FedEx prepares ‘logistics as a service’ platform

For retailers and brands, FedEx is going the platform route. They’re building on and extending capabilities established with Microsoft in 2020. FedEx Surround was their first foray into the space, a supply chain and delivery solution. The new capabilities include omnichannel order intake, fulfillment, and delivery. It’s definitely a shot at Amazon, but time will tell if it’s too little, too late. The platform is expected in 2H of 2022. 

Walmart plans to enter the Metaverse with Cryptocurrency and NFTs

You’ve got to hand it to Meta—they’ve effectively won the brand association with Metaverse. Anyways, Walmart appears to be getting in on the Metaverse game based on several trademarks filed last month. The trademarks indicate that they’ll get into Crypto and NFTs. It’s a great opportunity for brand building and product experiences.

7-Eleven introduces subscription delivery service

7-Eleven gets in on the subscription game with delivery. $5.95 gets you access to having that out-all-day hotdog delivered, instead of needing to go into the store. It’ll be interesting to see what sort of revenue is generated from a c-store format from subscription and delivery. A unique benefit in this offering is “orders of at least $10… [includes] the option to select a free product”.

Amazon is rolling out its checkout-less stores in US suburbs

Expanding further, Amazon’s checkout-less stores are moving from city centers into suburbs. Amazon is expanding the locations these stores go into with WFH here to stay. Suburb checkout-less will be 6,000 sq ft (vs 1,000 sq ft in cities). In addition, they’ve decreased the technical cost from $4MM in 2017 to $159K today. Expect to see more opening from this format from Amazon.

Amazon to open first physical clothing store

It’s called Amazon Style and will launch in LA later this year. It will lean into Amazon’s strengths – namely, using a digital-first experience to enhance the physical store. Customers will be able to review digital reviews in store, scan in store and buy online, and take advantage of Amazon’s inventory and supply chain. 

Amazon losing search to Google

Business Insider reports that “Google’s latest e-commerce push appears to be bearing fruit, as new data reveals that more people are starting their online shopping journeys using Google, taking valuable market share away from Amazon.

“A pipeline of updates to the search giant’s shopping experience is leading to an increase in Google Shopping transactions”, Morgan Stanley said in a note sent out Monday. Analysts at the firm added that more people are also starting their online shopping journey through Google. Perhaps most interestingly, this shift is also happening among Amazon Prime subscribers, who are starting e-commerce searches less frequently on Amazon’s website.

Amazon Go launching new store format for the Burbs

Amazon is adapting its Amazon Go checkout-free convenience concept with a new format for suburban locations.

The new format, which will still be called Amazon Go, will make its debut in the coming months, in Mill Creek, Wash. The total square footage of the store will be 6,150 sq. ft., with about 3,240 sq. ft. devoted to the shopping experience. The new format will also open in the Los Angeles-metro area.

Utilizing their “Just walk out” technology, the store will offer customers a quick shopping experience to pick up grab-and-go food, snacks and beverage items and a few everyday essentials. Customers will also be able to choose from a full selection of beer and wine, including local favorites. The store will also feature several new offerings which Amazon said it will announce after the store opens.

Is “Skimpflation” a thing?

We are not completely sold on the term “Skimpflation”, and you may not have heard of it, but shoppers are feelings its effects. NPR’s Planet Money podcast coined the term to describe the present “economy-wide decline in service quality,” AKA the many ways companies cut corners to account for labor shortages and rising prices.

It’s not the cost of goods that is impacting your experience, it’s the labor shortage…

Spending more time on hold with your bank these days? That’s skimpflation.
Is your hotel not changing out towels? Skimpflation.
Longer lines at the drive-thru? Thanks a lot, skimpflation.
And it’s not much different in the world of aisles, endcaps, and SKUs.

With reduced staff, stores might prioritize stocking shelves over, say, cleaning bathrooms. And with fewer drivers available, you might be waiting longer than usual for that grocery delivery.

Walmart working on a consumer finance app

The fintech start-up, which Walmart operates with Ribbit Capital, one of the venture capital firms behind Robinhood, has entered into agreements to acquire fintech platforms Even and One. 

Through this acquisition, the start-up is looking to create a single financial services app that enables consumers to get paid, spend, save, borrow and invest their money for interest. According to Walmart, almost one-quarter of U.S. adults are unbanked or underbanked, and roughly 80% of financial technology users rely on multiple accounts to manage their finances.

“Walmart is constantly looking for new ways to deliver on our core mission of helping our customers save money and live better,” said John Furner, president and CEO, Walmart U.S.

Ocado is innovating with lighter robots

Not even a year into having their first fully functional Ocado shed and Kroger is already innovating to make it faster. This retail giant doesn’t move fast until they know they have something that works, this is clearly a sign of a competitive advantage (or moat as they call it) for Kroger…

Kroger e-commerce partner Ocado announced plans to roll out fulfillment robots that are five times lighter than its current model and an on-grid robotic arm that will further automate the picking and packing process. They also unveiled updates to its order routing operations that will allow shoppers to get a wide assortment of products delivered faster, executives said. Kroger CEO Rodney McMullen said in prepared remarks during Ocado’s media event Wednesday that his company and Ocado are currently looking at ways these innovations might roll out across its online fulfillment system.

Unilever to break into five Business Groups, laying off 1,500 in the process

Just recently, the rumors had Unilever acquiring consumer healthcare brands from GSK… and now a larger restructuring is announced which is forcing the CPG giant to lay off 1,500 employees.

Unilever is restructuring its organization into five business groups; beauty and wellbeing, personal care, home care, nutrition, and ice cream — will each be accountable for their own global strategy, growth, and profit delivery, with the new org a simplification of the company’s current matrix structure. 

As part of this, Reginaldo Ecclissato, who was named chief supply chain officer last month, will become chief business operations officer, responsible for leading both the supply chain and the company’s business operations.

The company is also cutting about 15% of senior management roles and 5% of more junior management roles, resulting in a reduction of about 1,500 roles. There will be no impact to factory teams. 

Lowe’s to open Petco store within a store concept

For those of us with dogs, Lowe’s is one of the few non-pet retailers that we can bring our furry friends…my dog knows there is always a treat waiting for him at checkout. Now, there is going to be a whole pet store to explore!

Lowe’s will open Petco shops inside select stores in Texas, North Carolina and South Carolina as part of a pilot program. The addition of pet merchandise is part of Lowe’s strategy to become a one-stop shop for everything homeowners may need, from kitchen appliances to throw pillows. Lowe’s and Petco see the shops as a way to draw in new customers, deepen loyalty and drive more frequent store and website visits.

7-Eleven competing successfully with grocery stores and restaurants

They are seemingly everywhere, they have flexible hours and clearly they have a growing loyal shopper base.

No matter what they seem to do, chain grocery stores, chain restaurants, and some new non-traditional fresh food retailers simply can’t keep up with the global leader in food retail convenience 7-Eleven. Why is it so hard?

According to Steven Johnson, Grocerant Guru®, it is simple, with over 77,711 locations worldwide, everyone knows their name. Everyone one knows they try new things, keep prices down, and have faster service than most of their competitors.

7-Eleven is giving 7NOW mobile app users the golden treatment with the introduction of the 7NOW Gold Pass subscription delivery service to save move time and money. Customers can access the new 7NOW Gold Pass subscription delivery service and have delivery fees waived on all delivery orders on a selection of more than 3,000 products. The 7NOW Gold Pass service pays for itself in about three delivery orders per month, according to 7-Eleven.

Walmart tests new interactive store design

The store format is a hybrid experience, heavily embedding digital touchpoints and dynamism in the physical experience. “Time Well Spent” aims to turn the physical store into destinations where shoppers want to “spend their time”. We’ll give them kudos for elevating the experience, but consider us skeptical if the promise pays off. Key components of the redesign feature “activated corners, elevated brand shops, spaces to discover, and digital touchpoints”.

Giant Eagle personalizes loyalty program

There isn’t much new in terms of loyalty strategy here, but what is the technology powering their loyalty program—a CDP or Consumer Data Platform, which unifies consumer data cross-channel and enables scalability of their data engineering efforts. The view of the customer is collapsable into a single table, giving a simple, holistic understanding of their behavior and preferences. If you aren’t already, CDP is definitely a technology to watch.

Aldi launches portal to teach better bargain hunting

Aldi’s “School of Aldinomics” campaign launched another execution, this time in the form of a short survey to teach saving money, budgeting, and bargain hunting. Aldi leans heavily into their brand and provides a win-win for them and for the customer; teach the customer how to save and the benefits of bargains, while being the retailer that can serve those customers.

Instacart rolls out shoppable brand pages for CPGs

Another advertising push by Instacart. The intent is to “run a full-funnel marketing strategy throughout the entire consumer shoppering journey on Instacart”, according to Grocerydive. Instacart is recognizing the opportunity, perhaps required, to move beyond their initial business model into advertising. With the data and infrastructure Instacart is building, we wouldn’t be surprised to see them go further than delivery and advertising.