Short Staff + Long Lines = Retail Meltdown

The Wall Street Journal: “Over the past 12 months, 86% of U.S. consumers say they have left a store due to long lines, according to a survey conducted by Adyen, a credit-card processor and payment system. That has resulted in $37.7 billion in lost sales for retailers, Adyen estimates.”

“Retailers typically set staffing as a percent of sales, but a growing body of research suggests it should be based on foot traffic. The problem is twofold: Many retailers don’t track traffic and even if they do, they are reluctant to add labor, which is already among their biggest costs.”

“After installing cameras last year, Cycle Gear Inc., a 130-store chain that sells motorcycle apparel and accessories, noticed sales dipped during the afternoon at its Orlando, Fla., store even though it was packed with shoppers. ‘That told us the salespeople were overwhelmed,’ said Rodger O’Keefe, a vice president. ‘We added two more salespeople during those hours, and sales have been up since then’.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

The Costco Pizza Sauce Robot

Reader’s Digest: “Costco works hard to make sure their pizza is practically perfect every time, and it’s all thanks to a secret pizza robot. This magical machine evenly distributes their sauce on the pizza dough… The gourmet gadget is actually pretty mesmerizing to watch in action.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

The New ‘Choice’ in Convenience Stores

The Wall Street Journal: “In 2,700 square feet, about the size of a Chipotle, Choice is open 24 hours a day and sells staples like pasta, milk and yogurt, specialty items like quinoa, and an array of fruits and vegetables. You’ll also find beer and kombucha on tap, and snacks that skew toward multigrain chips and seaweed but also include Doritos. The interior sports white subway tile, reclaimed wood and other design codes that telegraph hip sustainability. What is Choice? A restaurant? A grocery store? Neither, said founder Mike Fogarty. It’s a convenience store.”

“Choice Market, Green Zebra Grocery in Portland, Ore., Foxtrot in Chicago, the Goods Mart in Los Angeles and Amazon Go in Seattle are open long hours (if not 24) and use the same small spaces to offer a wider range of options. You could meet a friend for coffee, pick up a few reasonably wholesome items for dinner or even fill up a growler of beer … Traditional players, too, are adding hardwood floors and more attractive lighting. Wawa, the mid-Atlantic chain famous for its hoagies, is rolling out customizable salads across their 790 stores and testing delivery.”

Lisa Sedlar, the founder of Green Zebra Grocery, comments: “People will come in and say this isn’t a convenience store, And I say, ‘Of course it is.’ We are redefining what it means to be a convenience store in America.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Micromerch: Statements for Daily Life

The New York Times: Here comes micromerch:”personal merchandise for niche public figures and celebrities (or even not-yet celebrities) made possible by innovations in manufacturing and distribution, and with mechanisms greased by the ease of the internet. Consider it the modern-day equivalent of the private-press LP or the small-batch zine, amplified for social media and very late capitalism … small-batch merch — a couple dozen to a couple thousand items — can be made available for almost anyone, from emergent social media or reality TV demicelebrities to casual dadaists who toy with the dissemination of ideas in the modern marketplace. In an era when personal branding is presumed, no following is too small to monetize.”

“Want to show support for Sean Bryan, a.k.a. the Papal Ninja, an American Ninja Warrior contestant and lay minister? There’s a shirt (and laptop case) for that. Enthralled by the 1980s sunglasses worn by the rubber-legged teen social media star Roy Purdy in his absurdist dance videos? For a while, he sold them, too. Obsessed with Gordie, the French bulldog owned by Alex Tumay, who engineers Young Thug’s records? Buy a shirt.”

“Peloton, the home indoor cycling business, has a stable of a dozen instructors, and sells merch inspired by each. Jill Foley, Peloton’s director of boutique apparel, said the company has sold hundreds of T-shirts and tank tops with instructor catchphrases like ‘It’s Not That Deep’ (Cody Rigsby) and ‘Sweat Sing Repeat’ (Jenn Sherman).” She comments: “We’re getting messages to people in this micro way. We’re in people’s homes in their daily life.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Branding The Brandless Brand

Business Insider: Brandless, “which sells food and consumable essentials all for $3 and pitched itself as the “Procter & Gamble for millennials,” first launched in July … The brand is now moving into the physical world with a pop-launching in May, called ‘Popup with a Purpose.’ It will be a ‘three-dimensional experience of the values of what Brandless is really about,’ according to CEO and co-founder Tina Sharkey. The Brandless brand will be on display, but no products will be for sale. Instead, the 3,500 square foot location on Melrose Avenue in Los Angeles will be offering samples, and opportunities to “live, learn, and love with intention,” according to a press release.”

“The pop-up will be interactive and there will be panels, workshops, and talks by experts in the fields associated with the areas of food and wellness that Brandless has staked out. Along with the pop-up, Brandless is also launching a lifestyle blog that will be focused on educating consumers of the claimed benefits of, for example, ‘tree-free toilet paper’.”

“Sharkey sees Brandless as filling gaps where the ease of shipping and low point of entry can allow people to try new things — like gluten-free baking mix — that would otherwise be either too expensive or just hard to find locally in some areas … The B.more membership program, which previously only lowered the free shipping order threshold to $48 dollars, now makes all orders ship free. The company has since started focusing on offering B.more to repeat Brandless customers.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Wearhouse Hero: Boosting App-arel Sales

The Wall Street Journal: “Like many traditional chains, Men’s Wearhouse has had better luck converting store visits into sales than it has with shoppers browsing its website. Executives say they are turning to new technology created by a startup called Hero in hopes of improving results while still using the company’s existing workforce. Over the holiday shopping season, the company tested out the app in about 100 stores. It found that online shoppers were more likely to buy an item after chatting with a store worker, prompting an expedited rollout to the company’s remaining stores.”

“By September, more than 3,000 workers across both Men’s Wearhouse and Jos. A Bank will be able to chat with online shoppers. The employees can wave their phones over product tags to generate web links to purchase the items and set up appointments through the app … The app connects an online customer with an available salesperson in the nearest store. To ensure that employees don’t become too pushy, it lets shoppers rate them, much in the same way an Uber passenger rates a driver. The video chat is one-way: Shoppers see into the store, but workers can’t see the customers.”

“Alistair Crane, the CEO of Hero, said his technology is built on the fact that store workers were already texting customers and using social media sites, like Instagram, to showcase products.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Grocery: The New Toy Store?

The Washington Post: “A Barbie by the broccoli? Hot Wheels by the hot sauce? Some toy experts say that stocking toys at supermarkets is a recipe to boost the industry as Toys R Us begins to close all 800 of its U.S. stores. Toymakers could see a bump in sales by targeting grocery stores — and their customers prone to impulse purchases with fidgety kids in tow. That’s the argument of industry experts who say that as the iconic toy behemoth fades away, the country’s more than 38,000 supermarkets may present a bright path forward.”

“David J. Livingston, a supermarket research analyst, said he doubted grocery stores would ‘go overboard’ with toy displays. Moreover, he thinks parents would quickly grow irritated by toys and the distractions they bring. Some parents don’t bring young kids grocery shopping to avoid the begging and the hassle, Livingston said. And for the parents who do bring their kids along, they’re more likely to be swayed by a free cookie from the bakery or a free piece of fruit at check-out, Livingston said.”

“Still, millennials think of supermarkets as a one-stop shop where they can buy cosmetics and other products while fitting in a grocery run, said Steve Pasierb, president and CEO of the trade group The Toy Association. In the wake of Toys R Us downfall, toy makers will be on the hunt for new places to find customers.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Alibaba Opens Door to O2O Retail

The Economist: “The season for the best xiaolongxia (little dragon shrimp) is just beginning, and so on a recent evening four young friends tucked into a pile of steaming-hot crayfish. But rather than sitting in a restaurant they were at a table surrounded by supermarket aisles stocked with nappies, baby formula and cooking oil … ‘Eat-as-you-shop’ is one innovation of Hema Xiansheng, a chain of fancy supermarkets. And these shops are themselves the showiest elements of a bid by Alibaba … to master ‘online-to-offline’, or O2O, retailing, in which customers use digital channels to buy from physical businesses. Alibaba currently runs 40 Hema stores in ten cities. It wants to open 2,000 in the next five years.”

“Alibaba is hoping to apply its online know-how to them with Ling Shou Tong, a free retail-management platform launched in 2016. Through it, shop owners can order products sourced by Alibaba from partners such as Procter & Gamble. It then uses its logistics affiliate, Cainiao, to ship them. Shops are given advice on what to stock based on Alibaba’s trove of data—plenty of dog food in pooch-loving areas, say. In return Alibaba gets valuable data on spending habits in poorer cities, especially among older shoppers who buy offline.”

“A clearer signal of Alibaba’s ambitions as a provider of services to other outlets came on April 2nd, when it bought the shares it did not already own in Ele.me, valuing the food-delivery platform at $9.5bn. These services span online tools for inventory management to marketing and smartphone payments. They also include labour. Ele.me’s network lets thousands of small restaurants ferry dishes to the doors of some of China’s 700m smartphone users. Through the acquisition Jack Ma, Alibaba’s founder, added 3m delivery people to the 2m of Cainiao, boosting the group’s ‘last-mile’ delivery capabilities.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Dept. of Social: Community Shopping

The Wall Street Journal: “Going to a department store might seem like simply shopping, but it’s also a chance to practice civil behavior, to appreciate beautiful things, to feel a connection to others. In the 1970s, Bloomingdale’s was considered a New York City attraction on par with the Metropolitan Museum of Art, which, according to Robert Hendrickson, author of ‘The Grand Emporiums,’ was Bloomie’s only real competition when it came to meeting a possible romantic partner.”

“Last spring, inspired by memories of the excitement of shopping in New York in the 1980s, Bergdorf Goodman’s fashion director Linda Fargo opened Linda’s at BG, an in-store boutique stocked with her personal picks in everything from high heels to Squirrel nuts. ‘Online is efficient,’ Ms. Fargo said, ‘but nothing can replace touching things, looking in people’s faces. Sensuality—that’s what we can offer people’ … Nordstrom executives appeared to be thinking along similar lines in 2013 when they hired Olivia Kim, formerly of New York-based Opening Ceremony, to make the store more relevant to younger customers.”

“As Nordstrom’s vice president of creative projects, Ms. Kim has initiated a series of pop-up boutiques and brought in buzzy, Instagram-friendly designers like Marine Serre and Jacquemus. But her proudest achievement, she said, is seeing Nordstrom used as a hangout space by customers: ‘Not everything needs to be transactional. I’m more interested in that they’ve learned something, that they feel energized and excited’ … As Harry Gordon Selfridge, founder of Selfridges, once said, ‘a store should be a social center.’ Department stores are taking note.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

We Never Close: 24/7 Adventures

The Wall Street Journal: “Apparently short of actual adventures, teens and 20-somethings are sneaking into chain stores and restaurants, including McDonald’s, Walmart , Chuck E. Cheese’s and IKEA, staying all night and posting videos online as evidence. A YouTube search for 24-hour overnight challenges turns up 1.6 million results. A closer examination of the phenomenon reveals something thrill-seekers didn’t expect—spending extended periods inside an empty chain store can be really, really dull.”

“The craze appears to go back to 2016, when Belgian youngsters hid inside an IKEA after it closed and then posted the video online. The fad soon spread to the U.K., where a boy slept overnight in an IKEA furniture store, worrying his family, who didn’t know where he was … Indiana college student Christian Perry said he was determined to finish the challenge at a Walmart Supercenter, however dull things got. Last May, he and a friend decided to spend a full 48 hours in one of the stores in Indianapolis. The Walmart is open around the clock. The pair needed a secret place to slumber and a way to stay sane.”

“Just minutes into the outing, Mr. Perry, who is 21 and studying computer science, realized he couldn’t bear Walmart’s music and needed a distraction. ‘I started reading labels after that,’ he said … The 13-minute video the friends posted on YouTube shows highlights of their itinerary. They looked at fish in the aquarium section. They read magazines, played games at the arcade and dribbled balls in the sports aisle … After hunkering down in the toilet-paper section the second night, the duo quietly slipped home. ‘It was one of the worst experiences of my life,’ Mr. Perry said.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail