February 13, 2023
Earnings season is in full swing providing us a chance to see how companies in different parts of the retail economy are performing.
We looked to Pepsi, Under Armour, Mattel, Uber and Criteo for a diverse understanding of…
- Consumer demand and inflationary trends
- Retail channel inventory levels
- Advertising trends
The analysis illustrates it is too simplistic to say everything is fine OR the economy is cratering. “Mixed” would be an apt-one word description to take away from the results…
- Demand is okay but softening.
- Inflation is easing, but margins remain under pressure.
- Advertising demand is generally stable, although where it is spent is shifting.
In terms of specifics for eCommerce teams, we concluded:
- Uber’s success with advertising and its growing delivery business is a positive signal for Instacart and delivery to the home generally.
- Retail media is in a great position based on Uber’s traction and Criteo’s outlook, reinforced by the brands not changing their overall marketing spend.
- Most of Amazon’s inventory challenges in 4Q are retail-wide versus a company specific issue.
- Brands struggling with excess inventory should be concious of marketplace control issues that can arise from arbitrageurs.
Read on for a nuanced understanding of what these companies are predicting for 2023 and what’s keeping them up at night.
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