A number of retailers reported their fiscal year earnings this week, with many of them reporting promising online growth. Omnichannel offerings and stronger online strategies are helping them gain ground in e-commerce.
Of note is Macy’s Inc., No. 6 in the Internet Retailer 2017 Top 500, continuing its per-quarter online sales growth rate at 10% or more for 34 straight quarters, even as total sales fell. Best Buy Co. Inc. (No. 10) passed $6 billion in online sales this year thanks to a strong holiday season. Meanwhile, Kohl’s continues shifting it omnichannel strategy by putting discount grocer Aldi in 10 of its stores as it looks to better use its physical retail locations.
- During its fourth quarter earnings Macy’s announced its online revenue has grown 10% or more for 34 straight quarters. Although it didn’t break out e-commerce sales, Internet Retailer estimates Macy’s earned $7.7 billion online last year. The company’s total sales were down 3.7% for the year to $24.8 billion, but its fourth quarter rose year over year by 1.8% to $8.7 billion.
- QVC Group (No. 7), the parent of QVC, HSN and zulily, among other video retail and e-commerce brands, is rebranding as Qurate Retail Group Inc. The company’s zulily brand, which operated only online, generated $1.6 billion in revenue in 2017, a 4% bump over last year. Qurate didn’t break out e-commerce earnings on its other brands.
- Best Buy saw online sales pass $6 billion during is fiscal 2018 year, a 24.1% increase over the year before, according to Internet Retailer’s estimates based on figures in Best Buy’s prior financial releases. Best Buy’s 2018 fiscal year had one extra week than the 2017 fiscal year. Nearly half of its online sales came in the fourth quarter thanks to holiday shopping and the run up to the Super Bowl.
- Nordstrom (No. 17) generated $3.8 billion in online sales in 2017, according to Internet Retailer’s analysis of its fiscal year results. 30% of its full-price business came from online sales in 2017. Furthermore, use of omnichannel options like buy online, pickup in store and reserve online, try on in store grew 30% over the last year. The company reported sales of $15.1 billion for the year across its businesses.
- Kohl’s Corp. (No 18) grew online sales 26% during the fourth quarter, with Internet Retailer estimating $3.5 billion in web sales for the year. The company’s physical retail locations fulfilled 36% of web orders during the fourth quarter, as the company focuses on omnichannel efforts. It’s also changing what it sells in store as shopping shifts online, announcing that it would lease floor space to discount grocer Aldi in 10 stores this year.
- Gap Inc. (No. 24) surpassed the goal it set for itself of generating $3 billion online in 2017 by $100 million, the company reported. Internet Retailer estimates that’s about 21.2% growth from 2016. The fourth quarter saw 30% online growth on its own.
- Lowe’s Cos. Inc. (No. 25) hit 28% growth of Lowes.com sales in 2017, putting it at an estimated $2.9 billion in online sales for the year. The company also announced plans for a new direct fulfillment center to handle e-commerce growth, planned for launch in the third quarter of 2018.
- J.C. Penney Co. Inc. (No. 33) announced a big executive shakeup, with Therace Risch assuming the role of both chief information officer and chief digital officer. The new role comes as Mike Amend steps away from the company. The former head of omnichannel at J.C. Penney, Amend left the same role at The Home Depot Inc. (No. 8). He joined J.C. Penney after former Home Depot head of stores Marvin Ellison, who launched online shopping for the hardware giant, took the CEO role at J.C. Penney. Ellison remains CEO of the department store chain.
- AutoZone Inc. (No. 108) has struggled in the past with shipping orders directly to customers, but on the company’s earnings call this week, it said ship-to-store options are helping online orders grow and now make up about 50% of total online orders. Buy online, pickup in store is the fastest-growing sector of AutoZone’s business. However, the company declined to break out online sales numbers.
- The Vitamin Shoppe (No. 234) grew online sales 15.3%, putting it at an estimated $149.9 million in online sales in 2017. That includes growth in sales from VitaminShoppe.com directly, as well as sales from its from its Spark Auto Delivery platform that launched in the summer. The company sees subscribers to its automatic deliveries spend a further $100 annually with the retailer.