CVS files to trademark its pharmacy and health clinics in the metaverse
Patents for stores, sale of virtual goods (prescription drugs, wellness, beauty / personal care products), and non-emergency medical services were filed. This particular editor is bearish on the Metaverse – but there are some large companies jumping into the foray early. Lessons learned from the DTC saga, perhaps. What will be telling is how and if users will engage.
Costco’s same-store sales jump 15.85 percent
Costco joins the flurry of earnings releases this week. Q2 net sales increased +16.1% ($50.9B). Net income was $1.3B (versus $951M LY). Comparable store sales in the US increased +15.85% (Total company: 14.4%). Ecomm accounted for 12.5% of total sales. Like most retailers, they’re undergoing supply chain woes. Larger pack-sizes and baskets doesn’t help. Inflation has eaten into the margins of Costco, with them balancing brand promise (value) against price increases. There’s a likelihood membership fees would rise again. They plan on opening 28 more warehouses, too.
Traditional CPG brands and DTC brands have been “switching lanes” lately, with CPG opening DTC channels and DTC looking to gain retail distribution. It’s a both and play. Social commerce (Think TikTok, Youtube, etc) is becoming more prevalent; discoverable and shoppable experiences can help scale out-of-market customers for brick&mortar retailers. Delivery, BOPIS, and curbside are other sales models to think through. Likewise, the right promotional, packaging, and customer “infrastructure” are vital. From timing, to bundling, to checkout, the possibilities to create great customer experiences are endless.
