| Aug 1 – 7, 2022
 Big news this week comes from Amazon, who announced that they would be offering same-day delivery from select mall-based retailers. We saw reference to this project a few months back when it was revealed that Amazon was starting to dip their toes into mall-based delivery, and it seems the pilot must have been successful. While we think it’s great that these retailers are able to offer their customers new ways of getting their products—and faster—we do worry about such intense reliance on Amazon. Yes there are benefits to being listed on their marketplace —exposure to loyal Prime customers is the biggest—but it also means a lack of control, which we’ve seen become a big problem. And for the property owner, it’s more of the same, as retailers record an e-commerce sale while shipping goods out of the storefront. Not to mention more couriers using the common mall space with their dollies and boxes during business hours. The good news? If you’d like to try mall-based delivery without the help of Amazon, we have lots of ideas on how to do that! Let’s chat!
There was more news this week about warehouse space running out (due to the bullwhip effect apparently), and how UPS is experimenting with more efficient delivery routes. We also heard some good news from mall property owners, and we certainly hope that good news continues! Anything you think we missed? Post about it on Twitter or LinkedIn and tag us.
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Digital Meets Physical
The metaverse in retail: A game-changer that’s not ready yet [VentureBeat]
Will the metaverse dramatically change the way we shop? Probably yes, but the technology driving this will take at least a decade to become even close to mainstream. Still, retail companies can start preparing for it by rethinking the way they build their technology stacks and how they shape their customer journey. |
Facebook to shut down live shopping feature for retailers [Chain Store Age]
Live shopping events on Facebook are going to do a disappearing act. The social media network said it is shutting down its live shopping feature and shifting its focus to Reels. The company announced the news in a blog post in which it said that, starting on October 1, “you will no longer be able to host any new or scheduled Live Shopping events on Facebook.” |
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5 Tech Trends Changing the Way We Buy Fashion and Food to Home Goods and Travel Jaunts [CO]
These digital solutions are poised to gain meaningful adoption by consumers and brands alike, experts say, reshaping how we purchase a range of goods and services. |
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Micro & Last Mile Fulfillment
Amazon launches same-day delivery from select retail stores, including PacSun and Diesel [TechCrunch]
Amazon announced that Prime members in some U.S. metro areas can now get same-day delivery from select retail stores. At launch, members in or around Atlanta, Chicago, Dallas, Las Vegas, Miami, Phoenix, Scottsdale, Seattle and Washington D.C. can shop from PacSun, GNC, SuperDry and Diesel on the Amazon app and Amazon.com and receive their items the same day.
America’s biggest warehouse is running out of room. It’s about to get worse [Reuters]
Experts have warned the U.S. supply chain would get hit by the “bullwhip effect” if companies panic-ordered goods to keep shelves full and got caught out by a downturn in demand while shipments were still arriving from Asia. |
Uber’s Delivery Gains Place Platform Squarely in Amazon’s ‘Last Mile’ Crosshairs [PYMNTS.com]
For Uber, its platform is the launching pad, the point of pivot that helps the company broaden its horizons, branching out beyond ride-hailing. And with its continued surge in deliveries — on the part of restaurants and retailers — the company bumps up against Amazon in what might be termed the battle of the last mile.
UPS pilot program aims to deliver more packages in fewer stops [SupplyChainDive]
UPS is in the midst of a pilot to improve package volume density on driver routes and save on delivery costs, CEO Carol Tomé said. The pilot involves an unnamed, third-party technology company “holding” an order on an order management system until it can match another shipment to the same address. |
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Restaurants & Ghost Kitchens
After Securing $100 Million In Funding, Kitchen United Proves Ghost Kitchens Have Plenty Of Long-Term Potential [Forbes]
So far, this year hasn’t been kind to restaurant adjacent tech companies. Last month alone generated several headlines of layoffs at companies like Lunchbox, ChowNow and Nextbite, while ghost kitchen providers like CloudKitchens and Reef have struggled with some reputational issues.Through the turbulence, Kitchen United has remained steady. |
Robot cooks are rapidly making their way into restaurant kitchens [CNBC]
Robots have been making their way into kitchens nationwide as the technology becomes cheaper and finding workers becomes harder. Chipotle, Wing Zone, and White Castle are just some of the restaurant chains investing in robotics. Stellar Pizza, founded by former SpaceX engineers, built a touchless machine that fits in the back of a truck that can make pizzas in under a minute. |
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Virtual Restaurants May Need to Make Changes to Maintain Market Share [PYMNTS.com]
Virtual restaurants have become a mainstay of the restaurant industry, but until now, given the novelty of the model, there has not been a central body to hold them accountable when it comes to issues of safety and of intellectual property. Now, to hold onto the share gains they have made, virtual restaurants may need to slow down their expansions to focus on the quality of their existing locations. |
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Mall Talk
Los Angeles Shopping Center Shows Strength of Bricks-and-Mortar Retail [The Wall Street Journal]
High foot traffic at shopping centers like Plaza Mexico has been a pleasant surprise in the retail world as the U.S. has emerged from the pandemic. People who previously relied on online shopping are returning to bricks-and-mortar locations, especially those that offer experiences not found on the Internet. Investors are noticing.
This is the last Sears for hundreds of miles. What can it tell us about the state of malls? [RetailDive]
Fifteen years ago, there were nearly a thousand Sears department stores in the U.S. Now there are just a handful. Why that is has been well-documented — the short version is that the disappearance of Sears stores from the U.S. has followed a never-ending cycle of financialization and retail decline. The mystery today is of those that are still around, how are they doing and why do they still exist? |
Mall owners say retailers are still opening stores in spite of recession fears [CNBC]
The biggest shopping mall owners in the United States say retailers are still forging ahead with their plans to open new stores in spite of growing recession fears.Simon Property Group reported an occupancy rate at its U.S. malls and outlet centers of 93.9% as of June 30, up from 91.8% a year earlier. Retailers in the U.S. have announced 4,432 store openings so far this year, compared with 1,954 store closings.
Macy’s is expanding investment in strip malls with smaller stores [Marketplace]
With the fall of the shopping center has come the rise of the strip mall. Macy’s is the latest retailer to announce it’s expanding its presence at outdoor malls through the smaller-footprint concepts Market by Macy’s and Macy’s Backstage. But why exactly have strip malls become so popular, especially during the pandemic? |
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Mall Owner Centennial Buys Open-Air Company [ICSC]
Mall owner Centennial has been formulating a plan to reposition its properties, and now it has acquired an open-air, mixed-use company, Bayer Properties, to advance that cause. This week, Centennial acquired Bayer’s team, property management contracts and infrastructure, though not Bayer’s actual properties. |
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