing and accessories stores, at 36%; and electronics stores, at 29%.

Thanksgiving weekend saw 95% of shoppers making holiday-related purchases, down from 97% last year but in line with historical levels, NRF maintained. Consumers spent $321.41 on average on such items, similar to the $325.44 spent in 2022, with 70%, or $226.55, going to gifts.

Top gifts bought during the five-day period were clothing and accessories, purchased by 49%; toys, 31%; gift cards, 25%; books, video games and other media, 23%; and personal care or beauty items, 23%.

Consumers reported, on average, 55% of their Thanksgiving weekend purchasing was specifically driven by sales and promotions, up from 52% in 2022. Another 31% said limited-time sales and promotions prompted them to make a purchase even if they had been hesitant about it, up from 29% last year. Pre-Black Friday, 55% of consumers took advantage of early holiday sales and promotions, NRF indicated, with 35% shopping specifically in the week leading up to Thanksgiving.  

As of Thanksgiving weekend, 85% of consumers had started holiday shopping, and 48% were about halfway done with holiday shopping by the weekend, numbers consistent with the previous year. 

NRF defines the holiday season as November 1 through December 31, and it previously forecast that holiday spending will reach record levels and grow between 3% and 4%, $957.3 billion to $966.6 billion. 

“The five-day period between Thanksgiving and Cyber Monday represents some of the busiest shopping days of the year and reflects the continued resilience of consumers and strength of the economy,” said NRF President and CEO Matthew Shay. “Shoppers exceeded our expectations with a robust turnout. Retailers large and small were prepared to deliver safe, convenient and affordable shopping experiences with the products and services consumers needed, and at great prices.”

Prosper’s Phil Rist,  executive vice president, strategy, added, “Over the course of the weekend, consumers were able to find great deals on holiday gifts and other items they wanted. This year is the first time personal care and beauty items were among the top five most popular gifts purchased over Thanksgiving weekend, with nearly one-quarter of shoppers purchasing these items.”

Jeffrey Reigle, longtime leader of the family run Regal Ware cookware manufacturing and marketing business, died Wednesday, November 22. He was 72.

Reigle, a third-generation descendant of Regal Ware founder J.O. Reigle, was president and CEO of Regal Ware from 1992 to March 2021, when he was succeeded by his son, Ryan. Jeffrey Reigle was Regal Ware’s board chairman.

Kewaskum-WI-based Regal Ware is a longtime manufacturer and marketer of cookware. The company, which produces cookware in nearby West Bend, WI, markets premium cookware under such brands as Saladmaster and American Kitchen through direct-sales, retail and e-commerce channels. The company previously was a leading retail cookware supplier under such brands as Regal Ware and Club. The company recently sold the Espro brand of coffee and tea products to DKK.

“My father was not only a brilliant leader but also a loving husband and father,” said Regal Ware CEO Ryan Reigle. “He set a high standard for us as a family and as a company. His legacy of compassion, innovation, transformation, and commitment to our core values will guide us forward.’

Jeff has served as chairman Direct Selling Association, chairman of the Direct Selling Education Foundation and president of Cookware Manufacturers Association. He was inducted into the Direct Selling Association Hall of Fame in June 2018.

The National Retail Federation estimates 182 million people are planning to shop in-store and online from Thanksgiving Day through Cyber Monday this year.

In this year’s survey, 74% of holiday shoppers said they planned to visit physical and virtual stores during the five-day Thanksgiving holiday weekend period, up from 69% in 2019 before the COVID-19 pandemic struck, NRF indicated. The main reasons consumers plan to shop during the period include the deals are too good to pass up, at 61%, and because of tradition, at 28%.

Black Friday continues to be the most popular day to shop, with 72% of consumers planning to shop, up from 69% in 2022. Cyber Monday comes in second, with 39% of those who anticipate shopping over the weekend planning to do so on the date, on par with 38% last year.

NRF has forecast holiday spending is likely to reach record levels during November and December, growing between 3% and 4% and totaling $957.3 billion to $966.6 billion. The holiday sales total in 2022 reached $929.5 billion. NRF expects holiday spending in 2023 to pace the average annual holiday growth of 3.6%, as occurred from 2010 to 2019.

Similar to the past few years, NRF noted that 59% of holiday shoppers started browsing and buying for the holidays as of early November to get a head start on their seasonal purchasing. On average, holiday shoppers completed a quarter of their planned purchases during the first few days of November.

Gifts are the purchases shoppers are most likely to have made so far, with 48% of holiday shoppers having purchased gifts so far this season. Another 18% said they’ve purchased decorations, and 17% said they’ve purchased gifts for themselves. 

The five-day Thanksgiving holiday promotional period will include some of the busiest shopping days of the year, NRF maintained, despite earlier excursions.

“Early shopping is a trend we have been tracking for several years, and this year, there is evidence the deals and promotions from October resonated with consumers,” said Phil Rist, Prosper Insights & Analytics executive vice president of strategy.  “More than 40% of shoppers say they took advantage of retailers’ October sales to shop specifically for holiday gifts, décor and other seasonal items.”

NRF President and CEO Matthew Shay said, “The Thanksgiving holiday weekend marks some of the busiest shopping days of the year, as consumers enjoy the tradition of shopping for the perfect gifts for friends and loved ones. Retailers have been preparing for months for this occasion. They are stocked and ready to help customers find the gifts and other items they want at great prices during the entire holiday season.”

Generation Z continues its emergence as a primary consumer segment, and, as the group approaches the holidays, it is demonstrating some distinct preferences that can translate to opportunity.

Although sources differ slightly, Gen Z consumers range from 11 to 26 today. Because many are minors, market research often focuses on those 18 to 26, which is likely to reflect most of the younger echelon’s preferences.

At the same time, because they are in a similar life stage, some market research focuses on older Gen Zers and younger Millennials ages 18 to 34. As such, some ambiguity exists in market research derived from Gen Zers, but in general, the numbers suggest Gen Z has been heavily influenced by certain specific events that mark its development on the consumer front.

Gen Z has grown into an essential group of housewares consumers. In the HomePage News 2023 Consumer Outlook Survey published early this year, young adults aged 18 to 34 were the most enthusiastic about purchasing from almost every housewares category examined. The group, comprising older Gen Zers and younger Millennials, consists of consumers starting out and setting themselves up to live independently. That makes them natural home product shoppers.

However, when divided strictly by generation, the Gen Z group tied and exceeded Millennials in their expectation to purchase housewares across multiple categories. In the study, Gen Z tied or edged out Millennials in anticipation of buying drinkware, flatware, kitchen electrics, home storage and organization, home environment, cleaning tools, floor care electrics, luggage and travel accessories, pet accessories, and, by several points, personal care. Whether this suggests a greater affinity for home cooking or entertaining, the result at least provides evidence that Gen Zers are home-conscious and willing to spend on products they can use in the domestic space.

The 2023 IHA Occasions Report published by HomePage News in late 2022 looks at life events and potential housewares purchases associated with them. Millennials tended to be the group looking forward to the most life events in 2023, from leaving for college through to retirement, including marrying and new home ownership. However, Gen Zers were usually close behind and ahead of older echelons. Gen Zers and Millennials anticipated life events upcoming for themselves and their immediate circle of family and friends. In both cases, Millennials tended to have more happenings lined up except where age might make Gen Z more prominent, as in the case of purchasing for their own moves to college.

When it came to purchasing housewares gifts for occasions, Gen Z was a solid second to Millennials throughout the study. Gen Zers edged out Millennials in the likelihood of purchasing a housewarming gift, although Millennials beat Gen Zers when it came to gifts for those leaving for college.

Shopping for major life events is different than doing so for holidays, but one thing that comes out of the two HomePage News reports is that Gen Z is the consumer demographic looking ahead to making housewares purchases throughout this year, certainly more so than Gen Xers and Baby Boomers. Retailers and vendors should be taking Gen Zers seriously in the holiday sales period in terms of products provided and outreach.

Millennial youths were rocked by the Great Recession. That made them somewhat wary of economic institutions and caused them in many cases to enter life stages such as marriage and first home purchases later than might have been expected originally. Gen Z also has grown up under the influence of the COVID-19 pandemic and a more acute concern about environmental change as well as such social issues as equity.

Gen Z also is the first truly digital generation. Unlike Baby Boomers, Gen Xers and even some Millennials, online shopping was never a new revelation for Gen Zers.

As Gen Zers have emerged as consumers, the holiday shopping season has been evolving from its traditional timing. Amazon and then its rivals began launching major October sales events, accelerating an expansion of the holiday shopping season from the traditional Thanksgiving Weekend to Christmas period.

Marsha Everton, principal and founder at the Aimsights Group, a market research company that focuses on Millennials and Gen Zers, told HomePage News that, when it comes to shopping, Gen Zers like the experience of shopping in physical stores.

“It’s all about the experience,” Everton said. “And they are very discriminating and demanding about that experience. They want ‘unique” more than brand.”

In outreach to Gen Z consumers, Everton pointed out, TikTok is “huge. It’s the search engine of choice, displacing Google as the number one search engine in that age cohort.”

Still, although TikTok has become a pervasive influence, social media doesn’t dictate Gen Zer choices.

“Family and friends are still the most important influence on buying a product or brand, actually an even greater influence than we see in other generations/age groups,” Everton said. “For all of the media hype about their online habits, they are very relationship-driven and trust advice from people they know more than general online information.”

Research from Morning Consult indicated far more Gen Zers began their holiday shopping early compared to last year: 34% started late August 2023 versus 21% in 2022, a swing that contributed to shifts in fulfillment channel usage for early orders. Across the early shopping period, Gen Zers edged out Millennials as the top group of early shoppers, with 33% getting a jump on the season versus 28% a year earlier, according to Morning Consult. Gen Xers and Baby Boomers fell back concerning early shopping, with only 21% of each shopping by late August. Although many analysts hypothesize earlier shopping follows the desire to take advantage of retail sales and spread out holiday expenses, Morning Consult asserted its data indicates the opposite: Early shoppers are splurging, not trying to save.

In the Morning Consult research, only Gen Zers, at 6%, plan to spend more on decor for the 2023 holiday season.

Whether Gen Z consumers can sustain the early shopping pace through the holidays is an open question, the Morning Consult opined, but Gen Zers are out in front early and just might stay there.

The disruption and lengthening of traditional holiday shopping seems to be taking particular hold with Gen Z, which may also be true of Millennials. According to market research from shopping rewards app ShopKick, 40% of Gen Xers and 38% of Baby Boomers planned to shop on Black Friday, while only 18% of Millennials and 3% of Gen Zers expressed an intention to do so. The results in this year’s study contrasted sharply with the study conducted by ShopKick a year earlier. Then, 56% of Gen Z and half of Millennials planned to shop on Black Friday, a more significant proportion than the 44% of Gen Xers and Baby Boomers and 36% of the Silent Generation.

Bargain hunting isn’t the only factor driving Gen Z holiday shopping. In a recent study by market researcher Mintel, 48% of winter holiday shoppers said they might consider looking for pre-owned gifts. However, the proportion increased to 68% with GenZ consumers ages 18-24. The number of consumers planning to shop for the holidays in secondhand retailers grew eight percentage points in the study year-over-year, with 23% of Gen Z and Millennials planning on doing so.

In the fight for Gen Z dollars, as Everton of Aimsights pointed out, it’s critical to understand the importance of TikTok. According to Tinuiti Research, 35% of Gen Z consumers point to TikTok as the social media where they discover new products, followed by 18% on Instagram and 10% on Facebook. In contrast, Baby Boomers’ discovery is 3% TikTok, 5% Instagram and 25% Facebook.

When considering which major retailer Gen Zers prefer to start consumer product searches, in a bit of a surprise, 27% say Walmart, followed by Amazon (26%) and Target (12%). That contrasts with Baby Boomer search-beginning preferences of 29% for Amazon, 26% for Walmart and 4% for Target.

In other research, ICSC stated that 47% of Gen Zers will support brands that show concern about sustainability and an equal proportion on equity progress.

Gen Z might be pulling other generations along in their consideration of sustainability and social issues. In a First Insight study, Gen Zers were most likely to say they would spend more for sustainable products in 2019, at 73%. However, in 2021, Gen Z had slipped marginally in its willingness, down two points. Millennial willingness advanced to 72% from 68%, and Gen X willingness advanced to 78% from 55%. First Insight credited much of the change in the older generations’ purchasing to the influence of Gen Z.

Retail Development

Many retailers are introducing or touting AI-supported shopping initiatives ahead of the holiday season. For example, Newegg Commerce, a retailer heavily focused on younger consumers, has updated its consumer-facing AI use by launching summarized customer reviews generated via artificial intelligence, it announced in August. A month earlier, Newegg introduced an AI-based approach to housewares and home furnishing that organized shopping around a virtual home with rooms linked to product assortments. This summer, Wayfair introduced Decorify, which employs AI-enhanced technology to help consumers virtually remodel their home spaces before purchasing the products.

In those cases, the retailers are adding experiential elements that research has deemed important to Gen Zers. That points to an engagement trend, making functional elements more attractive to consumers who have grown up with video games and social media.

The gamification of shopping is an emerging, if not yet a thoroughly embraced, retail trend that also has ramifications for vendors working both with retailers and as part of the direct-to-consumer development. According to market research and advisory firm Mordor Intelligence, the gamification of retail has created a service market including players such as Microsoft and SAP, reaching $57.99 billion, which it suggests will grow slowly through 2028 to 58.7 billion in 2028. Although the compound annual growth rate is just .25%, as the market research and advisory firm sees it, artificial intelligence and machine learning are critical elements in gamification. Since the marketplace is only beginning to work through the opportunities those technologies offer, gamification could gain faster, particularly among consumers who grew up with video games. It also might help solve some of the navigational shortcomings of mobile device navigation and search originally adopted from algorithms developed for PCs.

Talon One, a promotion and loyalty software provider, pointed out that elements making shopping more of an experience through gaming and game-like features are already in use by a range of companies. For example, food delivery company Wolt includes a simple mini-game in its app: If Wolt users tap the app’s delivery timer, they receive a hidden game challenging them to tap as many times as they can within five seconds. If they beat the Wolt team’s score, they win a Wolt coupon.

It’s noteworthy that this approach has been gaining in physical retail environments. As long as four years ago, T.J. Maxx launched and awareness campaign featuring gamified pop-ups in six different locations in New York and Los Angeles. Each featured a selection of products curated by a group of six celebrities and influencers. Consumers could win the contents of each installation by correctly guessing the combined value of the products on display, posting their guesses under Instagram videos from T.J. Maxx or tagging them using the #maxximizing hashtag.

Ghost Retail, which works with companies on livestreaming, personal shopping and shoppable video, has pointed out that loyalty programs are among the areas where retailers explore basic forms of gamification, including point and badge systems, that reward consumers for specific behaviors. The company noted how Sephora awards customers points for their purchases, which can be redeemed for rewards like free products or exclusive experiences. The program incentivizes customers to make more purchases and creates a sense of exclusivity and community among Sephora’s loyal customers, the company stated.

Gen Z shoppers are known for being tech-savvy, social media-adept and highly competitive. They value experiences over possessions, and they also are more likely to make a purchase if they feel like they are getting a good deal. Any game offered should be easy to access, enjoyable in use and provide value to the Gen Z shopper, Ghost Retail said.

As the generation that grew up with the Internet and online shopping, Gen Zers aren’t shy about embracing new technological approaches to shopping.

According to recent consumer research by e-commerce technology company Rokt and the Harris Poll, 89% of Gen Zers globally think AI can improve online shopping. In the research, 55% of Gen Z respondents said they were interested in an AI assistant that would make online shopping more convenient by simplifying product discovery and anticipating their needs and preferences. Moreover, 51% of Gen Zers say they are interested in augmented reality and virtual reality shopping experiences. Walmart and West Elm have recognized that in its work with Roblox. Amazon has a Prime Video initiative linked to its superhero high school series with the evocative title “Gen V.”

Gen Zers identified the top five areas in which they expect AI will improve online shopping: help with comparing prices, cited by 47%; finding deals, at 45%;  receiving relevant offers and product suggestions, at 41%;  receiving personalized assistance, at 37%; and finding reviews at 28%.

Timing

A poll conducted at the beginning of this expanded holiday shopping season from e-commerce platform runner Shopify and Gallup identified consumers 18 to 29, mostly Gen Zers with a few younger Millennials included, as having the most robust spending intentions among generations studied and the greatest willingness to spend early for discounts.

Gen Z has grown up with the expansion of the holiday shopping season. Although Baby Boomers and even older consumers might still see shopping for Christmas in August as odd, Gen Zers see it as more natural.

In the survey, Gen Z consumers were most enthusiastic about holiday deals, saying they would probably or definitely start shopping back in the calendar if retailers rolled out seasonal deals and promotions before the traditional November to December shopping period. Shopify and Gallup called on retailers to make better use of earlier holiday deals specifically to cater to younger consumers. In the survey, 48% of the 18-to-29-year-olds said they could be attracted to earlier holiday discounts, well over the 28% average across all age groups. Shopify and Gallup affirmed younger consumers are ready to shop, with 37% saying they would spend more this year, almost double the average sentiment among all groups polled.

The TJX Cos. recorded a solid third quarter helped by strong gains in household merchandise led by HomeGoods.

Net income was $1.19 billion, or $1.03 per diluted share, versus $1.06 billion, or 91 cents per diluted share, in the quarter a year prior. The year-prior earnings per share results included an adjustment to 86 cents, the company noted.

An analyst consensus estimate published by Zacks Investment Research called for earnings per diluted share of 97 cents and sales of $13.05 billion.

Comparable sales grew by 6% in the third quarter, with, by division, Marmaxx, including T.J. Maxx and Marshalls stores, up 7%, HomeGoods up 9%, TJX Canada up 3% and TJX International up 1%.

Net sales increased to $13.27 billion from $12.17 billion in the quarter a year before

Although TJX enjoyed strong demand across category lines, Ernie Herrman, TJX president and CEO, pointed out in a conference call, “Sales for overall home were outstanding, accelerating sequentially versus the second quarter, particularly at HomeGoods.”

In announcing the financial results, Herrman said, “I am extremely pleased with our third-quarter performance and strong execution of our teams as our comp store sales, pretax profit margin and earnings per share all exceeded our expectations. I am particularly pleased with the results at our Marmaxx and HomeGoods divisions, which delivered terrific comp sales increases entirely driven by customer traffic. Customer traffic was up across all divisions, our overall apparel sales remained very strong, and home sales were outstanding and accelerated sequentially versus the second quarter.

“Across our geographies and wide customer demographic, our values and exciting, treasure-hunt shopping experience continued to resonate with consumers,” Herrman continued. “With our above-plan results in the third quarter, we are raising our full year guidance for comp store sales and earnings per share. The fourth quarter is off to a strong start, and we are pursuing the plentiful deals we are seeing for great brands and great fashions in the marketplace. We are strongly positioned as a shopping destination for gifts this holiday selling season and are convinced that our values and fresh shipments to our stores and online throughout the season will be a major draw again this year.”

Walmart surpassed third-quarter Wall Street estimates as earnings and revenue gained while some product costs, including in general merchandise, moderated.

A MarketBeat-published analyst consensus estimate anticipated adjusted diluted earnings per share of $1.52 and revenues of $159.65 billion.

Comps gained 4.7% in the quarter year over year without the effect of fuel sales, according to Walmart. Net sales were $159.44 billion and net revenues, including memberships and other income were $160.8 billion versus $151.47 billion and $152.81 billion, respectively, in the year-earlier period. Operating income was $6.2 billion versus $2.7 billion in the year-prior quarter, when adjustments for one-time events pushed the figure up to $6 billion.

At Walmart U.S., comps gained 4.9% year over year in the quarter with transactions up 3.4% and average ticket up 1.5%. E-commerce contribution to comps was about 300 basis points. Net sales were up 4.4% to $109.4 billion as operating income slipped 2.2% to $50 million versus the year-before period.

At Sam’s Club, comps gained 3.8% year over year in the quarter with transactions up 4% and average ticket down 0.2%. E-commerce contribution to comps was 170 basis points. Net sales were up 2.8% to $22 billion as operating income advanced 5.5% to $600 million from the year-past period, Walmart reported.

Doug McMillon, Walmart president and CEO, speaking in a conference call, said “Across markets, the team did a nice job driving our seasonal events. Our in-stock and inventory levels are in good shape. We finished down 1.2% in inventory for the total company, including down 5% for Walmart U.S. Both our top line and adjusted EPS came in better then what we projected at the beginning of the quarter, but we could have done a better job on expenses.”

On the general merchandise side, McMillon said some costs are declining, which will give Walmart the opportunity to provide price rollbacks for the holiday season. He added 2024 might experience a deflationary period across many product categories, for which some general merchandise segments, as well as food segments such as dairy, chicken and seafood, have become less costly while prices on other categories, such as grocery and everyday needs, have been slower to drop. McMillon said the company welcomed some deflation as it would provide an opportunity to manage in such a way as to improve shopper satisfaction.

McMillon also pointed out the company’s e-commerce sales advanced 24% in Walmart U.S.,16% at Sam’s Club U.S. and 15% globally. Marketplace and its third-party sellers are an important part of Walmart’s plans to advance e-commerce and provide a wider selection, he maintained.

“We had strong revenue growth across segments for the quarter, and we’re excited to get an early start to the holiday season,” McMillon said. “(From a) Thanksgiving meal that costs less than last year, to great prices on fashion, toys, electronics, and seasonal decorations, we’re here to help families from around the world make this a special time. Looking ahead, our inventory is in good shape, the teams are focused, and our associates are ready to serve our customers and members whenever and however they want to be served.”

Although revenues slipped from a year earlier, Target posted a significant gain in third-quarter profits and will tackle sales going forward, including efforts to drive holiday gains with sharp prices on gifts and promoting them conspicuously.

Net earnings for the quarter were $971 million, or $2.10 per diluted share, versus $712 million, or $1.54 per diluted share, in the year-prior period. Adjustments for one-time events did not affect the diluted share price in the quarter.

An analyst consensus estimate from Yahoo Finances called for earnings of $1.48 per diluted share and revenues of $25.24 billion.

Comparable sales slid 4.9% in the quarter, with declines in discretionary categories partially offset by continued growth in frequency categories, most notably in beauty, according to Target. Same-day services advanced more than 8%, led by more than 12% growth in drive-up.

Revenues were $25.4 billion and sales were $25 billion, versus $26.52 billion and $26.12 billion in the year-previous period, respectively, the company reported. Operating income was $1.32 billion versus $1.02 billion.

Target indicated inventory at quarter was 14% lower than at the same point in 2022, reflecting a 19% reduction in discretionary category inventory.

To deliver newness and value for consumers in the holiday season, Target reported the company is offering more than 10,000 new items for the holidays, with thousands of gifts under $25 and thousands of Target-exclusive items across multiple categories.

In a conference call, Brian Cornell, Target chair and CEO, emphasized the company’s earnings gains.

“We’ve seen a meaningful improvement in profitability compared with last year,” Cornell said. “Even beyond this year’s rapid progress, we believe we have a significant opportunity to grow both the top and bottom line in the years ahead. So, even as we remain cautious in our near-term outlook, we’re not standing still. We’re playing the long game, investing in our stores, our supply chain, our team, our digital capabilities and our assortment to provide the newness, value and convenience our guests want for the holiday season and beyond.”

Cornell said economic headwinds continue to hit target, and the decline in comps resulted from softer sales in discretionary categories, partially offset by gains in everyday needs. Store comp trends were a bit stronger than digital comps in the third quarter, Cornell added. Bottom-line growth was stronger than Target anticipated because of factors including better freight costs, favorable product mix, inventory management and work to improve efficiencies.

Target will focus on improving traffic and sales growth to provide more satisfactory overall performance, he said. However, consumers are waiting until the last minute to make purchases and buying fewer units across the industry, Cornell maintained. As such, Target is emphasizing sharp price points on end caps and marketing during the holiday season, as well as innovation and newness. He commended vendors for providing both. For its part, Target is revisiting employee training to ensure shopper satisfaction as the year ends and into the future.

Joelle Mertzel, president of Kitchen Concepts Unlimited, is on a mission to educate consumers about butter.

Mertzel came up with the idea for her flagship product, Butterie (pictured above), after discovering butter didn’t need to be refrigerated. “I grew up with butter in the fridge,” Mertzel said. “My parents did, too. It’s dairy. It says to keep refrigerated, right? And so your whole life you’re slicing off little things of butter and trying to get it on the toast for it to melt so you can spread it… and I’m like, wait a second. We don’t have to do that?”

However, upon starting to keep her butter on the counter, she found that she had issues with her traditional butter dish. The lid was too slippery. How do you set it down so that it doesn’t leave a ring of butter on the counter? That is when she had the idea for Butterie, a flip-top butter dish that would solve all of her issues. Shocked that it didn’t exist yet, Mertzel, then a stay-at-home mom, started the process of figuring out how to make her dream product a reality.

Mertzel started with product research. “Am I making a product that the marketplace really needs? How many people are keeping their butter on the counter? That was my big question. I hadn’t been doing it. If nobody else is doing it, then is this really a necessary product? How many knew they could keep better on the counter?”

She discovered one in four people keep their butter on the counter all the time, and about half of America knew they could. “For a basic everyday item that people are using for meal prep in the morning, lunch, dinner… I mean, butter is such a part of everything,” Mertzel said. “So to have that misinformation about it, I just thought it was really fascinating,” she said. But with at least 25% of people keeping butter on the counter, Mertzel knew that she had a demand for her product.

She started selling the Butterie at Bed Bath & Beyond before moving into Walmart with the lower-priced version, Better Dish, as she felt the $12.99 pricepoint for Butterie was going to be too expensive for Walmart. Within a year, Better Dish went from a 1,400-store test at Walmart to nationwide. Her goal is also to expand into the global market. The Butterie is currently made with plastic, but Mertzel has plans to make it in ceramic, stainless steel, copper and sustainable bamboo.

Earlier this year, Mertzel and Kitchen Concepts petitioned the FDA to update their recommendations for butter storage. Since July 2019, the FDA has stated on the USDA website, “Butter and margarine are safe at room temperature,” she said. “However, if butter is left out at room temperature for several days, the flavor can turn rancid, so it’s best to leave out whatever you can use within a day or two.” Yet, when Mertzel pressed for supplemental data regarding their recommendations, she said no information could be obtained from FDA representatives.

Kitchen Concepts worked with Michelson Laboratories, Inc., an FDA-approved food safety lab, to test butter at room temperature. Various butter brands were analyzed every three to seven days and tested for spoilage organisms such as general bacteria, coliform bacteria, yeast and mold that could limit shelf life. The samples were also tested for oxidation and rancidity. They found that the butter samples had a good microbial quality for 21 days when stored at room temperature. “It’s our mission to talk about keeping butter on the counter. I say it wherever I can, and I try to get as many large-scale platforms as I can to get the word out,” Mertzel said.

Among the education efforts Mertzel has made to dispel consumer confusion is a children’s book every new customer gets for free, “Change Your Life for the Butter.” The short read essentially serves as a creative press kit. “The whole point is you’re trying to communicate information, right? And you want to do it in a way that’s fun and receptive and exciting,” she said. “And I have a fun story to tell. I thought, why don’t I tell the story as a story? Because I have three kids, I was so used to reading children’s books every night as I was tucking everybody into bed.

“It was just the voice that came to me so naturally,” Mertzel continued. “I just feel so blessed to have built this business, which I just love. I get to be so creative and get to just the way I market, the way I develop products, the way I do packaging, the way I run the business with my employees,” she continued, “I feel like I won the lottery getting to know this business.”

Looking to the future, Mertzel asked herself, “How do I keep my original concept while expanding?” Along with making the Butterie in different materials, Kitchen Concepts is working to expand with products such as the Better Drizzle, a drip-free, flip-top oil dispenser; the Z Bottle, an oil dispenser with a larger capacity and different internal structure for the flip-top than the Better Drizzle; and a four-piece breakfast set that they are hoping to sell to Costco. The company also currently sells the SnapAway, a collapsible knife that attaches to the rim of a tub of butter, storing the knife inside.