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Best Buy Web Sales Grow 242% in Q2, Amazon’s New AR Shopping Feature and Gap Generates 130M in Sales While Making Face Masks


Best Buy Web Sales Grow 242% in Q2

Consumer electronics retail chain Best Buy Co. Inc. reported domestic online revenue of $4.85 billion in its fiscal Q2 that ended August 1, a company record for ecommerce revenue in a quarter. The nearly $5 billion in digital sales surpasses the company’s previous record-high by nearly 40%. Best Buy’s ecommerce sales increased 242% in Q2 primarily because of higher conversion rates and increased site traffic. Domestic online revenue accounted for 53% of domestic total revenue, up from 16% over the same period last year. Ecommerce represented 42% of sales during its fiscal Q1 which ended May 4. 

What stood out to us? The new normal for retail. Big box retailers with omni-channel strategies are poised to win.


Amazon Rolls Out New AR Shopping Feature

Amazon is rolling out a new augmented reality shopping tool, Room Decorator, that will allow you to see furniture and other home decor in your own space. While the company had experimented with AR tools in the past, what makes Room Decorator different is that it’s capable of virtually adding multiple products to a room at the same time. Therefore, you can visualize how a whole set of new products could fit together in your own space, not just one item. This feature is available across thousands of furniture products on Amazon, including products offered by Amazon and some third party sellers. 

What stood out to us? The new normal for retail. Amazon and AI strategies are poised to win.


Gap Generates 130M in Sales While Making Face Masks

Gap pivoted its supply chain early on in the COVID-19 pandemic to make face masks, and it’s quite literally paying off. The company said when it reported quarterly earnings that it brought in $130 million in sales during the period from its face masks, including sales to individuals and in bulk to businesses. The city of New York, the state of California and Kaiser Permanente are some of its clients. Each of Gap’s brands, including its namesake banner, Banana Republic and Old Navy, currently have its own masks available in stores and online, in various patterns and colors.

What stood out to us? So many opportunities here. “Would you like a belt and socks to go with your vaccination?” “Khakis, face mask and a vaccination, the classic fall look.” That preppy look is sick. 

In the headlines

  • Shop ‘til you drop: Facebook is bringing a Shop section to its app, while Instagram expands Live Shopping.
  • Mixed results: Top meal-kit retailers show mixed results in 2019 and big sales gains in 2020.
  • Elimination: Bed Bath & Beyond plans to eliminate 2,800 jobs in restructuring plan.

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