BOGO NoMo as Ecommerce Rises for Shoe Carnival
Shoe Carnival, the 383-door chain, is seeing its ecommerce business continue to rise, but is still forecasting brick-and-mortar growth to outpace its ecommerce expansion in 2021 “as consumers continue to seek in-person experiences and family activities outside the home,” SCVL President and incoming CEO Mark Worden told analysts last week.
The Evansville, IN-based company intends to “modernize” 100 of its stores before the end of May 2022 and two-thirds of locations over the next 3-5 years.
Still, Shoe Carnival see ecommerce as a key strategic driver of new customer acquisitions and profitable sales going forward, despite posting an expected “moderate single-digit decline” year-over-year in 2021. FY22 and FY23 ecommerce sales are being planned to rise low-double digits as the retailer moves forward with a strategy that focuses less on regular promotions and more on margin growth and increasing shareholder value. The company’s current objective is to increase ecommerce sales, which accounted for nearly 12 percent of the topline in Q1, to 20 percent of total revenues.
With its Shoe Perks loyalty program membership up to 27 million after growing 10 percent in Q1, Shoe Carnival has eliminated BOGO half (Buy One, Get One Half Off) promotions for Q2 and likely for the remainder of 2021.
During Q1, the retailer delivered its highest quarterly sales, $328.46 million, margin and Earnings Per Share ($3.02) in its history.