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    The Week In News, But Shorter


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    The Week In News, But Shorter
    January 2 – 9, 2023

    January 2 – 9, 2023

    First, we’d like to wish you all a very happy New Year! (Are we still in the safe zone to say that? Hope so!) Then, we’d like to acknowledge what a not so happy start to the 2023 news cycle it’s been for retail. The first week of the year was rough! From layoffs to store closures, it seems as though 2023 is going to be the year of rebalancing (or at least that’s what we’re predicting.) And while it’s uncomfortable to watch, and hard to hear when it hits close to home, it does (in a way) make sense. Retail survived one blow after another in the past few years and continued to surpass expectations. At some point the other shoe had to drop; What does this mean for you? That strategic decision making is more crucial than ever, and that you need to spend your money and time more efficiently than ever. Subtle reminder that THAT is exactly what we are here to help you do.

    We would be remiss not to remind you that its a new year, and we have a new website. Check it out for a reminder on all the ways we can help soften the blow of 2023.

    This week, we did see some happy news; the pharmacy is taking a note from retail fulfillment, some malls are anticipating growth, and a new law in Arizona makes tipsy shopping a thing.  Find us over on Twitter or LinkedIn to see what else we’re keeping an eye on in the news.

    Digital Meets Physical

    Amazon will lay off more than 18,000 workers [CNN]Amazon says it plans to lay off more than 18,000 employees as the global economic outlook continues to worsen. Several teams will be affected, including the human resources department and Amazon Stores, according to a memo from CEO Andy Jassy shared with employees.

    Relationshop acquires grocery e-commerce provider Stor.ai [GroceryDive] Relationshop, a firm that offers online shopper engagement tools to retailers, announced Tuesday that it has acquired Israel-based Stor.ai, which provides regional grocers with e-commerce fulfillment services. The combined entity will operate under the Stor.ai name and blend Relationshop’s analytics and personalization technology with Stor.ai’s business helping retailers manage digital orders.

    Shopify launches new subscription product to lure big retail clients [Reuters] Shopify launched a new service aimed at big retailers that will allow them to select tools and services the Canadian tech giant offers and integrate it with their own online platform. The company said it had signed up toymaker Mattel Inc for the product, and was looking to bring other enterprise clients it works with, such as Glossier, Coty, Steve Madden and Staples, onboard.

    Stitch Fix cuts 20% of salaried staff, CEO steps down [RetailDive] Elizabeth Spaulding has stepped down as chief executive officer and founder Katrina Lake has returned to take the CEO reins as the company searches for Spaulding’s replacement. In a memo to employees, Lake said the company will also lay off 20% of its salaried workforce and close its Salt Lake City distribution center.

    Micro & Last Mile Fulfillment

    Amazon begins drone deliveries in California and Texas [Ars Technica] Amazon has begun delivering orders by drone. Amazon Prime Air is now operating in Lockeford, Calif. and College Station, Texas, delivering a small number of packages just in time for Christmas. Residents of both towns can sign up for the service, and Amazon will then confirm that the company can deliver safely to the customer’s address. Once an order is placed, the customer gets an estimated delivery time and tracking info.

    Walgreens Says It Is ‘Reinventing’ the Pharmacy With Micro-Fulfillment Centers [PYMNTS] The nation’s second-largest chain of drug stores said Thursday (Jan. 5) it is moving forward with costly investments in technology. Walgreens Boots Alliance told investors that the long-term benefits of its digital transformation strategy would offset near-term costs. The company is investing in digital technologies, including building out automated micro-fulfillment centers (MFCs) to reduce pharmacists’ workload.

    DoorDash can now return your packages for you [TechCrunch] DoorDash is launching a new “Package Pickup” offering that lets users request a delivery person to pick up their prepaid package from their home and drop it off at a UPS, FedEx or USPS location. The company began piloting this feature in March 2022 as part of a small beta test and is now officially rolling it out.

    Restaurants & Ghost Kitchens

    Survey: Most restaurants plan to expand in 2023 [Chain Store Age] Restaurants are bullish regarding growth in 2023 even as they expect continued increases in food and labor costs. Nearly 60% of respondents said they have growth planned in 2023. The “R365 State of the Industry Customer Survey” results represent more than 10,000 quick-serve, fast casual, casual dining, and fine dining participating locations across the United States.

    Restaurants Expect 2023 To Be All About Controlling Costs [RestaurantBusinessOnly 16% of the nation’s restaurants expect profits to increase in 2023, with 50% bracing to make less money than they did last year because of soaring expenses, according to new research. A survey by the National Restaurant Association also designated a third inflationary culprit to add to the Big 2 of labor and food costs: energy expenses.

    5 trends that will shape the restaurant industry in 2023 [RestaurantDive] Restaurants will experiment with dynamic menu pricing, cater to diners that are trading down and move away from ghost kitchens as inflation puts pressure on the bottom line, experts predict.

    Mall Talk

    Macy’s closing more stores in 2023. See the list. [AxiosThe department store chain confirmed that it will shutter four more stores in 2023 as part of its Polaris transformation strategy, which was first announced in 2020. As part of the Polaris strategy, Macy’s said it continues to “optimize and reposition” its store fleet to have a mix of mall and off-mall locations.

    Bed Bath and Beyond says it may not survive [CNNBed Bath & Beyond issued a grim message about its future, warning that a bankruptcy filing is a possible outcome for the company. There is “substantial doubt about the company’s ability to continue” because of its worsening financial situation, the home goods chain said in a regulatory filing.

    Westfield London to increase retail signings as major brands upsize stores [Retail GazetteWestfield London is looking to increase its physical retail footprint this year as major retailers open larger stores at its centre. The centre‘s operator Unibail-Rodamco-Westfield (URW) said a number of new fashion, dining and healthcare brands will more than triple the size of its store at Westfield London this January.

    ‘Sip and Stroll’ law takes effect at Arizona shopping centers [Chain Store Age] Shopping centers with at least 400,000 sq. ft. of gross leasing area will be able to obtain licenses that allow customers to leave bars and restaurants and explore the properties with pints and Pina Coladas in hand.

    How Malls Will Change in 2023, From New Tenants to Reimagined Department Stores [YahooDespite grim predictions from before the pandemic, malls have now weathered a global pandemic, widespread retail shutdowns and massive growth in e-commerce. However, certain changes are already underway as shopping centers adapt to the new demands and shopping styles of consumers.

    Retailers brace for tougher times and more frugal customers in 2023 [CNBCJanuary means high stakes for retailers as they close out the holiday quarter. Companies are under pressure to clear through excess inventory. Some economists and industry watchers anticipate a recession for the U.S.


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