An interesting set of Amazon stories today, plus have you ever heard of Skimpflation? Here are the top retail stories of the day…
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.
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.
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