It’s February 1st, and here is what we are talking about this evening:
Valentine’s Day spending to be huge
After a huge Holiday season, the forecasts for Feb 14th spending are almost record setting. You better not wait until the last minute to pick up your chocolates, candy hearts and cards…
Valentine’s Day spending is expected to reach $23.9 billion this year, up from $21.8 billion in 2021 and the second-highest year on record, according to the annual survey released today by the National Retail Federation and Prosper Insights & Analytics.
More than half (53%) of U.S. consumers plan to celebrate the holiday in 2022, up from 52% in 2021. More than three-quarters (76%) of those celebrating indicate it is important to do so given the current state of the pandemic.
According to the survey, shoppers expect to spend an average of $175.41 per person on Valentine’s Day gifts, up from $164.76 in 2021. Candy (56%), greeting cards (40%) and flowers (37%) remain the most popular gift items this Valentine’s Day.
Amazon, H-E-B and Market Basket ranked as top grocers
The real headline for us here is that we are all just supposed to be ok with Amazon being considered a “grocer”? Amazon has become an “everything” retailer, but the fact that they can beat out stores like H-E-B, Market Basket and Wegmans really shows the power and influence of what Bezos Inc. has built.
dunnhumby’s latest ranking of the nation’s top grocery retailers had Amazon in the top spot, with H-E-B following in second place and Market Basket leapfrogging three retailers to take the third spot away from Trader Joe’s. Wegmans held onto the fourth spot for a second year in a row.
“The pandemic has massively accelerated changes in how customers buy their groceries, and their behaviors are continuing to evolve,” said Grant Steadman, president of North America for dunnhumby. “2021 was the year that grocery retail became truly omnichannel. Retailers who delivered on their customers’ evolving needs in-store and online performed best…but a number of midsize grocers gained momentum by understanding their customers better and differentiating their offering accordingly.”
You can hear more from Grant in the latest CPG Guys podcast, it’s definitely worth a listen!
Pinterest launches AR shopping feature
They aren’t the first to do this, but Pinterest is working with some powerhouse brands in the home decor space – something to pay attention to if it catches on!
A new Pinterest feature will allow consumers to see what furniture or other home décor items will look like in their own home, using augmented reality (AR). Similar technology has already been put into place by major retailers, like Amazon, IKEA or Wayfair. In Pinterest’s case, it’s working with a select group of U.S. retailers including Crate & Barrel, Walmart, West Elm and Wayfair, to allow online shoppers to virtually place items in their home using the Pinterest app’s “Lens camera.” If the user then likes what they see, they can proceed to purchase the item directly from the retailer.
This virtual shopping experience for home décor is launching in the U.S. across more than 80,000 shoppable Pins, which makes it Pinterest’s largest AR shopping investment to date.
Instant Grocery Delivery loses $20 per order
We all knew this couldn’t be profitable, but this is a jarring number to wrap your head around. Once they account for advertising and paying couriers, many services are averaging a loss of $20 per order. Sounds like the early days of Uber, just trying to get as many riders as possible with no focus on profits…
The startups want to deliver groceries “within minutes” and they usually operate through “dark stores,” warehouses with no retail storefront, which helps them expedite the delivery process. The prices are similar to grocery stores, although there are discounts and many services don’t have a fee or minimum order, per the WSJ.
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