Consumers growing inclination toward online shopping is encouraging retailers across the board to boost their digital offerings. Online shopping, owing to its convenience and reliability, is being widely preferred amid the ongoing coronavirus pandemic. Well, Sally Beauty Holdings, Inc. SBH has also been ramping up its omni-channel capabilities to tap the boom in the digital realm. Progressing on these lines, the company unveiled the countrywide launch of the Buy Online, Pick Up In-Store (BOPIS) service.
Let’s take a closer look.
Digital is the Way to Go
Sally Beauty’s BOPIS service is expected to establish a connection between in-store and online shopping experiences. The BOPIS facility will help customers reserve products online and pick them up from stores. Apart from this, the company’s omni-channel services include curbside pick-up, e-commerce ship-from-store capabilities and mobile app ordering.
Speaking of mobile app capabilities, Sally Beauty continues to meet consumers evolving digital shopping needs through its revolutionary ColorView Technology. The ColorView feature enables customers to virtually try on a number of products, before they actually purchase it. Markedly, the company is making use of its digital channel for providing expert solutions to customers who color their hair home. The ColorView feature is available at select Sally Beauty stores and on its mobile app. Notably, the company’s mobile app has more than 1.3 million members.
Apart from this, the company recently launched the DIY University by Sally Beauty, an educational initiative to meet the needs of do-it-yourself (DIY) customers. Through this initiative, the company offers expertise on hair color, hair care and nail routines carried out by DIY customers at home. We note that the company is undertaking prudent efforts to offer enhanced digital experiences for its DIY customer base.
Clearly, Sally Beauty’s endeavors indicate that it is resorting to every measure to enhance its digital strength and boost online sales. Markedly, the company witnessed significant e-commerce growth during the fourth quarter of fiscal 2020. Going ahead, the company plans to re-platform the Beauty Systems Group’s digital experience by adding more fulfillment options as well as providing more service for pro customers. It has also been augmenting online assortments, while also improving credit facilities on its e-commerce site.
In addition to upgrading digital offerings, the company has been focusing on enhancing strength in areas such as merchandising, BSG store operations, marketing and supply chain. It has been progressing well with cost-curtailment efforts, by focusing on reducing promotional expenditures.
We expect such well-chalked efforts to help uplift the company’s performance in the forthcoming periods. This Zacks Rank #4 (Sell) company’s shares have lost 12.2% in the past three months compared with the industry’s growth of 3.9%.
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