Red Robin’s Q4 Projections and Turnaround Strategy Show Positive Signs, Thanks in Part to Loyalty Program
Red Robin’s preliminary fourth-quarter results, released ahead of the ICR Conference earlier this month, showed a projected 3.4% increase in same-store sales, marking a significant improvement compared to its 2024 performance. The company’s prior quarterly sales showed sequential growth of -6.5%, -0.8%, and 0.6%, highlighting a difficult year overall. Despite this, the positive Q4 projections exceeded analysts’ expectations, pushing shares into the double digits.
Key to Red Robin's revival has been a variety of initiatives, including a revamped menu, staffing adjustments, and a highly successful loyalty program. The program has proven to be especially effective in driving repeat business, with 25% of loyalty transactions in 2024 coming from new customers and 20% from lapsed users. Red Robin CEO G.J. Hart commented in an interview, “We’ve been working really hard to fix every piece of the business. These turnarounds don’t happen overnight – they take a period of time. I’ve said many times what I think that takes, and we’re fast approaching that.” Hart added, “The loyalty program also allows us to personalize our offers, which we couldn’t do before, which will then drive frequency and also drive discounts down because we will give them surprise and delight offers, but we don’t have to wholesale across-the-board discount as much.”
In addition to the loyalty program, Red Robin’s efforts to transform operations through its managing partner program and increased focus on local marketing have begun to show results. The managing partner program empowers operators to make business decisions, driving greater engagement with financial outcomes. Meanwhile, local marketing initiatives, such as community fundraisers, have helped Red Robin attract customers.
Visit the Red Robin loyalty program page here: https://www.redrobin.com/rewards
DoorDash and The Home Depot Enhance Customer Service with On-Demand Delivery Service
DoorDash recently announced a collaboration with The Home Depot, bringing home improvement products directly to customers’ doors or work sites in as little as an hour. With more than 2,000 Home Depot locations nationwide, customers can now easily access a variety of home improvement essentials through the DoorDash platform, whether looking for products for their latest DIY project, stocking up on essentials, or furnishing their homes. Professionals can also find materials for work projects while accessing restaurants for lunch breaks.
DoorDash VP of New Verticals Partnerships Mike Goldblatt said, “We’re excited to partner with The Home Depot to give DIY and Pro customers immediate access to the home improvement supplies they need. Amidst a project and out of nails, screw heads, or drill bits, on-demand delivery from DoorDash can save time and any added stress. As we continue our mission to empower local economies, we’re incredibly proud to connect consumers to more retail stores in their communities with convenience and ease.”
The Home Depot EVP of Customer Experience and President of Online Jordan Broggi added, “Combining DoorDash’s fast and convenient platform with The Home Depot’s existing same-day and next-day delivery options, homedepot.com offers our customers even more flexibility and convenience to shop in the way that best suits their needs. This is one of the many ways we’re expanding our digital capabilities to create a seamless, interconnected shopping experience.”
Visit The Home Depot on DoorDash website here: https://www.doordash.com/business/the-home-depot-12994397/?srsltid=AfmBOoqKRqIX-5abzztVch8fP9PVycN5a-qOvUn2R1eQD-qeZvIrwRkM
Best Buy Launching a New Digital Marketplace for Third-Party Sellers
Best Buy has announced plans to launch a new digital platform, Best Buy Marketplace, this summer that will allow third-party sellers to integrate their product offerings into Best Buy’s website and mobile app. Best Buy has partnered with Mirakl, an enterprise marketplace technology company that has worked with other major retailers like Macy’s, Kroger, and Nordstrom, to help facilitate the launch.
Best Buy Chief Marketplace and E-Commerce Officer Frank Bedo issued a statement, saying, “We’re incredibly excited to roll out Best Buy Marketplace later this year and provide our customers an expanded assortment of products, new categories, and the ability to bring them emerging tech more quickly. Not only will we be able to introduce new brands, but these sellers will also have the opportunity to get in front of a much larger audience of shoppers alongside other reputable brands.”
The new marketplace is part of Best Buy’s strategy to diversify its offerings and attract more customers. Sellers will gain access to Best Buy’s advertising opportunities and brand partnerships. Best Buy is optimistic that the platform will boost its position in the competitive tech retail sector. While Best Buy previously attempted to integrate a third-party marketplace, it shut down the operation after five years due to customer confusion and shifting business priorities. This time, Best Buy is hopeful the new marketplace will drive growth, especially as the company faces declining revenues, with a 3.2% drop reported in its last third-quarter earnings. Despite recent challenges, the electronics category is showing signs of recovery, and Best Buy hopes to capitalize on this with its expanded digital platform.
Learn more about the new marketplace here: https://www.bestbuy.com/site/electronics/marketplace/pcmcat248200050007.c?id=pcmcat248200050007
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Original Article Links:
Red Robin gains momentum from local marketing efforts
The Home Depot is Now on DoorDash
Best Buy to launch third-party marketplace this summer