FROM THE DESK OF DEBORAH WEINSWIG

What Walmart’s “New Department Store” Tells Us About Where Brick-and-Mortar Retail Is Headed Walmart last week unveiled a “signature” trial store format, designed to amplify “the physical, human and digital design elements” in its stores and, so, “inspire customers and elevate the experience.” The store looks impressive and delivers an improved shopping experience through a number of features:

• Displays and room-sets at the corners of departments such as Home that draw in customers “and help them touch, feel and become a part of the space.”

[caption id="attachment_140771" align="aligncenter" width="420"] Source: Walmart[/caption]  

• Elevated brand shops for national brands and private labels: Walmart said that it is taking the “store-within-a-store experience to the next level,” in apparel, baby, and beauty and grooming.

[caption id="attachment_140772" align="aligncenter" width="420"] Source: Walmart[/caption]  

• Additional space for shoppers to explore and “discover the breadth and depth of what our stores have to offer.” The company said that it has “optimized assortment to elevate storytelling.”
• Digital touchpoints: The strategic use of QR codes and digital screens.

[caption id="attachment_140773" align="aligncenter" width="420"] Source: Walmart[/caption]   Our Thoughts The features of this concept store tie in with a number of themes that we have been watching and writing about for some time. Future of Stores Matrix The refocusing on quality of in-store experiences aligns with our longstanding view on where physical retail is headed. For several years, we have pointed to stores likely clustering around one or more of four functions, as shown in our Future of Stores Matrix in the figure below. Concentrating on these key functions of convenience, collection, discount and destination enable brick-and-mortar stores to complement e-commerce and maintain competitive advantages versus the online channel. Walmart’s new store features add to its destination status. Figure 1. Coresight Research’s Future of Physical Stores Matrix [caption id="attachment_140774" align="aligncenter" width="700"] Source: Coresight Research[/caption]   The New Department Store In amplifying the store experience, and in some of the specifics of this new store model, Walmart is effectively helping to cement mass merchandisers as a kind of “new department store.” For too many traditional middleground department stores, underinvestment in the maintenance and enhancement of store experience has contributed to structural decline. Meanwhile, retailers such as Target have continued to enhance stores with improved departments in categories such as beauty (supported at Target by its partnership with Ulta) and toys. This “new department store” model among mass merchandisers has helped accelerate the multiyear bifurcation in discretionary demand, pulling dollars away from the centerground and toward both premium and value retailers. Brand Building Finally, we point to more specific potential gains from these improvements, both tied to the store’s role in helping build brands.

• Investment in digital screens will support Walmart’s expansion of its retail media (i.e., advertising) business in-store. In its third quarter (latest reported), Walmart reported 240% growth on a two-year stack for its Walmart Connect online and in-store advertising business.
• Enhancement of brand shops that bolster brand equity will be looked on favorably by brand partners, in an environment where more brands are selling direct at the expense of multibrand retailers. Reflecting the risks, NIKE reduced its wholesale accounts, cutting names such as Macy’s and DSW, in 2021 and so far in 2022, for example.

In just one store, Walmart tells us much about multibrand, multichannel retailing in a digital age.

US RETAIL AND TECH HEADLINES

Altar’d State Appoints Its First Chief Information Officer (February 1) ChainStoreAge.com

• Women’s fashion retailer Altar’d State has appointed Joergen Scheuer-Larsen as its Senior Vice President (SVP) and its first-ever Chief Information Officer (CIO). Scheuer-Larsen will oversee all technology for the company’s brands, which include Altar’d State, Arula and Vow’d.
• Before joining Altar’d State, Scheuer-Larsen served as SVP and CIO at watch and lifestyle company Fossil for three years. Before joining Fossil, he worked at Skagen Designs, Lego Systems and Carlsberg Breweries Denmark.

Home Depot To Hire Over 100,000 Workers for the Spring Season (February 1) RetailDive.com

• Home-improvement retailer Home Depot plans to hire more than 100,000 workers for the spring season, one of its busiest shopping seasons. The positions available include customer service, sales and store support, as well as freight, merchandising and warehouse associates.
• The company stated that applicants could receive offers within one day of applying thanks to its new hiring process.

Lowe’s Launches New Loyalty Program for Home-Improvement Professionals (February 1) ChainStoreAge.com

• Home-improvement retailer Lowe’s launched a new loyalty initiative, Lowe’s MVPs Pro Rewards and Partnership Program, in select US regions on February 1 and will roll out the scheme nationwide in March.
• The program provides access to business resources, exclusive offers and rewards on eligible paint purchases and Lowe’s e-gift cards, as well as prizes and bonus point competitions.

Uniqlo Launches Repair Studio at Its NYC Flagship Store (February 1) SourcingJournal.com

• Uniqlo, owned by Japan-based fashion retailer Fast Retailing, has launched its Re.Uniqlo Repair Studio at its New York flagship store—a new initiative offering basic on-site apparel repairs for the brand’s items.
• Repairs include button replacement, fixing rips in seams and patching holes, all of which will cost $5. The launch is a part of the company’s aim to promote a circular clothing system.

Walmart Expands Its Healthcare Offering Through Extended Partnership with Quest Diagnostics (February 1) RetailDive.com

• Retail giant Walmart has partnered with lab test provider Quest Diagnostics to offer healthcare lab testing services via its website.
• The service will offer over 50 tests, including for allergies, digestive and heart problems, and infectious diseases. After purchase, customers can also schedule appointments at Quest’s service facilities and participating Walmart stores.

EUROPE RETAIL AND TECH HEADLINES

Amazon Hires 25,000 UK Staff To Manage Pandemic-Driven Spike (February 2) FT.com

• Amazon recruited 15,000 more British workers than it anticipated in 2021, as UK demand for home delivery and digital services increased during the pandemic, the company has announced.
• The company’s total headcount in the UK is now 70,000, including corporate, research and development, and warehousing and delivery teams.

Asda Pilots Digital ID Technology at Self-Service Checkouts (February 1) Company press release

• British grocery chain Asda has introduced age-estimation technology for purchasing alcohol at its stores in Pudsey and Stevenage, in collaboration with technology company NCR and digital ID provider Yoti. The trial is scheduled to last until the end of May.
• The technology works via a camera at the self-checkout screen, and protects customers’ privacy, according to the company. If the system detects that a customer appears to be under the age of 25, they can prove their age using the Yoti and Post Office EasyID Apps, or show their ID to an Asda employee.

Carrefour Enters the Metaverse Through “The Sandbox” (February 1) ESMMagazine.com

• French grocery retailer Carrefour has made its first move into the metaverse, launching in virtual gaming environment The Sandbox. The Sandbox is a metaverse where players can create, own and monetize their experiences in the virtual world.
• Carrefour’s E-Commerce Chief Elodie Perthuisot stated, “Here is our first address in the metaverse, on The Sandbox. It is a virtual field, and above all a field of innovation for Carrefour, in the logic of our digital transformation.”

Musgrave Implements Pricer Electronic Shelf Label Technology Across Store (January 31) RetailTechInnovationHub.com

• Ireland-based grocery retailer Musgrave has implemented Pricer electronic shelf label technology throughout its SuperValu and Centra stores in Northern Ireland.
• The new technology eliminates the need for employees to spend time manually replacing paper labels, reducing operating costs. It also contributes to the company’s sustainability goals by lowering the paper usage associated with traditional labeling.

Wayflyer Raises $150 Million in Series B Funding Round (February 1) Company press release

• Irish e-commerce platform Wayflyer, which provides revenue-based financing and marketing analytics for online businesses, has entered the unicorn club with a valuation above $1 billion after raising $150 million in a Series B funding round. The company plans to use the investment to create a new e-commerce ecosystem.
• The funding round was led by DST Global and QED Investors, with participation from new investors Prosus, Madrone Capital Partners and JP Morgan, as well as existing investors Guillaume Pousaz and Left Lane Capital.

ASIA RETAIL AND TECH HEADLINES

India Proposes Reduction in Diamond Jewelry Import Duty (February 1) ETRetail.com

• In its latest financial budget for 2022, the Indian Government proposed a reduction in import duty on cut and polished diamonds from 7% to 5% in a bid to cut diamond jewelry prices.
• The initiative is designed to boost diamond jewelry sales in India and drive exports of the country’s diamond jewelry products, according to industry leaders.

JD.com Hosts More Than 69 Billion Interactions During Spring Festival Gala 2022 (February 1) Company press release

• China-based e-commerce company JD.com distributed over ¥1.5 billion ($240.0 million) in virtual red envelopes and physical gifts during its Spring Festival Gala 2022, recording 69.1 billion interactions.
• During the company’s interactive campaign, more than 80,000 families received New Year’s gifts from popular brands, including Bosideng, Opple Lighting, Pico Neo 3 and Shuixing Home Textile. The campaign will last until the Lantern Festival on February 15 making it the most extended campaign of its kind, according to the company.

J&T Express Plans Middle East Expansion (February 2) RetailAsia.net

• Indonesian logistics company J&T Express has announced plans to open a regional headquarters in Saudi Arabia to cater to the Middle East and North Africa region.
• This initiative comes as part of the company’s plan to build the largest smart logistics industrial park in the region in the next 10 years to meet growing logistics demand.

Reliance Brands Limited Partners with Fashion Designer Rahul Mishra (January 31) Company press release

• Indian conglomerate RBL has entered into a joint venture with Rahul Mishra, a popular Indian designer, and is set to launch a new brand and an exclusive ready-to-wear collection this year.
• Mishra will be the new brand’s Creative Director. Reliance Brands Limited stated that it aims to expand the brand internationally, with dedicated flagship stores set to open around the world over the next five years.

VEats Launches New Platform in Sydney (February 1) RetailNews.asia

• Australia-based VEats has rolled out its new online vegan food platform in Sydney, allowing consumers to discover items and purchase from businesses that offer vegan options. The online platform currently has 600 listings across the city, and has partnered with online ordering platform OrderUp!, for support on ordering and pick-up functionalities.
• After its launch in Sydney, the company is planning to expand internationally and launch in the UK—Brighton and London are likely to be its first stops.