Macy's

Buy Now, Pay Later

Klarna is a Swedish ecommerce payment solutions provider and regulated bank with an extensive BNPL product among its offerings. Klarna offers many financing options, allowing users to split purchases into four biweekly installments, pay 30 days after the transaction, and use long-term (6-36 month) financing. In addition to its retailer integrations, Klarna allows users in select markets to shop directly within its app and convert purchases into monthly installments, whether they’re partnered with Klarna or not. The app, which was initially tested in the UK and a few other markets since June 2021, is available in over 20 countries including the US, Australia, Germany and <a href="https://sp-edge.com/updates/19210">Romania </a>. It also launched physical BNPL cards in the UK and US in 2022. In February 2023, Klarna introduced late fees for missing payments for customers in the UK.&nbsp;The company embedded&nbsp;<a href="https://sp-edge.com/updates/17995">various additional features</a> such as a personalized shopping assistant, creator support tools, resell functionality and a shopping feed in April 2023, followed this with the release of a&nbsp;<a href="https://sp-edge.com/updates/18845">credit opt out feature</a> in May 2023 and&nbsp;<a href="https://sp-edge.com/updates/25907">Klarna Plus</a> in January 2024. Klarna&nbsp;<a href="https://sp-edge.com/updates/27649">launched open banking-powered settlements</a> in the UK in March 2024, allowing users to make payments directly via their bank accounts.&nbsp;The company launched&nbsp;<a href="https://sp-edge.com/updates/32725">Klarna Balance and Cashback</a>, in 12 countries across Europe and the US in August 2024. Klarna Balance allows users to store money in a Klarna account and use it for purchases or installment payments, receive cash-back rewards for shopping in the Klarna app, or receive refunds for returned items. Cashback rewards users for purchases made through its app, with up to 10% cashback at participating retailers.The company generates revenue through merchant fees on each customer transaction, interest, and late fees. For its installment financing, known as “Pay in 4,” Klarna does not charge interest, but late payment fees are applicable (the lesser of USD 7 or 25% of the installment). For long-term financing, it charges interest at 19.99% APR and late payment fees of up to USD 35.Klarna has been active in the M&amp;A space, having made multiple acquisitions in the retail finance segment. In 2017 and 2018, it acquired German-based payments company BillPay and UK-based Close Brothers Retail Finance to expand its customer offering in the respective markets. Furthermore, it acquired Italian BNPL startup Moneymour in February 2020 to establish a product development hub in Milan in which Moneymour’s IP and workforce fully integrated with Klarna after the acquisition. In April 2022, Klarna acquired PriceRunner, a price comparison service provider and trained its data for the development and launch of an <a href="https://sp-edge.com/updates/22617">AI-powered image recognition tool </a>for its app in October 2023, that allowed users to find similar products by scanning items with their phones. Klarna <a href="https://sp-edge.com/updates/30722">sold its online checkout solution</a>, Klarna Checkout (KCO), to a group of investors led by Kamjar Hajabdolahi (CEO of BLQ Invest) for USD 520 million, in June 2024. Klarna&nbsp;<a href="https://sp-edge.com/updates/32819">acquired the</a> assets of&nbsp;<a href="https://sp-edge.com/companies/506781">Laybuy</a>, a New Zealand-based BNPL provider, for an undisclosed sum in August 2024. Klarna planned to relaunch the Laybuy brand in New Zealand and leverage its expertise and global presence to enhance payment flexibility for New Zealand consumers and merchants.In <a href="https://sp-edge.com/updates/16746">FY2022</a>, Klarna gross merchandise volume (GMV) grew 22% YoY to SEK 837 billion (approx. USD 83 billion) supported by more than 150 million global active customers. It also reported over 500,000 global retail partners across 45 countries. The growth in GMV was driven by momentum in the US market—revealed as its fastest-growing market and largest by revenue. Klarna reported over 34 million US consumers, with a 71% YoY growth in GMV. However, Klarna’s adjusted non-IFRS operating losses grew to SEK 8 billion (~USD 0.8 billion) driven by rising net credit losses and a dampened macroeconomic environment.Key customers and partnershipsIn November 2023, Klarna <a href="https://sp-edge.com/updates/24252">partnered </a>with <a href="https://sp-edge.com/companies/492258">Form3 </a>, to utilize Form3’s extensive payment processing capabilities supporting European transactions and payments. In September 2023, Klarna <a href="https://sp-edge.com/updates/21658">partnered with UK-based APEXX Global </a>, an API-based payment infrastructure provider, to leverage APEXX’s list of clients and grow its platform’s reach within the travel sector. In May 2023, Klarna <a href="https://sp-edge.com/updates/18751">partnered with AirBnB </a>to facilitate AirBnB users with flexible payment options for bookings within the US and Canada. In April 2023, Klarna entered into a partnership with UK-based OnBuy to integrate its BNPL offering on OnBuy’s virtual marketplace featuring over 35 million products which allows Klarna to increase its product reach further across the UK. Klarna partnered with payment acceptance solutions company Ingenico (January 2023), to allow for the use of the company's flexible payment options at the point of sale using Ingenico’s Payments Platform as a Service (PPaaS). This was followed by Klarna’s partnership with card issuing platform Marqeta in <a href="https://sp-edge.com/updates/10833?industryIds=58">June 2022 </a>, to launch its physical Visa card in the US.In October 2021, Klarna entered a multi-year partnership and national strategic alliance with Simon Property Group (Simon) to offer BNPL solutions to shoppers in Simon’s retail developments. Similarly, it entered into an exclusive multi-year partnership with global real estate developer and operator, Brookfield Properties. The deal extended Klarna’s payment plans to more than 150 shopping centers in the US.

Klarna is an e-commerce payment solutions platform for merchants and shoppers. The platform gives customers the freedom to choose how and when to pay. The company also offers direct payments, pay-after-delivery options, and installment plans. Klarna is a regulated bank known for its “buy now, pay later” model, offering shoppers interest-free financing on retail purchases throughout installments. The Klarna app enhances the shopping experience by providing top retailers with flexible payment options and cashback rewards.

B8ta is a software-powered retailer designed to make physical retail accessible for all. It is a new kind of retail store designed to improve the customer and maker experience. b8ta helps people discover, try, and learn about new tech and innovative products while empowering makers with a simple retail-as-a-service model that puts them in control. When makers have easy, direct access to physical retail, customers will, in turn, have unbiased access to what the world is creating. The company brings makers closer to customers in real life, allowing everyone to discover, try, and learn about new products first hand.  It was founded in 2015 and is headquartered in San Francisco, California.

VIPStore (佳品网), a subsidiary of Beijing Xinghe Fengshang Technology Co., Ltd., is a Chienese high-end internet marketing platform of world famous brands. Offering clients with a satisfying high-end shopping experience to meet the pursuit of extravagant life styles, VIPStore has the direct authorization to sell more than 500 international luxury brands.   VIPStore was officially launched in 2009 and its company is headquartered in Bejing, with branches in Los Angeles and Paris. The global commodity supply chain of VIPStore is widely spread all over Europe, North America, Australia, Japan and South Korea up-to-date.

Wedding Channel is a wedding portal, including planning, checklists, dresses, photos, etc.

Macy’s is an omnichannel retailer of beauty, fashion, home decor, and more products. With fiscal 2016 sales of $25.778 billion and approximately 140,000 employees, the company operates more than 700 department stores under the nameplates Macy’s and Bloomingdale’s, and approximately 125 specialty stores that include Bloomingdale’s The Outlet, Bluemercury, and Macy’s Backstage. Macy’s, Inc. operates stores in 45 states, the District of Columbia, Guam, and Puerto Rico, as well as macys.com, bloomingdales.com, and bluemercury.com. Bloomingdale’s stores in Dubai and Kuwait are operated by Al Tayer Group LLC under license agreements. Macy’s, Inc. has corporate offices in Cincinnati, Ohio, and New York, New York. Prior to June 1, 2007, Macy’s, Inc. was known as Federated Department Stores, Inc. The company’s shares are traded under the symbol “M” on the New York Stock Exchange.

<div> Macy's, Inc. (NYSE: M) is a leading American department store chain founded in 1858. Headquartered in New York City, Macy's operates approximately 500 stores across the US under the Macy's banner, as well as approximately 50 Bloomingdale's locations and 160 Bluemercury beauty stores. In fiscal year 2023, Macy's reported net sales of USD 23.09 billion. Macy's offers a wide range of products including: <ul> <li> Apparel and accessories for men, women, and children </li> <li> Cosmetics and fragrances </li> <li> Home furnishings and housewares </li> <li> Jewelry and watches </li> <li> Toys and gifts </li> </ul> The company also operates macys.com and the Macy's mobile app for online shopping. Macy's is known for its iconic events like the annual Thanksgiving Day Parade in New York City and Fourth of July fireworks show. In February 2024, Macy's announced plans to close approximately 150 underperforming stores through 2026 while investing in its remaining locations. The company aims to focus on its better-performing Bloomingdale's and Bluemercury brands by opening about 15 new Bloomingdale's stores and at least 30 new Bluemercury stores over the next three years. Macy's is also expanding its off-price Backstage concept within existing stores. These strategic initiatives are part of Macy's efforts to adapt to changing consumer preferences and drive future growth in an evolving retail landscape. </div>

Gordon Haskett gets more bullish on Macy's, upgrades shares

Marketplaces and related solutions for selling goods and services online

Ecommerce Platforms

C2C and B2C ecommerce platforms that enable users to sell a range of goods and services via their online marketplace (e.g., eBay, Amazon).

B2B ecommerce platforms that enable businesses to sell a range of goods and services aimed mainly at other businesses. These companies mostly provide wholesale/bulk purchases (e.g., DHgate, Lightinthebox).

B2C ecommerce platforms that enable businesses to sell specialized product categories (including electronics, fast fashion, or books) via their online marketplace (e.g., Trendyol, Asos, Bookshop).

Ecommerce solutions providers that offer software for customizable ecommerce and other websites or specific modules embedded in websites such as digital experience intelligence and ecommerce management support (e.g., Shopify, CommerceIQ).

Companies that buy and grow ecommerce brands on ecommerce marketplaces (e.g., Thrasio, OpenStore, Moonshot Brands).

Companies that use GenAI as a core part of their product offering for ecommerce platforms

Digital Wallets

These enable users to utilize their wallets for various transactions at virtually any merchant that accepts digital wallet payments without any restrictions on usage.

These enable users to carry out transactions at a selected list of merchants and locations. Merchants may need to set up predefined agreements with digital wallet issuers to accept payments from the wallet.

These are typically developed by merchants themselves and allow customers to use their wallets to make payments at the merchants’ own stores. Users are unable to use these wallets for transactions outside the issuing merchant.

Companies that offer white-label solutions for businesses and fintechs to set up their own digital wallet offering.

Metaverse Platforms

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<div>
 
 <ul>
 <li>Macy's has introduced Mstylelab, a metaverse platform built by Journee that allows users to join a community, design personalized digital items, and engage in fashion experiences.</li>
 <li>Mstylelab offers a representation of New York inspired by Macy's new brand, On 34th. Within the virtual environment, participants can explore and interact with digital versions of select apparel from the On 34th collection and unlock personalized digital t-shirts. All featured apparel in the experience is available for purchase.</li>
 </ul>
 
</div> Analyst QuickTake: Other retailers that sought to promote digital representations of physical products include Nike, which launched the “Airphoria” virtual world in <a href="https://sp-edge.com/updates/19622"> June 2023 </a> centered around its Air Max sneakers. Additionally, Puma launched its Black Station 2 platform in <a href="https://sp-edge.com/updates/19399"> June 2023 </a> , which allowed customers to purchase Non-Fungible Tokens (NFTs) that can be redeemed for its Fast-RB running shoe.

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