In retail today, supply chain lockdowns and inflation play a major role in Walmart’s quarterly earnings report, while U.S. retail sales rose 0 .9% in April.
Plus, MultiPay partners with Mastercard on installment payment program, U.S. retail sales plummet in April as more consumers live paycheck to paycheck, Sally Beauty brings Nailboo in its physical stores and more.
MultiPay launches installment payments with Mastercard
MultiPay Global Solutions partners with Mastercard on an installment product to provide consumers payment flexibility for in-store and online purchases. According to a press release from MultiPay, installment billing products are expected to exceed $5.25 billion between 2020 and 2028 in Ireland.
People can set up payouts using a Mastercard with any merchant that has an Android payment terminal, and retailers can seamlessly connect to MultiPay payouts powered by Mastercard using an existing bank account. Retailers can also continue to use their current payment infrastructure for existing payment methods.
61% of companies have increased their use of digital marketplaces
PYMNTS’ Online Sellers Report, based on a survey of 317 online marketers, found that 61% of businesses are selling more in digital marketplaces today than a year ago. The larger the company, the more likely it was to use more marketplaces in 2021 compared to 2020.
Among companies with annual revenue in 2021 of more than $100 million, 68% said they use more marketplaces, while 63% of companies between $5 and $100 million said the same and 52% of companies whose annual turnover is less than 5 dollars. million. The shorter the time a company has been in business, the more likely it is to use more markets than the previous year.
Additionally, among businesses less than five years old, 69% reported using more marketplaces in 2021, compared to 60% of businesses between five and 20 years old and 54% of businesses 20 years or older.
Retail Sales Face Stall as Credit and Cash Cushions Shrink in Paycheck-to-Paycheck America
Data from the US Commerce Department for April showed retail spending grew at a seasonally adjusted 0.9% month-over-month.
Spending at restaurants and drinking places rose 2%, while spending on groceries fell 10 basis points. Spending by non-store retailers, loosely defined as e-commerce, increased 2.1%. As the PYMNTS data showed, the majority of American consumers are living paycheck to paycheck, even those with relatively high incomes.
Gen Z consumers who live paycheck to paycheck and struggle to pay their monthly bills report the lowest average savings at just $1,158, according to our ongoing findings. Millennials who live paycheck to paycheck with problems paying their monthly bills report the highest savings, with an average of $3,731.
Kwik Trip adds Coinsource Bitcoin ATMs to its 800+ outlets
Several Midwest Kwik Trips will now feature bitcoin ATMs, as bitcoin ATM network Coinsource has added machines to some of its convenience stores and gas retail outlets in Wisconsin, Minnesota, Illinois and Iowa.
Coinsource has 11% fees nationwide and promises an accurate bitcoin price with no hidden fees. Miner fees are covered for every transaction, and the partnership gives Kwik Trip Rewards members access to lower fares.
There were nearly 38,000 bitcoin ATMs globally as of April 2022. Coinsource bills itself as the only active operator with a BitLicense in the business and offers nearly instant transactions, meaning users get their bitcoin in a few minutes.
Sally Beauty adds Nailboo nail dipping powder brand to stores
Thanks to a partnership with Miami-based beauty and wellness company Underlining, nail powder brand Nailboo is coming to Sally Beauty beauty stores.
Nailboo dip powder products are non-toxic, cruelty-free, and vegan-friendly. The company has more than 400,000 customers and plans to launch in several new categories in 2022, according to a joint press release.
Three of her best-selling products are now available at Sally Beauty online and in over 2,700 physical stores in the US and Canada: the Nailboo Dip Starter Kit, individual shades of Dip Powder and Max Gloss Polish. Nailboo also plans to launch more SKUs in Sally Beauty in the near future and will expand its retail footprint this year and into 2023.
Walmart sees shift in demand for low-cost and high-priced game consoles
Walmart is making adjustments after posting its biggest profit disappointment in at least five years, citing unexpected supply chain cost pressure, rising U.S. wages and what it called unusual inflationary challenges regarding food and fuel.
The retailer’s first-quarter revenue rose 2.4% for the three months to April 30, but the costs of making those sales, as well as paying its $2.3 million employees, were surprisingly high – a combination that not only squeezed margins, but also reduced its net profit by 23%.
The Arkansas-based operator of 10,500 stores said its first-quarter sales of $142 billion were driven by a 3% increase in same-store sales in the United States, where the retailer said he was able to gain share in his lucrative grocery business, where he leads Amazon by a wide margin.
Home Depot Q1 earnings report shows DIY trend still strong
The Home Depot’s first quarter results seem to indicate that the DIY push that proliferated in early 2020 is continuing into early 2022.
The world’s largest home improvement retailer reported sales of $38.9 billion for the first quarter of fiscal 2022, up $1.4 billion (3.8%) from the fiscal 2021. Comparable sales for the first quarter increased 2.2% overall, up 1.7% in the United States. Meanwhile, Home Depot’s first-quarter net income was $4.2 billion, up from $4.1 billion a year earlier.
Following Home Depot’s first quarter performance, the company raised its guidance for fiscal 2022, forecasting total sales growth and comparable sales growth of approximately 3%, an operating margin of approximately 15.4%, net interest expense of approximately $1.6 billion, a tax rate of approximately 24.6% and diluted earnings per share percentage growth in the mid-range.
U.S. retail sales rise 0.9% in April as consumers face price hikes
U.S. retail sales slowed for the fourth straight month in April as higher prices offset reduced spending enough to lift the key economic benchmark 0.9%, according to the Census Bureau. Although still positive, this rate is lower than the revised 1.4% increase posted in March and the 2.7% increase in retail sales posted in January.
Mother’s Day and Easter shopping helped boost sales at florists and other so-called miscellaneous retailers by 4.0%, followed by a 2.1% increase in non-store or e-commerce sales and a 2% increase in bars and restaurants. Furniture, electronics, clothing, and personal and health care products also rose about 1% for the month.
On the weak side, a temporary drop in fuel prices led to a 2.7% drop in gas station sales last month, as well as an unexpected drop in the broad category of sporting goods, hobbies, musical instruments and bookstores.