February 6 – 12, 2023
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| Welcome to a “Super Bowl Monday” edition of the newsletter. For our international readers, yes, it’s a real thing. It is reported that a record 18.8 million Americans plan to miss work today after the big game. But not us! So on to the week in news…..
The American Dream mall has been in the headlines for nearly 20 years, and despite the ongoing ups and downs, the jury is still out on if it’s genius, or bound-to-fail. The genius? It’s a real marriage of retail, entertainment, dining, and more, and we do believe that this is the future of successful malls. As for those who think it’s bound to fail? Well, we don’t quite see their point. Malls are conveners of communities (aka third spaces), warehouses, cultural centers and so much more. No, we don’t think every mall needs a ski slope, but yes, we do think every mall (or really any retail property), needs to meet needs beyond just “shopping,” and what we have termed “Alternative GLA.” We’ve got lots of experience in doing just that if you’re unsure what this looks like for your properties.
This week we got some insight into how retailers feel about AI-based chatbots (have you played around with ChatGPT??), thoughts around how retailers and restaurants can partner for last-mile delivery, and where you can expect the next big warehouses to pop up. We’re over on Twitter or LinkedIn – find us there! |
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| Target’s Shipt Unit Launches 5-City Pilot to Help Small Retailers Grow [PYMNTS] Shipt says it will provide each retailer with $5,000 to help invest in eCommerce. Shopify will also teach a course in the program and let retailers access their platform and build an online store front at no cost. |
| Wegmans rolls out smart cart pilot [GroceryDive] The Wegmans spokesperson noted that smart carts are an early-stage technology and that the grocery chain is in the preliminary stage of a “Test & Learn” pilot — indicating that Wegmans is in no rush to roll out a smart cart solution on a broad scale. |
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| Do customers like AI-based chatbots? [Chain Store Age] A new survey of U.S. consumers reveals their views on artificial intelligence, especially when it comes to customer service chatbots. According to data from a recent Ipsos poll, close to seven in 10 (68%) surveyed U.S. consumers have utilized customer service chatbots. However, of those respondents, close to eight in 10 (77%) prefer interacting with a human for customer service needs. |
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| Micro & Last Mile Fulfillment |
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| Wendy’s first to test Roku, DoorDash deal around shoppable TV ads [MarketingDive] Roku and DoorDash announced a multi-year partnership, granting, new and existing Roku account holders six months of complementary DashPass, DoorDash’s membership program. Wendy’s will be the first restaurant brand to test the Roku-DoorDash integration, giving Roku subscribers who see the chain’s ad access to $5 off any purchase of $15 or more, as part of its efforts to double down on digital acceleration. |
| Border-Town Warehouses Are Booming as More Manufacturing Moves to Mexico [The Wall Street Journal] Real-estate investors are betting that big changes in global supply chains will boost demand for warehouses and distribution centers in Mexico and U.S. border towns. American and some foreign companies are shifting production and equipment to Mexico in pursuit of a manufacturing hub closer to the U.S. Many are relocating from Asia after a series of disruptions related to China during the pandemic, part of a burgeoning “nearshoring” trend. |
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| Could grocers and fast food restaurants join forces for online ordering? [GroceryDive] Micro-fulfillment vendor Takeoff Technologies is working with an unnamed retailer to allow shoppers to order groceries and McDonald’s food at once, a senior company official said. |
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| Restaurants & Ghost Kitchens |
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| Fast food reigns supreme as inflation weighs on pricier restaurants [CNBC] Chains like Chipotle Mexican Grill and Chili’s are struggling to attract customers, but fast-food chains haven’t had the same issue. McDonald’s and Yum Brands have reported solid demand as inflation-weary customers trade down to fast food. |
| Grubhub Drops Delivery Fees For Restaurants Using Direct-Order Tool [Restaurant Business] Grubhub is waiving delivery fees for restaurants that use the company’s first-party ordering product, Direct. Direct allows restaurants to create their own online ordering website, with delivery provided by Grubhub if they choose. |
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| Inflation has Americans tired of tipping, but tips are actually growing. What’s happening? [USA Today] Despite reports of tipping fatigue among consumers, new data indicates that people are actually tipping more at restaurants. Square, the company behind many of the iPad point-of-sale machines you might see at a local restaurant or coffee shop, found total tips received in the fourth quarter climbed 16.5% year-over-year at full-service restaurants and 15.9% at quick-service restaurants. |
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| Simon Property Group sells off Eddie Bauer interest as its retail investments tumble [RetailDive] Net operating income from Simon Property Group’s retail and brand interests, which include investments in J.C. Penney, Sparc Group, Authentic Brands Group and Rue Gilt Groupe, fell 35.4% to $125 million in the fourth quarter and 33.4% to $355 million for the year.
Placer.ai: U.S. malls see big traffic lift in January [Chain Store Age] America’s shopping malls saw a big increase in customer visits in January compared to a year ago. Visits increased 4.1% at indoor malls, 5.2% at open-air lifestyle centers and 2.7% at outlet malls, compared to January 2022. |
| The American Dream mall sets its sights beyond traditional retail [Fast Company] Plagued with 15 years of delays, the American Dream mall finally opened in late 2019—only for the Covid-19 pandemic to hit a few months later. Has the retail juggernaut finally found its footing in 2023?
In a first, ‘modest’ fashion department store to open at American Dream [Chain Store Age]
American Dream has created a new retail concept for consumers who want to dress stylishly and on trend — but not reveal too much skin. They have developed what it calls the “world’s first modest fashion department store, a “first-of-its-kind specialty department store curated for the modest fashion consumer.” |
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