FROM THE DESK OF DEBORAH WEINSWIG

Taking a Trip to Amazon Style To Try on Some Clothes This week, Amazon announced the opening of its first-ever permanent brick-and-mortar apparel store, called Amazon Style, scheduled for later this year. The company stated that the store will bring the best elements of online shopping into a physical space. Amazon also released a video to illustrate the shopping journey inside the store. In the video, a shopper sees a jacket they like on display, scans a QR code on the item label and clicks “Try On” on a smartphone app. They are notified that a numbered dressing room is ready and use the app to unlock the door. Inside the dressing room is a large screen with a touch panel displaying outfit suggestions, in addition to a secure, “magic closet” with the selected clothes and other recommended items. Items for purchase are stored in the back of the store and brought into a changing room when a customer requests them. The company stated that it will use machine-learning algorithms to generate real-time recommendations for consumers while they shop. Consumers will also be able to leave ratings for items and request more sizes or styles using the display screens in the dressing rooms. The video ends with the customer taking the jacket to a desk, where an associate puts it in a shopping bag. The payment process is not shown—although the company has stated that the store will support Amazon One palm-based identity verification for making payment. Reflecting today’s “new normal,” all of the customers and employees in the store wear face masks. The 30,000-square-foot store is located in The Americana at Brand, a mall in the Glendale section of Los Angeles, California. It will reportedly sit alongside Nordstrom and JCPenney stores when it opens later this year. The store will feature hundreds of brands and thousands of styles, according to Amazon, with a combination of big names and private labels chosen by fashion curators and informed by feedback from shoppers on Amazon.com. The assortment will range from affordable to sought-after items (i.e., with prices of $10–$400). In addition, the store will leverage Amazon’s fulfillment center network to ensure that the assortment is updated frequently. Merging online and offline shopping experiences, shoppers will be able to browse in store and make purchases online or browse the items they scanned in the store on the Amazon app. Shoppers will also be able to browse items online and have them sent to the store to try on in person. In addition, the store will offer return drop-offs and collection for online purchases. Coresight Research estimates that Amazon is the largest apparel and footwear retailer in the US, by sales, with $39 billion in estimated sales in 2020, including sales by marketplace sellers. Our 2021 Amazon apparel survey found that more than six in 10 apparel and footwear shoppers surveyed purchase apparel or footwear on Amazon.com and that the company was the number-one retailer at which they had purchased apparel or footwear, ahead of number-two Walmart by around 15 percentage points. While Amazon receives a great deal of fanfare with the opening of a new category of physical store, many of these stores are experimental vehicles designed to test new markets and gather data. As of the end of 2020, Amazon had 611 stores in North America, of which around 500 are Whole Foods Markets and the rest a smattering of bookstores, 4-Star stores, Amazon Fresh supermarkets, Amazon Go automated stores and pop-ups. There are reportedly other stores in the works, such as the department stores rumored to be opening in California and Ohio. Even though Amazon is, we believe, the largest US apparel retailer, it is still largely not a household apparel name in the sector given some consumers’ largely implacable desire to try on apparel in person to gauge fit and the feel of the material. Nevertheless, with clothing, footwear and accessories retailers’ sales surpassing $300 billion in 2021, according to Coresight Research’s US Retail Sales Databank, it makes complete sense that Amazon would want to explore opportunity to expand its brick-and-mortar presence in the sector.

• We will release the findings of our fifth annual Amazon apparel US consumer survey in the spring.

US RETAIL AND TECH HEADLINES

FedEx and Microsoft Announce New Cross-Platform E-Commerce Logistics System (January 24) Company press release

• Parcel delivery provider FedEx and technology giant Microsoft are set to launch a new cross-platform e-commerce “logistics as a service” system for brands, merchants and retailers—combining FedEx’s network intelligence with the capabilities of Microsoft Dynamics 365.
• The cross-platform approach enables brands and retailers to provide modern, high-value experiences to their customers, such as faster and more cost-effective delivery; almost real-time delivery status communications; and convenient, frictionless returns using around 60,000 drop-off locations and digital QR codes.

Kohl’s Confirms Acquisition Bids from Acacia and Sycamore (January 24) RetailTouchPoints.com

• Department store chain Kohl’s has confirmed that that at least two companies have presented it with acquisition proposals.
• Private equity firm Sycamore Partners has offered to pay $65 per share, or more than $9 billion in total for the company, while private equity firm Acacia Research, with backing from Starboard Value, reportedly made a second offer at $64 per share. According to Kohl’s, its Board of Directors will determine the course of action that is in the best interests of the company and its shareholders.

Shein Resurrects Plans for a 2022 IPO in New York (January 25) Reuters.com

• Chinese fashion retailer Shein is renewing plans to list on the New York Stock Exchange this year. Shein began planning an initial public offering (IPO) in the US around two years ago but shelved the idea due to volatile markets and rising tensions between the US and China.
• If the IPO is finalized, it would mark the first major equity transaction by a China-based company in the US since Chinese regulators tightened oversight in July 2021.

Stitch Fix Appoints Sachin Dhawan as Chief Technology Officer (January 24) RetailDive.com

• Online personal styling retailer Stitch Fix has named Sachin Dhawan the company’s new Chief Technology Officer (CTO). He succeeds Cathy Polinsky, following her departure in 2020. Dhawan previously served as Visa’s Senior Vice President of Infrastructure and Operations.
• Prior to joining Visa, he served as CTO at payments disruptor Blackhawk Network for three years. He also spent 16 years at PayPal and Microsoft, where he was responsible for developing and growing PayPal’s global consumer products and Microsoft’s personalization and advertising technology.

Walmart’s Mexico Division Examines “Strategic Alternatives” in Central America (January 24) USNews.com

• The Mexico unit of retail giant Walmart has announced that it is evaluating strategic alternatives to its operations in Central America—such as joint ventures, partnerships or strategic alliances—as well as a sale or other transactions.
• The company believes that El Salvador, Honduras and Nicaragua offer significant potential for increased expansion. Mexican bank Intercam’s Senior Analyst, Alejandra Marcos, stated that Walmart’s Mexico unit is “choosing to focus on its strongest markets, while leaving the operations of some countries in the hands of others due to the undergoing complex political and sanitary situations.”

EUROPE RETAIL AND TECH HEADLINES

Coop Expands Its Fairtrade Range (January 24) ESMMagazine.com

• Switzerland-based consumer co-operative retail and wholesale company Coop has expanded its Fairtrade range to 1,333 products, claiming to offer the largest assortment of Fairtrade products of any retailer worldwide.
• Coop has a 30-year-old partnership with public education organization Fairtrade Max Havelaar, working together to promote fair prices for producers. The company plans to further expand its Fairtrade range and to improve its producers’ income.

Getir Announces Plans To Create 6,000 Jobs in the UK in 2022 (January 25) ChargedRetail.co.uk

• Turkey-based rapid grocery delivery startup Getir plans to create 6,000 jobs in the UK this year, adding to its current 4,000 permanent roles.
• The company stated that it will invest £100 million ($134.8 million) for its UK expansion. The company launched in London one year ago, and now operates in 20 other towns and cities in the UK, including Birmingham, Liverpool, Manchester and Portsmouth.

Kering To Sell Its Watches Division (January 25) RetailGazette.co.uk

• French luxury goods company Kering has announced plans to sell its watches division. The company plans to sell its high-end labels Girard-Perregaux and Ulysse Nardin to their current management.
• The move comes as part of Kering’s plan to focus on labels ““with the potential to become sizable assets within the group,” according to the company. It also reduced its watches division staff by around one-quarter in September 2020 due to pandemic-induced store closures and travel restrictions.

Nisa Launches AR Voucher System in Its UK Stores (January 24) ChargedRetail.co.uk

• UK-based grocery retailer Nisa is set to launch an augmented reality (AR)-powered voucher system, “Scan & Save,” across its UK stores. Scan & Save reads product barcodes and presents exclusive promotions to customers on their mobile phones. The solution is powered by technology company Jisp.
• The solution was piloted between September and December 2021, and participating retailers racked up a combined discount redemption value of £36,211 ($48,805.4). Customers will be able to save up to 60% on more than 65 products from leading brands, including Kelloggs, Nomad Foods and PepsiCo.

Strathberry Secures New Funding (January 24) UK.FashionNetwork.com

• Scotland-based luxury fashion accessories company Strathberry has secured £8 million ($10.8 million) in funding from investment group BGF, at a valuation of £32 million ($43.2 million).
• Strathberry will use the money to fund domestic and international expansion, particularly in the US, following success in Asia.

ASIA RETAIL AND TECH HEADLINES

Baby Amore Secures Funding from GetVantage (January 24) ETRetail.com

• Indian DTC baby care startup Baby Amore has raised an undisclosed sum from GetVantage, an Indian revenue-based financing platform. Baby Amore specializes in organic and sustainable baby care products, and sells over 100 brands through its e-commerce stores.
• Baby Amore plans to use the funds to strengthen its omnichannel shopping customer experience. It recently opened a concept store in Chennai and is set onboard a range of new international brands.

RateS Secures $6 Million Series A Funding Led by Vertex Ventures (January 24) TechinAsia.com

• Indonesia-based social commerce startup RateS has raised $6 million in funding in a Series A+ round, led by existing backers Vertex Ventures and venture debt firm Genesis Alternative Ventures.
• The company plans to use the funds to expand into Tier 2 and 3 cities, accelerate recruitment plans for its product and engineering teams, and grow its private-label brands Hozu and Kidzu. The company also aims to begin a Series B funding round in the second half of 2022.

Samarkand Group Partners with FedEx To Power Cross-Border E-Commerce in China (January 24) BusinessInsider.com

• London-based e-commerce technology company Samarkand Group has partnered with FedEx to facilitate cross-border e-commerce from international markets into China—using the former’s Nomad platform.
• Samarkand will make its Nomad checkout solutions available to FedEx clients via the Compatible Solutions Program (CSP). Using the CSP, merchants can be onboarded quickly to Nomad using their FedEx account.

Swiggy Closes $700 Million Round at $10.7 Billion Valuation (January 24) TechCrunch.com

• Indian food and grocery delivery company Swiggy has closed a $700 million Series K funding round led by Invesco, an American investment management company. The round follows a valuation of $10.7 billion in July 2021 in a round that saw Swiggy raise $1.25 billion in funding.
• Swiggy is making inroads in the instant-delivery space for groceries with its Instamart service, which has seen increased traction amid the pandemic-led shift in consumer shopping habits.

ViLab Partners with Actoplus To Create Virtual Idols for Chinese Consumers (January 25) TaiwanNews.com

• Hong Kong-based metaverse service provider ViLabs has teamed up with livestreaming technology provider Actoplus Holdings to launch virtual characters for brands, referred to as idols. The idols can be used to connect with consumers around various commercial functions, including brand endorsement and online and offline marketing campaigns.
• The virtual idol market in China reached $540 million in 2020 and is set to surge to $17 billion in 2021, according to consultancy firm iiMedia Research, as younger generations of Chinese shoppers become increasingly receptive to this form of engagement with domestic and international brands.