| There were quite a lot of headlines this week as the National Retail Federation’s Big Show in New York was underway. One that especially caught our eye was from Chain Store Age reporting that the word on everyone’s lips at NRF was AI, which comes as no surprise. Everyone in every industry seems to agree on the power and potential of AI, but it seems many are still trying to figure out exactly WHY. As the retail industry finds its way with this emerging technology, we promise to continue being your gut check and compass. We’ll do that by keeping a close eye on the headlines here, but also by engaging in complex conversations throughout the industry. If you are looking to gain insights or have insights to share, we are here and ready to chat. Send us a message on LinkedIn or find us on our website.
Other headlines that caught our attention this week were around digital brands in the physical retail space – one new entrant, and one new exit. We also read interviews from two long-time shopping center owners on the state of the industry and continued catching headlines on drones. |
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| Parent of digital-first apparel brands to enter physical retail with 50 stores [Chain Store Age] Digital Brands Group is moving into physical retail. The company, whose portfolio of digital-first lifestyle apparel brands includes Sundry and Bailey 44, plans to open 50 stores during the next several years, which will be funded by its internal cash flow. Digital Brands, whose brands are also distributed wholesale, said it has been reviewing store locations and leases with several large-scale retail developers.
NRF 2024: AI isn’t plumbing, but it’s universal [Chain Store Age] Everyone who attended this year’s NRF conference went in fully aware that artificial intelligence (AI), especially innovative models such as generative AI, would be a major component of every exhibit booth, educational session, and conversation. But the unknown quantity was, exactly how would AI fit into the industry landscape for 2024? After spending three busy and informative days at the conference, I have some answers. |
| How Instacart plans to gamify omnichannel shopping [GroceryDive] A demo of Instacart’s Caper Cart at NRF’s Big Show conference showed off the option for a consumer to spin a virtual wheel on the smart cart screen for the chance to win a prize. Doing so resulted in a reward of $2 off along with a message that said, “Spin for another discount next time you shop with a Caper Cart!” This is one of Instacart’s forays into the company’s efforts to gamify omnichannel experiences.
Renting Clothes Was Supposed to Be the Future of Fashion. Then Shoppers Got Bored. [The Wall Street Journal] Rent the Runway is betting that clothing from designers Diane von Furstenberg and Jason Wu can get customers to keep their subscriptions. Rival clothing subscription service Stitch Fix is staking its future on private brands. The different directions are part of companies’ bids to stem steep subscriber losses in recent months and declines in their stock-market valuations. |
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| At Sam’s Club, a Human Will No Longer Check Your Receipt at the Door [New York Times] Buying things in bulk at wholesale retailers can be an all-day affair. Sam’s Club, the store chain owned by Walmart, is trying to make that time shorter: by using artificial intelligence to scan shoppers’ carts so they no longer have to show a receipt at the exit upon checking out. |
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| Micro & Last Mile Fulfillment |
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| Alphabet’s Wing supersizes delivery drones to tow big orders [TechCrunch] Wing, the drone-powered delivery company operated by Alphabet, intends to introduce a larger craft capable of towing heavier packages to customers. The news comes on the heels of Walmart’s decision to expand its drone deliveries in the Dallas-Fort Worth area, so it’s no wonder Wing is working to upgrade its stock; the outfit is one of the two firms facilitating Walmart’s drone delivery effort, alongside Zipline. |
| Last-Mile Roundtable: The nitty-gritty on the all-important last mile [DCVeloicty] Where do parcel and last-mile operations stand today? How will advances in artificial intelligence and visibility technology change the delivery game? And, perhaps most importantly, what can shippers do to ensure their parcel carriers consider them “shippers of choice”? To get some answers, we asked leading experts from companies participating in DC Velocity’s Last-Mile Theater at Modex 2024. |
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| The Vitamin Shoppe, Camping World among retailers added to Doordash [RetailDive] DoorDash has consistently added retailers to its lineup as it expands beyond offering only food for rapid delivery. The company jumped straight into its continued strategy this month, adding Camping World, Golf Galaxy, JD Sports, Finish Line and The Vitamin Shoppe to its delivery marketplace to “support consumers on their active and wellness journeys.” |
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| Sparse space, high rents will continue to plague retailers in 2024 [Chain Store Age] Available space is sparse and rents are rising — and neither is likely to change anytime soon. Since 1999, new construction of retail space averaged more than 100 million square feet per year. In 2022, that number dropped to 82 million square feet. Last year, it collapsed to 46 million square feet. In its January Real Estate Data Update, commercial real estate analytics provider CoStar holds that new construction starts will continue to fall and rents will continue to rise in the United States.
All Showfields stores close [RetailDive] By the end of Saturday, Showfields will shutter its remaining locations in Brooklyn, New York; Washington, D.C. and Los Angeles. The retailer, which served as a showcase for DTC brands, filed for bankruptcy in October and has faced qualms from its landlords over its debtor-in-possession financing. Showfields and its CEO and co-founder Tal Nathanel didn’t immediately return requests for comment. |
| Shoppers Prefer Staying Outdoors. That’s More Trouble for Malls. [The Wall Street Journal] National chains are accelerating their exit from malls for other types of retail locations, signaling more trouble for malls as consumers show a growing preference for shorter, more convenient shopping experiences. Jewelers, shoe stores and other specialty retailers are among the operators making the shift, indicating they will continue opening at outdoor, non-mall locations such after finding that they perform better and typically save on costs.
The Grove’s Rick Caruso: ‘We’re in the business of enriching lives’ [Chain Store Age] Rick Caruso, forward-thinking developer of The Grove in Los Angeles, admits that he knew nothing about retail real estate when he started leasing parking lots in the 1980s. In a recent conversation with Nordstrom co-president Pete Nordstrom on his podcast “The Nordy Pod,” Caruso claimed that his lack of experience in real estate played a huge role in the development of his company’s influential lifestyle centers. |
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| Mall executive Bill Taubman talks about pandemic-shaped shopper trends, tenant demand [Associated Press] As the president and chief operating officer of upscale mall landlord Taubman Realty Group, Bill Taubman has a bird’s eye view of consumer habits, which have become more unpredictable since the pandemic. But Taubman, which owns, manages or leases 26 malls primarily in the U.S. and is a joint venture with Simon Property Group, is more fortunate than plenty of other mall landlords. That’s because it’s positioned in the sweet spot of mall retailing. |
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| Restaurants & Ghost Kitchens |
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| Restaurants bullish on expansion in 2024 [Chain Store Age] Despite economic uncertainty and high interest rates, 2024 is looking like a year of growth for full-service restaurants. Nearly all (94%) of restaurant operators have some sort of expansion plans for 2024, suggesting that most full service operators are optimistic about the year ahead, according to a survey of 600 U.S. full-service restaurant owners, CEOs, general managers and area managers by restaurant management system TouchBistro. |
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