March 13 – 19, 2023
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| A new survey from Glossy and Modern Retail found that 73% of brands don’t believe that web3 (metaverse, VR, NFTs, blockchain, cryptocurrency or “other”) will have an impact on their business this year. We must say we are not surprised. While each week we hear about a new brand experimenting in these various spaces, it’s just that for now – experimental. And we are big fans of being experimental, but you need to have the proper expectations about the results and the ROI. Take the time to set clear and realistic expectations before moving into this space, and know that it’s a long game.
This week we also heard that Amazon is opening a “just walk out” store on a college campus (after announcing they are closing 8 others last week…), heard more about drones being used inside and outside of warehouses, and read about the sustained demand for food delivery. We’re over on Twitter and LinkedIn and would love to get engaged with you there! |
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| Amazon ‘Just Walk Out’ shopping makes college debut [Chain Store Age] For the first time, Amazon “Just Walk Out” cashierless shopping technology is available in a store on a college campus. Amazon announced that an on-campus convenience store located in the lobby of Gerard Phelan Hall at Marymount University in Arlington, Va. (the city where Amazon is building a second headquarters).
Apple Invites Consumers to ‘Shop With a Specialist’ [Pymnts] Apple is delving into live shopping to entice consumers as it deals with rising costs. The tech giant debuted “Shop with a Specialist over Video,” which lets shoppers interested in buying an iPhone can communicate via video with a salesperson, browse new phones and learn about things like trade-ins and financing. |
| Modern Retail Research: 73% of brands say they don’t buy into web3 [ModernRetail] Despite the deluge of brands making metaverse hires and launching NFTs last year, new survey results find that they don’t see web3 having a big impact on their business. Few brands and retailers responding to Glossy and Modern Retail’s Q1 2023 survey believe that the technologies generally described as “web3” will have an impact on their business this year.
Buoyant Zara Owner Inditex Invests in Tech and U.S. Expansion [Reuters] Inditex also said it would invest in automation at its distribution centres in Spain and start phasing out hard anti-theft tags in stores this year. The tags will be replaced with chips sewn into garments, which the company says will cut checkout times by up to 50%. |
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| Micro & Last Mile Fulfillment |
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| Amazon, Rivian in Talks to End Exclusivity Part of Delivery-Van Pact [The Wall Street Journal] Amazon and Rivian are in talks to scrap the exclusivity part of their electric-van deal, after the online retailer’s order for 2023 came in at the low end of a previously provided range, according to people familiar with the matter.
Zipline unveils P2 delivery drones that dock and recharge autonomously [CNBC] Logistics startup Zipline has flown more than 38 million miles with its autonomous electric delivery drones since the company was founded in 2014. Zipline put its first fleet to work in Rwanda, delivering blood and other health supplies to clinics and hospitals. Since then, the Silicon Valley startup has expanded its service in six other countries, with limited delivery service and distribution centers in three states. |
| Verity raises $32M as IKEA stores deploy its inventory drones [TechCrunch] The Zurich-based firm was founded way back in 2014, with the promise of an automated solution that can work around the clock tracking products — one of the most time- and resource-intensive tasks in a warehouse. This morning, the company announced a $32 million Series B. Led by A.P. Moller Holding and featuring Exor Ventures (among others), the round follows an $18 Series A raised back in 2018.
Amazon enters delivery partnership with Rite Aid – here’s where [Chain Store Age] Amazon Prime members have a new fulfillment option for health and CPG items in two select markets. Amazon announced that Prime members will have two-hour delivery windows from Rite Aid stores in select ZIP codes in Newark, N.J. and Burbank, Calif. |
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| Restaurants & Ghost Kitchens |
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| How Luxury Department Store Harrods Built A Booming Restaurant Business [Forbes] So what is the attraction of having so many eating and drinking spots in the store? I had the chance to catch up with Harrods’ director of restaurants and kitchens, Ashley Saxton, to find out how food and beverage (F&B) is fast becoming a revenue driver and a cornerstone of the business. |
| Delivery Demand Keeps Driving Growth in Restaurant Industry [QSR] The restaurant industry has experienced a great deal of turbulence over the last few years. Undoubtedly, the pandemic created significant challenges across the sector, but while many businesses were forced to close their doors, the period also led to a significant increase in off-premises dining and delivery demand, with restaurants endeavoring to capitalize on new opportunities. |
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Denny’s overhauls kitchens, offers augmented reality menu feature [Chain Store Age]
Denny’s is upgrading its store environment, physically and virtually. The casual dining chain is investing more than $25 million to upgrade and improve its kitchen equipment as part of an omnichannel brand refresh called “It’s Diner Time.” The effort is designed to drive the development of new and improved food offerings, while increasing efficiency and reducing food waste. |
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| The return of the downtown office worker? [Chain Store Age] While more than half of America’s workforce continues to ply their trades at home for at least part of the week, Monday-through-Friday traffic counts in U.S. downtowns in February indicate that their office time is on the rise. A report from Springboard, a provider of shopper traffic counting and artificial intelligence to retailers, found that retail traffic in American cities went up at breakfast and lunch compared to February 2022. |
| Retail CEOs Want Their Loyal Consumers Back, Reflecting on Q4 Earnings [PYMNTS] As retailers reflect on this past year’s performance, a trend from this quarter’s earnings has emerged: core products, core customers and customer loyalty. But why does it feel like we’ve heard this story before? We have. Just in different ways. While all three areas might not be new reflections around earnings, this represents another year of survival of the fittest. |
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| Shoplifting Climbs as In-Store Shopping Returns [The Wall Street Journal] Retailers say theft is rising as more people shop in stores, cutting into profits that were already under pressure. “We definitely had an uptick since last year,” Macy’s Chief Executive Jeff Gennette told analysts earlier this month. “It’s an industry wide trend.” |
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