This Week in Retail Marketing Innovation - Dec. 4th 2017
Cyber Monday Broke All Records
The confluence of rising consumer confidence, stock market records, improved mobile commerce and targeted advertising powered by treasure troves of consumer data led to inevitable records in CyberMonday spending - $6.6 billion worth. Retail stocks rose on the news all week (as well as the tax cut that would comparitively help retail stocks), including that Black Friday traffic was up and even struggling Macy’s had to hire more help. 174 million shoppers came out to stores or online from Black Friday to Cyber Monday spending on average $335 per person.
Amazon won big on Cyber Monday with purchases on its App up a massive 50% YoY. Amazon also publicly touted over 140 million items ordered from small businesses. Needless to say, it was their biggest single shopping day ever. Until next year, we’re assured.
Big Cyber Monday trends were the gains in mCommerce, the prevalence of deep discounts, the extension of of the Turkey Five (Thurs-Mon), and the affinity for tech products.
CVS and Aetna – A Vertical Transformation for Medicine or a Threat to Consumers
The street is all atwitter about the CVS and Aetna merger. Although this was rumored for the past couple weeks, the $69 billion deal was officially announced this weekend. Proponents argue that the merger could lead to lower prices, faster care, better data and better outcomes. Others warned the merger would lead to consolidation to fewer pharmacy benefit managers and thus less competition leading to higher prices. Some claimed it was a necessary response to Amazon wading into the space as we reported several weeks ago.
Hot in-Store Retail Tech – IOT, RFID and AI
Retailers like Lowe’s, Finish Line, Lululemon and Kroger are leveraging technology to improve the experience in-store, better manage inventories and personalize offers to shoppers. There’s no cheaper way to test concepts than to learn from the competition.
And would you believe it, Walmart just filed a patent for building physical storefronts directly in your home. Smart or just too far out? We hope the Black Friday sales doesn’t lead to mobs in your house. More seriously, Walmart is making big bets on shelf monitoring robots, VR for shelf visualization and more.
Small is Big Again
Numerous retailers are making heavy investments in smaller format stores. Sears recently announced its plans for smaller format stores focused on appliances and mattresses. Is this the store of the future or just a financial necessity to sell off space in order to address upcoming debt maturities?
Target of course has been the most recognized innovator in the small store concept. Target CEO has said that the small format stores are twice as productive per square foot. They also create some new, unique challenges to manufacturers that drive further towards omnichannel integration and endless aisle.
Retail Water Cooler Talk
Retail Dive announced its 2017 retail awards recognizing Amazon, Brandless, Target, Sephora, Amazon for Buying Whole Foods, Alexa for Technology and J.Crew for biggest disappointment. Ouch. Looking at the list, Amazon is dominating.
Our good friend Chris Walton of Omnitalk writes a great op-ed about the Store of the Future Won’t Be Amazon and what trends you should look for and leaders who execute them well. As always, it’s both entertaining and highly educational.
Artists are beginning to use ARKit in Miami’s Art Basel. Will this lead to a new creativity to bring digital content into physical retail? We at PERCH hope so. We have been selling mixed reality interactive displays for years.