FROM THE DESK OF DEBORAH WEINSWIG

We Can Still Celebrate a Covid-Safe Halloween This Year Halloween will, of course, be different this year, but we can still enjoy Covid-adapted celebrations. Creative-minded retailers have come up with innovative solutions to retain some of the fun of the holiday. Characterizing trick-or-treating as a “high-risk activity” in the current context, the Centers for Disease Control and Prevention (CDC) has recommended “one-way trick-or-treating,” which centers on delivering individually wrapped treats to neighbors’ and friends’ houses. Retailers and organizations such as Party City, Hershey, Shoprite, Spirit Halloween, the NRF and UNICEF collaborated to create the website halloween2020.org, which gives tips and health guidelines for celebrating Halloween safely. The advice varies according to Covid risk levels, which are displayed on an interactive map. Other retailers are levering existing curbside delivery expertise to offering curbside trick-or-treating. Walmart has been using its parking lots for fall events, such as football viewings and drive-in movies, and is now offering a Halloween Camp. Through the end of October, customers can engage in activities including family-friendly games, making Halloween masks and slime, and visiting haunted houses—all outdoors. Other retailers, including CVS, Meijer and Target, are following the one-way trick-or-treating concept by offering “boo bags”—contactless bags of candy that can be dropped off at friends’ or neighbors’ front doors. Home-improvement retailer Lowe’s is offering curbside trick-or-treating events on October 22 and 29. Registered consumers can drive up and receive candy and a small pumpkin. The retailer is also encouraging consumers to carve a pumpkin with a message of gratitude to share on social media on October 28. With Halloween representing one of the largest holidays for Party City, accounting for around 20% of its annual sales, the retailer is making the best of the current situation. While the company plans to hire 20,000 temporary employees for the holiday season, and permanently retain around 10% of them, Party City only plans to open 25 pop-up stores this season, compared to 275 last year. To reassure consumers’ safety concerns, the retailer is offering curbside pickup and same-day delivery services, as well as online shopping options and contactless mobile phone payments. Costumes are still permitted this Halloween and though there will likely be fewer public events where they can be worn, kids can still wear them around the house. Retailer Spirit Halloween has been seeing strong traffic and expects sales in line with last year, according to a report by CNN Business. Since most people are already wearing masks when in stores, crowded areas or using public transportation, this concept can be easily adapted to celebrate Halloween—several vendors are offering masks with ghosts, goblins and pumpkin themes, though buyers are unlikely to want to wear them all year round. Halloween candy has also changed this year. In addition to “boo bags” a lot of candy is being marketed as fall candy so as to extend the duration of its consumption. The different dynamics of Halloween this year have also led many retailers to start discounting candy early, compared to the steep markdowns that usually come the day after Halloween. A visit to Target’s website reveals offers such as “buy one get one 25% off on select Halloween candy bags.” Although this year’s holiday season will certainly be different, with a bit of creativity and flexibility, Halloween can still be enjoyed by retailers and shoppers. Please click here to read our Halloween 2020 Retail Preview.

US RETAIL AND TECH HEADLINES

JCPenney Closer to Deal with Simon Property Group and Brookfield Property Partners (October 21) Company press release

• JCPenney has filed a draft asset purchase agreement which will allow mall operators Simon Property Group and Brookfield Property Partners to acquire the department store’s retail and operating assets.
• CEO Jill Soltau said that this agreement brings the retailer closer to exiting bankruptcy ahead of the December holiday season. The agreement is subject to court approval and the company expects a hearing to be scheduled in early November.

Perch Raises $123.5 Million To Expand Its D2C Brands on Amazon (October 20) TechCrunch.com

• Perch, a consumer products company that acquires and operates big direct-to-consumer (D2C) brands that sell on Amazon, has raised $123.5 million from Spark Capital, Tectonic Ventures and Boston Seed in its latest funding round.
• The company, which owns women’s athleisure brand Satina and kitchenware brands Flathead and Aullet, plans to use the funds to grow its portfolio of brands from 10 to 50 by the end of 2021. It also plans to expand its team and build out its platform further.

Happy Returns Collaborates with FedEx To Expand Its Network of Returns Locations (October 20) USAToday.com

• Logistics firm Happy Returns has partnered with delivery service company FedEx to expand its network of “Returns Bars”—locations where shoppers can return their orders from select online retailers—by over 76%.
• From the end of October, shoppers can visit over 2,000 FedEx Office stores, including the 340 located inside Walmart stores, to return orders from a number of retailers, including Everlane, Dressbarn, Revolve and Rothy’s.

Stein Mart To Sell Its Intellectual Property (October 19) RetailDive.com

• Stein Mart has put its intellectual property (IP) up for sale while it winds up its physical retail business as part of bankruptcy proceedings.
• The bankruptcy court at Jacksonville, Florida, which is overseeing the company’s bankruptcy proceedings, has approved IP disposition specialist Hilco Streambank to manage the sale. Hilco will handle marketing Stein Mart’s IP to potential buyers and receive part of the proceeds from its sale.

Lowe’s To Deliver Christmas Trees For Free This Year (October 20) CNN.com

• Lowe’s is offering free home delivery on freshly cut trees and wreaths this holiday season, as long as the orders are over $45, beginning October 30. Customers can buy the trees and wreaths online or in-store and have them delivered within three to five days.
• This new service is part of Lowe’s bid to overhaul its annual holiday sales and include more home items and other goods that shoppers do not typically associate with the home improvement retailer.

EUROPE RETAIL AND TECH HEADLINES

Muji Introduces Payment App Across UK Stores (October 20) ChargedRetail.co.uk

• Japanese lifestyle retailer Muji has launched a payment app, called MishiPay, across its 11 stores in the UK. Shoppers can use the app to scan products they wish to purchase and pay for them through the app.
• Muji UK managing director David Brice said “MishiPay’s mobile self-checkout solution has allowed [Muji] to create a new level of convenience.” The technology has freed up staff “to help, advise and add real value to the shopping experience rather than processing payments,” he added.

The John Lewis Partnership Introduces Two New Click-And-Collect Initiatives (October 20) TheRetailBulletin.com

• The John Lewis Partnership has introduced two new initiatives as part of its click and collect service ahead of the holiday shopping season. Starting this week, the group will introduce click and collect at all of its Waitrose supermarkets in the Channel Islands.
• The group has also allowed online Nespresso and Sweaty Betty shoppers to collect their purchases from John Lewis and Waitrose stores.

Asda Trials a Sustainability Store (October 20) Company press release

• Asda has opened a new sustainability store in Middleton, UK, “designed to help shoppers reduce, reuse and recycle with ease.” The retailer expects to save one million pieces of plastic per year based on the initiatives being trialed at the store.
• The store includes 15 refill stations offering over 30 household staples sold in a refillable format. Products include Asda’s own brand rice and pastas, handwash and shower gel from Unilever, Kellogg’s cereals, Persil laundry detergent and PG Tips teabags, among others.

UK Supermarkets Cut Prices Ahead of Holiday Season Shopping (October 21) News.Yahoo.com

• UK supermarkets are reducing prices on a number of essentials this week as they gear up for Christmas season shopping. Waitrose has decreased prices by an average of 15% across more than 200 of its basic private-label products, including beef mince, tea and cleaning products.
• The Co-op has cut prices of more than 300 branded and private-label essentials, including rice, pasta and coffee, by about 15% on average. It has also introduced a new low-price range, called “Honest Value,” which includes 50 items across fruit, meat, soft drinks and vegetable categories.

Burberry To Use Gaming Technology To Optimize Fashion Design Process (October 19) Company press release

• Burberry has partnered with digital production agency Koffeecup to develop new software that will expedite and streamline the process of placing prints on clothing.
• The software will allow designers to place two-dimensional prints on three-dimensional product templates and help them receive real-time feedback and incorporate changes. Burberry said that this will cut down paper usage by two-thirds and potentially cut factory waste as product samples can be developed with fewer iterations.

ASIA RETAIL AND TECH HEADLINES

Alibaba Group To Buy Controlling Stake In Sun Art Retail Group (October 19) Company press release

• Alibaba Group will invest approximately $3.6 billion in supermarket operator Sun Art Retail Group, raising its stake in the latter to approximately 72%. This move forms part of Alibaba’s new retail strategy, which integrates online and offline retail. Sun Art operated 481 hypermarkets and three mid-size stores as of June 30, 2020.
• Alibaba has integrated all Sun Art physical stores in China into its Taoxianda and Tmall Supermarket platforms, providing one-hour and half-day delivery of online orders via its delivery businesses Ele.me and Cainiao.

BinDawood Debuts on Saudi Arabian Stock Exchange (October 21) CNBC.com

• Saudi Arabian supermarket operator BinDawood Holding debuted on the country’s national stock exchange on October 21, listing 20% of its shares publicly for the first time. Its shares hit an opening price of SAR 105.6 ($28.2), up from its offer price of SAR 96 ($25.6).
• The company has raised $585 million in total through its initial public offering. The retailer runs 73 stores across Saudi Arabia and plans to open an average of six stores annually to reach 100 stores by 2024.

Robinson Retail Holdings Buys Rose Pharmacy Chain from Dairy Farm (October 20) InsideRetail.Asia

• Philippine multi-format retailer Robinson Retail Holdings has acquired Rose Pharmacy from Hong Kong retail group Dairy Farm for an undisclosed amount.
• Rose Pharmacy operates 300 stores across the Philippines. Robinson president and CEO Robina Gokongwei-Pe said that the company’s acquisition of Rose Pharmacy will help it strengthen its position in multi-format retailing in the country.

ShopUp Raises $22.5 Million To Digitize Neighborhood Convenience Stores Across Bangladesh (October 20) TechCrunch.com

• Bangladesh-based startup ShopUp has raised $22.5 million in funds from Sequoia Capital India and Flourish Ventures, to help the country’s mom-and-pop stores create a digital presence.
• Mom-and-pop stores, which constitute small, family-owned businesses, make up roughly 95% of Bangladesh’s retail sector. ShopUp provides these stores with three key services: a wholesale marketplace to secure inventory, logistics and last-mile delivery, and working capital.

Indonesia Unveils National Store on Pinduoduo (October 19) Kr-Asia.com

• The Indonesian government has unveiled its national store on Chinese e-commerce platform Pinduoduo in a bid to strengthen ties with China. The store includes packaged food products and traditional cotton and silk clothing known as Indonesian batik, among other products.
• The store sells over 500 types of products and has sold 100,000 products within two days of its launch, according to Pinduoduo.