Five Below achieves market milestone
Rapidly growing extreme value retailer Five Below could see its share price improve in the coming months as it is added to an important market index.
Five Below will join the S&P SmallCap 600 index effective after the close of trading on Friday, Dec. 18. The change is noteworthy for Five Below because such moves offer trigger increased buying of the company’s shares by funds that track the performance of the index which the company is joining. Five Below replaces UIL Holdings which merged with Iberdrola USA.
The cloud offers Dylan’s Candy Bar sweet growth possibilities
An information technology modernization effort at innovative candy retailer Dylan’s Candy Bar saw the company convert to the cloud and now the sky’s the limit.
Founded in 2001, Dylan’s grew to 16 flagship and licensed locations, but along the way it outstripped the capabilities of a hodgepodge of on premise legacy systems. The quirky retailer who provides shoppers a whimsical experience began to encounter what a lot of small, rapidly growing companies experience. As the business prospered, disparate systems limited visibility into the business, required cumbersome and error-prone manual work that impacted efficiency and left the business without a single source of reliable, real-time data. There were also struggles with multi-location inventory management and a lack of customer insight hindered the business from providing an innovative, omnichannel shopping experience.
To address the situation, Dylan’s made the switch to the cloud and went with Netsuite as its solutions provider for applications such as financials, inventory and order management, warehousing and customer relationship management. As a result, Dylan’s said it now has a platform to support rapid growth, streamline business operations and fulfill its mission to transform the brand experience for shoppers.
“With NetSuite, we’ve undertaken radical change to transform the shopping experience at Dylan’s Candy Bar and bring joy and wonder to our customers’ lives,” said Erica Stevens, vice president of supply chain and information technology. “The insights we gain from a single source of data are profound and provide a data- and relationship-driven approach to serving our customers.”
Although still relatively small, Dylan’s has expanded rapidly since implementing Netsuite, going from four flagship stores and three licensed shops to what will be 16 flagship and licensed locations by January 2016.
“Before NetSuite, we didn’t have the insight into our business that was needed to innovate and grow. We really needed the unified system that NetSuite provides to capitalize on our momentum,” Stevens said.
Among the benefits Dylan’s said it has achieved are more personalized cross-channel marketing programs to a database that has doubled in size, a 66% decrease in e-commerce order processing times despite a 32% increase in order volumes, greater order accuracy and expanded retail partnerships with Nordstrom, Barnes & Noble and Neiman Marcus.
Study: Holiday delivery performance worsens
Delivery performance in the first half of December may land many providers on the naughty list.
According to analysis of what more than 130,000 shoppers said in surveys about on-time deliveries of their full orders between Dec. 1 – Dec. 15 by Bizrate Insights, a division of Connexity, time is not on their side.
Bizrate Insights data indicated on-time delivery rate went from 93.3% on Tuesday, Dec. 1 to 89.9% on Tuesday, Dec. 15. There were small day-over-day spikes in on-time delivery rate on Saturday, Dec. 5, Tuesday, Dec 8 and Friday Dec. 11.
Otherwise, the rate steadily declined every day in the period, with an especially sharp drop occurring Saturday, Dec. 12 when the rate dipped to a little more than 90% and then stayed flat before continuing downward on Monday, Dec. 14 and Tuesday, Dec. 15.
Previously, Bizrate Insights released data indicating on-time delivery rate went from 93.3% on Tuesday, Dec. 1 to less than 91.5% on Thursday, Dec. 10.
“Even though retailers and carriers all expected e-commerce growth this year over last year, on-time delivery – as defined by the customer – is down 1.7% on Dec. 15, 2015 from the same date last year,” said Hayley Silver, VP of Bizrate Insights. “Retailers and carriers started stronger in December 2015 over 2014, but then dropped under the weight of the holiday orders. Furthermore, at the time these orders were placed, many retailers had not adjusted customer expectations of when they would receive their orders.”
In addition, customers rating their on-time delivery satisfaction a 9 or 10 on a 10-point scale with on-time delivery is decreasing at nearly twice the rate of reported on-time deliveries (-6.3% compared to -3.7%) since Dec. 1, 2015. However average satisfaction with on-time delivery is decreasing at a slightly lower rate (-3.1% versus -3.7%), possibly indicating some consumer forgiveness or resetting of their own expectations.