Retail Callouts (3/2): Mobile Commerce, COST, GME, LL

EVENTS TO WATCH

HIGHLIGHTS

Mobile/Tablet Commerce Stat Pack

Takeaway: For the amount of noise we hear about mobile - it's still just a drop in the bucket for most retailers. For the retail space in aggregate over the holiday season, mobile/tablet sales increased in penetration by 500bps and accounted for 22.6% of digital sales. There is one limiting factor however, and that is conversion rate where desktop rates sit at levels 4x smartphones and 1.5x tablets.

Perhaps the more interesting dynamic on mobile is the heavy weighting towards Apple powered iOS devices. Android operating devices account for about 52% of the devices in the US (compared to iOS at 42%), but only account for 22% of mobile sales. The median income of an iOS user is 40% higher than that of Android, but we don't think that explains the big discrepancy between units and sales volume. It has to be centered on functionality, an edge Apple will continue to enjoy especially after it integrates its Apple Pay feature into retail apps.

OTHER NEWS

COST- COSTCO ENTERS INTO A LONG TERM CO-BRAND CREDIT CARD AGREEMENT WITH CITI AND AN ACCEPTANCE AND CO-BRAND AGREEMENT WITH VISA

(http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-newsArticle&ID=2021495)

GME, RSH - Report: GameStop bids $2.4 million on 163 RadioShack leases

(http://www.chainstoreage.com/article/report-gamestop-bids-24-million-163-radioshack-leases)

LL - Lumber Liquidators linked to health and safety violations

(http://www.cbsnews.com/news/lumber-liquidators-linked-to-health-and-safety-violations/)

JWN - Nordstrom Launching Collaboration With Piece & Co.

(http://www.wwd.com/retail-news/department-stores/nordstrom-launching-collaboration-with-piece-co-8237666?module=Retail-latest)

JCP, M - Court Rekindles J.C. Penney's Battle With Macy's

(http://www.wwd.com/business-news/legal/court-rekindles-jc-penneys-battle-with-macys-8233964?module=Retail-latest)

GPS - Gap names Victoria’s Secret ‘Pink’ creator as new design chief

(http://www.chainstoreage.com/article/gap-names-victoria%E2%80%99s-secret-%E2%80%98pink%E2%80%99-creator-new-design-chief)

LULU - Kit & Ace, the new retail venture from the son of Lululemon Athletica Inc founder, has been resounding success

(http://business.financialpost.com/2015/02/27/kit-ace-the-new-retail-venture-from-lululemon-athletica-inc-founders-son-has-been-resounding-success/)

Ron Johnson leads $16M investment in Nasty Gal

(http://www.fierceretail.com/story/ron-johnson-leads-16m-investment-nasty-gal/2015-02-27)

LVMH - Louis Vuitton is now a 'brand for secretaries' in China

(http://uk.businessinsider.com/louis-vuitton-losing-sales-in-china-2015-2?r=US#ixzz3TCfLnreh)