In today’s top retail news, Gap says supply chain issues will likely persist into early next year, while Afterpay is preparing to launch a subscription service for recurring purchases in early 2022. Also, Best Buy is adding to its selection of outdoor furniture with the acquisition of Yardbird, and consumer balance sheets look strong heading into the height of holiday shopping.
Supply chain constraints battered Gap Inc. in the third quarter, leading the apparel company to revise its projections for the fourth quarter as executives expect bottlenecks to persist into 2022. In the third quarter, Gap Inc. said comparable sales increased 5% and net sales were down 1% compared to 2019. Online sales increased 48% on a two-year stack and now account for 38% of total sales.
Afterpay has unveiled a subscription solution that will launch early next year and allow customers to pay for recurring purchases in installments. Subscriptions will be available on Afterpay across online platforms in the U.S. and Australia early next year. The company plans to extend this feature to in-store purchases and bring it to other regions, including Canada, New Zealand, the U.K. and Europe.
Best Buy is adding to its growing outdoor living suite of offerings with the acquisition of premium outdoor furniture company Yardbird. Best Buy plans to sell Yardbird’s suite of products online in the coming months and Yardbird will still sell its outdoor furniture on Yardbird.com and in its showrooms.
Consumers are more ready than ever to spend in the coming weeks and months, with robust savings and pent-up demand built during the pandemic, leading several retail executives to project healthy sales going into 2022. Indeed, PYMNTS research, conducted in collaboration with Kount, found that nearly 1 in 5 consumers say they will spend more this holiday season compared to last year, and 55% say they will spend about the same amount.