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The pendulum of power between retail landlords and leasees is always in motion, and while it swung a bit more toward those renting during the peak of Covid (though let’s be real, no one really “won” then…), it seems to have swung back toward retail landlords as things have stabilized. An article in The Wall Street Journal points out that no longer are rent prices slashed or negotiated as consumers flock back to in-person shopping and retailers again hope to meet them there. However, landlords should still be optimistically cautious, as another article in RetailDive points out, as some retailers seem to be looking for greener pastures outside the mall. Bringing unique and tech-enhanced services to your property is one way to ensure that you are a top pick for retailers, regardless of where the pendulum swings.
On that note, we also caught up on the anticipated growth (otherwise known as investment!) of the role of technology in retail and restaurants in the year ahead, what the new trend of eatertainment is all about, and how retailers are realizing it’s better to partner rather than own their fulfillment operations. Lastly, check out our own Kyle Spencer in PropertyEU and let us know your thoughts on LinkedIn.
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Mango opens virtual store in metaverse mall on Roblox [Apparel Resources] Fashion brand Mango, is enhancing its digital innovation strategy by venturing into the metaverse with a new initiative. The company is set to launch a virtual store within the “Outfit Shopping Mall,” a realistic shopping center situated on a Mediterranean island within the Roblox platform.
EY: Nearly all retail, CPG companies experimenting with generative AI [Chain Store Age] Virtually all (99.6%) respondents are experimenting with generative AI technologies in some capacity, according to a survey of retail and CPG executives. Looking at technology holistically, 90% of respondents say their company has plans to increase its investment in IT or emerging technologies over the next year, with AI and ML or generative AI (31%) heading the list, followed by digital supply chain (21%) and cybersecurity (20%) of the highest priority.
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Retailers, restaurants look to grow, leverage technology in 2024 [Chain Store Age] Growth is top of mind for retailers, according to payment solution Square’s fourth annual Future of Commerce report growth, with 61% saying they’re eager to expand in the coming year, though they are split on whether to prioritize brick-and-mortar (52%) or online offerings (48%). The report surveyed thousands of business owners and consumers in the U.S., Canada, the U.K. and Australia.
Walmart is Sharing More and More of its Data with its Suppliers. Here’s Why. [Retail Touchpoints] If data is the new oil, then Walmart is sitting on a gusher. Three years ago, the company launched a concerted effort to refine and distribute that rich resource, not just for itself but also for its suppliers. The result — a suite of data insights tools called Walmart Luminate — is now being used regularly by Walmart merchants and suppliers.
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Micro & Last Mile Fulfillment
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Amazon’s $1B investment fund eyes last-mile tech, AV startups [Supply Chain Dive] Amazon’s $1 billion venture capital fund is expanding its investment scope in 2024, eyeing startups in the last-mile technology and autonomous vehicles space. The fund has made several investments in robotics and automation startups with technologies that are deployed in warehouses, but Amazon is now also looking to support transportation companies that can help the performance of its logistics network.
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Shopify is rolling out a store fulfillment option for its brick-and-mortar merchants [ModernRetail] In particular, Shopify POS customers will have a new ‘ship from store’ feature meant to help address inventory and fulfillment challenges. This will be available to those who sign up for early access before being rolled out to all POS customers. The feature will work as a menu option in the POS system that shows all incoming orders and their fulfillment status.
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Retailers Increasingly Turning to Third-Party Resources to Handle Fulfillment [Retail Touchpoints] The percentage of retailers using third-party services such as Instacart, DoorDash and Uber Eats climbed from 45% in 2022 to 53% in 2023. Each of these companies announced new retail partnerships last year, many outside the “home turf” of the grocery vertical.
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For Retailers, Business Is Back and Landlords Say No More Rent Discounts [The Wall Street Journal] Retail property owners are shedding the discounts and other concessions they offered struggling tenants during the depths of the pandemic, the latest sign that competition for retail real estate is intensifying. Landlords are having a much easier time filling prime retail space and are far less likely to agree to concessions.
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Retailers are finding more of what they want off mall [RetailDive] After decades together, some retailers are redefining their relationships with malls. Stores like Macy’s, Dillard’s, Belk and J.C. Penney have long been seen as pillars of stability for America’s indoor shopping malls. But in recent years, those retailers have increasingly been looking and moving off-mall. The pandemic accelerated the trend.
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Inside the Competition for the World’s Richest Shoppers [The Wall Street Journal] A new era of one-upmanship has taken hold in luxury shopping, where retailers and brands are vying to outdo each other to attract and retain wealthy shoppers. Mytheresa gets more than a third of its sales from just 3% of shoppers. At Neiman Marcus 2% of customers deliver 40% of sales.
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Restaurants & Ghost Kitchens
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Who is winning the share of stomach competition? [Nation’s Restaurant News] Restaurant prices continue to far outpace grocery prices, but the restaurant industry gained market share in December. That said, traffic remains challenged.
Jersey Mike’s tests voice A.I. phone ordering [Nation’s Restaurant News] Jersey Mike’s is testing artificial intelligence technology that answers menu questions and takes orders.
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How eatertainment restaurants are transforming dining [SmartBrief] The foodservice landscape is constantly evolving, and one of the latest trends capturing the attention of both investors and consumers is “eatertainment” restaurants. These establishments that offer activities such as mini golf, bowling, arcade games and more seamlessly blend dining with entertainment, offering patrons a versatile and enjoyable experience.
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