| August 15-21, 2022
 A report from CBRE showed that there were a record 37 signings for distribution center spaces of 1 million sq. ft. or more in the first half of 2022. Meanwhile, signings for spaces of a million-plus sq. ft. numbered just 24 in the first half of 2021. As noted in an article on the report from Chain Store Age, “It’s clear that increased consumer demand for product deliveries is what’s ignited this space race.” And we believe that’s true. In fact this week we also saw reports about the success of Walmart’s delivery program, and even Facebook Marketplace is now offering deliveries. So with that in mind, two things are true – providing at home deliveries AND maintaining space for inventory are table stakes for a successful retail company. How can property owners help retailers achieve these requirements? We have a few ideas…let’s chat!
This week we also saw news about adoption of Just Walk Out technology at a non-Amazon location, and similarly saw positive indicators for how consumers embrace technology in some very large retail spaces (ie stadiums!). We also heard about how inflation is having a surprise positive effect on the restaurant industry, and about how DTC brands are faring in the (almost) post-pandemic world. Anything you’d like to hear more about? Let us know over on Twitter or LinkedIn.
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Digital Meets Physical
QuikTrip taps Amazon Just Walk Out tech for checkout-free store first [RTIH]
US convenience retailer, QuikTrip, has opened a store in Tulsa powered by Amazon’s Just Walk Out technology. This is its first venture into the checkout-free space.Those visiting the new location will be able to insert their credit card at the entry gate to enter, shop like normal, and then leave.
Saks.com Raises More Capital [WWD]
Saks, the luxury e-commerce company, has raised more money to sustain its growth. Saks revealed that it had bolstered its existing asset-based revolving credit facility from $350 million to $450 million. Saks also said it closed on a $60 million “upsize” facility with Pathlight Capital LP. |
Survey: Consumers embrace high-tech stadium features [Chain Store Age]
A new survey reveals consumers are open to omnichannel and virtual experiences when they attend sporting and entertainment events. According to the survey, “Stadiums without Borders,” almost six in 10 (57%) surveyed consumers said they would love to pre-order food and drinks to avoid lines, and 53% think it would be amazing to engage with their favorite teams and artists in the metaverse (such as virtual “backstage/stadium” tours and meet-ups, shopping for merchandise, etc.). This sentiment was especially true of respondents who identified as millennials (65%) and sports fans (64%). |
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Amazon Tests TikTok-Like Feed in App [The Wall Street Journal]
Even Amazon.com wants to be a little like TikTok. Amazon is testing a feature in its app that would show users a TikTok-style photo and video feed of products for shoppers to share with other users. The test is currently visible to a small number of Amazon employees, according to a person familiar with it. |
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Micro & Last Mile Fulfillment
Amazon and Walmart Take Last Mile Logistics Battle from Main Street to Mumbai [PYMNTS]
The eCommerce war between Amazon and Walmart, global in scope, India looms as a key battleground — especially for the last mile which ultimately will decide the victor. India, after all, has a population of 1.4 billion individuals, and consumer spending, per sites including Statista, is about $304 USD equivalent. Internet penetration stands at about 47% of the population and is gaining ground (it had been in the low single digits as recently as 2007).
Walmart’s last-mile delivery service, Walmart GoLocal, tops 1M deliveries in year one [TechCrunch]
Walmart’s last-mile delivery service business, Walmart GoLocal, has topped 1 million deliveries in its first year, the retailer today revealed. The company offered a brief update on the state of its newer delivery business during its Q2 earnings call on Tuesday, where it noted that GoLocal had been growing its support of local merchants’ delivery operations and was also now on track to reach 5,000 pickup locations by the end of the year. |
Facebook Marketplace and DoorDash Team Up for Local Deliveries [The Wall Street Journal]
Drivers for DoorDash are delivering items that consumers purchase from Facebook Marketplace as part of a new partnership between the delivery app and Meta Platforms. The deal is an attempt to get more people, especially younger ones, to use Meta-owned Facebook, according to a person familiar with the plan. For DoorDash, the partnership boosts its ambition to expand into delivering more than food.
Home delivery fuels the signing of a record number of million-sq.-ft. warehouse leases [Chain Store Age]
Warehouse vacancies are low and rents are high, so retailers are signing leases for the biggest distribution center spaces they can find. A record 37 signings for distribution center spaces of 1 million sq. ft. or more weighted the list of top 100 industrial leasing transactions in CBRE’s industrial real estate report for the first half of 2022. Just 15 of the 100 were renewals, indicating that tenants were expanding their total space. |
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Restaurants & Ghost Kitchens
Restaurant Meals Become a Relative Bargain as Grocery Prices Soar [The Wall Street Journal]
Restaurants are taking on grocery stores over value, contending that eating out can be a better deal than cooking at home. They have some recent data on their side. Consumer prices at grocery stores and restaurants increased 13.1% and 7.6%, respectively, year-over-year in July, according to the Labor Department—the biggest inflationary gap between grocery stores and restaurants since the 1970s. |
July Was the Biggest Month on Record for Fast-Food App Downloads [QSR Magazine]
The top 10 quick-service restaurant apps in the U.S. were downloaded 12.1 million times in July, 16.3 percent more than those the month prior. Year-over-year in the month of July, downloads of the top 36 quick-service restaurant apps are up 42.2 percent. A download represents a new user and the first conversion on the mobile app customer’s journey. |
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People aren’t cutting back on tips even as inflation surges [CNBC]
Tips for wait staff and cashiers haven’t taken a hit despite inflation, according to new data.Aggregated sales data from Toast showed people tipped an average of 19.6% at full-service eateries and 16.9% at quick-service restaurants during the second quarter. The cost for food away from home rose 7.6% over the 12 months ended in July, according to the Bureau of Labor Statistics. |
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Mall Talk
Walmart reaches streaming deal with Paramount+ [Chain Store Age]
Walmart’s latest promotional partnership for its paid membership program involves a major streaming service. Members of the Walmart+ program will now receive free access to the “essential” tier of the Paramount+ subscription streaming offering. The subscription typically costs $4.99 per month and includes some paid advertisements. |
DTC’s very bad, no good earnings week [RetailDive]
The DTC space has been colored lately by a slew of layoffs at top players, with Glossier, Allbirds and Warby Parker all letting go of employees within weeks of each other. They’re not alone: Other retail darlings like Shopify and Klarna, and even mass merchant Walmart, have made cuts to their workforce in recent months amid decelerating e-commerce trends and record inflation. |
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In a bid to win back consumer spending, retailers are betting on travel [ModernRetail]
After a few months of mixed financial results, more brands and retailers are looking toward travel. Walmart recently partnered with Getaway, which lets guests stay in tiny cabins nestled in nature, to offer a mini-retail store at some of the hospitality company’s outposts. Meanwhile, other brands ranging from Kylie Cosmetics to The House of LR&C, a fashion house created by Denver Broncos quarterback Russell Wilson and singer-songwriter Ciara, are striking deals to sell their products through select airports. |
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