Despite tighter consumer spending, Kroger stated that the flexibility of its business model helped the company navigate the third quarter when it topped a Wall Street estimate on earnings and revenue.

An analyst consensus estimate published by Yahoo Finance anticipated adjusted diluted earnings per share of 91 cents and revenues of $33.88 billion.

Identical store sales without the effect of fuel price fluctuations slipped 0.6% in the quarter year over year. The company asserted that idents without fuel would have grown 1% in the period if not for the reduction in pharmacy sales from the termination of Kroger’s agreement with Express Scripts effective December 31, 2022.

Sales were $33.96 billion versus $34.2 billion in the year-previous quarter. Operating profit was $912 million versus $841 million in the year-before period, Kroger noted, while adjusted operating profit was $1.02 billion versus $1.09 billion.

In announcing the financial results, company chairman and CEO Rodney McMullen said, “Kroger’s third-quarter results highlight the strength and diversity of our business model in a challenged operating environment, as strong fuel performance and growth in our alternative profit businesses supported continued adjusted net earnings per diluted share growth. As consumer spending tightens, we are focused on providing customers with exceptional value. By maintaining our long-term commitment to lower prices, personalized promotions and rewards, we are growing households and increasing loyalty, positioning Kroger for sustainable future growth. We appreciate our associates and continue to invest in wages, benefits and training, which is resulting in continued improvements in our customer experience.”  

Big Lots, still trying to build traction on its turnaround, posted a third-quarter comp decline even as earnings and revenue exceeded or met a Wall Street estimate.

The company also announced the appointment of former Burlington Stores executive Kristen Cox to senior vice president, chief stores officer. Former Big Lots executive Seth Marks returns to the retailer in the newly established role of senior vice president, extreme value sourcing. 

Net income for Big Lots was $4.7 million, or 16 cents per diluted share, versus a net loss of $103 million, or $3.56 per diluted share, in the year-earlier period, the company reported. Adjusted for one-time events, net loss was $127.9 million or $4.38 per diluted share, versus net loss of $86.7 million, or $2.99 per diluted share, in the year-prior quarter.

An analyst consensus estimate published by Yahoo Finance called for a loss of $4.66 per diluted share and revenues of $1.03 billion.

Comparable sales tumbled 13.2%. Net sales were $1.03 billion versus $1.2 billion in the year-before quarter.

Operating profit was $19.7 million versus an operating loss of $130.8 million in the year-previous period.  Adjusted operating loss was $113.9 million versus $109.1 million. 

Bruce Thorn, Big Lots president and CEO, said home categories continue to struggle especially given consumer wariness about big-ticket purchases. He noted Big Lots had seen some sequential improvement in seasonal items. The company also has been able to rebuild its furnishings assortment after last year’s sudden closure of United Furniture, a key vendor.

In announcing the financial results, Thorn said, “Although the environment remains challenging, we continued to make significant progress in turning around our business.  Our key strategic actions are building momentum, and we continue to play offense with our efforts to deliver incredible bargains and communicate unmistakable value. As a result, we are now on track to deliver an adjusted Q4 operating result ahead of last year, which would mark the first quarter of year-over-year improvement in nearly three years, and we expect quarterly year-over-year improvements to continue through 2024.”

As for third-quarter results, Thorn said, “We were able to deliver on or exceed our beginning-of-quarter guidance on all key metrics. We posted a sequential improvement in comp sales, significant year-over-year improvement in gross margin rate, and adjusted SG&A well below last year despite absorbing additional expense related to the recent sale/leaseback of our California distribution center and 23 owned stores. We believe the improvements in Q3 were driven by the five key actions that underlie our strategy, which are to own bargains, communicate unmistakable value, increase store relevance, win with omnichannel and drive productivity.

“Additionally, we are on track to achieve over $100 million of SG&A cost savings prior to Project Springboard benefits for the year,” Thorn continued. “Project Springboard is off to a strong start and on track to deliver $200 million of bottom-line benefits, spanning gross margin and SG&A, of which we expect a high proportion to be realized on a run-rate basis by the end of 2024. To support our ongoing turnaround, our efforts to aggressively manage costs, inventory and capital expenditures, as well as monetize our assets with completion of a $306 million sale/leaseback in the quarter, have allowed us to significantly strengthen our balance sheet. Our ongoing efforts are providing us with ample liquidity to weather the macroeconomic challenges, even if they are prolonged.” 

Cox will oversee the development and implementation of operational strategies to drive sales, improve margins and enhance customer service across all stores, filling the role left vacant by the retirement of Nick Padovano earlier this year, Big Lots reported. Marks rejoins Big Lots from Channel Control Merchants, for which he most recently served as the chief merchandising officer. CCM bills itself as a reverse logistics retailer selling products through a network of physical stores located across the Southeast, Texas and Canada.

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.”

Walmart is debuting “Add to Heart,” said by the retailer to be a first-of-its-kind shoppable, social-media RomCom series featuring holiday gift items.

Walmart said it regards the 23-part, shoppable series initiatives as an opportunity to create a connection with consumers. Walmart will release “Add to Heart” on TikTok, Roku and YouTube beginning December 2. The remainder of the series drops on December 5 and December 8. “Add to Heart” will also appear on Walmart’s owned social channels.

Almost 60% of Americans say they want to purchase via social media this year, Walmart noted, citing Mintel research. Then, Americans rank watching holiday movies over decorating the tree and baking cookies as favorite holiday traditions, the retailer reported, referencing research commissioned by streaming media platform Plex.

Products available for purchase through the episodes include furniture and holiday décor, as well as the fashions worn by the cast. Almost everything in “Add to Heart” was sourced from Walmart, the company noted, and customers will have the opportunity to shop more than 330 products through the series. With TikTok’s Video Shopping Ads and Roku’s OK to Text feature, customers will be able to shop at home or on the go. Roku users can access the series via Walmart’s first shoppable branded entertainment playlist and a marquee ad on the Roku home screen.

The series features New York designer Jessica as she returns to her hometown for the holidays. After losing her luggage while traveling, she visits her local Walmart, where she bumps into her old flame, Javi. Between the town festivities, decorating and shopping, they start to rekindle their relationship.

“We know gifting and curling up to watch a favorite Christmas movie are part of so many families’ traditions,” said William White, chief marketing officer, Walmart U.S. “So, what better time to launch an innovative, first-of-its-kind shoppable series? ‘Add to Heart’ is a fun, unique way for our customers to be entertained while shopping for the great deals on top brands that they expect from Walmart. We hope they enjoy it and the amazing gifts they order throughout.”

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.”

Dollar Tree fell short of Wall Street estimates for revenues and earnings in the third quarter, but the retailer posted solid comp store sales and pointed to market share gains in a conference call.

Net income was $212 million, or 97 cents per diluted share, versus $266.9 million, or $1.20 per diluted share, in the year-before quarter.

A Yahoo Finance-published analyst consensus estimate called for earnings per diluted share of $1.01 and revenues of $7.4 billion

Comparable sales were up 3.9% with Dollar Tree comps up 5.4% and Family Dollar comps up 2%, the company reported.

Net sales were $7.31 billion and other revenue was $5.7 billion, or $7.31 billion after rounding, versus net sales of $6.94 billion and other revenue was $3.3 million for total revenues of $6.94 billion after rounding in the year-earlier quarter. Operating income was $301.7 million versus $381.3 million in the year-prior period, Dollar Tree maintained.

Among third-quarter business highlights noted by Dollar Tree are the opening of 197 new stores and the expansion of the multi-price Plus offering to 870 additional Dollar Tree locations.

In a conference call, Rick Dreiling, Dollar Tree president and CEO, said the company’s sales momentum continues to be mostly traffic-driven as it attracts new customers and builds unit and dollar market share. Inflationary pressure, reduced government benefits and depleted savings have negatively affected Dollar Tree’s lower-income consumers, Dreiling noted. Dollar Tree CEO Jeff Davis added shrink was another factor impacting results in the quarter.

In announcing the company’s financial performance, Dreiling said, “Our third-quarter results were within our expectations thanks to continued execution across all aspects of our business transformation. In a challenging environment, our performance was among the best in retail as we continue to grow traffic, unit and sales per square foot.”

Macy’s has appointed Sharon Otterman as chief marketing officer, reporting to Tony Spring, the company’s president and CEO-elect.

Otterman will lead Macy’s strategic marketing, supervising the company’s brand evolution including building awareness, engagement and loyalty among all customer segments, the company noted. The effort will include brand activation and campaign advertising and content planning. It will also cover the company’s creative, visual merchandising, branded entertainment, and media strategy. In addition, Otterman’s responsibilities include leading and building upon Macy’s iconic experiences including the Thanksgiving Day Parade, Macy’s July 4th Fireworks and the annual Spring Flower Show.

Before joining Macy’s, Otterman served as chief marketing officer at Caesars Entertainment, where she launched the Caesars Sportsbook betting operation. Prior to Caesars, she was executive vp and chief marketing officer at Madison Square Garden Co.

In announcing the appointment, Spring said, “Sharon brings a diverse background in media, entertainment and digital transformation to Macy’s. We are excited to leverage her expertise to bring more retail theater across our shopping experiences. She is a passionate strategist and has a successful track record of evolving brands, developing creative marketing campaigns and driving profitable growth. We look forward to having Sharon as part of our leadership team.”

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.”

Amazon declared that its extended Black Friday and Cyber Monday holiday shopping event, which kicked off November 17 and continued through November 27, was the company’s biggest ever compared to the same 11-day period ending on Cyber Monday in previous years.

Throughout December, consumers will find trending products and deals in Amazon’s Holiday Shop, including the Top 100ish Gifts and Customers’ Most-Loved Gifts, the company noted, as well as shop by theme and price point capabilities including Stocking Stuffers under $5, White Elephant Gifts under $25 and Premium Gifts under $50. In the Amazon Shopping app, U.S. customers can scroll Inspire and Shop by Interest to find shoppable photos and videos and browse storefronts from influencers such as Rocky Barnes, Matt James and Jessel Taank.

Among the selling highlights, according to Amazon:

• Customers ordered more than 500 million items from independent sellers via Amazon’s marketplace, most of which are small and medium-sized businesses.
• Best-selling items on Amazon during the Black Friday and Cyber Monday shopping event included Hero Cosmetics Mighty Patch Original, Ring Video Doorbell and the Bissell Little Green Multi-Purpose Portable Carpet and Upholstery Cleaner.
• The “New & Noteworthy” page operating on the site during the holiday shopping event included Bareminerals, Coach and Hydro Flask.
• Customers purchased more Climate Pledge Friendly items than any previous Black Friday/Cyber Monday holiday shopping event, including Logitech MK270 Wireless Keyboard and Mouse Combo for Windows, DSS Games You Laugh You’re Out: The Official Family Game Where If You Laugh, You Lose, and Kitsch Rice Water Shampoo Bar.
• Customers bought more Amazon Renewed items than during any previous Black Friday/Cyber Monday holiday shopping event, with the Vitamix Explorian Blender, Samsung Galaxy S21 5G and Xbox Series X Console among the best-selling items this year.

Merchants set up for Buy with Prime shipping and who participated in promotional activities experienced, in aggregate, more than a 300% increase in units purchased through the service versus the daily average for the month of October 2023.

To provide consumers with flexibility during the holidays, Amazon extended the standard returns window to January 31, 2024, for most items purchased between November 1 through December 31 in the United States.

“We kicked off the holiday season with Prime Big Deal Days in October and extended our Black Friday and Cyber Monday holiday shopping event to 11 days to accommodate even more deals over more days to make shopping more convenient for customers, helping them save nearly 70% more than the same period last year,” said Doug Herrington, CEO of Worldwide Amazon Stores, in announcing the highlights. “There are many customers who are still checking off their shopping lists, and we are excited to announce that we will have millions more deals on a wide selection of products to come, with new deals dropping every day through December 24, along with fast, convenient delivery options.”

In an initial shopper traffic data study of brick-and-mortar retail stores and shopping centers in the United States, Sensormatic Solutions stated that shopper visits increased by 4.6% on Black Friday, November 24, versus the sales event in the year previous.

Consumers headed into stores in the early afternoon for the most part, consistent with past Black Fridays, Sensormatic indicated, with 2–3 p.m. the peak time for in-store shopping.

With Christmas falling on a Monday in 2023, Sensormatic forecasts that the busiest days of the holiday season will be more concentrated toward the end of the year than usual. The top 10 busiest days of 2023’s holiday season are likely to account for 40% of all holiday traffic, the firm pointed out. Though Sensormatic Solutions anticipates Black Friday will be the busiest shopping day of the year, there are still opportunities for retailers to capture sales.

In commenting on Black Friday numbers, Grant Gustafson, Sensormatic head of retail consulting and analytics, said, “This is an excellent result for retailers. Though we anticipated an increase, in-store shopper traffic outperformed our expectations. Consumers are again finding joy in brick-and-mortar shopping, seeing it as an experience to be shared with loved ones. It’s a testament to the hard work retailers have done to streamline journeys and deliver satisfying experiences.”

He added that Sensormatic’s “main takeaway from these results is their strength compared to previous years. This is the most significant Black Friday increase we’ve seen in recent memory. It’s great news for retailers and consumers as we head into the remaining days of the holiday season.”

Opportunities in the upcoming weeks will provide retailers with the ability to engage consumers who are still in holiday shopping mode, Sensormatic predicted.

“After falling to third place on our list in 2022, Super Saturday,  which is the day before Christmas Eve this year, is again the second-busiest day for retailers in 2023 and is expected to be the final rush of the 2023 holiday season,” Gustafson said. “However, it’s important that retailers remember that our data is designed to apply broadly to the American retail industry as a whole. Retailers should also look at their own data from their traffic solutions in 2017,  the last time Christmas fell on a Monday, for a more granular view of their store when building and tailoring promotional and operational plans this December. These deeper levels of insights will help them see how things played out for them the last time Christmas fell on a Monday.”