March 27 – April 2, 2023
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| A headline in the Wall Street Journal this week captured a sentiment we shared about the metaverse just two weeks ago quite nicely–calling the metaverse the Meh-taverse. As we’ve shared in these newsletters quite regularly, we just don’t see this as the game-changing technology it promised to be just a few years ago, and it seems that major players in the space are signaling that they might just agree. Walt Disney shut down a metaverse-focused division, Microsoft has made cuts, and even Meta itself—the company formerly known as Facebook that made the name change and consequently spurred all the hype—is toning down metaverse talk in favor of AI. While we do enjoy being right when it comes to trends, we care more about our clients being privy to these signals too. Know someone who could benefit from our headline analysis, forward this newsletter along, and let them know to sign up here.
This week we saw quite a few headlines about experiential retail, a major update Uber Eats is making that impacts ghost kitchens in both positive and negative ways, and an update Amazon is making to try and combat excessive returns. Catch us over on Twitter and LinkedIn for more hot takes. |
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| Millennials plan to stick with online shopping even as stores rebound, new survey finds [CNBC] Over a quarter of millennials will increase their online spending in 2023, according to a new survey. Millennials have consistently shown a marked preference for online shopping, compared with other generational cohorts. While the early part of the pandemic saw an unprecedented online shopping boom, in-person shopping has been ready for a resurgence, as consumers return to brick-and-mortar stores. |
| Kohl’s moves digital marketplace from pilot to full launch [Chain Store Age] Another retailer is expanding its e-commerce assortment with a third-party digital marketplace. Following a successful pilot, Kohl’s Corp. is officially rolling out expanding its new digital marketplace platform. Known as Kohl’s Marketplace, the platform offers a curated online assortment of new brands which is seamlessly integrated and sold on the main Kohl’s e-commerce site. Products are shipped directly from third-party sellers. |
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| The Metaverse Is Quickly Turning Into the Meh-taverse [The Wall Street Journal] The metaverse, the virtual world that was the hot thing in tech less than two years ago, is facing a harsher reality. Walt Disney Co. has shut down the division that was developing its metaverse strategies. Microsoft Corp. recently shut down a social virtual-reality platform it acquired in 2017. And Mark Zuckerberg, who renamed Facebook as Meta Platforms to signal his seriousness about the metaverse, focused more on artificial intelligence on an earnings call last month. |
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| Micro & Last Mile Fulfillment |
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| Walmart e-commerce fulfillment layoffs top 600 [RetailDive] The retail giant confirmed that it has “adjusted staffing levels” at fulfillment centers “in select markets.” Specifics are slowly being made available via state Worker Adjustment and Retraining Notification (WARN) a federal labor law that requires employers with 100-plus employees to give at least 60 days notice of facility closures or mass layoffs. |
| Amazon begins flagging ‘frequently returned’ products [Engadget] Amazon has begun displaying a warning about frequently returned items as the company tightens its belt in response to shaky finances and an uncertain economy. Industry-wide e-commerce returns skyrocketed during pandemic lockdowns. Although they’ve declined, they’re still well above pre-pandemic numbers. |
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| What drone companies need to do to reach lofty delivery goals [SupplyChainDive] Zipline and Alphabet’s Wing unveiled major upgrades to their abilities to service customers earlier this month that may need some help in order to shake up last mile transportation. While their respective upgrades differ, both have the same goal in mind: Scale up and reach more customers. Wing expects its drone delivery network will be able to handle millions of deliveries by mid-2024, while Zipline aims to operate more flights annually than most airlines by 2025. |
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| Restaurants & Ghost Kitchens |
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| Uber Eats is starting to crack down on redundant and poorly rated virtual brands [Nation’s Restaurant News] Uber announced that the company will be launching a virtual restaurant certification program (a cross between a ghost kitchen mentorship program and virtual brand incubator), and will simultaneously be cracking down on any redundant or poorly performing virtual brands on its platform. |
| Uber Eats will deliver concessions to seats at Yankee Stadium [RestaurantDive] Uber Eats will launch in-seat delivery at Yankee Stadium on opening day Thursday, Uber Eats wrote in an email to Restaurant Dive. Orders are prepared and delivered by in-venue concessionaires and stadium staff. This service is part of Uber Eats’ mobile pickup feature that is available at a handful of stadiums. |
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| Is Your Restaurant’s Omnichannel Experience Up to Par? [QSR] During the pandemic, restaurant brands scrambled to implement digital capabilities and upgrade their tech stacks to handle demand for off-premises dining. Then they had to adjust to ongoing labor shortages and inflationary pressure. As a more balanced post-pandemic business environment emerges, omnichannel experiences—those which provide seamless brand interactions across in-store, mobile, and online purchasing—are critical to creating a cohesive brand image. |
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| Trademark launches mall renovation advisory business [Chain Store Age] Mall owners and investors looking to remake their properties into mixed-use community centers can now seek the aid of a developer that’s made such renovations its stock-in-trade. Fort Worth-based Trademark Property Company, which is currently involved in such a transformation of Georgia’s North Point Mall, has launched a mall advisory business that seeks to help retail real estate owners evaluate the market potential of regional malls, as well as large outdoor retail and mixed-use assets.
Edmonton mall cashes in on alternative tenants to fight Canada-wide slump [CDC] The mini stock cars of Radio Control Racers Edmonton are swerving down the track at their new storefront in the Bonnie Doon Shopping Centre. The club is one of the unconventional tenants setting up shop in the shopping centre, which is counting on alternative attractions to fight slumping mall foot traffic numbers. |
| Simon to re-restaurant malls with José Andrés [Chain Store Age] José Andrés, a James Beard Award-winning chef who received a National Humanities Medal will now be re-setting the menus at several Simon Properties malls. He has been engaged by Simon to bring several examples of his Spanish-American cuisine to key properties including the Stanford Shopping Center in Palo Alto and The Shops at Crystals and Forum Shops at Caesars Palace in Las Vegas.
Mall Of America To Host Two New World Class ‘Immersive Experiences’ [Forbes] Two world class, mind bending examples of experiential in retail, will soon debut at Mall of America. The first, “Wink World,” is billed as an immersive art exhibit, where “psychedelic art house meets carnival funhouse.” MOA is also putting the finishing touches on The Museum of Illusions, a 6,600-square-foot museum featuring over 70 “mind-bending “exhibits with interactive components. |
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| Torrid to open 30 to 40 stores this year [Chain Store Age] Torrid Holdings sees store growth as crucial to its success. Torrid, which specializes in apparel and intimates for women sizes 10 to 30, will open 30 to 40 stores this year. By comparison, the company opened 18 Torrid stores and eight Curv stores during fiscal 2022. |
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