FROM THE DESK OF DEBORAH WEINSWIG

Going to the Mall… To Try on Clothing Virtually Consumers are understandably squeamish in the current environment about going to the mall and trying on clothing that may have been recently tried on by someone else—particularly as it is not well understood how long the coronavirus can survive on fabric. Policies for segregating or sanitizing tried-on items vary widely by retailer, and the consumer has to trust that each retailer’s measures were indeed followed. Consumers are demanding and embracing several contactless elements throughout the shopping journey, from ordering to payment and delivery. It is therefore not surprising that they are also seeking out contactless options for trying on apparel. If technology can provide an effective virtual alternative to the physical trying-on experience, this would remove the need for sanitizing and restocking tried-on items, as well as reducing the significant expense to the retailer of receiving and processing items returned due to sizing issues. Real-estate company Brookfield Properties recently announced the nationwide rollout of fitting technology through FIT:MATCH studios across the US, which will have begun in three cities—Chicago, Dallas and Los Angeles—by mid-September. The two companies began testing the technology in a Houston mall in late 2019: 80% of shoppers entering the studio participated in the virtual experience, totaling 4,000 over a three-month period. According to the companies, feedback was generally positive, generating a high net promoter score. In a FIT:MATCH studio, each consumer is asked a couple of questions about fit preferences before being scanned; the technology captures 150 data points from the user’s body in about 10 seconds. This data is then processed using artificial intelligence (AI) to determine the best clothing fit for the individual. The user receives a unique FITCH ID and a link to a personalized apparel selection from participating brands; recommended items have a 90% or greater likelihood of being a good fit, according to FIT:MATCH. Over time, data built up about the user’s fit and style preferences ensure that recommendations continuously improve. The consumer can browse and purchase items via digital touchscreens in the studio, on the FIT:MATCH website, or on a smartphone. FIT:MATCH’s inaugural collection comprises four direct-to-consumer (DTC) brands—including Urban Savage and Samshék—and the platform plans to feature a selection of 15 other DTC brands. According to a 2019 survey by customer-experience solutions provider Narvar, 46% of returns are caused by items being an incorrect size, fit or color, and the cost of return deliveries is estimated by Statista to total $550 billion in 2020. If successful, the Brookfield-FIT:MATCH collaboration could therefore solve one of the most costly challenges in retail—returns—while providing a contact-light shopping experience. Many companies have attempted to solve returns issues related to fitting by using technologies such as smartphone cameras and AI. Still, there has been much difficulty in coordinating sizing between brands and manufacturing; for example, one brand’s “large” may be another brand’s “medium,” and the factory may have loose quality controls—leading to significant variation even in items of the same size. By offering personalized services to consumers, the FIT:MATCH solution removes the issue of this variation for the shopper. If more apparel brands adopt such sizing technology, consumers (as well as the industry as a whole) could greatly benefit from eliminating the aggravation and expense of having to return poorly fitting items.

US RETAIL AND TECH HEADLINES

Vroom Delivery Partners with 7-Eleven Hawaii (June 29) Company press release

• Online delivery platform Vroom Delivery has partnered with convenience-store chain 7-Eleven to offer e-commerce and home delivery to the latter’s customers in Hawaii. 7-Eleven Hawaii will initially offer home delivery of online orders in select areas of Honolulu, with plans to roll out the service across the islands.
• Vroom Delivery has partnered with over 20 additional chains to bring e-commerce and on-demand home delivery to its customers.

Google Adds Free Retail Listings within Google Search (June 29) TechCrunch.com

• Google has announced that it will bring free retail listings to the Google Search results page in the US. These free listings will roll out on mobile devices in summer 2020, followed by a desktop version at a later date.
• The new feature allows businesses to list their products for free in a panel that appears within Google Search. However, shopping ads will appear separately at the top of the page, marked in a similar way to Google’s other integrated ads.

Walgreens Partners with Microsoft and Adobe on New Platform (June 30) Company press release

• Retail pharmacy chain Walgreens Boots Alliance has expanded its existing strategic partnership with tech companies Adobe and Microsoft to develop a digital experience and customer insights platform. The platform allows the retailer to send emails and push notifications, while also managing consistent experiences for customers across desktop and mobile devices.
• The retailer will use both the Microsoft Dynamics 365 Customer Insights platform and Adobe’s Customer Experience Management (CXM) suite to provide customers omnichannel access to products and services.

Capri Full-Year Revenues Climb; Fourth-Quarter Revenues Drop (July 1) Company press release

• Luxury fashion company Capri Holdings reported an 11.3% year-over-year decrease in revenue for the fourth quarter and 6.0% year-over-year growth in revenue for the full year, both ended March 28, 2020. Total online sales increased in the fourth quarter and continued to accelerate in the first quarter of fiscal year 2021 to a double-digit gain compared to the previous year.
• The company stated that it has reopened approximately 70% of its 455 retail stores in the US region and expects to open the majority of remaining stores by the end of the second quarter. Net inventory for the period decreased 13% year over year, at $827 million for the quarter.

Brookfield Properties To Bring AI-Based Apparel Shopping to Three Centers (June 30) Company press release

• Mall operator Brookfield Properties has teamed up with FIT:MATCH to roll out a new contactless fitting experience based on 3D and AI technologies.
• The partnership will officially launch the contactless FIT:MATCH Studio experience in three shopping centers, beginning with Oakbrook Center in the Chicago area in mid-August, followed by the Glendale Galleria in the LA area and Stonebriar Centre in the Dallas area in mid-September.

EUROPE RETAIL AND TECH HEADLINES

B&M Group’s First-Quarter Revenues Increase Nearly 28% (July 1) Company press release

• UK-based variety retailer B&M Group has reported 27.7% year-over-year growth in revenues for the quarter ended June 27, 2020. B&M UK posted revenue growth of 33.7%, including comparable sales growth of 26.9% in comparison to 3.9% growth reported in the previous year.
• B&M’s French business Babou posted a 25.6% year-over-year decline in revenues for the quarter, including comparable sales growth of 32.0% since reopening on May 11, 2020.

Sainsbury’s Reports Strong Rise in Grocery and General-Merchandise Sales (July 1) Company press release

• Supermarket chain Sainsbury’s has reported that its total retail sales, excluding fuel, were up 8.5%, and comparable sales, excluding fuel, were up 8.2% during the 16 weeks ended June 27. The retailer’s total grocery sales were up 10.5% (versus up 2.0% in the prior quarter), general-merchandise sales, including Argos sales, were up 7.2% (versus down 1.3% in prior quarter), and clothing sales were down 26.7% (versus up 2.5% in prior quarter).
• Within general merchandise, Argos sales were up 10.7%, despite all standalone stores being closed for the majority of the quarter (shoppers could buy online for delivery or collection from Sainsbury’s stores), while general merchandise sales were down 9.3% in Sainsbury’s supermarkets. The retailer stated that operating costs remain high; its cash position is strong; and it will fully repay the £500 million ($620.6 million) borrowed under the revolving credit facility earlier this year.

John Lewis’s New Chairman Plans Cost-Cutting Drive (July 1) Standard.co.uk

• John Lewis Chairman, Sharon White, informed 80,000 staff of the partnership (which includes Waitrose) that its coveted bonus will likely be scrapped next year as the company outlines a major cost-cutting drive. She also announced plans to permanently close an undisclosed number of stores.
• John Lewis reopened 20 stores with social distancing measures in June. The company also announced plans to reopen a further 10 stores since lockdown restrictions in the UK have now been eased for nonessential shops.

Laybuy Partners with PrettyLittleThing and Hype (June 29) ChargedRetail.co.uk

• Australian payment service firm Laybuy has collaborated with UK-based fashion retailer Pretty Little Thing (PLT) and fashion brand Hype to serve more customers with its “buy now, pay later” service. Both retailers plan to start with the service later this month.
• The service enables PLT and Hype’s customers to avail interest-free weekly payment instalments for their purchases.

Gucci Unveils AR Snapchat Lens (June 29) ChargedRetail.co.uk

• Gucci has introduced a new augmented reality (AR) tool on messaging app Snapchat, which enables users to virtually try on four pairs of shoes in the app. Shoppers can also use Snapchat’s “Shop Now” button to purchase the shoes directly via the app.
• Earlier this month, Snapchat announced a series of new features for brands: new “AR shoe-try-on” lens; a virtual-world display, “Local Lenses”; and an identifier tool, “Scan”. The AR lens is now available for users in Australia, France, Italy, Japan, Saudi Arabia, the UAE, the UK and the US.

Minipreço Introduces Online Shopping Service (June 29) ESMMagazine.com

• Portuguese supermarket chain Minipreço has introduced an online shopping service at www.minipreco.pt. Customers can select from a range of over 1,500 items and avail free delivery for orders over €50 ($56).
• The online shopping service will initially be launched in the city of Lisbon. The retailer aims to extend the service to the Greater Porto area as well as other parts of the country by the end of this year.

Lloyds Pharmacy Teams Up with Deliveroo To Deliver PPE in Under 30 Minutes (June 30) Company press release

• Lloyds Pharmacy has teamed up with delivery-service provider Deliveroo to offer contactless tracked delivery of personal protective equipment (PPE) and medical essentials to customers’ doorsteps.
• Customers can now order from a range of over 50 items from the pharmacy via Deliveroo’s app, including PPE equipment such as face masks, hand sanitizer and gloves. Once the order is placed, Deliveroo will deliver the items to customers’ houses in under 30 minutes. The service will be available at 16 stores from this week, and it is set to be rolled out to a further eight UK stores in the coming weeks.

Groupe Casino To Sell Its Subsidiary Vindémia for €219 Million (June 30) Company press release

• French retailer Groupe Casino has finalized the sale of its subsidiary Vindémia to automotive distribution and retail group GBH for an enterprise value of €219 million ($246 million). The sale proceeds are estimated at €207 million ($232 million), based on net financial debt and working capital requirement, of which €186 million ($209 million) was received on June 30, 2020.
• The sale is subject to authorization of the French competition authority. This takes the cumulative sum of proceeds from the non-strategic asset sales to €2.0 billion ($2.2 billion) since July 2018, out of a total €2.8 billion ($3.1 billion) signed to date.

ASIA RETAIL AND TECH HEADLINES

Alibaba.com Launches a Program To Help SMEs Go Global (June 29) Alizila.com

• Alibaba.com has launched its Project Sprout Up program to help small and medium-sized enterprises (SMEs) connect with business opportunities beyond their home countries and to boost their online trade capabilities. This program is a part of Alibaba Group’s Spring Thunder Initiative, which was launched in April 2020 to help SMEs stay afloat during the coronavirus pandemic.
• The Project Sprout Up program will help SMEs by shortening the onboarding time on the Alibaba e-commerce platform and lowering the barriers of entry by reducing the membership fee. The program will also offer AI-backed digital tools for sellers to unlock global business opportunities and expand their customer base.

Amazon India To Hire Additional 20,000 Temporary Employees (June 29) TimesOfIndia.com

• Amazon India has announced plans to hire a further 20,000 temporary employees in addition to the 50,000 seasonal job openings it had announced in May this year. The new positions are for customer support services in India, and the majority will provide work-from-home options as a part of Amazon’s “Virtual Customer Service” program.
• These positions are open in locations including Bhopal, Coimbatore, Jaipur, Kolkata, Mangaluru and Noida. Earlier this year, Amazon had announced that it plans to create about 1 million new job opportunities in India by 2025 by investing in logistics network, technology and infrastructure.

Tribes India e-Mart To Launch on August 15 (June 29) EconomicTimes.com

• The Tribal Cooperative Marketing Development Federation of India (TRIFED) will launch a specialized marketplace, called Tribes India e-Mart, on August 15. This platform aims to connect around 500,000 tribal artisans, enabling them to connect to national and international markets.
• The tribal artisans will be trained and asked to register as sellers on the website. This platform will offer around 500,000 products across 20,000 product categories, including home décor items, jewelry, textiles and metal crafts.

H&M Opens Online Store on SSG.com (June 30) FashionUnited.uk

• Swedish clothing retailer H&M has opened an online store on South Korean e-commerce platform SSG.com, which is owned by department-store chain Shinsegae Group. The store offers products from the H&M Home collection as well as H&M’s menswear, womenswear and children’s clothing.
• H&M opened its first physical store in South Korea in 2010 and launched its first online store in the country in 2016. The retailer currently operates about 34 retail stores in South Korea.

Reliance Industries To Acquire Future Group (June 30) EconomicTimes.com

• Indian conglomerate Reliance Industries is reportedly planning to buy the retail businesses of Future Group. At least three companies under the Future Group—Future Retail, Future Lifestyle Fashions and Future Supply Chain Solutions—will be merged into a single business, which will then be acquired by Reliance Industries.
• The negotiations between the two companies have reached an advanced stage, and Reliance Industries intends to sign the agreement before its upcoming annual general meeting on July 15. The Future Retail vertical operates over 1,500 retail stores across India, including Big Bazaar, Easyday and Nilgiris, and the Future Lifestyle Fashions vertical operates about 300 Central and Brand Factory stores.