Study: Delivery providers stumble in key metric
In the first part of December, delivery providers experienced difficulties that probably left some holiday shoppers less than merry.
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. 10 by Bizrate Insights, a division of Connexity, the timeliness trend is clearly downward.
Bizrate Insights data indicated on-time delivery rate went from almost 93.5% on Tuesday, Dec. 1 to less than 91.5% on Thursday, Dec. 10. There were small day-over-day spikes in on-time delivery rate on Saturday, Dec. 5 and Tuesday, Dec 8. Otherwise, the rate steadily declined every day in the period.
“On-time delivery is quite important to maintaining customer loyalty, especially when there is a holiday or event deadline,” said Hayley Silver, VP, Bizrate Insights. “The 2% drop that we see across this 10-day period alone equates to tens of thousands disappointed gift buyers.”
Other data also indicates deliveries so far may not be meeting consumer expectations. According to a new report rom Kurt Salmon, the average order-to-delivery time across 62 retailers studied was 6.9 days. This was 20% slower than the average of all retailers surveyed in the prior year’s study. In the remaining 10 days of holiday delivery, retailers should strive to be as timely as possible.
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Neiman Marcus hit by department store slump
The strong dollar’s influence on tourism and store traffic led the Neiman Marcus Group to report a decline in same-store sales for the first time in six years.
For the first quarter ended Oct. 31, the retailer reported total revenue of $1.16 billion, a decrease of 1.8% compared to total revenue of $1.19 billion for the first quarter of fiscal 2015. Same-store sales decreased 5.6% and the company reported a net loss of $10.5 million compared to net earnings of $0.2 million for the first quarter of fiscal year 2015. Adjusted EBITDA was $164.3 million compared to adjusted EBITDA of $194.3 million for the first quarter of fiscal year 2015.
“We, like many other retailers, are experiencing several headwinds, causing disruption in the market” said CEO Karen Katz said in a post-earnings conference call. “We remain dedicated to serving our affluent customers and delivering an extraordinary and memorable shopping experience all while continuing to focus on our financial performance.”
Katz said the strong dollar reduced international tourist traffic at the retailer's stores in South Florida, New York City, Las Vegas and other key markets.
Many department stores struggled in the fall quarter, and those struggles are expected to last into the holiday season as customers spend on electronics instead of apparel.
In August, the Neiman Marcus Group filed with the Securities and Exchange Commission to issue shares in an IPO. Citing market conditions, it abruptly delayed the plans in October, and now hopes to complete the stock offering in 2016.
The company's website suffered an outage on the crucial Black Friday recently, leaving some shoppers empty-handed.
The Neiman Marcus Group operates 42 stores under the Neiman Marcus and Bergorf Goodman banners.
Poor service. Failure again to secure data in its latest breach where 5200 lost their identities are additional reasons for the decline in sales. In the next quarter the web outage will lead to more decline in sales as well
Destination Maternity rejects takeover bid
Destination Maternity Corp. has turned down an offer from a French company that disclosed a 13.1% stake in the U.S. company, according to a Securities and Exchange Commission filing Monday.
The nation’s largest retailer of maternity apparel rejected an offer from children’s clothing company Orchestra-Premaman, which manufactures clothing for children and infants, saying the request for talks regarding a potential acquisition were not in the best interests of Destination Maternity shareholders.
"After serious consideration, and based on the preliminary discussions, the Board unanimously decided that pursuing the stock-merger proposal would not be in the best interests of our stockholders considering the risks inherent in a primarily stock based merger transaction dependent on uncertain revenue synergies," said Arnaud Ajdler, chairman of the board of Destination Maternity.
Orchestra-Premaman said in a regulatory filing Monday that it had made a cash-and-stock offer for Destination Maternity in October that was spurned, the Wall Street Journal reported. It sent a new letter to Destination Maternity’s board on Sunday informing it of its investment and reiterating its interest in starting talks.
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