Hey Friends,
Retail sales topped Wall Street analysts' expectations in March as consumers continued to spend despite a higher interest rate environment. Retail sales for the month increased 0.7% from the previous month, according to Census Bureau data. Economists had expected a 0.4% increase in spending, according to Bloomberg data. Meanwhile retail sales in February were revised up to an increase of 0.9%, from a prior reading of 0.6%. This is the second consecutive monthly uptick in retail sales.
Amazon released an update on Just Walk Out technology and checkout-free technology. The full article can be read here but to summarize:
Amazon invested heavily into checkout-free shopping experiences. These innovations, initially deployed in Amazon's own stores, have now expanded to numerous locations globally, offering customers the convenience of identifying, paying, and bypassing checkout lines.
Just Walk Out technology caters to customers on quick shopping trips, providing a seamless experience without the need for traditional checkout. Its popularity in small-format stores has led to plans for expansion in third-party locations. In larger grocery stores, Amazon Dash Cart has been preferred by customers for its functionality as a shopping companion, offering navigation assistance and real-time tracking of spending.
Amazon One, a palm recognition service, adds another layer of convenience and security, with widespread adoption across various retail environments. The success of these technologies is evident in increased sales, customer satisfaction, and operational efficiencies reported by businesses implementing them.
Looking ahead, there are plans to further enhance these technologies, particularly for large-format stores, by improving accuracy, speed, and customer experience. Dash Cart's focus on real-time cost monitoring aligns with customer preferences in larger grocery settings. Additionally, ongoing efforts prioritize customer privacy, with technologies like Just Walk Out ensuring anonymity by not collecting biometric data.
Contrary to misconceptions, these technologies do not rely on human monitoring but instead leverage advanced AI systems for accurate processing and automatic generation of receipts. As AI continues to evolve, the future of retail holds immense potential for further transformation through identity and checkout solutions powered by artificial intelligence.
I fully expect Amazon to try and capitalize on the opportunity to sell Dash carts and Amazon One to other retailers.
In some other Amazon news, Amazon accounted for 40% of ecommerce sales, 4% of retail sales in 2023 according to a Marketplace Pulse report.
Retailer 99 Cents Only files for bankruptcy and plans to shut down operations. The company announced it intends to close all 371 of its discount stores. The company plans to close 125 stores by April 30, and shut down the remaining locations by May 31, according to court documents.
According to some recent data from PYMNTS, I thought I would share some of their findings from their Household Supply survey on retail subscriptions:
Approximately one-third of subscribers prefer scheduled or auto-fill subscriptions for their purchases, while 15% opt for manual online orders when supplies run low.
Younger consumers, particularly Millennials and bridge Millennials, are more likely to rely on retail subscriptions for everyday shopping compared to older generations.
The impact of retail subscriptions on in-store shopping varies, with only about 3.8% of all subscribers stating that subscriptions fully eliminate their need to visit stores. However, certain subscription services like Chewy's Goody Box have a higher impact, with 11% of subscribers claiming they no longer need to visit stores.
A significant portion (26%) of subscribers foresee completing all their shopping through scheduled subscriptions in the future.
Despite the rise of subscriptions, nearly all consumers still engage in some level of in-store shopping for now. This presents an opportunity for online merchants to innovate and attract those who are hesitant to fully embrace subscription services.
Hy-Vee Inc. has revealed that it’s in the process of acquiring the Strack & Van Til Food Market chain, also known as Indiana Grocery Group LLC, which operates store locations throughout northwest Indiana. The deal will add 22 stores to Hy-Vee’s 550-plus retail business units.
In some retail leadership news….Under Armour’s chief people and administrative officer to step down on June 1 for “personal reasons,” the company said. Dr. Martens CEO to also step down by end of fiscal year.
And to wrap up this week……CanPay, the largest payment network for cannabis retailers and consumers, officially surpassed more than $1 billion in consumer purchases at state legal dispensaries. Used by more than 300,000 consumers nationwide, CanPay now serves as the preferred payment platform for approximately 1,100 participating dispensaries across the US.