News

Study: Holiday delivery performance worsens

BY Dan Berthiaume

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.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Rite Aid Q3 revenues up 21.8%, calls special meeting to decide WBA merger

BY Michael Johnsen
Rite Aid on Thursday reported revenues of $8.2 billion, up 21.8%, for its fiscal third quarter ended Nov. 28, 2015.

The company reported net income of $59.5 million or $0.06 per diluted share, and Adjusted EBITDA of $373.2 million, or 4.6% of revenues.

Rite Aid met Wall Street expectations, as analysts polled by Thomson Reuters had forecast earnings of 6 cents on $8.2 billion in revenue.

"We are pleased with our results for the third quarter, which reflect growth in revenue, same-store sales and Adjusted EBITDA along with positive, significant contributions from our new Pharmacy Services Segment," stated John Standley, Rite Aid chairman and CEO. "We also continued making tremendous progress in strengthening our retail healthcare offering by converting additional stores to our Wellness format."

Retail Pharmacy Segment revenues for the quarter were $6.7 billion and increased 0.8% compared to the prior year period primarily as a result of an increase in same-store sales. Pharmacy Services Segment revenues, which includes its EnvisionRx business, were $1.5 billion.

Same-store drug store sales for the Retail Pharmacy Segment increased 0.9% over the prior year, consisting of a 0.3% increase in front-end sales and a 1.2% increase in pharmacy sales. Pharmacy sales included an approximate 252 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores increased 0.2% over the prior year period. Prescription sales accounted for 69.9% of total drug store sales, and third-party prescription revenue was 97.9% of pharmacy sales.

In the third quarter, the company relocated 5 stores and remodeled 96 stores, bringing the total number of wellness stores chainwide to 1,948. The company also acquired 2 stores and closed 3 stores, resulting in a total store count of 4,560 at the end of the third quarter. The company also opened 5 clinics in the third quarter, bringing the total to 75.

Rite Aid Wednesday evening announced today that it has established a special meeting of its stockholders to take place Feb. 4, 2016, where they will, among other things, consider and vote on a proposal to approve the previously announced merger agreement with Walgreens Boots Alliance.

Rite Aid stockholders as of the close of business on Dec. 18, 2015, will be entitled to receive notice of, and to vote at, the special meeting.

The merger, which is expected to be completed by the second half of calendar 2016, is subject to the approval of the merger agreement by Rite Aid's stockholders and satisfaction of other customary closing conditions.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Decline of the in-store shopper hits Pier 1 Imports

BY CSA STAFF

Pier 1 Imports says it is still confident in its omnichannel strategy despite a mostly flat third quarter in which the company struggled with the same soft store traffic impacting many other retailers.

For the third quarter ended Nov. 28, the specialty retailer said same store sales decreased 0.7%.Total sales decreased 2.5% (a 1.4% decrease on a constant currency basis) to $472.5 million, compared to $484.5 million in the third quarter of fiscal 2015.Net income $10.92 million, or 13 cents a share, vs. a profit of $17.86 million, or 20 cents a share, a year ago.

“Our sales slowed in the third quarter, primarily reflecting soft store traffic. E-commerce sales continued to demonstrate strong growth and represented approximately 16% of total sales in the period. Although top line results did not meet our expectations, strict expense control enabled us to deliver earnings per share within our guidance range," saidAlex W. Smith, president and CEO.“We’re pleased with how the Pier 1 Imports brand is positioned for holiday, including our merchandise, stores and website. However, the decline of the casual in-store shopper continues to challenge us. We are revising our full-year outlook based on a moderate start to the holiday shopping season and an increasingly competitive promotional environment.”

But Smith reiterated that the company's growth strategy is still on track.

“We remain confident in our ‘1 Pier 1’ omnichannel strategy, particularly as the retail climate continues to undergo dynamic change. Our teams are focused on reducing inventories, improving promotional effectiveness and driving efficiency in our distribution network, as well as tactical strategies to strengthen customer engagement and attract new customers to the brand.”

The company opened two stores during the third quarter of fiscal 2016, ending the period with 1,055 stores. The company expects to end fiscal 2016 with approximately 30 net store closures, with the bulk of the remaining closures expected to occur in the last week of the fourth quarter.

The company now expects annual earnings of 42 cents to 46 cents a share, down from a forecast of around 64 cents.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...