FROM THE DESK OF DEBORAH WEINSWIG

Holiday 2021 Shopping: We Will Overcome Retailers have been taking nearly all possible actions to get goods on the shelves for this holiday shopping season, and the results now depend on supply chains and consumers—that is, on the supply side and the demand side. Let’s start with the supply side. Retailers placed their holiday orders months ago and are depending on ships and trucks to bring the goods to their warehouses and stores. US West Coast ports have been congested for many months now, and there are currently more than 100 ships waiting to unload their cargo, with more ships underway as the holidays approach. The congestion is also impacted by the need for workers to unload the ships as well as trucks (and drivers) or rail cars to send their contents throughout the country. There have been several solutions offered to help solve the port congestion issue. Options include unloading ships at other West Coast ports in California and Oregon, though many of them have lower capacity and face the same labor and transport issues. The US government has also jumped into the fray with a plan to allow West Coast ports to operate on a 24/7 basis. Several retailers such as Home Depot, IKEA and Walmart have taken matters into their own hands, chartering private cargo ships to gain more control in getting goods on their shelves. Challenges in recruiting and retaining employees adds a further hurdle to keeping inventory on shelves, with many employees hesitant to return to work on safety grounds. many retailers and fast-food chains are offering starting salaries of $15 an hour, and Amazon is offering signing bonuses of up to $3,000 and seasonal wages of $18 per hour, which may potentially be luring workers away from those that aren’t competitive. Adding to shopping challenges is the decision of many retailers including Best Buy, Costco, Dick’s Sporting Goods, Target and Walmart among others, to close on Thanksgiving Day, echoing decisions made last year. This saps some of the early excitement from the launch of the traditional holiday shopping season and means foregoing a day’s sales for retailers following their lead. The demand side appears to remain robust. We calculate that September retail sales (excluding gasoline and automobiles) increased by 11.1% year over year, representing the second consecutive month of double-digit growth and up 25.8% from two years ago. The University of Michigan Consumer Sentiment Index rose by 2.5 points in September to 72.8; however, the index declined slightly to 71.4 for the preliminary October figure. The more recent Conference Board Consumer Confidence Index showed a slight recovery in October. Then there is the question of whether consumers will show up in stores on Black Friday and further into the holiday season. Last year’s shopping season was very subdued due to concerns about Covid-19, which resulted in low turnout and few doorbusters on offer to attract consumers. This year’s big shopping days are looking similar for the same and different reasons—the Delta variant has spooked consumers, and with inventory potentially scarce, there is little incentive for retailers to offer deep discounts or other promotions. In our October 18 US consumer survey, we saw an uptick in consumers avoiding any public place, including shopping centers/malls and shops in general, likely due to concerns about the Delta variant. If these concerns continue, we expect consumers to do more of their shopping online this year. With supply chains still twisted, consumers may have to embrace alternative gifting methods this year. Indicators such as the unemployment rate, hourly wages and the wealth effect from housing prices suggest that consumers have the wherewithal to shop, and retail sales figures show that they also have the will. This could be the holiday season of homemade presents, gift cards, or presents acquired by shopping locally or in the secondhand market. US consumers will use their creativity to find gifts for their friends and loved ones amid shortages, and retailers will pull out all the stops to assist them.

US RETAIL AND TECH HEADLINES 

Allbirds Targets $2 Billion-Plus IPO Valuation (October 25) ChainStoreAge.com

• Sustainable apparel and footwear company Allbirds has targeted a $2.2 billion valuation in its IPO and is offering 19.2 million shares, priced between $12 and $14 each. The company filed for an IPO in August 2021.
• As per the new filing, the company’s revenue in its third quarter (ended September 30) is set to have risen 32% to $62.5 million amid higher sales at its brick-and-mortar stores. However, it expects loss for the quarter of $15–18 million, increasing from approximately $7 million in the same period last year, due to higher expenses.

Amazon Props Up Supply Chain To Meet Holiday Demand (October 25) ChainStoreAge.com

• Amazon has onboarded additional employees and strengthened its technology and transportation competencies to meet demand for the holiday season—emphasizing a supply chain environment dedicated to efficiency, safety and speed.
• Amazon stated that it has expanded its ports of entry across its network by 50%, increased partnerships in its ocean freight carrier network and doubled its capacity for container processing. The company is upgrading its customer demand forecasting and is working with its selling partners and vendors to ensure that products are available in fulfillment locations close to customers.

Fabric Raises $200 Million for Robotics-Based Fulfillment Technology   (October 26) TechCrunch.com

• Apparel and grocery e-commerce technology startup Fabric has raised $200 million in a Series C funding round led by Singapore-based investment firm Temasek Holdings, valuing the company at $1 billion. The robotics-driven fulfillment company focuses on micro-fulfillment centers and last-mile operations.
• Fabric stated that it will use the funding to move further into the grocery sector, including enabling customers, such as FreshDirect, Instacart and Walmart, to build their own marketplace-style operations.

Macy’s Black Friday Promotion To Run From November 3 to Thanksgiving  (October 25) ChainStoreAge.com

• Department store chain Macy’s will commence its Black Friday promotion on November 3, unveiling an exclusive Black Friday “Sneak Peek” event, and end on Thanksgiving Day on November 25. All Black Friday offers will be accessible via Macy’s mobile app and website.
• Macy’s is also expanding its digital offerings to cater to holiday season demand, offering an expanded 3D room planner service, contactless payment, livestream shopping and a restructured mobile app.

Target Strengthens Same-Day Fulfillment Services for Holiday Season (October 26) Company press release

• Target has introduced new omnichannel shopping solutions and services for the holiday season, including new delivery options. The company has added over 18,000 spaces for curbside pickup and expanded its offerings for same-day delivery via Shipt.
• New features also include “Shopping Partner,” which allows customers to send a proxy to collect orders, and “Forget Something,” enabling customers to order more items after an initial order has been placed via the Target app—allowing them to receive all their products simultaneously.

EUROPE RETAIL AND TECH HEADLINES

John Lewis Rolls Out Pop-Ups To Promote Anyday Brand (October 26) Just-Style.com

• UK department store store chain John Lewis has launched pop-up stores to promote its recently introduced Anyday range, located in shopping centers where John Lewis has an existing department store.
• The company aims to help customers learn more about the range at the pop-ups, encouraging them to buy online or from the nearby John Lewis shop. Launched in April 2021 as a homeware brand, Anyday expanded into fashion in September with 3,600 new items.

K-Group To Introduce Automated Fulfillment Systems in Partnership with Dematic (October 25) Company press release

• Finnish grocery chain K-Group is set to introduce an automated online grocery order fulfillment system at its K-Citymarket Ruoholahti hypermarket in Helsinki. The system will be equipped with 45 robots and is due to go live in the first half of 2022.
• According to the company, K-Citymarket Ruoholahti is among the busiest K-Group stores in terms of online grocery orders, making it the ideal location for introducing automation. The company has partnered with micro-fulfillment provider Dematic to develop the automated system.

Missguided Moves into Children’s Apparel (October 26) RetailGazette.co.uk

• Online fashion retailer Missguided has launched a children’s collection, MG Kids, with an age range of three months to seven years. The competitively priced assortment is inspired by celebrities, trending casualwear and matching “mummy and me” looks.
• The company stated that the expansion into childrenswear will complement its maternity range and act as a one-stop-shop for the “Missguided Mom” and her children.

REWE Opens Its First Trigo-Powered Autonomous Checkout Store in Germany (October 26) Company press release

• Israel-based autonomous checkout solutions provider Trigo has partnered with German supermarket chain REWE Group to open the grocer’s first checkout-free store in Cologne, Germany.
• The move marks Trigo’s expansion into the German market—it currently works with UK grocery retailer Tesco and Shufersal in Israel. Trigo uses artificial intelligence (AI)-powered computer vision and readymade hardware to transform stores into checkout-free experiences.

Uber Expands Partnership with Carrefour To Launch Rapid Grocery Delivery in Paris (October 26) Reuters.com

• Uber Technologies is expanding its partnership with French Grocer Carrefour to launch a 15-minute grocery delivery service in Paris, called Carrefour Sprint. The new offering is 15 minutes faster than services currently available and leverages dark stores operated by Carrefour-backed grocery delivery startup Cajoo.
• The new service will allow Parisians to order from a range of 2,000 items, including household products and fresh produce. The two companies plan to expand the service to other French cities in the coming weeks.

ASIA RETAIL AND TECH HEADLINES

Central Marketing Group Launches Digital Mall (October 25) RLI.UK.com

• Thailand-based beauty and fashion distributor Central Marketing Group has launched a virtual shopping mall in Thailand, in partnership with AIS 5G, the country’s largest mobile network.
• The digital shopping platform is divided into three sectors: beauty/home, fashion and watch station. It offers 20 international brands, including Calvin Klein, Clarins, Dyson, Fossil, Guess and Tommy Hilfiger.

Retykle To Expand into Singapore (October 26) InsideRetail.asia

• Hong Kong-based apparel resale e-commerce platform Retykle will launch business operations in Singapore—its first international market expansion. The move follows a successful funding round in March 2021. The platform has resold more than 150,000 products since its inception in 2016.
• Retykle Founder Sarah Garner stated, “With its growing appetite for eco-conscious fashion and lifestyle choices, Singapore was a natural second market.”

Hugo Boss Appoints New Managing Director in Greater China  (October 25) Company press release 

• German fashion retailer Hugo Boss has announced the appointment of Judith Sun as Managing Director for Greater China. Sun most recently served as Managing Director of Swarovski Crystal in Greater China and has previously worked for Adidas, Lee Cooper and Levi’s.
• Sun will be responsible for implementing the company’s strategic vision in the Chinese market and for the development of the company’s digital, retail and wholesale business in the country.

Intelikart Launches AI-Powered In-App Assistant “Champ” (October 25) NewsPatrolling.com

• Intelikart, an India-based company that assists small retailers with establishing e-commerce businesses, has launched an AI-powered in-app assistant, “Champ.” Champ will assist establishments such as clothing stores, produce vendors, manufacturers and restaurants.
• Intelikart stated that the tool has an affordable pricing policy, meaning small companies will not have to make a large investment. It will help to review seller activity and offer suggestions to support sales expansion.

Sunway Malls Ventures into E-Commerce, Launching Sunway eMall (October 26) TheSunDaily.my/Spotlight

• Malaysia-based mall operator Sunway Malls has launched a digital platform, Sunway eMall, bringing brands from all its seven malls onto a single online platform. The platform facilitates orders across all brands, offering consolidated delivery and free shipping.
• Shoppers can also purchase e-vouchers for Sunway eMall to be redeemed across any participating brand and earn reward points on their shopping to be redeemed on future purchases.