Simplr® CXLife Today: Recent Episodes
Madison Huffman
A weekly briefing on CX today. This roundup includes top-tier updates on consumer trends and business news that directly impacts the consumer, retail and digital space. Hosted by Madison Huffman of Simplr.
Introduction
Most things look different these days. How employees work, how we visit the doctor, even how we grocery shop. There’s no doubt the pandemic has reshaped how we operate on a daily basis. Customer experience is no exception to those changes. So how do you handle customer experience when the ultimate unexpected happens? In this second installment of Customer Experience During a Pandemic, we’ll dive into personalization and customer data.
First, here are the latest headlines.
Nike Announces Digitally-Focused Store
Nike just announced a new digitally-focused concept store–Nike Rise. The retailer opened its first location in China, with plans to open more in 2021, according to a press release. The latest concept quote “responds to the pulse of sport in a Member’s city,” end quote. Customers will experience a "Nike By You" personalization bar with this new concept and a new app feature called Nike Experiences, that will turn their city into a quote, “digitally-enabled interactive playground”, end quote. With digital experiences as the foundation of the new store concept, it’s clear Nike is leaning into the increasing importance of innovative omnichannel experiences. And with digital channels accounting for nearly 30% of total business in the quarter for the retailer and a shift to focus on direct to consumer purchasing in recent years, the emphasis on digital makes sense.
https://www.retaildive.com/news/nike-opens-latest-store-concept-nike-rise/581404/
Uber Launches Grocery Delivery
Nike’s not the only one making headlines for innovative solutions. Uber is launching U.S. grocery delivery this month, pushing into a booming market while it’s original ride-hailing model has likely taken a hit. The company will launch in Dallas and Miami, where the company recently soft-launched, before expanding to other cities. Deliveries will be handles by Cornershop workers, a grocery app acquired by Uber last year. And speaking of acquisitions, this news came just one day after Uber announced it was buying Postmates in a whopping $2.65 billion dollar deal.
https://www.retaildive.com/news/uber-will-launch-us-grocery-delivery-this-month/581211/
https://www.grocerydive.com/news/uber-buys-postmates-in-265b-deal/581054/
Walmart Reportedly Pushing Ahead with Prime Membership Competitor
It’s no secret that Amazon and Walmart have been battling head to head for quite some time. The two retail and e-comm giants can almost cause whiplash with the back and forth strategy swaps and matches, like with Walmart’s rollout of one-day shipping at an eerily similar time as Amazon. But the competition may have come to a head. According to Recode, Walmart announced its Prime membership competitor back in March but had to delay the launch due to COVID. Now, according to Recode sources, the retail giant plans to push forward this month with Walmart+, a $98 dollar yearly subscription. Members would enjoy perks like same-day delivery of groceries and select merchandise, fuel discounts, and early access to product deals. While it’s too soon to predict how Walmart’s latest pushback against Amazon will fare, especially since so many of Walmart’s highest-paying customers are also Prime members, based on the company’s full-throttle strategic moves to grow its e-commerce business and further claim its authority in the competitive grocery space, I think the program could be a worthy competitor to Prime.
Handling Customer Experience During a Pandemic: Data and Personalization
Customer data. In the digital age where privacy is a concern and transparency is key, it’s easy to go wrong. And in an environment where trust is more important than ever, it’s crucial to get it right. Collecting data is an essential element to superior online customer experiences. So what are the best practices for collecting data that’s useful without violating the trust of the very person you want to create that incredible experience for?
Find your North Star. This was a golden piece of advice that Patrick Carney, the Director of Customer Service at 4Ocean, shared at the 2020 CXLife Virtual Conference. He explained that identifying your North Star, AKA the end goal or result you want to achieve, is key to knowing what data you should be collecting and how you want to use it. Because, as he puts it quote, “The first step is determining your North Star. From there, you can reverse-engineer all the data you’re trying to acquire and be able to piece that together. Step one is figuring out what is the experience you want and reverse engineering to be able to execute upon that.” end quote.
Onto transparency. You had to know that was coming because any conversation about collecting data is usually followed by this word. But more than a buzz word, this should be a guiding principle when you’re approaching data. Trust is huge when you’re talking about providing a great customer experience. For lack of a better term, being shady will do the opposite of what you’re trying to achieve. Even the best of intentions without that transparent policy can work against you. KC Holiday, the founder of QALO, echoed this when he talked about collecting customer data at the Virtual Conference. He explained that when you start collecting customer data for the sake of collecting it and don’t make it clear to your customers what you’re doing with it and why, that can become a slippery slope. Truly understanding why you’re collecting data and connecting it back to how you’re crafting personalized experiences that stand out is crucial.
KC went on to say that regardless of what you’re collecting now, there’s an opportunity to utilize what you currently have with the team that you already have in place in a way that improves customer experiences. That’s such an important piece of advice to take away and apply to almost everything in life. There’s an opportunity to optimize the processes you already have. You have the potential for improvement at every point in your CX strategy no matter who you are or what company you work for. Dive into what you already have and finetune how it can improve your customer’s experiences.Get creative, get innovative.
Closing
Thanks for tuning into today’s episode. If you want to explore even more content about all things CX, request to join the CXLife community. Not only will you have access to on-demand content from past events, you’ll gain access to a number of community perks including networking sessions and mentorship. Until next time!
Welcome to Simplr® CXLife Today, a resource for staying up to date on the latest consumer trends, as well as retail, e-comm, and consumer technology headlines. I’m Madison Huffman with this week’s news.
Curve, a banking platform that lets you consolidate all of your bank cards into one Curve card and app, has been quietly testing its planned “Klarna rival”.
Buying used clothing is a trend that has skyrocketed within the past few years, with major players like The RealReal and thredUp leading the way in the industry. Walmart is betting the trend won’t slow down anytime soon. The company recently announced an e-commerce partnership with thredUp.
On a promising note, the unemployment rate fell to 13.3 percent and employers added 2.5 million jobs in May.
Speed matters when you’re talking to your customer.
"The fastest growing brands are responding in under an hour." - CMO of Simplr, Daniel Rodriguez
Empathy is more important than ever. Everyone you talk to is experiencing something entirely new and unexpected.
Chris Vetrano, Head of Partner and Customer Engagement at Lyft, perhaps said it best during his panel session at the Virtual Conference. Quote, “We’re all in this together. We don’t know what tomorrow looks like. When -- or if -- we go back to normal, what is that going to look like? ...Come down on the human level of ‘Hey, we didn't anticipate this happening to you. We didn't anticipate it happening to us. So, we're going to work through this together.’
Have you joined the CXLife Community yet? It’s totally free to join and get access to a vast array of perks, including listening to the virtual conference replay sessions on demand!
In this episode, I sat down with Julie Hogan, the VP of Customer Experience at Drift.
She shared some incredibly insightful answers about what she's learned about CX during the pandemic, the trends she's seeing, and examples of her own personal experiences with delivering great customer experiences during this time.
"When you're in an environment like a virtual panel, everybody's face is condensed to the exact same size and screen and you see the personal touches of where this person is in. You see their background, you see their home. So I think it's been surprising to see how this sort of breaks down barriers between brands and people and the people who are part of these companies."
We'll also have the pleasure of hearing from Julie again at the upcoming CXLife Virtual Conference! She gave a little teaser on her session about Fueling Reliable Revenue Through Customer Experience. If you want to hear even more of what's sure to be an incredible session, you can register for the free CXLife Conference here.
Thanks so much for joining us, Julie!
From the Simplr studios in San Francisco, this is your weekly briefing.
Opening
Welcome to Simplr® CXLife Today, a resource for staying up to date on the latest consumer trends, as well as retail, e-comm, and consumer technology headlines. I’m Madison Huffman with this week’s news.
Shopify has continued to perform well, becoming Canada’s second-most valuable stock on the market just last week, according to Bloomberg. Now it’s pushing into the crowded mobile commerce space with its new Shop app in an effort to help small, local businesses that are struggling and compete with other e-commerce platforms experiencing a surge during the pandemic, like Amazon.
First, here are the latest headlines.
Amazon Topped 4 Billion Visitors in March
According to data from LearnBonds, Amazon had over 4 billion visitors in March. The staggering number is more than the combined number of visitors to eBay, Apple, Walmart, and Samsung during the same period. LearnBonds also predicted that since no economies have been reopened at large yet, the number of online shoppers in April will also be high as consumers stay away from physical stores during safer-at-home orders.
Curbside Pickup Catching On
Staying at home hasn’t stopped consumers from shopping, as evidenced by the staggering number of visitors for Amazon during March. While pure online players have had an advantage during the current pandemic, many brick-and-mortar stores have relied heavily on strategies like curbside pickup. The strategy was already becoming a popular trend with shoppers before the pandemic, but since concerns over social distancing and health safety, the fulfillment option has become a go-to. April 1st through the 20th saw a 208% surge in curbside pickup orders when compared to the previous year, according to Adobe Analytics. According to the president of commercial real estate services firm JLL’s Retail Advisory Team, the trend is here to stay citing that shoppers will likely be more hesitant to visit stores even once restrictions end. The model of delivery has proven to be valuable to both customers and retailers during an unprecedented time.
Allbirds Releases New Style Amidst Pandemic
Allbirds, known for making sustainable wool runners, is making a push into the highly competitive market for athletic footwear. It’s a bold move to release a new product during a pandemic while simultaneously joining the ranks of powerhouse brands like Nike, Adidas, and Asics. When asked about the decision to release the new athletic style now, co-founder Tim Brown said the company has been working on perfecting the running silhouette for years and stated, “In the midst of all this, people are running...more than ever...we felt like the product was serving that purpose.” He also suspects that people are growing more comfortable with making purchases online and said that while the current circumstances present unique challenges, they’re trying to adapt just like everyone else to the situation.
Shopify Pushes Into Mobile Commerce With Shop App
According to a press release, Shopify debuted a mobile shopping assistant app called Shop. The app provides a range of services for users from product discovery, to payment, and real-time delivery updates. In the press release, Shopify positioned the app as a means of deepening connection and loyalty between consumers and their favorite brands in, “a world of increasing physical separation.”
Key feature of the app, including the spotlight of local brands and driving repeat business, could resonate with users. A recent survey from Ernst & Young found that 34% of respondents are willing to pay more for local products amid the pandemic. Small businesses in general have been at peril during the outbreak as store closures and safer-at-home orders have continued, forcing them to rely on pickup and delivery. Shopify is positioning the Shop app as a means of supporting those struggling at the moment.
At launch, Shop has its share of large brands, including several in the direct-to-consumer category. Allbirds, Universal Standard, ThirdLove, and Brooklinen are among the brands that were highlighted in a video promoting the app.
Shopify’s push into the crowded mobile commerce space comes as the company continues to perform well, becoming the second-most valuable company on Canada’s stock market just last week, according to Bloomberg. While it’s pushing into a crowded space, its focus on smaller, local merchants could help differentiate Shop from other e-commerce platforms seeing a surge during the pandemic, including Amazon.
Closing
Want to hear the latest innovations in CX from leaders at companies like Uber, Doordash, LinkedIn, and more? Register for the CXLife Virtual Summit on May 21st. Find the link to register below in the show notes: https://cxlife.org/cxlife-2020
Thanks for listening to CXLife Today. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Opening
Welcome to Simplr® CXLife Today, a resource for staying up to date on the latest consumer trends, as well as retail, e-comm, and consumer technology headlines. I’m Madison Huffman with this week’s news.
NBCUniversal is making its push into the shoppable commerce space. The company debuted its shoppable e-commerce platform, NBCUniversal Checkout, on Thursday.
First, here are the latest headlines.
Some Industries Still Reporting Strong Sales
While many companies are facing the impact store closures have had on business, some industries are still reporting strong sales. Pet retailers like Chewy, PetSmart, and Petco saw a boost in sales during March as consumers stocked up on supplies for themselves and their furry companions before safer-at-home orders began. For the month of March, pet food dollar growth was up 24% from the previous year, while pet supplies dollar growth was up 10% from last year. In comparison, apparel sales in March fell a whopping 52% year over year, furniture sales fell 28.6%, and sporting goods fell 23.5%. The strong sales reported for pet retailers underscore the importance of pets to families and how COVID-19 has affected consumer’s purchasing priorities.
Sycamore Partners Trying to Back Out of Victoria's Secret Deal
Sycamore Partners is now looking for a way to back out of its previously agreed-upon deal to acquire a majority stake in L Brands Victoria’s Secret. L Brands said on Wednesday that Sycamore delivered a notice to terminate their agreement. L Brands also said that Sycamore asked the Chancery Court of Delaware to allow it to rip up the agreement. The firm is now saying that by taking measures such as shuttering stores and laying off employees, L Brands violated its obligation to conduct business per the agreement between the two companies. L Brands said it will quote, “vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights, including the right of specific performance,” end quote.
Target Gaining Market Share But Shedding Profits
Target revealed that while its gaining market share as shoppers shift to online shopping, it’s also shedding profits. The company’s digital sales are up 100% year-over-year since the beginning of February, with April sales increasing more than 275%. The company said they expect operating margins to drop by more than 5% in the first quarter.
Universal Ventures Into Shoppable Commerce With NBCUniversal
NBCUniversal just debuted a shoppable e-commerce platform. On Thursday, the company introduced NBCUniversal Checkout, a direct-to-consumer platform that allows companies to connect content with their e-commerce operations, according to a press release. With the platform, retailers can create branded and editorial on NBCUniversal properties with links to featured items, use NBCU codes to connect TV viewers with items shown and integrate NBCUniversal Checkout with their social media posts, the company said. It’s the latest effort on the part of NBCUniversal to bridge the gap between content and commerce. The company said it’s trying to ease the shift from physical stores to delivery and e-commerce in the wake of COVID-19 forcing stores to close.
NBCUniversal isn’t the only company venturing into the shoppable commerce space. On Wednesday, Google announced it would allow sellers to list products without selling fees, and began testing shoppable commerce on Youtube last May.
Closing
Want to hear the latest innovations in CX from leaders at companies like Uber, Doordash, LinkedIn, and more? Register for the CXLife Virtual Summit on May 21st. The tickets are free, the learnings priceless. https://cxlife.org/cxlife-2020
Thanks for listening to CXLife Today. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Opening
Welcome to Simplr® CXLife Today, a resource for staying up to date on the latest consumer trends, as well as retail and e-comm headlines. I’m Madison Huffman with this week’s news.
In an effort to improve current systems to keep up with a spike in demand, Instacart has rolled out two new features to add speed and flexibility for customers.
First, here are the latest headlines.
Bed Bath & Beyond Sells Off One King Lane Banner
On a call with analysts, the CEO of Bed Bath & Beyond, Mark Tritton, said they sold off its One King Lane banner to an unnamed third party. The retailer acquired the home decor site in 2016. He didn’t disclose how much the banner sold for on the call. It’s one of the retailer’s latest moves in responding to the effects the coronavirus has had on business. While store closures have hit the retailer, some of its banners that are deemed essential have remained open. BuyBuy Baby launched curbside pickup at the beginning of the month and fulfilled over 11,000 orders during the first week.
Streaming Services See Spike in Demand Due to Social Distancing
While movie theatres have been crippled by the coronavirus and social distancing measures, streaming services have seen a spike in demand. The Starz app has seen a 142% increase in new customers since the stay-at-home orders began and a 44% increase in average viewership. Similarly, Disney’s streaming service, Disney+ announced it now had more than 50 million subscribers, twice the amount reported in February.
Procter & Gamble Q3 Sales Up 10%
Procter & Gamble reported that its fiscal third-quarter U.S. sales surged 10% as consumers stocked up on staples like toilet paper and paper towels. Jon Moeller, both the CEO and CFO of Procter & Gamble, said that the coronavirus pandemic could change consumer behavior permanently when it comes to certain products. Net sales rose 5% to over $17 billion dollars.
Grocery Delivery Services Adapt To Keep Up With Demand
Instacart debuted two new features to speed up its service and add flexibility amid the coronavirus pandemic. With the company’s fast and flexible feature, customers can choose to have their order delivered by the first available shopper, rather than selecting a specific delivery window. The new order-ahead feature will let customers place orders up to two weeks in advance. Previously they could only place an order up to seven days in advance.
The features are an answer to some of the frustrations customers have expressed during a time the service is seeing a spike in demand. Other delivery services like FreshDirect, Amazon Fresh, and Shipt have all seen challenges during the pandemic, with the demand for grocery delivery skyrocketing. Instacart’s CEO said in a statement that the demand they’ve seen in the past few weeks was what the company expected to see in the next two to four years. The company has seen a 300% increase in customer volume year over year and has added over 150,000 additional shoppers to its pool of contractors in the past two weeks.
While these grocery delivery services are working to adapt their systems to the current circumstances and staffing up as quickly as possible, it is taking time to deal with the strain on their existing systems and course correct.
Closing
Most leaders feel overwhelmed when the unexpected impacts the customer experience. With Simplr customer service, you’ll always have on-demand staffing to answer every customer question–so you can be in control and stay focused on growing the business. Visit simplr.ai to learn more.
Thanks for listening to CXLife Today. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Opening
This is Today in Five with Madison Huffman, for today, Saturday, April 11th. Here are this week’s headlines.
According to a report from App Annie, consumers spent over a whopping $23.4 billion dollars via app stores in the first quarter, becoming the highest quarter ever for consumer spending in that area. The App Annie report adds further context to how consumers are adjusting their media consumption and commerce online during the coronavirus pandemic.
Here are the latest headlines.
Panera Making Dairy Products and Bread Available for Pickup
As common essentials like dairy products and bread become more difficult to find on the shelves at grocery stores, Panera is making these select items available on their menu for pickup or delivery. The food company is even offering select produce like tomatoes and avocado to its customers. Panera’s CEO said , “...it is an incredibly stressful time when it comes to putting wholesome food on the table, and we knew Panera could help...With this new service, we can help deliver good food and fresh ingredients from our pantry to yours, helping provide better access to essential items that are increasingly harder to come by.”
Amazon Prime Day Postponed
Prime Day, normally held in July, has reportedly been postponed through at least August. The e-commerce giant is also anticipating a $100 million dollar loss because it may have to deeply discount devices, according to Reuters. It’s yet another adjustment that shows how changing consumer behavior and the coronavirus pandemic are changing behavior both of shoppers and businesses.
Walmart Hired 100,000 Employees
Walmart has hired another 100,000 employees to keep up with demand during the pandemic. The company’s VP of Corporate Affairs said many of Walmart’s new employees come from hard-hit industries and are using the jobs to stay afloat until their traditional jobs come back online. The retailer has seen a surge in demand for products like hair color, beard trimmers, and sewing machines as shoppers stay indoors and make their own cloth masks.
A Report Reveals Mobile Apps Saw Record Spending In Q1
According to a report from App Annie, consumers spent over a whopping $23.4 billion dollars via app stores in the first quarter, becoming the highest quarter ever for consumer spending in that area. Consumers spent $15 billion on iOS and $8.3 billion on Google Play. App Annie attributed the growth in app downloads and purchases to the COVID-19 outbreak, as governments impose quarantines and self-isolation, leaving consumers with more time to be on their mobile devices.
The App Annie report adds further context to how consumers are adjusting their media consumption and commerce online. Ad Colony reported that mobile gaming increased 24 percent in the last two weeks of March as people consume entertainment through their mobile phones. A similar trend has emerged in the e-commerce sector. Grocery delivery apps have seen a spike in downloads as consumers shift their ordering online.
Closing
Most leaders feel overwhelmed when the unexpected impacts the customer experience. With Simplr customer service, you’ll always have on-demand staffing to answer every customer question–so you can be in control and stay focused on growing the business. Visit simplr.ai to learn more.
Thanks for listening to this latest episode of Today In Five. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Opening
This is Today in Five with Madison Huffman, for today, Monday, March 30th. Here are today’s headlines.
The COVID-19 pandemic has drastically affected brick-and-mortar retail, but what about e-commerce? Some retailers are relying on digital sales to make up for lagging brick-and-mortar performance, but data shows even e-commerce has slowed for companies.
Here are the latest headlines.
Joann Stores Opening Classrooms to Help May Stuff for Healthcare Workers
Joann Stores has launched an effort to make items for healthcare workers. The arts and crafts retailer announced it would be opening its classrooms to any who would want to help make essential items for healthcare workers, including facemasks and covers, gowns, and other items to donate to American hospitals. Participating locations will offer sewing machines, materials, and guidance to help customers safely make the items. Classroom occupancy will be limited to adhere to CDC recommended guidelines for social distancing and local restrictions.
H&M Offers Supply Network to EU
Sweden’s H&M, the world’s second-largest fashion retailer, said on Sunday it would use its supply network to source personal protective equipment for hospitals in the European Union to help curb the spread of the coronavirus. H&M said it had offered the EU its help and was now trying to understand which needs were most urgent while working out what its supply chain could deliver. In an email, an H&M spokesperson said, “The EU has asked us to share our purchasing operations and logistics capabilities in order to source supplies, but in this urgent initial phase, we will donate the supplies.”
Allbirds Offering Free Shoes to Healthcare Workers
Sustainable footwear company, Allbirds, is joining other retailers in finding ways to support healthcare workers during the coronavirus pandemic. The San Francisco-based company announced it is supporting healthcare workers in the United States by offering free shoes. In a tweet, the company said, quote, “We are donating shoes to anyone who works in healthcare and is on the front lines of fighting COVID-19 right now.” The company also added, “To our US healthcare community – we want to thank you for being on the front lines and helping to keep our communities healthy.”
COVID-19 And Its Impact On E-commerce
COVID-19 continues to impact retail around the globe. Many stores that are considered unessential are being forced to close to curb the spread of the coronavirus. While physical retail stores are closing, many businesses have turned to e-commerce to make up for the lack of physical foot traffic.
Some retailers are even waiving minimum order requirements to help e-commerce efforts along, like offering free shipping or free returns for a limited time. Yet, other retailers like Victoria’s Secret, TJMaxx, and Marshalls, have also halted their digital sales. Most site the need to protect workers in those operations and the goal of slowing the spread of the disease. Retailers that are continuing with their e-commerce efforts have sent assuring messages to customers detailing the efforts and steps they’re taking to sanitize distribution centers and extra measures to keep employees and consumers safe.
Pure-play retailers may have thought they’d escape the consequences of rapidly changing consumer behavior by running few or no physical retail spaces, but performance agency Within found that their revenue fell 63 percent on March 18 compared to its pre-virus benchmark period. Conversion rates were also at an all-time low at negative 35 percent versus pre-COVID-19.
The mixed responses and latest data show that even e-commerce isn’t untouched by the current circumstances as retailers scramble to drastically shift their strategies and operations.
Closing
Most leaders feel overwhelmed when the unexpected impacts the customer experience. With Simplr customer service, you’ll always have on-demand staffing to answer every customer question–so you can be in control and stay focused on growing the business. Visit simplr.ai to learn more.
Thanks for listening to this latest episode of Today In Five. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five with Madison Huffman, for today, Monday, March 23rd. Here are today’s headlines.
Large retailers are making dramatic changes in light of the current COVID-19 pandemic. Companies like Amazon, Best Buy, Target, and Walmart have taken steps like increasing employee wages, hiring more employees, and providing paid leave as the economic landscape and consumer demand changes rapidly.
Here are the latest headlines.
COVID-19 Affecting Shipping and Fulfillment
Unsurprisingly the COVID-19 pandemic is impacting shipping and fulfillment. New study findings from delivery experience management company, Convey, show that shipping volume for cleaning and household supplies is up 52 percent. At the same time, order fulfillment and delivery are experiencing significant delays. According to the findings, fulfillment time has increased by 40 percent during the past three weeks. The trend has been especially evident in large-format deliveries, indicating supply chain slowdowns.
Best Buy Goes "Contactless"
Starting yesterday, Best Buy is limiting its U.S. stores to contactless curbside pickup, allowing only its employees into stores, according to a statement from the company. The company has also suspended its in-home installations and repair services, as well as its product trade-in and recycling services. The changes come in response to the rapidly evolving Coronavirus situation and as they see a surge in demand for products needed to work or learn from home.
Walmart Plans to Hire 150,000
Retail giant, Walmart, is planning on hiring 150,000 people in the midst of the pandemic to help keep up with consumer demand. The roles would initially be temporary, though many will convert to permanent roles over time, Walmart said. The roles are based in the retailer’s stores, clubs, distribution centers, and fulfillment centers. The company also announced $550 million dollars in bonuses to reward its workers. Walmart’s President and CEO, Doug McMillion, said, “We know millions of Americans who are usually employed at this time are temporarily out of work, and at the same time we’re currently seeing strong demand in our stores...We’re looking for people who see Walmart as a chance to earn some extra money and perform a vital service to their community.”
Target Increasing Benefits Amid COVID-19 Outbreak
Target joins Walmart on a growing list of retailers increasing the benefits for its employees in response to COVID-19. The company is investing more than $300 million dollars in added wages, a new paid leave program, bonus payouts, and associate and community relief fund contributions. Full-time and part-time hourly associates working in stores and distribution centers will receive a two-dollar pay increase through at least May 2nd. In addition, U.S. team members who are 65 or older, pregnant, or who have underlying medical conditions as defined by the CDC now have access to 30 days of paid leave if they prefer not to work. Target’s CEO Brian Cornell said, “With each passing day, it’s clearer how indispensable our team is to communities across the country as our guests cope with the coronavirus...Increasing their compensation for a job incredibly well done and ensuring continued compensation for those who need to care for themselves and their families is a reflection of our company’s values and simply the right thing to do.”
Closing
Most leaders feel overwhelmed when the unexpected impacts the customer experience. With Simplr customer service, you’ll always have on-demand staffing to answer every customer question–so you can be in control and stay focused on growing the business. Visit simplr.ai to learn more.
Thanks for listening to this latest episode of Today In Five. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five with Madison Huffman, for today, March 19th. Here are today’s headlines.
There’s no escaping the dramatic effects of COVID-19 as it spreads across nations around the world. It’s changing the retail landscape dramatically as companies scramble to put safety measures into place, including shuttering stores temporarily to help flatten the curve.
Here are the latest headlines.
Amazon Making Major Changes Due to COVID-19
As the coronavirus epidemic rages on, Amazon has limited Marketplace fulfillment to medical supplies and household essentials. According to a notice, Amazon has suspended the intake of most products from U.S. and European Union Marketplace sellers into its fulfillment centers through April 5th. The e-commerce giant is temporarily quote, “prioritizing household staples, medical supplies, and other high-demand products coming into our fulfillment centers so that we can more quickly receive, restock, and ship these products to customers,” end quote.
It’s one of the latest measures Amazon has taken as the current epidemic rapidly changes consumer behavior and effects how retail operates. The e-commerce giant will also open 100,000 full and part-time positions in its fulfillment centers and delivery network as it sees a spike in demand for e-commerce due to quarantines and social distancing. In a company blog post, Amazon described its labor requirements as,“unprecedented for this time of year.” Amazon will also increase pay for hourly workers by two dollars through April.
Retails Making Closures in Response to COVID-19
Amazon isn’t the only company changing day-to-day operations. Retailers from Apple to Lululemon have joined schools, workplaces, and churches in shutting their doors temporarily to contain the spread of COVID-19. The American Dream mall in New Jersey announced last week it will be postponing the opening of several retailers and the DreamWorks Water Park, which was slated to open March 19th, and is temporarily closing the mall entirely. The closures come as the CDC recently recommended canceling or postponing gatherings of 50 or more people for the next eight weeks.
Grocery Delivery / Meal Delivery Subscriptions Seeing Spikes
As Americans across the nation practice social distancing, grocery delivery services like Instacart and Amazon Fresh have seen spikes in demand. But other food startups are also seeing increased consumer demand and we expect will continue to see increased demand for the foreseeable future.
Meal delivery kit subscription company, Blue Apron, has seen its stock prices more than double this week. Daily Harvest, which sells smoothies and soups, posted on social media that it was doubling its inventory in response to an increase in demand. Trade Coffee reported a 10x increase in new subscriptions and Real Good Foods, which sells a line of Keto-friendly foods, said it has seen a 20x increase in its direct-to-consumer business.
E-commerce food businesses are facing a similar dilemma to makers of hand-sanitizers, soap, and other in-demand products, which is how to keep up with demand. While these food startups have only experienced sales bumps within the past few weeks, it’s likely to be a trend that sticks around and they’re preparing for the unprecedented demand for the foreseeable future. The chief marketing officer of Real Good Foods said, “People with autoimmune issues — they are not going to be going to Chipotle in 6, 12, 18 months because they are just scared. This is going to change behaviors, for sure over the next 18-24 months.”
Closing
Most leaders feel overwhelmed when the unexpected impacts the customer experience. With Simplr customer service, you’ll always have on-demand staffing to answer every customer question–so you can be in control and stay focused on growing the business. Visit simplr.ai to learn more.
Thanks for listening to this latest episode of Today In Five. Until next time.
Thanks for joining us on today’s episode of Today In Five. I’m your host, Madison Huffman, and I’m reporting on the latest headlines on digital disruption.
Today’s Quick Headlines:
Wayfair’s losses continue to grow despite the online home goods retailer’s continued sales growth.
Shortly after selling a majority stake in its Victoria’s Secret brand, L Brands has big plans for its Bath & Body Works business.
Panera launched an unlimited-coffee subscription last week that costs $9 dollars a month.
Walmart’s Answer to Prime
Walmart just created its answer to Amazon’s Prime membership. Walmart+ is the retailer’s new subscription program that will offer perks such as unlimited same-day grocery delivery and more.
Want to stand out? Simplr can help deliver wow moments for your customers through unparalleled customer service support. Visit simplr.ai to learn more.
Resources:
https://www.retaildive.com/news/wayfair-posts-eyewatering-985m-loss-for-the-year/573223/
https://chainstoreage.com/bath-body-works-has-big-store-expansion-plans
https://www.businessinsider.com/panera-unlimited-coffee-subscription-cost-how-to-sign-up-2020-2
https://www.retaildive.com/news/walmarts-answer-to-amazon-prime-is-in-the-works/573225/
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five with Madison Huffman, for today, Friday, February 28th. Here are today’s headlines in digital disruption.
Amazon has debuted Amazon Go grocery this week, a cashier-less grocery store that further pushes the giant into the industry.
First, here are the latest headlines.
Disney CEO Iger Steps Down
Disney CEO Bog Iger has stepped down. The change will take effect immediately but will be staying on as the company’s executive chairman, Disney announced. Iger, who pushed back his retirement several times, will continue overseeing creative projects through 2021. In a statement, he said now was, “the optimal time,” to transition following the company’s launch of its direct-to-consumer business and completes its integration of 21st Century Fox.
Target's Focus on E-Commerce "Paying Off"
A new report from eMarketer revealed that Target’s focus on building its e-commerce operations is paying off. The company, who used to rank number 11 in the U.S. in e-commerce sales, is now poised to take the number 8 spot. According to eMarketer, Target’s e-commerce business will jump 24 percent in 2020 to $8.34 billion dollars and its share of the U.S. market will grow to 1.2 percent. Target will also inch past Costco this year, with only $10 million in online sales separating the two companies.
Google Driving E-Commerce Sales Better Than Facebook and Instagram
According to a new study, Google is a better driver of e-commerce sales than social networks Facebook and Instagram. The study suggested that the search giant reaches consumers who are more intent on making a purchase. Google’s ability to drive better sales and web traffic indicates a key difference in how consumers use the respective platforms. Google and Facebook, which owns Instagram, have boosted their e-commerce efforts over the past few years to address growing competition with Amazon, which has a rapidly growing digital advertising business and is the first place many consumers go to find a product.
Amazon Opens Cashierless Supermarket In Latest Grocery Push
Amazon rolled out its checkout-free Go technology in a large grocery store and plans to license the cashier-less system to other retailers. Amazon Go Grocery opened on Tuesday and uses an array of cameras, shelf sensors, and software to allow shoppers to pick up items and walk out without stopping to pay or scan merchandise. Accounts are automatically charged through a smartphone app once shoppers leave the store.
The company has operated a string of Go-branded convenience stores since 2018, but improvements in camera technology and its use of algorithms have allowed it to build a larger-scale format. Amazon hopes the grocery store will serve as a showcase for its technology as it seeks to sell its systems to other businesses.
Amazon’s cashier-less stores have inspired other retailers and tech startups to explore similar technology, including models that feature smart shopping carts. Some startups, including Grabango Co, have signed deals with regional grocery chains.
Go Grocery is part of a broader expansion of Amazon’s presence in grocery. Aside from the more than 500 Whole Foods stores, the company recently confirmed plans to start a separate grocery chain with human cashiers, with the first store planned for the Los Angeles area this year. Grocery delivery has also been a growing focus. Amazon has used Whole Foods locations to deliver food to customers, and the company also offers delivery in some areas through its Amazon Fresh unit.
As Amazon has gained a strong foothold in the industry, Walmart and Target have also ramped up their grocery delivery efforts. Walmart this month said online grocery sales helped boost its U.S. e-commerce revenue by 35 percent in the fourth quarter.
Closing
Most leaders feel overwhelmed when the unexpected impacts the customer experience. With Simplr customer service, you’ll always have on-demand staffing to answer every customer question–so you can be in control and stay focused on growing the business. Visit simplr.ai to learn more. That’s s-i-m-p-r.ai.
Thanks for listening to this latest episode of Today In Five. We’ll see you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
L Brands has reached a deal to sell a controlling stake of Victoria’s Secret to Sycamore Partners. The deal will see longtime CEO, Les Wexner, step down from the company. “I have decided that now is the right time to pass the reins to new leadership.”
Quick Headlines:
- Banana Republic announced a new partnership with Postmates, introducing on-demand delivery in select markets.
- Gap Inc. is the latest retailer to partner with apparel resale company, thredUp.
- Morgan Stanley pushed further into retail with the largest acquisition since the financial crisis.
Find out how Simplr can cut your customer service response time through cutting-edge technology and on-demand talent at simplr.ai.
Tim is a co-founder of Vincero, a rapidly growing direct-to-consumer lifestyle brand based in San Diego. Vincero designs and manufactures modern accessories that elevate your look, last a lifetime and don't cost a fortune.
Head to vincerowatches.com to find incredible watches and an incredible customer experience waiting for you.
From the Simplr studios in San Francisco, this is your daily briefing.
Opening
This is Today in Five with Madison Huffman, for today, Tuesday, February 18th. Here are today’s headlines in digital disruption.
The coronavirus epidemic has had a dramatic global impact, even on the global economy. Apple’s warning that it wouldn’t meet revenue expectations underscores those far-reaching effects.
First, here are the latest headlines.
Rent The Runway Chooses Amazon Exec for Chief Supply Chain Officer
Rent The Runway is tapping former Amazon exec as chief supply chain officer. Bringing on board a veteran in operations will help the popular startup fine-tune its supply chain. The company’s CEO and founder said, “Brian’s leadership and experience in operations and logistics will be a valuable asset to the company.”
1-800-Flowers Purchases PersonalizationMall.com from Bed, Bath & Beyond
Bed, Bath & Beyond is selling its personalized gift e-retailer, PersonalizationMall.com to 1-800-Flowers.com for $252 million dollars in cash, according to press releases from the company. The flower and gifts site will get the PersonalizationMall.com website as well as a “new, state-of-the-art...production and distribution facility…” The deal is subject to customary closing conditions, including scrutiny under antitrust regulations, according to the companies, which say they have signed a definitive agreement. The CEO of Bed, Bath & Beyond said the sale would help streamline the company’s operations and hinted there may be more of that to come.
Bezos Gifts $10B to Fund Climate Change Programs
Amazon’s CEO, Jeff Bezos, just made the second-largest charitable gift in recent history. The Amazon founder is giving $10 billion dollars to a new initiative that will fund programs to combat climate change. He announced the donation on Monday through an Instagram post. In his post, he said, “Climate change is the biggest threat to our planet. I want to work alongside others both to amplify known ways and explore new ways of fighting the devastating impact of climate change on this planet we all share...This global initiative will fund scientists, activists, NGOs — any effort that offers a real possibility to help preserve and protect the natural world.”
Apple Warns It Won’t Meet Quarter Revenue Expectations Because Of Coronavirus Epidemic
Apple on Monday said it expects to fall short of revenue goals in the current quarter because of the coronavirus outbreak, underscoring the far-reaching effects of the virus on the global economy. In a statement to investors, Apple said that while factories in China were reopening, iPhone production in the company was ramping up more slowly than expected. The company said, “These iPhone shortages will temporarily affect revenues worldwide.” Demand for iPhones in China has also dampened, where all the company’s stores have shuttered, according to the statement.
Apple’s success over the last decade, its value increasing by more than $1 trillion dollars, has largely depended on its ability to harness the power of China’s massive labor force and its network of manufacturers who can meet the demand for the world’s most popular gadget: the iPhone. But that dependence on China is now at risk.
Apple’s announcement added to the mounting economic fallout from the coronavirus epidemic. Analysts expect the global economy to shrink this quarter for the first time since 2009 as a consequence of the outbreak.
Closing
Thanks for listening to this latest episode of Today In Five. Don’t forget to subscribe and leave a review. We’ll see you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five with Madison Huffman, for today, Monday, February 17th. Here are today’s headlines in digital disruption.
DTC has been a rapidly growing trend in the age of online shopping. According to Shopify’s COO, direct-to-consumer retail is more than just a fad, it’s here to stay.
First, here are the latest headlines.
Stitch Fix Shop Your Looks Feature Out of Beta
The new Stitch Fix Shop Your Looks feature is out of beta and available to all women’s and men’s customers in the U.S. The company’s CEO announced in October that the company was testing the algorithm-led sub-service, which allows customers to choose among items that would go well with pieces they already own, rather than leaving that choice up to their stylist. By December, she reported the beta test had been expanded to about a third of its female clientele and would extend to men. She also said that those using the feature interacted with the company multiple times and that it boosted sales. The new tech introduces a level of traditional e-commerce that departs from the company’s curated boxes.
L Brands Close to Deal to Sell Victoria's Secret
L Brands is nearing a deal to sell its Victoria’s Secret brand to private equity firm, Sycamore Partners, in a deal that could be announced as soon as this week, according to people familiar with the matter. For Sycamore, a deal to buy Victoria’s Secret would be a bet on a dominant player in the large intimate apparel industry. Bras are a $7.2 billion dollar category, and Victoria’s Secret, which also sells, pajamas, perfumes, and other accessories, had roughly $7.4 billion dollars in sales last year. Sycamore would also be betting it could reinvigorate the lingerie brand after it has faced several setbacks and losing share to competitors like ThirdLove, who prioritize comfortable styles.
Walmart Shutting Down JetBlack
Walmart is shutting down its JetBlack personal-shopping service. Most of its 350 employees will be laid off after the retailer failed to find investors for the unprofitable operation. The company will stop delivery services on February 21st, according to a Walmart spokesman. Last year, Walmart worked to spin-off the unit, which had less than a thousand customers as of last year. The retailer discussed an investment with several potential partners, but people familiar with the matter said those talks have ended. The news comes at a time when Walmart is working to stem its losses from its smaller e-commerce units, selling acquired brands or cutting staff in those businesses.
Shopify COO Says DTC Is “No Longer A Fad”
DTC retail has emerged as a key strategy in the age of online shopping, with big brand names like Nike and Tesla Motors taking advantage of the trend. Now one of the top e-commerce platforms is saying their performance speaks to a broader shift in digital commerce. According to Shopify’s COO, the company’s holiday quarter performance is indicative of emerging retail trends. The e-commerce platform recorded almost $3 billion dollars of global sales over the Black Friday to Cyber Monday period last November, a 61 percent increase from the year prior. In an interview, the COO said, “That is the example where direct-to-consumer is no longer a fad...It is now a steady-state, and it’s being powered by Shopify. We’re at the center of that.”
Shopify’s holiday numbers are part of a better-than-expected fourth-quarter earnings report. The company grew its top line by 47 percent year over year to $505 million dollars in the December quarter, crushing analyst estimates. The COO said, “This is the story of independent brands and entrepreneurs doing really, really well, and the consumers are voting with their wallets...I think Shopify is powering the entrepreneurship movement.”
Closing
Most leaders feel overwhelmed when the unexpected impacts the customer experience. With Simplr customer service, you'll always have on-demand staffing to answer every customer question—so you can be in control and stay focused on growing the business. Head to Simplr.ai to learn more. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of Today In Five. We’ll see you tomorrow.
We had the pleasure of talking to Karin Dillie from The RealReal. She is the Director of Trusts and Estates at The RealReal. She advises professional fiduciaries, lawyers and wealth managers on the sale of estates, trusts, and single-owner collections.
Karin started her career at Sotheby's in the Valuations and Estate Management Department, where she oversaw the appraisal of art and home decor for high net worth clients. At Sotheby's, she then proceeded to oversee the sale of the largest trusts, estates and single-owner collections.
Karin is a graduate of the University of Florida and received her Master's in Business Administration from Yale School of Management. She's also a member of the San Francisco Estate Planning Council.
The RealReal is a leading force within the luxury resale industry, providing consumers everywhere an authentic and sustainable resource for unique luxury items. Visit them at therealreal.com or find a location near you.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five with Madison Huffman, for today, Thursday, February 13th. Here are today’s headlines in digital disruption.
Harry’s and Brandless both suffered major setbacks this week, revealing the limits and struggles direct-to-consumer disruptors are facing.
First, here are the latest headlines.
Goop and Banana Republic Launch Co-Branded Collection
Gwyneth Paltrow’s goop brand is launching a co-branded online apparel collection and podcast series installment with Banana Republic. The goop Edit for Banana Republic will launch in spring 2020 and feature five everyday essentials. The capsule will launch exclusively on goop.com February 11th and on Banana Republic’s e-commerce site beginning February 25th.
Saks Off 5th Being Led by Former Nordstrom Rack Exec
Former Nordstrom Rack executive, Paige Thomas, will now lead Saks Off 5th, effective immediately. Thomas was most recently the general merchandise manager of men’s and kids at Nordstrom’s full-price business but was general merchandise manager at its off-price Nordstrom Rack operation for more than five years. She oversaw growth in both e-commerce and physical retail while there, including the opening of more than 100 stores and the launch of the Rack website. In tapping Thomas, Saks Off 5th is regrouping under the direction of an executive who once helped lead a powerhouse in the segment. The CEO from Hudson’s Bay Company said, “With her deep merchandising background and instinct to quickly capitalize on digital opportunities, I believe Paige is the right leader to further evolve Saks Off 5th and unleash its potential as a true off-price retailer.”
Spotify Purchasing Ringer
As part of its push into podcasting, Spotify is reportedly paying close to $200 million dollars for the Ringer, a growing online sports and pop-culture outlet. Spotify is expected to detail the costs in a regulatory filing soon. The streaming service has now spent more than $600 million dollars to acquire four companies that can accelerate its podcasting business. The company is already the world’s largest paid music service and is challenging Apple as the dominant way people listen to podcasts.
What Harry’s And Brandless Mean For DTC Disruptors
This week, two promising DTC companies suffered major setbacks. Grooming company, Harry’s, learned that Edgewell is dropping its bid to take it over after the FTC sued to block the deal on antitrust grounds. And online consumer goods company, Brandless, shuttered its operations. The brands’ stumbles have a lot in common, notably, an inability to scale on their own. And they reveal the limits of DTC retail.
The principal at venture capital firm Comcast Ventures told a National Retail Federation audience that, “the pendulum has swung,” , regarding venture capitalist expectations, noting that it’s becoming easier to launch a direct-to-consumer company than to grow or sustain one. The fate of Brandless is a prime example of that swing.
The company launched in 2017 saying that each of its items would only be three dollars thanks to the company’s elimination of the middle man and that by going directly to the consumer, Brandless claimed it saved some 40 percent, which was passed along to its customers. The company received backing from SoftBank in 2018, allowing it to expand into new categories. Now, after a little over two years, the company is shutting down.
The two companies pose an interesting example of the changing retail landscape. The disruptor DTC brands have their limitations. The fate of Brandless seems clear, less so Harry’s. But most if not all DTC brands are likely grappling with the same realities of customer acquisition, the challenge of turning a profit, and a need to stand on their own.
Closing
Simplr can help you scale your customer service at any stage of growth. Head to Simplr.ai to learn more. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of Today In Five. We’ll see you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Wednesday, February 12th. I’m your new host, Madison Huffman, reporting on the latest developments in the modern business world. Here are today’s headlines in digital disruption.
Strip malls, once historically ignored by some retailers, are now becoming a valuable alternative to traditional malls.
First, here are the latest headlines.
Brandless Shutting Down
DTC retailer, Brandless, is shutting down. A report from Protocol broke the news, noting the company would stop taking orders and halt its business operations. 90 percent of Brandless staff will be laid off and the remaining employees will fulfill existing orders and evaluate acquisition opportunities. In a statement on the company’s website, they said, “While the Brandless team set a new bar for the types of products consumers deserve and at prices they expect, the fiercely competitive direct-to-consumer market has proven unsustainable for our current business model.”
Edgewell Abandons Plan to Acquire Harry's
Edgewell Personal Care abandoned its plans to acquire upstart rival, Harry’s after the Federal Trade Commission sued to block the over $1 billion dollar deal. It was a notable victory for the FTC, who said the deal would have eliminated one of the most important competitive forces in the shaving industry. Edgewell’s chief executive said the company would continue to pursue its direct to consumer efforts but that it would take longer to build than it would by buying Harry’s. He also said Edgewell would continue to look for smaller brands to acquire but isn’t looking for another large deal like Harry’s.
China to Cut Tariffs on $75 billion in U.S. Imports
According to a statement from China’s Ministry of Finance, China will cut tariffs in half on $75 billion dollars worth of U.S. imports. The changes will take effect on February 14th. The move follows the Trump administration’s announcement during the signing of a phase one trade deal to reduce the tariff rate from 15 percent to 7.5 percent on February 14th on about $120 billion dollars worth of Chinese imports. The cutting back of tariffs represents a thawing of tensions between the two nations and will offer relief for many U.S. exporters and Chinese importers.
How Strip Malls Are Becoming A Prime Location For Retailers
Strip malls are starting to become a viable alternative for retailers that historically ignored them. Last week, both Macy’s and Sephora announced they would seek to open more stores in strip malls in the coming years. Last year, supplements store GNC announced plans to close 700 of its locations in malls to focus on stores in strip malls, which were reporting relatively stable store comps.
As customers increasingly shop online and malls see declining foot traffic, strip malls offer a few benefits that are becoming more important. The rent at strip malls is cheaper since their stores are typically smaller. The anchor stores are often gyms or grocery stores, giving retailers the added benefit of being in a place consumers visit on a regular basis. Sephora’s senior VP of real estate and development said, “What we have been lacking is being in those neighborhoods where our customer goes to SoulCycle or picks up pizza on Friday evening.”
Retailers that have reported most or a significant amount of stores in strip malls include Target, Ulta Beauty, TJ Maxx, and Kohls. Ulta’s seen success in strip malls, with its third-quarter earnings beating estimates. The beauty retailer’s success explains why Sephora is keen to open more locations in strip malls. While the data doesn’t show a stampede of retailers filling up spaces in strip malls, it does show that vacancy rates are staying steady, while they are rising at more traditional malls.
Closing
Thanks for listening to this latest episode of Today In Five. Don’t forget to subscribe and leave us a review. We’ll see you tomorrow.
On this weekend edition of "Today in Five", host Vincent Phamvan sits down with Dr. Josh Axe, the Founder of Ancient Nutrition (AncientNutrition.com) and DrAxe.com. He's a Certified Doctor of Natural Medicine, a Doctor of Chiropractic and Clinical Nutritionist with a passion to help people get healthy by empowering them to use nutrition to fuel their health. He's also the best-selling author of Keto Diet and Eat Dirt as well as the upcoming Collagen Diet book.
Dr. Josh Axe has been featured on the Dr. Oz show, in publications like Elite Daily and Men's Health. He's a leading force and thought leader within the health industry.
Dr Axe founded the natural health website, Dr. Axe, which is one of the top natural health websites in the world today. Its main topics include nutrition, natural medicine, fitness, healthy recipes, and home DYI remedies and trending health news. His website includes a group of credentialed editors, writers, and a medical review board.
Dr. Axe is also the co-founder of Ancient Nutrition, which provides protein powders, holistic supplements, vitamins, essential oils, and more to the modern world.
Most recently he also launched his podcast, The Dr. Axe Show, which is already in the top 15 health and wellness podcasts on Apple Podcasts and wherever else you listen to podcasts.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Wednesday, February 5th. Here are today’s headlines in digital disruption.
The Federal Trade Commission announced they sued to block the $1.37 billion dollar acquisition of Harry’s by Edgewell Personal Care. The complaint against the deal was that the merger would eliminate one of the most important competitive forces in a shaving industry long controlled by two well-established players.
First, here are the latest headlines.
H&M Appoints Its First Female CEO
H&M is shuffling its top leadership. The company announced it’s appointing its first female CEO, Helena Helmersson, effective immediately. Helmersson joined the company in 1997 as an economist in the buying department. Before becoming the COO, she also served as the company’s sustainability manager and production manager. She noted in a statement that, as CEO, she’ll continue moving the company along its strategic plan and would have a focus, “on the customer to continue strengthening our financial development in the short and long term.” She also added that there was potential to expand with both existing and new brands, with new types of partnerships and to continue leading the development towards a sustainable fashion industry.
Hulu CEO Stepping Down
Streaming service, Hulu, also announced a leadership shakeup. The company announced that CEO, Randy Freer, is stepping down from the company as part of a major restructuring of Disney’s direct-to-consumer business. Disney acquired control of Hulu following its acquisition of 21st Century Fox and subsequent deal with NBCU last year. The giant has, up to this point, left Hulu to run business as usual. The new move signals Disney’s plans to streamline its DTC operations, which also includes Disney+ and ESPN+. The changes will also allow the company to better distribute resources across its streaming services, as well as take Hulu to international markets more quickly and efficiently.
Sephora to open 100 More Stores in 2020
Popular beauty retailer, Sephora, announced they plan to open 100 stores in 2020. It’s the company’s largest rest estate expansion to date, more than doubling its store growth in 2019. The focus on its growth this year will be expanding outside of shopping malls, a place where the retailer has typically been found. Jeff Gaul, the senior vice president of Real Estate and Store Development at Sephora Americas said in an interview, "We love our stores in malls...but the focus on this next 100 is more off-mall locations.” Sephora will also look to grow in cities like Charlotte, North Carolina, and Nashville, Tennessee, not necessarily urban markets like New York and Los Angeles. The company’s growth move comes at a time when store closures are the growing trend.
The FTC Sued To Block Harry’s Acquisition By Edgewell
The Federal Trade Commission sued to block the $1.37 billion dollar deal where the maker of Schick razors, Edgewell Personal Care, would acquire upstart rival, Harry’s. The FTC alleged that Edgewell’s planned acquisition of Harry’s would eliminate one of the most important competitive forces in a shaving industry that has long been controlled by two entrenched companies. The deputy director of the FTC’s bureau of competition said in a statement that Harry’s, “has forced its rivals to offer lower prices, and more options, to consumers across the country.” All of the FTC’s commissioners voted in favor of the lawsuit, the latest sign that antitrust enforcers remain willing to challenge deals they believe could lead to higher prices for consumer staples.
Edgewell and Harry’s announced their deal last May, saying the companies were evaluating their options. Edgewell’s president and CEO said, “We believe the combination of our two companies would bring together complementary capabilities for the benefit of all stakeholders, including customers.” Harry’s had recently expanded from its online operations into brick-and-mortar stores, posing even more of a threat to powerhouse companies like Edgewell and Proctor & Gamble. It started selling products in Target stores in 2016 and recently began selling products at Walmart. Harry’s chose a sale to Edgewell over going public or staying independent.
The FTC signaled it would follow a two-tiered process to challenge the deal. The case is the latest in a multitude of merger challenges from the FTC.
Closing
Thanks for listening to this latest episode of Today In Five. Don’t forget to subscribe and leave us a review. We’ll see you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Monday, February 3rd. Here are today’s headlines in digital disruption.
Is Kim Kardashian’s move into wholesale with Nordstrom a sign of the changing DTC times? In this episode, we explore how Kim, who has an impressive social media following and online presence, still needed Nordstrom to expand and grow her SKIMS brand.
First, here are the latest headlines.
Forever 21 Receives Bid
Months after filing for bankruptcy, Forever 21 has a new bid from Authentic Brands and mall operators Simon Property and Brookfield. The $81 million dollar bid would serve as a baseline for an auction for Forever 21 and includes a breakup fee of $4.7 million dollars and expense reimbursement of $1 million dollars if the retailer accepts an alternate deal. The retailer proposed to the court a bid deadline of February 7th and an auction, if necessary, by February 10th.
Macy's Opening a New Concept Store
According to a press release, Macy’s will open what it calls a flexible retail store format in Southlake, Texas. The 20,000-foot store will be called Market by Macy’s. The new store’s space will host, “community-driven programming from cooking tutorials and book signings to crafting and fitness classes.” The new location will also debut two new exclusive Macy’s brands. The move indicates the retailer is taking new steps to develop store concepts, and to learn from the process, as it considers doing business on a much smaller scale.
Facebook Reports Increased Growth and Revenue
Facebook reported a growing userbase and increasing quarterly revenue, capping a year of strength in its core advertising business even as expenses climbed. The social media giant’s revenue rose 25 percent to $21.1 billion dollars for the quarter, beating analyst expectations. Revenue for 2019 rose by nearly 27 percent. Profit for the fourth quarter also topped expectations, rising 7 percent to $7.35 billion dollars. The latest report extends a strong performance typical for the company even in the midst of social questions and government scrutiny.
Kim Kardashian’s Expansion Into Nordstrom Is A Sign Of The Changing DTC Times
Is Kim Kardashian’s move into Nordstrom a sign of the digitally-native times? When Kim launched SKIMS, her shapewear brand featuring a variety of diversified products in a broad range of sizes, early products sold out. Kim continued to promote the brand using her immense social presence, and the products continued to sell out as the brand restocked. SKIMS had the potential to be the defining brand for Kim, having more promise than her previous brands KKW Beauty and Fragrance, which were more opportunistic than unique.
Earlier this year, Kim announced that the SKIMS brand would be expanding into 25 Nordstrom stores across America starting in early February, and would also be available online at Nordstrom.com. The move raises the question that if Kim Kardashian, who has a large social presence and earned media followings need Nordstrom, what about all the other digitally-native brands?
This isn’t the first time she or one of her family members has expanded into wholesale after hitting the online-only growth ceiling. Her sister Kylie was the first to move into Ulta after three years with Kylie Cosmetics, and Kim soon followed suit with KKW Beauty. Then after Kylie launched Kylie Skin, she moved into Ulta only five months after the brand’s debut. Now, five months after launching SKIMS, Kim is entering Nordstrom.
The reasons she’d make the move toward wholesale are simple. An apparel brand that offers such a broad range of sizing means that customers are going to return a lot of items as they try to find their fit. Kim’s social media followers are also potentially saturated by the marketing of Kardashian products, while the Nordstrom audience is likely wealthier and older than most of Kim’s following. Not to mention that digitally-native brands can only get so big before they have to expand into other channels to avoid high digital marketing spend.
If Kim Kardashian needs Nordstrom to grow her business, there’s a good chance that every consumer brand could benefit from the strategy.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Friday, January 31st. Here are today’s headlines in digital disruption.
Amazon has reported a sales boom, one that executives say was caused by the roll-out of one-day free shipping for Prime members.
First, here are the latest headlines.
UPS and Waymo Piloting Autonomous Package Pick Up
UPS and Waymo, a self-driving vehicle company, are partnering to launch a package transportation pilot according to an announcement. Waymo’s autonomous vans will pick up packages from UPS stores in the Phoenix area, and deliver them to nearby UPS sorting facilities. A trained driver will be present in the vehicles at all times. Scott Price, the UPS chief strategy and transformation officer said in a statement that the pilot would assist with, “getting packages to our sortation facilities sooner and more frequently, while also creating an opportunity for later drop-offs for next-day service.” The companies plan to use the pilot to explore ways they can incorporate autonomous vehicles at scale and potentially work together long-term. The partnership comes at a time when last-mile delivery is in demand and more firms are looking to autonomous vehicles to cut down on labor costs and improve driver retention.
Sale of Victoria's Secret May Be Likely
A sale of Victoria’s Secret in the midst of declining sales looks more likely. The private equity firm, Sycamore Partners, is reportedly in talks with L Brands founder and CEO, Les Wexner, to buy Victoria’s Secret according to the Wall Street Journal. The publication previously reported that L Brands was in talks to sell off the brand and that Wexner was set to step down, except to retain his seat on the board as chairman. There’s an existing relationship between L Brands and Sycamore, with the latter taking a controlling stake about eight years ago in the company’s Mast Global Fashion sourcing and logistics unit, and in 2015, took over the rest as L Brands spun it off into a separate company.
Nordstrom Opening Apparel Resale Shop
Nordstrom is diving deeper into the resale industry. The company announced they were opening an apparel resale shop, called See You Tomorrow, at its New York flagship store and online. The assortment will include women’s apparel, shoes, and handbags, along with men’s apparel, accessories, and shoes. The shop will be stocked in part with cleaned, repaired, and refurbished the Nordstrom Quality Center, which processes returned and damaged merchandise. Another source will be customers, who can exchange their own used clothing at the New York flagship for gift cards they can use at Nordstrom. With its take on resale, Nordstrom may be working hard to prove the viability of department stores during a time when most department stores are struggling.
Amazon Reports Sales Boom After The Rollout Of One-Day Prime Delivery
While many doubted the profitability of integrating one-day shipping, Amazon just reported that it actually fueled a sales boom. The e-commerce giant reported that fourth-quarter net product sales rose year over year to $50.5 billion dollars from $44.7 billion dollars. For the full year, net product sales rose to $106.4 billion dollars from $141.9 billion dollars in 2018. Net online store sales in the quarter rose 15 percent year over year. Third-party seller services rose more than 30 percent. Executives said that the move to deliver items in one day helped drive those sales.
The roll-out of one-day shipping had many thinking the added expense for fulfillment would cut into the giant’s profits. Amazon instead answered with profits soaring 8 percent $3.3 billion dollars. The e-commerce giant continues to innovate and drive consumer expectations as it implements difficult to carry out strategies, and is challenging many other retailers to rise to the challenge. Its consumer-focused initiatives have set a new precedent that will be hard to follow.
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Introduction
This is Today in Five, for today, Wednesday, January 29th. Here are today’s headlines in digital disruption.
Apple reported a jump in revenue after experiencing slowing iPhone sales the prior year.
First, here are the latest headlines.
Pinterest Introduces AR-Based Service
Pinterest is introducing a new augmented reality-based service called Try On. Customers can open the Pinterest camera in search and find different lipstick shades to try on virtually, and swipe up to shop. They can try on various products virtually, save items for later, or buy directly through the retailer’s site. The Try On tool doesn’t use digital skin smoothing or image-altering effects, making the AR experience more realistic. Per an announcement, the company said they integrated the tool with a skin tone range feature to help find lip shades that match various skin tones and make the experience more inclusive. Estée Lauder, Sephora, bareMinerals, Neutrogena, and Urban Decay are among the first beauty brands that people can buy from with Pinterest’s new shoppable AR feature.
1-800-Flowers Enhancing Omnichannel Experience
1-800-Flowers.com is rolling out enhancements across its digital, mobile, and voice channels. The specialty gift retailer is attempting to streamline its omnichannel shopping experience as Valentine’s Day approachings. The new features they’re unveiling include an intelligent virtual assistant, which combines AI and human interaction. The President of the company said, “As customers prepare to find the perfect gift for their Valentine, we are pleased to introduce new and unique ways to interact with 1-800-Flowers.com while providing a significantly enhanced shopping journey.”
Former Victoria's Secret Vet New J. Crew CEO
J. Crew is tapping a former Victoria’s Secret vet as CEO. J. Crew Group, which runs the J. Crew and Madewell brands, announced that Jan Singer will join the company as CEO of the J. Crew brand and a member of the board, effective early February. According to a company press release, she will be responsible for, “all aspects of the J. Crew and J. Crew Factory brands and businesses.” Singer has more than 25 years of experience, most recently serving as CEO for two years at Victoria’s Secret. She was also previously CEO of Spanx and a Nike executive.
Apple Emerges From Sales Slump With Record Revenue
After experiencing a slump in iPhone sales last year, Apple has risen again. The tech company posted record revenue and a return to profit growth in the latest quarter behind strong sales of its flagship smartphone as well as apps and AirPods. The tech giant reported revenue rose 9 percent in the December quarter to $91.82 billion dollars, driven by growing sales of devices and services connected to the iPhone such as smartwatches and streaming-TV subscriptions. Sales of iPhones, which account for more than half of its revenue, rose 8 percent to $55.96 billion dollars. Executives at Apple said they expect the sales growth to continue in the current quarter.
The company’s latest numbers marks its return to form, after failing to report a quarterly revenue record last year for the first time since the iPhone’s 2007 release. Last year, the company also slashed its guidance for the first time in more than 15 years. Apple pulled its way out of the slump by introducing new services and accessories that would appeal to the owners of the 900 million iPhones worldwide. The addition of a credit card and video-subscription service helped increase sales of services 17 percent in the latest quarter, the company said. The introduction of AirPods Pro also helped fuel a 37 percent surge in the company’s wearables business, which also includes smartwatches and iPods.
Mr. Cook said in a statement that the number of active Apple devices worldwide rose 1.5 billion from 1.4 billion a year ago. The 7 percent increase represents a slow down in growth from prior years but indicates that Apple is still continuing to increase its customer base as it aims to sell more services.
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Introduction
This is Today in Five, for today, Monday, January 27th. Here are today’s headlines in digital disruption.
With the rise of e-commerce has come the rise of counterfeit goods. The U.S. is now vowing to crack down on those counterfeit goods.
First, here are the latest headlines.
David's Bridal Introduces Digital Wedding Planning Tools
David’s Bridal introduced a series of digital wedding planning tools, including a vision board, an interactive wedding checklist, and a customizable website, according to a company press release. The launch of the new digital tools comes after David’s Bridal named its first chief digital experience officer and introduced its virtual assistant chatbot, Zoey. The CEO of David’s Bridal said in a statement, “We are relentless in our pursuit of becoming the most relevant, digitally modern, and innovative company to serve today’s modern bride.”
Grubhub to Launch Online and App Ordering for Pickup
Grubhub announced Thursday it was launching Ultimate, which uses software and hardware to allow restaurants to offer customers the ability to order their food online or through an app for pickup. Founder and CEO, Matt Maloney, said the food delivery company is focusing on marketing the technology to small and medium-sized restaurants. Ultimate is being tested at Chik-fil-A locations, Ohio State University, and more than 100 restaurants in the New York City and Chicago areas, according to the company. Industry-wide orders for pickup account for more than 50 percent of takeout sales, and 58 percent of all digital orders, according to the NPD Group. According to Morgan Stanley, $350 billion is spent every year on food purchased from restaurants. For Grubhub, providing a new tool for pickup orders could help it grab more market share.
Amazon Becoming Contender in Streaming Music World
Spotify and Apple are typically considered the giants in the music streaming world, but Amazon seems to be trying to push its way to the top. The e-commerce giant announced that its streaming service – Prime Music and Music Unlimited – had reached 55 million customers globally, across both its free and paid services. The company also said that Amazon Music Unlimited, its paid tier option, grew by more than 50 percent last year alone. Amazon and Apple have both kept subscriber numbers close to the vest. Apple’s last confirmed subscriber number was said to have surpassed 60 million in June of 2019. Spotify, however, has regularly updated its numbers, which makes sense considering music is its only business, unlike Amazon and Apple. Spotify said it ended the quarter with 113 million paid subscribers, up 31 percent year-over-year. Streaming music presents a big opportunity, with music revenue in the U.S. alone growing to $5.4 billion dollars during the first half of 2019. Amazon wants its share of the market, and the e-commerce giant has both the power and resources to make it happen. Apple and Spotify will not only have to contend with the other, but also worry about Amazon’s rise in the music streaming space.
U.S.Homeland Security Is Cracking Down On E-Commerce Counterfeits
With the rise of e-commerce has come the rise of counterfeit goods. The U.S. is now vowing to crack down on those counterfeit goods. The U.S. Department of Homeland Security’s Office of Strategy, Policy, and Plans released a 54-page report promising to strengthen scrutiny, enforcement, and punishment to tackle what it calls a growing problem in e-commerce. In a foreword, the acting department secretary, Chad Wolf, wrote that, “illicit goods trafficked to American consumers by e-commerce platforms and online third-party marketplaces threaten public health and safety, as well as national security."
The announcement of a federal crackdown on counterfeits comes as Amazon, in particular, has struggled to control fakes and unauthorized sales on its platform. The e-commerce giant has tried to push back on its apparent counterfeit problem, saying that the company has blocked more than 3 billion suspicious listings and prevented more than a million suspected counterfeit goods sellers from listing products.
But, as the government’s report notes, the problem is only getting worse, and Amazon is feeling the pressure as big-name brands, including Ikea and Nike, increasingly leave the platform after establishing storefronts on its Marketplace. That will only continue to happen as brands increasingly feel a loss of control and Amazon struggles to keep counterfeits at bay.
The issue with counterfeits goes beyond tarnishing brand names. The American Apparel & Footwear Association’s CEO Steve Lamar pointed out in an emailed statement that, “This is about more than just lost sales and damaged reputation...Counterfeit products that are unknowingly purchased...can put Americans in direct contact with materials that do not meet federal safety regulations, support unsafe working conditions, or enable illegitimate factories to ignore sustainable best practices. It is past time that we attacked this pervasive problem head-on.”
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Introduction
This is Today in Five, for today, Friday, January 24th. Here are today’s headlines in digital disruption.
Macy’s has partnered with wedding website, Zola, as the department store retailer tries to balance brick-and-mortar and e-commerce sales.
First, here are the latest headlines.
NYC Council Bans Cashless Retail and Food Establishments
The New York City Council passed a ban on cashless retail and food establishments on Thursday, according to the council’s website. The bill prohibits businesses from refusing to accept cash and from charging customers who pay cash a higher price than cashless customers. New York City is the largest U.S. city to have approved a ban on cashless stores. Similar bans passed in Philadelphia, New Jersey, and San Francisco in 2019. Chicago and Washington D.C. are considering similar policies as well. The growing trend among local governments to ban cashless locations could slow the trajectory of the movement toward digital payments. Within the next decade, only one in 10 transactions are expected to be made with cash.
Target Partners with Unilever and Sundial Brands on Exclusive Line
Unilever and its Sundial Brands subsidiary have launched a “line of textured hair care products for Gen Z multicultural women,” exclusive to Target, the companies announced in a press release. With another exclusive label to complement its private label strategy, Target continues to demonstrate merchandising and branding savvy that places it ahead of the pack in retail. In Unilever and Sundial, Target has partners that can develop products for women of color with specialized knowledge and supply them at scale. The line also furthers the retailer’s success in beauty, an area where Target slowly but meaningfully appears to be taking share from the likes of drugstores. The company is targeting its customer well, and not just in catering to Gen Z. Its development of the new line goes beyond “purpose marketing,” to bring products to market that are in demand by a group of consumers often neglected by mainstream retailers.
Goldman Sachs CEO to Require "Diverse" Boards for Companies Going Public
The demand for diversity is taking a front seat in retail. Goldman Sachs CEO David Solomon told CNBC that starting this year, his investment bank wouldn’t help companies go public without at least one “diverse” board member. Solomon preceded his statement by saying that, over the last four years, the performance of public offerings of U.S. companies with at least one female director is “significantly better” than those without. He noted that about 60 companies in the U.S. and Europe have gone public recently with all white, male boards. In his statement, he said, “Look, we might miss some businesses, but in the long run, this I think is the best advice for companies that want to drive premium returns for their shareholders over time.”
Macy’s And Zola Team Up As The Department Store Retailer Switches Up Its Strategy
Macy’s and wedding site, Zola, have launched a partnership that enables couples to register with Macy’s for gifts across the retailer’s bedding, bath, and home goods through Zola, according to a press release. Zola users can also shop for more than 2,000 Macy’s private label or exclusive products, per Zola’s statement. In a company statement, Zola noted that they developed its technology to allow Macy’s to fulfill the orders placed on the platform. Macy’s partnership with Zola comes as the retailer undergoes substantial change. The department store is has been making changes both on and offline.
Back in September, the retailer announced its effort to offer same-day delivery for a limited time over the holidays. Macy’s changes come as it tries to balance e-commerce and brick-and-mortar sales. Its Zola partnership presents the retailer with a way to reach a new digital customer base, much like similar efforts at Nordstrom. Macy’s senior director of business development said in a statement, “By partnering with Zola, we’re adding another way to bring Macy’s best private and exclusive products toe very couple wishing to say I do.”
Closing
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Introduction
This is Today in Five, for today, Thursday, January 23rd. Here are today’s headlines in digital disruption.
Netflix is feeling the effects of fierce competition in the streaming space. As players like Disney Plus and Apple TV+ enter the space, Netflix is seeing slower growth in subscriber numbers.
First, here are the latest headlines.
Tesla First $100 Billion Publicly Listed U.S. Carmaker
Tesla became the first $100 billion publicly listed U.S. carmaker after a jump in its share price during after-hours trading, according to Reuters. If its valuation — more than Ford and General Motors combined — lasts for one-month and six-month averages, Musk will be granted a huge payout. The company's stock has more than doubled in three months, thanks in part to a surprise quarterly profit, higher production at its China factory, and better than expected annual car deliveries.
Express Closing 100 Stores by 2022
Express said on Wednesday it would shutter about 100 of its stores by 2022, including nine already closed last year, 31 by the end of this month, and 35 by the end of January 2021. The company as of November 2019 operated more than 600 stores. The company will also aim for savings through negotiations as store leases come up for renewal, according to the CFO. In a press release, CEO Tim Baxter also presented a turnaround strategy that goes beyond closures and cost-cutting initiatives, including a new loyalty program and store credit card that will debut this fall. The company said it will also expand its in-store pickup service for online orders, a strategy that has proved increasingly effective for retailers.
Skims Will Be Available at 25 Nordstrom Stores
Kim Kardashian West’s shapewear brand, Skims, will launch in select Nordstrom locations on February 5th, according to a social media post from the department store. Per the company’s website, Skims will be available at 25 Nordstrom stores as well as on nordstrom.com. The move pushes the department store further into a direct-to-consumer strategy. The retailer has also recently partnered with DTC brands Glossier, luggage brand Away, and sustainable fashion company Everlane.
Netflix In The Age Of The Streaming Wars
Netflix downplayed concerns over competition in its Q4 2019 earnings report. Netflix wrote that, “despite the debut of Disney Plus and the launch of Apple TV, our viewing per membership grew both globally and in the U.S. on a year over year basis, consistent with recent quarters.” Netflix added 8.8 million net subscribers in the fourth quarter, on par with the 8.8 million added last year and ahead of the company’s internal forecast of 7.6 million. But Netflix also acknowledged that growth in the U.S. and Canada is slowing down. The streaming service added just 550,000 thousand net subscribers in the region this quarter, and just 420,000 thousand in the U.S., down from 1.75 million the same quarter one year ago.
Netflix cited, “U.S. competitive launches,” as one of the primary factors for slowing growth. Netflix is also factoring in competition to its guidance, noting that elevated churn levels in the U.S. led the company to project net adds of 7 million globally for the first quarter of 2020, down from 9.6 million in the first quarter of 2019. Since NBCUniversal’s Peacock and AT&T’s HBO Max haven’t launched yet, it’s possible Netflix may be preparing for a more consistent decline of U.S. subscribers. The effect of increasing competition will be interesting to follow where Netflix is concerned. If the service can continue to beat back rivals, it should be able to sustain its lofty valuation over legacy media companies.
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Introduction
This is Today in Five, for today, Wednesday, January 22nd. Here are today’s headlines in digital disruption.
Amazon has filed trademarks for Amazon Pharmacy, signaling the potential for the retail giant to move into selling prescription drugs outside the U.S.
First, here are the latest headlines.
Payless ShoeSource Emerges from Chapter 11
Payless ShoeSource has emerged from Chapter 11 bankruptcy, with a renewed focus on international operations. The company’s new managers said the U.S. is the, “biggest growth opportunity,” but didn’t specify their plans on how to achieve growth there. Payless closed all of its U.S. stores last year but continues to operate in Latin America, Southeast Asia, and the Middle East.
DoorDash Now Leader in Digital Food Delivery
DoorDash’s growth in 2019 allowed it to edge past Grubhub to become the leader in digital food delivery, according to data from analytics firm Second Measure. Doordash captured a third of all digital food delivery sales, or 33 percent, in the U.S. market last year, putting it on top of Grubhub, which had 32 percent of sales in the category. Uber Eats followed with a 20 percent share and was trailed by Postmates, with 10 percent. Digital food delivery is projected to be a $467 billion dollar business by 2025, with food delivery sales growing 13 percent or more each of the past five years.
Starbucks to Become "Resource Positive"
Starbucks has announced its plans to become, “resource positive,” when it comes to carbon, water, and waste. The coffee chain set preliminary goals for 2030 that included cutting carbon emissions in half, conserving or replenishing half of the water taken for coffee production, and reducing half of its waste. The company plans to formalize those goals by March 2021. The coffee company is among a growing number of businesses announcing sustainability goals as consumers grow increasingly concerned about climate change. BlackRock announced a week ago its plans to overhaul its investing strategy to make sustainability the new standard, and on Thursday, Microsoft said it’s trying to remove more carbon from the atmosphere than it emits by 2030. Starbucks CEO, Kevin Johnson, said, “By embracing a longer-term economic, equitable, and planetary value proposition for our company, we will create greater value for all stakeholders.”
Amazon Files Trademarks For Amazon Pharmacy
Amazon has filed to trademark Amazon Pharmacy in Canada, the U.K., and Australia, signaling a potential move into selling prescription drugs outside the U.S. According to the Canadian Intellectual Property Office website, Amazon filed for the patent on January 9th. The status is listed as pre-formalized. The trademark also lists other areas that Amazon Pharmacy could move into including surgical, medical dental instruments and pharmaceutical, as well as medical and veterinary preparations.
Amazon began its move into the drug space in 2017 when it started to explore whether to build out a team. The following year, the retail giant acquired PillPack, a start-up that specializes in delivering medications to the home, signaling an early focus on the U.S. prescription drug market. The Amazon Pharmacy branding is relatively new. PillPack notified its customers at the end of 2019 that it would be including references to the brand in its printed materials and on its labels.
Filing a trademark doesn’t necessarily mean that international expansion will happen in the near future, but it does suggest Amazon will eventually go global, which is in line with its typical business strategy.
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Introduction
This is Today in Five, for today, Monday, January 20th. Here are today’s headlines in digital disruption.
Rent the Runway is continuing to expand its partnership with Nordstrom. The companies are piloting a new Rent the Runway service at select Nordstrom Rack locations.
First, here are the latest headlines.
Facebook Will Not Sell Ads on WhatsApp
Facebook is backing off its plan to sell ads in WhatsApp, a retreat from a plan that drove the creators of the popular app to resign more than a year ago, according to people familiar with the matter. The shift marks a detour in the social media giant’s plan to monetize WhatsApp, which it bought in 2014 for $22 billion dollars. WhatsApp is among popular Facebook services, along with Instagram, Messenger, and the core Facebook platform, that attract a combined 2.8 billion monthly users.
Disney+ Downloads Topping List in Q4
Disney+ has done incredibly well since its launch in November 2019. According to new data from Sensor Tower, which focused on app trends in the final quarter of 2019, Disney+ was downloaded more than 30 million times in Q4 2019, more than double its nearest competitor, TikTok. Those total downloads were counted across both the Apple App Store and Google Play, with the App Store accounting for over 18 million of the Disney+ downloads and Google Play accounting for more than 12 million. On the App Store, Disney+ beat out Youtube and TikTok for the number one spot, after YouTube held the top spot for the past four quarters. In terms of revenue, Disney+ grossed more than $50 million dollars in its first 30 days. The Disney+ app was also able to reach 71 percent of Netflix’s peak revenue in December.
Bose Closing All Retail Stores
Bose announced it will close all 119 retail stores in North America, Europe, Japan, and Australia in the coming months according to a company statement. The company will offer severance and outplacement assistance to impacted employees but declined to state the exact number of workers that will be affected. Bose pulling back on its brick-and-mortar presence to focus on its e-commerce presence, stating that its noise-canceling headphones, wireless sport earbuds, portable speakers, and smart speakers are, “increasingly purchased through e-commerce.” The company’s vice president of global sales noted the change comes as they’re focusing on what customers need and where they need it.
Rent The Runway Expands Partnership With Nordstrom Through New Pilot
Rent the Runway is piloting a new offering, called Rent the Runway Revive, in select Nordstrom Rack locations. According to an email sent to Rent the Runway customers, Revive will be available at Rack locations for a limited time only and give customers access to, “gently worn, ready-to-wear styles starting at $28 dollars.” The new offering is part of an expanding partnership with the two companies. Rent the Runway already has drop-off locations at several Nordstrom and Nordstrom Local locations. The companies tested the service in Los Angeles over the summer and expanded it in November. This latest move gives Rent the Runway a powerful off-price outlet to sell its older inventory, while possibly giving Nordstrom Rack stores a small boost of foot traffic as well.
While they’re deepening their relationship with Nordstrom, it’s not the only company Rent the Runway has in its sights. In 2018, the company partnered with WeWork on launching drop-off spots at the co-working company’s locations and also announced a collaboration with West Elm for a home goods rental service. Just this December, Rent the Runway also announced a partnership with W Hotels, offering a curated Closet Concierge service for traveling customers to rent clothes while traveling for business or on vacation. The rental company hit unicorn status in March of 2019 and has since expanded into kid’s rentals. Selling at Nordstrom Rack locations is just one of many recent decisions geared toward offering more services to its customers, and more convenient places to find Rent the Runway.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Friday, January 17th. Here are today’s headlines in digital disruption.
Gap Inc. announced it no longer plans to spin off Old Navy brand following softer business performance and abrupt departure of two top company executives.
First, here are the latest headlines.
Smart Speaker Ownership Growing in U.S.
According to a December 2019 survey by NPR and Edison Research, smart speaker ownership grew to 24 percent of the U.S. adult population, about 60 million people, from 21 percent a year earlier. The study also found that smart speaker households contain an average of 2.6 devices, up from 2.3 the year before. The number of smart speakers in U.S. households climbed 32 percent to 157 million in 2019. With the growing number of consumers with smart speakers, the new technology presents an opportunity for marketers, while speaker sales begin to surge.
Google Parent Alphabet Hits $1 Trillion Market Cap
Google’s parent company, Alphabet, has hit $1 trillion dollars in market capitalization, making it the fourth U.S. company to hit the milestone. Apple was the first to hit the market cap in 2018, then Microsoft and Amazon followed. Apple and Microsoft are still valued at more than a trillion dollars while Amazon has since fallen below the mark. With a roughly $620 billion dollar valuation, Facebook appears to be the next likely trillion-dollar tech contender.
NBC Planning Expansive Marketing for Peacock Launch
NBC Universal is planning an expansive marketing rollout for its streaming service, Peacock. According to a person familiar with the matter, NBC Universal’s spending on its Peacock campaign will likely exceed $300 million dollars in its first year. Launch sponsors, which include Unilever and Target, have agreed to promote the streaming service on their websites, in their own media, and in stores, the person said. Sponsors have also committed hundreds of millions of advertising dollars long-term to Peacock. The streaming service will be available on April 15th for select Comcast customers and July 15th for everyone.
Gap Inc. Nixes Plan To Spin Off Old Navy
Gap Inc. announced that its plans to split off Old Navy into a separate company are off. Analysts had grown skeptical of the separation plan devised by longtime CEO, Art Peck, last year. Robert Fisher took over as interim president and CEO after Peck’s abrupt departure in November and many observers expected the split to be canceled then. But the board reiterated the plan the next day.
In a company press release, Fisher stated, “The plan to separate was rooted in our commitment to value creation from our portfolio of iconic brands.” He also noted that while the objectives of the separation remain relevant, the board found that the cost and complexity of splitting into two companies, combined with softer business performance, made it difficult to benefit from a separation.
In his statement, Fisher also said the company has learned from the process and intends to, “operate Gap Inc. in a more rigorous and transformational manner that empowers our growth brands, Old Navy and Athleta, and appropriately focuses on profitability for Banana Republic and Gap brand.” Alongside the announcement of the nixed plans, the company revealed that Neil Fiske, president and CEO of the Gap brand, is departing.
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Introduction
This is Today in Five, for today, Thursday, January 16th. Here are today’s headlines in digital disruption.
Ride-hailing companies like Uber and Lyft have waged a not so silent war on taxis. The effect can especially be felt in Los Angeles, but now the city and taxis are trying to evolve to compete with the ride-hailing services.
First, here are the latest headlines.
Retailers Rediscovering Importance of Physical Stores
After the National Retail Federation’s Big Show, one thing was clear. Many retailers have a newfound appreciation for the value of their physical stores, but also many are struggling with the limits of the online channel. A principal at venture capital firm Comcast Ventures said, “The pendulum has swung.” He noted it has become easier to launch a direct-to-consumer company than to sustain or grow one. While some companies are seeking further investment on the public market, like Casper who recently filed for an IPO, other brands like Billie and Dollar Shave Club were acquired by consumer product goods conglomerates. The store experience is valuable for not only providing in-person, touch-and-feel experiences for shoppers, it also provides marketing that so far online search or sites have not been able to match. The trend seems to indicate that just as e-commerce has become a given for traditional retailers, it now seems like a must to maximize and measure the value of connections and discovery possible only in-store.
Target Sales Fall Short
Target, who has posted strong quarters and been considered a standout in retail, fell short over the holidays. Target revealed its same-store sales during November and December were up just 1.4 percent, compared with growth of 5.7 percent the year before. Target said it found strength in apparel and beauty, while electronics, toys, and parts of its home business didn’t perform as well as they’d hoped. CEO Brian Cornell said in a blog post, “While we knew this season was going to be challenging, it was even more challenging than we expected.” Cornell also said that while Target faced challenges in November and December in key categories, they were maintaining their guidance for fourth-quarter earnings per share because of the durability of the company’s business model.
Secondhand Beauty Industry Growing
You’ve no doubt heard all about the secondhand apparel craze that has become a booming industry, but what about the secondhand beauty industry? Online platforms like Poshmark and Glambot are normalizing makeup and skincare reselling by using technology that authenticates, sanitizes, and repackages products. The process is just like clothing resale platforms where customers send in lightly used items and, if approved, sell them to other shoppers. Beauty resale allows fast beauty consumers to remain on-trend while solving the consumption problem that fast beauty created.
Los Angeles Taxis Try To Get With The Ride-Hailing Times
Ride-hailing companies like Uber and Lyft have waged a not so silent war on taxis. The effect can especially be felt in Los Angeles. According to Los Angeles World Airports, which operates LAX, taxis handled just 22 percent of pickups at the airport for the first three quarters of 2019, with ride hails claiming the rest. The divide in numbers was similar throughout the rest of the city, with the Los Angeles Department of Transportation estimating taxi business was down 75 percent since 2012, the year Uber first rolled into town. Now, the taxis of Los Angeles are fighting back. Instead of calling an individual company to request a cab, passengers will be assigned rides through a centralized dispatch that connects all the cabs in the city. The taxis can be requested with an app or phone call and passengers will know the cost of their rides before getting into the car. Meters will be modernized and cabs’ typical garish colors will be optional. Jarvis Murray, an administrator with the city Transportation Department said, “We want to give them an opportunity to be able to retain and add customers, to be innovative and nimble.”
Dr. Anne Brown compared taxis and ride-hail services when she was a researcher with the Institute of Transporation Studies at the University of California, Los Angeles in 2018. She found the average cost for an Uber or Lyft was less than when using a taxi. She also found that in 10 percent of the trips, taxi drivers traveled twice as many miles as necessary. After interviewing students who had assisted with the research, most said the unreliability of taxis didn’t end once they were in the car. They didn’t know how much the trip would be and there wasn’t always a recourse if they were unsatisfied with the driver. With Uber and Lyft, they could complain and get their money back.
It’s these issues that Los Angeles is trying to address with its new taxi permit system. Dr. Brown said taxis have tried to innovate. Many companies have developed their own apps, but they work only for that individual fleet and may not operate in the area where a customer needs a ride. At least one developer has tried to bring all the cabs’ apps under the same umbrella to operate more like Uber or Lyft, but the app doesn’t work well, she said. The findings bring up the question: why not let the taxi system fail if Ubers and Lyfts are superior options?
Dr. Brown said, “Taxis are this legacy service...They’re a really important mode for so many travelers.” They’re important for travelers without cars or don’t have the necessary smartphone or debit or credit card to use a ride-hail app. Dr. Brown noted that taxis were used most often by the city’s lowest-income people, who pay with cash.
It remains to be seen how the city’s attempt to modernize the taxi industry will stack up against services like Uber and Lyft who have successfully disrupted the industry.
Closing
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Introduction
This is Today in Five, for today, Thursday, January 16th. Here are today’s headlines in digital disruption.
H&M debuted two new innovative recycling bins for shoppers to drop their unwanted clothes and see the difference they’re making.
First, here are the latest headlines.
Visa Buying Plaid
In a deal worth a whopping $5.3 billion dollars, payments giant Visa is buying start-up Plaid the companies announced on Monday. Plaid’s API software lets start-ups connect to users’ bank accounts. Among Plaid’s high-profile customers is the popular payment app, Venmo. As of December, Plaid said one in four people in the U.S. with bank accounts have connected to the company through an app. Visa and rival Mastercard were early investors in the start-up. In a call with investors, Visa’s CEO stated the deal was a long-term play and would position Visa for the next decade, saying, “This fits well, strategically...We’re excited about new businesses and the ability for this to accelerate our revenue growth over time.”
Walmart Adding More Robots
Walmart will add shelf-scanning robots to 650 more U.S. stores by the end of the summer. The new robots will join the ranks of Walmart’s increasingly automated workforce which also includes devices to scrub floors, unload trucks and gather online-grocery orders. They’re part of CEO Doug McMillon’s push to reduce costs, improve store performance, and gain credibility as a technology innovator. Walmart says the shelf-scanners can reduce tasks that once took as long as two weeks into a twice-daily routine. The potential savings are worrying many retail employees, with the robots often referred to as, “the job stealers,” but Walmart has constantly claimed that its robots lead to the redeployment of employees to less mundane roles, not job eliminations. However, its fleet of robots is growing and getting smarter, marking a new age of retail technology and the disruption of how ordinary tasks and processes are completed.
Bath & Body Works Experiencing Consistent Sales Growth
Bath & Body Works has reported 40 quarters of consistent sales growth. The L Brands owned company’s success signals that some brands are able to navigate the slow decline of mall traffic and continue to thrive. Even as other retailers have struggled in malls, the brand’s consistency and sense of discovery have continued to make it a destination. Even if Sephora or Ulta stores are nearby, Bath & Body Work’s accessible price point is simpler and more attainable than a multi-brand beauty chain while still being more upscale than a Walmart or Walgreens.
H&M Utilizes Innovation For Sustainability Initiatives
H&M is raising the bar on their apparel recycling initiative with new smart bins. The retailer, which has been accepting unwanted clothing from all brands at its stores since 2013, just debuted two smart collection boxes at its flagship store on Fifth Avenue. The bins house a digital scale and feature integrated digital screens. As shoppers deposit their bag of unwanted clothes, the digital screen displays the weight of the donation, along with a message thanking shoppers for making a difference. The screen then displays a QR code that customers can scan for a 15 percent discount.
The code also directs shoppers to a website outlining H&M’s sustainability efforts and how their donations make a difference. For example, for every 50 pounds of donated clothing, H&M plants a tree through One Tree Planted. The retailer has a goal of collecting 5 million pounds of apparel and planting 100,000 trees by the end of 2020, according to the company. H&M’s business development project manager of North America said, “This project quantifies the sustainability impact our customers are having in real-time.” H&M will expand the initiative to stores overseas in 2021.
The retailer’s focus on sustainability is on par with the shifting consumer trends, particularly among younger generations, with a survey from Nielson reporting that 81 percent of global respondents feel strongly that companies should help improve the environment. Millennials, Gen Z, and Gen X were among the most supportive.
Closing
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Introduction
This is Today in Five, for today, Tuesday, January 14th. Here are today’s headlines in digital disruption.
According to Women’s Wear Daily, Amazon is working on its own luxury apparel platform. The move would be a far cry from the current trajectory for the retailer, who has mostly sold generic brands through third-party sellers.
First, here are the latest headlines.
PVH Planning to Sell Nike
Apparel conglomerate, PVH, announced plans to sell its Speedo North America swimwear business to Pentland Group for $170 million dollars. In a statement, the CEO of PVH said the move was strategic as the company works to optimize and streamline its portfolio and focus on its Calvin Klein and Tommy Hilfiger brands. The companies have entered into a definitive agreement, and the deal is expected to close in the first quarter of PVH’s fiscal 2020 year according to a press release.
Peloton Store Base Could Double
According to the senior vice president of Peloton retail, Jennifer Parker, the company’s store base could double over time. Peloton’s store base, which resembles showrooms where Peloton bikes and treadmills are displayed, currently stands at more than 80. That includes recent store openings in San Diego and Germany. Parker noted that the company is focused on opening locations in top tier malls. She also pointed to several factors behind the physical store push while some in retail continue to cut back. The showrooms would allow Peloton to collect data on customers and potential ones, which would help the company identify key trends and plan new products and services accordingly.
Kohl's CEO Says Amazon Partnership Working
In 2019, Kohl’s went all-in on Amazon when it announced it would expand the partnership to accept returns from the e-commerce giant al all of its stores. Despite recent questions about whether the partnership is working, Kohl’s CEO defended the strategy. At the National Retail Federation’s Big Show, she said, “Amazon is working, this returns program is working...We’re seeing the traffic, we’re getting the customer, we’re getting a younger customer. To what we expected, some of them are buying, you’re not getting 100 percent, but some of them are buying.” According to data from Earnest Research, Kohl’s stores participating in the Amazon returns program in Chicago saw revenue growth top 10 percent in 2018, compared to 5 percent at non-participating stores. But it’s still unclear whether the partnership will be enough to stem sales losses in its fourth quarter and full-year.
Amazon Reportedly Planning Its Own Luxury Apparel Platform
Amazon is planning a luxury apparel platform that will first be introduced in the U.S., then expanded internationally. According to a report from Women’s Wear Daily, the retail giant is already working with 12 unnamed brands. Amazon is said to be building a warehouse in Arizona dedicated to the project and planning a $100 million dollar campaign to market it. If true, a move into luxury fashion would be a far cry from Amazon’s apparel trajectory so far. Despite significant moves to develop its own private-label clothing, the e-commerce giant, for the most part, sells generic brands, largely in basics and activewear, through its third-party sellers.
The number of nonbranded or generic apparel items sold by Amazon in September 2019 grew 906 percent year over year, and topped their ranking, according to research from Coresight. Amazon’s history with bigger names is decidedly mixed. Some, including Birkenstock and Nike, have joined, then left. Birkenstock cited counterfeit concerns, and Nike characterized the move as simply dropping a distribution partnership, though some analysts speculated the move came from the brand’s desire to have more control over its brand than Amazon now offers.
Amazon has apparently taken that note. Its luxury platform would give brands, “full control,” over their pages, including how much they sell and at what price, while providing access to Amazon’s fulfillment and customer service capabilities. This effort could boost Amazon’s take in the market, according to some analysts.
Closing
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Introduction
This is Today in Five, for today, Monday, January 13th. Here are today’s headlines in digital disruption.
Proctor & Gamble announced its plans to acquire DTC grooming startup, Billie. The acquisition is the latest in a string of P&G snapping up younger DTC brands and could help the company reach a younger audience of consumers.
First, here are the latest headlines.
Lululemon Name Chief Brand Officer
Lululemon named Nike veteran, Nikki Neuburger, as their first-ever Chief Brand Officer, effective January 20th. In addition to elevating the brand, she will be responsible for marketing, creative, communications and sustainability to “drive the company’s global brand and storytelling initiatives.” According to a press release, she spent 14 years at Nike, most recently as global vice president of Nike Running, and also oversaw the direction of the Nike Membership division. For the past two years, she has served as the global head of marketing for Uber Eats. Lululemon’s CEO, Calvin McDonald said, “Her years of experience in the athletic industry, paired with her deep expertise in digital marketing, consumer insights, and brand creative, will be instrumental as we build upon our momentum and deliver on our Power of Three growth strategy.”
Casper Files IPO
Online startup, Casper, filed for an initial public offering on Friday. According to the filing, the price range of the initial public offering price has yet to be determined. Casper reported $312.3 million dollars in revenue for the nine months ending in September 2019, up 20 percent from the year-ago period, and $67.4 million dollars in losses, a 4.9 percent increase from the previous year. The company also reported spending $423 million dollars on marketing expenses from 2016 to 2019. In March 2019, Casper officially achieved unicorn status after a $100 million dollar funding round placed the company’s valuation at $1.1 billion dollars. While the company is steadily reporting losses, Casper maintains there is still a tremendous amount of growth in the category, with a Frost & Sullivan Assessment forecasting the sleep economy will hit $585 billion dollars globally by 2024, with the U.S. representing $95 billion dollars of those sales.
Target Creating Private Label Activewear Brand
Target put to bed months of speculation on Wall Street that it would partner with Nike, adidas, or Under Armour in 2020 for a collection of athletic clothing. Instead, Target will do what it does best and utilize its best in class private label supply chain. Later this month, Target later this month will debut a new athleticwear brand called All in Motion. The private label collection will include products like T-shirts, tank tops, pants, yoga mats, and more. Target says the apparel will feature technology comparable to premium activewear brands. The company also noted the majority of the products will boast sustainably sourced materials. The company believes All in Motion could be a billion-dollar sales brand within the first year.
Proctor & Gamble Plans To Acquire DTC Disruptor Brand, Billie
Proctor & Gamble announced its plans to acquire Billie, a direct-to-consumer maker of women’s shaving and personal care products. The acquisition will add to P&G’s growing number of female grooming brands that includes Venus and Braun and Joy, per an announcement. Terms of the deal weren’t disclosed.
According to the announcement, the companies will combine consumer insights, digital capabilities, and innovation. Billie’s co-founders, Georgina Gooley and Jason Bravman, will continue to lead the company. Billie launched in 2017 as a subscription service that delivers a steady supply of women’s shaving products. Billie’s products include razors, shaving cream, body wash, and lotion.
P&G’s planned acquisition of Billie is part of the CPG giant’s effort to expand its share of the grooming market, which was previously on the decline amid the emergence of DTC brands like Billie and consumer habits shifting toward body-positive brands that offer convenience. Billie can help P&G reach a younger audience of consumers. The shaving startup is a DTC disruptor like Dollar Shave Club and Harry’s that took aim at P&G owned Gillette’s market dominance. By getting Billie into its fold, P&G could avoid the steady decline of market share experienced by Gillette.
Closing
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Introduction
This is Today in Five, for today, Friday, January 10th. Here are today’s headlines in digital disruption.
Bloomscapes has formed a partnership with West Elm, marking its first partnership with a major retailer. According to a company press release, Bloomscape products will be available on West Elm’s U.S. website.
First, here are the latest headlines.
Forever 21 Relaunching International Online Store
Forever 21 is relaunching its international online store in partnership with e-commerce platform, Global-e. The fashion retailer filed for bankruptcy in September, saying at the time it would close as many as 178 U.S. stores, along with most of its international stores in Europe and Asia in order to refocus on its U.S. and Latin American businesses. In a statement, Forever 21 President said the retailer has seen ongoing demand from customers in regions where it plans to exit. He went on to say, “E-commerce forms a large chunk of the profitable core of our operations and as part of our new global strategy, Forever 21 will leverage Global-e’s technology to offer international customers an outstanding online experience.“
Mega-mall Defying Odds
Many people were skeptical about the long-awaited American Dream mega-mall in New Jersey opening this spring, but the mall seems to have defied the physical retail odds. Developers have leased almost 90 percent of the mall’s available 3.3 million square feet, a figure which rises to nearly 100 percent when leases under negotiation are included, according to a filing. All retail anchor stores have been spoken for, which is critical for malls since those locations are typically key in driving foot traffic. According to Bloomberg Intelligence, fewer than half of U.S. malls are expected to survive ongoing store closings, but American Dream has said it can beat the odds because of its attractions, including a Nickelodeon Universe park, an ice skating rink, and a ski slope, and its accessibility to New York City.
Sweetgreen Looking Beyond Salad
Salad chain Sweetgreen wants to move beyond salads. The company recently opened its new 3.0 concept store in New York City and plans to double its store count in the next three years. The company has raised $350 million dollars in private capital, bringing its valuation to $1.6 billion dollars, which makes it the only restaurant unicorn. Sweetgreen currently operations 103 locations. While its 3.0 store received some positive feedback, other customers described their experience as confusing because of unclear pricing signage, too much merchandise, and long wait times. Mistakes are inevitable at the beginning of any venture, but Sweetgreen needs to beef-up its technological and operational capabilities if it wants to be known and valued as a tech company.
West Elm Forms Partnership With Plant Startup Bloomscape
Direct-to-consumer plant company, Bloomscape, announced on Wednesday it formed a partnership with West Elm. The DTC brand said this marks its first partnership with a major retailer. According to a company press release, Bloomscape products will be available for purchase on West Elm’s U.S. website. The partnership follows a Series A funding round in 2019 in which the company raised $7.5 million dollars. The company has raised $9.2 million dollars to date, according to Crunchbase.
Bloomscape’s partnership with West Elm also underscores a growing trend, especially in the home goods segment. As the market gets more saturated, brands are being forced to expand outside of their initial product categories. Mattress brand, Casper, expanded into the electronics and drug categories in 2019 with the launch of a smart nightlight and CBD gummies. Bedding brand, Brooklinen, launched its own online marketplace called Spaces in October, which invites brand partners to sell on the platform.
West Elm has also formed a variety of partnerships with brands in the past from furniture startup, Floyd, to smart home electronics company, Nest. For West Elm, the collaborations provide a relatively low-risk way of expanding and experimenting with different products and categories without having to develop the products in-house. In a statement about their partnership with Bloomscape., West Elm’s director of partnerships said, “Together, we can better serve our customers as they journey into designing and completing their homes.”
Plants could prove to be a lucrative category to expand into. Along with Bloomscape, other startups like Urban Stems and The Sill have entered the space. According to National Gardening Association date cited by Bloomscape, houseplant sales have increased some 50 percent to $1.7 billion dollars in the past three years.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Thursday, January 9th. Here are today’s headlines in digital disruption.
As social commerce grows, Instagram is starting to establish itself as a shopping destination through new features and capabilities. Will 2020 see the rise of Instagram as one of the top shopping destinations for consumers and brands?
First, here are the latest headlines.
Goop Products Becoming Available in Sephora Stores
Gwyneth Paltrow’s popular lifestyle brand, Goop, will now feature products in Sephora stores. It’s the first time the wellness brand has partnered with another retailer to sell items like its vitamin chews and body scrubs. Until now, Goop was only available at its own stores, on its website, and at some independent beauty shops. Starting Tuesday, select Goop products will go live on Sephora’s website and on February 28th, Goop’s skin care line with be sold at select Sephora stores across the country. The companies said other Goop products will launch at Sephora in the coming months. For Goop, partnering with Sephora should help put the brand in front of more people.
Highsnobiety Launching First Pop-up
Streetwear focused media brand, Highsnobiety, is taking its first step into physical retail as a standalone brand. The direct-to-consumer brand is partnering with London department store, Selfridges, to launch its Co.Lab pop-up that will be open through February 9th. Highsnobiety’s use of pop-ups will allow the brand to maintain relevance over time. Launching pop-ups will create a regular sense of novelty that encourages its fan base to shop both in-store and online.
NBCUniversal Accelerating Single Ad Technology Efforts
NBCUniversal said it is accelerating its efforts to create a single ad technology and sales infrastructure for marketers to run media plans across its TV and digital properties and across local, national, and global markets. The efforts center on One Platform, which will combine existing tools for advertisers to plan, schedule, optimize and measure video ad campaigns. Previously, NBCUniversal had separate tools for traditional linear TV and digital advertising, forcing it and its advertisers to combine orders manually. The news comes as TV networks try to update how they sell ads to better compete with digital media. NBCUniversal will announce a new global ad sales infrastructure in a few weeks as part of the One Platform rollout.
The Rise of Instagram as a Shopping Destination for Consumers and Brands
As brands and influencers have flocked to Instagram, the social media platform is starting to become a major direct-to-consumer sales channel. Instagram has continued to create and extend its shopping features to more companies, and social-savvy direct-to-consumer brands, many of which got their start on the platform, will no doubt take advantage of the tools. For consumers, the ability to shop various brands within one app would eliminate the impracticality of bouncing from one site to the next, placing orders for one product or category of products at a time. For brands, it would mean landing sales right at the consumers’ point of discovery.
Instagram is laying the groundwork to be a powerhouse DTC shopping destination, perfecting shopping features like Buyer Protection before attempting to scale them. In 2019, Instagram also debuted a number of shopping tools, including in-app Checkout, Shopping from Creators, and a drop countdown to build hype before a product release.
The product lead for Instagram Shopping said “Our goal is to become a leading mobile e-commerce destination that helps you shop your interest, inclusive of when shopping is your interest.” The goal isn’t farfetched, with over 80 percent of Instagram users already saying the app helps them make purchasing decisions. And according to 2018 data from Adobe, social media was the fastest-growing driver of e-commerce referrals from 2016 to 2018.
Closing
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Introduction
This is Today in Five, for today, Wednesday, January 8th. Here are today’s headlines in digital disruption.
Ikea is the latest in a string of retailers who will no longer sell on Amazon.
First, here are the latest headlines.
New Study Underscores Importance of Customer Wait Times
Buy online, pick-up in-store services are becoming a popular method for consumers in a hurry and an increasingly important strategy for retailers. But the amount of time they have to wait to get their order in-store makes all the difference in their likelihood to return. According to a new study, customers who wait less than two minutes to get their buy online, pick-up in-store orders are more than 4 times as likely to return to the store than customers kept waiting for 10 minutes or more. In fact, customers who are kept waiting 10 minutes or more are less than 20 percent likely to come back, underscoring the importance of wait time as a whole.
Nordstrom Stock Upgraded
Nordstrom is officially separating from the department store pack. J.P. Morgan upgraded the stock to neutral and boosted its price target to $41 dollars from $26 dollars per share. The analysts cited inventory improvements, fewer markdowns, recovery in its off-price Rack unit, accelerating e-commerce and buy online, pick up in-store, and its location in mostly premium malls, among other factors, for the upgrade. Analysts also called the Nordstrom Local expansion along with its new flagship in New York City, a potential accelerator with a “market halo effect.” While the year won’t be smooth sailing for any department store, including Nordstrom, the retailer’s strategies and the diminished presence of Barneys, Hudson’s Bay Co., and Lord & Taylor could present Nordstrom with a “multi-year market share opportunity.”
Hudson's Bay Reaches Deal to Go Private
Hudson’s Bay Co has reached a new deal to be taken private by an investor group led by the retailer’s chairman, Richard Baker, the retailer announced late on Friday. The new agreement is for CA$11 dollars a share, an increase from a previous offer of C$10.30 dollars a share. Supporting the agreement this time is Catalyst Capital Group, Hudson’s Bay’s largest minority shareholder and an opponent to the previous deal. Hudson’s Bay plans to hold a special shareholder meeting in February to vote on the deal.
Ikea To No Longer Sell On Amazon Marketplace In The U.S.
Ikea will stop selling on Amazon after a U.S. pilot launched in 2018 to sell its Smart Lighting products ended. A spokesperson from the company said, “We are curious and keen on exploring new areas to get new insights on how to reach and serve more of the many people.” The announcement from Ikea is the latest in a string of brands leaving the Amazon marketplace, with many citing lack of control and counterfeits as their reason for exiting the platform. Birkenstock in 2016 said it would no longer sell its products on Amazon after a surge in counterfeit sales, and Nike in November 2019 announced it was exiting the platform to focus on its direct-to-consumer strategy. Ikea didn’t specify what marketplaces it will work with in the future, if any, though that may indicate it has something else in the works. In February 2019, the Swedish retailer teased the idea fo creating its own marketplace, which would include selling its rivals’ products, according to a Financial Times report.
Closing
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Introduction
This is Today in Five, for today, Tuesday, January 7th. Here are today’s headlines in digital disruption.
SmileDirectClub is starting off 2020 strong with a new partnership with Walmart. As part of the deal, SmileDirectClub will debut a host of products across Walmart’s more than 3,800 U.S. stores.
First, here are the latest headlines.
Bed Bath and Beyond Selling Some of Its Real Estate
Bed Bath and Beyond announced on Monday it has entered an agreement to sell about 2.1 million square feet of its real estate portfolio to private equity firm Oak Street Real Estate Capital and lease back the space. The spaces include retail stores, a distribution facility, and office space, according to a company press release. The company said the more than $250 million dollars generated from the transaction will go toward investing in Bed Bath and Beyond’s transformation efforts, funding share repurchasing, or reducing its outstanding debt. CEO Mark Tritton in a statement said, “This marks the first step toward unlocking valuable capital in our business that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value.”
Disney+ Already Valued at Over $100 Billion
According to an estimate from Barclays, Disney’s streaming service is already being valued by investors at more than $100 billion dollars less than two months after the launch of Disney Plus. Barclays pegs Disney’s core business, which includes its movie studio, parks, etc, at $213 billion dollars, leaving Disney’s direct-to-consumer streaming businesses worth around $107 to $108 billion dollars. Shares of Disney are about 6 percent above their closing price on November 11th, the day before Disney Plus launched. The stock is up more than 30 percent in the past year. Barclays said, “Just 6 weeks into launch, Disney is already pricing in a streaming business worth $108 billion, 69 percent of Netflix’s enterprise value which has taken 13 years to get here.” Disney has a market cap of about $260 billion, while Netflix is at about $144 billion.
Amazon Expands Footprint in India
Amazon is deepening its ties with India’s second-largest retail chain, Future Retail, as the e-commerce giant expands its footprint in one of its key overseas markets. The two companies said they have entered into a long-term business agreement to expand the reach of Future Retail’s stores through Amazon India marketplace. Future Retail operates more than 1,500 stores across India but has not aggressively explored sales online. As part of the agreement, Amazon India will become the authorized online sales channel for Future Retail stores. The two giants said they have agreed to focus on grocery, general merchandise, fashion and apparel, and beauty products.
SmileDirectClub Inks Exclusive Deal With Retail Giant, Walmart
SmileDirectClub announced that it has inked an exclusive deal with retail giant, Walmart, to debut a host of consumer products across its more than 3,800 U.S. stores and the retailer’s website. Initial products include an electric toothbrush, a teeth whitening system with an LED light, whitening toothpaste, a water flosser, and an ultrasonic UV cleaner. SmileDirectClub’s Chief Financial Officer said the deal was a long time coming and that they had been working on the products for over a year.
The deal is a win for the upstart company, as it gets the company instant name recognition inside the walls of the world’s largest retailer where many customers might be unfamiliar with the brand. Plus, the product lines are affordable and could move in good volume, which would benefit SmileDirectClub’s bottom line this year. It could also open the door to having SmileDirectClub’s teeth retainer installation shops inside Walmart stores if the products are successful. The company already has partnerships with CVS and Walgreens, displaying dedicated shops within their stores, and Walmart hasn’t ruled out shops opening at its U.S. locations. The retail giant has prioritized expanded, affordable healthcare services at the front of its stores in the past year, and SmileDirectClub shops would be a good fit.
Closing
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Introduction
This is Today in Five, for today, Monday, January 6th. Here are today’s headlines in digital disruption.
Tech companies are increasingly looking to establish their presence in New York City, creating job openings and drawing in top tech talent to the city.
First, here are the latest headlines.
Walmart Media Group Unveils Self-serve Ad Portal
Walmart Media Group, the advertising arm of the retail giant, unveiled a self-serve ad portal enabling marketers to easily purchase search and sponsored product ads. The move aims to give advertisers more transparency and control over their ads. The retailer also revealed deals with third parties like Flywheel Digital as part of the new Walmart Advertising Partners program. The new capabilities promise to streamline and enhance advertisers’ ability to target ads to the right customer at the right time through automation and easy access to data about Walmart shoppers both online and offline. The retail giant’s enhancement of its advertising offerings is part of a larger trend. Other retailers like Amazon and Target have also been improving their advertising platforms as brands look for alternatives to Facebook and Google.
Fire TV Passes 40 Million Users
Amazon announced that its Fire TV platform now has over 40 million users, up from the 34 million it claimed in May of 2019. The increase puts Amazon’s platform above competitor, Roku, which reported 32.3 million active accounts during its Q3 2019 results this past November. Roku and Fire TV have proven to be fierce competitors, with Roku’s TV hub spurring Amazon to launch its own free streaming service through its subsidiary, IMDb. While Roku has benefitted from its reputation as a neutral platform providing access to any streaming service, Amazon has been evolving to better support its rivals’ streaming services, including most recently YouTube, YouTube TV, and Apple TV’s app.
Little Caesars Launching Delivery Via DoorDash
Little Caesars Pizza has partnered with DoorDash to add delivery to its operations for the first time in its 60-year history, as more chains face pressure to get foods to customers beyond their restaurants. Beginning Monday, Little Caesars will add delivery via DoorDash from most of its nearly 5,000 stores. The new delivery deal could present new competition for rivals Dominos, Pizza Hut, and Papa Johns who have invested heavily in their delivery options. During an interview, Little Caesars Chief Executive said, “The consumer is going toward home delivery.” More restaurants are making their food available through delivery companies as customers increasingly migrate to those online platforms. A recent survey of 2,500 diners found that 26 percent had used an online delivery service in September 2019, up 10 percent from a year earlier.
Tech Giants Look To New York City For Space And Talent
Silicon Valley has long been known as the top hub for tech talent and advancement, but could it be facing a new rival? New York has been at the center of the top tech companies search for new office space. Facebook was among those searching for new office space in New York big enough to fit as many as 6,000 workers, more than double the number it currently employs in the city. The company’s move is part of a rush by the West Coast technology giants to expand in New York City. The rapid growth is turning a large part of Manhattan into one of the world’s top tech hubs.
Amazon, Apple, Facebook, and Google already have big offices along the Hudson River, from Midtown to Lower Manhattan, or have been searching for new spaces, often competing with one another for the same space. In total, the companies are expected to have roughly 20,000 workers in New York by 2022. The growth in New York is occurring largely without major economic incentives from the city and state governments following the outcry last year over at least $3 billion dollars in public subsidies that Amazon was offered to build a corporate campus in Queens. The retail giant canceled its plans abruptly in February but is continuing to add jobs in the city at a slower pace.
Tech companies are choosing to tap into New York’s wealth of talent. The number of tech jobs in New York City has surged 80 percent in the past decade according to the New York State Comptroller’s office. Since 2016, the number of job openings in the city’s tech sector has jumped 38 percent. In November, New York had the third-highest number of tech openings among United States cities, behind just San Francisco and Seattle.
Cities across the country and around the world have attempted to establish themselves as worthy rivals to Silicon Valley. New York City is certainly not anywhere near overtaking the Bay Area as the nation’s tech leader, but it is increasingly competing for tech companies and talent.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Friday, January 3rd. Here are today’s latest headlines in digital disruption.
Once the leading force in the beauty market, department stores have lost their footing to Ulta, the rise of e-commerce, and influencer marketing.
First, here are the latest headlines.
It's Return Season
It’s officially return season. According to a company press release, UPS expects to process 1.9 million returns today. The predicted number reflects a 26 percent year over year increase. Per the release, the increase, “illustrates how e-commerce continues transforming shopping patterns.” A report from Oracle Retail stated that 77 percent of consumers plan to return a portion of their holiday gifts, with 65 percent returning in-store and 32 percent anticipating a return via mail.
Survey Shows 40% Have Purchased from DTC Brands
A new survey from communications agency, Diffusion, revealed that 40 percent of Americans have made a purchase from direct-to-consumer brands. Of those shoppers, 14 percent said they made between 1 and 19 percent of their purchases from direct-to-consumer companies. Notable categories for DTC purchasing over traditional retail included health and beauty products, apparel, and tech and gadgets. Shoppers reported the leading reason for choosing direct-to-consumer over traditional retailers was cost, followed by fast, free shipping.
Survey Shows Adding Recommendations to Item Detail Page Increases Revenue
According to a case study from Dynamic Yield, E.L.F. Cosmetics found that revenue per user increased after adding product recommendations to item detail pages. Adding a ‘You may love’ section of recommended products garnered a lift in click-through rate of more than 23 percent, per the report. The beauty company also saw a 17.6 percent increase in mobile menu clicks after personalizing the menu based on users’ past shopping behaviors. The case study illustrates the growing importance of personalization to attract customers. A 2018 survey from Accenture and the Retail Industry Leaders Association revealed that 63 percent of consumers are interested in personalized recommendations. Another survey revealed that 93 percent of businesses with advanced personalization strategies increased their revenue in 2018.
Ulta Beauty, Influencer Marketing, and The Rise of E-Commerce
As retailers like Ulta Beauty and Sephora have won over shoppers, the former cosmetics powerhouse – the department store – has lost its strong footing in the market. Social media and influencer marketing has helped see the rise of specialty stores and cultivated a number of billion-dollar upstart beauty brands that are going head-to-head with established players like Estee Lauder. Since 2009, U.S. beauty and personal care sales have risen 52 percent according to market research from Euromonitor. The global cosmetics industry is expected to hit $430 billion dollars by 2022.
It’s an uphill battle for department stores as consumer trends shift. More shoppers are opting for natural looks, and increasingly searching for clean beauty brands to use. Ulta’s strength has been its focus on becoming a one-stop destination for shoppers by offering several services in-store. Its appeal has also been assisted by its celebrity brands. Sephora launched its product line, Clean by Sephora, with the chief merchandiser officer noting, “The past decade has been a time of significant growth and change for the beauty industry.”
Department stores are also facing challenges as the rise of e-commerce eats into their normal foot traffic. Many stores are revamping their strategy to re-engage with their beauty customers. Nordstrom has shifted its beauty strategy by dedicating two of its floors in its new Manhattan flagship to the category. The store also recently partnered with Glossier to have pop-up experiences with the popular brand. Macy’s general business manager for beauty said, “Technology and experiential components will continue to be paramount to successful beauty campaigns, launches, and displays.”
With the rise of e-commerce and social media, influencer marketing has become a preferred tactic for beauty brands. Social media marketing, coupled with the boom in e-commerce, has bred a mega-industry, with online beauty projected to be worth $38 million dollars by the end of 2023. According to a survey, 58 percent of respondents admitted they purchased a product because of an influencer. “All of the power went from manufacturers and retailers to the consumers themselves...Now we have social media where makeup artists are going on there and showing people exactly what to do.”
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Thursday, January 2nd. Today we’ll take a look back at the biggest trends and headlines of 2019 as we start the new year.
2019 was a big year for the retail and e-commerce industries. Between record-breaking holiday sales, tariff concerns, CEO departures, and more, there’s a lot to cover. So here are a few of the things we thought were noteworthy in 2019.
Black Friday / Cyber Monday Smash Online Shopping Records
In 2019, Black Friday and Cyber Monday broke records. Digital sales were up 20 percent this latest Black Friday, reaching $7.4 billion dollars across 4,500 retail websites that Adobe Analytics tracked. It became the second-largest online shopping day in history. If you thought that was a lot, Cyber Monday 2019 blew it out of the water, reaching a whopping $9.4 billion dollars in online spending. Not only does this indicate the growing importance of retailer’s digital strategies, but it’s a sign of the changing times for the consumer. The convenience of online shopping and the world of Amazon has had a radical effect on the retail landscape and we can’t wait to see how that further develops in 2020.
Bezos' Statement Highlights Sustainability Drive
Speaking of Amazon, they made headlines numerous times in 2019. Notably, Jeff Bezos made steep claims to achieve the terms of the Paris Climate Agreement a decade earlier. His statement marks a deeper cause, one that many retailers are working hard on. Sustainability and being aware of environmental impact has taken over global headlines and retailers are feeling the effects. More consumers are looking for brands that create sustainable products and find ways to offset their environmental impact. As a result, businesses like Allbirds have seen incredible success because of their mission to focus on sustainably and ethically-made products in the industry.
Demand for Sustainability Drove Resale Industry
Consumer demand for sustainability has created a boom in the resale industry. Once thought of as taboo, secondhand clothing and resale businesses like ThredUp, The RealReal, Poshmark, and even rental companies like Rent the Runway, are at the top of the pack in a market that’s expected to hit $51 billion dollars by 2023. 2019 saw a lot of new players try to break into this market, even the Kardashians are taking a swing with Kardashian Kloset. Brands like H&M, Urban Outfitters, and Banana Republic are introducing clothing rentals to their strategy to reach the mindful consumer.
Amazon and Walmart Led Way in Same-day Grocery Delivery Wars
Same-day grocery delivery wars waged on in 2019. Amazon and Walmart led the pack, but Walmart still has the upper hand. The retailer has even been testing autonomous delivery in certain markets. But as Amazon continues to work on its own grocery chain separate from it’s already owned Whole Foods, it will be interesting to see how this continues to develop in 2020.
Amazon's Free Shipping Driving Consumer Demand
Amazon has also put many retailers in a bind by driving consumer demand for fast and free shipping. Their rollout of same-day delivery drew a line in the sand that not many could cross over because of the margin-cutting impact it would have. Even Amazon saw their profits take a hit after making the transition. Target, after acquiring Shipt, was able to answer the same-day delivery call through the delivery service. Buy-online pick-up in-store services have also risen as a viable option for retailers and it’s one consumers seem to have embraced, driving a 43 percent uptick in buy-online pick-up in-store orders on Black Friday alone. 2020 will force a lot of retailers to look at their logistics and find creative ways to deliver on fast shipping.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Thursday, December 26th, here are today’s headlines in digital disruption.
Over the summer, Target announced it was opening mini Disney theme shops within some of its stores, as well as a Disney digital experience in the Target app. With movie-based toys increasing in popularity, this is a winning partnership for the two companies.
First, here’s what’s making headlines.
E-Commerce Traffic Rose Significantly the Weekend Before Christmas
According to the Verizon Holiday Retail Index, e-commerce traffic rose by double digits the weekend before Christmas. Compared to last year, traffic rose 21 percent on Friday the 20th, 21 percent on Saturday the 21st, and 14 percent on Sunday the 22nd. The analysis from Verizon indicates that the combination of promotions and shipping deadlines drove solid results for the weekend.
Super Saturday Breaks Sales Records
Not only did e-commerce traffic rise, but the last Saturday before Christmas, known as Super Saturday, broke sales records. According to figures from retail consulting and research firm, CGP, Super Saturday sales on the 21st reached a record $34.4 billion dollars, marking the largest single-day in U.S. history. The sales day was 10 percent above Black Friday’s $31.2 billion dollar total this year. Cumulatively, digital sales have comprised 58 percent of the year-over-year growth in holiday retail spending in 2019.
E-Commerce Returns Could Be Nearly $42 Billion for Holiday Season
The total value of e-commerce returns over the holiday season could reach $41.6 billion dollars. The overall return rate is growing about 10 percent annually, straining storage space as the reverse logistics process can require 15 to 20 percent more space than outbound logistics. A well-run reverse logistics operation will become increasingly important as retailers continue to strive for sustainability goals that include waste components. The returns process results in about 5 billion pounds of waste and 15 million metric tons of carbon emissions from transportation every year, according to a CBRE report.
Disney and Target Join Forces In A Winning Partnership
Over the summer, Target announced it was opening mini Disney theme shops within some of its stores, as well as a Disney digital experience in the Target app. With movie-based toys increasing in popularity, this is a winning partnership for the two companies. Target has always sold Disney-licensed products, but the new arrangement ups the count and gives the retailer exclusive products that are otherwise sold only at Disney stores.
Beyond that, the store is creating an "experience," the new way to the customer's heart. This features a lounge area in which movie clips are played on a large screen surrounded by Disney merchandise, music, interactive displays, movie-based games, and props for photo ops. The shops are only available at 25 Target stores, but the company is planning for at least 40 in total.
Target couldn’t have timed the shops more perfectly, coinciding with both the holiday season and the release of two anticipated Disney hits. Disney is already benefiting from the movie hype. CEO Bob Iger said that during the fourth quarter of 2019, "Consumer products operating income was up 36 percent due to growth in merchandise licensing, as a result of strong revenue growth from sales of Frozen and Toy Story merchandise,”. Target also saw a sales boost during the fourth quarter, part of which was fueled by toys.
With its huge reach, including all 50 states, strong customer satisfaction, and well-organized fulfillment options, Target is a natural ally for Disney.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Friday, December 20th, Here’s today’s headlines in digital disruption.
There’s a lot of buzz around digitally-native brands, but while direct-to-consumer brands struggle to reach profitability, private labels are thriving.
First, here’s what’s making headlines.
Hibbett Sports Gets New CEO
Former CEO of City Gear will be stepping into the CEO role at Hibbett Sports. He’ll be replacing Jeff Rosenthal, who announced his plans for retirement earlier this year. According to the chairman at Hibbett Sports, they believe that their newly appointed CEO is uniquely qualified to help strengthen Hibbett’s leadership position in both the customer experience and the active footwear and apparel industry.
Secondhand Market Growing Rapidly
The secondhand market is growing rapidly thanks to players like The RealReal, ThredUp, and Poshmark and is showing no signs of slowing down. The growth comes at a time when younger consumers are increasingly concerned about sustainability. Fueled by millennials and Gen Z, the secondhand market is on track to more than double over the next five years, from $24 billion dollars to $51 billion dollars, according to ThredUp.
Influencer Activity on Instagram Surged
Influencer marketing activity on Instagram surged this year as more brands partner with influencers to reach younger consumers. The number of posts with the #ad hashtag indicating an Instagram post is sponsored has risen 48 percent to more than 3 million this year. Millennials dominated influencer marketing, with more than half of influencer content created by people between the ages of 25 to 34, while only 34 percent of the app’s user base is in that age group.
Digitally-Native Brands Struggle While Private Labels Thrive
There’s a lot of buzz around digitally-native brands and their disruption of traditional retail. But an in-depth look at Bonobos and Walmart’s strategy banking on digitally-native brands reveals some cracks. Bonobos was the most well-known brand that started online and sold direct-to-consumer. With Andy Dunn at the helm, the company built its reputation as the pioneer in the consumer space.
But, like any trailblazing company, Bonobos made mistakes along the way. It built its own e-commerce and logistics infrastructure, at a significant cost, and raised an immense amount of money to do so, nearly $130 million dollars over six years. It sold to Walmart for $310 million dollars, just over its previous private round valuation and for about two times revenue.
Walmart since snapped up Jet.com, Moosejaw, ModCloth, Bare Necessities, and more, in hopes to compete with Amazon through digitally-native brands. However, the strategy hasn’t paid off and it is currently phasing out Jet.com, sold ModCloth to an investment firm, and it’s reported that Bonobos still remains unprofitable. Walmart has since said it plans to incubate its own private label brands as they shift strategies.
The speed at which unprofitable digitally-native brands have grown starkly contrasts that of private labels, with companies like Target and Walmart scaling their private labels to billions of dollars in revenue in as little as one year. A built-in audience, a stringent focus on costs and margins, and a diverse marketing strategy makes this possible.
Heading into 2020, private labels will continue to dominate more as rising acquisition costs show no signs of reversing.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Thursday, December 19th. Here is today’s headlines in digital disruption.
While many blame Amazon for driving high consumer expectations, it also seems to have clear benefits for retailers trying to keep up by driving businesses to create new resources and fulfillment networks for smaller retailers.
First, here’s what’s making headlines.
Third-Party Delivery Services Now $10 Billion Industry
The online shopping trend has affected more than just retailers. Consumers have also shifted to ordering their food online through delivery services like Uber Eats and DoorDash. According to Technomic, consumers looking for convenient food delivery spent $10.2 billion dollars through third-party delivery services in 2018. Restaurants have scrambled to be a part of the new $10 billion dollar industry, with McDonalds forming partnerships with Uber Eats, DoorDash, and GrubHub. The fast-food chain is now forecasting $4 billion dollars in global delivery sales in 2019. While there’s no doubt food-delivery apps are changing the industry, it remains to be seen if they can achieve profitability. GrubHub, the only profitable delivery provider, reported third-quarter net income of $1 million dollars, down from $23 million dollars a year earlier. DoorDash and Postmates are both looking to go public in 2020.
Jared, James Allen Partner for Concept Store
Jared is partnering with digitally-native jeweler, James Allen, for a new concept store. Jared is known for its professional diamond consultants and personalized service. James Allen is one of the largest online diamond and bridal jewelry retailers, with a collection of over 250,000 thousand certified loose diamonds. The Jared and James Allen store is designed to provide a modern, elevated omnichannel shopping experience where customers feel comfortable shopping at their own pace. In a switch from traditional jewelry displays, the display cases open in the front, allowing shoppers to view jewelry from all angles. Bill Brace, the executive general manager of Jared said, “Our collaboration with James Allen allows Jared the opportunity to create a new and richer experience for our customers and create a modern environment for jewelry shopping.”
Amazon Banning FedEx Ground or Home for Third-Party Sellers
Amazon is banning third-party sellers from using FedEx Ground or Home on Prime orders beginning this week. Amazon cited a decline in performance as its reason behind preventing sellers from using the carrier. According to the company, the temporary ban will continue, quote, “until the delivery performance of these shipping methods improves,” end quote. FedEx Express will still be available to Amazon Prime sellers and standing non-Prime orders can still be shipped through FedEx Ground and Home.
Amazon Drives Fulfillment Network Expansion
When the founder of Supply, a specialty shaving products company, wanted to boost sales almost four years ago, he turned to Amazon. He added the company’s razors and shaving bowls to the marketplace in 2016 and was able to use the e-commerce giant’s fulfillment service to ship orders, supplementing what they were handling themselves. Three years later, he pulled Supply products from Amazon, citing fulfillment costs and seller fees shaved margins, among other issues. He said, “If you’re trying to build something, a brand, a relationship with customers, Amazon’s not a good place...Before I took it off Amazon, they started advertising their Amazon razors on my page.” He turned to Shopify, which this year started rolling out its own distribution service.
For company’s like Supply, Amazon’s vast market reach and power could be a good thing. The e-commerce giant’s dominance of digital sales has sparked a fast-growing ecosystem of startups and services aimed at matching Amazon’s growing network and at helping retailers and brands meet rising consumer expectations. The new businesses are creating competition for Amazon, even as the giant itself continues to disrupt traditional retail and distribution strategies.
Some of the new companies cater to brands that might sell on Amazon but don’t want to pay fulfillment charges, or that view Amazon as a competitor. Some major brands have distanced themselves from the e-commerce giant, with Nike recently deciding not to sell on Amazon anymore. Instead, they chose to use tools they’ve either built themselves or brought in from other companies.
Businesses like Shopify, Wix.com, and Squarespace help sellers set up their digital stores and process payments. And a growing lineup of new software firms offer tailored technology to tell retailers where to keep their inventory. Players well known for helping customers with their online stores, like eBay and Shopify, plan to offer physical distribution services, using technology to create a network of third-party warehouse operators.
Traditional logistics providers are even developing e-commerce services for direct-to-consumer brands and small businesses. FedEx Chief executive said in a September interview that, “The way the war is going to evolve, it’s essentially going to be Amazon with their 150 fulfillment centers...against the Walmarts with 4,700 stores or the Targets with 1,800 stores or the Best Buys with 1,000 stores.”
While the Amazon Marketplace continues to dominate e-commerce, it appears to have also driven vast amounts of opportunities and resources for retailers trying to keep up.
Closing
Want to stand out? Simplr can help deliver wow moments for your customers through unparalleled customer service support. Visit simplr.ai to learn more. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of Today In Five. I’m Vincent Phamvan, and we’ll see you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Wednesday, December 18th. Here's today’s headlines in digital disruption.
As we enter a new era of entertainment where streaming services online is becoming a more popular alternative to cable subscriptions, Disney has made key strategic moves to stay at the top of the market. But is it enough to compete with players like Netflix and Amazon?
First, here’s what’s making headlines.
Mobile Shopping Dominating in Fashion Retail
According to a report, mobile phone shopping accounted for nearly 67 percent of traffic for fashion retail sites and 52 percent of sales. Mobile conversion rates increased by 53 percent since last year’s holiday season. Recent reports have indicated mobile shopping is a crucial element to holiday shopping this year, with BounceX predicting that consumers would shop more on mobile than desktop and another report from BillTrust indicated more than half of shoppers planned to shop via mobile devices for gifts this year.
Lyft Launching Car Rental Service
Ride-hailing company, Lyft, announced that it’s launching its own car rental service. The service is available in the company’s main smartphone app and will work like traditional car rental companies, starting in the San Francisco Bay Area and Los Angeles. Uber previously entered the rental space with a partnership with car-sharing company Getaround, but shut the program down at the end of 2018. Both Uber and Lyft have also rented and leased cars on their platforms in the past, but Lyft’s new service is the biggest attempt at taking a bite out of the rental car market, which is dominated by just a few players who are already trying to prevent losing customers to ride-hailing companies.
H&M Reports Stronger Sales
H&M reported stronger quarterly sales, indicating that the fast-fashion retailer’s efforts to adapt to changing consumer habits and increased competition are starting to pay off. The company reported a 9 percent rise in fourth-quarter sales and its shares climbed almost 2 percent. H&M has relied on selling low-price apparel in bulk but is now overhauling that strategy as consumers shift to online shopping, where the brand faces fierce competition from digital-only rivals. The company is now speeding up its supply chain and stocks its stores more efficiently through customer data analysis to stay competitive in an evolving consumer landscape.
Disney Adapts To The Evolving Entertainment Industry
Media companies have faced many challenges as more people stream content over the internet instead of paying for cable subscriptions, but Walt Disney has managed to stay on top in the movie business. The company released six of the eight highest-grossing films so far in 2019, with titles like Avengers: Endgame, The Lion King, and Toy Story 4 helping it reach $10 billion dollars at the global box office. Disney’s success can ba party attributed to a series of strategic acquisitions over the past decade. In 2009, the company bought Marvel for $4.3 billion dollars. The deal came shortly after Disney purchased Pixar for $7.4 billion dollars. And in 2012, Disney acquired Lucasfilm for $4 billion dollars. The company’s acquisitions have paid off, with Disney’s box-office haul representing over 30 percent of money made in the U.S. film industry in 2019, up from 11 percent in 2009 according to data from Comscore.
But as Disney enters into 2020, it’s facing a dramatically changing media landscape. Competitors like Netflix, Amazon, and Apple have upped their spending on content and created a fierce streaming war, with all platforms vying for a share of consumers’ wallets and Hollywood talent. Disney has made moves to retain its competitive edge in the new streaming age. In the last year, it closed a $71 billion dollar acquisition of 21st Century Fox’s entertainment assets, launched Disney+, gained control of Hulu, and released the highest-grossing movie in cinematic history, Avengers: Endgame.
With its first 24 hours, Disney+ had 10 million sign-ups, and analysts predict the company will hit 20 million subscribers before the end of the year. Bob Iger, Disney’s CEO, has said that within a year of Disney+’s launch, the number of original shows and movies will go from 10 to 45. He also noted that within five years, there will be more than 60 original projects on the service. The company is also forecasting it will have between 60 million and 90 million subscribers by the end of 2024.
While Disney+ has had a strong launch, it still remains to be seen if it will be enough to compete with Big Tech companies in the long run. Iger has also announced he will be stepping down in 2021, leaving uncertainty around who will lead the company in this new era of entertainment. In the last decade, Iger has helped grow Disney’s market cap from $60 billion dollars to more than $265 billion dollars.
Closing
Thanks for listening to this latest episode of Today In Five. Don’t forget to subscribe and leave us a review. I’m Vincent Phamvan, and we’ll see you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
This is Today in Five, for today, Monday, December 16th, I'm Vincent Phamvan with today’s headlines in digital disruption.
The ugly Christmas sweater craze is more than a tradition for one retailer, it’s their entire business. Ugly Christmas Sweater.com has found success selling bizarre and fun holiday sweaters online.
Hulu Launches Ad Experience Targeting Binge-Watchers
Hulu launched a new ad experience that allows brands to specifically target binge-watchers. The ads will utilize machine learning techniques to determine when someone has begun to binge-watch a show and will display contextually relevant ads acknowledging a binge is underway. Hulu says it made sense to target binge-watchers because it’s such a common way for people to watch their favorite shows. 75 percent of consumers in the U.S. say they binge-watch, and on Hulu specifically, nearly 50 percent of ad-supported viewing hours are spent during binge-watching sessions. Among the brands to use the new ad format are Kellogg’s, Maker’s Mark, and Georgia-Pacific.
LuLulemon Says Cites Men as Promising Customers
Lululemon built its brand by driving the athleisure trend with women, but it’s now saying its most promising customers are men. Lululemon’s chief executive, Calvin McDonald, said total revenue for men’s apparel grew 38 percent in the third quarter, citing strong sales of outwear, pants, and underwear. Executives also told investors that 21 percent of Lululemon’s $3.8 million dollars in sales last year came from men’s products. McDonald said the company plans to double its men’s business by the end of 2023.
Walmart Loses a Top Digital Executive
One of Walmart’s top digital executives is stepping down. Andy Dunn, founder of Bonobos and senior VP of digital consumer brands at Walmart, announced he was leaving the company in a LinkedIn post. Dunn joined Walmart in June of 2017 when the retail giant acquired Bonobos. Dunn didn’t give any indication about why he was leaving Walmart, but his departure comes at a time when Walmart is scaling back its efforts to acquire digitally native brands to focus on incubating more of its own brands.
The Ugly Christmas Sweater Craze Drives One Retailer’s Business
It’s holiday party season and one company has built its entire business around the ugly Christmas sweater craze. At first, the company sold sweaters with just a retro reindeer or Santa, but now they feature Popeye’s chicken sandwiches and biscuits and lobsters from Red Lobster, and they’re going viral. The co-founder of Ugly Christmas Sweater.com has turned the business into one of the biggest sellers of ugly holiday sweaters, with the company’s latest Popeye’s chicken sandwich sweater becoming an instant success.
In just a few years, ugly Christmas sweaters have evolved from a byproduct of hipster culture to an annual tradition embraced by entire families. According to the company’s co-founder, they first noticed the ugly holiday sweater trend in 2011, when people were having ugly sweater parties at home. After going on eBay and seeing some of the sweaters going for $100 to $300 dollars, he decided to get in on the action. He and his brother launched Ugly Christmas Sweater.com in 2012, funding it with $5,000 dollars of their own money.
The first year, they made $40,000 dollars in sales, but the following year, revenue jumped 300 percent and it kept climbing. The co-founder said that competition has grown, with retailers like Costco, Walmart, Macy’s, and Nordstrom all selling ugly sweaters, “so we’re always thinking about how we can stay ahead and stay competitive.” The styles have evolved to contain more bizarre selections like 3D sweaters and even politically-themed designs. “But it’s all in the spirit of fun,” said the co-founder.
Closing
Don’t forget, Simplr can help you scale up for the holidays with 24/7 customer service support. Learn more at simplr.ai. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of Today In Five. I’m Vincent Phamvan, and we’ll see you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Friday, December 13th, I'm Vincent Phamvan.
As you’ve seen in the past few months, the lines between retail and consumer services are quickly fading. Next week, we’ll be rebranding this podcast as Today in Five, a daily briefing on all things digital disruption.
Unilever acquired Dollar Shave Club for $1 billion dollars over three years ago and the service still isn’t making money. Executives discovered the average cost of acquiring each new customer was about the same online as in stores.
First, here are some retail headlines.
Old Navy Partners with Postmates for 24 Hour Delivery
Old Navy has formed a partnership with delivery service, Postmates. The retailer has offered same-day buy online, pick up in-store services since last year, but with the new Postmates partnership, customers will now be able to have merchandise delivered to them within 24 hours. The new option will be available through the end of January, but according to a Postmates spokesperson, they’re exploring longer-term opportunities. Old Navy hopes the partnership will help bring in a surge of last-minute holiday shoppers.
Ulta Beauty Q3 Net Sales Up 8% Over 2018
Ulta Beauty announced net sales of $1.68 billion dollars for the third quarter, an almost 8 percent increase from last year. The beauty retailer has continued to post strong sales, but the weak cosmetics market is still having an impact. Ulta had to lower its guidance Q2 and CEO, Mary Dillon, said that the U.S. makeup category was in a “down cycle,” since 2017 and has continued through 2019. They noted that consumers were still buying makeup, even for natural looks, but skincare products now make up a large part of the retailer’s continued success as the category has grown in popularity with younger consumers. As a result, the retailer expanded its skin bar, which offers services like facials and mineral infusions.
Nectar Focusing on Partnerships with Physical Retailers
Online mattress startup, Nectar, has turned its focus on partnerships with physical retailers. The company’s CEO said 80 percent of consumers still don’t want to buy a mattress online. He noted there was a tremendous amount of opportunity for growth with those 80 percent of consumers who want to try a mattress in-store first. The brand has signed on over 1,000 retail partnerships over the past 10 months and is seeing faster sales growth in-store than with online sales. They believe the trend will continue. The CEO noted that they think the investments in retail partnerships are worthwhile and ultimately end up costing less than what they spend on online marketing.
Digitally-Native Brands Find Profitability In Traditional Brick-And-Mortar
Nectar isn’t the only digitally-native brand to notice the importance of traditional brick-and-mortar. That reality is hitting many of the world’s biggest companies that have collectively invested billions of dollars in digitally-native direct to consumer brands. Upstart brands are also realizing they have to move into stores to gain critical visibility and reach consumers who want to buy household staples in one trip instead of through a subscription model.
Unilever acquired Dollar Shave Club for $1 billion dollars over three years ago and the service still isn’t making money. Executives discovered the average cost of acquiring each new customer was about the same online as it was in stores. Dollar Shave Club is expected to break even next year, but Unilever has determined it, “doesn’t make financial sense to sell staples as an online subscription.”
The Chief Executive of Procter & Gamble said the company is still trying to figure out how to turn recently acquired brands into profitable businesses. He said, “There are many, many launches that grow fast, and people call them successes because they grow fast...We’re in the world of having to create value, not just grow. A business model that makes money is a higher challenge.”
Closing
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Introduction
With your Retail E-Commerce Briefing for today, Thursday, December 12th, I'm Vincent Phamvan.
Walmart has partnered with robotics company, Nuro, to test driverless grocery delivery in Houston. Autonomous grocery delivery is still in its early stages, but as big players like Walmart pilot the new technology, it could see a wider rollout in the coming years.
First, here are some retail headlines.
Chewy Q3 Sales Up 40%
Online pet retailer, Chewy, reported that third quarter sales grew 40 percent to $1.23 billion dollars from $875.6 million dollars last year. The numbers beat analysts’ estimates, causing shares to rise over 3 percent in after-market trading. Chewy, which was acquired by PetSmart in 2017, grew its active customer base 33 percent in the most recent quarter to over 12 million. Pet owners are projected to spend over $75 billion dollars on their animals this year alone according to the American Pet Products Association. Chewy’s CEO said, “We believe that there is significant market opportunity ahead of us.”
Stitch Fix Reports Growth
Stitch Fix also reported good numbers for the latest quarters. The company reported net revenue of $445 million dollars, reflecting 21 percent year-over-year growth according to a press release. The styling service also reported that its active client base hit 3.4 million, increasing 17 percent year-over-year. The increase comes after the company rolled out new tech features, including direct-buy options like “Shop Your Looks”, which is “hyper-curated and algorithmically personalized to every client,” and “Shop New Colors”, which lets customers buy previously purchased items in new colors, prints, and sizes.
Amazon Reconsidering NYC
Less than a year after its plans for a second headquarters in New York fell through, retail giant Amazon is reconsidering. According to CNBC, Amazon plans to lease 335,000 thousand square feet of office space in Manhattan. A state representative said the decision was a victory since the expansion didn’t yield the $3 billion dollar performance-based incentives leaders promised Amazon in exchange for 25,000 thousand jobs. The new space will bring a fraction of the jobs Amazon had promised for its second headquarters, housing more than 1,500 employees according to the Wall Street Journal. An Amazon spokesperson said the new office space will open in 2021.
Walmart Partners With Nuro To Test Autonomous Grocery Delivery
According to a press release, Walmart has partnered with robotics company Nuro to debut autonomous grocery delivery in Houston. Over the next few months, Nuro delivery will be made available to Walmart customers who have opted into the service in the Houston area. The program will expand to the general public later in 2020. In a statement from the retailer, they believe that the pilot will give them valuable insight and enable them to develop and refine their service.
Autonomous grocery delivery is still in its early stages, but as big players like Walmart and Kroger test the new technology, it should see a wider rollout in the coming years. Nuro recently got $940 million dollars in financing and plans to expand to new cities, form new partnerships, and scale its fleet. Kroger launched a driverless test with Nuro earlier this year and Domino’s followed suit.
Though big players seem on board with the driverless technology, consumers are still unsure, expressing concerns over safety. States and cities are also still working through regulations as the tech becomes more common.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Wednesday, December 11th, I'm Vincent Phamvan.
Facebook is in talks to lease a building in Manhattan, a deal that would make it one of New York City’s largest corporate tenants.
First, here are some retail headlines.
Uber May Extend Delivery to Most Retailers
In a statement from the CEO of Uber, the popular ride-hailing company could extend its food delivery service to offer delivery services for retailers. He said, “We can extend that food delivery model to essentially every single local retailer so that anything you want in New York City can be delivered to you, hopefully in under 30 minutes.” The statement comes at a time when Uber is widening its fast-growing food delivery app to include groceries and other goods.
Disney+ May Hit 20 Million Subsribers By End of Year
Disney Plus is estimated to hit 20 million subscribers before the end of the year. Analysts previously estimated the streaming service to hit 14.3 million subscribers but upped their estimates after healthier than expected app downloads and subscriptions indicated by Verizon. Disney Plus has had a successful launch in an increasingly crowded market. In the coming months, AT&T’s Warner Media will launch HBO Max and NBCUniversal will launch its streaming service, Peacock. Apple’s streaming service launched earlier this month, but with a limited streaming library.
Duolingo Valued at $1.5 Billion
Language-learning app, Duolingo, is now valued at $1.5 billion dollars after a $30 million dollar investment by Alphabet. The new round of funding made Duolingo the first Pittsburgh-based tech start-up to be valued at more than $1 billion by venture capital investors. The company has raised a total of $138 million dollars to date. Duolingo has also made the CNBC Disruptor 50 list for two consecutive years and has seen a big jump in bookings, from $1 million less than three years ago to $100 million. According to a general partner at CapitalG, “Duolingo has been adding user and revenue at an impressive pace, continuing to solidify their position as the number one way to learn a language globally...The team has demonstrated that sticking to their mission providing free education is not only good for the world but also good for business.”
Facebook Considers Big New York Office Expansion
Facebook is in talks to lease a building in Manhattan, a deal that would make it one of New York City’s largest corporate tenants. According to sources familiar with the matter, the social media giant is interested in a vast amount of space at the Farley Building in Midtown Manhattan. The new space would be in addition to Facebook’s recent deal to lease 1.5 million square feet at the new Hudson Yards development, which the company announced last month.
A lease at Farley and Hudson Yards, combined with its existing offices in the city, would bring Facebook’s total footprint to more than 3 million square feet of New York office space, putting the company in the top ranks of the city’s largest corporate tenants. If the Farley deal is completed, the leases would create space for more than 14,000 Facebook employees. Amazon had previously planned on opening its second headquarters in the city, promising to create over 20,000 jobs before the retail giant abruptly canceled its plans.
New York is becoming a prime location for tech companies. When Amazon backed out of its headquarters plan in the city, many thought it would discourage other players from considering the location, instead, interest has grown. Google, Apple, and Spotify have acquired office spaces in the last two years and others with existing presences are looking to expand.
In an emailed statement, a Facebook spokeswoman said, “It’s hard to predict future growth, but we believe New York is a vibrant market with a tremendous pool of talent.”
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Tuesday, December 10th, I'm Vincent Phamvan.
Rent the Runway just formed a partnership with W Hotels to create a unique clothing rental experience. The company has embraced partnerships as they’ve continued to grow and it’s since influenced how traditional retail players innovate.
First, here are some retail headlines.
IKEA Buys Majority Stage in Optoro
IKEA announced it bought a majority stake in U.S. startup, Optoro. The tech startup helps retailers manage returns more efficiently, which is a growing need as shopping moves online and return volumes grow. IKEA will roll out Optoro’s functionality to distribution centers, stores, and its customer support center in the United States, and will look at taking it to other markets. In a statement, a company executive said, “Optoro’s solution will enable us to eliminate much of the waste created in the reverse supply chain, from minimizing the carbon emissions released in return shipping to finding the best next homes for returned items.”
Target Plans Times Square Small-Format Store
Target announced its plans to open a new small-format store in Times Square. Expected to open in 2022, the store would be the retailer’s 10th opened or planned small-format store in Manhattan, which the company describes as a priority growth market for the company. Target has found success opening its small-format concept stores, with the company’s COO John Mulligan noting the retailer opened seven small format stores in the third quarter and another six in November with plans to open 30 small-format stores per year. On a conference call, Target CEO Brian Cornell said the expansion of its smaller stores was taking Target into new neighborhoods. “Those are guests that were not shopping Target on a regular basis before, they are now.. Target has been stealing market share and expanding sales this year, posting improved performances with each quarter. The store’s growth stems from the retailer’s investments in both its private labels and its stores.
Crocs CEO Says Teens are Loyal Customers
According to Crocs CEO, Andrew Rees, teen shoppers are more loyal than you’d think. Rees said, “When they’re buying something that provides a lot of value, they stick with it.” Teens are choosing to wear Crocs more and more. The company ranked as the seventh most popular footwear brand among teens this fall, its highest ranking ever, according to a survey from Piper Jaffray. Last fall, Crocs ranked 13th. According to Rees, teens are important because they influence parents and siblings, along with sharing on social media. They’re an important consumer because they’re able to bring more people to the brand.
Rent the Runway and W Hotels Create New Rental Experience
Rent the Runway has partnered with Marriott International’s W Hotels to create a truly unique rental experience. At four W Hotels locations, visitors will have the option to pay a $69 dollar fee and pick four styles from Rent the Runway’s curated selection to wear during their stay. The clothing options will take into account the climate of the area and surrounding activities like skiing or swimming. Rent the Runway will ship the items to W Hotels where they’ll be delivered to people’s hotel rooms. At checkout, the clothes can be left behind in the room. Rent the Runway will also have mini closets stocked with outfits at the four hotels in case sizes don’t work or customers want additional items during their stay. Rent the Runway COO, Maureen Sullivan, said the plan is to grow to other properties in W Hotels’ portfolio over time.
Rent the Runway how been expanding on its partnerships recently. It has drop-off boxes in select WeWork and Nordstrom locations, along with a growing number of stores in New York, San Francisco, Chicago, and Washington D.C. The apparel rental service has also been expanding outside of its original category, adding home goods and kids apparel to its portfolio. Earlier this month, the company announced it would be renting out athletic apparel and ski attire from brands like Lululemon and Aztech Mountain.
When any company experiences rapid growth like Rent the Runway has, issues are bound to happen. In September, the company briefly stopped taking new customers due to a supply chain issue causing systemwide slowdowns. Customers complained about canceled and delayed orders, but by October, the company seemed to be back on track. Sullivan said, “If we are going to have problems, I want them to be growth-driven problems...It’s a privilege as a company we play this role in our customers’ lives.” .
With sustainability and affordable value at the forefront of consumers’ minds, disruptor brands like Rent the Runway, thredUP, and StitchFix have challenged traditional retailers, forcing some players to shift their focus. More consumers are opting for rental or resale options instead of restocking their closets with items they won’t wear often. Urban Outfitters, Express, and Gap’s Banana Republic are just a few of the brands that have since launched their own rental platforms.
Rent the Runway hit a $1 billion dollar valuation earlier this year and was also named number five on CNBC’s Disruptor 50 list for 2019.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Friday, December 6th, I'm Vincent Phamvan.
Glossier has formed a partnership with Nordstrom. Seven of the department store’s locations will feature Glossier You, a fragrance by Glossier, in dedicated pop-up sections through February 16th.
First, here are some retail headlines.
Record Number of Shoppers Between Thanksgiving and Cyber Monday
According to a report from the National Retail Federation, a record 189.6 million U.S. shoppers went to stores and retail websites from Thanksgiving through Cyber Monday, up 14 percent from last year. Around 124 million shoppers went to stores and around 142 million shopped online, while 75 million did both. Black Friday was the busiest day for stores, followed by Small Business Saturday, and for the first time, Black Friday beat Cyber Monday as the busiest day for digital with 93 million shoppers compared to 83 million shoppers for Cyber Monday.
Lululemon Could Reach Nike-like Profits
According to analysts with Cowen & Co, Lululemon could be on track to reach Nike-like profits. In a report, the analysts see a path for the athleisure brand to reach a $40 billion dollar market cap, generate $1 billion dollars in cash flow a year, and reach a return on investment rate of 44 percent. The analysts cited, “consistent innovation, luxury-like brand positioning, and community-based model,” as Lululemon’s growth factors. They also pointed to potential growth in menswear and international sales, as well as targets for $4.3 billion dollars in women’s apparel that would put the brand in line with powerhouse retailers like Nike and Adidas current global women’s apparel businesses.
J. Crew to Spin Off Madewell
J. Crew announced that it had reached an agreement to spin off its Madewell denim brand and take it public in the first quarter of next year. The announcement came as the retailer reported a 1 percent revenue rise to $625 million dollars in the third quarter, with J. Crew sales falling 4 percent and Madewell sales rising 13 percent to $151 million dollars according to a company press release. Executives said digital sales drove more than half of those sales. Executives from the company said that the company and its lenders have agreed to terms that were also approved by a special committee, paving the way for the creation of two separately managed companies that will have “sustainable capital structures.”
Glossier Partners With Nordstrom For New Pop-Ups
Glossier is embracing wholesale through a new partnership with Nordstrom. The makeup unicorn will be featured in seven Nordstrom stores, including the recently opened New York City flagship and stores in Seattle and Chicago. Each location will include a temporary space dedicated to the Glossier You fragrance and is designed to give the full Glossier experience with pink decor and sales associates in matching jumpsuits.
Glossier is the latest in a growing trend of direct-to-consumer companies partnering with large retailers. Target now carries Harry’s grooming products, Nordstrom also features digital brands from Reformation, to Everlane, to Away. Glossier resisted the trend until recently, with founder Emily Weiss saying she didn’t want to give up control over how her products were sold. The brand has instead expanded through two stores in New York and Los Angeles, a series of global pop-ups, and through digital channels.
The decision to partner with Nordstrom came down to the category. Weiss told Business of Fashion that Glossier You is, “one of the most generationally defining, important fragrances,” but convincing consumers required branching out. Weiss noted in a statement that fragrances are difficult to sell online.
The Glossier pop-ups will be open through February 16th and the fragrance is the only Glossier product that will be sold at the Nordstrom locations.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Thursday, December 5th, I'm Vincent Phamvan.
As online shopping grows, many retailers are revamping their staffing to better keep up in a fiercely competitive retail landscape.
First, here are some retail headlines.
Paid Social Ads Account for 45% of Online Budget on Cyber Weekend
For Cyber Weekend, retailers put 45 percent of their online media budgets into paid social ads, helping to generate 33 percent of total revenue during the weekend. Last year, both of those metrics were less than 15 percent according to digital ad agency, PMG. On Thanksgiving Day, social channels boosted their share of conversions to 30 percent this year from 16 percent in 2018. Black Friday broke records for retailers as revenue, return on investment, click-through rates, cost per thousand, and cost per click metrics surpassed forecasts. PMG’s research reveals just how significant social commerce has become for retailers as they aim to reach mobile shoppers during the holiday season.
ThirdLove Tests Personalization
Popular disruptor lingerie brand, ThirdLove, knew personalization was critical to improving the customer experience. Using the personalization engine, Dynamic Yield, which was acquired by McDonalds this year, ThirdLove was able to show different homepage experiences to consumers and test new messaging and strategies. The company has since run 50 tests and improved critical metrics like conversions, average revenue per user, and click-through rate. Their director of product growth said, “It takes a lot to get someone to make a purchase when they’ve only seen an ad on Facebook...You have to be intentional to overcome those barriers.” The company saw a 23 percent increase in average revenue per user, a 3 percent uplift in conversions, and a 6 percent increase in click-through rate. ThirdLove says they have plans to come up with more nuanced ways of testing site personalization.
Pop-ups Becoming Key Strategy for Digitally Native Brands
Pop-ups are rapidly becoming a key strategy for many digitally native brands, with analysts saying pop-ups are becoming an increasingly important part of the $3.8 trillion dollar U.S. retail market. Online brands are able to utilize the data they get from their customers to focus their efforts on getting strong sales. The plunge into data-driven pop-ups comes as both digitally native brands and pop-ups are seeing strong growth and many established retailers are struggling with declining sales and higher operating costs. Unlike traditional retail stores, pop-ups don’t have to worry about appealing to a wide audience. The shops can be built to appeal to a narrow audience for a short window of time, and along the way introduce more customers to the brand and gather more information about their likes and dislikes. According to chief industry analyst at NPD Group, Marshal Cohen, pop-up shops are a force to be reckoned with because they allow brands to experiment with concepts quickly and build closer connections to their customers with personalized service.
Retailers Revamp Staffing As Consumers Shift To Online Shopping
Early data shows that online shopping will account for a larger percentage of total holiday sales compared to previous years. Foot traffic to U.S. stores fell about 6 percent on Black Friday as more people ordered online or went to stores on Thanksgiving Day. Online sales reached $7.4 billion dollars on Black Friday, up from $6.2 billion dollars last year, according to Adobe Analytics. E-Commerce is expected to account for about $170 billion of the roughly $730 billion in total holiday spending this year according to the National Retail Federation.
Some chains, including Target, Walmart, and Best Buy have posted strong sales in recent years by adapting to the consumer shift to online shopping. They use their stores to handle deliveries or convince shoppers to pick up orders rather than waiting for an Amazon package. Target says it now sources 80 percent of its online orders from stores, not warehouses.
Retailers are rethinking their staffing to keep up with new competitive challenges, as well as attract workers and control payroll costs. Under a new staffing system at Target, more workers are responsible for the full chain of tasks needed to keep their department well-stocked and shoppers happy. Target also added technology on hand-help devices to guide workers through the store more efficiently to gather or send out online orders. Target has also promised to raise its minimum wage to $15 dollars by next year.
Walmart also uses stores to fulfill its online grocery orders and is increasingly relying on stores for other types of e-commerce orders, although most are shipping from warehouses.
A Target executive said, “I think the biggest change is the introduction of online and digital retail into stores.”
Closing
Find out how Simplr can cut your customer service response time through cutting-edge technology and on-demand talent at simplr.ai. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
With your Retail E-Commerce Briefing for today, Wednesday, December 4th, I'm Vincent Phamvan.
Introduction
Beauty advent calendars haven’t always been in demand, but as they’ve evolved, beauty brands and retailers are now capitalizing on high consumer interest to drum up new customers for the holidays.
First, here are some retail headlines.
Lord & Taylor Opens Small-Format Store in NYC
At the beginning of the year, Lord & Taylor closed its massive New York store after more than 100 years in business. Now, the department store will end 2019 by opening a new small-format store in Manhattan this holiday season. The new shop will be just 2,400 square feet, much smaller and tightly curated than its flagship on Fifth Avenue. The small-format store will open for two weeks in mid-December in New York’s SoHo district. This will give Le Tote, the company’s new owner, a chance to re-connect with shoppers in the midst of the busy holiday shopping season.
Best Buy Looking to Continue to Scale Fulfillment Options
Best Buy launched order pickup services in 175 CVS and UPS stores in New York this quarter. According to the company’s CEO, Corie Barry, they are “focused on expanding both our fulfillment options and in-home resources.” Roughly 99 percent of Best Buy customers live in an area where next-day delivery is available, up from 80 percent last quarter. For customers who choose to buy online and pick-up in-store, 80 percent of orders are ready in under 30 minutes. The company is looking to scale the program nationally after the holidays.
Cyber Monday Once Again Big Day For Amazon
For Amazon, Cyber Monday was yet again, “the single biggest shopping day in the company’s history, based on the number of items ordered worldwide.” The e-commerce giant also said that its Marketplace sellers sold more items during Cyber Monday than any other 24-hour period in the company’s history. The company noted customers bought a record number of Amazon devices globally over the holiday weekend. The announcement came shortly after Adobe reported Cyber Monday sales hit a record of $9.4 billion dollars in retail this year.
Growing Beauty Advent Calendar Craze Boosts Brand Awareness and Customer Acquisition
Advent calendars are a holiday staple for many households, traditionally filled with chocolates behind 24 small doors. But what about beauty advent calendars? They aren’t a new phenomenon, with some being introduced by companies as early as 2013, but they’ve evolved significantly. They’ve become more sophisticated and elaborate, including higher-value items, and often coming with a premium price tag.
Now in its sixth year, Liberty’s beauty advent calendar priced at $277 dollars remains the retailer’s fastest-selling product in its 147-year history. After trialing an advent calendar that sold out within seven minutes, fragrance brand Jo Loves doubled down for 2019 with a Christmas tree calendar that contained exclusive products and brand favorites for $390 dollars. The day that Jo Loves calendar went on sale marked the brand’s biggest e-commerce sales moment to date, bringing in record traffic levels.
The beauty advent calendar can be used as a discovery tool for new customers. For a multi-brand retailer like Liberty, the beauty advent calendar offers customers a chance to try new products they wouldn’t have considered before. With a curated mix of popular brands and newer or lesser-known products, Liberty is able to entice customers while also promoting awareness of alternative offerings in the store.
It’s also a great way to bring in new customers. For Jo Loves, about 50 percent of calendars were sold to new customers. For Liberty, 56 percent of sales this year also came from new customers. Jo Loves general manager said, “It really gives people who don’t necessarily know the brand the opportunity to try lots of different things within the range.” While currently a UK-centric trend, awareness is starting to grow largely thanks to social media. Nordstrom and Bloomingdales are now selling beauty calendars and Target is offering a $10 dollar bath bomb calendar.
Closing
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Thanks for listening to this latest episode of the Retail E-Commerce Briefing. We'll see you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
With your Retail E-Commerce Briefing for today, Tuesday, December 3rd, I'm Vincent Phamvan.
Introduction
Though some doubted these two retailers would survive in the age of Amazon a few years ago, they headed into Black Friday Weekend as two standouts in retail.
First, here are some retail headlines.
Peloton Stock Up 21% Since IPO
Peloton faired well this Black Friday. The company gained almost 10 percent, hitting a record of $35 dollars a share after KeyBlanc said the fitness company saw strong traffic on Black Friday. The startup’s initial public offering fell flat two months ago, but the stock is now up about 21 percent from its IPO price of $29 dollars.
Consumers Did More Mobile Shopping Than Ever on Black Friday
According to Salesforce, consumers did more mobile shopping this Black Friday than ever before. With social media shopping capabilities and retail apps, digital sales grew 17 percent to $4.1 billion this year. Mobile orders increased 35 percent on Black Friday this year, with 65 percent of all e-commerce flowing through a mobile device. Adobe Analytics called Black Friday quote “the biggest day ever for mobile” end quote, tracking almost $3 billion in sales from smartphones alone.
Cyber Monday Shoppers to Spend Record $9.4 Billion
Cyber Monday shoppers are on track to spend a record $9.4 billion dollars this year. Consumers had already dropped $473 million early this morning, on track for an almost 19 percent increase over last year. According to Adobe, big e-commerce players like Amazon will benefit the most from the surge in sales. Black Friday also hit a record $7.4 billion in U.S. online sales, the second-biggest U.S. online sales day ever, behind 2018 Cyber Monday’s $7.9 billion.
Two Retailers Standout in Age of Amazon
In the age of Amazon, many thought retailers like Best Buy and Target would wither away. Instead, they’ve proved critics wrong and became two standouts in retail as they headed into Black Friday weekend. Both companies set themselves apart from competitors and emphasized their stores as the center of their strategies. According to an analyst from R5 Capital who has followed the companies closely, “People thought Best Buy was going to die...With Target, there were so many doubters about if it would survive in the Amazon world. People thought it would wither away.”
Target’s shares, which have nearly doubled in price in the past year, hit an all-time high last week after the retailer reported impressive sales and profits this past quarter. Best Buy has reported strong sales for the past two years and continues to grow as the only remaining player left in consumer electronics. In the past few years, both companies have spruced up their stores, overhauled supply chains, upgraded their websites, and implemented fast shipping. They’ve also leaned into what sets them apart from their competitors. For Best Buy, offering expert advice, and for Target, its affordable clothing, home goods, and private-label brands.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Friday, November 29th, I'm Vincent Phamvan.
REI is choosing to Opt Outside on one of the biggest shopping days of the year. Instead of taking part in the shopping craze, the retailer has shut its doors and is encouraging employees and customers to get outside.
First, here are some retail headlines.
Dunkin' and Homesick Candles Partner Up On Limited Edition Candles
Dunkin’ has partnered with Homesick Candles to make three limited-edition candles for the holidays: Old-Fashioned Donuts, Original Blend Coffee, and Peppermint Mocha Coffee. Dunkin’s director of strategic partnerships said that candles make sense for the brand because people can bring the smell of doughnuts home with them. Homesick and Dunkin’ started working together in early 2019 with the expectation of releasing candles during the holiday season. Homesick isn’t a stranger to collaborating with companies. Earlier this year, the candle company partnered with Tinder to create a Single Not Sorry candle.
Piterest Debuts “Pintrest Shop”
Pinterest is debuting Pinterest Shop. The online marketplace showcases a number of smaller merchants who sell products on the platform. The rollout of the new feature is timed before Small Business Saturday, an annual occasion encouraging consumers to support small and local businesses during the holidays. Each merchant’s pin board has around 20 products that shoppers can click to reach its checkout page. According to a statement, Pinterest plans to update the Pinterest Shop account with even more products from small businesses.
Allbirds Co-Founder Calls Out Amazon
Allbirds co-founder, Joey Zwillinger, called out Amazon for copying a pair of their popular environmentally-friendly sneakers. Zwillinger wrote, “We are flattered at the similarities that your private label shoe shares with ours, but hoped the commonalities would include these environmentally-friendly materials as well.” Allbirds is the latest brand to take a shot at Amazon, with Williams-Sonoma suing the retail giant last year over a strikingly similar chair to one its West Elm brand sells. Nike also recently stopped selling on the marketplace to have a more direct relationship with its customers.
REI Opts Out Of Black Friday To Go Outside
Black Friday is one of the biggest shopping days of the year. One retailer though is opting out of the shopping craze today. For the fifth year, REI is shutting its doors on Black Friday. Instead, the retailer is encouraging more people to go outside. As part of its Opt Outside initiative, REI won’t also won’t process online payments, but will pay its 13,000 employees. This year, the company is taking its Opt Outside initiative to a new level.
REI is asking its employees and 18 million members to “opt to act” and join a nationwide clean-up effort. Locations of environmental clean-ups are listed on the company’s website. CEO, Eric Artz said, “We’re still going to go outside and play – but this time we’re bringing our work gloves. And we’re inviting you to join us...It’s time to fight for life outdoors – and life on this planet.”
REI started its opt outside initiative in 2015 and has been working toward zero-waste operations and challenging the industry to eliminate unnecessary packaging. Artz said this is a first step for the company. They will also be launching 52 weeks of climate action to invite customers to take small steps each of us can make to be more environmentally-conscious.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Wednesday, November 27th, I'm Vincent Phamvan.
Walmart-owned Jet is ending its fresh-food delivery in New York City. The news is another sign that the site is scaling back.
First, here are some retail headlines.
Instagram Reveals Curated Collection of Products
Instagram revealed a curated collection of products just in time for the holidays. The collection’s products are inspired by the year’s biggest style trends. Users can buy the products without leaving the app using the Checkout on Instagram feature, which launched on beta in March and has since expanded, or they can save products to a personal shopping collection. The move comes as social commerce continues to grow. According to eMarketer, 34 percent of adults surveyed said they bought something through social media, up from 29 percent last year. Another 27 percent said they were interested in shopping on social media.
93% of Consumers Plan to Use In-Store Pick-Up
According to a survey from CommerceHub, 93% of consumers will look to pick up their purchases in stores this holiday season. When asked why they had chosen buy online, pick up in-store services, 49% said they could get their item quicker than having it shipped, 44% said it was less expensive because of shipping costs, and 5% were concerned about package theft. Shipping experiences have become increasingly important in the age of Amazon. Both small and large retailers will benefit from providing convenient shipping options to their customers.
165 Million Expected to Shop Thanksgiving Through Cyber Monday
An estimated 165 million people are expected to shop between Thanksgiving Day and Cyber Monday, according to the National Retail Federation. Shoppers between the ages of 18 to 24 are the most likely to shop during Thanksgiving weekend. The NRF estimates the holiday season will generate over $730 billion, with predictions that online sales between Thanksgiving and Cyber Monday will account for 20 percent of that revenue.
Walmart’s Jet To Cut Fresh-Food Delivery In New York City
Walmart’s Jet is ending its fresh-food delivery in New York City. The retailer will close a warehouse in the Bronx used to prepare orders and will cut between 200 to 300 jobs. Jet will continue to sell dry groceries like cereal and will inform customers of the news Friday and fulfill any existing orders already placed. The news is another sign that the site is scaling back.
Since its launch last year, Jet’s fresh-food service has struggled. The company has resorted to raising prices to offset the costs of fulfilling orders in the nation’s biggest city. Key executives have left, and in recent months fresh-food items like avocados and strawberries have been out of stock.
In an emailed statement, Walmart said, “We learned a lot by testing Jet fresh grocery delivery in New York City. We’ll continue to test bold concepts that can offer convenience to customers.” With Walmart projected to lose $1 billion within its e-commerce division, cutting Jet’s fresh-food delivery is one of the company’s latest moves in a strategy shift. Walmart also sold recently acquired digitally-native brand ModCloth and is building out its own brands instead of acquiring more.
Closing
Find out how Simplr can cut your customer service response time through cutting-edge technology and on-demand talent at simplr.ai. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Tuesday, November 26th, I'm Vincent Phamvan.
LVMH is acquiring iconic jeweler, Tiffany & Co. The $16 billion dollar deal is expected to close in 2020.
First, here are some retail headlines.
Uber Again Loses License in London
For the second time in less than three years, Uber has lost its license in London. According to Bloomberg, the transport regulator said the company failed to address safety concerns which has now put one of Uber’s biggest markets outside of the U.S. at risk. The Uber app has a vulnerability that allowed thousands of unauthorized users to pose as drivers by uploading their photos to licensed accounts, per a statement from Transport for London. Uber has 21 days to appeal and can continue operating while the court considers the decision.
eBay Selling StubHub
In a press release, eBay announced they would be selling StubHub for $4 billion dollars in cash. The deal is expected to close by the end of the first quarter in 2020. In a statement, the company’s interim CEO said, “We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders.”
Big Retailers Taking Hard Stand on Tariffs
Big retailers like Bed, Bath, and Beyond, Target, and TJX brands are taking a hard stance on tariff price increases. The retailers have reportedly refused to accept tariff-related price increases from their brand suppliers. The stance forces the tariff cost down to smaller businesses who may not be able to afford it, with some businesses saying they will likely have to close within a year or so. While small retailers have managed to stay afloat, it remains to be seen how long that will continue as tariffs continue to mount.
LVMH Acquires Iconic Tiffany & Co for $16 Billion
Tiffany & Co will be acquired by LVMH for over $16 billion dollars according to a press release. The deal is expected to close in 2020. LVMH made an unsolicited bid for Tiffany’s last month for over $14 billion dollars, but after Tiffany said the offer undervalued the company, LVMH came back with an offer at $135 dollars per share in cash.
The acquisition holds promise for both companies. For LVMH, acquiring Tiffany & Co will strengthen its position in the luxury jewelry market and increase its presence in the United States, according to the companies’ press release. On a conference call, LVMH executives said the acquisition was a “game-changer” for the company’s jewelry and watch division.
For Tiffany, it will provide more resources and support to the jeweler’s “key strategic priorities to drive sustainable long-term growth.” The iconic jewelry company has continued to struggle despite making sales gains and polishing its brand with store and design upgrades. Thanks to recent initiatives like providing transparency around the source of Tiffany diamonds, younger consumers are returning to the brand for engagement rings and other occasions.
Being acquired by LVMH should let Tiffany & Co focus on repositioning the business for improved sales and margins for the long-term. LVMH executives expressed their confidence in Tiffany’s approach and trajectory on a call, saying they will support the jeweler’s existing strategy.
Closing
Want to stand out? Simplr can help deliver wow moments for your customers through unparalleled customer service support. Visit simplr.ai to learn more. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Monday, November 25th, I'm Vincent Phamvan.
Amazon has banned giving away free products in exchange for reviews, but because of Amazon’s size, algorithm, and unreliable enforcement of its rules, many sellers still get away with it.
First, here are some retail headlines.
GOAT Partners with Brooklyn Nets
The Brooklyn Nets and wholesale sneaker and luxury app, GOAT, have partnered for the season. GOAT will have a branded arena entryway at Barclays Center for players’ arrivals. The Nets and GOAT will also create pre-game content that highlights the app’s gear worn by the Nets and visiting players. The partnership is a result of the NBA loosening restrictions on marketing entryways, permitting licensing deals like the one between the Nets and GOAT. In a statement, the Chief Brand Officer of the GOAT group said, “GOAT is a community of individuals aspiring to be the greatest. The Nets organization and individual players embody this, making the partnership a natural fit for our brands.”
PayPal Acquires Honey
PayPal announced it has acquired discount shopping platform, Honey. The Honey platform helps people find coupons online and discounts while online shopping. According to the company, the service has about 17 million monthly users. In a statement, PayPal said they plan to embed Honey into its apps such as Venmo, which has more than 275 million users. The $4 billion dollar acquisition is another sign that PayPal plans to expand its e-commerce services. The deal is expected to close in the first quarter of 2020.
Nordstrom's Q3 Earnings Rise
Third-quarter results for many department stores have shown weak performance, but Nordstrom’s latest results show they may be keeping typical department store struggles at bay. Third-quarter net earnings rose to $126 million dollars from $67 million dollars a year ago. According to the company, digital sales rose 7 percent and represented 34 percent of the business. Though net sales fell 2 percent in the third quarter, Nordstrom’s strategy to control inventory and implement fewer markdowns has given it an above-average performance among department store peers.
Fake Reviews Go Largely Unchecked By Amazon
Amazon has been plagued by fake reviews, and one woman found a way to turn it into a side business. The woman, who didn’t want her identity disclosed, has spent over $15,000 dollars on Amazon this year on a variety of products. Though most of the products are cheaply made or a knockoff, she’s given each item a 5-star review. The companies then reimburse her for the products she purchased and reviewed.
Good reviews and a high-search ranking are critical to being successful on Amazon Marketplace. But, genuine customers who give good reviews can be hard to come by, so some sellers have resorted to cheating the system: sellers bribe customers into giving good reviews. Amazon has banned giving away free products in exchange for reviews, but because of Amazon’s size, algorithm, and unreliable enforcement of its rules, many sellers get away with it.
When Amazon was asked about how it polices inauthentic reviews, they gave a statement that said the site had prevented over 13 million attempts to post fake reviews and took action against more than 5 million sellers’ accounts. But consultants who work with Amazon’s third-party sellers say that they can continue to exploit blind spots in the system and with little to no consequence.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. See you tomorrow.
On this episode Vincent speaks with Michelle Lam, Co-Founder and CEO of True & Co. They discuss the beginnings of True & Co., the current trends in Intimate Apparel, and what plans True & Co. have for 2020.
True & Co - https://trueandco.com/
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Friday, November 22nd, I'm Vincent Phamvan.
Apple Music is expanding into music for business. The number two music subscription service has been quietly piloting a version of the streaming platform for use in business.
First, here are some retail headlines.
Airbnb Signs Olympic Sponsorship Deal
Airbnb has signed a $500 million dollar deal to sponsor the Olympic Games through 2028. The company announced the sponsorship deal on Monday, joining an elite list including Coca-Cola, Alibaba, and Toyota as part of the worldwide sponsorship program. The deal covers the next five Olympics starting with next year’s in Tokyo, and including the next winter and summer games in Beijing, Paris, Milan, and Los Angeles. The five cities are among Airbnb’s biggest markets. It’s the first time Airbnb has signed a large sponsorship deal.
Target Posts Strong Q3 Sales
Target posted another strong quarter in sales, continuing to draw in more shoppers through stores and online. Sales in stores rose 4.5 percent in the third quarter. E-commerce sales rose 31 percent in that same period, with most of that growth stemming from same-day delivery or pickup, the company said. The company’s third-quarter results were better than Wall Street’s forecasts and the chain raised its profit forecast for the fiscal year.
Amazon Makes Music Streaming Service Free
Amazon has made its music streaming service free. The company previously only offered free, ad-supported streaming to customers who owned an Amazon Echo device. The move doesn’t threaten more established subscription services like Spotify or Apple Music. The platform isn’t nearly as advanced and has a much smaller catalog. The true motive seems to be aimed at drawing more customers to Amazon Prime by upselling through the streaming service. Prime subscriptions are where Amazon’s profits lie.
Apple Expands Into The Commercial Music Business
In other music streaming news, Apple Music is expanding into music for business. The number two music subscription service has been quietly piloting a version of Apple Music for use in business, including Levi Strauss & Co and Harrods stores. Apple partnered with PlayNetwork, which specializes in music for commercial use. PlayNetwork handles music licensing and operates the service, Apple Music for Business.
Harrods recently started using Apple Music for Business in its London store. The department store has drawn on Apple Music playlists to create its own custom Harrods Playlist. The department store’s director of partnerships said, “We were captivated by their proposition that we could have our brand reflected in our own curated playlist.”
So far Apple Music for Business has focused on retail chains with 100 stores of more but plans to expand into small and midsize businesses.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. Tune in tomorrow for our interview with Michelle Lam, co-founder and CEO of True&Co. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Thursday, November 21st, I'm Vincent Phamvan.
Brick-and-mortar retail has taken a hit as consumers turn more toward online experiences. But one iconic landmark has weathered the struggles better than most.
First, here are some retail headlines.
Warby Parker Launches Contact Lens Line
Warby Parker has launched its own line of contact lenses. With Scout by Warby Parker, customers can purchase a three-month supply of lenses for $110 dollars. The launch of Scout is the direct-to-consumer company’s first venture into contact lenses. According to the company, 40 percent of its customers wear contacts on a regular basis in addition to their glasses, so the move into the $5 million dollar U.S. contact lens market is a natural step for the direct-to-consumer company. In a statement, the company’s co-founder and co-CEO said, “We’re really excited to be a one-stop-shop.”
TJX Q3 Sales Top $10 Billion
TJX, whose banner brands include T.J. Maxx and Marshalls, reported that third-quarter net sales rose 6 percent to over $10 billion dollars. Discount retailers, T.J. Maxx and Marshalls together saw net sales rise to $6.4 billion dollars. The growth indicates how off-price retailers could be benefitting from uncertainty in both the economic and retail spaces. With more department stores facing struggles, companies like T.J. Maxx and Marshalls have access to more high-quality products. The threat of tariffs has also contributed to their success, as more consumers search for better deals. The trend could set the companies up for a successful holiday season.
Marie Kondo Adds E-Commerce Shop
Marie Kondo, the driving force behind the tidying up phenomenon that swept the nation, has added an e-commerce shop to her site. The shop currently has 125 home and self-care products that “spark joy” for her. According to Marie Kondo, each potential product was run through a joy check, her famed method to decluttering. The shop was sourced globally, but about half of the products come from Ms. Kondo’s native Japan.
Times Square Feels Struggle Of Traditional Retailers
Brick-and-mortar retail has taken a hit as consumer preferences shift. But one iconic landmark has weathered the struggles better than most. Times Square attracts hundreds of thousands of tourists and boasts famous stores and attractions like the Madame Tussauds wax museum and wall of candy at the M&M’s World store. With so much foot traffic, Times Square has been prime real-estate for businesses wanting to drive sales.
While Times Square’s iconic presence shields it from the brunt of the brick-and-mortar retail storm, it’s still feeling some of the effects. Its availability rate, which reflects vacant or soon-to-be-vacant spaces, rose almost 9 percent in the third quarter from the previous year. The NFL Experience, a collaboration between Cirque du Soleil and the NFL, closed in 2018 not long after opening. The bankruptcy of Forever 21 also forced a rent cut for the company’s Times Square store. Asking rents have also decreased in Times Square, standing at $1,800 dollars a square foot: a 24 percent decrease from the same quarter five years ago.
While the struggle of traditional retail stores can be felt at Times Square, tenants are still signing leases for as long as 15 years. The square’s tourist draw still makes it an attractive location for restaurants and retailers alike. An executive managing director at Cushman said, “Even with the last three years of a challenging retail market in terms of pricing, many are paying as much or more as they were.”
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Wednesday, November 20th, I'm Vincent Phamvan.
Nordstrom and Rent the Runway are expanding their partnership, bring more drop-off boxes to Nordstrom locations along with offering enhanced services to Rent the Runway members.
First, here are some retail headlines.
Amazon Now Number One U.S. Brand
In a report, Amazon passed Apple and Google as the number one U.S. brand. The company’s worth rose 20 percent from last year to $334.6 billion dollars, the most of any in the history of the annual Brand Z top 100 brands in the country from Kantar consulting group. Apple came in second, worth $303.4 billion dollars and Google came in at third with $303.2 billion dollars.
Patagonia Opens First Physical Store
Patagonia has opened its first-ever physical store for its resale business, Worn Wear. The store is a pop-up in Boulder, Colorado, that will be open until February of 2020 according to a press release. The move comes as the resale business continues to grow, indicating the retailer is doubling down on its own used gear efforts. The new pop-up will feature Worn Wear products, as well as its ReCrafted Collection, which sells clothes made from apparel that was beyond repair. In addition to selling used gear, the location will host repair and upcycling workshops.
Coty Aquires Majority Stake in Kylie Cosmetics/Kylie Skin
According to a press release, Coty acquired a majority stake of Kylie Jenner’s beauty business on Monday for $600 million dollars. The acquisition includes Kylie Cosmetics and Kylie Skin. The deal is expected to close in the third quarter of 2020, and the Jenner brands will continue to be sold through beauty retailers as well as owned digital channels.
Nordstrom and Rent the Runway Expand Their Partnership
Nordstrom and Rent the Runway are expanding their partnership, with the apparel rental service bringing its drop-off boxes to 24 more Nordstrom locations nationwide. Five Nordstrom locations currently offer the Rent the Runway return service, according to a press release from the companies. Nordstrom is also becoming a rent the Runway Platform partner, which the companies said, “entails contributing inventory to the Rent the Runway ecosystem to extend the lifecycle of Nordstrom products,”. They’re also exploring the development of other exclusive products that could be bought or rented.
The expanded partnership comes at a time when e-commerce is seeing more growth than the wider retail industry. Brick-and-mortar and online retailer partnerships have become a strategy several companies have embraced as the retail landscape continues to shift. Kohls began accepting Amazon returns and Target started selling Casper mattresses. ThredUp also formed partnerships with JCPenny and Macy’s to sell a selection of their consignment clothes in several of their department store locations. Rent the Runway isn’t a stranger to partnering with a brick-and-mortar retailer, installing its drop boxes at 15 WeWork locations along with hosting several pop-ups at the company’s locations.
For Nordstrom and Rent the Runway, it’s hard to imagine a better match for a partnership. Both companies emphasize their upscale apparel and customer service. Nordstrom locations will have trained stylists available to work with Rent the Runway members and place a renewed emphasis on high-touch services like tailoring, styling, and gift wrapping.
Closing
Find out how Simplr can cut your customer service response time through cutting-edge technology and on-demand talent at simplr.ai. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Tuesday, November 19th, I'm Vincent Phamvan.
Making big online purchases has become normalized for millennials. Now, engagement ring and wedding band companies are driving the trend in the wedding industry.
First, here are some retail headlines.
50% of Americans Willing to Gift Used Apparel
According to a survey from Accenture, almost 50 percent of Americans said they would gift used apparel this year. More said they would be ok with receiving used apparel as presents themselves. With the secondhand market expected to hit $51 billion by 2023, reused gifts could continue to grow in popularity. The new trend is being driven by younger consumers, with 80 percent of Gen Z shoppers saying they plan to give thrifted gifts, according to a survey from ThredUp.
TikTok Rolls Out New Features
TikTok rolled out two new features, marking the beginning of the platform expanding into social commerce. The video app said it has started to allow some users to add links to e-commerce sites to their profile biography as well as let creators the ability to easily send viewers to websites. The company said the new features were a part of its normal experimentation to improve the app for users. Though, this new experiment could change how much value influencers see on the platform. If TikTok retains these features, it could disrupt the social commerce space.
Walmart U.S. Sales Up
Walmart reported an increase in U.S. sales of 3.2 percent to $83.2 billion dollars. The retail giant’s third-quarter revenue rose 2.5 percent year over year to $128 billion dollars. The company’s largest growth was in e-commerce sales. In a statement, Walmart’s CEO said, “We're committed to progress and building a larger, healthier eCommerce business.”
Millennials Are Taking Their Big Purchases Online
Making big online purchases has become more normalized as digitally-native direct-to-consumer brands grow more commonplace. While consumers would traditionally head to stores to purchase something like a mattress, they’re now making those same purchases online. The wedding industry, expected to generate $76 billion dollars in revenue this year alone, is also seeing a consumer shift to exclusively online experiences. The founder of Four Mine, a direct-to-consumer engagement ring company, found that 90 percent of millennials were researching their ring online but only 10 percent of purchases were actually done online.
Companies like Four Mine, Brilliant Earth, James Allen, and Manly Bands are bridging that gap. Founders of DTC engagement and wedding ring brands believe that millennials would rather research and buy their rings at home without the pressure from pushy jewelry store reps. The founders also say that the wave of direct-to-consumer mattress brands helped pave the way for millennials to make more big purchases online. According to a strategy director at YARD NYC, “Millennials are looking for brands that fit into and understand their lifestyles — and many of the traditional players in the space had begun to feel stuffy — more like their parents’ brands than their brand…They want quality, but without the markup, and that’s what DTC can offer.”
Closing
Want to stand out? Simplr can help deliver wow moments for your customers through unparalleled customer service support. Visit simplr.ai to learn more. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Monday, November 18th, I'm Vincent Phamvan. After facing scrutiny over data privacy, Google is making changes to what advertisers can see. First, here are some retail headlines.
Wayfair Launches Updated Mobile App with AR
Wayfair announced the launch of its updated mobile app featuring an augmented reality tool. According to the company’s press release, the feature is designed to help customers visualize how furniture will fit in their spaces. On the updated Wayfair app, users can now virtually place furniture in their rooms, visually search for and buy items they see and create three-dimensional rooms to see layouts from different angles. In the press release, Wayfair said the new features were added as it redesigned the entire Wayfair app to create a more user-friendly experience for customers. The updates may be beneficial to the company as more than half of its customers place orders using mobile devices.
Lululemon to Open Experiential Store at Mall of America
Lululemon is slated to open an experiential store at the Mall of America on November 20th. The format is modeled on the experiential concept the company opened in Chicago earlier this year. The new store is designed to offer customers an elevated retail experience. In addition to a broad assortment of men’s and women’s products, the store will feature an eatery serving healthy food and beverages. The location will also feature studio spaces where customers will be able to participate in yoga and other events.
DoorDash Raises Another $100 Million in Funding
According to Bloomberg, DoorDash has raised another $100 million dollars in funding. The new round of funding values the company at nearly $13 billion. The new financing includes investments from T. Rowe Price and is said to be an extension of the food delivery company’s most recent $600 million dollar funding round.
Google Restricts The User Information Advertisers Can Access
According to Google, the search giant will now stop telling advertisers what categories of websites users are visiting. The change is a result of European data protection authorities that have said Google’s real-time ad auctions violate European Union privacy laws. The changes will affect the process behind the electronic auction that happens when users load a website, determining what ads they’ll see. In that time, hundreds of potential bidders can find out information, including location, unique mobile device number, and even whether they’ve been reading about a certain subject. After the changes take effect in February, advertisers will still have access to data like locations and device numbers, but not the contextual data about the website on which the ad would appear.
In a statement, Google said the changes resulted from discussions with data protection authorities. It also comes at a time when the company is facing scrutiny as the largest global digital advertisement player. A spokeswoman from a U.K. data protection authority said, “Google’s announcement is an important statement of intent and we look forward to seeing what practical impact it will have on Google’s operating model and the industry more widely.”
Closing
Don’t forget, Simplr can help you scale up for the holidays with 24/7 customer service support. Learn more at simplr.ai. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Friday, November 15th, I'm Vincent Phamvan.
Nike is breaking up with Amazon. The company announced they were ending their pilot program that began in 2017 to focus on selling more directly to their customers.
First, here are some retail headlines.
Disney+ Hits 10 Million Sign-ups
Disney+ said it has hit 10 million sign-ups since launching in the U.S. and Canada on Tuesday despite thousands of glitches and complains on the first day. Although, reports of problems declined throughout the day as the company worked to resolve the issues. Disney attributed the issues to demand exceeding its expectations.
Adore Me Opens Sixth Store
Digitally-native lingerie startup, Adore Me, has opened its sixth store in Chattanooga, Tennessee. The 7,000 square foot store is Adore Me’s largest location to date. The new store is nearly double the size of the retailer’s other locations, enabling it to dedicate more room for the fit and consultation area. The fitting room area also includes a bar offering refreshments and snacks. The brand’s inclusive mission is an essential element in the space, which features mannequins of all sizes and colors. Adore Me is on a growing list of digitally-native disruptor brands that have expanded into brick-and-mortar locations. Brands like Burrow, Allbirds, and Casper have all invested in physical spaces as their companies have grown.
Google Expanding Local and Shopping Campaigns
Search giant, Google, is expanding its local and shopping campaigns for the holiday season. Saks Fifth Avenue and Sephora are among the retailers that have tested the capabilities. Local campaigns are designed to drive traffic to nearby locations while shopping campaigns have expanded buy online, pick up in-store capabilities for brick-and-mortar merchants. Saks this year is expanding its local campaigns to promote more store locations. The luxury retailer tested local campaigns for the holidays and saw a significant increase in store sales, along with an incremental offline return-on-ad-spend of 7 times. Sephora also saw a lift in store sales after testing the campaign.
Nike Will No Longer Sell Directly To Amazon
Nike will stop selling its merchandise directly to Amazon. The abrupt halt will end a pilot program that Nike and Amazon launched in 2017. At the time, Nike joined Amazon’s brand registry program in hopes the move would give them more control over Nike goods sold on the e-commerce site, more data on their customers, and added power to remove fake Nike listings. But Nike reportedly struggled to control the Amazon marketplace. Third-party sellers whose listings were removed would pop up again under a different name and official Nike products had fewer reviews and received worse positioning on the site.
For Nike, the split also comes amid a massive overhaul of its retail strategy. It also follows the hiring of former eBay executive, John Donahoe, as its next CEO. The move signaled the company is more focused on its e-commerce sales and selling more directly to consumers. A Nike spokesperson said, “As part of Nike’s focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail. We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally.”.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Thursday, November 14th, I'm Vincent Phamvan.
Is the VSCO girl trend powerful enough to reshape an industry? According to a new study, the beauty industry could be feeling the effects as teens turn away from heavy makeup and toward lighter, more socially-conscious alternatives.
First, here are some retail headlines.
U.S. Holiday Retail Sales May Top $1 Trillion
According to an eMarketer forecast, U.S. holiday retail sales will climb 3.8 percent to top $1 trillion dollars in sales this year: the first-ever trillion-dollar holiday season. Last year saw even less growth, at 2.4 percent. Cyber Monday is expected to be the biggest online shopping day in U.S. history, with a total that could approach or surpass $10 billion dollars. Brick-and-mortar remains dominant, representing over 80 percent of holiday sales. In-store sales will increase by 2 percent to $872 billion. E-commerce sales this holiday season will increase over $13 percent to $135 billion dollars.
Facebook Introduce Payment Service
Facebook is introducing a new payment service across its apps. The social media giant is rolling out Facebook Pay, which is designed to provide a secure and consistent payment experience across Facebook, Messenger, Instagram, and WhatsApp. Users can already make purchases, donations, and personal payments across the apps, but Facebook Pay is meant to streamline in-app purchases and enable unified, cross-app digital payments. The social media giant’s VP of marketplace and commerce said, “Facebook Pay is part of our ongoing work to make commerce more convenient, accessible and secure for people on our apps.”
Walmart/Apple Partner on Voice-activated Grocery Shopping
With the voice-activated shopping market expected to continue growing, Walmart is forming a partnership to make voice-activated grocery shopping easier than ever. The retail giant is partnering with Apple to make its voice order grocery shopping service available on Siri. Through a new Siri shortcut for online grocery, customers can ask the voice assistant to start adding items directly to their online Walmart grocery cart after they’ve paired their accounts. Walmart initially rolled out voice-enabled grocery shopping in a partnership with the Google Assistant device earlier this year. The retailer says it will continue to work with the best companies to make shopping even easier for its customers. Walmart’s expansion of voice-activated capabilities comes as its chief rival, Amazon, pushes further into both the grocery and voice technology spaces.
How VSCO Girls Are Reshaping The Beauty Industry
You’ve heard of them, seen them, and probably know one of them. The VSCO Girl, a term borrowed from California-based app Visual Supply Company, now represents a growing number of teens with disposable income. Their less is more aesthetic, love of Instagram-worthy packaging, and penchant for socially-conscious mid-market brands is reshaping the beauty industry.
Investment bank and securities firm, Piper Jaffray, released a semiannual teen survey this fall detailing just how influential the VSCO trend is. Cosmetic spending among teens saw a 21 percent decrease year over year. Plus, the firm downgraded Estee Lauder stock last week from overweight to neutral. Ulta Beauty also saw its stock fall 29 percent at the end of August following disappointing second quarter earnings, indicating a softening of makeup sales.
The VSCO girl is somewhat of a parallel to the Marie Kondo effect, as she’s traded in heavy makeup for Carmex lip balm, rosewater facial spray, and single-item, multi-use products from Glossier. A beauty consultant from Sephora said, “I think there is definitely more of a skincare trend going on...It's more of a focus on moisturizers and cleansers, and teens are moving more toward the cleaner ingredient brands.”
The report indicates that big brand names could have to shift strategies to reach the VSCO demographic as teens are looking to connect with brands on a more diverse, nuanced level.
Closing
Want to stand out? Simplr can help deliver wow moments for your customers through unparalleled customer service support. Visit simplr.ai to learn more. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Wednesday, November 13th, I'm Vincent Phamvan.
Disney Plus officially launched yesterday. While the new streaming service garnered excitement, the much-anticipated debut was marred by technical glitches.
First, here are some retail headlines.
Alibaba's Singles Day Breaks Record
Alibaba’s Singles Day generated a record $38.4 billion dollars in sales, a 26 percent jump from last year. More than 200,000 brands participated in the event, and a company statement noted that almost 300 of those brands earned more than $14 million dollars. Per the statement, Alibaba’s logistics network processed over 1 billion delivery orders, and 1 million new products were launched for the holiday. The company also said it had made $1 billion dollars in the first minute and eight seconds of its 2019 Singles Day.
Walgreens Boots Alliance Receives Buyout Offer
$70 billion dollar drugstore chain, Walgreens Boots Alliance, has received a buyout proposal from the private equity group, KKR. The deal would be the largest private equity transaction on record. The approach, just three years after KKR sold its remaining shares in Walgreens, was outlined in a document shared with the company’s board. A buyout by KKR could make sense for the drugstore chain. The private equity firm has done a deal with the top investor of Walgreens when it took UK-based drugstore chain, Alliance Boots, private in 2007 for $22 billion. However, those briefed on the discussions have cautioned that no final decision had been taken and that either side could walk away.
Juul Cutting 650 Jobs
Juul is cutting 650 jobs, or 16 percent, of its total workforce according to a company official. The Wall Street Journal reported later last month that the e-cigarette company planned to eliminate between 10 to 15 percent of its workforce by year’s end. Besides the job cuts, Juul plans to trim its company spending by $1 billion dollars, including significant cuts in marketing and government affairs, the Juul official said. The cuts come at a time when Juul is facing scrutiny as vaping-related illnesses are on the rise.
Disney+ Struggles With Outages On Launch Day As Demand Swamps Service
The much-anticipated Disney Plus launch was marred by technical glitches for some users yesterday, but the new streaming service still stirred excitement. Disney said the consumer demand for the service had exceeded its highest expectations. In a statement, a spokeswoman said, “While we are pleased by this incredible response, we are aware of the current user issues and are working to swiftly resolve them.” Many users yesterday reported issues that ranged from service not available to select shows being the wrong aspect ratio. The glitches ramped up from about one hundred outages reported to seven thousand within the span of an hour.
Disney isn’t the first company that’s been hit with technical streaming errors. In 2014, HBO’s streaming service crashed during a season premiere of Game of Thrones. Even Amazon and YouTube have experienced issues while broadcasting live sports online. Dan Rayburn, the principal analyst at Frost & Sullivan, said that streaming services often struggle when large amounts of people try to watch at the same time, saying, “It’s hard because of the complexity of the workflow and doing it at scale.”
Disney’s debut of Disney Plus puts it in a competitive streaming market with heavy-hitters like Netflix, Amazon, and Apple, and competitors like AT&T and Comcast are also diving in next year. But the company thinks it can seize the day with a product packed with the company’s best movies and TV shows, including Star Wars, Marvel, and Pixar movies. Chief executive officer, Bob Iger, said, “I feel great about what we’ve done...I love the app. It’s rich in content. It’s rich in brands. It’s rich in library.”.
Closing
Find out how Simplr can cut your customer service response time through cutting-edge technology and on-demand talent at simplr.ai. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Tuesday, November 12th, I'm Vincent Phamvan.
Instagram will begin testing hiding likes on the platform in the U.S. The platform says its the latest step to positively impact users well-being. But some have said the change could negatively impact influencer careers, who are a key component of Instagram’s success.
First, here are some retail headlines.
Adidas, Prada Partner on Sneakers
Adidas and Prada are partnering up to produce a limited-edition sneaker range. According to the retailers, this is the beginning of a long-term partnership. In a press release, Prada said, “The aim of this partnership is to investigate the realms of heritage, technology, and innovation - and to challenge conventional wisdom through unexpected strategies.” The collection launches next month with two styles of trainers.
Rebag Introduces New Resale Tool
Rebag, which lets customers sell used, high-end handbags, introduced a new “comprehensive luxury appraisal index” for resale. The new tool, called Clair, will reveal your desired bag’s current and projected resale value. Rebag’s success is an indicator of a shift in retail. The secondhand market is projected to grow to $51 billion by 2023, growing one and a half times larger than fast fashion over the next decade. Players like Rebag, The RealReal, Thredup, and even the Kardashians are vying for resale market share, but Rebag’s new tool could give it a competitive edge above other luxury resellers. The tech is both adapting to and enabling a change in consumer habits, providing customers with the market value of their goods, something that most current owners of luxury handbags had been missing.
Amazon Opening New Grocery Store
Amazon is opening a new grocery store in Los Angeles in 2020. It’s the first location of what is expected to be a chain of new grocery stores launched by Amazon. An Amazon spokesperson has confirmed the news. The announcement came after months of speculation that the retail giant was leasing dozens of properties in the Los Angeles area as part of its plan to build out its grocery chain. According to a spokesperson, the grocery store chain will be different from Amazon-owned Whole Foods and unlike Amazon Go stores, it will have a conventional checkout. Amazon has already begun hiring for the new grocery store, posting listings for a store leader, grocery associates, and a food service associate.
Instagram To Test Hiding Likes In The U.S.
Instagram said they will begin to test hiding like counts in the U.S. The social media platform’s CEO said the idea is to depressurize Instagram, make it less of a competition, and give people more space to focus on connecting. The intention is to reduce any social media-induced anxiety and social comparison. Instagram began testing this in April in Canada and expanded it to Ireland, Italy, Japan, Brazil, Australia, and New Zealand in July. Facebook started a similar experience in Australia in September.
The news has raised questions about whether the change will hurt influencers on the platform. Influencers are vital to Instagram’s success since they keep their fan bases coming back to the platform day after day. Instagram has to be mindful that it doesn’t significantly decrease creator or influencer engagement and business success. If Instagram finds the impact of the test to be too negative on influencers, it may not roll out the change. While Instagram’s CEO stated the company wasn’t afraid to hurt its bottom line, hurting the careers of influencers may not be an option unless the positive impacts on well-being are significant enough.
Closing
Don’t forget, Simplr can help you scale up for the holidays with 24/7 customer service support. Learn more at simplr.ai. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Monday, November 11th, I'm Vincent Phamvan.
Express just debuted direct-to-consumer brand, UpWest. The company’s new direct-to-consumer brand launch comes at a time when many online companies like Allbirds, Casper, and Glossier, have garnered success. First, here are some retail headlines.
Gap Inc. CEO Departing
Long-time Gap Inc. CEO and President, Art Peck, is departing the company. According to a company press release, Board Chairman, Robert Fisher, has taken the job of interim chief executive, effective immediately. Peck’s exit comes just months before Old Navy plans to spin-off from the parent company. Previously, Gap Inc. had said Peck would take the reigns of the new Gap Inc. entity, which includes Gap, Athleta, and other small brands.
Le Tote Complete Lord & Taylor Acquisition
Fashion rental subscription service, Le Tote, has completed its acquisition of Lord & Taylor. With the deal now closed, Le Tote has become the first digitally native brand to acquire an established brick and mortar retailer. The company has assumed operations of 38 Lord & Taylor stores and the brand’s digital channels. Through its rental platform, Le Tote said it will offer shoppers access to the largest selection of styles and brands in the industry.
Ralph Lauren Announces Digital Initiatives
In a press release, Ralph Lauren announced the company is seeking growth through digital initiatives that will include “rental, subscription, and resale models”. Executives from the company said that will include a partnership with Urban Outfitters’ new rental effort, Nuuly. Ralph Lauren’s CEO said that digital initiatives including working with Nuuly and Rent the Runway in apparel rental, and Nordstrom’s Trunk Club in subscriptions, are essential to reaching younger consumers, which he indicated is a key growth tactic.
Express Debuts New Direct-To-Consumer Brand
Express introduced a new direct-to-consumer brand, Upwest. The brand will include casual apparel, loungewear, and sleepwear for men and women, according to a press release. The brand will also debut a mobile pop-up concept in major cities like Chicago, Nashville, and Austin.
The company’s new direct-to-consumer brand launch comes at a time when many online companies like Allbirds, Casper, and Glossier, have garnered success. According to a study that came out last year, 81 percent of people said they will make at least one purchase from a direct-to-consumer brand within the next five years. For Express, the new brand could be a way for it to diversify its offerings as many apparel retailers struggle.
Additionally, UpWest’s focus on comfort may play to its favor as athleisure continues to be a rare area of growth for retail apparel. Express CEO Tim Baxter said, “While our primary focus remains on returning the Express business to long-term, profitable growth, UpWest brings something new and exciting to the market,”.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Friday, November 8th, I'm Vincent Phamvan.
A recent survey revealed that Walmart could be gaining ground against Amazon. Prime memberships are dwindling and 55 percent of survey respondents said they prefer to shop at Walmart versus Amazon.
First, here are some retail headlines.
Brilliant Earth Opens Philadelphia Location
Ethically-sourced, digitally native bridal and fine jewelry brand, Brilliant Earth, has opened its eighth location. The 2,000 square foot location in Philadelphia is designed to provide a low-pressure environment with an appointment model that allows for a hands-on, personalized experience tailored to customers’ preferences. The new Brilliant Earth location joins the brand’s existing spaces in San Francisco, Los Angeles, Boston, Chicago, San Diego, Denver, and Washington, D.C. The brand’s co-founder and CEO said , “Our showrooms offer a unique and personalized experience, and we’re thrilled that Philadelphia locals now have the opportunity to view our beautiful jewelry in a serene environment.”
Uber to Start Selling Ads in Eats App
Uber is entering the ad business. The food-delivery company will start selling space inside its Eats app to restaurants hoping to lure in more food delivery orders. An Uber spokesperson confirmed the news saying, “We are exploring relevant ads in Eats.” For Uber, selling ads could help it improve margins on Eats, where it only takes around 10 percent of gross bookings because it pays out so much to restaurants and drivers.
Shopify Announces New Email Feature
Shopify is continuing to expand beyond its core e-commerce platform. The company announced a new product called Shopify Email. The feature integrates with a merchant’s store on Shopify, allowing them to easily pull their brand assets into their emails, along with product content and listings. They can also see whether those emails lead to customers adding products to their carts and purchasing them. Shopify Email is currently available as an early access test for a limited group of merchants, ahead of a broader rollout next year.
Walmart Gaining Ground In Battle With Amazon
According to a new survey, Walmart appears to be gaining ground against Amazon. The frequency of people buying items through Amazon six or more times a month has dropped to 40 percent this year from 80 percent in 2017. 55 percent of those surveyed said they prefer to shop at Walmart versus Amazon, up from about 47 percent the previous year.
Amazon disclosed they have more than 100 million Prime members worldwide. According to First Insight, signups for the membership are dropping. The firm said it found 52 percent of survey respondents were members in 2019, down from 59 percent earlier.
The survey’s findings could be a sign Walmart’s e-commerce investments are paying off. Walmart’s profits topped Wall Street estimates in the latest quarter and the company said e-commerce sales surged 37 percent. Amazon’s third-quarter earnings fell short, with the company spending billions of dollars to expand its free one-day shipping program. The true test could come this holiday season, which has six fewer days than last year, putting more pressure on companies to win over shoppers.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Thursday, November 7th, I'm Vincent Phamvan.
Bow & Drape has been acquired by Win Brands Group. Bow & Drape will join a growing portfolio that includes Homesick Candles and Stowaway Cosmetics.
First, here are some retail headlines.
The RealReal Reports Jump in Revenue
Online luxury goods reseller, The RealReal, reported a jump in quarterly revenue and shoppers on its marketplace. The company said it has 543,000 active buyers, up from 492,000 at the end of June. Revenue was also up at $80.5 million dollars compared to last year’s $51.8 million dollars. The company said it expects to sell goods valued at nearly $1 billion dollars this year.
Birchbox Adding 500 Pop-Ups for the Holiday Season
Birchbox plans to expand its brick-and-mortar partnership with Walgreens for the holiday season. The company, which has 11 permanent locations, will add 500 pop-ups according to a company press release. The holiday Birchbox pop-ups will be at the front of the store in a grab-and-go holiday gift format, according to the release. Items will include BIrchbox subscription gift cards, limited edition travel-themed Birchbox Beauty and Birchbox Grooming boxes. The Birchbox shop-in-shops will be available in Walgreens stores in 44 states beginning this Friday and will run through the end of December.
Costco / Instacart Testing Free One-Hour Prescription Delivery
Costco and Instacart are teaming up to test free one-hour prescription delivery. The pilot program is limited to California and Washington and includes delivery to a Costco member’s home or office. The pilot comes at a time when many of the largest retailers are exploring the $300 billion dollar pharmacy market. The move could help Costco compete with retailers like Amazon and Walmart, who have both dabbled in prescription delivery. Amazon made its first steps into the space in 2018 when it purchased PillPack while Walmart offers mail-order delivery in some areas.
Bow & Drape Acquired By Win Brands Group
Online women’s retailer, Bow & Drape, announced it has been acquired by e-commerce holding company, Win Brands Group. Bow & Drape will join a growing portfolio that includes Homesick Candles and Stowaway Cosmetics.
Founded in 2012, Bow & Drape has attracted celebrity customers like Serena Williams and Reese Witherspoon and sells its customizable apparel and accessories online and at stores like Nordstrom and Bloomingdale’s. It has also dabbled with various partnerships, including setting up shop at SoulCycle to let women customize shirts before their workout. However, given the seasonal nature of the business, it’s struggled to finance new inventory and its cash pile gets thin when it places orders for the holidays according to Pagano. She said the acquisition will give her access to a larger balance sheet, plus assistance with marketing and distribution.
The acquisition could be a sign of what’s to come. With the amount of online retailers growing, competition in the space has driven online advertising rates up, making it more difficult to generate profits or experience the high growth rates wanted by investors. Win Brands Group has purchased two e-commerce companies and is seeking to acquire as many as 25 more brands, each with revenue between $5 and $50 million dollars by 2025. It’s betting it can help online brands compete in a crowded space. The founder and CEO of Win Brands said, “We’re not trying to grow these businesses to $1 billion businesses. But we do want to take these brands that are special and unique, bring them to a certain audience and grow them to their natural size and scale,”.
Closing
Don’t forget, Simplr can help you scale up for the holidays with 24/7 customer service support. Learn more at simplr.ai. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Wednesday, November 6th, I'm Vincent Phamvan.
Old Navy is piloting Size Yes concept stores that sell clothing at prices that don’t vary between sizes of the same item. While the concept is temporary, the company indicated that the pilot is part of a chain-wide initiative to promote size diversity and inclusion.
First, here are some retail headlines.
b8ta Raises $50 Million in Series C funding
According to a press release, b8ta raised $50 million in Series C funding led by Evolution Ventures with participation from existing investors including Macy’s and Peak State Ventures. The company currently has more than 1,000 brands on its platform and will operate 25 flagship locations globally by the end of 2019. The funding announcement appears to be aimed at expanding b8ta’s footprint among retailers. The company recently revealed they were launching Ark and Ark Marketplace, a tech platform that enables retailers and retail landlords to use b8ta store technology to monetize their spaces. The Ark Marketplace platform is currently being used at 19 flagship locations across the country, as well as at the Toys R Us-b8ta concepts and The Market at Macy’s, according to the statement. The company said it has more than doubled its store traffic in 2019 to more than 3 million shoppers visiting its flagship locations. Tapping into the new brick-and-mortar retail strategies may turn out to be critical as reports point to consumers continuing to shop in stores in spite of the rise of e-commerce.
AR Most Likely to Make Brand Look Innovative
According to a survey, augmented reality is the most likely technology to make consumers think a brand is innovative, although most cutting-edge tech falls flat. About 26 percent of consumers said AR led them to think a brand was technically savvy, ahead of AI, facial recognition, chatbots, and cryptocurrency. Almost half of consumers want to see these technologies improve shopping experiences, such as AR that helps to visualize products in real-life settings. 33 percent want technology to help improve customer service. The survey reveals that cutting-edge technology may boost perceptions of brand innovation and help increase sales.
Last-Mile Delivery Wars Heating Up
With the peak holiday season almost here, last-mile delivery wars are front and center. Delivery experiences can make or break a retailer, with 83 percent of consumers in a survey citing that a bad experience would push them to shop elsewhere. Amazon is spending more to meet tight delivery windows, leaving smaller margins, but they set the bar high for customer expectations. Outspending Amazon isn’t an option for most businesses, but that’s not the only option to remain competitive. Shoppers surveyed said they were willing to make tradeoffs, but they come at the expense of the seller. 65 percent of consumers said they are open to slower delivery if it’s free and almost 10 percent say discounts on a future purchase is also a reason to forego faster delivery. With an expected $645 billion value on e-commerce next year, last-mile delivery reliability can make the difference between losing out to Amazon’s shipping options and being competitive.
Old Navy Pilots Size Yes Concept Stores
In October, Old Navy began transforming 30 stores with existing plus-sized sections into full “Size Yes” concept stores. Size Yes will sell clothing at prices that don’t vary between sizes of the same item. Before beginning the rollout of the Size Yes concept, 75 of Old Navy’s locations were piloting in-store shops dedicated to the chain’s collection of plus-sized clothing, called Plus. Old Navy has spoken of the movement as part of a chain-wide initiative to promote size diversity and inclusion. The Size Yes concept is only temporary at this point, with the pilot locations scheduled to return to regular operations on November 13th. The long term goal, however, is to sell all sizes of all products at the same price throughout the chain and ultimately eliminate price disparity.
Many retailers are working to improve their range of size offerings to better meet the needs of a more size-diverse customer base as consumers look toward more inclusive brands. Last year, Walmart announced its acquisition of a plus-sized e-tailer and in 2017, Neiman Marcus began piloting plus-sized clothing. The trend can also be seen in the success of direct-to-consumer companies like ThirdLove and Adore Me, which offer inclusive lingerie sizes, while retailer, Victoria’s Secret, experiences declining sales.
Closing
Find out how Simplr can cut your customer service response time through cutting-edge technology and on-demand talent at simplr.ai. That’s S-I-M-P-L-R.ai. Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Tuesday, November 5th, I'm Vincent Phamvan.
Google just pushed further into a competitive wearables market with its recent acquisition of Fitbit. The $2 billion dollar deal is expected to close next year.
First, here are some retail headlines.
Lululemon Invests in Mirror
Lululemon is now an investor in technology startup, Mirror. Mirror, which sells a home fitness system that displays on a full-length mirror, announced they raised $34 million in new funding, bringing the startup’s total funding to almost $72 million since launching just over a year ago. According to a press release, Mirror plans to use its recent funding to expand into new areas and content verticals. For Lululemon, the investment in Mirror could signal what the retailer is planning next as the company continues to expand its offerings beyond its yoga-apparel origins. Lululemon acknowledged plans to expand its personal care line in September and revealed it was testing a paid membership program that goes beyond free shipping and membership-specific attire perks last year.
Hibbett Sports Partners with Shipt
US-based sports retailer, Hibbett Sports, has partnered with Shipt to introduce same-day delivery service for its customers. The service is free for Hibbett Rewards VIP Members and available in Atlanta, Birmingham, Charlotte, and select Nashville areas. To use the service, customers can select the ‘deliver today’ option online before checkout. They can then track their order status in realtime through email and text alerts. The company’s digital commerce senior vice president said, “Today’s consumers are demanding faster and faster delivery, so we’re leveraging our digital capabilities and partnering with Shipt, to provide seamless and lightning-quick turnaround on the items they want right away”.
Wayfair Focusin on Warehouse Utilization
With net losses growing, Wayfair is focusing on warehouse utilization. The company opened what the CEO described as a U.S. - sized warehouse in the U.K. in the 3rd quarter, bringing its global logistics network to a total of 15 million square feet. Wayfair’s CEO said the company will largely focus on increasing utilization of existing warehouse capacity in 2020 and will pick up its pace of square footage expansion in the U.S. by 2021. Also in the 3rd quarter, Wayfair opened a warehouse in California that has been instrumental in increasing the retailer’s one-day and two-day shipping potential while decreasing inbound shipping costs. Another will be opening in Jacksonville, Florida early next year. Though net losses are growing quarter by quarter, up nearly 80 percent year-over-year in Q3, the company’s CEO insists the Wayfair network is unmatched, and fast delivery means sales.
Google Acquires Popular Fitness Products Company, FitBit
Google reached a deal to buy wearable fitness products company Fitbit for $2 billion. The move intensifies the battle among technology giants to capture consumers through devices other than smartphones. For Google, the deal marks a further push into health.
It also puts Google into direct competition with other tech giant, Apple, which said the rising sales of wearables and related services were becoming a bigger driver of its business. Apple in many ways is a model for what Google hopes to accomplish. While the Apple Watch was initially a disappointment, sales have picked up and the company’s AirPods were an instant hit. The company said that sales in its wearable business have soared 54 percent in the latest quarter.
Fitbit says it has sold more than 100 million devices worldwide since its founding and has more than 28 million active users. In a statement, co-founder of the company, James Park, said, “Google is an ideal partner to advance our mission. With Google’s resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone,”. The deal is expected to close next year.
Closing
Don’t forget, Simplr can help you scale up for the holidays with 24/7 customer service support. Learn more at simplr.ai. That’s S-I-M-P-L-R.ai. Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Monday, November 4th, I'm Vincent Phamvan.
Amazon announced they cut the $14.99 monthly fee for two-hour grocery delivery for Prime members. The move comes at a time when next-day shipping costs have cut into the giant’s profits. It also further positions the retailer as a go-to grocery provider as they work to build out their brick-and-mortar grocery chain.
First, here are some retail headlines.
Authentic Brands Purchases Barney's IP
The intellectual property of Barneys New York has officially gone to Authentic Brands Group for $271.4 million. In a statement, Authentic Brands Group said it is committed to, “preserving the legacy of Barneys New York while positioning it for long term growth through key partnerships that will expand its global presence as a lifestyle brand and luxury retail experience,”. With the sale, Barneys flagship store on Madison Ave. will evolve into a pop-up retail experience according to Authentic Brands Group. In addition, Saks Fifth Avenue will serve as the exclusive Barneys retail and e-commerce partner for both Barneys and BarneysWarehouse.com. Barneys will be featured inside of multiple key Saks Fifth Avenue market locations.
LVMH Looks to Take Over Tiffany's
LVMH has placed an unsolicited bid on Tiffany’s. The $120 per share offer is reportedly being carefully reviewed by Tiffany’s board. The $14.5 billion all cash bid values Tiffany's at a little more than 23 times its fiscal earnings per share according to a note from a William Blair analyst, but Tiffany's isn’t exactly jumping for the offer. A report from the Financial Times indicated the retailer is set to reject it on the grounds that it undervalues the company.
Google Among Search Engines Showing Fake Goods In Results
According to a study, Google is among the search engines that show fake and possibly dangerous counterfeit goods in as many as 60 percent of their search results. The potentially dangerous fake goods include car parts, pharmaceuticals, toys, appliances, and safety equipment. The study highlights problems for brands and consumers and potential legal issues for Google, with the giant estimated to command about 93 percent of the search market worldwide. It also raises important questions as Google continues to build out its e-commerce platform, Google Shopping.
Amazon Debuts Free Grocery Delivery
According to a press release, two-hour grocery delivery will now be free for Prime members purchasing from Amazon Fresh and Whole Foods. Prime Members previously had to pay $14.99 for Amazon Fresh. The company is first offering the service to existing Prime members who already use grocery delivery. Other Prime members who want to get free grocery delivery can request an invitation to be notified when they are able to shop. Amazon has not revealed when the service will become widely available.
This is a huge move from Amazon to drive more people toward grocery delivery and building reliance on Amazon as a grocery provider. It could better position the retailer before the holiday season and as it works on building its own brick-and-mortar grocery chain. Cutting the monthly fee will eliminate a major barrier to online grocery adoption and address customer concerns over the added cost for grocery delivery when they already pay the Prime fee.
The dropped fee could also have an impact on Amazon’s bottom line. The initiative comes on the heels of Amazon’s acknowledgment on its recent earnings that next-day delivery costs for Q4 caused a $1.5 billion adjustment to its earnings for the quarter.
Closing
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. Don’t forget to subscribe and leave us a review. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Monday, October 28th, I'm Vincent Phamvan.
Amazon’s third-quarter earnings fell short. The new free one-day shipping initiative is eating into the retail giant’s profits, but the move could pay off in the long run.
First, here are some retail headlines.
Apple Pay to Become Most Popular Mobile Payment Method This Year
Apple Pay this year will surpass Starbucks in providing the most popular mobile payment method for shoppers in the U.S. Apple’s payment app this year will have 30.3 million U.S. users compared to 25.2 million for the Starbucks payment app. Apple Pay will also be more popular than other point-of-sale payment methods, such as Google Pay, which has 12 million users. Contactless payments are expected to more than double to $220 billion by 2023 from $99 billion in the U.S. this year.
Target's Q4 Payroll Up From Last Year
Target expects to spend $50 million more on payroll during the fourth quarter than it did a year ago. It says it will use the funds to offer more overtime and increase the number of workers in stores at the busiest hours this holiday season. This year, there are six fewer days between Thanksgiving and Christmas, making for the shortest possible holiday season. Target predicts shoppers won’t have time for that December pause. The company’s CEO said, “We have one less weekend during this holiday season, because of that, I think we are going to see a very consistent rhythm and drumbeat of shoppers during December,”.
Affirm Launches App
Last week, payments platform Affirm announced the launch of its app, which allows consumers to shop at nearly any store and pay for their purchases in installments, according to a press release. Retailers who have partnered with the payments company have seen up to a threefold increase in on-site conversion compared to other apps. Affirm is rolling out the app just in time for the holidays to push its alternative payment method for credit cards this holiday season. Findings sited by the company said that 67 percent of consumers want to avoid credit cards during the holidays this year.
One-Day Shipping Eats Away At Amazon’s Profits
Amazon’s third-quarter earnings fell short of Street expectations. The online retail giant reported a 26 percent drop in third-quarter profit as its global shipping cost climbed 46 percent to $9.6 billion. Though the investment in free one-day shipping is eating into Amazon’s profits, it could be worth it in the long run. Revenue grew 24 percent to $70 billion for the quarter, showing their investment in free one-day shipping is leading to more purchases. Amazon spent over $800 million in each of the last two quarters to expand its free one-day delivery program to more products and regions and said it is expecting to spend another $1.5 billion in the initiative during the fourth quarter. However, Amazon’s fourth-quarter revenue guidance came in between $80 billion to $86 billion, far below the street’s average estimate of $87 billion, indicating the all-important holiday shopping season may be underwhelming. In a statement Amazon CEO, Jeff Bezos, highlighted the company’s free one-day delivery initiative, saying it’s leading to higher customer satisfaction. He said, “Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers,”.
Closing
Want to stand out? Simplr can help deliver wow moments for your customers through unparalleled customer service support. Visit simplr.ai to learn more. That’s S-I-M-P-L-R.ai.
Thanks for listening to this latest episode of the Retail E-Commerce Briefing. See you tomorrow.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your Retail E-Commerce Briefing for today, Friday, October 25th, I'm Vincent Phamvan.
With voice-enabled devices like Amazon’s Echo Dot growing in popularity, more consumers are using the devices to make purchases. A report revealed that purchases with the voice-enabled tech could play a growing role in e-commerce.
First, here are some retail headlines.
Brooklinen Launches Marketplace
Direct-to-consumer bedding brand, Brooklinen, launched its own marketplace. The platform, called Spaces by Brooklinen, offers a curated selection of products from partner brands which the company said ranges from independent designers to artisans. According to a company press release, the new marketplace will feature three aesthetics: Relaxed Industrial, Earthy Minimalist, and Modern Glam. In a statement, Brooklinen’s CEO said, “Spaces by Brooklinen is an expansion of our commitment to do the research and curate the very best home goods in a one-platform solution that consumers know and trust, providing them with a simple, fun and satisfying shopping experience,”.
Walmart to Start Holiday Deals Early
Walmart is launching what it says is its earliest-ever holiday deals to make up for a shortened shopping season before the Thanksgiving weekend. According to a press release, discounts are spread across electronics, gaming, toys, home, and sporting goods. The retail giant is also utilizing its expanded set of shopping features and services, including personalized gift recommendations, a scannable toy catalog, and free next-day delivery.
Amazon Acquires Health Navigator
Amazon has acquired digital health startup, Health Navigator, its second acquisition in the health space. Amazon paid $753 million for PillPack last year to get into the online pharmacy market. The retail giant will offer Health Navigator to employees as part of its Amazon Care clinics, which are currently being piloted.
Voice-Enabled Purchases Are On The Rise
Voice-enabled purchasing is on the rise. Out of the 27 percent of American consumers who owned voice-enabled devices last year, 28 percent of them used the technology to make purchases. This year, 31 percent of consumers have voice-enabled devices, and 31 percent of them use the technology for purchases. Per a report, ownership of devices has more than doubled in three years. The report indicates that voice-activated and voice-enabled devices will play a growing role in e-commerce. Last year, an eMarketer report predicted that voice commerce through smart speakers would reach $2.1 billion in 2018, and 74 million U.S. consumers were expected to use smart speakers at least once per month in 2019. Meanwhile, Amazon's Echo Dot reportedly was the e-commerce giant's top-selling product globally during last year's holiday season. Though consumers are interested in voice-enabled devices, it’s still far from replacing trips to brick-and-mortar stores.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Thursday, October 24th, I'm Vincent Phamvan.
Nordstrom has opened a new flagship store in Manhattan, but the big unveil comes at a shaky time for New York retail.
First, here are some retail headlines.
Amazon Adding More Locations to Hub Counter Program
Amazon is adding more package pick-up locations through its Amazon Hub Counter program. The latest retailers to partner with the e-commerce giant are Stage Stores, GNC, and Health Mart. Amazon has been testing pick-up counters at those locations for a few months now according to a press release. The company says it now has thousands of Hub Counter locations across the country and has brought tens of thousands of Amazon customers into partnering retailers’ stores.
REI Exapnding Rental and Used-Gear Business
REI is expanding its rental and used-gear business. The company is piloting a used gear buyback program. Members may receive REI gift cards when they trade in gently-used outdoor items for resale. The move comes as REI is rethinking its core business model in favor of more mindful consumption. The company is also debuting a seasonal ski-rental offering for kids and adults, along with testing a new online rental reservations system that it plans to roll out more broadly in 2020.
LEGO Open to Product Rental
Tim Brooks, Vice President for sustainability at LEGO, said that the company would be open to the idea of product rental. If LEGO could introduce a rental plan, other toymakers would likely follow suit. Much like children’s clothing, a rental model is ideal for the toy industry. Kids apparel and toys are often passed down, but a well-priced service from an iconic company like LEGO could change the industry as a whole. The sheer number of pieces in a LEGO set and children’s tendency to lose parts could make a rental model difficult for the company. But the move is likely to attract sustainability-focused parents who are working to eliminate single-use plastics from their households.
Nordstrom Opens New Flagship Store In Manhattan
Nordstrom opened its first flagship store in Manhattan. The store, which took over $500 million of investment capital to complete, will feature a wide range of brands. Nordstrom, in a bid to keep customers curious, has established itself as a destination for not only the classics, such as Burberry trench coats and Fendi bags, but also the up and comers. In the new store, there will be a pop-up space for Everlane, a trendy women’s and men’s apparel brand that started on the internet and only has a handful of stores in the U.S. Customers will also find Birdies ballet flats, jewelry from Kendra Scott, and dresses from Reformation. The approach of including up-and-comer brands is seen as giving Nordstrom a leg up on the competition, at a time when department store chains are undoubtedly struggling to draw people into stores.
This Nordstrom store has been in the works for seven years. The company says New York City is its largest market for e-commerce but has taken time to find the right location. Co-president Erik Nordstrom said, “This is a big, exciting moment for us. Everything that comes to New York has to be at a standard that’s our best ever. This building we think is super relevant to customers and how they want to be served today,”.
Still, Nordstrom’s big unveil comes at a shaky time for New York retail. The fate of Barneys New York is still uncertain, Lord & Taylor’s famed Fifth Avenue store closed earlier this year, and Saks Fifth Avenue shut its women’s store downtown to focus on its flagship in Midtown.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Wednesday, October 23rd, I'm Vincent Phamvan.
Digitally-native company, Brandless, is expanding into new territory. One component of a broader plan for the company going into 2020, is to have Brandless products on the shelves of major national retailers. According to the CEO, one unnamed major retailer has already signed onto the plan.
First, here are some retail headlines.
CVS and UPS Partner in Testing Drone Delivery of Prescriptions
CVS and UPS have partnered to test delivering prescriptions to people’s homes by drone through the shipping company’s drone unit, Flight Forward. This month, UPS won the U.S. Government’s first approval to operate a drone airline, putting it above rivals like Amazon and Wing. The new prescription delivery service from CVS is said to debut in one or two U.S. cities in the coming weeks. The partnership announcement comes not long after CVS competitor, Walgreens, announced their partnership with Wing and FedEx Express for on-demand drone delivery, making their first home delivery in Virginia.
Nike, Under Armour CEOs Stepping Down
Nike’s CEO, Mark Parker, is stepping down. The company announced the news on Tuesday. Effective in January, Parker will be replaced by the former CEO of eBay. News of Parker’s departure came the same day Under Armour announced its CEO, Kevin Plank, would be stepping down from the role in January. Parker has been with Nike for four decades and became the company’s CEO in 2006, while Plank founded Under Armour 23 years ago, “in his grandmother’s basement.” Both Parker and Plank plan to stay on as executive chairmen at their respective companies.
BestBuy Offering Free Next-Day Delivery
Electronics titan, Best Buy, is introducing a new online delivery option just in time for the holidays. The retailer will now offer free next-day delivery on thousands of items for about 99 percent of its customers. The program excludes some bigger and heavier products like big-screen TVs and refrigerators. Customers who order an oversized item or live outside a free next-day delivery zone will get free standard shipping on all orders, no membership or minimum required. Best Buy is rolling out free next-day delivery alongside other existing omnichannel fulfillment options including one-hour in-store pickup and same-day delivery for online orders placed before 3:00 pm.
Brandless Expanding Into Brick-And-Mortar
E-Commerce business, Brandless, is looking to expand into brick-and-mortar. The digitally-native brand was founded in 2017 and made its name by offering environmentally-friendly consumer products and instead of offering brand name items, the company stocked one “brandless” choice of each item. Now with a new leadership team at the helm, Brandless is looking to expand into new territory.
The company may soon be on the shelves of national retailers. Their CEO said that, “Online is one thing, but in consumers' stores, they want to be able to find our product as well. So we're very excited about wholesale strategy. It's going to be what I would consider a significant win,”.
The company’s pivot into brick-and-mortar, beyond two pop-up stores in New York City and Los Angeles, is just one of three initiatives the e-commerce brand is embarking on going into 2020. The other two elements of the plan include doubling down on the CBD market and expanding into wellness and beauty products.
The CEO said he expects Brandless to ultimately launch its products within 10,000 stores across the US, as part of a partnership with four to five as-of-yet unnamed national retailers. The company has signed with at least one major retailer so far.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Tuesday, October 22nd, I'm Vincent Phamvan.
Walgreens is officially piloting on-demand drone delivery. Eligible customers in designated delivery zones can now receive select packages via drone delivery. Walgreen is conducting the pilot in partnership with Wing Aviation.
First, here are some retail headlines.
Casper Sleep Working on IPO
According to a Bloomberg report, Casper Sleep is working with Morgan Stanley and Goldman Sachs Group on an initial public offering. The online mattress seller’s IPO could occur by the end of this year, or in the first half of 2020. Casper could exceed $1.1 billion private valuation. According to Bloomberg, the IPO proceeds would help the retailer fund expansion, including storefronts.
Hudson's Bay Going Private
Hudson’s Bay Company has agreed to be taken private by a group of its shareholders. The investors have agreed to a deal of 10.30 Canadian dollars per share, a 62 percent premium over Hudson’s Bay’s most recent closing share price. In a press release, Hudson’s Bay said the deal offered a compelling value proposition given a deteriorating retail environment. The deal would be financed with debt and the company’s existing cash resources.
Groupon and Mindbody Partnership Grows
Online deals company, Groupon, announced they would grow their partnership with Mindbody. The expanded partnership is expected to give Groupon’s 29-million customer base a significantly larger selection of fitness, beauty, and wellness businesses offering deals in their local neighborhoods. The seamless real-time booking of wellness services via Groupon will also eliminate the need for vouchers or a call to the merchant to schedule an appointment. Experiential deals have increasingly been the focus for Groupon as research has shown that many millennial consumers prefer purchasing experiences over material possessions.
Walgreens Launches Pilot Of On-Demand Drove Delivery
Walgreens is officially piloting on-demand drone deliveries in Virginia. The drugstore giant is live with a trial of store to door deliveries of health and wellness, food and beverage, and convenience items via drone delivery. Walgreens is conducting the pilot in partnership with Wing Aviation, a subsidiary of Google parent company Alphabet. Launch of the pilot makes Walgreens the first retailer to offer on-demand drone delivery service in the U.S.
The companies are running the test in conjunction with FedEx. Eligible FedEx Express customers who live within designated delivery zones and opt into the Wing delivery service can receive select packages by drone. Customers in the area have access to more than 100 products and six pre-built packs of items through the Wing app. In a statement, a Walgreens executive said quote, “Today is a great day for the future of consumer convenience...This industry-first drone delivery pilot with Wing expands our omnichannel offerings to provide customers the products they need wherever, whenever, and however they want them,” end quote.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Monday, October 21st, I'm Vincent Phamvan.
The future of Barneys still remains unclear, but a bid from Authentic Brands Group could see the luxury retailer end up in Saks Fifth Avenue stores. The plan would entail licensing the brand to Saks Fifth Avenue. Saks would install Barneys departments in some of its stores, as well as run its website.
First, here are some retail headlines.
Venmo Partnering with Synchrony to Launch Credit Card
Mobile payment service, Venmo, is partnering with Synchrony Financial to launch a credit card in 2020. Venmo’s parent company, Paypal, announced the new partnership in a press release. The deal deepens PayPayl’s 15-year relationship with Synchrony and allows the bank to diversify outside the retail space. Synchrony has also co-branded credit cards with Amazon, Lowe’s, Banana Republic, and JCPenney.
b8ta Announces New Concept
b8ta announced a new concept called Forum that pushes its focus beyond electronics and devices and into fashion and lifestyle. Its first Forum location opens November 15th on Melrose Avenue in Los Angeles according to a company press release. The company, which calls itself a retail as a service platform, is letting each brand partner design its own space and curate its brand experience, including product launches, community, and VIP events. b8ta leverages store design and data to showcase goods, many from little-known makers, in its own stores and in other retailers' spaces, notably at Macy’s which invested in the company last year. b8ta said it chose its Forum partners based on their focus on ethical and sustainable production, including Just Human, Tact & Stone, Poplinen, and PROCLAIM.
Five Below Led Series A Funding Round for Nerd Street Gamers
Five Below led a Series A funding round for esports infrastructure company, Nerd Street Gamers. Five Below, along with Comcast, SeventySix Capital, Elevate Capital, and George Miller, invested $12 million in the company. As part of the deal, Five Below and Nerd Street Gamers will build 3,000 square foot Localhost spaces connected to Five Below stores and will host live, in-person events with professional-level equipment. For Five Below, the move appears to be about attracting more younger customers. The retailer’s funding of Nerd Street Gamers isn’t the only investment the company has made recently. Earlier this year, Five Below worked with BRP on revamping its in-store tech capabilities. The retailer is performing well and in the second quarter, CEO and President, Joel Anderson, said the company could open as many as 150 new stores this year.
Authentic Brands Group Bids On Barneys
Authentic Brands Group, the licensing company that owns Aeropostale and Juicy Couture, has put in a $271 million bid to buy Barneys out of bankruptcy, according to court filings. The plan would entail licensing the brand to Saks Fifth Avenue. Saks would install Barneys departments in some of its stores, as well as run its website.
In bankruptcy, Barneys has whittled down its size from more than ten namesake stores to five. While experts have said Barneys’ brand in the luxury space remains strong, the future of its remaining stores has been in question. Authentic Brands would still try to renegotiate the leases for some of its best properties as part of the deal, including staying in Madison Avenue but downsize its presence. Barneys filed for Chapter 11 protection in August and a bankruptcy auction is scheduled for later this month.
Putting Barneys inside Saks would echo a move it and other department stores, including Macy’s, have taken to add variety to their shopping experiences. Saks experiments with its stores in recent years include creating wellness centers. The brand is one of the brighter spots within parent Hudson’s Bay Company’s portfolio.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Friday, October 18th, I'm Vincent Phamvan.
Mega-mall, Hudson Yards, was met with skepticism. As more shoppers turn to the internet, many doubted the experiential new mall would find success.
First, here are some retail headlines.
Juul Slapped With Wrongful-Death Vaping Suit
Juul has been at the center of controversy as vaping linked deaths have continued to rise. In what may be the first wrongful-death vaping suit, one mother is saying the company’s electronic cigarettes and nicotine cartridges were a significant factor in her 18-year-old son’s death more than a year ago. The suit was filed on October 15th in the U.S. District Court for the Northern District of California, which is where Juul’s headquarters is located.
U.S. Retail Sales Fell in September
U.S. retail sales fell for the first time in seven months in September. The drop suggests that manufacturing-led weakness could be spreading to the broader economy. Retail sales dropped 0.3 percent last month as households cut back spending on motor vehicles, building materials, hobbies, and online purchases. Signs of cracks in the economy’s main pillar of support ahead of the holiday season could further feed financial market fears of a sharper slowdown in economic growth.
Trial Mall of the Future, Hudson Yards, Sees Success In First Year
When the Hudson Yards mega-mall opened roughly a year ago, there were a lot of skeptics and there still are. The development is in many ways meant to be a new blueprint for a shopping mall in the twenty-first century and age of Amazon. There’s a floor dedicated to brands born online, only one department store, plenty of restaurants, co-working space, interactive art exhibits, and room to lounge outdoors. Everyone now wants to know if Hudson Yards can succeed in an age where more shoppers are turning to the internet.
In an interview, Hudson said that while its a tough retail market they’re getting into, the sales numbers at Hudson Yards are phenomenal. Hudson Yards is expected to see more than 20 million visitors in its first year being open. A few retailers have already found success in the mall. Experiential store, b8ta, has been a standout among the retailers, along with luxury brands like Dior. Hudson said in a quote, “Of all the projects we are involved in, this is the most thrilling.”
Closing
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Thanks for listening to the latest episode of the Retail E-Commerce Briefing. Tune in tomorrow for our interview with the founder of Blue Apron and Cooks Venture.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Thursday, October 17th, I'm Vincent Phamvan.
Google has been the powerhouse in search ads for years, but a new forecast predicts Amazon will continue to chip away at its dominance. The retail giant has continued to optimize its ad functions and has experienced major growth in the past few years.
First, here are some retail headlines.
DoorDash Opens First Brick-and-Mortar Shop
DoorDash has gone beyond online delivery and has opened its first brick-and-mortar shop. The company’s first shared kitchen, called DoorDash Kitchens, provides a cooking space for four of its restaurant partners. The kitchen, located in Redwood City, California, also allows the restaurants the ability to offer food delivery to seven Bay Area cities and pick up to 13 cities. The company’s head of new business verticals said that, “To date, DoorDash has been primarily focused on helping partners grow existing restaurants, so this is a really natural extension of what we built our business on,”.
Hill City Opens Pop-Up Store
Men’s activewear brand, Hill City, is looking to ramp up its growth. The direct-to-consumer company launched by Gap Inc. a year ago has opened a store in San Francisco. The 12-month pop-up features a curated selection of best sellers. Hill City is also trying something new for a Gap Inc brand: entering into wholesale partnerships. Select items will be available at Neighborhood Goods, Need Supply, and A Runner’s Mind. Gap’s Athleta brand will also feature the Hill City collection in seven of its locations. The expansion of Hill City, which has been referred to as a male version of Athleta, comes as Lululemon is growing its menswear business, whose comparable sales grew 27 percent in the last year.
Madewell and ThredUP Team Up
Madewell and ThredUP have teamed up for a program called the Madewell Archive. Select Madewell stores are now offering secondhand jeans for $50 dollars a pair. The used denim is sold only at Madewell stores in Austin, Chicago, Nashville, and New York City. At the moment, customers aren’t able to drop off clothes to sell or pick up items they’ve bought through the site, but a spokesperson said the partnership is ongoing and there could be changes later on. The partnership puts Madewell on a growing list of retailers who are breaking into the resale market. A spokesperson from ThredUP said that quote, “Madewell wanted to take their sustainability efforts to the next level and expand their denim recycling program — we are so excited to power this new resale experience for them and continue to promote a more circular fashion future,” end quote. For ThredUp, the partnership comes not long after announcing their consignment clothes would have featured sections in select Macy’s and JCPenney stores.
Amazon Gives Google A Run for its Search Ad Money
Google by far holds the highest share of search ad revenue in the U.S., but according to a new eMarketer forecast, Amazon is expected to chip away at that dominance over the next few years. The retail giant has made moves to upgrade its ad offerings. Last year, they simplified their advertising functions branding and came together as Amazon Advertising. In May, the company agreed to buy an ad server and a dynamic creative optimization unit that would help advertisers place ads and measure effectiveness. And in early October, Amazon held an event called AdCon to showcase its growing list of ad products, drawing in about 400 people in Seattle for the event.
Advertising is critical for Google, making up about 84 percent of Google parent company Alphabet’s revenue last quarter, with search ads a major component. The study said the U.S. search ad market is expected to grow nearly 18 percent this year to reach $55.17 billion. Google holds a 73.1 percent share of that, equaling $40.3 billion. Amazon’s ad business has seen huge growth in recent years, climbing 37 percent to $3 billion in the second quarter. In February, eMarketer said Amazon was projected to claim 8.8 percent of U.S. digital ad spending in 2019, up from 6.8 percent in 2018. Amazon also passed Microsoft last year to become the second-largest ad platform for search in the U.S.
Closing
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From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Wednesday, October 16th, I'm Vincent Phamvan.
Retailers are facing another big hit from Amazon. The retail giant has now made cheap, single-item purchases available to customers with the option for free one-day shipping. The convenience for shoppers is unmatched, but the change could add to the concerns that Amazon engages in anticompetitive behavior.
First, here are some retail headlines.
Women's Intended Holiday Spending Expected to be Flat
According to a survey, women’s intended spending this holiday season is flat compared to the previous year. 43 percent of those surveyed said they plan to spend the same as last year and nearly half of the survey’s respondents intend to make more than 50 percent of their holiday purchases online. According to a report from Bloomberg, women drive 70 to 80 percent of household purchasing decisions, making it essential for retailers to be ready to meet their needs during the busy holiday season.
FreshDirect Seeking Potential Buyers Including Walmart and Amazon
Amazon and Walmart are reportedly considering buying on-demand grocery delivery platform, FreshDirect. The company has been experiencing order issues following its move to a new distribution center in the Bronx in 2018. According to The New York Post, J.P. Morgan is now seeking potential buyers. This is the third time that both Amazon and Walmart are said to be considering acquiring FreshDirect.
Online Grocery Shopping Growth Tame
Despite the predictions that online grocery shopping will eventually become a $100 billion market, growth to date has been pretty tame. The latest figures put sales at anywhere from 3 percent to 6 percent of the total market. Consumer studies have revealed that most grocery e-commerce platforms don’t make shoppers want to explore products the same way they do in-store, a key component of consumer’s lack of enthusiasm and market’s slower than expected growth. Online grocery sites don’t offer much in the way of solutions, with the design and functionality seeming more like retailers' main focus was just to get their inventory online. That online grocery platforms would be sub-par at this point is understandable, as many are just getting started. But grocers have a unique opportunity to offer new experiences in food and beverage — a segment of retail where consumers are looking for inspiration and better health. As the market continues to grow and shoppers seek improved online experiences, it’ll become increasingly important for grocery stores to work on their e-commerce platforms.
Amazon Ups The Ante In Fast, Free Shipping
As Amazon has tackled more product categories on its way to e-commerce domination, there’s been one area of growth it was restrained: low-priced goods where the cost for the retail giant to ship them was higher than the price a customer paid. But now that’s changed. Over the past few months, Amazon has removed barriers that previously made it difficult for customers to purchase an item below $5 dollars on its own. Now low-price items are available to Prime customers with free one-day shipping.
Until recently, someone looking to buy a single item like a stick of deodorant would have to jump through some hoops on Amazon to get it, such as buying a four-pack or adding on items in order to hit a $25 dollar minimum before Amazon would qualify the purchase for Prime shipping. For Prime customers, the convenience of getting such a cheap item delivered so quickly now is unmatched. Amazon is also starting to place wholesale orders for cheap items it once turned away over profitability concerns. The retail giant’s changes could make it the go-to for a category of regularly consumed household items that it has yet to fully enter into.
The changes could have huge ramifications for retailers like Target or CVS, where one-off purchases of consumer packaged goods are common. At the same time, the moves could add to the complaints that Amazon engages in anticompetitive behavior.
Closing
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From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Tuesday, October 15th, I'm Vincent Phamvan.
America is increasingly losing the Chinese shopper. China was once viewed by American brands as a land of opportunity. Now, Chinese consumers are looking more to local brands as Chinese brands grow stronger and political controversy plagues American brand’s relationships with the country.
First, here are some retail headlines.
Allbirds Expanding Retail Footprint
Popular eco-friendly, digitally native footwear brand, Allbirds, is expanding its retail footprint. The company announced it plans to open 20 stores in 2020 in markets like Atlanta, Dallas, and Denver. Allbirds, which launched online in 2014, opened its first physical stores in 2018. The new locations will bring its total store count to about 35.
Victoria's Secret Making Big Changes Amid Sales Slump
L Brands’ Victoria’s Secret is making big changes as they try to pull out of a sales slump. The company cut around 50 people at its Ohio headquarters last week. That represents about 15 percent of Victoria’s Secret’s employees at the brand’s home office. It’s the latest move for the troubled lingerie brand. The company’s sales have slowed as female consumers turned to body-positive start-ups including Adore Me, Aerie, and ThirdLove. In addition to the lay-offs at its headquarters, Victoria’s Secret has also cut its annual fashion show as viewership has fallen off and made changes to its leadership team. The company has also recently started featuring its first plus-size model.
Trump Calls "Phase One" Deal with China "Substantial"
President Donald Trump says the U.S. has come to a substantial phase one deal with China. In exchange for America scrapping tariffs that were set to take effect on October 15th, China will purchase about $40 billion to $50 billion worth of agricultural products. Chinese media didn’t describe it as a deal, but as substantial progress. China reportedly wants further talks to iron out the details before signing.
American Brands Losing Popularity In China
American brands aren’t just facing challenges with political controversy in China. Brands are also up against competition like Three Squirrels. In seven years, the maker of nuts, seeds, and fruits has become one of the country’s most popular snack sellers. Its sudden popularity has made it difficult for iconic American snack brands like Oreo, to gain favor. For years, American companies looked to China as a land of opportunity, but now a new reality is settling in. Chinese consumers won’t save the day for Western brands.
One of the challenges American brands are facing is that Chinese brands are getting stronger. The other is that Chinese consumers are increasingly turning away from foreign brands because of controversy with Chinese politics. As a result, American brands that used to be cool are now falling out of fashion. As the Chinese economy shifts, McKinsey and Co predicts between $22 trillion and $37 trillion of economic value could disappear as supply chains shrink and other changes spread through the global economy.
Closing
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From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Monday, October 14th, I'm Vincent Phamvan.
With self-checkout technology becoming more widespread, theft is also on the rise for retailers. According to a report, theft accounts for 4 percent of most retailer’s inventory. But the cost-effectiveness of self-checkout seems to trump the rise in stolen inventory.
First, here are some retail headlines.
REI Expands Selection with Dropshipped Items
REI announced they are now offering an expanded selection of gear and apparel online with dropshipping. The company’s expansion allows it to increase its assortment without having to fit additional inventory in its warehouses, plus REI can also gain new insights about its customers based on the orders placed through its partners. The chief digital officer at REI said, “this functionality opens up so many doors for our customers and gives them access to new sizes and styles of products that we could not stock previously,”. The retailer’s new online expansion is their latest move as they strategize to provide more options for shoppers online and in-store.
New CEO for Bed Bath & Beyond
In the midst of continued turmoil, Bed Bath & Beyond has poached former Target executive as their new CEO. The announcement to name a permanent CEO has been a long time coming since the company’s former CEO’s departure in May. The announcement comes just days after the home goods retailer announced 60 store closures by the end of the fiscal year, a 50 percent increase from the 40 stores it initially announced closing. The company indicated that newly appointed CEO, Mart Tritton, will be immediately focused on the company’s ongoing business transformation. While at Target, he re-envisioned its private-label strategy, an area Bed Bath & Beyond has room for growth. One of the retailer’s Chairman said in a statement that he believes Mark’s ability to re-define the retail experience and drive growth makes him uniquely equipped to lead Bed Bath & Beyond at a critical time in their organization.
Private Label CPGs are a Disrupter
According to a report from Coresight Research, private label sales of consumer packaged goods have effectively disrupted the industry. Private-label sales grew from 2.2 percent in 2015 to 5.8 percent in 2018 and annual sales have grown four times faster than national brand sales. Many major retailers are incorporating private label brands into their strategy, including Target and Kroger. But Costco's Kirkland remains the titan in the space with sales exceeding $39 billion last year, reflecting a higher than 10 percent growth rate. CPG makers are fighting back, with Coresight noting Unilver’s efforts through the acquisition of Dollar Shave Club in 2016. For retailers, the key advantages of private label growth is the direct relationship they have with their customers. They have access to valuable customer data from transactions and loyalty programs that helps them better understand their customers.
Self-Checkout Technology Wide-Spread
Self-checkout technology is wide-spread with large and small retailers alike. Without the supervision of cashiers, theft seems like it would occur more often. While theft is more likely to happen with self-checkout, retailers have still embraced the method. Shoplifting accounts for nearly 4 percent of inventory for retailers with self-checkout, compared to just 1.5 percent for traditional checkout, according to a report. What’s more, in a recent review of shoplifting offenders, 72 percent said that self-checkout made theft easy to very easy. Only 8 percent answered it made shoplifting more difficult.
For some retailers, they’re finding higher sales in addition to higher losses with self-checkout. Still, most are willing to take the chance of more losses. Switching to self-checkout provides convenience and the cost to sell is much lower. A self-checkout setup with four machines costs $125,000 versus just $1,500 for four traditional registers according to estimates from MIT. But with only one person needed to man self-checkout compared to four at the registers, cost savings can add up quickly.
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Thanks for listening to the latest episode of the Retail E-Commerce Briefing. Until next time.
On this episode Vincent speaks with Scott Tannen, co-founder and CEO of Boll & Branch. Boll & Branch isn't your average home goods company. The direct to consumer bedding brand is on a mission to change the world. Every single product is made with sustainability in mind and has been ethically sourced in order to make a difference.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Friday, October 11th, 2019, I'm Vincent Phamvan.
Are outlets finally moving online? Outlet mall selections that were previously only available at brick-and-mortar locations. Now one of the largest mall owners, Simon Property Group, has launched a website, shop premium outlets.com, where brands from Vince to Under Armour offer their outlet goods for sale online.
First, here are some retail headlines.
Burberry and The RealReal Announce Partnership
Burberry and The RealReal announced a partnership that encourages customers to sell the designer’s pieces on the luxury consignment marketplace. In return, customers will receive exclusive access to a personal shopping experience in select Burberry stores in the U.S. According to a company press release, consumer demand for Burberry goods has increased 64 percent year-over-year. The new partnership between Burberry and The RealReal is part of the company’s efforts to promote the benefits of a circular economy for fashion by encouraging customers to extend the life of their products through resale, per the release.
Zulily Adds Price Comparing Feature
Zulily introduced a feature that aims to show shoppers how much cheaper its prices are compared to retail giants Amazon and Walmart. The comparison will show up on thousands of Zulily product pages every day as long as the exact item is also being sold on Amazon or Walmart.com. During testing, Zulily said its prices were lower than competitor’s 97 percent of the time. It’s a bold move since its unclear how Amazon and Walmart will respond to the strategy.
Stitch Fix Adds Direct Selling
Stitch Fix has added direct selling to its platform for the first time. The company launched two new features that let customers shop personalized recommendations directly. The new features, which are currently available to adult women in the U.S., rely on Stitch Fix’s data alone, removing the eye of human stylists from product recommendations. Opening up direct selling gives more control to Stitch Fix customers over specific items and needs, as well as lowering the barrier to entry for potential Stitch Fix clients. According to the company’s CFO, the new features will improve the company’s overall margins.
Outlet Malls Finally Embrace Growing Online Shopping Trend
Outlet malls haven’t felt the same strain as other retailers as the shift to online shopping continues to grow. Shoppers were often willing to head to the outlet stores for reduced-price goods that weren’t widely available online. Now one of the largest mall owners, Simon Property Group, has launched a website, shop premium outlets.com, where brands from Vince to Under Armour offer their outlet goods for sale online. It’s one of the first websites to feature merchandise from outlet stores.
The Chief Executive of Simon Property Group said he’s not worried about the website pulling shoppers away from his company’s outlet malls. One of which includes Woodbury Commons Premium Outlets with 250 stores from Gucci to Nike, and does over $1.4 billion in sales annually. He says he thinks both online and brick-and-mortar will feed off each other to generate higher sales.
Outlet retailers are among the last to move online. The new push comes as they continue to face stiffer competition from off-price chains like T.J. Maxx and Nordstrom Rack, along with regular stores that have cut prices to remain competitive.
Closing
Thanks for listening to the latest episode of the Retail E-Commerce Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Thursday, October 10th, 2019, I'm Vincent Phamvan.
Walmart is making moves as they shift their e-commerce strategy. After recently acquiring several digitally-native brands that have yet to be profitable, the company is cutting back. The retailer sold ModCloth and now Walmart-owned Bonobos are laying off dozens of employees this week.
First, here are some retail headlines.
Boll & Branch Forms Partnership with Nordstrom
Boll & Branch has formed a partnership with Nordstrom to add to the retailer’s newly launched Sustainable Style category. The Boll & Branch bedding selection will include its organic and Fair Trade-certified signature sheets, pillows, and throw blankets. The home goods company will be available online at Nordstrom and in select stores.
Relaunched Toys R Us Website Powered by Target
Toys R Us is looking to Target and its website to power e-commerce sales. The toy company relaunched its e-commerce site on Tuesday and includes product reviews, toy lists, and do-it-yourself activity ideas. When it comes to actually buying toys, shoppers are directed to product pages on Target’s website. Target will then complete transactions and fulfill products out of its inventory for Toys R Us shoppers. Partnering with Target gives the new, and still small, Toys R Us scale ahead of the holiday season.
Google Looking to Acquire Firework
Google is reportedly in talks about buying Firework, a free smartphone app for users to share 30-second videos. Acquiring the video-sharing startup could help it counter the fast-growing platform, TikTok. Google isn’t the only one moving into the short video space. TikTok’s rapid growth alarmed Facebook executives, who launched a similar app called Lasso in 2018. Snapchat has also rolled out new features similar to that of TikTok’s. According to sources, part of Google’s motivation for looking to acquire the platform is to stay ahead of the new trend. They’re reportedly also considering other acquisitions in the space.
Bonobos Lays Off Employees During Walmart’s E-Commerce Strategy Shift
Walmart-owned, Bonobos, is making cuts to staff. The news comes on the heels of Walmart selling its other recently acquired digitally-native brand, ModCloth. According to the Wall Street Journal, Bonobos will be laying off a few dozen employees this week. A spokesperson from the company said, quote, “These decisions are not taken lightly, but we believe they are necessary to set the brand and business up for long term success,” end quote.
While Walmart is staying quiet, the changes make it clear a new e-commerce strategy is being set in place. The retailer acquired Bonobos for $310 million a little over two years ago. The announcement came only months after the acquisition of ModCloth, which the company just sold to Go Global Retail. Walmart is also reportedly in talks to sell its concierge service, JetBlack. They were also said to be considering selling Bonobos but opted against it. The company’s online business is reportedly facing a $1 billion loss this year.
The new moves indicate Walmart is shifting away from its focus on growing e-commerce through acquired digitally-native brands.
Closing
Thanks for listening to the latest episode of the Retail E-Commerce Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Wednesday, October 9th, 2019, I'm Vincent Phamvan.
According to a report from Coresight Research, holiday shopping could become less important for retailers. Ease of online shopping and constant deals throughout the year are taking shopper spend away from the months of November and December.
First, here are some retail headlines.
Holiday Spending Expected to Rise
Holiday spending is expected to rise 5 percent this year. While consumers plan to spend more, they plan to spend their money differently than the year before. 53 percent of holiday shopping is expected to be done digitally. 20 percent of those sales are expected to be done on mobile devices. With more than half of holiday shoppers reporting that they spend more than three hours on their mobile devices, it’s not a surprise that spending habits would shift. The trend could affect shopping on big holidays like Black Friday. While Black Friday has traditionally been a day for brick-and-mortar, a report revealed that the number of consumers planning on shopping online is almost identical to the number of consumers planning to shop in-store.
Macy's Announces Holiday Hiring
Businesses are preparing for the holiday season ahead. Macy’s announced its aiming to hire on 80,000 new holiday workers at its Macy’s and Bloomingdale's stores. The company’s retail locations will account for a majority of the hires, but about 30,000 of the seasonal employees will be based in fulfillment facilities. While Macy’s prepares for a busy holiday season, UPS is also planning on hiring 100,000 seasonal employees to handle increased package volume. The company delivered over 762 million packages in 2017 during the peak holiday season and digital shopping is expected to reach an all-time high this year.
Consumers Willing to Wait for Deals to Buy Online
According to a survey, consumers are willing to hold off on purchasing items online to wait for deals. 45 percent of respondents said they plan to start their holiday shopping before November. For online shopping, 57 percent of those surveyed said they plan to spend the most during November and December. But when it comes to online shopping, respondents said they would wait or were willing to wait until Cyber Five Weekend or later to get last-minute deals.
Holidays Sales Becoming Less Important?
Are holiday sales becoming less important for retailers? While there will be an increase in holiday sales this year, Coresight Research said that holiday shopping is becoming less important for retailers. The holiday season accounted for more than 24 percent of all retailers’ sales in previous years but is closer to 21 percent today. And Coresight expects that number to continue shrinking.
Ease of online shopping and constant deal days throughout the year has contributed to the trend. Amazon’s Prime Day has led to retailers like Target and Walmart to offer discounts on popular items throughout the summer to remain competitive, pulling shopper’s spend from the months of November and December. Coresight is also predicting that 23 percent of all holiday sales will take place online this year, up from 2018.
If the trend continues, retailers could have the issue of ending up with too much inventory after the holiday season, leading to steeply discounted stock in January. The report from Coresight also noted that Thanksgiving comes late this year, meaning there are six fewer days between Thanksgiving and Christmas than 2018.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Tuesday, October 8th, 2019, I'm Vincent Phamvan.
Consumers are becoming increasingly concerned with the environmental and social impact of their purchases. Could the responsible retail trend affect holiday shopping this year? According to a survey, 45 percent of shoppers would be more likely to buy products from companies that addressed wider social issues.
First, here are some retail headlines.
Brick-and-Mortar Still On Top in Halloween Sales
For Halloween, brick-and-mortar still comes out on top. According to a survey, 42 percent of shoppers will go to a discount store for Halloween merchandise and 36 percent to a specialty store. Only 25 percent said they would shop online for the holiday. According to the survey, consumers plan to spend $3.2 billion on costumes, $2.6 billion on candy, and $2.7 billion on decorations, and $390 million on greeting cards this year. Total spending is expected to hit $8.8 billion this year, the third-highest in the survey’s 15-year history.
Retailers Preparing for Black Friday
Retailers are already preparing for Black Friday. Big players like Amazon, Best Buy, and Walmart are on track for big Black Friday sales, but will there be a clear winner this year? Predictions place Kohls at the top of the list this Black Friday. The company has a growing relationship with Amazon, and both retailers are predicted to mutually benefit off one another this year. If the prediction is right, Kohls could have a big holiday season as a result.
Target's Seasonal Hiring Goal Higher Than Last Year
Target is planning for the holidays by aiming to hire on 130,000 seasonal employees. That’s up from the company’s goal to hire 120,000 seasonal workers in 2018. The retailer said around 125,000 of those employees would be in store locations, while the rest would be placed in fulfillment and distribution centers. According to Target, the amount of workers dedicated to online fulfillment this year would be two-fold from last year. The announcement came a day after Amazon announced it would add more than 30,000 full-time and part-time jobs in its departments. Kohls also started hiring for the holidays in July, taking into account the difficulty of finding seasonal workers with the U.S. hitting near-record lows in unemployment.
Consumer Increasingly Concerned with Environmental and Social Impact of Purchases
Consumers are becoming more concerned about the environmental and social impact of their purchases. According to a survey, this awareness will influence holiday spending. 45 percent of shoppers said they were more likely to make purchases from retailers who addressed wider social issues through their business practices and working conditions. Half of those surveyed said they would opt-in for slower delivery or in-store pickup due to the negative impacts of fast shipping, which includes the use of planes rather than ground transportation, as well as the shipping of multiple items separately rather than together.
The responsible retail trend bodes well for the rental and resale industry. 24 percent of those surveyed said they would be likely or extremely likely to rent clothes for holiday parties. 48 percent of respondents said they would consider giving secondhand clothing as gifts. 56 percent said they would welcome those kinds of gifts for themselves.
The survey findings reveal the importance of company strategies and initiatives moving forward. Retailers will need to design their products and business around a more responsible model. Those already on that path could have an advantage over competitors this holiday season.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Monday, October 7th, 2019, I'm Vincent Phamvan.
Google is revamping its e-commerce efforts. New updates to Google Shopping and Google Lens reveal that the tech giant is positioning itself as a top choice in the midst of competition from Amazon and other platforms.
First, here are some retail headlines.
Kardashian-Jenner Family Enters Resale Market
The Kardashian-Jenner family is venturing into the growing resale market. Their new online venture called Kardashian Kloset debuted on October 4th and lets shoppers explore and buy items from the family. They’re entering the industry at a time that sustainability is a main focus for many shoppers. Resale has grown 21 times faster than the retail apparel market over the past 3 years. Kardashian Kloset will join well-known players like ThredUp, The RealReal, and Poshmark in the resale space.
REI Debuts New Store Concept
Outdoor gear and apparel retailer, REI, has debuted a new store concept. The new location differs from the retailer’s traditional spaces by combining merchandise, guided outdoor experiences, and equipment rentals all under one roof. REI’s new concept store is designed to be a launching pad for outdoor activities where people can gather, plan their trip, and get the gear they need. The new 24,779 square foot concept store is located in North Conway, New Hampshire.
Walmart Selling ModCloth
Walmart is selling ModCloth to Go Global Retail. The retailer acquired ModCloth in 2017 as part of its strategy to add brands not available on Amazon to its portfolio. However, the strategy hasn’t worked as well as Walmart had hoped. ModCloth, along with several other acquired brands, has yet to turn a profit. Walmart had been reportedly considering selling a few of the private-label brands they had acquired for several months, as they shift their focus to rely on homegrown e-commerce brands. The deal between Walmart and Go Global Retail is expected to close later this year.
Google Unveils New Google Shopping, Google Lens Features
In the midst of rising competition and slowing growth, Google is rolling out new updates to its e-commerce platform and visual search camera technology according to a series of blog posts. Google Shopping now has a redesigned homepage that is more personalized based on user habits. It now gives shoppers the option to make purchases from online retailers directly through Google or at nearby stores. New location capabilities let users see nearby stores that carry the products they’re searching for and if they’re in stock. Another new update in Google Shopping is a new price-tracking tool that pings users on their smartphone when the price of a tagged item drops. Google will also extend the notification to emails in the coming weeks. Google Lens rolled out an image recognition solution to provide style inspiration. Users can scan items of clothing in-store or take screenshots to see photos of how the clothing has been styled by others and finds matching apparel. Both Google Shopping’s updated storefront and Google Lens are live in the U.S.
Google is rolling out these features in time for the holidays as a means to grab a larger piece of the e-commerce market and is the tech giant’s attempt at diversifying its revenue streams as competition grows. The new Lens capabilities also shows that Google is looking to compete more with mobile-first sites like Pinterest, which also offers visual search capabilities.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
On this episode Vincent speaks with Matt Hayes, VP of eCommerce and one of the founders of Leesa. Leesa has quickly become one of the top direct to consumer mattress brands in the industry.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Friday, October 4th, 2019, I'm Vincent Phamvan.
UPS has hit a milestone in drone delivery. The shipping company has received the first broad approval from the FAA. UPS plans to start using the drone approval for package deliveries to hospital campuses.
First, here are some retail headlines.
Neiman Marcus Expanding Beautry Wellness Category
Neiman Marcus is expanding its beauty wellness category. The luxury retailer launched the new Clean Beauty online shop, which is focused on an assortment of natural beauty products. The shop will be comprised of skincare, haircare, and nail care. Neiman Marcus is launching the new initiative just in time for the holiday season, where according to a survey, 45 percent of shoppers said they are more likely to do their holiday shopping with retailers that address wider social issues.
SoulCycle Shifting to Direct-to-Consumer
SoulCycle is continuing to shift into a direct-to-consumer brand. Earlier this year, the company created its first in-house product team and launched its apparel brand, Soul by SoulCycle. Now SoulCycle is rolling out three new initiatives to push further toward a direct-to-consumer retail model. The company is launching an affiliate program to leverage its instructors as influencers. They’re also one of a handful of brands testing Instagram’s product launch feature, and the company is relaunching its e-commerce platform under the new name of Soul Shop. While Soul by SoulCycle originally launched at Nordstrom and is still being sold there, the company’s focus going forward will be shifting toward direct-to-consumer retail.
Bed Bath & Beyond Adding Experiences to Wedding Registry Categories
Bed Bath & Beyond announced that they have added experiences to its wedding registry categories. The retailer has partnered with wedding registry experience platform, VEBO, for the new program. Bed Bath & Beyond isn’t the first major retailer to use this tactic. Target partnered with Honeyfund in 2018 to add experiences to its registries. Adding experience-based gifts to the registry could be beneficial for the home retailer as consumer behavior continues to shift around the category. The brand director at Zola said that millennials, in particular, are spending more on their honeymoons.
Younger Consumer Want Brands Aligned with their Values
Younger consumers are increasingly seeking brands that are aligned with their values. A 2018 survey found that 52 percent of millennials and 48 percent of Gen Xers feel it's important that their values align with brands they like. For retailers and brands, focusing on sustainability is not only crucial to protect the environment, but is a key way to win over younger consumers and drive long-term brand loyalty.
UPS Hits Milestone In Drone Delivery
UPS has received the first broad federal approval for drone delivery. The shipping company applied for the Federal Aviation Administration's approval in July. The approval is a milestone in commercial drone delivery, with other companies like Amazon and Uber trying to add drones to their delivery fleet to cut costs and deliver goods faster. Wing is also planning to start trials of drone delivery with Walgreens and UPS rival, FedEx in Virginia this month. Unlike UPS’s broad certification, most test approvals are limited to small areas, with restrictions remaining about flights over densely populated areas.
The Federal Aviation Administration’s broad approval gives UPS the ability to fly at night and out of sight of the operator. The approval will also allow the drones to carry items over 55 pounds. UPS plans to start using the approval for package delivery to hospitals but could expand to other campus environments and even homes.
From the Simplr studios in San Francisco, this is your daily briefing.
Introduction
With your E-Commerce Retail Briefing for today, Thursday, October 3rd, 2019, I'm Vincent Phamvan.
Pop-ups have shifted into a useful retail strategy. Previously, most pop-ups were used as experiential marketing exploits, fashion-week stunts, or e-brands making their first leap to brick-and-mortar. Now major brands and retailers are using the short-term commitment of pop-ups to test locations or collections.
First, here are some retail headlines.
Gap Inc. Improving Logistics
Gap Inc. is working to improve their logistics as they prepare for Old Navy’s spin-off. In a company blog post, Gap. Inc. announced that its Banana Republic and Athleta brands are launching buy online, pick up in-store services. Customers will be able to pick up their orders within five days of purchase and will receive order updates by email or text. It’s a smart business tactic with more and more consumers utilizing buy online, pick up in-store services at other businesses. Target and Walmart lead the way and other retailers increasingly report it as an important element in their strategy.
Several Brands Testing New Instagram Feature
Adidas, Levi’s, Michael Kors, and Warby Parker are among some of the brands testing out a new Instagram feature. The new feature lets consumers set reminders for products when they’re available for purchase. Brands are able to show previews of products and let customers tap a digital sticker in an Instagram Story or launch tag in their feed to set a reminder. Users will then get a reminder 15 minutes before the product drops. The new feature could help brands drive direct sales after promoting products to dedicated followers.
Ads Delivered to Gen Zers Swaying Sales
Research from Snap and NCSolutions has revealed that while a majority of Gen Zers aren’t the primary purchasers in their households, delivering ads to them still sways sales. According to the research, 63 percent of sales were linked to Snapchat ads seen only by Gen Z users, but not seen by primary shoppers. The number then jumped by 12 percent when seen by the Gen Z user and the main buyer. According to Snap’s Marketing Science Group Lead, this is, quote, ”the first marketing research to show that Gen Z has a powerful, tangible influence on CPG purchasing as a direct result of being exposed to ads on Snapchat,” end quote.
Pop-Ups Earn Place In Retailer’s Strategy
Pop-up stores are becoming a popular retail strategy for small and big brands alike. Previously, most pop-ups were used as experiential marketing exploits, fashion-week stunts, or e-brands making their first leap to brick-and-mortar. Now brands like Amazon and Nordstrom are using pop-ups to test the viability of stores in certain markets.
Part of the appeal of a pop-up is that it poses little risk for retailers. Executives can commit to a shorter length of time and see how things perform. Retailers can test collections or locations on a smaller scale before jumping in all the way.
Even Lululemon has made pop-ups a part of their strategy. Their Executive Vice President said they had opened 60 seasonal stores in the past year. More than 35 percent of those shoppers were new and that the locations would inform the company’s choices on where to expand.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Wednesday, October 2nd, 2019, I'm Vincent Phamvan.
Amazon is reportedly moving forward with plans for its own U.S. grocery chain. The retail giant has been signing dozens of leases in the Los Angeles area and also has plans to open early outposts in Chicago and Philadelphia.
First, here are some retail headlines.
Tilly's Adds Executive VP and CMO
Tilly’s is adding 25-year Nordstrom veteran, Tricia Smith, on as executive VP and chief merchandising officer. In her new role at Tilly’s, she will oversee all aspects of the company’s merchandising operations, including buying and sourcing, and product development. Tilly’s CEO, Ed Thomas, said he was excited to have someone of Tricia’s extensive experience joining the company and that her track record of growth and leadership will bring great value to the company as they improve.
Dollar Shave Club Leading Pack of Subscription Box Services
The subscription box service is a competitive space, with well-known names like HelloFresh, Blue Apron, and BirchBox all gunning for market share. However, a new survey from Clutch reveals one may have risen to the top of the pack. Out of the 528 shoppers surveyed, a leading 29 percent are members of Dollar Shave Club. Cosmetics service, Ipsy, followed behind with 21 percent surveyed being members.
Poshmark Doubles Payout From Last Year
Popular resale site, Poshmark, has paid out more than $2 billion to its sellers this year, doubling the $1 billion milestone they hit just last year. The company now boasts more than 50 million users nationwide, including 7 million sellers in their community. The milestone is a reflection of the massive growth the secondhand market is seeing. The resale industry is expected to double in the next five years to hit $51 million.
Amazon Moving Forward With Grocery Chain
Earlier this year, Amazon was reportedly considering its own grocery chain. The retail giant had already entered the space by acquiring Whole Foods, but is now seemingly moving forward with its plans to open a separate chain of U.S. grocery stores. The Wall Street Journal reported that Amazon had signed more than a dozen leases in the Los Angeles area for that purpose. Amazon is also likely to plan early outposts in Chicago and Philadelphia. According to sources, these stores could open as early as the end of the year.
The move comes as Amazon is focusing its efforts on brick-and-mortar to reach more consumers. The company now has 16 Amazon Go stores, where customers can grab ready-to-eat food and make grocery purchases with checkout-free technology. The retail giant also has four Amazon four-star stores and 18 Amazon Bookstores. Amazon’s revenue from brick-and-mortar locations is small, but showing signs of growth. In the second quarter, Amazon saw its physical store sales rise 1 percent to $4.3 billion from the previous year.
While Amazon’s full scope of grocery store plans hasn’t been revealed yet, it’s evident they’re gearing up for something big.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Tuesday, October 1st, 2019, I'm Vincent Phamvan.
Dick’s Sporting Goods is shifting their focus. After hitting a sales slump, the retailer is now building out its private label brands and targeting the health-conscious woman to fuel new growth.
First, here are some retail headlines.
Foot Locker Invests in NTWRK
Foot Locker announced their investment in e-commerce and content platform, NTWRK. NTWRK has partnered with brands like Nike and New Balance and collaborated with several celebrities for product releases. Foot Locker and Live Nation led the investment round, with the Series A funding totaling $10 million. Foot Locker invested $3 million in the e-commerce platform. The investment indicates Foot Locker is looking to maintain its relevance among younger shoppers.
Startup Yerdle Raises $20 Million in Venture Capital Financing
As the resale market continues to grow, more brands are looking for their way into the industry. Startup Yerdle, which announced raising a $20 million round of venture capital financing last week, has created a white-label service that retailers like REI, Eileen Fisher, and Patagonia have used to build out their resale services that pull from their own inventory. Mark Cross, a luxury handbag company, also announced plans to launch its own resale platform later this year.
Walmart Potentially Selling JetBlack
According to a report from Bloomberg, Walmart has been talking with potential buyers for its concierge service, JetBlack. Walmart officially announced the text-based service a little over a year ago. Walmart’s openness to selling JetBlack not too long after its launch is a testament to the growing pains its online business is experiencing. A sale of JetBlack could also further cost-cutting initiatives Walmart is reportedly considering. The company is facing a $1 billion loss on its e-commerce operations and may sell some of its recently acquired brands.
Dick’s Sporting Goods Is Turning To Women To Fuel New Growth
After experiencing a sales slump in recent quarters, Dick’s Sporting Goods is focusing on their women’s selection to fuel new growth. However, the retailer is also competing with brands like Lululemon, Outdoor Voices, and Gap’s Athleta, all of which are targeting the same demographic.
Dick’s Sporting Goods women’s brand, Calia, launched nearly five years ago and is now one of the top two women’s apparel brands in stores based on sales. The sporting goods retailer also launched in-house brand, DSG, last month that includes an expanded women’s line. In their strategy shift, the retailer is leaning more heavily on its private label brands, which they expect to reach $2 billion in sales over time. For Dick’s Sporting Goods, Calia offers a good example of what they can accomplish. Within five years, they were able to scale the brand to all of the company’s stores and is now one of the retailer’s top brands. Some analysts are applauding the retailer’s efforts, noting that focusing on building private label brands gives the company an extra degree of control.
A Vice President of the company said that they’ve always had women in mind, but the past two years, the conversation has been about women being at the forefront. President Lauren Hobart said that women have complained in the past about the retailer having a lack of product selection for women. She said quote, “We’ve got our own private brands that we’re trying to use to address the issue ... and we’re doing everything we can to get the national brands to meet it,” end quote.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Monday, September 30, 2019, I'm Vincent Phamvan.
Best Buy is making moves into the health care space. The industry leaves a lot of room for disruption, with health care being a pain point for many customers. The company’s plan will include selling everything from fitness machines to health-monitoring services for seniors. The strategy could see Best Buy grab some of the $3.5 trillion market for health spending in the U.S.
First, here are some retail headlines.
Halloween Spending Estimated to be $8.8 Billion
Halloween spending is estimated to reach near-record highs this year. According to the National Retail Federation’s annual survey, this year’s total anticipated Halloween spend is $8.8 billion, the third-highest in the history of the survey. The shoppers surveyed said they plan to spend an average of $86.27 on Halloween costumes and decor this year.
McKinsey & Co. to Open Retail Store to Gather Data
Consulting firm, McKinsey & Co, is opening its first-ever retail store in the Mall of America. McKinsey plans to operate the store for at least a year, rotating a variety of brands and tech providers every few months to test what works with shoppers and what flops. McKinsey's brand won’t be evident in the store, but the company hopes it will gather data they can use to advise clients. The store will debut with jewelry from Kendra Scott and products from popular brand, ThirdLove.
Amazon Quietly Entering Health Care Space
Amazon is quietly entering the health care space. This month, Amazon launched Amazon.care, a new health care option for its Seattle-area employees. The program includes online doctor visits as well as in-home nurse visits. Employees can also use the program to deliver prescriptions to their homes and gives them access to chat with a nurse through its app. The move seems to be the company’s way of simplifying healthcare for employees, but it could be something bigger. Amazon hasn’t been quiet about its long-term interest in disrupting the health care space. However, changing the health care system isn’t an easy job for anyone, but the retail giant can use its employees to test options before potentially rolling something out to its customer base.
Best Buy Pushes Into Health Care Industry
Amazon isn’t the only company that sees potential in the health care industry. With a $3.5 trillion market up for grabs, Best Buy is beefing up its health care strategy. The plan includes selling a range of products from fitness machines to health-monitoring services for seniors. According to an analyst at Morgan Stanley, health care hasn’t evolved all that much over time and remains a pain point for customers. So it shouldn’t be a surprise that nontraditional players, including Best Buy, are entering the industry.
Walmart has also made moves into the health care industry, introducing medical clinics that offer primary-care services and mental-health counseling. Amazon also paid $753 million for PillPack to get into the pharmacy business. Best Buy’s strategy focuses more on the technology underpinning health care services. In the past year or so, Best Buy has spent upwards of $1 billion on acquisitions in the health space, including an $800 million purchase of GreatCall Inc, which sells emergency-response systems and mobile phones for seniors.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your "Retail and E-Commerce Briefing" for today, Friday, September 27, 2019, I'm Vincent Phamvan.
Allbirds co-CEO said they are looking into legal action against Amazon. His statements come on the heels of revelations that Amazon is selling shoes similar to one of their popular styles for half the price. He admits that in the business of fashion, copycats are something you come across. But given the size of Amazon, this situation is different.
First, here are some retail headlines.
Gap Inc. Announces New President and CEO of Athleta
Gap. Inc. announced that former Sephora executive, Mary Beth Laughton, was appointed as president and CEO of its Athleta brand. She is set to start the new position in late October. Laughton was most recently executive vice president of omni retail for Sephora and has previously served in leadership roles at Nike. She brings more than 20 years of experience with digital operations and e-commerce to her new role with Athleta.
Peloton Sets Price of IPO
Exercise bike and treadmill company, Peloton, has priced its initial public offering at $29 dollars. Peloton is offering 40 million Class A common stock to the public as part of its IPO. The company filed to go public in August, reporting $915 million in total revenue for the year, an increase of 110 percent from the prior fiscal year. Peloton is looking to raise $1.16 billion with a valuation of more than $8 billion.
Amazon Unveils new Alexa Devices
Amazon unveiled a variety of new Alexa powered devices on Wednesday. The new lineup includes a new Echo Dot with a built-in clock, Alexa powered earbuds, a high-end speaker, and a cheaper version of the Eero mesh WiFi system after acquiring Eero earlier this year. Amazon also showed the development of new Alexa capabilities like Amazon Guard, which turns some devices into security cameras. Getting Alexa in more places is key for Amazon’s broader strategy as competition from Google and others heats up. Amazon’s latest lineup comes after Facebook and Google have both recently refreshed their home device offerings.
Walmart's Allswell Brand Expands Into Bath Category
Walmart’s Allswell home brand has expanded into the bath category. Allswell’s announcement indicates that Walmart may be betting on its homegrown brands to build its e-commerce business, rather than ones they’ve recently acquired. In 2016, Walmart acquired Jet for $3 billion and soon after acquired women’s apparel site ModCloth and menswear brand Bonobos. However, the acquisitions may not be turning out as well as they hoped.
The company nixed the lead executive role at Jet in June and in July reportedly indicated they may sell ModCloth. Focusing on its homegrown brands in growing categories bodes well for the retail giant. Between 2013 and 2018, the home goods market in brick-and-mortar and online grew 20.9 percent and 88.7 percent.
For the company, expanding beyond mattresses could also be essential to standing out as the market gets more saturated. Other direct to consumer brands have utilized the same strategy. Casper has expanded into other categories like dog beds, night lights, and recently CBD. Allbirds and Away have also entered other categories beyond those they originally launched in.
Allbirds Looking Into Legal Action Against Amazon
Allbirds co-CEO, Joey Zwillinger, said that the sneaker company is looking into legal action against Amazon. His comment comes after revelations that the e-commerce giant is selling a shoe with striking similarities to Allbirds’ popular sneakers called the Wool Runners. Amazon’s shoe is being sold for $45 dollars, Allbirds’ signature shoe costs $95 dollars.
Allbirds, which started selling shoes in 2016 and was recently valued at $1.4 billion, isn’t a stranger to lookalike shoes. Zwillinger said there are probably a couple dozen copycats. He said the rate at which lookalike shoes appear is startling and that quote, “It’s part of the business of fashion, as I’ve come to learn,” end quote. However, given the size and omnipresent influence of Amazon, Zwillinger said this situation is different.
Zwillinger admits its risky territory. While they’re a team of 500 people total, he suspects Amazon has double that in just lawyers. But, Zwillinger said they are, “...looking at it. We look carefully every time this happens,”.
Closing
Thanks for listening to the latest episode of the "Retail and E-Commerce Briefing". Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Thursday, September 26, 2019, I'm Vincent Phamvan.
Ascena Retail Group is facing more trouble after poor performance of almost all its brands. According to Bloomberg, the company is in discussions to sell its plus brands Lane Bryant and Catherine’s. A sale would mean a huge cut to Ascena’s empire, which currently has over 3,500 stores and would counteract a string of acquisitions made since 2015.
First, here are some retail headlines.
Overstock Names CEO
Jonathan Johnson has formally been named Overstock’s CEO after taking on the role on an interim basis last month. Allison Abraham, Chairwoman of Overstock’s Board of Directors, believes Johnson is the best choice to lead the company. She said, “He has the right experience in both our retail and blockchain businesses, and the Board has confidence in his ability to deliver value to our shareholders,”.
Marshalls Unveils New E-Commerce Website
Marshalls has unveiled its new e-commerce website. The online and mobile site is the off-price retailer’s official entry into e-commerce. Marshalls’ online selection will feature similar categories to its brick-and-mortar locations, including apparel, home, accessories, and beauty, but the specific product assortment will be unique to the online site. The new website offers interactive features like swipe to shop, a mobile feature that allows customers to view and sort products by swiping left or right to buy or save them for later. The site will also feature curated shops that will be refreshed frequently.
Ikea Debuting New Store Concept in NYC
Ikea will debut a new store concept in New York. The popular home furnishing company has plans to open a 115,000 square foot store in Queens in 2020. It will be the first Ikea to open in the U.S. with a new format and layout to support a seamless omnichannel experience for customers. The new Queens site will offer a range of services including home delivery, assembly, and installation.
After Poor Performance, Ascena Considers Selling Lane Bryant, Catherine’s
According to Bloomberg, Ascena Retail Group is in discussions to sell its plus size women’s apparel brands, Catherines and Lane Bryant. The news comes as the company makes drastic changes to right-size its operations in the midst of poor performance at almost all its brands. Ascena is already in the process of shuttering Dress Barn after failing to find a buyer. Selling Lany Bryant and Catherine’s would mean a significant cut for Ascena, which currently has around 3,500 stores and would reverse a string of acquisitions that culminated with the purchase of Ann Taylor and its Loft chain in 2015.
Consumer demand for inclusive sizing has seen dedicated specialty stores for plus or petite sizes fall out of favor. Lane Bryant, which once had a strong following, reflects this trend in its results. The company’s comps combined with Catherine’s fell 3 percent in the most recent quarter. Net sales fell to $311.5 million from $312.8 million last year. While the plus-size brands are facing trouble, it’s still an underserved market. Some analysts believe the plus brands would do well if integrated with the company’s premium Ann Taylor or Loft brands.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Wednesday, September 25, 2019, I'm Vincent Phamvan.
Amazon’s CEO announced plans to reach the goals of the Paris climate agreement ten years early in what he referred to as the Climate Pledge. The pledge maps out the company’s plan to tackle climate change in the coming years. The company has already agreed to purchase 100,000 electric vans along with promising to regularly measure and report the company’s emissions.
First, here are some retail headlines.
Postmates Raising Another $225 Million
Popular food-delivery service, Postmates, confirmed raising another $225 million. The new round of funding now puts its valuation at $2.4 billion. The latest round comes ahead of their imminent IPO. According to sources familiar with the company, Postmates plans to publicly unveil its IPO prospectus this month.
Bed, Bath & Beyond Launching Second-ever Private Label Brand
Bed, Bath & Beyond announced they’re launching their second-ever private label brand. The new line leverages the popularity of digitally native brand, One Kings Lane, which was acquired by Bed Bath & Beyond in 2016. The new brand, One Kings Lane Open House, will be available online at both Bed Bath & Beyond and One Kings Lane.
Madison Reed to Franchise Color Bars
According to a press release, hair color brand Madison Reed plans to franchise its Color Bars through a joint venture with Franworth. A spokesperson from the company said the retailer plans to have 600 stores either sold or open by 2024. Madison Reed joins the list of direct to consumer brands who have turned to brick-and-mortar for continued growth. Last year, Casper made a similar announcement with plans to open 200 stores across North America by 2021.
Amazon Makes Climate Change Pledge
Jeff Bezos, CEO of retail giant Amazon, announced plans to tackle climate change. In what he referred to as the Climate Pledge, Amazon plans to meet the goals of the Paris climate agreement 10 years early. Bezos promised Amazon would measure and report the company’s emissions on a regular basis, along with implementing decarbonization strategies and altering its business strategies to offset remaining emissions. During the announcement, Bezos said he expects 80 percent of Amazon’s energy use to come from renewable sources by 2024 before transitioning to zero emissions by 2030. Amazon revealed they agreed to purchase 100,000 electric vans from manufacturer Rivian. Bezos said he expects the first vans to be on the road by 2021 and all 100,000 to be deployed by 2024. The company also announced a $100 million donation to The Nature Conservancy to form the Right Now Climate Fund which will work to protect and restore forests around the world.
The plan calls for other companies to join Amazon in fighting climate change. At the National Press Club in Washington, Bezos said quote, “we want to use our scale and scope to lead the way,” end quote. Amazon will be working with companies in its supply chain to help them reach the same goals and will also meet with large corporations to get them to sign onto the agreement.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Tuesday, September 24, 2019, I'm Vincent Phamvan.
The clothing rental industry has seen a lot of growth as consumers seek sustainable and affordable options. Traditional retail sales may take a hit as clothing rental services gain steam.
First, here are some retail headlines.
Sephora Tops Sailthru's Retail Personalization Index
Sephora topped Sailthru’s annual Retail Personalization Index for the third consecutive year. According to a survey, Sephora earned high marks for their mobile and email customization. The RPI ranking indicates that Sephora is the brand to emulate when it comes to personalizing the user experience, especially on mobile. Nordstrom ranked second on the list, seeing an improvement in its mobile score versus last year. Urban Outfitters and The Home Depot were also among the top performers.
Macy's Piloting Same-Day Delivery
Last week, Macy’s announced they would be piloting free same-day delivery in select markets. They also revealed that free same-day delivery on orders over $75 would be available in 30 markets by October 1st. Macy’s will be partnering with Deliv to fulfill same-day orders. They didn’t say when the pilot would end, but Andrew Lipsman, an e-commerce analyst for eMarketer, sees it as a temporary play to win over holiday shoppers.
Trigo Raises $22 million in Series A Funding
Computer vision startup, Trigo, has raised $22 million in a Series A funding. The company uses a series a cameras throughout a store to monitor shoppers and their baskets, similar to Amazon Go. The startup wants to connect with grocery retailers that have watched Amazon Go’s development and want to implement AI without getting involved with Amazon. The company also has plans to implement their technology in 280 stores in the next five years.
Clothing Rental Takes Aim At Traditional Apparel Sales
Clothing rental services are a growing trend, which may affect traditional retail sales. Brands like New York & Company, Bloomingdale’s, and Banana Republic are offering to rent their clothing for a monthly rate. Even H&M, with almost 5,000 stores globally, announced in August they were launching their own rental service.
While most services are online, some brands are creating physical spaces for people to drop off, pick up, or browse available clothing. Fashion rental service Le Tote bought the operations of Lord + Taylor stores. In the next nine months, it plans to build drop-off lockers and display areas in 38 Lord + Taylor department stores. Rent the Runway has also expanded its physical presence with partnerships with WeWork and Nordstrom.
The risk for retailers is that rental services could take spend away from more traditional sales. Changing shopping habits and falling prices have nearly halved the spend on apparel by the average U.S. consumer over the past 30 years. In 2018, In addition, the U.S. apparel rental market was worth $1 billion in 2018, less than 1 percent of total apparel market. But, it grew 24 percent in that year compared to 5 percent for the wider clothing market.
Though clothing rental seems to be well liked among consumers, it comes with risks, so it remains to be seen if rentals will chip away at traditional retail sales over the longer term.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
On this Weekend Edition of the "E-Commerce Retail Briefing" from Simplr, host Vincent Phamvan sits down with Mason Levey and Brad Warsh, co-founders of Wave Meditation. Wave is a really innovative at-home meditation product and content subscription that offers a new approach to the practice.
LINKS
WAVE Mediation - https://WaveMeditation.com
WAVE on SoundCloud: https://soundcloud.com/wave-meditation
From the Simplr studios in San Francisco, this is your weekly briefing.
Opening
With your E-Commerce Retail Briefing for today, Friday, September 20, 2019, I'm Vincent Phamvan.
A new survey revealed that Gen Z’s worries about mental and emotional well being affects their shopping habits. An overwhelming amount of those surveyed said they preferred making purchases and discovering new products in stores. They also said turning to brick-and-mortar was a way they disconnected from the digital world.
First, here are some retail headlines.
Amazon Rolling Out Amazon PayCode
Retail giant, Amazon, announced they would be rolling out Amazon PayCode in the U.S. in the coming weeks. The new checkout option will allow customers to pay for their Amazon orders at one of 15,000 Western Union locations. Instead of using their bank card, customers can choose the PayCode option to receive a QR code they can take to a Western Union location and pay for their order.
Sally Beauty Launches Credit Card Program
Sally Beauty Holdings announced they were launching a private label credit card program for Sally Beauty Supply through an agreement with Alliance Data. According to a press release, the credit card program is expected to pilot in select stores in 2020, followed by a national rollout for stores and e-commerce. Sally Beauty will be adding on the credit card program to its existing Sally Beauty Rewards Loyalty Program, which has over 15 million active members.
Fanatics Hires CFO
Nike’s former corporate audit and chief risk officer, Michener Chandlee, is joining Fanatics as their CFO. He’s joining the Fanatics team as the company is targeting sales of more than $2.5 billion this year, up from $2.2 billion in 2018. Chandlee had been with Nike since 2001 and is well versed in the sports apparel industry. Fanatics CEO, Doug Mack, said that gives him the ideal skill set and experience to lead their finance organization as they continue to scale.
Annual Holiday Retail Sales Expected to Grow
According to an annual holiday retail forecast, retail sales are expected to boost between 4.5 and 5 percent in 2019. Between November and January, holiday sales are expected to exceed $1.1 trillion. The report also notes that e-commerce sales are forecasted to grow 14 to 18 percent to between $144 and $149 billion over the period, up from 11.2 percent growth in 2018.
Gen Z May Be A Surprising Saving Grace For Brick-and-Mortar Stores
According to a report from A.T. Kearney, Gen Z shoppers may be a surprising saving grace for brick-and-mortar stores. The report revealed that consumers between the ages of fourteen and twenty-four prefer to do their shopping in stores. 81 percent of Gen Z consumers surveyed said they prefer to make purchases in stores and 73 percent said they like to discover new products in stores. Those surveyed revealed that the Gen Z demographic overwhelmingly looks to brick-and-mortar stores as a way to disconnect from the digital world.
The data uncovered that Gen Z deals with a lot of stress, with 23 percent saying they were stressed out or overwhelmed by the news and 22 percent reported being stressed by social media. Because of this, Gen Z tends to make more health and wellness related purchasing decisions than other generations. 46 percent of Gen Z said they were concerned about their mental health and wellbeing compared to 38 percent of millennials.
The report sheds light on the first full generation of digital natives and the importance of the experience retailers provide both online and offline.
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Opening
With your E-Commerce Retail Briefing for today, Thursday, September 19, 2019, I'm Vincent Phamvan.
TikTok’s rise to the scene has been a hot topic. The platform’s younger demographic and lack of ad clutter could be the perfect advertising solution for brands ahead of the holidays.
First, here are some retail headlines.
Shopify Allowing Hemp and Hemp-Derived CBD Products
With the CBD market expected to be a $22 billion industry by 2022, the third largest U.S. ecommerce platform is now providing opportunities for CBD merchants. Shopify announced they now allow hemp and hemp-derived CBD products to be sold on its platform. According to a press release, Shopify is rolling out new features that will help merchants sell hemp and hemp-derived CBD products online and in physical stores where it’s legally allowed. A statement from the COO said that Shopify has unmatched experience in emerging industries, and has the resources to assist merchants with their success in the fast growing CBD market.
Casper Selling CBD Gummies
Mattress startup, Casper, is launching a new line of CBD gummies to help people sleep. The new product comes after Casper partnered with Plus. The CBD gummies are called PLUS sleep and contain twenty-five milligrams of CBD and one milligram of melatonin. Philip Krim, the mattress startups co-founder and CEO, said quote “We think this is a clear step forward to help the world sleep better. We’re really proud of this partnership,” end quote.
Walmart Bringing Back "Scoop" Brand
In a blog post, Walmart announced they were bringing the Scoop brand back as a private apparel line. According to Walmart’s e-commerce head of fashion, the brand has its name on more than 100 products with prices ranging from $15 dollars to $65 dollars. Scoop branded items are currently available online and will be found in Walmart stores early next year.
TikTok Provides Promising Opportunity For Retailers
TikTok is a rising social media platform that could be key for retailers as they try to reach younger audiences ahead of the holidays. TikTok popped up on the scene fairly quickly, garnering more than one billion app downloads worldwide in the first seven months after its debut. The platform was able to leverage young consumer’s interest with mobile video by making it easy for them to craft their own videos with user friendly tools. Though still fairly new and untested, the new platform holds a lot of promise for marketers. Major brands like RalphLauren, Uniqlo, and the NFL have all recently jumped on board to test TikTok’s ads. Even retailer, American Eagle, just launched their first TikTok campaign to reach teens through a hashtag challenge, brand takeover, and beta test of a video ad that directs users to an external site to make a purchase. While it’s still too early to pinpoint the exact size of TikTok’s opportunity, it’s clear that marketers are interested.
Part of the appeal for marketers is since the platform is still establishing itself, it hasn’t been overrun with marketing messages. Lack of competition for user attention helped watchmaker Larsson and Jennings generate 1.8 million views last summer. With different creative ad formats and the platform continuing to work on functionality as they establish themselves as a top choice for social advertising, TikTok could be the perfect solution for brands who want to create awareness with a younger demographic before the holidays.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Monday Wednesday, September 18, 2019, I'm Vincent Phamvan.
Millennials have become infamous for the industries they’re putting out of business, but what about the industries that are thriving? With one of the largest generations in history entering their prime spending years, many industries are finding opportunities to appeal to the demographic.
First, here are some retail headlines.
Starbucks Announce New Board Members
Starbucks announced adding Domino’s CEO, Nike’s CFO, and Apple’s Managing Director of Greater China to its board. In a statement, Starbucks CEO and President said quote, “their expertise across global technology, retail and customer experience at scale will accelerate our drive to innovate in a way that’s relevant to our customers and inspiring to our partners,” end quote.
Shape Security Raises $51 Million in Series F Funding
Shape Security has raised $51 million in Series F funding, officially making it a unicorn. The anti-fraud startup, valued now at just over $1 billion, has raised a total of $183 million since the company began in 2011. Shape Security’s chief executive said the new $51 million investment would go toward the company’s international expansion and product development. He also announced the company was preparing to file for an IPO.
MoviePass has Stopped Operating
Film ticket app, MoviePass, has officially stopped operating. The app, which once had millions of subscribers, experienced a series of setbacks that makes this abrupt ending not altogether surprising. The most recent issue took place in August, when TechCrunch reported that MoviePass subscriber’s debit card numbers and other sensitive information had been exposed. They also began to raise prices during popular movie times and even re-enrolled subscribers in new services without their permission. In a statement, Helios and Matheson Analytics said they were considering selling the company, getting rid of individual assets, or possibly reorganizing.
The Millennial Demographic Provides Major Opportunity to a Range of Industries
Media coverage often covers the industries millennials are killing, but what about the ones that are thriving? Millennials are one of the largest generations in history and they’re about to enter their prime spending years. Generation Y is set to receive $30 trillion in wealth from baby boomers and Gen X. That transfer of wealth is already producing change across a variety of industries. Those that come out on top will have to shift around the millennial market demographic, which shows a trend of preferring sustainability, affordability, and flexibility in products and services.
Camping is an industry that is thriving with the millennial market. Wholesale camping equipment sales rose $2.5 billion in 2018, compared to the less than $2 billion in 2013. And in 2018, a record high of almost 80 million American households went camping. Fitness is another industry that’s thriving, with millennials dropping $7 billion annually. While there’s a lot of opportunity and spending money ready for the taking in the millennial demographic, companies will need to continue innovating and embracing new technology to adapt to the changing landscape.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Monday Tuesday, September 17, 2019, I'm Vincent Phamvan.
With the resale industry exploding, some major players are rising to the top. Poshmark, ThredUp, TheRealReal have established themselves as some of the top companies in the market. Poshmark claims to be the number one fashion buying and selling platform, but is their heavy lifting benefitting its competitors?
First, here are some retail headlines.
Verishop Rolling Out Free One-Day Shipping
New e-commerce platform, Verishop, is keeping stride with major retailers by rolling out free, one-day shipping. The company’s new shipping offer doesn’t require a membership fee or minimum purchase amount. After announcing the news, Verishop’s CEO said he believes fast and free shipping is critical in e-commerce strategies as consumer demand grows. He didn’t offer any specifics on how the three month old company logistically managed to roll out free one-day shipping nationwide, but did say Verishop partnered with both FedEx and UPS.
Whole Foods Cutting Health Benefits for Some Part-Time Employees
Starting January 1st, Amazon-owned Whole Foods will be cutting health benefits for up to 1,900 of its part-time workers. Previously, employees only had to work 20 hours a week to be eligible for health care benefits, but Whole Foods announced employees will now have to work 30 hours to be eligible. A company spokesperson said the change is part of better meeting the needs of the business and creating a more efficient scheduling model. The company also announced that current Team Members who would be affected were being provided with resources to find alternative coverage, or letting them explore health care eligible positions starting at 30 hours a week.
Madewell Filing for an IPO
J. Crew’s sub-brand, Madewell, is filing for an IPO. According to the document, Madewell will split from J. Crew as part of its IPO. Details like price range and number of shares have yet to be determined, but according to a press release, proceeds from the IPO will be used to quote, “pay off indebtedness and for general corporate purposes,” end quote.
Poshmark’s Strategies May Benefit Competitors ThredUp and TheRealReal
Could Poshmark be helping competing resale companies like The RealReal and ThredUp? The resale industry is exploding, with current projections of the secondhand fashion market hitting $51 billion by 2023 according to ThredUp. The resale segment is also expected to account for 45 percent of secondhand apparel market sales at $23 billion, growing from 25 percent of the total $28 billion in 2019. The current leaders in the industry are TheRealReal, ThredUP, and Poshmark.
Industry experts have agreed that one of the most critical components of attracting new customers to the resale market is building awareness of the potential of resale platforms like The RealReal, ThredUp, and Poshmark. ThredUp has recently made a move into brick-and-mortar by partnering with Macy’s and J.C. Penneys, gaining credibility with customers who first experience the company at those locations. TheRealReal also operates their own store locations to make potential customers less wary of purchasing their high-end, luxury items. All three companies have also turned to television to create brand awareness. Poshmark is the leader, running 14,872 spots in the last thirty days, significantly more than ThredUp and The RealReal who have run under 3,000 spots.
Though Poshmark claims to be the number one fashion buying and selling platform, boasting 50 million sellers, the company’s heavy lifting could actually be beneficial to ThredUp and The RealReal. Poshmark runs on a peer-to-peer business model, where users do more work on the back end to make a sale. After a few times of putting in the work, users who want to stay in the resale game may turn to frictionless and more convenient alternatives like The RealReal and ThredUp. So while Poshmark may open the door for customers to try online resale, ThredUp and TheRealReal have more potential to keep them around for the long haul.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Monday, September 16, 2019, I'm Vincent Phamvan.
Apple’s new streaming service could pose a threat to rivals. A former Netflix and Hulu executive said he thinks Apple’s unique marketing advantages and low price point could make Apple TV+ a competitor right away.
First, here are some retail headlines.
Neighborhood Goods Raises $11 Million in Funding
Direct-to-consumer department store, Neighborhood Goods, has raised $11 million in a new funding round led by Global Founders Capital. The Dallas-based concept store has raised $25.5 million to date and has plans to open new store locations in Austin and New York. The store concept provides a brick-and-mortar outlet for online companies and carries brands like Dollar Shave Club, Draper James, and Stadium Goods. Neighborhood Goods is also experimenting with features like online browsing of in-store selections.
JCPenney Launching New Line of Outerwear for Men
In a press release, JCPenney announced they would be launching a new line of outerwear for men. The line will be launched through their private-label brand, St. John’s Bay. According to the release, JCPenney will roll out the new line in 600 of its store locations and will include a selection of shirts, jackets, vests, sweaters, and more.
Walmart Expanding Grocery Delivery Service
After piloting Delivery Unlimited earlier this year, Walmart will now be expanding its grocery delivery service to 1,400 more stores this fall. Walmart said the program would become available to more than half the country by the end of the year and be available at 1,600 of their store locations. In a press release, Walmart revealed the expansion of the program comes after receiving positive customer response. The membership will remain $98 dollars a year or $12.95 for a monthly subscription. Walmart has led in grocery pick-up, but the new grocery delivery functionality is a major step toward keeping up with Amazon and other grocers who have introduced their own delivery plans.
Victoria's Secret May Be Gearing Up for Change
L Brands Victoria’s Secret may be gearing up for change. Brand chief, John Mehas, unveiled a new direction for the brand’s merchandise and stores. The changes address the consumer’s shift to prettier styles and move away from what the lingerie brand has typically been known for. He also revealed they would be partnering with third-party brands to help it cross that bridge. In a statement, he said he sees this as an opportunity to, quote, “take a step back and reinvigorate the brand,” end quote. While Victoria’s Secret is still a leader in lingerie with $4 billion in global sales, the company has struggled to keep up with consumer trends and its growth is slipping.
While Victoria’s Secret is in the process of shifting gears in the midst of struggles, L Brands Bath and Body Works is continuing to see runaway success. While the company has resisted splitting the companies in the past, executives still haven’t ruled it out. MKM Partners Managing Director said while probably not the preferred route, the board is likely weighing a spinoff of Bath and Body Works, dependent on a combination of trigger stock price and confidence in Victoria’s Secret recovery during the next few quarters.
Apple Joins The Growing Streaming War
Apple is pushing full steam ahead into an increasingly crowded streaming space and former Netflix and Hulu executive, Simon Gallagher, believes Apple’s streaming service will be able to compete with rivals right away. Apple TV+’s will debut with nine original series that will include star names like Jennifer Aniston, Steve Carell, and Oprah Winfrey. While the streaming service will be a low $4.99 a month, some believe people won’t pay for such a slim selection if they already subscribe to a competing service like Netflix or Hulu. However, Gallagher believes it only takes a couple shows to encourage users to maintain their subscription and that Apple will be able to with their current lineup. In a push to promote their streaming service, Apple has offered one free year to anyone who purchases a new iPhone, iPad, Mac, or Apple TV.
A lot of new contenders are joining the streaming arena. Disney, WarnerMedia, and NBCUniversal are also poised to launch their own streaming services. Disney’s service will launch two weeks after Apple’s at $6.99 a month. Apple’s aggressively priced monthly subscription is just one of the advantages it has of gaining users. There are 1.4 billion Apple devices in use around the world that would give it built-in consistency greater than Amazon which has 100 million Prime subscribers. Apple’s brick-and-mortar locations also garner a lot of foot traffic that will give them a marketing advantage many of the other streaming services don’t have.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
From the Simplr studios in San Francisco, this is your weekly briefing.
Introduction
With your E-Commerce Retail Briefing for today, Friday the 13th… September 13, 2019, I'm Vincent Phamvan.
Retail giant, Amazon, has faced scrutiny over the years after experiencing accelerated growth. Now the FTC is reportedly investigating the company over antitrust concerns. A team is conducting interviews of marketplace sellers to discover any practices that violate the antitrust laws and identify markets the retailer dominates.
First, here are some retail headlines.
Highsnobiety Launches Global E-Commerce Platform
Online publisher and media brand, Highsnobiety, has launched its first global e-commerce platform. Partnering with commercetools, the media brand now has a way to connect their audience with the products they’re reading about on their different platforms. According to their VP of Strategy and Operations, this gives them a strong back end to help continue scaling their business.
Strong Roots Receives $18.3 Million in Funding
Frozen vegetarian food company, Strong Roots, announced receiving $18.3 million in funding. The new funds came from private equity firm, Goode Partners, who has previously invested in companies like AllSaints and La Colombe. Strong Roots plans to use the funding to not only expand in the U.S., but to support their development efforts in providing functional food and nutrients. The company is on track to move $50 million in frozen food this year and to quadruple their sales over the next four years.
Stripe Launches Corporate Credit Card
Digital payments company, Stripe, is continuing to push further into the financial services market. This week, the company announced they were launching a corporate credit card. The announcement comes shortly after rolling out a new lending product on its platform. According to Stripe, the new credit card is for the digital companies who are ignored by traditional banks and cuts the time needed to apply. The move is their latest strategy to bring in more small businesses and startups.
Amazon Faces Antitrust Scrutiny
A team from the Federal Trade Commision is reportedly interviewing sellers using Amazon’s platform. The probe is meant to determine whether or not Amazon is violating antitrust laws by leveraging their market power. The investigation is the latest scrutiny over Amazon’s business practices as they’ve seen accelerated growth and expanded into more lines of business. In a report from Bloomberg, they claimed the Federal Trade Commision was in the early stages of a sweeping investigation exploring Amazon’s business practices that may violate laws and identifying markets dominated by the giant. Amazon has recently faced accusations that the data they collect from their marketplace gives them an unfair advantage over competing retailers. The European Union is also investigating how Amazon uses sensitive information from third-party sales on their site.
Bloomberg also reported in August that Amazon has penalized sellers who offer lower prices on competing websites, a practice that could draw antitrust scrutiny. The group Retail Industry Leaders Association alleged that sellers don’t have viable options beyond Amazon and consumers may not understand who they’re buying from. Neither the FTC or Amazon have publicly acknowledged the investigation.
Closing
Thanks for listening to the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai. Until next time.
Introduction
From the Simplr studios in San Francisco, this is your weekly briefing.
With the latest retail and e-commerce trends, I’m Vincent Phamvan.
Popular travel company, Away, will not be selling their products on Amazon any time soon. At the 2019 Code Commerce Conference in New York, co-founders Jen Rubio and Steph Corey revealed that Amazon has contacted them several times about selling on their marketplace. Current search results for Away luggage on Amazon pull up Amazon recommended products, but Rubio said those who buy that product are not their target audience.
More after these retail headlines.
Syte Raises $21.5 million in Funding
Visual AI technology company, Syte, announced they raised $21.5 million in funding. The new investment brings the company’s total funding to $30 million. Syte announced they plan to use the funding to grow their global reach. Visual search is one of the top retail trends of 2019, with retailers like Walmart and Target enlisting the help of Pinterest and Hayneedle for similar technology. The new funding indicates Syte is positioning itself as one of the go-to startups for AI-enhanced visual search, with plans to quadruple their user base in 2020.
Shopify to Pass Ebay as Second Largest E-Commerce Platform
Shopify is expected to surpass eBay this year and become the second largest e-commerce platform in the U.S., trailing only Amazon in terms of sales volume generated by merchants. The company is also estimated to have more than 1 million merchants using the platform by the end of the year. Its $40 billion valuation has already surpassed eBay, which is valued at $34 billion. The estimates are based on Shopify’s continued growth, which has pushed its stock to more than double this year.
Nordstrom's Small Format Locations to Accept Rival Returns
Nordstrom’s latest small format locations opening in Manhattan this month will accept returns from rival companies like Macy’s and Kohl’s. The move comes as the retailer makes its big push into New York with smaller Nordstrom Local stores focused on providing services. The strategy isn’t unheard of, with Kohl’s accepting Amazon returns nationwide since July, but it’s a creative new approach for Nordstrom. Their new Local locations will also offer services like shoe repair and stroller cleanings in an effort to increase engagement and convince consumers they’re a better alternative.
Away Won’t Sell on Amazon Any Time Soon
Away was founded in 2015 and sold a single hard-shell luggage case that had an ejectable phone charger. They have since expanded to sell a wide variety of travel accessories. They’ve opened seven brick-and-mortar stores and have their own media publication, Here Magazine. It also now has a $1.4 billion valuation. While you can expect them to continue to expand into wellness products and apparel, in addition to their luggage and travel accessories, the co-founders revealed you wouldn’t find their products on Amazon.
At the 2019 Code Commerce Conference, luggage brand startup, Away, said they would not be selling their products on Amazon any time soon. Co-founders Jen Rubio and Steph Corey admitted the retail giant has contacted them several times asking if they’d like to sell their products on their marketplace. The search results for Away luggage on Amazon pull up an Amazon recommended product, and Rubio said that some people would buy that product, but those who do are not their target audience. The luxury luggage company revealed at the conference that they have bigger ambitions. Rubio said , “I think, really, what we’re trying to build is a long-lasting, beloved consumer brand,”
Closing
.Thanks for joining us on the latest episode of the E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai.
Until next time.
Introduction From the Simplr studios in San Francisco, this is your weekly briefing.
With the latest retail and e-commerce trends, I’m Vincent Phamvan.
Etsy’s recent strategy changes have sellers feeling the pressure to compete with Amazon. Following an announcement that the platform would be encouraging sellers to introduce free shipping on orders over $35, users on Etsy are worried the company has lost sight of its original focus.
More after these retail headlines.
Shopify Acquires 6 River Systems Shopify has acquired warehouse automation and management technology developer, 6 River Systems. The $450 million acquisition is another step the e-commerce platform is taking to step up their sales supply chain. Through the acquisition, Shopify will now have access to the robotics expert that helped Amazon develop their own robotics business while they were at Kiva Systems. In a statement, Shopify’s CEO said that 6 River Systems will help them bring the best technology and operational efficiencies to companies around the world.
Walmart No Longer Focusing on Buying Private Brands At the 2019 Code Conference, Walmart’s CEO of e-commerce said they would no longer be focused on buying private brands. The retailer has been in competition with Amazon and is set to lose $1 billion this year as a result. Marc Lore announced they would now look to build their own digital first brands instead of looking to acquire e-commerce companies. Lore thinks his company can create new concepts and bring them to both Walmart.com and Walmart’s network of thousands of retail outlets.
Lululemon Aims to Quadruple Sales Outside of U.S. In April, Lululemon set an aggressive five-year goal to quadruple its sales made outside of the U.S. The company is projecting they’ll open between 40 to 50 stores in Europe and Asia this year. They’re also taking a different approach through hosting localized events and creating customized e-commerce sites for each country it wants to gain market share. Lululemon isn’t the only retailer to take this hands-on approach, so have its competitors Nike and adidas. The strategy seems to indicate a shift from how vertically-integrated apparel retailers have traditionally treated their international business.
Etsy's Strategy Changes Pressuring Sellers Created to be a space for unique handmade and vintage items, Etsy is now asking its sellers to compete with Amazon. The company announced in July that it would be encouraging its sellers to offer free shipping on orders over $35. Sellers who didn’t offer free shipping would be deprioritized. With Amazon increasing consumer demand for fast and free shipping, it makes sense that Etsy would offer something similar to gain customers. However, many of the sellers on the Etsy platform feel it’s lost sight of its original purpose.
When Etsy first started, they focused on giving artists with handcrafted goods the focus. Now some sellers feel like the platform is being taken over by the same mass-produced selection you can find everywhere. But, Etsy still provides the best alternative to no options at all for handmade goods sellers. Jenny Topolski, who used Etsy to build her business and community perhaps said it best. “It’s just a place to sell now. I still think the company is more ethical than a lot of big companies. I don’t feel particularly mushy feelings toward them...it’s kind of just business. Whereas I used to feel a lot more,”
Closing Thanks for joining us on the latest E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai.
Until next time.
The retail industry is predicted to be valued at over $6 trillion by 2023. According to a report from Business Insider, mobile purchases make up the majority of the industry growth. More after this.
Starbucks to Open Mobile App Order Pick-up Only Store Starbucks now has plans to open a store in New York exclusively for mobile app order pick ups. The announcement comes after the company experienced success with their Starbucks Now concept store in China that allowed customers to place mobile orders and pick up their coffee in specialty express shops without the wait. Starbucks could eventually roll out similar stores in locations like Chicago and San Francisco. Starbucks CEO also said that the new concept stores weren’t meant to replace typical Starbucks cafes, but to blend them into urban areas where there are a lot of cafes for customers.
Glossier Getting New COO Former Amazon exec, Melissa Eamer, is joining the Glossier team as COO. According to the company, Eamer will be responsible for overseeing the growth-driving parts of the business. Glossier CEO and founder, Emily Weiss, said Eamer will be key in helping them build “not just a brand, but a company”.
Target Launching New Loyalty Program Target announced they’re launching a new loyalty program, Target Circle. Customers won’t have to pay any membership fees to join and participants will earn 1 percent back on every purchase in addition to receiving personalized deals and early access to offers. The membership program will officially launch on October 6th.
Expected Growth in Retail Industry The retail industry is expected to grow by over $200 billion in 2019 and be worth $6.4 trillion by 2023, according to a report from Business Insider. While in-store retail purchases still make up the majority of the growth, e-commerce is growing 5 times faster than in-store retail. According to the report, mobile commerce is driving the growth and will soon account for nearly 40 percent of e-commerce sales.
Consumers are reported to spend an average of over 2 hours accessing the internet from the phone with the majority of that time being spent in apps. 70 percent of mobile purchases are made through apps, with consumers saying apps save them more money and time. The report reveals the increasing importance for retailers and their mobile strategy. Other companies have seen results after making improvements to their mobile experience. Pier 1 Imports worked to decrease its mobile home page load times and saw a 107 percent increase in mobile revenue per visit over the three months of the redesign and a 93 percent jump in smartphone conversion rate. Other mobile experiences like augmented reality have proved effective for retailers, with one third of shoppers being more likely to purchase an item after previewing it with AR.
Thanks for joining us on the latest E-Commerce Retail Briefing. Don't forget, Simplr can help you scale up your customer service with 24/7 support. Find out more at Simplr.ai.
Until next time.
Retailers have felt the strain from Amazon for years, but that competition is finally stretching into the shipping industry. The retail giant is continuing to build out its own delivery service as the demand for faster shipping grows. FedEx and UPS are both making strategy changes in the face of growing competition from Amazon.
First, here are some retail headlines.
Mobile Shopping App Mavely Launches After operating in beta since April, mobile shopping app, Mavely, officially launched last week. The app aims to reward users for purchasing and recommending products from more than 100 brands. CEO Evan Wray said the company is already seeing a buy conversion rate of up to 12 percent on products and anticipates having 30,000 users by the end of the year. According to Wray, Mavely is becoming a competitive alternative to costly social advertising and provides marketers with an efficient way of acquiring customers at half the cost of Facebook ads.
M.M. LaFleur Opening Concept Store Apparel company M.M. LaFleur is opening its first concept store, M.M. To Go in Manhattan’s Financial District. Unlike the retailer’s showroom spaces where shoppers booked styling appointments and waited for items to be shipped, the new concept will have no appointments and let customers take purchases out of the store. The new concept features 10 core apparel pieces ranging from sizes zero to twenty-two.
Stitch Fix Acquires Tech from Finery Popular online personal styling service, Stitch Fix, has acquired the tech of digital wardrobe startup, Finery. The startup’s technology scans user’s e-receipts for purchases, then auto-populates to digitize a virtual wardrobe that can be accessed by users to help them keep track of what they already own and assemble outfit options. With Stitch Fix facing competition from other retailers like Amazon, Express, and American Eagle who have launched their own monthly services, the new tech acquisition will provide the company a way to better serve their clients and learn more about their style needs.
Walmart Piloting Healtcare Store Concept Starting next month, Walmart will pilot a new healthcare store concept in one of its Georgia locations. Walmart already runs clinics in several of its stores, but the new Georgia location will add services like dental, mental health counseling, X-rays, and audiology. The retail giant appears to be positioning itself against CVS Health, which recently announced plans to expand its Health Hub pilot to 1,500 locations by the end of 2021.
With Americans facing increasing difficulties with insurance and care options, Walmart seems to be taking advantage by offering more integrated healthcare. The retail giant has reportedly been considering some sort of expansion for a while. Last year, the company was said to be considering major acquisitions in the health space. Though the acquisitions never happened, this new announcement confirms that Walmart is continuing to focus on growing in a space that’s poised for disruption.
Coming up... Amazon poses as a threat to more than just retailers. FedEx and UPS are making strategy shifts as the retail giant builds its own delivery service. More after this.
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Fedex, UPS Facing Amazon Challenges While retailers have been battling Amazon for years, the war has finally spilled into the shipping industry. FedEx and UPS have both recently made changes in answer to Amazon’s growing competition. As Amazon continues to build out its own delivery services, the shipping companies have had to make strategy changes. FedEx has recently announced they would not be renewing two contracts with the retail giant, one of those being their Ground delivery contract. They’ve also expanded their delivery service to seven days a week. UPS has been experimenting with drone delivery and self-driving trucks as they work to modernize their services. The moves come as Amazon has invested in resources for their own delivery service. The company has been building their air fleet and offering $10,000 to employees who want to start their own local delivery business.
Peloton, the popular fitness startup that has inspired waves of new fitness company launches, has filed publicly for IPO. Digitally native brands seek alternative ways to create physical, brick and mortar locations in the midst of online competition. Plus, headlines from WeWork, Boll & Branch, and more.
TikTok is an emerging social platform with a lot of potential for retailers. Kroger is now experimenting with the app’s shoppable content for their back to school promotion. Mobile apps are also a rising trend for retailers as more consumers shop online. Plus, retail headlines from Brooks Running Company, Square, and more.
Amazon is thinking about building out a new grocery chain from the ground up. The stores would be designed with pickup and delivery in mind, reinventing the grocery shopping experience. Sephora is rolling out the “Next Big Thing”, putting the spotlight on rising digitally native brands. Plus, new headlines from Lively, Outdoor Voices, and more.
Ebay just announced a new fulfillment service they’ll be launching next year. The new service, Managed Delivery, will give high-volume sellers the opportunity to store, pack, and ship products through pre-approved third-party vendors. The company is now developing a pilot version with partners throughout the U.S.
Amazon announced a new Upskill 2025 initiative aimed to reskill employees for high demand jobs. The retail giant’s press release said they would invest $700 million to give 100,000 Amazon employees access to new programs in IT, machine learning, and more
Apple has now expanded its Business Chat service to work with online businesses who use Shopify.
Pinterest steps up their shopping features with new capabilities to compete with Google and Facebook/Instagram. Hudson Grace is acquired by a larger brand. Shopify gives thousands of stores the ability to ship quickly with their new fulfillment network.
Following announcements from Amazon and Walmart about rolling out quicker delivery options, Target is now revamping their same-day delivery features. Utilizing Shipt, the growing grocery delivery service, Target is making same-day delivery easier and more accessible to its customers.
Today we’re talking to Danny Taing (“Tang”), Founder and CEO of Japanese snack subscription company Bokksu. Plus, we’ll take a closer look at how the recent tariffs on imports from China are putting a strain on retailers.
Retail giant, Nike, is shifting its focus from wholesale revenue to direct-to-consumer sales. Plus, Sagely Naturals co-founder and CMO Kerrigan Behrens talks scaling in the CBD industry.
This episode, we’ll take an in-depth look at Google’s revamped shopping features that launched this week. With new ways for shoppers to find and compare products and new ways for merchants to reach potential customers, the updates re-assert the giant’s search capabilities in the midst of growing competition with Amazon.
This episode, we’ll take a look at the role of Artificial Intelligence in today’s consumer economy. Though it’s long been predicted that AI will replace many human-held jobs, the reality is that human employment is holding steady, even in professions that have been deemed high risk for automation. Plus, headlines from Hims, ASOS, and Amazon.
This episode, Ryan Hogan from “Hunt a Killer” joins us. The in-person and on-line murder mystery game is experiencing tremendous growth. See what’s in store for the company in 2019. Plus headlines from Smile Direct Club, CVS, TikTok, and Thinx.
Learn how bootstrapped startup Farmgirl Flowers grew from a local outfit to national household name for flower delivery. Plus, headlines from PayPal, Mejuri, Lululemon, and more.
In this episode, we’re talking to Polly Rodriguez, co-founder of Unbound. The women’s wellness company is facing Facebook advertising challenges that are common among today’s sexual health brands. We’ll talk with Polly about how she and Unbound are combating the issue. Also, headlines from Amazon China, Allbirds, UnTuckit, Fair Weather, Lush Cosmetics, and KidBox.
Eunice Byun, Co-Founder of Material, is helping people do more with less in the kitchen. Promising performance results are coming in for video ads on Reddit and the real estate firm behind Hudson Yards is making a big bet on upstarts. Plus, headlines from RH and eBay.
“Checkout with Instagram” launched in beta this week. Smile Direct Club builds momentum towards a summer IPO while a new study from Marketplace Plus shows that Amazon’s brands aren’t all that. Plus, big news from Glossier, Rent the Runway, Brandless, and Ring.
The strain between Amazon and its marketplace sellers intensified this week as the company tested pop-ups hawking AmazonBasics alternatives.The Wall Street Journal profile of the practice highlights how the company is getting more and more aggressive on its own turf. Also, L’Oreal and Lush’s presence proves that the beauty industry is a powerhouse in tech and innovation. Plus, updates from Instacart, Good American, Rothy’s, and Quip.
This week, UPS announced the launch of E-Fulfillment, which allows sellers to store products in UPS warehouses and ship them through 21 different platforms. How will this affect Fulfilled by Amazon? We’ll dig in at the end of the episode.
Guest this week is Rachel Cohen, co-founder of Snowe, the home essential brand that offers luxury, quality
products at an obtainable price. Plus the blessing and curse of visual search and why Canada is the foray of choice into the international market.
An interview with Burrow CEO Stephen Kuhl. Plus, how direct-to-consumer brands are trading FB ads for TV ads, Barney's foray into CBD, and Eero's Amazon acquisition.
UrbanStems co-founder and chairman Ajay Kori talks Valentine's Day, subscriptions, and sustainability. Plus headlines from Prima and the "click-to-buy-to-make" model for e-commerce.
Headlines from J. Crew, Nudie Denim and Everlane and why robots are moving from warehouses to the aisles. Guest today is Aman Advani, co-founder and CEO of Ministry of Supply. The Boston-based apparel company creates sharp, classic styles in materials that synchronize with the human body. Aman, his co-founders, and the company have been heavily featured in Forbes, Inc, CNBC and Fast Company over the course of the company’s 5 year history.
www.ministryofsupply.com
Ministry of Supply will tailor this sweater to your body while you wait
China is expected to top the U.S. as the world’s largest retail market this year. Labor marketplace Jyve just secured another round of funding. SnoweHome and Keeps founds talk about building direct-to-consumer brands that "break the mold."
50% chance 2019 will be a recession year, Outdoorsy lands series C funding, strong second quarter results for MedMen and weed in California. Chris Walton talks NRF.
Deloitte shares the trends on why Direct to Consumer startups are rapidly growing, Big Box Retailers saw disappointing Q4 results, and Chris Walton's analysis of the Store of the Future are in this episode. We're joined by Maddy Moelis and Sierra Tishgart, co-founders of Great Jones after a huge holiday kick off season... as seen in the New York Times and Forbes.
Forbes: Every Retailer Should Have a Store of the Future Plan of Attack
DIFF Eyewear is a social enterprise success story. Vincent talks to co-founder Chad Jernigan about the company’s ambassador/influencer model and how the Kardashians have catapulted the brand to superstardom.
SF Mayor London Breed’s plan to reinvigorate the city’s deadened storefronts. Plus, Brexit’s toll on the holiday shopping season, Walker’s acquisition by P&G, and news from Drizly and Stitch Fix.
The latest news and interview with Alex Bird of Kiss My Keto on the impending January 1 tariff hike on $200 billion worth of Chinese exports. Also, Amazon’s cashierless checkouts, Peloton v. SoulCycle, Ikea shrinks square footage, and Cuba’s long-anticipated access to internet.
McKinsey just released it’s highly-anticipated “State of Fashion” for 2019. So what’s in store for next year? Lots of uncertainty and opportunity to upend the status quo. Also in this episode: What’s happening in the beauty industry right now, and headlines from Quip, ThirdLove, and Under Armor.
This week, we're broadcasting updates from Best Buy's Black Friday. More consumers are picking in-store pickup and curb-side pickup over 2-day shipping (and retailers are benefiting from additional sales opportunities). Male brands like Bonobos, Untuckit, and Chubbies are expected to see record sales. This happens while Victoria Secret struggles with competition from online startups. Also, one big retailer is going to be closed on Black Friday.
October was a rough period in the stock market with the S&P 500 logging its largest monthly decline in seven years. But what should retailers expect for consumer spending? Also, covering Amazon's announcement of HQ2, FDA changes regulations on e-cigarettes, and brands that give back for the CA wildfires.
Pura Vida Bracelet's California Fire Relief Bracelet