PropTech Newsletter: The Week In News, But Shorter

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The Week In News, But Shorter
July 22 – 28, 2024

A recent survey highlighted by CNBC focused on the consumer demand for speed when it comes to delivery, and the challenges retailers face when meeting those demands, especially when it comes to (rising) costs. An overwhelming majority (85%) of retail executives surveyed said reducing their total cost per order is the No. 1 priority for last-mile delivery. To save on delivery costs, retailers are moving away from reliance on single carriers in last-mile delivery. Three out of four executives reported using a mix of last-mile options. 

This week we also saw predictions about the holiday shopping season (yes, it pains us to think about it quite so soon too. Summer, slow down!!), and on the future of personalization in both retail and restaurants.

Digital Meets Physical

Ikea to open 100 more Tesco click-and-collect points [Retail Gazette] Ikea is planning to open 100 more click-and-collect points at Tesco stores across the UK as it looks to improve its accessibility for customers. It comes as the Swedish furniture giant opened its 100th mobile pick-up point this week following a successful nationwide roll-out last year.

Retailers shift their thinking on costly last-mile delivery as consumer need for speed raises costs [CNBC] FedEx and UPS are facing increased competition as last-mile delivery providers with UPS the one losing ground to date. Retailers are focusing more on cost as satisfying the delivery speed consumers have become accustomed to demanding, such as same-day, hasn’t paid off financially.

Macy’s Levels Up Personalization with 500M Tailored Offers to 30M Customers [RetailTouchPoints] Macy’s has always aimed to design shopping experiences that align with consumer wants and needs, but it recently decided to level up its personalization efforts, especially as consumers ventured across different channels.

The Future of Restaurant Loyalty Starts with Personalization [QSR] One of the realities of today’s inflationary puzzle is discount-focused strategies are increasingly difficult to sustain. Prices aren’t only climbing for consumers; the reason restaurants are charging more is some mix of rising ingredient and labor costs, interest rates, and continued challenges with access to capital. 

6 Ways Amazon Prime Day Was A Dress Rehearsal For The Holiday Season [Forbes] The curtain has just come down on Amazon Prime Day 2024 around the world. And while Amazon takes a bow for a “record-breaking” Prime Day ($14.2 billion revenue in the U.S., +11.2% YoY; £1.3 billion in the U.K., +8.8% YoY), the real main event is Q4 and the holiday shopping season. So what is waiting in the wings for retailers these holidays? Prime Day provides some strong indicators.

PropTalk

John Lewis launches in-store repair trial with Timpson Group [BusinessGreen] John Lewis and Timpson subsidiary announce 16-week clothing, accessory, and homeware repair trial at five UK stores. John Lewis and Timpson Group brand Johnsons have today launched a repair service trial offering customers at five stores the chance to bring garments, accessories, and a selection of homeware products for repair.

Mall brands’ comeback partner is the cult fashion label [Vogue Business] Legacy mall brands are teaming up with niche fashion-favourite brands in a bid to boost both businesses by hitting a sweet spot. It’s a smart response to the current retail landscape.

In-store experience wins out as customers want to see and touch purchases [RetailDive] Consumers still value in-store experiences even as AI-powered improvements elevate online shopping experiences. More than two-thirds of customers want expert advice when purchasing high-value items, while one-third want in-store service online shopping can’t match. Another 3 in 5 consumers want to see and touch items before buying them.

Beverly Hills Megadeal Lands Prime Shopping Space—and the Empty Cubicles Above It [The Wall Street Journal] Los Angeles-based investors are paying $208 million for an office complex in Beverly Hills, Calif., betting the buildings’ ground-floor retail in the exclusive shopping district is worth all the empty cubicles that come with it. 

L Catterton Buys Outlet Malls Stake in £1.5 Billion Deal [Bloomberg] L Catterton, the private equity firm backed by French luxury fashion house LVMH Moet Hennessy Louis Vuitton SE, has agreed to buy Hammerson Plc’s stake in outlet mall landlord Value Retail in a deal representing an enterprise value of £1.5 billion ($1.9 billion).

Retail REITs in Broadly Positive Position at Mid-Year [Nareit] Fundamentals for retail real estate appear favorable at mid-year, supported by supply constraints and retailers’ continued commitment to brick and mortar stores as an essential distribution channel. Analysts are watching pockets of consumer stress but remain generally positive that leasing volumes and pricing power will trend higher for REITs during the rest of the year and into 2025.