“We are excited to add an iconic brand such as Rag & Bone to Guess, further diversifying our portfolio with complementary customer bases and price points. We look forward to partnering with WHP Global to build on Rag & Bone’s heritage,” Guess CEO Carlos Alberini said. “Guess has an incredible platform with a strong global distribution network and outstanding licensee partners that will enable us to power the growth and expansion of the Rag & Bone business.”

Guess is No. 178 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. Rag & Bone ranks No. 652.

Terms of the deal

Guess will buy all of Rag & Bone’s operating assets, the retailer said. Guess and WHP Global will also each own half of Rag & Bone’s intellectual property, according to a public statement. They will create a licensing agreement that gives Guess exclusive rights to manufacture and sell licensed products in exchange for royalties.

The retailers did not share all financial terms of the deal. However, Guess’ commitment in the agreement totals $56.5 million, with the potential for an additional $12.8 million dependent on Rag & Bone’s 2024 results.

The deal is expected to close during the first quarter of Guess’s 2025 fiscal year. 

Rag & Bone’s history

Rag & Bone was founded in New York City in 2002. As of February 2024, the retailer operates 34 stores in the U.S., and another two in the U.K. Its products are also sold through other retailers, including Nordstrom (No. 21 in the Top 1000), Saks Fifth Avenue (No. 28) and Neiman Marcus (No. 72).

In 2023, Rag & Bone generated $250 million in revenue, it said. The apparel company is privately held.

Following the acquisition, Rag & Bone will continue to be headquartered in New York City. It will operate as an independent fashion brand under the Guess umbrella, the retailer said.

“I am thrilled about this new relationship with Guess and WHP Global. Today marks the beginning of an exciting new chapter as Rag & Bone joins forces with a much larger international fashion company,” Rag & Bone chairman Andrew Rosen said in a written statement. “It’s a great opportunity for our team to take the brand to the next level, blending our unique styles and respective expertise to create new possibilities for Rag & Bone on a global scale.”

Why the acquisition is significant for Guess

Guess will make its first-ever acquisition in its 43-year history with Rag & Bone, co-founder and chief creative officer Paul Marciano said. 

In its most recent financial report, Guess said revenue grew 3% to 651.2 million in its Q3 ended Oct. 28. Guess CEO Alberini said the addition of Rag & Bone will improve the retailer’s financial position further.

“We expect the transaction to deliver earnings per share accretion in the first year and strong value creation for our shareholders for years to come,” he stated.

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

Amazon.com Inc. (No. 1)

Amazon beat expectations with earnings for its fiscal fourth quarter ended Dec. 31, 2023. Its net sales in the quarter grew 14% year over year to $170.0 billion.

Full-year sales grew 12% to $574.8 billion in 2023, up from $514.0 billion in 2022. Read more about Amazon’s earnings here.

Costco Wholesale Corp. (No. 6)

Costco said net sales grew 6.1% to $56.72 billion in its first fiscal quarter of 2024 ended Nov. 26, 2023. Ecommerce comparable sales grew 6.3% in the same period. E-gift cards, snacks and pet items were all strong in the ecommerce channel, the retailer said.

Read more on Costco’s earnings here.

Crocs Inc. (No. 104)

Crocs reported that revenue grew 1.6% to $960 million in its fiscal fourth quarter ended Dec. 31. Direct-to-consumer sales, including ecommerce, grew 6.8%, while wholesale declined 4.6%. Revenue grew 11.5% to $3.96 billion for the full year. 

CEO Andrew Rees says he expects personalization to be a major trend Crocs can capitalize on going forward. He pointed to Jibbitz sales, which grew 17% in 2023 to $250 million in sales.

Hanesbrands Inc. (No. 277)

Hanes reported net sales declined 12% to $1.3 billion in its fiscal fourth quarter ended Dec. 30. Activewear sales declined 24% in the quarter. For the full year, sales declined 9.6% to $5.6 billion.

“Our fourth-quarter performance did not meet our expectations as the sales environment proved to be more challenging than expected,” CEO Steve Bratspies said in a statement. 

Hasbro Inc. (No. 555)

Hasbro said revenue declined 23% to $1.2 billion in its fiscal fourth quarter ended Dec. 31. Revenue declined 15% for the year to $5.0 billion. In both periods, digital gaming grew but was offset by declines in consumer products and entertainment segments. Hasbro attributed some of the entertainment segment decline to lower film and TV revenue from strikes in the entertainment industry in 2023.

“The consumer remains value conscious and we anticipate entertainment will be less of a tailwind in the year ahead, behind a reduced box office slate,” CEO Chris Cocks said.

Shopify Inc.

Shopify revenue and gross merchandise volume (GMV) both increased in the ecommerce platform provider’s Q4, which ended Dec. 31, 2023. Its revenue and GMV both increased for the full fiscal year, too.

45 retailers in the Top 1000 use Shopify as an ecommerce platform. Read more about Shopify’s earnings.

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 of its fiscal year. Read more about Target’s earnings here.

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.

Yeti Holdings Inc. (No. 135)

Yeti reported sales increased 16% to $519.8 million in its fiscal fourth quarter ended Dec. 30. DTC sales grew 11%, and wholesale increased 26%.

Full-year sales grew 4% to $1.66 billion. Sales through Amazon were strong, the retailer said, although it did not participate in Amazon’s October Prime sales event.

“The channel continues to prove effective in reaching both new and existing customers on the platform,” CEO Matt Reintjes said. Amazon makes up about 25% of DTC sales, Yeti said. However, higher fees and freight costs negatively impacted margins, the retailer said.

So what does it mean?

• Amazon has the power to make or break retailers that rely on online sales, as evidenced by Yeti. The retailer is feeling the pinch of higher fees, and it relies on the 25% of DTC sales that go through Amazon.
• The toy industry remains challenged. Hasbro fared worse than competitor Mattel, which forecasted further industry declines in 2024.

Ecommerce earnings calendar

Here’s when other ecommerce earnings are scheduled to report this quarter:

• Amazon.com Inc.: Feb. 1
• Best Buy Co Inc.: Feb. 29.
• Costco Wholesale Corp.: Dec. 14
• The Home Depot Inc.: Feb. 20
• Lowe’s Cos Inc.: Feb. 27
• Target Corp.: March 5
• Walmart Inc.: Feb. 20

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“This is a painful reality and not one that I take lightly,” Nike CEO John Donahoe said in the memo. “We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

Nike ranks No. 9 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales.

Why Nike layoffs are happening

Nike’s layoffs come as part of an ongoing restructuring effort announced in December 2023. In that plan, the company outlined its intent to cut $2 billion in costs over three years.

“While interest in sport, health, wellness and comfort has never been stronger, we are in a highly competitive industry where speed and end-to-end execution is critical to win,” Donahoe wrote in his emailed announcement. “To compete, we must edit, shift and divest less critical work to create greater focus and capacity for what matters most.”

For Nike, that means reinvestment in areas of growth and streamlining budgets. As recently as its last earnings call in December, Nike chief financial officer Matthew Friend indicated that the company “saw softness in digital traffic and higher levels of promotional activity across the marketplace.” He also cited “indications of more cautious consumer behavior around the world in an uneven macroenvironment.”

Timeframe for Nike’s job cuts

The global layoffs will occur in two phases, CNBC reported. The first of those would begin Friday, with the second ending by the time Nike’s fiscal fourth quarter concludes.

The workforce reductions referenced in the Thursday memo would follow reported cuts from November and December, as reported by The Oregonian. The total number of workers laid off during that time was unknown.

Nike reported having 83,700 employees worldwide as of May 31, 2023.

Where layoffs will occur

Specific departments were not named in the memo, though recent leadership changes have touched design, innovation, marketing and technology operations, The Wall Street Journal reported. Earlier cuts reported by The Oregonian encompassed brand, engineering, human resources, innovation, recruitment and sourcing divisions.

Cuts in Europe, the Middle East and Africa would occur on unique timelines in observance of local labor laws. Meanwhile, retail and warehouse workers were not expected to be included in the cuts.

In a Nike statement shared with Complex, the company named areas of strength where it hopes to build, even as the workforce reduction continues.

“Nike’s always at our best when we’re on the offense,” the Nike spokesperson said. “The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger.”

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Shoe Carnival is No. 335 in the Top 1000. The Digital Commerce 360 database ranks North America’s leading retailers by online sales. 

Why did Shoe Carnival acquire Rogan’s?

The footwear retailer expects to see benefits from the acquisition in its 2024 fiscal year. Adding Rogan’s to Shoe Carnival’s portfolio will generate approximately $84 million in sales and $10 million in operating income in 2024, the retailer said. That doesn’t include transaction and integration costs.

Rogan’s is 53 years old, with 28 locations across Wisconsin, Illinois and Minnesota. The acquisition makes Shoe Carnival the market leader in Wisconsin and establishes a store base in Minnesota.

“Our growth strategy is focused on becoming the nation’s leading family footwear retailer through a combination of organic growth initiatives and M&A activity that expands our geographic footprint and customer base,” Mark Worden, president and CEO of Shoe Carnival, said in a statement. “Over the past five decades, the Rogan family has built a brand that is well known and trusted throughout the state of Wisconsin. As such, they have established a clear market leadership position in Wisconsin for work and family footwear, with a compelling assortment, great customer service, and a highly committed team of employees.”

With Rogan’s, Shoe Carnival will also reach an all-time high store count of 429. That’s on track toward its goal of 500 stores by fiscal 2025, the retailer said.

Shoe Carnival’s 2023 results

Shoe Carnival reported $1.176 billion in sales for fiscal 2023, which ended Feb. 3, 2024. That’s down slightly from $1.26 billion in 2022. However, results were on the high end of expectations, the retailer said. Shoe Carnival credited a strong holiday period for the results, which will be fully released in March.

The footwear retailer also said it reduced inventory levels 10% year over year, down more than $40 million as part of an inventory optimization plan. Shoe Carnival ended the year with $110 million in cash on hand and reported no debt for the 19th consecutive year.

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It was “a phenomenal year for Shopify,” said president Harley Finkelstein in an earnings call with investors this week.

In North America, 45 of the Top 1000 online retailers use Shopify as their ecommerce platform. The Top 1000 is Digital Commerce 360’s database of the largest online retailers in the region by annual web sales. In 2022, those 45 online retailers combined for more than $8.29 billion in web sales.

Shopify revenue, profit and GMV grow in Q4 2023

In its fiscal Q4, Shopify revenue grew 24% year over year to $2.1 billion. Excluding Shopify’s logistics business, that growth rate shifts to 30%. It also marks the third consecutive quarter that growth (excluding logistics) has been greater than 25%, said Jeff Hoffmeister, chief financial officer. For the full year, Shopify revenue increased 26% over 2022 to $7.1 billion.

Of that $2.1 billion in Q4, $1.1 billion was gross profit. That’s 33% year-over-year growth in Q4 profit. Shopify gross profit in 2023 grew to $3.5 billion. That’s a 28% increase from $2.8 billion in 2022.

Meanwhile, Shopify GMV grew 23% in Q4 to reach $75.1 billion. That’s $14.2 billion more than Shopify’s GMV in Q4 2022. It’s also the largest quarterly GMV growth rate since the pandemic-driven rates in 2021, Hoffmeister said. For the full year, Shopify GMV grew 20% — or 38.7 billion — over 2022, to reach $235.9 billion in 2023.

In terms of channels, Shopify revenue from offline sources, which includes offline subscriptions and point-of-sale hardware, was $441 million. That’s more than five times what it was four years ago, Finkelstein said.

More than 70% of Shopify’s online checkouts in 2023 came from mobile devices, Finkelstein said. In Q4, the Shop App “nearly reached” $100 million in GMV in a single month, he said not specifying the exact figure.

Internationally, cross-border GMV was approximately 14% of total GMV in Q4. Europe, the Middle East and Africa represent 27% of Shopify’s total merchant base. More than $1.2 billion in Shopify revenue comes from sales in the region.

Shopify also noted growth in its B2B channel.

The biggest sales period: Black Friday through Cyber Monday

In the four days from Black Friday through Cyber Monday, Shopify merchants collectively generated $9.3 billion in sales, Finkelstein said. That’s 24% year-over-year growth. About 61 million consumers worldwide purchased from brands that use Shopify as their ecommerce platform, he said. More than 55,000 merchants had their highest-selling day ever on Shopify in that period, he added.

Part of that stemmed from scaling the platform to accommodate more traffic, Finkelstein said. Shopify handled, on average, 967,000 requests per second, he said. That’s the same as 58 million requests per minute. It’s also almost 80% higher than Shopify’s peak traffic two years ago, Finkelstein said.

Cyber Monday is still the largest online sales day in the U.S., with web sales reaching $12.4 billion in 2023, according to Adobe Analytics data. Cyber Monday 2023 online sales grew 9.6% over 2022’s $11.3 billion. Black Friday is the second largest at $9.8 billion in online sales. That represents 7.5% growth over 2022’s $9.12 billion.

Shop Pay and Shopify merchants

Finkelstein said that compared to 2022, Shopify has 35% more merchants from outside North America using its ecommerce platform. It has added brands including Dollar Shave Club, Authentic Brands Group, Buy Buy Baby, On Running and more, he said.

“In April, an external study by a big three consulting company confirmed that Shopify’s overall conversion rate surpassed the competition by up to 36% and on average is 15% higher than others,” Finkelstein said.

And when consumers use Shop Pay, conversion can grow by half, he said. More than 150 million users have signed up for Shop Pay, as of Q4 2023. For the quarter, it facilitated $18 billion in GMV. That’s up 58% year over year for the quarter and up 50% for the full year.

Shop Pay has facilitated a cumulative $127 billion since launching in 2017, according to Finkelstein.

Shopify 2023 highlights

“We cannot talk about 2023 without mentioning AI,” Finkelstein stated. “We launched our suite of AI-powered tools known as Shopify Magic, an AI shopping assistant on our Shop App and further embedded AI tools within Shopify to increase productivity and streamline administrative tasks that have saved our merchants and our team thousands of hours of work, enabling us to ship faster and make great decisions quicker.”

The ecommerce platform brought nearly a dozen AI-enabled tools to its Shopify Magic product suite in 2023.

Shopify also partnered with Amazon.com Inc. to release the “Buy with Prime” app for Shopify merchants. The deal gives merchants the choice to offer Buy with Prime directly within their Shopify Checkout. This provides Shopify merchants access to Amazon’s logistics network.

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The direct-to-consumer luggage brand is undergoing a larger restructuring that also includes “the elimination of a traditional executive team structure,” according to a statement shared with Retail Dive. 

Staffing changes were made because “the team recognizes the need for a more nimble approach amidst the changing consumer landscape,” according to the statement. 

“We’re reconfiguring the traditional exec team structure in order to promote better decision-making,” CEO Jen Rubio told Inc. “What I think this is doing is setting us up to be able to grow the right teams to work on the right projects.”

“Disruption has always been at the core of our company’s DNA,” the spokesperson said in a statement. “Away is dedicated to delivering the highest-quality travel products and experiences to our customers, and we believe that these steps will better position us to continue to be an innovative leader in the category.”

Away is No. 391 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales.

Changes at Away

Away held an earlier round of layoffs in May 2023. At the time, it cut 22 employees, including chief commercial officer Laura Willensky.

In 2023, the retailer also expanded its executive team. It hired Carissa Barrett as vice president of retail. She previously worked at Byredo, Saint Laurent, and Prada (No. 187 in Digital Commerce 360’s Europe Database). At the same time, Away hired Amanda Brody as vice president of brand. Brody previously worked at L’Oreal (No. 17 in Europe) and Charlotte Tilbury. 

In January 2023, Away brought on Carla Dunham as chief marketing officer with a mandate to increase marketing spending and capitalize on post-pandemic travel.

Away may have grown its executive team too quickly, Rubio told Inc.

“I was really proud that Away was able to attract people with such impressive accolades and such great experience,” she said. “Maybe I was in a little bit of a rush to have the company grow up so quickly, and in the midst of that, we lost a little bit of the magic that got us here.”

Away’s possible sale

Away was exploring a potential sale in 2023, Bloomberg reported.

Rubio told Inc. that’s not the plan for 2024. However, “there has to be some plan on the horizon” for an IPO or acquisition eventually, she said.

This year, Away will focus on increasing the number of product launches and working with retailers on wholesale, according to Rubio.

Other online retail and ecommerce layoffs

Away joins other retailers and marketplaces in announcing recent layoffs. EBay plans to lay off 1,000 workers, 9% of its total workforce. EBay ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces database. The database ranks the 100 largest such marketplaces by third-party GMV.

Macy’s, Amazon, and Wayfair also all cut their workforces in the first month of 2024. In addition, REI announced that it would lay off 357 employees, about 2.2% of the retailer’s total workforce, The Seattle Times reported.

Macy’s ranks No. 17 in the 2023 Digital Commerce 360 Top 1000. Amazon ranks No. 1, Wayfair ranks No. 10, and REI ranks No. 67.

Levi Strauss (No. 191) also said it would lay off 10% to 15% of its corporate workforce, and Estee Lauder (No. 43) will lay off 3% to 5%.

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The apparel retailer hired M3 as a restructuring advisor and law firm Kirkland Ellis, the WSJ reported. Its share price fell 40% by end of business on Tuesday.

Express is No. 114 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. 

Express reports growing debt

The retailer reported $274.7 million in debt in the third fiscal quarter of 2023. That was an increase from $235.4 million in the year-ago period. $65 million of the debt is from a loan the retailer took out in 2023 at 15% interest as a “short-term measure to strengthen our liquidity position,” former chief financial officer Jason Judd said in a Q2 earnings call.

The retailer is in talks with its creditors, which include Wells Fargo, Bank of America, Hilco Global and Gordon Brothers Group, Bloomberg reported.

If lenders agree to give Express more liquidity or repayment options, the retailer may avoid bankruptcy. Express is also beholden to its vendors, who could stop shipping products without a strict payment schedule, according to the WSJ report.

Express financial results

The apparel retailer, which includes the UpWest and Bonobos brands, reported net sales grew 5% to $454 million in the most recent fiscal quarter ended Oct. 28. However, it also recorded an operating loss of $28.7 million and a net loss of $36.8 million.

Express introduced an expense reduction initiative in 2022, with a goal of saving $200 million by 2025.

“The company is continuing to conduct a comprehensive review of its business model to identify actions that are expected to meaningfully reduce pre-tax costs and enable a more efficient and effective organization and has engaged external advisors to assist in this effort,” it said in a third-quarter press release.

Express saved $30 million during that third quarter and was on track to achieve $80 million in cost savings for 2023. 

The retailer undertook extensive discounting to sell apparel in the quarter, it said. That had a negative impact on margins.

“Beginning last year, we faced a number of challenges, including declines in our customer file, conversion and store traffic, driven by missteps in our merchandise strategy, most notably in women’s, where we were out of balance across categories, price points and wearing occasions,” CEO Steward Glendinning told investors. “This misalignment between our assortment architectures and customer demand significantly impacted our historic sales and margins.”

Express executive changes

Former CEO Tim Baxter announced his resignation in September, one day after the retailer announced Q2 results. Express announced Stewart Glendinning would replace him. Glendinning previously worked as group president of prepared foods and chief financial officer at Tyson Foods.

Chief financial officer Jason Judd left Express in November, one year after joining the company. The retailer has not yet named a new CFO, and senior vice president Mark Still is interim CFO.

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More than 70% of Vizio’s TVs are already sold at Walmart, Reuters reported. The deal would give Walmart control over more than 20% of the U.S. TV market.

Following the report, Vizio shares jumped 36% before closing the day up 24.6%. Meanwhile, competitor Roku’s shares fell 9% on Tuesday.

Walmart is No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. Vizio ranks No. 397. Walmart is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the top 100 online marketplaces by gross merchandise value (GMV).

Walmart and Vizio did not respond to requests for comment.

Walmart and Vizio see an advertising opportunity

A deal with Vizio could be good for Walmart Connect, Walmart’s U.S. advertising business launched in 2021. Walmart could gain access to Vizio’s nearly 18 million active users, ad viewership data, and potentially the ability to track purchases to those ad views.

Walmart Connect generated about $3 billion in sales last year and is growing quickly. In a third-quarter earnings call, chief financial officer John David Rainey said sales increased 26% year over year. Rainey said advertising will likely continue to play a large role and drive Walmart’s profitability thanks to its higher margins as compared to groceries.

In March 2023, Walmart announced it would offer personalized ads on connected TVs through a partnership with advertising company Innovid. The ads used artificial intelligence (AI) to tailor messages to audiences.

The retailer previously partnered with Vizio’s rival Roku on shoppable ads in 2022. More recently, Walmart inked a deal with NBCUniversal in November to place shoppable ads on the streaming platform Peacock. The ads gave consumers the chance to buy Walmart items featured in select Bravo shows.

Vizio also ventured into shoppable ads with a branded content series with Home Depot last year.

Home Depot ranks No. 4 in the Top 1000.

In-store advertising

Vizio coming under the Walmart umbrella also presents an opportunity for displaying ads on TVs in Walmart stores. 

Walmart has a wider reach than the largest TV network, Ryan Mayward, senior vice president of retail media sales at Walmart Connect, said at the National Retail Federation’s Big Show in January. He explained that retailers are increasingly allocating their marketing budgets to in-store uses. Walmart is experimenting with new ways to advertise in stores, including on TV screens in the electronics section, on screens in the deli and bakery sections, and on self-checkout screens.

“Physical retail is the new TV” for advertisers in terms of scale, brand safety and reaching the right audience, said Andrew Lipsman, principal analyst of retail and ecommerce at Insider Intelligence.

Competition with Amazon

Acquiring a Smart TV manufacturer would put Walmart further in competition with Amazon. Amazon ranks No. 1 in the Top 1000, and No. 3 in the marketplaces database.

Amazon owns its own line of smart TVs, branded as Fire TV.  In 2023, Amazon crossed the threshold of 200 million Fire TV devices sold. The Fire TV stick was also the only Amazon product among the top five bestsellers on Prime Day this year, the online retailer said.

17% of connected TV operating systems are owned by Amazon, while 8% use Vizio’s OS. Roku has a larger market share than both at 25%, the WSJ reported.

Amazon also has its own advertising business, which generated $24.65 billion in the fourth fiscal quarter of 2023. Amazon’s ad sales were about 10 times the size of Walmart’s in 2023.

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Hy-Vee will benefit from the nearly 600,000 shoppers in Instacart’s network that can pick up, pack and deliver orders, Instacart said.

The retailer is also able to accept EBT SNAP online payments through Instacart.

Instacart and Hy-Vee first worked together in 2018. At the time, Hy-Vee introduced same-day delivery through the Instacart app, with delivery in as little as an hour.

Hy-Vee ranks No. 199 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

Instacart fulfillment as a service

Hy-Vee was able to integrate Instacart’s FaaS into its existing ecommerce operation using an API, the retailer said. Ecommerce operations platform company UpShop facilitated the integration between Hy-Vee and Instacart, the fulfillment operator said.

“We’re proud to strengthen our partnership with Hy-Vee and equip them with the technology and tools they need to meet customers’ needs,” Ryan Hamburger, vice president of retail partnerships at Instacart said in a press release. “Our goal is to empower our partners and offer seamless and personalized shopping experiences. We’ve spent more than a decade focusing on the care and craft of grocery and are continuing to push the envelope by creating even more fulfillment solutions that help our retail partners grow and meet the evolving needs of their customers and businesses.”

Instacart also just announced the addition of Whole Foods to the platform in 14 markets across Canada. Whole Foods is owned by Amazon, which ranks No. 1 in the Top 1000. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by 2023 third-party gross merchandise value (GMV).

Where does Hy-Vee operate?

Hy-Vee has more than 550 locations across eight states in the Midwest, with headquarters in West Des Moines, Iowa. It has 75,000 employees. The supermarket chain is employee-owned. 

Hy-Vee records $13 billion in annual sales, according to the grocer’s website.

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AI will give Kroger customers a better experience through clearer and more informative product listings, the grocer said in a press release. Meanwhile, third-party sellers on the marketplace will be able to use AI for content management and copy optimizations to improve Search Engine Results Pages (SERPs).

“The Kroger Marketplace involves a complex matrix of elements that need to be effectively managed to deliver a seamless customer experience online,” Michael Murphy, group vice president of analytics and execution at Kroger, said in a statement. “From product copy and ratings to reviews and taxonomy, customers are searching out more information than ever before and providing what they need, when they need it is important. We look forward to working with Intelligence Node to deliver an amazing customer experience while empowering our sellers to improve their business performance.”

Kroger ranks No. 8 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. 

Integrating AI with Kroger’s other tech providers

Intelligence Node’s technology will work with Mirakl, which provides the platform for Kroger’s marketplace. 

“We look forward to supporting Kroger’s growth plans with our ability to provide content audit, optimization, and execution directly within the Mirakl platform to help improve shopper conversion and seller recruitment and retention,” Intelligence Node cofounder and CEO Sanjeev Sularia said.

Mirakl also provides ecommerce platforms for Best Buy, Macy’s and Saks Fifth Avenue.

Best Buy, Macy’s and Saks rank No. 7, No. 17 and No. 28, respectively.

Kroger online marketplace

Kroger launched its marketplace in 2020 as a bid to compete with Amazon and Walmart. 

Walmart ranks No. 2 in the Top 1000. Amazon ranks No. 1 in the Top 1000. Walmart is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the top 100 online marketplaces. Amazon is No. 3 in marketplaces. Kroger does not rank in the marketplace database.

Kroger’s marketplace began as an extension of Kroger Ship, launched in 2018. Kroger Ship is an ecommerce platform for non-perishable grocery items from third-party sellers. The marketplace added an additional 50,000 items. Those were mostly non-grocery products across categories including specialty items, toys and housewares.

The online grocery retailer has reported digital sales growth for several quarters in a row. Most recently in its third fiscal quarter of 2023 ended Nov. 4, Kroger digital sales grew 11% year over year. Delivery sales grew 11% over the same period. Digital engaged households grew 13%, Kroger said. 

Kroger chief financial officer Rodney Millerchip called digital sales a “growth engine” for the grocery retailer. “Everything we continue to see gives us that belief it will continue to be an opportunity to drive deeper customer engagement and growth,” he told investors in November.

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The post Kroger adds AI to its marketplace appeared first on Digital Commerce 360.