Etsy Acquires Resale Apparel Marketplace Depop, Best Buy’s Stores Drive Fast Fulfillment for Online Orders and Target, Walmart Announce Overlapping Sales Events to Rival Amazon
Etsy Acquires Resale Apparel Marketplace Depop
Etsy Inc. plans to acquire Depop, a marketplace for second hand apparel and accessories, for $1.63 billion as it seeks to attract more younger consumers. The acquisition is expected to complete in the third quarter, Etsy says. Launched in 2011, Depop is a shopping app to buy and sell used apparel. Approximately 90% of Depop’s active users are younger than 26 and Depop is the 10th-most visited shopping site among Gen Z consumers (those born between the mid-1990s and mid-2010s), according to Etsy. Traffic to Depop and Etsy’s websites shows the former does attract a younger shopper than Etsy. Nearly 36% of Depop.com visitors in 2020 were between ages 18-24, compared with Etsy.com, where only 21% of visitors fell in that age range last year, according to data from web measurement firm SimilarWeb. In terms of gross sales, Depop is less than a tenth of the size of Etsy. Depop’s gross merchandise value was approximately $670 million in 2020 and grew 100% year over year, according to a statement announcing the deal. Etsy’s gross sales crossed $9 billion last year, up 101% from 2019.
What stood out to us? Depop is a great site to buy used overalls to wear while building the furniture you sell on Etsy. Not a great site for socks and underwear.
Best Buy’s Stores Drive Fast Fulfillment for Online Orders
Online sales pulled in 33.2% of Best Buy Co Inc’s. U.S. sales in its fiscal 2022 Q1 which ended May 1, up approximately double the penetration from 15% of total sales two years ago in its fiscal 2020 Q1, the consumer electronics recently reported. However, this penetration is a dip from 42.2% in Q1 of last year. This is likely because Best Buy’s physical stores were closed for weeks or months, not reopening until June 22, which pushed more of its shoppers online. U.S. online sales brought in $3.60 billion in the quarter, a 7.6% increase on a comparable basis. “Clearly, the pandemic has accelerated the evolution of customer shopping behavior,” said CEO Corie Barry in an earnings call, according to a SeekingAlpha transcript. Overall, comparable sales increased 37.2% year over year. Best Buy credits government stimulus programs and the strong housing environment, as well as market trends, including purchases on the home, cooking and remodeling, as benefitting Best Buy this quarter. The biggest contributors to the sales growth in Q1 were home theater, computing and appliances.
What stood out to us? Another big box retailer becoming an omnichannel winner.
Target, Walmart Announce Overlapping Sales Events to Rival Amazon
Target and Walmart are facing Amazon head-on, announcing longer sales events that both start on June 20, a day earlier than Prime Day. On Wednesday, Target announced that its digital sales event, Target Deal Days, will span three full days ending June 22. Consumers don't need a membership to take advantage of deals across all categories, including food and beverage. Perks like same-day fulfillment and 5% off digital gift cards are also available. Walmart's upcoming savings event, Deals for Days, features online and special store-only deals ending June 23, according to an announcement emailed to Retail Dive. The retailer said shoppers can find "Black Friday like savings" in multiple categories, including exclusive items and products from marketplace sellers.
What stood out to us? The consumer is the winner!
Before you go
What to expect during Amazon Prime Day 2021.
Look at this…
The running list of major retail deals in 2021.
Did you know…
Birchbox launches refillable beauty brand Re.fil
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