Hey Friends,
While 2023 hasn’t been the fire sale that we saw post pandemic, brick and mortar retail is still experiencing headwinds. Whether it’s to cut cost, a reevaluation of store formats or part of their digital transformation here is a breakdown of retailers who have announced changes:
Lidl - after it’s big debut in the United States in 2017, Lidl has announced the closing of 11 stores on the east coast effective immediately
Walgreens - Walgreens plans to close 150 stores in the U.S. and 300 in the U.K. citing company restructuring and reduction in demand for Covid related products and services.
Amazon Go - Amazon has closed nine of its Amazon Go locations , which uses the company's Just Walk Out technology
It’s not all negative on the brick and mortar front:
Aldi - adding additional 120 stores this year brining their total to more than 2400
Lowe's is broadening its footprint with a new one-stop shop concept in up to 300 additional Lowe's stores by year end. Lowes is also expanding it’s new partnership with Petco, offering store-in-store expansion to 300 additional locations.
Five Below - CEO Joel Anderson, said the company is on pace to exceed its goal of opening 200 stores in 2023, and while also seeing increased revenue per volume through the conversion to Five Beyond stores.
In some technology news this week, Amazon announced that its Amazon One palm scanning payment technology will be available in every Whole Foods location across the country by the end of the year. While the convenience factor of being able to leave your wallet and phone at home is resonating with some customers, others are skeptical that providing Amazon with biometric data may be a risk, citing the lack of true end-to-end encryption.
Dufry, the duty-free and travel retailer we have come to know and love in an airport near us, announced a partnership with Perfect Corp., a leading artificial intelligence and augmented reality provider to the beauty and fashion industry. This partnership will bring virtual try-on to shoppers across 15 cosmetic brands starting with 4 airports across the UK and Spain.
The European Council passed a law this week that will require smartphone manufacturers to have replaceable batteries in any phone sold in Europe by 2027. This law aims to strengthen the sustainability of battery waste and will regulate the entire lifecycle of smartphone batteries moving forward.
The White House is partnering with big tech to bring forward an initiative that allows Americans to identify devices that are less vulnerable to cyberattacks. Internet-connected devices like refrigerators, TVs, microwaves and climate controls could bear the U.S. Cyber Trust Mark shield if they meet cybersecurity requirements laid out by the federal government and could be up and running as early as next year.
The Federal Trade Commission and Department of Justice this week released a set of 13 proposed guidelines for mergers and acquisitions. The main topic of concern is to address “killer acquisitions” and deal with the competitive landscape currently shaping big tech and retail.
And to finish with something positive…
Walmart announced most of its stores will offer "sensory-friendly shopping hours" every Saturday from 8 a.m. to 10 a.m through August to better accommodate individuals with sensory disabilities. During these times, store lights will dim, turn down radio and TV noise in an effort to make back-to-school shopping more accessible for a broader range of customers.