“The new IKEA AI Assistant on GPT Stores is an ongoing initiative, and the continuation of a journey that looks to enrich the retail experience and explore additional avenues to interact with our customers and coworkers, as they help us improve and develop further,” Parag Parekh, global chief digital officer for Ikea Retail, said in a statement.

Ikea is No. 7 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region.

How does Ikea’s generative AI assistant work?

Consumers can access the Ikea AI assistant through ChatGPT. Users can ask questions about Ikea’s catalog and product availability at a specific store. A customer can tell the tool that he is looking for a dining table that seats eight, and ChatGPT will respond with images of products that fit the description, along with prices and a look at average customer ratings, according to an example video Ikea shared. It can also provide a link directly to checkout with the item on Ikea’s website.

Ikea’s generative AI assistant is available in the U.S.

Users can also ask for design tips, or ask the tool to show them furnishings within specific parameters. For example, ‘’Show me a cozy living room layout for a small apartment with the use of sustainable materials.’’ Requests can be more specific, too, asking how certain Ikea products would look together in a kitchen, for example.

“We are taking a pragmatic, execution-focused approach, learning by doing and capitalizing on our early efforts of a Responsible AI framework. We activated a broad ecosystem of partners to bring to life several experiments, so that we can take part in the AI evolution as we shape our company strategy,” Francesco Marzoni, chief data and analytics officer at Ikea Retail, said in a statement.

Consumer-facing generative AI

Ikea joins other major retailers in releasing generative AI tools consumers can use to find and purchase goods online. Amazon.com Inc. recently debuted Rufus, a new generative AI shopping assistant trained on Amazon’s product catalog. So far, the assistant is available to a small subset of U.S. customers to answer shopping questions and make recommendations, Amazon said. It will roll out to all U.S. customers in a few weeks.

Walmart is also rolling out ways consumers can use generative AI as they shop. Walmart released a new generative AI-powered search capability in its app at the Consumer Electronics Show in January. 

The search function uses Microsoft’s large language model (LLM) alongside Walmart’s data to give consumers relevant results across product categories. Walmart CEO Doug McMillon gave the example of a shopper hosting a Super Bowl watch party. Rather than searching for a new TV, chicken wings, chips, and other essentials, one search would generate all of these items, he said, without the user manually inputting the specifics of each type of product.

The generative AI search will also take into account factors about the specific app user. A consumer’s location, search history, and other relevant information will be used to further refine their results, McMillon said.

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“No other mattress brand has cultivated the level of customer trust and love that Casper has, and it’s our time to leverage this unique position,” Megibow said in a statement. “This is the sleep brand pioneer that disrupted the industry, creating unmatched brand awareness in a sleepy category with a strong focus on innovative products that support our passion for sleep health. With recent investment from strategic partnerships, Casper is well capitalized and poised for significant growth.”

Megibow replaces outgoing CEO Emilie Arel, who started at Casper in 2019 as president and chief commercial officer. She became CEO in 2020. Arel will stay on through March to transition Megibow into the role, Casper said.

Casper is No. 143 in the 2023 Digital Commerce 360 Top 1000, a ranking of North America’s leading retailers by online sales. Purple ranks No. 250.

Who is Casper’s new CEO?

Megibow spent nearly four years at Casper’s rival mattress brand, Purple. He was CEO for three of those years.

More recently, he served as CEO of wine discovery platform Bright Cellars. He also worked as a vice president and general manager at Expedia, and as chief digital officer at American Eagle Outfitters (No. 54 in the Top 1000) from 2012 to 2015, according to his LinkedIn profile.

“Looking back to 2018, when I joined Purple, there was only one competitor to watch, which was Casper,” Megibow said in a LinkedIn announcement of his new role. “Casper had disrupted the category and built a brand with customer recognition we could only dream about. And here I am, 5 years later, with the opportunity to steward the best brand in the category and take it to new levels. I’m thrilled.”

What’s next for Casper?

Megibow’s announcement comes ahead of a new line of mattresses for Casper. 

Meanwhile, home goods and furniture retailers faced a tough environment in recent months. Furniture and home improvement were among the weakest categories in December sales, according to the U.S. Commerce Department. Data from the National Retail Federation found the same trend.

Last week, online furniture retailer Wayfair (No. 10) announced plans to cut 1,650 workers. That’s 13% of its total workforce and 19% of corporate workers. The news came just weeks after CEO Niraj Shah announced the business had become profitable again. 

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Macy’s ranks No. 17 in the 2023 Digital Commerce 360 Top 1000. The Top 1000 is a ranking of North America’s leading retailers by online sales. Amazon ranks No. 1, and Wayfair ranks No. 10.

Macy’s cuts corporate staff

Macy’s will lay off 2,350 members of its corporate staff, The Wall Street Journal reported. That’s 13% of its corporate staff, and 3.5% of its overall workforce, excluding seasonal workers. Their last day will be Jan. 26.

“As we prepare to deploy a new strategy to meet the needs of an everchanging consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company,” Macy’s said in a statement. Following the layoffs, Macy’s will add automation to its supply chain and outsource some roles, according to a memo viewed by The WSJ. 

The retailer will also close five Macy’s locations in California, Hawaii, Virginia and Florida. 

It has not yet reported holiday sales results. Macy’s reported net sales declined 7% to $5 billion in its fiscal third quarter ended Oct. 28. Digital sales and brick-and-mortar sales declined at the same rate. Macy’s online marketplace is growing, with GMV (gross merchandise volume) up 22% over Q2, the retailer said.

The average customer “continues to be under pressure and discerning about how they spend in discretionary categories we offer,” president Tony Spring told investors. Spring is poised to take over as CEO in February.

Wayfair pursues another round of layoffs

Wayfair will cut 1,650 workers, it announced Friday. That’s 13% of its total workforce and 19% of corporate workers. 

“The changes announced today reflect a return to our core principles on resource allocation, such as getting fit on spans and layers as well as focusing on our highest priorities. As a result, we’re reducing team sizes across the organization, as well as reducing seniority in certain roles that we plan to rebuild with modified leveling over the course of this year,” CEO Niraj Shah said in a press release. The layoffs are expected to save about $280 million annually, Wayfair said.

The news comes weeks after Shah announced the online furniture retailer had become profitable again. At the time, he sent a memo to workers encouraging frugality and long hours.

“Working long hours, being responsive, blending work and life, is not anything to shy away from,” he wrote. “There is not a lot of history of laziness being rewarded with success.”

Wayfair previously laid off 1,750 employees in 2023 and 900 in 2022.

Amazon layoffs hit Buy with Prime 

Amazon announced plans to lay off about 5% of its Buy with Prime unit on Thursday. That amounts to just over 30 workers, Reuters reported.

Buy with Prime gives retailers access to Amazon’s fulfillment and logistics network and payments system for products not listed on Amazon. In the week preceding the layoffs, Amazon announced a new integration for the service for Salesforce clients.

“Buy with Prime is a top priority for Amazon, with strong adoption from merchants and positive feedback from customers, and we will continue investing significant resources in Buy with Prime to build on that momentum. We’re grateful to these employees for their contributions, and we’re focused on supporting them in their next steps,” a spokesperson said in a statement.

Amazon also laid off 500 workers at streaming platform Twitch and hundreds of employees at Prime Video earlier in January.

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Marta Benson spent 13 years at Pottery Barn, part of parent company Williams-Sonoma. She served as president of the brand for seven years before becoming CEO in January 2023. 

Before joining Pottery Barn, Benson spent her career as CEO of Gump’s, a department store in San Francisco, and creating a $220 million DTC business at Restoration Hardware, according to her corporate profile.

“On behalf of the Board of Directors and the entire Williams-Sonoma, Inc. team, I want to thank Marta for her significant accomplishments and commitment to driving growth during her 13-year tenure,” Williams-Sonoma president and CEO Laura Alber said in a statement. “Marta’s contributions to our company have led to the launch of Mark & Graham, the acquisition of Rejuvenation and the transformation of Pottery Barn. We are grateful for her leadership and the legacy she leaves behind having been a champion for advancing our company’s commitment to sustainability.”

Williams-Sonoma is No. 22 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales.

Who will lead Pottery Barn?

Two current presidents at the Pottery Barn brand will take over for the exiting CEO, Williams-Sonoma said. 

Monica Bhargava, president of Pottery Barn, has been with the retailer for 22 years. As president, she oversees product development, inventory management, market, and other operations for the brand. She previously worked as chief design officer for Pottery Barn and Williams Sonoma Home. 

Jennifer Kellor, president of Pottery Barn Kids and Pottery Barn Teen, will also take over some of Benson’s responsibilities. She previously served as executive vice president for Pottery Barn Kids and senior vice president, general merchandising manager for Pottery Barn Teen. Together, Kellor and Bhargava have a combined tenure of 50 years with the retailer. 

How is Pottery Barn’s performance?

Pottery Barn reported $778 million in revenue in its fiscal third quarter ended Oct. 29, 2023. It’s the largest brand in Williams-Sonoma’s portfolio, recording $300 million more in revenue than the next top-performing brand, West Elm. However, revenue fell 16.6% year over year after nearly 20% growth in 2022. Revenue was up 3% over 2021, and 43% over 2019.

Pottery Barn Kids and Teen is the third-largest brand in the company. It recorded $277 million in revenue in the third quarter, declining 6.9% year over year. Revenue for the youth-focused brand declined 11.7% on a two-year basis, but it has grown 29% over 2019.

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The holiday season encompasses online spending between Nov. 1 and Dec. 31 across 1 trillion visits to U.S. retail sites, 100 million SKUs and 18 categories. 

The majority of online holiday shopping happened in November, boosted by a strong Cyber 5. U.S. consumers spent $123.5 billion online in November, a 6% year-over-year increase. $38.0 billion of that spending took place between Thanksgiving and Cyber Monday, growing 7.8% over 2022.

The other $98.6 billion in U.S. online sales were recorded in December. Retailer sales that continued on past Cyber Monday drove some of that December spending, Adobe says.

Holiday spending by category

65% of online holiday spending in 2023 was in just five of the 18 categories Adobe tracks.

Top categories by online holiday spending:

• Electronics ($50.8 billion)
• Apparel ($41.5 billion)
• Furniture ($27.3 billion)
• Groceries ($19.1 billion)
• Toys ($7.7 billion)

TVs, smart speakers, tablets, Bluetooth headphones, and smart watches ranked among the most popular online purchases during the holiday period. Pajamas, sneakers, and cold-weather items like sweatshirts dominated apparel sales. Popular furniture purchases included barstools, throw pillows and Christmas decor.  

Aside from the top categories, skin care serums and moisturizers, vacuums, and small kitchen appliances were also top sellers, Adobe says.

Categories with the highest sales also recorded some of the largest discounts. Electronics discounts peaked at 31% off listed prices, followed by toys (28%) and apparel (24%).

Buy now, pay later (BNPL) in holiday spending

BNPL was used as a payment method in more online sales than ever this year, according to Adobe. It contributed $16.6 billion in online spending, an increase of 14% and $2.1 billion over the same period in 2022. U.S. consumers used BNPL for $9.2 billion in online purchases in November, up 17.5% year over year. Cyber Monday was the biggest BNPL day in history, accounting for $940 million in sales, up 42.5%.

“In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement. “The strategy was effective, driving record spend online during big days like Cyber Monday and Black Friday, and a record 11 days that surpassed $4 billion in daily spend this season.”

The holiday season contributed to a huge year for BNPL use, accounting for $75 billion in online spending in 2023, up 14.3% from 2022.

Other holiday spending takeaways

Mobile shopping overtook desktop online sales for the first time in 2023. 51.1% of online sales across the holiday season were made via smartphones in 2023, up from 47% in 2022, Adobe says. Mobile sales peaked on Christmas Day at 65%, from 61% in 2022. Consumers made purchases on final holiday deals while spending time with friends and family, Adobe says.

Meanwhile, curbside pickup dipped slightly, though it still remains popular. It was used as a fulfillment method in 18.4% of online orders from retailers offering the option. That’s down from 21% in 2022. Usage peaked ahead of Christmas Eve on Dec. 22 and Dec. 23, accounting for 36.8% of orders during that time frame. Major retailers including Walmart and Target promoted their curbside capabilities through Christmas Eve.

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Parentheses indicate the merchant’s ranking in the Top 1000.

Amazon.com Inc. (No. 1)

Amazon recorded its highest operating income ever in its fiscal third quarter ended Sept. 30. Operating income nearly quadrupled year over year, growing 343%.

Read more about Amazon’s earnings here.

Academy Sports and Outdoors Inc. (No. 136)

Net sales declined 6.4% to $1.4 billion in its fiscal third quarter ended Oct. 28. Online sales made up 9.4% of total sales, down slightly from 9.5% penetration in Q2.

“Our sales and net earnings for the third quarter came in below expectations, primarily driven by weakening consumer sentiment coupled with above-normal temperatures that negatively impacted demand for Fall product,” CEO Steve Lawrence said in a written statement. 

Big Lots Inc. (No. 253)

Big Lots reported net sales declined 14.7% to $1.0 billion in its fiscal third quarter ended Oct. 28. Comparable sales declined 13.2%. Despite the sales decrease, Big Lots is on track to record year-over-year growth in Q4 for the first time in three years, the retailer said. The retailer did not share online sales data, but CEO Bruce Thorn says it has plans to improve listings of big-ticket furniture items and seasonal products online.

Chewy Inc. (No. 13)

Chewy net sales grew 8.2% to $2.74 billion in its fiscal third quarter ended Oct. 29. Autoship subscription orders remain the bulk of the business, growing 13% and making up 76% of net sales. About 85% of sales are consumable products like food and medications, Chewy said, and consumers are not trading down to non-premium alternatives. More discretionary categories like treats and toys have slowed, though, the retailer says.

Designer Brands Inc. (No. 77)

Designer Brands reported net sales declined 9.1% to $786.3 million in its fiscal third quarter ended Oct. 28. Comparable sales declined 9.3%.

“This quarter, we were impacted by a footwear market that contracted for the first time since COVID coupled with unseasonably warm weather, which significantly reduced customer demand for shoes and pressured our heavily seasonal assortment,” CEO Doug Howe said in a written statement.

Howe says he does not foresee pressure alleviating in the near term.

Dollar General Corp. (No. 724)

Dollar General net sales increased 2.4% to $9.7 billion in its fiscal third quarter ended Nov. 3. Growth was primarily driven by new store openings, the retailer said, while same-store sales declined 1.3%.

Average transaction amount declined as Dollar General consumers are squeezed by high prices across the economy, causing them to purchase less, CEO Todd Vasos told investors. Meanwhile, operating profit decreased by 41.1%.

Five Below Inc. (No. 581)

Five Below grew net sales 14.2% to $736.4 million in its fiscal third quarter ended Oct. 28. Much of the growth is attributable to the 74 new stores it opened in the quarter. Comparable sales grew 2.5%.

Online penetration remains low, says CEO Joel Anderson. Sales of discretionary categories including games, toys, and Halloween items were strong, the discount retailer says.

Foot Locker Inc. (No. 51)

Foot Locker’s total sales declined 8.6% to $1.9 billion in its fiscal third quarter ended Oct. 28. Comparable store sales declined similarly, down 8.0% “driven by ongoing consumer softness,” the retailer said in a statement.

Online comparable sales declined 5.6% over Q3 2022, mostly due to Foot Locker shuttering its East Bay online brand. Excluding East Bay, ecommerce comparable sales grew 0.4%. Online sales made up 17% of total sales in the quarter.

J. Jill Inc. (No. 247)

J. Jill reported net sales declined 0.1% to $150.1 million in its fiscal third quarter ended Oct. 28. Direct-to-consumer net sales declined 0.5%, making up 45.3% of total sales. The retailer also noted an increase in return rates due to customers becoming more discerning with discretionary spending.

Joann Inc. (No. 308)

Net sales at Joann declined 4.1% to $539.8 million in its fiscal third quarter ended Oct. 28. Online sales grew 11.5%, accounting for 13.1% of total sales.

“Our ecommerce performance was particularly strong, with double-digit quarter growth as we delivered a better and faster consumer experience and benefitted from site enhancements driving increased conversion,” CEO Chris DiTullio said in a written statement.

The crafts retailer is growing an Ohio fulfillment center with hopes of lowering fulfillment costs. 

Kirkland’s Inc. (No. 519)

Kirkland reported net sales declined 9.2% to $116.4 million in its fiscal third quarter ended Oct. 28. Online sales declined 8.5%, driven by decreases in average ticket and traffic. Declines were partially offset by an increase in conversion, the home decor retailer said. Furniture and wall decor sales flagged in the quarter, while early Christmas sales were strong, Kirkland said.

Land’s End (No. 79)

Net revenue at Land’s End declined 12.5% to $324.7 million in its fiscal third quarter ended Oct. 27. Ecommerce net revenue declined 13.2% to $249.2 million, or 9.7% excluding Land’s End Japan, which closed at the end of fiscal 2022. Despite overall declines, almost every women’s category grew sales double digits online in Q3, Land’s End said.

U.S. ecommerce gross profit grew 7% due to reduced promotions and better inventory management, the retailer said.

Petco Health and Wellness Company, Inc. (No. 92)

Petco comparable sales remained flat year over year in its fiscal third quarter ended Oct. 28. Revenue from consumables and services grew 1.8% and 15.0%, respectively. That was offset by an 8.8% decline in the companion animal business, leading to a 0.5% decline in net revenue to $1.49 billion.

The pet retailer recorded revenue growth in its digital business, it said without sharing specifics. BOPIS (buy online, pick up in store) and same-day delivery both grew in the quarter, Petco said.

Rent the Runway Inc. (No. 311)

Rent the Runway recorded a 6.3% decrease in net sales in its fiscal third quarter ended Oct. 31. Average active subscribers grew 4% to 134,646 over the year-ago period, while total subscribers remained flat.

Rent the Runway is expected to resume growing as it addresses a lack of inventory preferred by its members, CEO Jennifer Hyman said. Net loss in the quarter was $31.5 million, with plans to break even in 2024, Hyman says.

Stitch Fix Inc. (No. 42)

Stitch Fix reported net revenue declined 18% to $364.8 million in its fiscal first quarter of 2024 ended Oct. 28. The online styling service said net active membership declined 15% year over year, and net revenue per active client decreased 6%. Stitch Fix is also implementing generative AI in stylist notes to clients, and scaling its AI buying tool with plans to be used in 50% of orders by the end of fiscal 2024.

Target Corp. (No. 5)

Third-quarter sales declined 4.9% for the mass merchant, to $25 billion from $26.12 billion in its fiscal third quarter ended Oct. 28. Meanwhile, Target online sales decreased 6% year over year. Moreover, Target’s online sales declined 6.7% year over year for the first nine months.

Read more about Target’s earnings here.

Ulta Beauty Inc. (No. 46)

Ulta recorded a net sales increase of 6.4% to $2.5 billion in its fiscal third quarter ended Oct. 28. Comparable sales, including ecommerce, grew 4.5%, driven by 10% growth in online sales.

Ulta noted a 5.9% increase in transactions and 1.4% decrease in average ticket. The beauty retailer expects the online business to grow faster than its brick-and-mortar stores in 2024.

Victoria’s Secret & Co. (No. 52)

Victoria’s Secret net sales declined 4.0% to $1.3 billion in its fiscal third quarter ended Oct. 28. Online sales made up 35% of revenue in the quarter, up from 30% in the year-ago period.

Average basket size and conversion online both grew. Growing the online business further is the top priority going forward, CEO Martin Waters told investors.

Walmart Inc. (No. 2)

Walmart reported that U.S. online sales grew 24% for its fiscal 2024 third quarter ended Oct. 27. Global ecommerce sales grew 15% over the same period, while international ecommerce declined 3%.

U.S. comparable sales grew 4.9%, and total revenue grew 5.2% to $160.8 billion.

Read more about Walmart’s earnings here.

Zumiez Inc. (No. 453)

Zumiez net sales declined 8.9% to $216.3 million in its fiscal third quarter ended Oct. 28. That was a result of fewer transactions, but an increase in transaction size, Zumiez says. The footwear retailer did not share specific online sales data, but digital results were “just a little bit better than our overall result,” Chris Work, chief financial officer, told investors.

So what does it mean?

• Unseasonably warm weather was a challenge for retailers with specialized products. Academy Sports & Outdoors and Designer Brands executives both mentioned the impact of warm weather cutting into anticipated sales of winter gear.
• Selling discounted products isn’t enough to stand out in a competitive retail environment with increasingly choosy customers. Dollar General still managed to grow sales, although at a reduced pace from the previous quarter. Big Lots sales remain down year over year.

Ecommerce earnings calendar

Here’s when to expect other ecommerce earnings this quarter:

• Amazon.com Inc.: Oct. 26
• Best Buy Co Inc.: Nov. 21
• Chewy Inc.: Dec. 6
• Costco Wholesale Corp.: Dec. 14
• The Gap Inc.: Nov. 16
• The Home Depot Inc.: Nov. 14
• Lowe’s Cos Inc.: Nov. 21
• Macy’s Inc.: Nov. 16
• Target Corp.: Nov. 15
• Walmart Inc.: Nov. 16

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“We are proud to share the success of another strong sales year with our co-workers and customers. When times are tough, we view it as our responsibility to provide quality and affordable home furnishing solutions and services that make everyday life at home a little easier,” Javier Quiñones, CEO and chief sustainability officer at Ikea U.S., said in a statement. “Lowering prices is not just a promotion; it is our promise to our customers. Our priority is to remain as affordable as possible and continue reducing prices whenever we can to ensure that our products are accessible to all and that dream homes are within reach for the many.”

Ikea sales for its 2023 fiscal year

In the most recent fiscal year, which ended on Aug. 31, Ikea U.S. reported $6.3 billion in total sales of goods and services. That activity represented overall growth of 6.6%, with 3.3% growth for its ecommerce and online visits over the previous year.

Ikea cited its Billy bookcase as an example of products in its catalog that will receive price cuts of at least 20%. Those lowered prices, announced in November under a “New Lower Price” promotion, will come in addition to seasonal pricing under its “24 Days of Deals” and Winter Sale. The announcement framed the ongoing adjustments as part of its larger effort to prioritize affordability, accessibility and convenience, acknowledging financially challenging times among consumers.

U.S. consumer spending was up 0.2% on a month-over-month basis (to $41.2 billion) in October, which was weaker growth than the 0.7% increase seen in September.

Bonuses for Ikea’s U.S. workers

Ikea indicated that workers at two-thirds of its U.S. units would share in bonuses as part of “One Ikea Bonus,” a performance-driven bonus program.

“Our co-workers are the heart of Ikea, and our success in the U.S. is a reflection of their commitment to our values and vision,” Neena Potenza, chief human resources officer, Ikea U.S., explained in the announcement. “By investing in our people, we are building an Ikea for the future. Our priority is to remain as affordable as possible and continue reducing prices whenever we can to ensure that our products are accessible to all and that dream homes are within reach for the many.”

In conjunction with the bonus payouts, Ikea U.S. also announced that it would contribute to its Tack! program that funds retirement benefits for workers. The loyalty program extends to employees throughout the Ingka Group, the holding group under which Ikea U.S. operates.

Ikea’s growth plans

Ikea announced in April that it would invest $2 billion over three years to grow its presence in the U.S. It eventually expects the U.S. to surpass Germany as its largest market.

Recent locations for new stores have included San Francisco; Arlington, Va.; and Southlake, Texas. New store formats are slated for Fairfax, Va.; Gaithersburg, Md.; and Katy, Texas. Ikea’s new “plan and order” format is smaller than its traditional warehouse stores, focusing on kitchen, living room and bedroom furniture. Unlike larger-format stores, these locations serve as showrooms without furniture immediately available to take home.

In addition, more than 20 new pickup points have debuted in the U.S., expanding alternatives beyond delivery for customers living out of range for existing stores. At least 900 pickup locations are planned to open within the next three years. The new locations are expected to employ at least 2,000 new U.S. workers by the time they are completed. The Ikea franchise system currently encompasses 55 retail locations in the U.S. as of the end of November.

Ikea ranks No. 7 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region.

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Parentheses indicate the merchant’s ranking in the Top 1000.

Amazon.com Inc. (No. 1)

Amazon recorded its highest operating income ever in its fiscal third quarter ended Sept. 30. Operating income nearly quadrupled year over year, growing 343%.

Read more about Amazon’s earnings here.

Bath & Body Works Inc. (No. 56)

Bath & Body Works reported net sales declined 2.6% to $1.6 billion in its fiscal third quarter ended Oct. 28. The retailer has a “strong profitable digital business,” CEO Gina Boswell told investors without sharing specific details. However, the retailer sees opportunity to expand its digital footprint by “moving from a largely transactional website and app, to more personalized, experiential, and integrated platforms,” she said. Conversion, including the use of BOPIS (buy online, pick up in store), grew 4% in Q3 over Q2, the retailer said.

Brilliant Earth LLC (No. 201)

Brilliant Earth reported net sales grew 2.5% to $114.2 million in the third quarter ended Sept. 30. Order volume increased 17%, the jewelry retailer said. So far, Brilliant Earth is seeing “strong momentum” at the start of the holiday season, CEO Beth Gerstein said.

The Gap Inc. (No. 20)

Gap reported net sales decreased 7% to $3.8 billion in its fiscal third quarter ended Oct. 28. Online sales declined 8% and made up 38% of total sales. Old Navy had the highest net sales of the retailer’s four brands, at $2.13 billion, down 1% year over year. Gap, Banana Republic, and Athleta sales declined 15%, 11%, and 18%, respectively.

Grove Collaborative (No. 281)

Grove Collaborative reported net revenue declined 20.6% to $61.8 million in the third quarter ended Sept. 30. Direct-to-consumer orders declined 26.2% to 917,000 in the quarter, though net revenue per order decreased. The decline was due to lower advertising spending, the retailer said. 

The Home Depot Inc. (No. 4)

Home Depot reported sales declined 3% to $37.7 billion in the third quarter ended Oct. 29. Online sales grew 5%, the retailer said without revealing more. Nearly half of online orders were fulfilled by stores, Home Depot said.

The retailer also noted it achieved record Halloween sales both in stores and online.

Macy’s Inc. (No. 17)

Macy’s reported net sales declined 7% to $5 billion in the third quarter ended Oct. 28. Digital sales and brick-and-mortar sales declined at the same rate. Macy’s online marketplace is growing, with GMV (gross merchandise volume) up 22% over Q2, the retailer said.

The average customer “continues to be under pressure and discerning and how they spend in discretionary categories we offer,” CEO Tony Spring told investors.

Sally Beauty Supply LLC (No. 522)

Sally Beauty reported net sales declined 4.3% to $921 million in its fiscal fourth quarter ended Sept. 30. Net sales declined 2.3% to $3.7 billion for the year. Ecommerce amounted to $87 million in Q4 sales, 9.4% of net sales. It also made up $348 million in annual sales. 

Target Corp. (No. 5)

Third-quarter sales declined 4.9% for the mass merchant, to $25 billion from $26.12 billion in its fiscal third quarter ended Oct. 28. Meanwhile, Target online sales decreased 6% year over year. Moreover, Target online sales declined 6.7% year over year for the first nine months.

Read more about Target’s earnings here.

TJX Cos. Inc. (No. 69)

TJX reported net sales grew 9% to $13.3 billion in its third quarter of fiscal 2024 ended Oct. 28. Comparable store sales grew 6%, driven by increases in traffic, the discount retailer said.

“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,” CEO Ernie Herrman said in a written statement.

Ecommerce remains a “very small percentage” of TJX’s total business, Herrman told investors. He said the retailer was pleased with ecommerce sales trends on its brands’ websites in the third quarter without revealing more. TJX shut down its ecommerce arm for HomeGoods in October.

Walmart Inc. (No. 2)

Walmart reported that U.S. online sales grew 24% for the fiscal 2024 third quarter ended Oct. 27. Global ecommerce sales grew 15% over the same period, while international ecommerce declined 3%.

U.S. comparable sales grew 4.9%, and total revenue grew 5.2% to $160.8 billion.

Read more on Walmart’s earnings here.

Williams-Sonoma Inc. (No. 22)

Williams-Sonoma reported net revenue declined to $1.8 billion in its fiscal third quarter ended Oct. 29. Comparable brand revenue declined 14.6%. The retailer didn’t share specific ecommerce figures, but it noted plans to improve the online experience for potential customers.

“We see many opportunities for our business from developments from AI. And as early adopters of integrating AI, we look forward to leading the retail industry in this area, and we will focus on quality, authenticity, and responsiveness of this new technology,” CEO Laura Alber told investors. 

So what does it mean?

• Retailers offering discounted prices, like Walmart and TJX, are still reporting growing sales and customer acquisition. That shows inflation and budgets remain top of mind for many consumers.
• Retailers, especially those selling discretionary items, are counting on holiday purchases in Q4 after lackluster quarters.

Ecommerce earnings calendar

Here’s when to expect other ecommerce earnings this quarter:

• Amazon.com Inc.: Oct. 26
• Best Buy Co Inc.: Nov. 21
• Chewy Inc.: Dec. 6
• Costco Wholesale Corp.: Dec. 14
• The Gap Inc.: Nov. 16
• The Home Depot Inc.: Nov. 14
• Lowe’s Cos Inc.: Nov. 21
• Macy’s Inc.: Nov. 16
• Target Corp.: Nov. 15
• Walmart Inc.: Nov. 16

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34% of consumers say they’re on the lookout for deals and coupons as they shop for Thanksgiving, according to consumer behavior research firm Circana. That’s even higher for younger shoppers: 44% of Gen Z and younger millennials will be searching for deals.

“Retailers are pulling out all the stops to provide good value across Thanksgiving essentials,” says Neil Saunders, managing director at retail analysis firm Global Data.

“Manufacturers and retailers have the opportunity to help consumers, many of whom continue to buy on deal, and celebrate Thanksgiving as they always have by understanding their specific needs and targeting promotions effectively,” says Joan Driggs, vice president of Content and Thought Leadership at Circana, in a statement. “There is also significant value in gaining a complete view of consumers and their purchasing strategies, such as plans to source dishes from both home and retail as well as restaurant and foodservice.”

Grocery discount strategies

Grocery retailers adopted different strategies for capitalizing on budget-focused consumers. 

For some retailers, that means enticing shoppers with a free turkey, the focal point of the meal. BJ’s Wholesale Club will give members a free turkey if they spend $150 in a certain period, and ShopRite is offering a similar deal for a free turkey or ham. 

Meanwhile, Walmart and some other grocery retailers are focused on advertising deals that impact the whole Thanksgiving meal. Walmart announced it would sell all the necessities for a classic Thanksgiving meal for a lower price than 2022 between Nov. 1 and Dec. 26. It comes in two varieties, one with ingredients for cooking the meal and one with pre-made dishes. Walmart says the holiday meal will feed six people for under $30. 

Target’s offer is a Thanksgiving meal for four for $25. “We know our guests are looking for incredible value and ease as they get ready to celebrate Thanksgiving with their loved ones,” Rick Gomez, chief food & beverage officer, said in a press release. “In addition to our Thanksgiving meal for under $25, we can reach 80% of Americans with Same-Day Delivery with Shipt.”

Aldi, which recently relaunched its U.S. ecommerce website, is promoting a similar deal. The discount grocer says 70 Thanksgiving essentials are marked down up to 50%, including cranberries, butter, and gravy mix. Turkey is not included in the deal, however.

These sales are indicative of a larger trend around the holiday, Saunders says.

“There is a big emphasis on value for money” among consumers, he says.

Prepared Thanksgiving meals will remain relatively small

Retailers and restaurants are increasingly marketing prepared meals for Thanksgiving celebrants, but they remain a small part of overall spending.

“Anecdotally, we’re seeing more ads from retailers and restaurants promoting full Thanksgiving meals this year,” Driggs says. “But when we look at 2022, both dollar and unit sales of cooking meal kits for Thanksgiving were flat/down slightly from the previous year. Sales of these items peaked in 2021, however, and remain elevated from 2018 levels.”

Meal kit Thanksgiving sales totaled $8.2 million in 2019, growing to a peak of $17.3 million in 2021. However, they declined slightly in 2022, to $17.2 million.

Meal kit retailer Blue Apron is selling a Thanksgiving kit that it says serves six to eight people for $131.98. Competitor Hello Fresh’s Turkey Box, which serves eight to 10, retails for $199.90 this year. Consumers who buy these holiday-themed boxes tend to already be subscribers, rather than new customers, says Saunders.

Decor retailers could see Thanksgiving spending growth

65% of survey respondents told Circana that they plan to buy new holiday-themed tableware this year. However, just 7% expect to spend more than last year, and 20% say they will spend less.

“Home decorations seem to be particularly popular,” Saunders says.

And while many retailers are already advertising Black Friday deals, Williams Sonoma and Crate & Barrel both have homepages touting Thanksgiving hosting purchases. Notably, Williams Sonoma has a prominently displayed date by which customers can order items for Thanksgiving delivery.

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