Hey Friends,
A lot of news shaping retail this week with earnings calls, retailer keynotes and industry technology showcases.
PacSun is expanding its RFID footprint in 50 stores to improve inventory accuracy, streamline replenishment, and enhance customer experiences. Partnering with Nedap, the iD Cloud solution has boosted inventory count accuracy to 98%, facilitating better omnichannel fulfillment and buy-online-pickup-in-store options. Chief Digital Officer Shirley Gao highlighted RFID's ability to quickly locate items and reduce labor, describing it as a "magic wand" for inventory management. This technology supports PacSun's goal of serving Gen Z customers with accurate, real-time inventory for online and in-store orders, including through digital partners like Amazon and Instagram.
While nothing has been confirmed, rumblings around Amazon Alexa is getting an upgrade and could require a separate membership from Prime. Per internal memo’s Amazon will launch a more conversational version of Alexa later this year, potentially positioning it to better compete with new generative AI-powered chatbots from companies including Google and OpenAI. Amazon has also made some upgrades to its Fire TV search experience to make finding relevant movies and shows easier. Through a notable boost to Alexa’s AI powers, users can search for content using natural language. The feature is only available in English for now, and it’s gradually rolling out to US-based users.
The UK has enacted the Automated Vehicles (AV) Act, officially establishing regulations for self-driving cars. The government expects fully autonomous vehicles to be on UK roads by 2026. Transport Secretary Mark Harper stated that while people can still choose to drive, this legislation will enhance road safety and benefit the economy.. The UK has allowed driverless cars on public roads for years under strict rules. As the autonomous vehicle industry advanced, a new legal framework became necessary. The groundwork for this was laid in a 2022 joint report by the Law Commissions of England, Wales, and Scotland, which highlighted the need for new terminology, legal roles, and regulations. This led to the formal proposal of the Automated Vehicles (AV) Act.
in some delivery news…..Walmart is expanding its InHome delivery service to Philadelphia, Boston, Detroit, Minneapolis, and San Bernardino, aiming to reach an additional 10 million U.S. households. Launched in 2019, InHome allows workers to deliver groceries directly into customers' homes and became an add-on option to Walmart+ in 2022. Upcoming upgrades, discussed in a keynote session with Microsoft, include automated replenishment, though the launch date is yet to be announced.
Following a successful pilot with Instacart, the online grocery delivery company, Home Depot will offer same-day deliveries at its nearly 2,000 store locations in the U.S. Customers can now order a wide range of home improvement items on Instacart’s platform and have them delivered directly to their homes, with some deliveries in as little as one hour.
In some sporting news, Liverpool FC has opened its first international fulfillment center in Roermond, Netherlands, in partnership with UPS. This new warehouse, powered by renewable energy from 10,001 solar panels, aims to improve the speed, cost, and efficiency of delivering retail orders to fans. This facility supports Liverpool FC's ambitious international strategy by enhancing its retail operations. Liverpool FC ships to 180 countries and operates 16 standalone club stores worldwide, offering official merchandise to its global fanbase. Partnering with UPS, Liverpool FC will enhance its global retail and e-commerce operations, benefiting Reds supporters through improved delivery services.
Stop & Shop is closing several "underperforming" stores in the Northeast, though it hasn't specified how many. The grocery chain currently operates nearly 400 stores across Connecticut, Massachusetts, New Jersey, New York, and Rhode Island, with 57 in New Jersey.
A current Senate bill would revolutionize self-checkout in California. The California state Senate is reviewing Senate Bill 1446, which aims to protect workers in grocery and pharmacy stores with self-checkout systems. Introduced by Sen. Lola Smallwood-Cuevas, the bill requires specific measures, such as limiting self-checkout stations to two per monitoring employee, and including self-checkout in work hazard analyses. Retailers must also conduct assessments on the impact of self-checkout on jobs before implementation, notify employees 60 days prior, and provide access to the assessment. The bill comes as California's new $20 minimum wage for fast food workers takes effect. In the recent PYMNTS report “What’s Next in Payments: Payments Modernization,” 15 payments and financial services executives look at the necessity of bringing payments up to date. Justin Downey, vice president of product at Maverick Payments, notes how providing more frictionless checkout experiences can be key to ensuring a positive consumer experience.
“Business that can adapt to very convenient ways for customers to pay are going to win in the long run … so staying on top of offerings for a streamlined payment and checkout approach is a heavy focus,” Downey told PYMNTS in an interview for the report.
Self checkout has been heavily scrutinized as of late, as more and more retailers are evaluating their position. According to the Wall Street Journal, problems with technology are prompting companies including Target and Walmart to change operations or ditch the stations and more retailers are scaling back self-checkouts to help improve customer satisfaction and experience in-store and curb theft.