March 20 – 26, 2023
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| An article this week from Reuters suggested that the days of free shipping are numbered. After years of habituating consumers to expect free (and fast) shipping, with inflation rising, margins shrinking, and shipping costs soaring, many retailers are struggling to make the numbers work. Which is, well…infuriating. Especially after you read about Amazon’s role in this; both in creating the expectation and in reneging on it. And we get, we do. The numbers aren’t quite working the way they used to (including Amazon!), but customer expectations are going to be hard to revert at this point. So, our suggestion? Provide more value for the physical space and find ways to help your customers with some of their biggest costs, and that means expanding BOPIS, ship-from-store, and many more of the logistical tactics we discuss in these newsletters. Peruse the archive for more…
More news this week on biometric payments at food retailers, Door Dash’s ongoing expansion into retail and on a big retailer turning it’s back on malls. Find us on Twitter and LinkedIn and let us know what you think of this week’s newsletter! |
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| Retailers expect more tasks to be done by robots by 2025: report [RetailDive] Retailers foresee up to 70% of routine tasks to be wholly or partially automated by 2025, according to a recent study. The use of robotics for tasks such as cleaning and inventory audits is predicted to double in that timeframe for specialty and department stores. |
| Panera tests Amazon One palm payments at 2 cafes [PaymentsDive] Panera is using Amazon One’s palm scanning technology for payments and to connect customers with its loyalty program in St. Louis. The pilot will begin with two stores in that city, said George Hanson, Panera’s SVP and chief digital officer. |
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| Suit claims Amazon broke New York privacy laws with Amazon Go tech [Chain Store Age] Amazon is being sued for allegedly using biometric recognition technology without informing customers at its Amazon Go convenience stores located in New York. In a class action lawsuit filed in federal court in the Southern District of New York, plaintiff Alfredo Rodriguez Perez alleges that Amazon violated a New York City law requiring businesses inform customers if they use technology that tracks any biometric information, such as measuring size and body shape or fingerprint scanning. |
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| Micro & Last Mile Fulfillment |
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| BJ’s ‘last mile delivery model’ improves in-store order fulfillment process [GroceryDive] BJ’s Wholesale Club’s use of in-store employees in the same-day delivery process is improving its e-commerce customers’ experience, EVP and Chief Digital Officer Monica Schwartz said during an investor day presentation earlier this month.
Walmart’s delivery operation — by the numbers [Chain Store Age] Last year was a busy one for Walmart’s ever-expanding delivery operation. In an infographic Walmart highlighted a number of metrics from its delivery activities in fiscal year 2023 (ended Jan. 31, 2023). |
| DoorDash adds Victoria’s Secret, Party City to its non-food options [RetailDive] DoorDash has added a few more retailers to its non-food client list. With that, more than 98% of its monthly consumers in the U.S. have access to a non-restaurant retail store on its platform.
Amazon, other retailers revamp ‘free’ shipping as costs soar [Reuters] There is no such thing as free shipping. Even so, Amazon.com Inc and other online retailers who use so-called free delivery to cultivate customer loyalty are scrambling to keep it from draining profits as costs climb and e-commerce contracts. |
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| Irish Drone Delivery Startup Expanding To U.S. And Mainland Europe [Forbes] One of the world’s most successful drone delivery companies will be expanding to mainland Europe and the United States in 2023. Manna Aero has already done over 100,000 drone deliveries in multiple locations in Ireland, and is trending to hit over 1,000 deliveries per day in individual dense urban markets. But it won’t be instantly available everywhere. And Manna is not releasing its first target market in the U.S. |
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| Restaurants & Ghost Kitchens |
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| Restaurants and Inflation: A Recipe for Success or Disaster? [QSR] Many restaurant operators entered 2022 with an eagerness to expand, but that changed when the economic landscape caused their focus to shift toward maintaining current operations. Entering into 2023, operators are being forced to balance rapidly rising costs with maintaining consumer demand for their products. |
| 5 Questions Restaurants Must Ask to Make Sense of Delivery Data [QSR] For restaurants, delivery data trends are clear—customers will continue to rely on off-premises dining as a significant part of their restaurant spending. But for restaurants trying to make sense of all the disparate DSP delivery data available and is fresh and actionable, it is a much murkier story. It is often overwhelming for busy restaurant operators. |
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| The Supply Side: Retailers bet on brick-and-mortar in 2023 [TB&P] The once-thought-dead mall and brick-and-mortar retailers may see a rebound in traffic this year, but retail insiders say the gap between the winners and losers will also likely widen. Carol Spieckerman, CEO of Spieckerman Retail, said the brick-and-mortar store remains core to many retailers’ growth strategies this year and beyond. She said the prognosticators who expected online-only deals to take over the world haven’t proven true.
Bed Bath & Beyond is closing hundreds of stores. But they won’t be empty for long [CNN] Bed Bath & Beyond is stripping down its big blue signs, clearing out aisles of linens and closing 400 stores as it tries to stave off bankruptcy. Bed Bath & Beyond’s real estate is a precious, scarce resource for retailers, gyms and anyone else who needs ample space. |
| This Major Mall Retailer Is Shuttering Hundreds of Stores [The Street] Traditional shopping malls have been struggling for years now. But some optimists think the format might experience a rebound as people re-emerge from the lockdowns of the global pandemic. Foot Locker is firmly not in that group, however. The footwear retailer recently told investors that it plans to close 400 mall-based stores by 2026, or about 14% of its current store base of 2,800 stores.
Stores-In-Stores Multiply Retail’s Appeal In The Fight For Wallet Share [Forbes] There’s something happening at the nation’s malls, department stores and discount retailers. Smaller brands are setting up shop within these emporiums, providing a fresh offering for shoppers—and a new way for larger retailers to keep pace with rapidly evolving consumer trends. |
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| Amazon’s balancing act is getting trickier [RetailDive] With its non-grocery brick-and-mortar stores largely in the rear-view mirror, the pandemic-related e-commerce surge abating and legacy retailers catching up, Amazon has entered a new phase. |
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