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.
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Decline of the in-store shopper hits Pier 1 Imports
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.