50 Ways to Kill ‘Pokémon Go’

The Wall Street Journal: “Already some local businesses lucky enough to be near a key location have latched on to Pokémon Go … one New York pizzeria manager who dropped a ‘lure’ in the game for $10 to attract trainers to its proximity—and business spiked 75%. A Brooklyn bar noted that the Pokémon inside were for paying customers only … ‘sponsored locations,’ where companies would pay to become locations in the virtual world in order to drive foot traffic, will be coming to the game.”

“For example, a brand could pay for Wi-Fi at a popular Pokémon location. Or hand out samples … Or put up real world signs or video screens touting their message.”

“Dario Raciti, U.S. director of Zero Code, the gaming and virtual reality division of OMD … noted that one of the worst things the creators of the app could do would be to overload the game with ads, turning every Pokémon adventure into a walk through the virtual version of a billboard-filled Times Square.”

Meanwhile: “Gizmodo has learned that … every McDonald’s restaurant in this country will either be a PokéStop or a gym.”

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Amazon Is Dropping List Prices

The New York Times: Amazon “built a reputation and hit $100 billion in annual revenue by offering deals. The first thing a potential customer saw was a bargain: how much an item was reduced from its list price. Now, in many cases, Amazon has dropped any mention of a list price. There is just one price. Take it or leave it.”

Larry Compeau, of Clarkson University comments: “They are trying to figure out what product categories have customers who are so tied into the Amazon ecosystem that list prices are no longer necessary.”

“In some categories, like groceries, Amazon seems to be using just one price, the buy-it-now price. If Amazon brings the milk and music into your house, not to mention videos and e-books and the devices to consume them on, as well as a hot dinner and just about any other object you could want, that presents a pricing challenge of a different sort. Untangling what those deals are worth — as opposed to what they cost — is probably impossible.”

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Project Sync: Home Depot Streamlines Shelves

The Wall Street Journal: “Instead of filling its warehouse-style racks to the ceiling with Makita drills, rolls of Owens Corning insulation and cans of Rust-Oleum paint, Home Depot wants fewer items on its shelves and it wants them to be within customers’ reach … It is a shift happening across the retail sector as companies try to figure out ways to profitably serve the growing needs of online shoppers while making their network of stores less of a financial burden.”

Home Depot has “instituted ‘Project Sync,’ a series of changes that include developing a steadier flow of deliveries from suppliers into its network of 18 sorting centers … When the shipments get to stores, workers move them right to the lower shelves, eliminating the need to store and retrieve products from upper shelves using ladders and forklifts … Savings can be used to have more workers on the floor or finding orders for shoppers who are picking them up.”

“This also keeps stock from collecting dust out of reach. ‘You would stack it high,’ says Jessica Thibodeaux, manager of a Home Depot just outside Houston, ‘but it wouldn’t fly’.”

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Indie Bookstores: Something Better Than Amazon

The New York Times: “The pronounced stock shortage inside the Librairie des Puf … is not the result of an ordering mistake, but the heart of the shop’s business model. There are books, but they are not delivered in advance from wholesalers. They are printed on request, before the customer’s very eyes, on an Espresso Book Machine … It is a radical reinvention of a store that first opened its doors in 1921.”

“Independent bookstores … are beginning to carve a path out of their business’s decade of decline. ‘It’s an industry which is very much starting to rebound,’ said Nick Brackenbury, one of the founders of NearSt,” which “aims to help local shops adapt to the needs of the modern customers by making local shop inventories ‘shoppable’ from a smartphone, allowing customers to search for titles, find local stores that sell them and see routes there.”

“We just want local stores to be able to offer customers something which is just better than Amazon,” Mr. Brackenbury said.

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Small Bore: Is Apple Thinking ‘Different’ Enough?

“Apple’s view increasingly feels like an outdated way of thinking about tech. Many of its competitors have been moving beyond devices toward experiences that transcend them,” writes Farhad Manjoo in The New York Times. These new technologies exist not on distinct pieces of hardware, but above and within them … it’s hard to tell if Apple is thinking big enough.”

“Apple still seems to view online services as add-ons to its devices — not as products or platforms that rise above them.” For example: “Siri, as Apple is positioning it, is becoming a better app launcher for your phone … But it’s not clear that it’s becoming a truly intelligent assistant.”

“One problem is that the new Siri will not integrate with all kinds of apps … It’s hard to shake the suspicion that Apple is using Siri to give its own apps a leg up … Another problem is that Siri is still hopelessly tied to each Apple device … If Siri is an intelligent assistant, why … can’t she call Uber from the cloud, regardless of which device you happen to be using?”

“Google, Amazon and several start-ups seem to be rushing headlong to build such a system. But … I’m not sure Apple is,” Manjoo writes. “It’s taking a more moderate app-based, device-centric path. Many of its voice features will be fine — useful, even. But it sure isn’t pushing for a revolution.”

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The Future of Grocery: Yoga & Bike Repair

The Wall Street Journal: Shoppers looking to pick up milk and eggs may have other reasons to spend time at their local supermarket: yoga classes or a spa treatment, perhaps. Under growing pressure from discounters and online rivals, supermarkets are trying to transform themselves into places where customers might want to hang out rather than just grabbing groceries and heading home.”

“In Phoenix, a Fry’s Food Stores, part of a chain owned by Kroger Co., features a culinary school and a lounge with leather couches perched next to a wine bar. A Kroger store in Hilton Head Island, S.C., offers a cigar section to complement its wine cellar that stocks $600 bottles. Whole Foods Market Inc. has a putting green outside its Augusta, Ga., location and a spa offering peppermint foot scrubs and facial waxing in a Boston store. Elsewhere, it has bike-repair stations. A ShopRite store here in Hanover Township, near New York, runs a fitness studio with yoga, barre and Zumba classes and has a cosmetologist on weekends.”

“Most of these enhanced stores appear to be located in affluent suburbs and city neighborhoods—places where shoppers are more inclined to order groceries from e-commerce sites or meals from services such as Blue Apron … Some concepts have fizzled. The Fry’s in Phoenix made its debut in 2010 with a car wash but discontinued that after it didn’t catch on, a Kroger’s spokesman said. The cooking classes, by contrast, have doubled in size since the school opened, and the store offers at least a dozen sessions a week, he said.”

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Price Trap: Beware the Amazon ‘Buy Box’

The Washington Post: “Researchers at Northeastern University tracked pricing of 1,640 of the best-selling products on Amazon’s site over four months. In particular, they were examining what prices were featured in what’s known as the ‘buy box,’ the area on the right side of an Amazon product page that invites you to add an item to your cart … It has been estimated that about 82 percent of sales on Amazon are made through that box.”

“Amazon relies on an algorithm to determine which seller ends up in the buy box for any given product … the process is significantly more likely to give that spot to sellers who use real-time pricing, in which software is used to automatically optimize prices on the fly based on what competitors are charging.”

“Here’s why that matters: Most sellers using that kind of pricing model don’t have the lowest prices on the site. In fact, the researchers found that 60 percent of those that use real-time pricing have higher prices than other sellers of the same item on Amazon. Most of the time, the price difference is about $1, but … researchers found ‘many’ cases where the price difference was in the $20 to $60 range.”

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Amazon Has Bullseye on Target

Quartz: “Target has a supply problem. The discount retailer has too much unsold merchandise on its shelves, and hasn’t figured out how to get all of it to customers quickly. To make matters worse, a new survey shows that two in five Target shoppers are also members of Amazon Prime and among those that aren’t, one in five are considering a membership in the next year.”

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“Target has made some attempts to keep up: Participants in the company’s REDCard credit card program get free shipping on all online orders. ‘I do think we can get more credit for REDCard than we potentially have,’ Target’s chief digital officer told Recode last month.”

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Treasure Hunt: The Joy is in the Journey

The Wall Street Journal: “The internet isn’t just a way to speed up the shopping experience; it is a tool to draw it out. Consumers enjoy the anticipation of a big-ticket item, in contrast to the quick fix that comes from an impulse purchase at an inexpensive, of-the-moment fashion chain … The result of all this due diligence: Shoppers are feeling much more satisfied with their purchases.”

“Stylitics, a fashion technology and analytics company, partnered with market research firm NPD Group to look at this behavior. Handbags are a natural fit for this thoughtful approach, as women seek to combine fashion with function. The study found roughly four in 10 women ages 18 to 34 said they started thinking about their most recent handbag purchase more than a month in advance. Six in 10 said browsing online stores was a major influencer in their handbag shopping.”

“Once shoppers go through the drawn-out process and make up their minds, they are happier. Handbag return rates at luxury online retailer Net-a-Porter are among the lowest across the site.”

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