| AI is not a trend we see fading into the background anytime soon. While it might be in the midst of a hype-cycle, the truth is that AI is a game changer for everyone in every industry – including retail. As we start to hear about applications, some might seem fanciful to start as many try to figure out the best use case scenarios, but there will also be many that will have long-lasting and meaningful impacts on the future and they should not be ignored. We are keeping a closer eye on this topic and what it means especially for property owners and their clients and shoppers, but we welcome your thoughts as well – let’s chat!
This past week was of course Amazon Prime Day, where they deployed some AI and machine learning to try and increase sales, but delivery and return costs continued to make headlines as well, as did some data about in-person mall traffic. You can find us over on just LinkedIn where you can also read our latest article with our thoughts on the mall – give us a like and follow if you haven’t already! |
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| How retailers are embracing AI [Retail Customer Experience] In terms of retail, artificial intelligence involves the use of automation, data, and technologies such as machine learning algorithms to elevate the customer experience, optimize business performance and increase profits. Many leading retailers have already adopted this cutting-edge technology to stay ahead of the competition and it’s been predicted AI services in retail will increase from $5 billion to above $31 billion by 2028.
Amazon’s Prime Day 2023 will be all about personalization [Fast Company] By leveraging machine learning, tweaking existing features, and introducing a few new ones, Amazon aims to put the deals that are most likely to appeal to you directly in your line of sight. It’s not the first year Prime Day has been personalized, but it’s likely going to be the most noticeable. |
| Weekend Briefing: Will fashion brands take to Threads more than Twitter? [Glossy] Brands including Calvin Klein, Kith, Nike, Allbirds, Shein and Uniqlo are starting to explore Threads, the new Meta-owned, text-based social platform that launched on Wednesday. But s of Friday afternoon, no Kering or LVMH luxury brands had joined — no doubt they are weighing the benefits of the new platform before adding their storied names to its username database. Also, Threads is not yet available in the E.U. due to issues around personal data protection.
Shein Takes on Amazon in the Business of Selling Everything [The Wall Street Journal] In just a few years, Shein has rapidly expanded from a discount Chinese apparel seller to a global fast-fashion giant. Now, it’s branching out, pitting itself against some of the biggest names in e-commerce. |
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| Micro & Last Mile Fulfillment |
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| Why More Retailers Are Willing to Pick Up Returns From Your Doorstep [The Wall Street Journal] The pandemic has changed the way we shop. More people buying things online means more people returning things, too. WSJ’s Dalvin Brown explains how some companies are leveraging gig workers to make those returns for you. |
| DoorDash, Grubhub, Uber Eats sue NYC over minimum delivery pay hike [GroceryDive] Grubhub, DoorDash and Uber are suing New York City over a rule that mandates $17.96 minimum hourly pay for delivery workers starting July 12, according to court documents viewed by Restaurant Dive. This wage floor will jump to $19.96 per hour in 2025. |
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| Retailers Set Higher Bars for Free Shipping as Delivery Costs Surge [The Wall Street Journal] Some retailers are concluding that free shipping comes at too great a cost. Macy’s, Saks Fifth Avenue, Neiman Marcus and Abercrombie & Fitch are among the merchants that have raised the bar for spending for consumers to get orders shipped free, as companies look to shore up their profit margins on online sales and pass a portion of rising delivery costs onto customers. |
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| Restaurants & Ghost Kitchens |
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| Restaurants Face Tech Backlash As QR Code Fatigue, Technology Costs, And Complexity Increase [Forbes] Many forms of technology caught on during the pandemic and some is here to stay. Still, a tech backlash has begun as diners often return to what they loved about restaurants. Eating out was and is an experience. High tech sometimes was taking the hospitality out of the hospitality industry. |
| Yum! Brands’ Road to 100,000 Restaurants Starts with People [QSR Magazine] It’s not hyperbole to say no restaurant group on record has grown as fast as Yum! Brands. The Taco Bell, KFC, Pizza Hut, and Habit Burger owner opened roughly 8,600 locations in the past two years. That calculates to a store every two hours, across the globe, for 24 straight months, or 730 days. |
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| Chipotle’s guacamole robot is cursed to peel and core avocados for eternity [Engadget] Chipotle isn’t done experimenting with robots that could make life easier for restaurant staff. The chain has teamed up with robotics company Vebu to test a prototype Autocado robot (yes, that’s the name) that cuts, cores and peels avocados to be used in guacamole. |
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| People Miss Shopping Malls, Especially Gen Z [RetailWire] According to a recent study completed by IPX, a financial services firm in Chicago, “Nearly 2 in 3 (61%) Americans want to see a revival of traditional shopping malls. In fact, Gen Z and Gen X wish malls would have a revival the most, followed by Millennials and Baby Boomers.”
Fashion brands are refreshing loyalty programs to increase customer lifetime value [Glossy] As customer acquisition costs continue to rise, fashion brands are doing everything they can to make the most of their existing customers. Brands like Levi’s are increasingly relying on loyalty program refreshes and relaunches, providing new perks and pushing those programs to bring in more members. |
| Mall Visitors Are Staying Longer [GlobeSt] Mall traffic got off to a shaky start this year but year-over-year visits are recovering, according to the June numbers in Placer.ai’s Mall Index, written by Shira Petrack. Indoor mall numbers were on par with numbers from a year ago but open-air lifestyle centers that have a bit more of an urban feel and outlet malls were up 2.6% and 2.3% respectively. And month-over-month visits this year were up in June versus May.
How Lunya’s bet on brick and mortar contributed to its bankruptcy [RetailDive] The direct-to-consumer brand flourished — and expanded — during the pandemic. But for the last year, it’s been losing $135,000 a month on stores. |
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