Wawa expands APT relationship to optimize merchandising strategy
New York — Convenience-store operator Wawa will license Applied Predictive Technologies’ (APT) merchandise optimization software, adding to Wawa’s current long term licenses for APT’s Test & Learn management system and Market Basket Analyzer. Wawa will leverage the merchandise optimization solution to maximize profitability of space and merchandise assortment plans, assess the impact of each merchandising change, and fine-tune merchandising strategy across more than 600 locations.
“Licensing APT’s Merchandise Optimization has enabled us to drive significant margin increases by reallocating our space in numerous categories, and to rapidly transition from analysis into implementation,” said David Prevost, director of space planning & merchandising at Wawa. “By rolling out the optimal merchandising strategy on a store-by-store basis, we are able to capture significant additional value across our network.”
CVS’s digital strategy pays off
Mobile is changing the way in which customers manage their drug store needs whether it be filling a prescription, accessing health resources or buying products, and CVS is aiming to take the lead in today’s digital space with a slew of innovative offerings that are yielding some significant results.
“As a pharmacy innovation company, we are committed to empowering our customers on their path to better health and have put in place an integrated digital strategy to help us serve those customers even better, across all channels and touch points. Delivering a superior mobile experience for CVS is a key part of that strategy, since we know our customers are digitally savvy,” said Brian Tilzer, SVP and chief digital officer, CVS Caremark.
In the last year, traffic on the CVS mobile site and app increased 250%, as consumers increasingly embrace digital and the company continues to enhance its mobile suite to serve as an extension to its bricks-and-mortar stores.
“Our own data shows steady increases in the number of customers turning to digital tools. Traffic to CVS.com increased 75% from 2012 to 2013,” added Tilzer. “Last year, there were more than a million customers each month that visited CVS.com from a tablet, and that number continues to grow, particularly on mobile devices and tablets. In fact, we saw a large number of our customers transition to mobile this past year; the proportion of our overall traffic originating from mobile devices jumped from 30% in 2012 to more than 50% in 2013.”
Clearly, the increase demonstrates how customers have come to use mobile as an effective way to manage their pharmacy retail needs whether it be filling prescriptions (37% of digital refills are mobile), accessing health resources or performing shopping-related tasks such as buying products and managing their ExtraCare coupons and rewards.
Throughout 2013, the pharmacy retailer worked to enhance and expand its mobile and digital offerings. Among its newest introductions, noted by Tilzer:
- The new Family Vitamin Center. This new health hub on CVS.com is designed to help take the confusion out of the vitamin aisle and features an interactive questionnaire and guidance tools that provide personalized supplement recommendations identifying which options are best suited to address personal wellness goals or health conditions.
- A Drug Information Center designed to empower users by offering detailed information on prescription and non-prescription medications, vitamins and supplements.
- An iPad app designed as a 3-D rendering of the store for intuitive navigation. It has such pharmacy features as voice-activated prescription management and an ExtraCare section that lets shoppers browse available coupons and rewards and digitally send them to their ExtraCare cards with the swipe of a finger.
- A mobile Drug Interaction Checker that was integrated into its mobile retail app. With the app, customers can manage, refill and view prescriptions, redeem savings and rewards, shop, upload photos and more.
Looking ahead, the pharmacy retailer will continue to focus on its digital strategy to deliver a differentiated customer experience.
“In 2014, mobile remains an important part of our digital strategy and we will continue to focus heavily on retail and pharmacy capabilities as well as integration across the enterprise, making it easier for our customers to engage with at any moment and most importantly to help our shoppers lead healthier lives,” Tilzer said.
eBay finishes strong in fourth quarter
eBay performed strongly during the holiday. Mobile exceeded expectations for the year, allowing the global commerce platform and payments leader to finish the fourth quarter on a high note.
The company reported that revenue for the quarter ended Dec. 31 increased 13% to $4.5 billion, compared to the same period of 2012.
Both Marketplaces and PayPal achieved record mobile results in 2013, each exceeding $20 billion in mobile volume. Mobile users represented 40% of eBay’s 36 million new users and accounts in 2013.
“We feel good about our performance and strong finish in the fourth quarter, with the holiday shopping season clearly showing how online, mobile and other omnichannel commerce capabilities are changing how consumers shop and pay,” said eBay CEO and president John Donahoe.
The company’s total mobile commerce volume grew 88%, with eBay reaching $22 billion and PayPal hitting $27 billion in 2013. And mobile added more than 14 million customers.
PayPal delivered a strong fourth-quarter performance with accelerating momentum in its merchant services business. Revenue increased 19% in the quarter. PayPal gained 5.2 million active registered accounts in the quarter and ended the year with 143 million, a 16% increase. PayPal’s net total payment volume (TPV) grew 25% in the quarter with 3 billion transactions generating $180 billion in net TPV for the full year. On-eBay payment volume grew 14% in both the quarter and for the full year, producing $54 billion in net TPV for the year. Merchant Services net TPV increased 31% in the quarter and 29% for the full year, resulting in $125 billion in net TPV for the year. Mobile was a key catalyst, with payments volume off eBay growing 128% for the year. Total mobile payment volume for the year was $27 billion. The fourth quarter also saw the close of the Braintree acquisition.
Marketplaces gross merchandise volume (GMV) excluding vehicles grew 13% in the quarter, totaling $76.5 billion in 2013, driven primarily by strong growth in its domestic business. Revenue grew 12% in the quarter, totaling $8.3 billion in 2013. Marketplaces gained 4.6 million active users in the quarter and ended the year with 128 million active users. Its U.S. business grew 14% in the fourth quarter, generating $30.4 billion in GMV excluding vehicles for the year. Its international business grew 12% in the quarter, generating $46.1 billion in GMV excluding vehicles for the year. Mobile continued to gain traction during 2013 with 40% of all GMV in the quarter involving a mobile device touch point, resulting in $22 billion in mobile commerce volume for the full year.
eBay Enterprise generated $1.8 billion in merchandise sales in the fourth quarter and $4.2 billion for the full year, up 11% in the quarter and 14% for the full year. It produced $1.1 billion in revenue for the full year with growth pressured by merchant and channel mix and reduction in take rate. eBay Enterprise enabled its clients to grow same-store sales 13% in the quarter and 15% for the full year, outpacing e-commerce growth rates in the U.S. Enterprise clients are increasingly adopting technology from across the eBay portfolio: PayPal has 97% coverage with growing utilization of Bill Me Later; Marketplaces has 33 Enterprise accounts live on its platform and growing penetration of its eBay Now platform.
eBay also announced that activist investor Carl Icahn has nominated two of his employees to its board of directors and submitted a non-binding proposal for a spinoff of its PayPal business into a separate company. The notice stated that companies controlled by Icahn had, earlier this month, acquired shares and derivative securities that give him an economic interest of approximately 0.82% in the company.
eBay’s board said it believes the company and its shareholders are best served by the current strategic direction of the company and does not believe that breaking up the company is the best way to maximize shareholder value. As part of eBay, the company stated in a press release, PayPal is able to leverage the company’s technology capabilities, commerce platforms and relationships with retailers, brands and large merchants worldwide. Payment is part of commerce, and as part of eBay, PayPal drives commerce innovation in payments at global scale, creating value for consumers, merchants and shareholders, the company said.