Pop-Up Shops Help Malls Compete

The Wall Street Journal: “Mall landlords are turning to short-term retailers known as ‘pop-up stores’ to attract shoppers and boost revenue as department stores and other tenants struggle to combat the growth of online commerce … Pop-up stores that introduce local brands, perform demos and offer shoppers an elite selection of products or allow them to interact directly with designers can help drive traffic to other tenants.”

“One big potential category: online retailers that don’t yet have a substantial bricks-and-mortar presence … For other retailers, a temporary space is also a way for established brands to offer new services. Auto maker Audi AG introduced Audi on demand in a San Francisco pop-up store. The service lets customers book Audi coupes, sedans, SUVs and convertibles by the day and have them delivered within the city limits.”

“In Westfield San Francisco Centre, the owner set apart the entire fourth level for pop-up shops, events and co-working space. The mall, which houses Bloomingdale’s and retailers such as Burberry and Kate Spade, said this ‘Bespoke’ project had seen success at appealing to shoppers seeking alternative experiences at malls and businesses looking to test to their prototypes.”


Airbnb ‘Keeps it 100’ for Hotels

Quartz: “Here is a very bad piece of news for hotels: Airbnb is hurting them on their most profitable nights. That’s per a recent report from UBS, which found that Airbnb is making it harder for hotels to charge through-the-roof rates on “compression nights”—i.e., nights where more than 95% of rooms are occupied. Hotels think about compression nights as a simple matter of supply and demand. When demand shoots up, usually because of a local event like a marathon or fashion show, hotels can raise their rates. Customers who wind up paying those rates often consider it price gouging.”

“Hotels have worried about Airbnb’s impact on their sold-out nights before. In July 2015, Pebblebrook Hotel Trust CEO Jon Bortz admitted during an earnings call that Airbnb was limiting what the company could charge for rooms during ‘leisure-driven’ conventions and events.”


Hershey Hugs & Kisses Its Hometown

The Wall Street Journal: “From the roller coasters at Hershey Park to the butterfly conservatory at Hershey Gardens, Hershey, Pa., was literally built on the generosity of its founder, the iconic chocolatier Milton S. Hershey. No wonder, then, that Hershey residents fret the tap might run dry if Hershey Co. is sold or merges with a suitor.”

“Hershey is a holdout from a bygone American era, when some 2,000 towns sprang up to serve one particular coal mine, textile factory or slaughterhouse. Many have faded as factories moved overseas and technological advancements led to job cuts … The same fate hasn’t befallen Hershey, where Kisses-shaped lamps burn bright above the downtown intersection of Chocolate and Cocoa Avenues.”

“Hershey’s resilience is due largely to the unusual strength of Hershey Trust … Milton Hershey founded the trust over a century ago, mainly to look after the Milton Hershey School for some 2,000 underprivileged children. It still does that, but today the trust also owns a resort and spa, an amusement park and a real-estate company in town.”

“Brad Reese, the grandson of the creator of Reese’s Peanut Butter Cups, which Hershey bought in 1963, spent his early years in what he calls “this very insular town.” He swam in the pool at the Hershey-built community center, and drank milk from the Hershey-owned dairy. ‘It’s a honey pot,’ said Mr. Reese, ‘the hand that feeds’.”


The ‘Give’ Registry Embraces Survivors

Slate: “The Give Registry is a brilliant new gift registry and ad campaign from Australian department store chain Myer and agency Clemenger BBDO Melbourne that uses the model of a wedding gift registry to provide linens, cookware, dishes, and other household basics to domestic violence survivors.”


Audi To Offer Stoplight Insight

The Washington Post: “Audi will debut software in select 2017 models that communicates with municipal traffic light systems to predict when lights will go from red to green. Some cities already monitor traffic patterns, and Audi and its supplier, Traffic Technology Services, will harvest that data and use it to tell drivers how long they’ll be sitting there.”

“The software will appear in select 2017 Audi Q7, A4 and A4 all-road models with Audi connect, a data subscription service that comes free on all new Audis. Audi expects to have the system running in at least five major metropolitan cities by the end of the year. Those cities will be announced within the next month, a company spokesman said.”


Home Depot: Retail ‘Oasis’ Against Amazon

The Wall Street Journal: “Do-it-yourself chains Home Depot Inc. and Lowe’s Cos. appear to have built a retail oasis mostly walled off from the reach of online behemoth Amazon.com … Executives from the home improvement chains cite a litany of favorable housing trends for their good fortunes. New households are being formed and housing turnover remains steady. Millennials are even willing to buy homes … All that spurs trips to large chains to pick out appliances and paint colors, and plan projects around the home.”

“But the e-commerce giant doesn’t have a toehold in large parts of the home improvement space, like lumber, paint and gardening supplies. Home Depot says just 25% of its business—smaller, easy-to-ship items like power drills and small hand tools—faces tough online competition.”

“That doesn’t mean either chain is immune to Amazon. A UBS survey in June found that 11% of consumers planning a home improvement project themselves planned to buy something from Amazon. That is far behind the 36% who said they planned to shop at Home Depot and the 21% at Lowe’s, but up from just 7% a few months back.”


Grocery Spoils Target’s Profits

The Wall Street Journal: “Target Corp. has a problem in its grocery aisles: Shoppers aren’t visiting often enough to buy the retailer’s fresh meat, fruits and vegetables before they spoil … The issue, in part, is that Target’s supply chain wasn’t built to transport items with a short shelf life … Perishable foods, which usually are the big traffic drivers at most grocery stores, have been a drag on Target’s profits.”

“Shifting more control to a third-party vendor would move Target in the opposite direction of its biggest competitors. Wal-Mart Stores Inc., which gets more than half of its U.S. revenue from grocery, has invested in infrastructure to transport fresh foods on its own.”

“Target has made an aggressive push to add organic and gluten-free brands … Target also has spent more than $1 million per store to improve the look and inventory management of 25 locations in Los Angeles. The refurbished grocery area features new lighting and signage that highlights the organic and fresh products. The stores now get more frequent deliveries and carry more localized products. But rolling out those changes to all 1,800 Target stores nationwide would require a massive investment, analysts say.”


Combrr: Like Uber for Beach Eats

The New York Times: “It’s called Combrr, and it will soon allow people to buy items from concession stands from their towels, avoiding lines that lately stretch clear across the (Rockaway Beach) boardwalk.”

“Combrr works a lot like Uber: Customers drop a pin at their location. Vendors can accept or decline an order, and customers can track its progress from the app. There’s a $5 delivery fee, and the entire transaction, including the tip, is done digitally, bypassing the city’s requirement for a permit to sell items on the beach. But in addition to geolocation technology, Combrr relies on customers’ selfies and instructions. A sample note: ‘We’re wearing pink bikinis sitting under a polka-dot umbrella on 99th’.”

“The Rockaway Beach concessions, which appeared in their present artisanal incarnation in 2011, have been credited with turning the beaches into culinary hubs. So far, the seaside food scene has remained charmingly low-tech — operating out of sandy-floored bunkers and brightly painted shanties with surfboard racks … Combrr, which is free, will be available not long before the concessions close, a week after Labor Day.”


Binu Binu: Soap as Body-Soul Exorcism

The New York Times: “For the Toronto native Karen Kim, 36, the memory of her Korean grandmother buffing her body when she was 5 years old left a lasting impression … Something about the purity of a simple “soap and water” beauty routine stuck with Kim. So much so that last spring, she left her job in fashion at La Garçonne in New York City … to try her hand at soap making, reinterpreting the old-fashioned traditions of Korean bath life into a line of modern cleansing goods.”

“Called binu binu (or ‘soap soap’ in Korean), it comprises six restorative bars, all made with a base of boricha, a barley tea that’s prized for its detoxifying powers.”

“Each bar starts with a story, many of which include strong female characters in Korean culture. Her Haenyeo Sea Woman soap, for example, is an homage to the haenyeo deep-sea divers of Jeju Island … Her blend of black Hiwa Kai sea salt, seaweed extract and peppermint oil riffs on the bracing feeling of plunging into the ocean. Others, like her Shaman Black Charcoal soap, conjure up the modern mudang shamans … the essential oils in the charcoal soap — lavender, cedarwood and clary sage — are often used in purification ceremonies and provide a deep cleanse that, she says, is akin to ‘an exorcism’ for the body and soul.”

“Kim cuts the bars by hand, forming monolithic shapes inspired by the severe blocklike aesthetic of Donald Judd. ‘I love the idea of soap being a little sculptural element in your bathroom,’ she notes.”