What Consumers Want
Jefferies will hold its first Consumer of the Future conference later this year in New York, but the firm released some initial findings on the subject Wednesday.
Some common themes that we’ve explored extensively here make an appearance, including convenience: Two thirds of consumers say that they are most likely to repurchase from a brand that makes it easy for them to use their products. That number drops to 38% for the next-most-popular reason–a brand that understands and reflects a consumer’s lifestyle.
More than a third–35%–of consumers say that trust is an important attribute when choosing a brand, but only 64% believe that brands are authentic and transparent. However, trust is more important for some areas of retail than others: Grocery products; airline, hotels and rental cars; phone providers; in-home entertainment; and restaurants are the five categories where trust is the second-most important attribute, after accessibility.
Social responsibility may not be the top reason that customers are loyal, but it still plays a roll, and in this area, Jefferies found that apparel and accessories brands need to play catch-up: Only 34% of consumes see them as socially responsible.
AutoZone Back in the Fast Lane?
Oppenheimer’s Brian Nagel recently met with management at AutoZone (AZO), and came away more confident that the company’s efforts in the commercial business are gaining traction, “at a potentially accelerating pace.”
Nagel writes that this is the fruition of several years of investment and operational focus. “Commercial sales at AZO represent just 20% of total revenue at the company, significantly lagging that of other leading Auto Parts Retail chains. Continued outsized top-line growth in commercial should represent a key sales driver for AZO for the foreseeable future.” He has an Outperform rating on the stock.
Sally Beauty Looks Less Attractive
Cowen & Co.’s Oliver Chen downgraded Sally Beauty Holdings (SBH) to Market Perform and lowered his price target by $2 to $16.
Chen writes that he’s worried about negative traffic trends, potential near-term execution risks, and marketing spend changes. He’s also concerned about the timing of the new loyalty program and long-term initiatives that could nonetheless hamper the near-term outlook.
Prime Time for Fashion
Amazon.com (AMZN) announced that it rolled out Prime Wardrobe, formerly available by invitation only, to all Prime customers in the U.S.
Prime Wardrobe allows consumers to try clothes, shoes, and accessories for men, women, children and babies at home for seven days, paying for only what they keep and returning other items for free.
Amazon said that shoppers of both genders are ordering plenty of denim, while its private-label brands, including Lark & Ro, Daily Ritual, Amazon Essentials, and Goodthreads, are also popular with Prime Wardrobe customers. Other well-known brands, including Levi’s, Calvin Klein, Puma and others are also available via the service.
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