February 20 – 26, 2023
|
|
| Last week we talked about “close-to-consumer” (a.k.a. Micro or last-mile-fulfillment), and the different approaches retailers are taking, and the topic continued this week as Target announced it would spend $100 million on “delivery hubs.” A key benefit? “By switching to the model, Target has cleared space in its backrooms and freed up time for store employees to help customers,” said Gretchen McCarthy, Target’s chief global supply chain & logistics officer. Bingo! With retailers placing more importance back on their physical space, this is the same reason we propose that property owners leverage space to support those retailers in similar experiences. Have we convinced you yet that this is a golden opportunity?
This week we also saw more about AI and ChatGPT, as well as some predictions about the future of the mall and what customers expect from their in-person shopping experiences. Don’t forget to find us Twitter or LinkedIn for other hot topics. |
|
| Meta partners with Ikea to unveil interactive AR experience [Charged] Meta has partnered with Ikea to release an interactive augmented reality (AR) experience for shoppers visiting stores across Sweden this month. Developed with Stockholm-based immersive tech company Warpin Reality, the AR game was inspired by the furniture giant’s popular children’s collection, BLÅVINGAD. |
| Why retailers and platforms are rushing to incorporate AI and ChatGPT into online shopping [ModernRetail] Retailers are thinking about how to integrate OpenAI’s ChatGPT tool and other artificial intelligence-related apps into their e-commerce strategies after tech giant Microsoft popularized the tool by integrating it into its Bing search engine. |
|
| Rethinking Tech Needs as Shoppers Return to Physical Stores [WWD] A recent report by Placer.ai looked at the impact of physical store expansion by digital-native brands and direct-to-consumer brands over the past two years. Researchers at the company found that store sales drove online sales and vice versa. |
|
| Micro & Last Mile Fulfillment |
|
| Companies Are Slow to Adopt Robot-Operated ‘Dark’ Warehouses [The Wall Street Journal] More companies are exploring ways to staff warehouses with robots but may have to wait a few years for the technology to catch up. More than a fifth of warehouse operators have invested in automation to help address labor shortages, particularly as they worked to handle surging e-commerce orders during the pandemic. Some companies are exploring full automation that requires few employees. |
| Shopify, Walmart and Amazon Joust for Merchants With Fulfillment-as-a-Service [Pymnts] For smaller merchants, the online sale’s the easy part compared to logistics. For the eCommerce juggernauts — Walmart, Amazon and Shopify among them — there’s money to be made, and merchant loyalty to be minted, by offering a single point of access to handle the steps that occur after the buy button is clicked. Fulfillment-as-a-service (FaaS), covers everything from getting goods transported to warehouses (on cargo ships, etc.,) to storing them, to getting them to the customers’ doorstep. |
|
| Target bets on e-commerce by investing $100 million in hubs to speed up delivery [CNBC] Target said it will spend $100 million to build a larger network of sortation centers that speed up and lower the cost of delivering online orders. The big box retailer is pressing ahead with its e-commerce strategy, even as it anticipates slower sales. |
|
| Restaurants & Ghost Kitchens |
|
| We Asked AI How to Properly Open a Ghost Kitchen. Here’s What It Said [QSR Magazine] Our editorial team turned to AI for answers to the restaurant industry’s biggest questions. For the first edition, we instructed ChatGPT to “write a story on how to properly open a ghost kitchen.” |
| Subway Wants To Create A National Ev Charging Network [Restaurant Business] The fast-food sandwich chain plans to add electric vehicle chargers at select locations this year. It also plans to create a network of “Subway Oasis” parks featuring canopies, green space and Wi-Fi. |
|
| Digital Restaurant Engagement Rises Despite Delivery Downtick [Pymnts] With restaurant prices on the rise and consumers feeling the impacts of those increases at three times the measured rate, many are cutting back on delivery. However, it seems that increases in other digital channels are more than making up for the decline. |
|
| PwC study shows what consumers want for better in-store experiences [Chain Store Age] Helpful sales associates are the No. 1 reason customers will shop in-store. That’s according to PwC’s latest Global Consumer Insights Survey, in which consumers ranked access to knowledgeable and helpful sales associates as the top (27%) factor that would enhance their in-store shopping experiences.
Innovative Department Store Chain Neighborhood Goods Back on Growth Track [Pymnts] The recovery of physical retail is also bringing new levels of innovation and experimentation to the in-store experience as the online and physical worlds meet and meld in creative ways. That’s always been the M.O. of Neighborhood Goods, whose updated take on the department store model debuted in 2018 and was in growth mode when the pandemic hit, triggering some brand introspection, and now finds itself growing again and morphing in a changeable climate. |
| What Does the Future Hold for Malls? Design Visionaries Share Their Predictions [Retail Touchpoints] Retail design and experience experts agree that malls can no longer copy-and-paste the same combination of retailers and food offerings. They must fully understand the wants and needs of their target consumers in specific geographies and create a community-driven platform that combines physical goods, services and, of course, experiences. To better gauge the present and future of the mall, Retail TouchPoints interviewed several design and experience experts.
‘Physical retail has never been more important’: Why apparel companies like Canada Goose and The North Face are investing in stores [ModernRetail] Despite a steady stream of store closures at retailers like Bed Bath & Beyond, Walmart and Macy’s, several apparel brands are forging ahead on expansions to appeal to in-person shoppers. . |
|
|
