Half of Americans Fear Shopping Online

Boing Boing: “A study by the Department of Commerce’s National Telecommunications and Information Administration found that half of American Internet users are ‘deterred’ from engaging in online transactions because of fears over privacy and security breaches … The survey’s respondents cited the risk of identity theft as their main source of anxiety, followed by privacy concerns over data collection by online services and the US government.”

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The ‘New’ Applebee’s: Hand-Cut & Wood-Fired

Business Insider: Applebee’s “is installing wood fire grills in all 2,000-plus locations across the US — a $40 million investment by the chain’s franchisees. The grills will completely change much of Applebee’s menu’s meal preparation, impacting 40% of items on the menu. It’s a major change that Applebee’s hopes will allow the chain to gain culinary credibility and stand out from the vast array of casual dining restaurants across the US, which have struggled to keep up in an era dominated by fresh fast casual chains.”

“You’re going to see it and hear it,” said Julia Stewart, the chairman and CEO of Applebee’s parent company DineEquity, Inc. “You’re going to literally smell it when you’re in the parking lot, and then you’re going to walk in and see it on the menu, and then you’re going to have a food server talk about it in a very excited way.”

“Beyond the grills, the chain is adding new items like hand-cut wood-fired steaks to the menu, training employees as meat-cutters, and remodeling locations across the US. It is also launching a $120 million marketing campaign, the largest in the company’s history, with a new creative agency.”

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365: Like A Playroom for Foodies

The New York Times: 365, “the much anticipated new grocery concept from Whole Foods Markets …feels like a sort of foodie playroom. Shelves, racks and refrigerated cases are splashed with bright primary colors and surrounded by exposed insulation and polished concrete floors. All the fixtures are low profile — the highest shelving rises just 72 inches. Electronic terminals are lined up, ready to accept orders.”

“Instead of a human sommelier, there’s Banquet, a wine app developed especially for 365 stores by Delectable. Want a bottle of special Frankies olive oil for $9.99? That’s a so-called green-and-gold product, the name for goods procured and sold exclusively at 365 and only temporarily available.”

The 365 stores will stock roughly 7,000 items, compared with 35,000 to 52,000 for a traditional Whole Foods. Meat is sold only in packages, lowering the cost of offering specialty cuts of meat served up by a butcher. The store will still sell a wide variety of organic produce, though its selection of conventional produce is wider … The 365-branded locations will have about 100 employees, compared with 250 to 500 in a traditional Whole Foods.”

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Lord & Taylor Is Coming Up Roses

Washington Post: Lord & Taylor “has ordered up a big roster of rose-emblazoned pieces, many of them exclusives from labels like Karl Lagerfeld Paris and Calvin Klein, that are meant to cater to the contemporary, trend-conscious shopper … In addition dresses and blouses, they’ve lined up offbeat items like rose-flavored gummy candies and rose-shaped temporary tattoos. And in some stores, the products will be featured in a shop-in-shop it calls The Birdcage.”

“It’s a major merchandising and marketing effort that executives hope will … telegraph a fresh, contemporary direction … without alienating the loyal shoppers who might fondly remember that the rose was a staple of Lord & Taylor marketing from 1946 until it was phased out over the last 20 years … The idea … to harken back to the company’s heritage … is a tactic retailers across all price points are turning to right now based on the belief that millennials will respond to this kind of storytelling.”

However, “the story of the rose may be so obscure and unfamiliar to young shoppers, it may be hard for them to even understand the collection as an ode to history and heritage.”

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The Rolling Stones, Incorporated

“For the past 50-plus years,” The Rolling Stones have “been among the most dynamic, profitable and durable corporations in the world.” Writing in The New York Times, Rich Cohen, author of The Sun & The Moon & The Rolling Stones, says they have used “strategies that any CEO or entrepreneur should keep in mind while playing the long game.” Among them: “Choose the right name. The band was originally called Little Boy Blue and the Blue Boys … Know what the market wants from you. Rather than trying to become new Beatles, as many other bands did, the Stones became their opposite.”

“Beg, borrow, steal. At a time when the British pop charts were filled with bubble gum, Brian, Keith and Mick Jagger turned to Chicago blues. Cut the anchor before it drags you down. The Stones were the creation of Brian Jones … But by the late 1960s, Jones was in trouble … He didn’t turn up for sessions, vanished on the road … Mick, Keith and Charlie Watts drove to Brian’s country home and fired him.”

“Never stop reinventing. The Stones have gone through at least five stylistic iterations: cover band, ’60s pop, ’60s acid, ’70s groove, ’80s New Wave. At some point, they lost that elasticity and ability to reinvent—they got old—but the fact that they did it so well for so long explains their inexhaustible relevance.”

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Gendered Shelves & Toy Segregation

The Atlantic: “Today, toys are more divided by gender stereotypes than they were 50 years ago, thanks to broader marketing shifts in the industry and worldwide … According to the sociologist Elizabeth Sweet, toy companies began intensifying their use of color-coded marketing and segregation of toys in the 1980s … Gender-based compartmentalization in stores and online is meant to help customers find what they’re looking for, but according to … Jess Day of the nonprofit Let Toys Be Toys, ‘it’s driven by a massive assumption about what a child might want’.”

“Let Toys Be Toys’s biggest target is segregation by aisle, because it reflects the infrastructure of toy companies, where separate divisions develop products for gendered shelves. The division ends up reinforcing gender stereotypes and making it more difficult for gender-neutral or gender-inclusive toys to find space in stores.”

“Still, many consumers seem happy to shop along gender lines, and gender-inclusive toys tend to be on the higher end of the market and target progressive parents with time and money to spend. But with the Internet encouraging greater awareness and enabling the production of countless new toys, a revolution within the industry could be on the horizon.”

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John Irving: A Study in Grit vs. Ability

The Wall Street Journal: “Most people would think of John Irving as a gifted wordsmith … But Mr. Irving has severe dyslexia, was a C-minus English student in high school and scored 475 out of 800 on the SAT verbal test. How, then, did he have such a remarkably successful career as a writer? Angela Duckworth (author of Grit) argues that the answer is ‘grit,’ which she defines as a combination of passion and perseverance in the pursuit of a long-term goal.”

“Though verbal fluency did not come easily to (John Irving) as a young man, what he lacked in aptitude he made up for in effort. In school, if his peers allotted one hour to an assignment, he devoted two or three. As a writer, he works very slowly, constantly revising drafts of his novels. ‘In doing something over and over again,’ he has said, ‘something that was never natural becomes almost second nature’.”

“It’s a similar story among the other groups that Ms. Duckworth writes about … including spelling-bee champions and sales associates: Grit predicts their success more robustly than innate ability. And there is no positive correlation between ability and grit. A study of Ivy League undergraduates even showed that the smarter the students were, as measured by SAT scores, the less gritty they were … To be gritty, an individual doesn’t need to have an obsessive infatuation with a goal. Rather, he needs to show ‘consistency over time. The grittiest people have developed long-term goals and are constantly working toward them. ‘Enthusiasm is common,’ she writes. ‘Endurance is rare’.”

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McNugget Reboot Targets Different Crowd

The Atlantic: “The reboot of the Chicken McNugget is a mechanism by which McDonald’s is continuing its effort to present itself as a ‘modern progressive burger company.’ Last year, the company announced the phasing out of chicken raised with antibiotics used in human medicine, said it would stop using palm oil linked to deforestation, and pledged to shift to cage-free eggs.”

“The revamped version of the Happy Meal staple will soon be free of artificial preservatives, instead containing lemon-juice solids and rice starch.”

“Through its rebranding process, McDonald’s has still managed to sell plenty of Chicken McNuggets, particularly to lower- and middle-income consumers who are concerned more about price point than about the impeachability of the company’s food sourcing. Instead, this tentative new McNugget is an effort to reach a different crowd. ‘There’s a smaller amount of consumers who don’t eat them, but might be willing to if they raised the bar on quality,’ said Darren Tristano, the executive vice president of the market-research firm Technomic.”

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There’s Nothing ‘Illegal’ About Retail Subscriptions

Bloomberg: “Adore Me is among a group of buzzy Internet retailers accused of sometimes placing customers into unwanted and hard-to-cancel retail subscriptions. Several of these companies have been hit with lawsuits alleging unfair business practices, including JustFab (apparel), Blue Apron (food delivery), and Birchbox (beauty samples). Adore Me is currently facing a lawsuit from a disgruntled subscriber.”

“There’s nothing illegal about retail subscriptions, of course, and many businesses with automatic renewals make the billing process crystal clear. Some services are transparent in their mission and describe themselves primarily as pay-each-month subscriptions, like razor seller Dollar Shave Club.”

“But weak and misleading disclosures are pervasive among subscription e-commerce businesses, says Francisca Allen, the deputy district attorney of California’s Santa Clara County. Allen pursued the JustFab and Stamps.com settlements, both of which included reforms to the companies’ websites. Consumers are losing tens or even hundreds of millions per year on unwanted automatic-renewal subscriptions, she says, and there’s not enough regulatory muscle to monitor and stop unfair practices.”

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Hardware Gone Soft: Apple Integrates the ‘Experience’

Quartz: “Apple’s big surprise in its quarterly numbers isn’t the end of 13 years of go-go growth but the emergence of Services as a very large revenue category … Services grew 10% in 2015, 15% in the December quarter, and now 20% in the last three months.” Consequently, “many on Wall Street and elsewhere have started to ask if Apple is going to treat Services as a separate business with its own profit & loss statement.”

“For Apple, this would be a momentous cultural shift away from its praised functional structure—one Tim Cook sees as fostering effective collaboration across groups such as operating system software, built-in apps, hardware, developer relations, and retail operations. The idea is for everyone to work together on the customer’s experience, as opposed to concentrating on an isolated goal: hardware revenue, App Store profits, or retail numbers.”

Apple “wins or loses through the experience it delivers to its customers. Once upon a time, revenue came mostly from its personal computers, small, medium, and large. Software and Services had one and only one purpose: pushing up personal computers’ volumes and margins. Hardware, software, and Services coalesced into what we now call an ecosystem. Over time, as a result of the size of the installed base of Apple devices, Services became substantial, the number two revenue category.”

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