In retail today, Dick’s Sporting Goods sees customers choosing in-person shopping over e-commerce, while Nordstrom will soon close its Trunk Club to focus more on in-store and online style advisors. Additionally, Urban Outfitters is seeing the decline in the digital commerce segment as more shoppers head to physical stores.
How the world is going digital: network effects are snowballing for greater digital engagement
The digital transformation we are currently undergoing as a planet relies on the power of network effects to elevate the level of digital engagement to reach its greatest potential.
We explore this in Benchmarking The World’s Digital Transformation, a PYMNTS and Stripe collaboration, a quarterly measurement of 15,100 respondents in 11 countries showing progress in adopting 40 key activities across the 10 broad categories of the PYMNTS ConnectedEconomy Index (CE Index ) – what we call the “pillars” of the connected economy – in their daily lives, from shopping to dining to how they pay.
In the inaugural study, we see how adopting digital behavior – whether subscribing to a retail box or using buy now, pay later (BNPL) for the first time – drives to more commitment.
The data point: 36% of shoppers want tailored online shopping experiences
With a tailored approach to personalization, sites and sellers use first-party data combined with other signals to create frictionless, customer-centric shopping experiences that convert.
In “The Tailored Shopping Experience: Meeting Consumer’s Online Expectations,” a collaboration with Elastic Path, PYMNTS surveyed nearly 2,100 US consumers, we found that consumers now expect online merchants and brands to know not only their preferences, but allow the buyer to customize as they go.
With fast deliveries, free shipping and product recommendations that reflect knowledge of preferred price points and previously viewed or purchased items, add to the fluidity and enhance the experience to align with changing customer expectations. online shoppers.
China’s COVID lockdowns hamper iPhone production
Apple has ordered its suppliers to speed up the pace of iPhone development after China’s COVID-19 lockdown protocols slowed the schedule for at least one of its phones.
Lockdowns resulting from China’s zero-COVID policy led iPhone assembler Pegatron to suspend operations earlier this year at its Shanghai and Kushan factories. Apple said that in the worst-case scenario, the manufacturing schedule and initial production volumes of the new phones would be hampered.
This isn’t the first time COVID has disrupted iPhone production. Last year, the spread of the virus in Vietnam led to iPhone 13 delivery delays. In this case, the delay was mainly due to a limited supply of camera modules.
MLB and NFL venues digitize concessions with next-gen self-service
Retail technology company Gallery Carts has announced a partnership with digital component maker Falkbuilt to make it easier to build take-out kiosks for live event venues. The technology is operational at the San Diego Padres’ Petco Park and will soon be in use at Nissan Stadium (home of the Tennessee Titans) and Allegiant Stadium (home of the Las Vegas Raiders).
Throughout this year, sports arenas have brought their franchises into the 21st century with new technologies. Amazon and Instacart are among those stepping up the checkout experience with next-generation self-service systems.
PYMNTS research from last year’s “Today’s Self-Service Shopping Journey: The New Retail Expectation” study, created in collaboration with Toshiba, for which PYMNTS surveyed more than 2,000 US consumers about their shopping behavior, revealed that a third of grocery store customers used self-checkout. options for their last in-store purchase. Two-thirds of these shoppers opted for self-checkout because it was faster than paying with a cashier.
Kohl’s to launch 100 small-format stores in untapped markets
Kohl’s announced on Wednesday (May 25) that it is launching an extensive store investment program that will see the addition of 100 new small format locations over the next four years. The announcement marks the latest effort by the beleaguered operator of 1,100 stores to reinvigorate sales and move beyond a murderous two-year effort to oust the current board and upend the company’s operations.
“The average Kohl’s store of approximately 80,000 square feet is too large for many small markets,” the company’s presentation said, noting that the rollout of the new 35,000 square foot locations follows the successful pilot of 20 small format pitches.
By shrinking its footprint, the Wisconsin-based department store chain said it gains the flexibility to enter new neighborhoods and provide a “hyper-localized experience” that reflects the unique needs of each community.
Dick’s digital declines as customers return to stores
Dick’s Sporting Goods does not expect the difficulties it reported in the first quarter of 2022 to improve much over the rest of the year, saying it sees same-store sales struggling to reach the breakeven for the remainder of this year after an 8.4% decline in Q1.
The retailer pointed to “changing macroeconomic conditions” as the reason it expects same-store sales to decline between 2% and 8% for the full year, according to a company press release Wednesday (May 25). The company’s net sales were up 41% from levels in the first three months of 2019.
In its 2021 report, Dick’s reported a 9% decline in its e-commerce business as more shoppers returned to their local physical stores in the last three months of the year.
Amazon opens 1st brick-and-mortar clothing store in Los Angeles
Amazon has launched its first physical clothing store, which uses machine learning to help shoppers find what to wear.
The Los Angeles store, called “Amazon Style,” also allows customers who shop on the Amazon app to try on their selections in the physical store, with the app telling them when a dressing room is available.
The news comes as Amazon has begun blending the worlds of e-commerce and brick-and-mortar retail with a pilot program in which its drivers pick up packages from mall stores and deliver them to customers’ homes. A handful of retailers have participated in the program, which involves malls in Virginia, Nevada and Arizona.
Urban Outfitters sees an increase in foot traffic and a drop in e-commerce sales
With most restrictions related to the COVID-19 pandemic having been lifted in North America and Europe, shoppers returned in droves to Urban Outfitters stores during the first quarter of fiscal 2022. supply chain however have changed the way the company manages inventory at the moment.
Urban Outfitters – which includes Anthropologie, BHLDN, Free People, FP Movement, Terrain, Urban Outfitters, Nuuly and Menus & Venues – said its total inventory for the three-month period ending April 30 increased by nearly 32% ($152.2 million) per year. year-on-year, and inventory costs increased 35% during this period due to supply chain issues, raw material cost increases, longer lead times and first quarter sales lower than expected.
Urban Outfitters also reported double-digit sales growth at its retail stores in its first-quarter earnings report, reflecting fewer quarantines and temporary store closures.
Nordstrom Drops Trunk Club Subscription Biz for Online and In-Store Style Advisors
Nordstrom’s eight-year run with its Trunk Club subscription business is coming to an end as the luxury retailer says it’s taking its shopper styling efforts in a different direction, with more emphasis on advice from fashion in-store and online.
In announcing its intention to “terminate” the brand it acquired for $350 million in 2014, the Seattle-based retailer said the move reflected customer demand.
Nordstrom said its style program was a powerful engagement driver that brought both convenience and deeper connections to the brand’s customers, and said the strategic shift was to redirect resources to services that customers appreciate the most.