New York Rep. Joe Morelle has introduced right to repair legislation, in a bid that could have a major impact on device manufacturers.
As phones, tablets and computers have become more complicated, the ability for the average consumer to repair them has become equally difficult. Even something as basic as changing a cellphone battery is nearly impossible for the average person.
On the heels of the New York Senate passing its own right to repair legislation, New York Rep. Joe Morelle has now introduced right to repair legislation in the US House of Representatives.
“For too long, large corporations have hindered the progress of small business owners and everyday Americans by preventing them from the right to repair their own equipment,” said Congressman Joe Morelle. “It’s long past time to level the playing field, which is why I’m so proud to introduce the Fair Repair Act and put the power back in the hands of consumers. This common-sense legislation will help make technology repairs more accessible and affordable for items from cell phones to laptops to farm equipment, finally giving individuals the autonomy they deserve.”
The Fair Repair Act will require manufactures to make tools, parts and information available to customers, as well as third-party repairers, making it easier for them to repair their own devices.
Given the anti-Big Tech sentiment that seems to be growing in both political parties, there’s a good chance the Fair Repair Act could soon become law.
Walmart is gearing up for nationwide drone delivery, following a successful pilot program that showcased the possibilities.
Drone deliveries are seen as one of the next major steps for retail, with Amazon, Walmart and others exploring the technology. Last year, Walmart partnered with DroneUp to test the viability of drone deliveries, and the results were promising. In fact, the company discovered it could cut delivery time from hours to mere minutes.
In view of the success of the pilot program, Walmart is doubling down on drone deliveries with an investment in DroneUp.
Now, after safely completing hundreds of drone deliveries from Walmart stores, we’re making an investment in DroneUp to continue our work toward developing a scalable last-mile delivery solution.
The company is touting its infrastructure, thanks to its thousands of stores around the US, as a major asset to successful drone operations.
Walmart already has a significant part of the infrastructure in place – 4,700 stores stocked with more than 100,000 of the most-purchased items, located within 10 miles of 90% of the U.S. population. This makes us uniquely positioned to execute drone deliveries, which is why our investment in DroneUp won’t just apply to the skies but also the ground. In the coming months we’ll be beginning our first operation at a store in Bentonville, Arkansas.
Walmart has been looking for ways to take on Amazon, and drones that deliver products in minutes is a big step in that direction.
Walmart is going the distance to ensure its employees can access its new app, giving 740,000 of them a Samsung smartphone.
The retailer is taking the wraps off of its Me@Walmart app, designed to make employees’ jobs easier and help them “plan for life outside of work.” The company is determined to make it as easy as possible to use the app, even providing the phone for it to run on.
Walmart will be providing a Samsung Galaxy XCover Pro smartphone, case and protection plan, completely free. Employees will only be able to access Me@Walmart’s work feature when they’re on the clock, but are free to use the phone as their personal device. The company emphasizes employee privacy is paramount, and that it has no access to employees’ personal data.
The company says this is just the beginning, and it will continue to add features to the Me@Walmart app.
In the coming months, we’ll add another feature to the Me@Walmart app that helps speed up the time it takes our stocking associates to get items from the backroom to the sales floor. Instead of scanning each box individually, associates just hold up their device and, using augmented reality, highlight the boxes that are ready to go. Product gets on the shelf faster — something we all know is increasingly important. In fact, since piloting it last year, this patent-pending capability takes a third of the time than the previous manual process.
As retail continues to evolve — and quickly — it’s more critical than ever to equip our people with the tools and technology they need for success. Doing so makes work easier and more enjoyable, and it keeps the focus where we need it most — delivering a great in-store, pickup and delivery experience for our customers.
Amazon is throwing its weight behind efforts to revitalize the United States Postal Service, calling it the company’s “first and oldest business partner.”
The USPS has been facing increasingly difficult times as a result of the digital transformation. With people relying more on electronic communications than letters, USPS revenue has dropped precipitously. The outlook is even worse, with the USPS estimating it will lose $160 billion over the next 10 years.
The Postal Service Reform Act is bipartisan legislation that has been introduced in an effort to help the USPS transition to a more sustainable future.
We’re proud of our partnership with USPS and want to continue working with the agency to innovate and deliver for our customers well into the future. With the House Oversight Committee’s swift advancement of the Postal Service Reform Act, we hope the full U.S. House and Senate will follow suit. Enacting these common-sense reforms will help guarantee that the USPS remains an affordable, reliable, and profitable package delivery system for the American people.
It remains to be seen what will happen with the the Postal Service Reform Act, but Amazon has made it clear where it stands.
“Our digital performance was up 50 percent,” says Target CEO Brian Cornell. “As we gain greater clarity around the consumer, the economy, the state of the vaccine, we feel that the consumer continues to respond to our in-store experience and the ease and convenience of shopping with some of our same-day services like pickup, drive-up, and ship. Same-day fulfillment services now represent over half of our digital channel.”
Brian Cornell, CEO of Target, discusses their massive Q1 results in an interview on CNBC:
Digital Performance Up 50 Percent
We’ve had a string of really solid results going back to 2017 but this quarter may be one of the highlights. Our team executed throughout the quarter. We had a great performance from our store teams with a store comp of 18%. Our digital performance was up 50%. It was really a team effort. We had great supply chain support with our merchants and marketers all coming together to support the results which speak for themselves.
We are benefitting from investments we’ve been making for years now. Our investment in our store experience, our curated Home Brand and national brand mix, and then the fulfillment services that we offer. That combined with the investment in our team, I think we are seeing continued strength. We feel really good sitting here right now about our outlook, not just for the second quarter but for the full year.
We’ve Connected With The Consumer
As we gain greater clarity around the consumer, the economy, the state of the vaccine, we feel that the consumer continues to respond to our in-store experience and the ease and convenience of shopping with some of our same-day services like pickup, drive-up, and ship. They really connect with our curation of Great Home Brand, national brands, and the service our team provides each and every day.
We are feeling very confident about our position today. I look at the proof point from Q1, we picked up another billion dollars in market share on top of the $9 billion of share last year. That’s just a sign that we’ve connected with the consumer, we’re building relevance, and we’re providing what they need and what they want throughout the year.
Newness Is A Huge Trend In Our Business
When you see the combination of stores comping up at 18%, which to me is just a highlight number, and categories like apparel growing again by over 60%, that combination of store traffic and category mix really benefited us throughout the quarter. We are seeing a resilient consumer. They’re clearly shopping our stores and when they’re there they are attracted to anything that’s new.
Newness has certainly been a trend throughout our business in the first quarter and I think that’s going to continue. That great combination of store traffic and store comps and the continued movement of same-day fulfillment services which now represent over half of our digital channel. We really like that transaction. It looks and feels more like a store transaction which from a profitability standpoint certainly is beneficial for us.
Target CEO Brian Cornell Says Digital Performance Up 50%
Amazon has announced it is hiring tens of thousands of new workers, across the US, Canada and the UK.
Amazon has been one of the companies that has benefited most from the pandemic. During lockdowns and quarantine, the e-commerce giant went from luxury to necessity for many people, and its hiring has reflected that growth.
Although many areas are easing restrictions, Amazon continues to benefit people’s newfound appreciation for the convenience of home shopping. In addition, the company is preparing for its upcoming Prime Day next month.
As a result, Amazon has announced it is hiring an additional 75,000 employees across the US and Canada, with average starting pay of over $17 and $1,000 starting bonus.
“We look forward to hiring 75,000 associates across our fulfillment and transportation network,” said Alicia Boler Davis, Vice President of Global Customer Fulfillment at Amazon. “Working at Amazon also comes with an unwavering commitment to safety, especially as we continue to navigate a global pandemic. In addition to the great pay and robust benefits available to new hires starting on their first day, we’re offering a $100 benefit to new hires who come to Amazon already vaccinated for COVID-19.”
The company is also hiring for 10,000 new permanent jobs in the UK, bringing its total UK workforce to more than 55,000.
Business Secretary, Kwasi Kwarteng, said: “Amazon’s announcement today is fantastic news and a huge vote of confidence in the British economy, helping us deliver on our commitment to level up across the UK with a whopping 10,000 new permanent jobs. As we build back better from the pandemic, this is a prime investment in our retail sector.
“Over the past year, Amazon’s workforce have pulled out all the stops to ensure consumers have had safe access to goods during this challenging time. Their latest investment will open up a wide range of opportunities for even more workers, helping to develop the skills needed to power tomorrow’s economy.”
Amazon has announced it is launching a lawsuit to tackle text scams that purport to be from the e-commerce giant.
Countless individuals have received text messages claiming to be from Amazon, many of them requesting feedback in an online survey. Unfortunately, many of these messages are part of an illegal advertising scheme. The text messages promise rewards or gifts, but direct people to sites where they must purchase products that have no affiliation with Amazon.
The company is taking the fight to the scammers, filling a federal lawsuit in the Western District of Washington against a number of yet-to-be-named participants. Amazon sees the lawsuit as a way of expanding its fraud-fighting efforts, holding the accountable parties responsible.
“Amazon works hard to build a great, trusted experience for our customers and sellers,” said Kathy Sheehan, VP, Business Conduct & Ethics, Amazon. “These bad actors are misusing our brand to deceive the public and we will hold them accountable. We also want to remind consumers to be vigilant and learn how to recognize the signs of a scam so they are protected, no matter where they shop.”
The company points to its history of successfully litigating these type of suits, having filed five previous lawsuits, winning multiple injunctions and forced seven parties to settle for more than $1.5 million in damages.
What was years in the making has finally happened, with Amazon passing Walmart to become the largest apparel retailer in the US.
Experts had been predicting Amazon would overtake Walmart for years. Like many other transformations, however, the pandemic is what finally pushed the online giant across the finish line. As individuals remained in lockdown and avoided crowded stores, Amazon’s business went into overdrive.
According to Wells Fargo, via CNBC, that was enough to help it surpass Walmart in the apparel space, with its apparel and footwear growing an estimated 15% in 2020 to more than $41 billion. That gives it a solid 20% to 25% lead over Walmart.
“This represents highly impressive 11%-12% share of all apparel sold in the U.S. and 34%-35% share of all apparel sold online,” wrote Wells Fargo analysts Ike Boruchow and Tom Nikic. “We now estimate Amazon will surpass $45 billion in apparel/footwear sales in 2021.”
Interestingly, the outlook was not all roses for Amazon, as there are still some high-profile brands that refuse to sell on the online store. Much of this is due to the way Amazon approaches the business, focusing on sales over helping companies build their brand.
“Until Amazon becomes a platform that works with companies to elevate brands, rather than viewing the relationship as transactional, companies who are fiercely protective of their brands (e.g. Nike), will not sell to Amazon,” said the analysts.
Best Buy has announced a yearly membership program, for $199.99, that provides special pricing, free installation and unlimited tech support.
Like many companies, Best Buy has been working to transition away from brick and mortar stores, in favor of online shopping. The company recently announced it had laid off 5,000 employees, and would close more stores in 2021 than in previous years.
The company is now offering a membership program, called Best Buy Beta. The program will cost $199.99, or $179.99 for customers with the Best Buy credit card. The program will be available in 60 stores by the end of the month.
“As we look to evolve our membership programs, the goal of Best Buy Beta is to create a membership experience that customers will love and to leave them feeling confident throughout their relationship with Best Buy,” said Allison Peterson, Best Buy’s chief customer officer. “This pilot offers premium service, complete with support aimed at anticipating our customers’ needs.”
The service will also provide a 24/7 concierge team, available via phone, chat, email and the Best Buy app. The service is currently available in Iowa, Oklahoma and eastern Pennsylvania, with Minnesota, North Carolina and Tennessee next in line.
“We are arming the rebels… the entrepreneurs, the small business owners, the independent brands, and the rebels are winning,” says Shopify President Harley Finkelstein. “It feels like the retail world that would have existed in 2030 was pulled back to 2020. We have seen this massive catalyst to an acceleration in digitalization in commerce and retail. We are writing the future of commerce and entrepreneurs are really the heroes of the Shopify story.”
Shopify President Harley Finkelstein says the rebels―the entrepreneurs and the small business owners―are the heroes of the Shopify story… and the rebels are winning:
We Are Arming The Rebels
There’s a lot to be optimistic about even in the second half of 2021. It feels like the retail world that would have existed in 2030 was pulled back to 2020. We certainly have seen this massive catalyst to an acceleration in digitalization in commerce and retail. But actually, we are writing the future of commerce and entrepreneurs are really the heroes of the Shopify story. We are arming the rebels… the entrepreneurs, the small business owners, the independent brands, and the rebels are winning.
Consumers have been voting with their wallets for the last ten months or so to buy from independent brands wherever possible. In 2020, 47 million consumers purchased from a Shopify merchant. That’s up 52 from 2019. Our merchant’s performance helped expand Shopify’s lead on an aggregated basis to be the second-largest e-commerce retailer in the U.S. Shopify is now about nine percent of all US ecom. If you think about it, Shopify is a proxy for independent retail and for direct-to-consumer retail.
Shop Pay Launches Accelerated Checkout
We only succeed when our merchants do. This has led to us having more than 1.7 million merchants on Shopify. This includes people from first-time entrepreneurs making their first sale every 28 seconds to the likes of O’Neill and Hallmark and Herman Miller and Purina. Diageo, who also just launched in Shopify and in Q4 alone revenue nearly doubled year over year to $978 million. There’s a lot to be optimistic about. Actually, the future of retail and commerce we think is going to look a lot more like these independent brands than these sort of department stores that existed in the past.
Shop Pay is our accelerated checkout. We just announced it last week. We know that it not only helps merchants get more sales, it helps buyers convert better and much faster. Now we think that providing it to the Instagram and Facebook platforms means that our merchants can not only access new customers on those platforms, and frankly anywhere where customers are, but now can transact in a more efficient way. Shopify is becoming far more than an e-commerce provider.
Future of Retail Is Wherever Consumers Are
We are trying to build the world’s first retail operating system, which makes it as easy as possible and where the cost of failure is as low as possible, so more people can participate in entrepreneurship. We think the future retail is not online or offline or anywhere, in particular, it’s wherever consumers are. That’s what we’re trying to build. Seeing Shop Pay move into Facebook and Instagram is a really great way to demonstrate where the future of retail is happening.
We are trying to get to a point where we completely democratize entrepreneurship. We use a 100-year perspective and we want to build a 100-year company. We’re about 15 years into our journey right now and we have 85 years left to go. In the long run, we’re happy where Shopify is but frankly, on the topic of more participation in the equity markets, we think that is also entrepreneurial and we think that’s also democratizing.
Best Buy has laid off some 5,000 employees and plans to close additional stores as customers turn to online shopping.
American customers have increasingly been turning to Amazon and online stores for their electronics needs, putting pressure on traditional, brick and mortar stores. With the pandemic further changing consumers’ shopping habits, traditional stores have been under even more pressure. Fry’s Electronics announced it was closing Wednesday, illustrating the growing challenges traditional businesses are facing.
Best Buy, in contrast, has fared relatively well during the pandemic. Much of this is due to the company’s online sales. According to CNN Business, the company expects 40% of its sales to come from online purchases in 2021, as opposed to 19% two years ago. The company has also been relatively successful with its physical stores, although it expects in-store business to slow this year.
As a result, Best Buy has laid off 5,000 staff, mostly full-time employees. The company is also raising the bar for evaluating whether to renew store leases. The company already closed 20 stores a year for the past couple of years, and expects that number to go up this year.
Amazon has just launched their first electric Rivian delivery vans on the road in Los Angeles. Customers will begin seeing the custom electric delivery vehicles in up to 15 additional cities in 2021. The company plans to have a 10,000 electric delivery fleet operating on the road in the United States and Europe by 2022.
“We’re loving the enthusiasm from customers so far—from the photos we see online to the car fans who stop our drivers for a first-hand look at the vehicle,” said Ross Rachey, Director of Amazon’s Global Fleet and Products. “From what we’ve seen, this is one of the fastest modern commercial electrification programs, and we’re incredibly proud of that.”
Ross Rachey, Director of Amazon’s Global Fleet, outlines the company’s electric delivery plans:
“We are reimagining sustainable delivery,” says Ross Rachey, Director of Amazon’s Global Fleet. “Climate change doesn’t allow us to sit back and be passive. We can’t wait. This vehicle went from sketch, to design, to on-road testing with customer deliveries in just over a year. And we’ll build on that momentum heading into full-scale production.”
“Amazon made a commitment to be net-zero carbon by 2040,” notes Rachey. “Electrifying our fleet is going to help us get there. We’ve relied on Rivian’s automotive expertise. We’ve listened to our drivers. We’ve created something that’s at the leading edge of safety technology, that’s better for our drivers, better for the planet, and unlike anything that’s out on the road today. We’ve reset expectations for electric delivery vehicles. And we’re just getting started.”
Amazon partnered with Rivian, leveraging its customizable skateboard platform to create a first-of-its-kind all-electric delivery vehicle. “Rivian’s purpose is to deliver products that the world didn’t already have, to redefine expectations through the application of technology and innovation,” said RJ Scaringe, Rivian Founder and CEO. “This milestone is one example of how Rivian and Amazon are working toward the world of 2040, and we hope it inspires other companies to fundamentally change the way that they operate.”
The current fleet of vehicles was built at Rivian’s studio in Plymouth, Michigan, and can drive up to 150 miles on a single charge according to the company. Amazon has installed thousands of electric vehicle charging stations at its delivery stations across North America and Europe.
Amazon explains it’s ambitious goals:
Along with custom electric delivery vehicles, Amazon is exploring new technologies, alternative fuels, and delivery methods that deliver packages to customers in a more sustainable way. Amazon currently operates thousands of electric vehicles worldwide and is redesigning its delivery stations to service electric vehicles—ranging from the electrical design to the physical layout. Last year, Amazon delivered more than 20 million packages to customers in electric delivery vehicles across North America and Europe and will continue building on that momentum in 2021.
GM has launched a new business, BrightDrop, to build electric solutions to cover the entire delivery process.
As the transition to electric transportation moves ahead, GM is working to tackle the delivery industry. To better do so, the company is launching BrightDrop, with a focus on developing an “ecosystem of electric first-to-last-mile products.”
The first product that will come to market is the BrightDrop EP1, a propulsion-assist electric pallet. This will be followed by the BrightDrop EV600, an electric light commercial delivery vehicle.
The company will also be developing a range software and services to compliment its products.
“BrightDrop offers a smarter way to deliver goods and services,” said Mary Barra GM Chairman and CEO. “We are building on our significant expertise in electrification, mobility applications, telematics and fleet management, with a new one-stop-shop solution for commercial customers to move goods in a better, more sustainable way.”
GM is working with FedEx Express to fine-tune the new products and services. One pilot program has already been completed, with another slated to begin.
“Our need for reliable, sustainable transportation has never been more important,” said Richard Smith, FedEx Express regional president of the Americas and executive vice president of global support. “BrightDrop is a perfect example of the innovations we are adopting to transform our company as time-definite express transportation continues to grow. With this new suite of products, we will help improve the safety, security and timeliness of FedEx Express deliveries, while reducing our environmental impact and protecting the well-being of our couriers.”
Staples is once again offering to buy Office Depot, this time for $2.1 billion.
Staples had previously tried to purchase its rival in 2015. At the time, the Federal Trade Commission (FTC) blocked the merger, saying the combined company would control too much of the market.
According to CNN Business the company is determined to do whatever it takes to gain regulatory approval this time around. It has signaled it’s even willing to sell CompuCom, its IT management company, or sell its business-to-business unit.
Staples is offering $2.1 billion, or $40 per share. This represents roughly a 60% premium over Office Depot’s current stock price, as of the time of writing. The translocation would be an all-cash deal, according to Staples.
Verizon used CES 2021 to announce its Skyward drone company will be collaborating with UPS Flight Forward for retail deliveries.
The Federal Aviation Administration (FAA) recently took important steps toward making drone deliveries a reality. It’s no surprise that UPS is quickly moving to ensure it can provide the service to its customers, and is collaborating with Skyward to make it happen.
“We will need the ability to manage and support multiple drones, flying simultaneously, dispatched from a centralized location, operating in a secure and safe environment. To do this at scale, alongside Verizon and Skyward, we’ll need the power of 5G,” said Carol B. Tomé, CEO of UPS.
“We’re just beginning to see how the power of 5G Ultra Wideband will transform the way businesses operate,” said Rima Qureshi, Chief Strategy Officer at Verizon. “By partnering with UPS and other innovative companies, we can learn from each other’s expertise and collaborate to create solutions that help move the world forward.”
UPS has already had more than 3,800 drone delivery flights. With the global pandemic, however, drone deliveries have become more important than ever and are widely seen as a way to deliver products in a safe way. The rapid increase in demand is no doubt responsible for UPS working with Skyward.
The drones will stay connected and be controlled via Verizon’s 4G LTE network, as well as its 5G network where possible.
Some of the biggest retailers are using artificial intelligence (AI) to help dictate their return policies.
For many consumers, once they return an item they never give it another thought. For retailers, however, returns can represent a significant loss. There are a number of factors that can make it even worse, such as the size of item, shipping and shelf life.
Walmart, Target and Amazon are turning to AI to help them optimize their return process. According to The Wall Street Journal, the retailers are using AI to determine when it is worth processing a return, versus letting the customer keep the product and issuing them a refund instead.
Lorie Anderson of Vancouver, WA, tried to return makeup to Target, as well as batteries to Walmart. In both cases, the retailers told her to keep the items and still issued a refund.
“They were inexpensive, and it wouldn’t make much financial sense to return them by mail,” Ms. Anderson, 38 years old, said. “It’s a hassle to pack up the box and drop it at the post office or UPS. This was one less thing I had to worry about.”
Target even encourages customers to donate items they receive a refund for.
AI has been making its way into a wide range of industries. This is merely the latest example of how it can be used to help companies make better decisions.
The Federal Aviation Administration (FAA) has passed new rules allowing drones to fly at night and fly over people.
Drones represent the single fastest-growing segment in the transportation sector, although the lack of clear regulation has slowed full adoption. The FAA has now addressed two of these issues, passing rules that should pave the way for more widespread drone usage.
The first change is that the FAA will now require Remote Identification (Remote ID) for drones. Remote ID will help integrate drones with the national airspace system by providing a way to identify them and their control station locations.
The second major change is allowing drones to be flown at night, as well as over people. While these kind of operations are currently allowed, they’re only allowed with a waiver from the FAA. With the new rules, drone operations will have increased flexility to perform these kind of operations without a waiver.
“The new rules make way for the further integration of drones into our airspace by addressing safety and security concerns,” said FAA Administrator Steve Dickson. “They get us closer to the day when we will more routinely see drone operations such as the delivery of packages.”
Amazon has reported a record-breaking holiday season, shipping some 1.5 billion products.
Consumer purchasing has underwent major transformation as a result of the pandemic. Record numbers of individuals turned to online shopping to avoid crowds and practice social distancing.
Amazon was one of the biggest beneficiaries of this transformation, as customers turned in droves to the online giant. The company delivered some 1.5 billion electronics, toys, home products, beauty and personal care products during the holidays.
In addition, third-party sellers saw a 50% growth in sales, compared to 2019. Small and medium-sized businesses sold almost 1 billion products via Amazon.
The company’s growth also resulted in hundreds of thousands of new jobs, with the company adding some 400,000 full and part-time jobs in 2020. The company also spent over “$2.5 billion in bonus pay to front-line workers,” as well as donated millions of items during the holiday season.
“Amazonians around the world have truly shown what it means to be customer-centric and support our communities this year,” said Jeff Wilke, CEO Worldwide Consumer at Amazon. “When our customers—including healthcare workers on the front lines—most needed essential supplies, our teams and partners went above and beyond to stock and deliver those items. When it became clear that COVID-19 testing was going to be important, Amazonians across the company moved quickly to build our own testing capacity so we could help protect employees and deliver products to customers. And when customers needed a little extra holiday cheer, millions of employees and partners worked together to deliver more savings and holiday gifts than ever before. We couldn’t be prouder of, or more thankful for, our teams around the world.”
Given the success of online shopping this year, and especially this holiday season, it’s a safe bet shopping is forever changed.
“Customers that engage with us from a digital standpoint also continue to enjoy coming into the store,” says Kroger CEO Rodney McMullen. “They also spend about twice as much with us. When you look at those things together I really feel optimistic about the future. We’re continuing to make progress on the things that matter on a seamless experience… digital, fresh, and friendly.”
Rodney McMullen, CEO of Kroger, says that customers who engage digitally come in more often and spend twice as much on average as non-digital customers:
Seamless Experience of Digital, Fresh, and Friendly
Every day our associates are taking care of our customers. We’re continuing to make progress on the things that matter on a seamless experience… digital, fresh, and friendly. When you look at the things behind the numbers continuing strong trends. If you look at the things that we’re doing it sets us up well for the fourth quarter and sets us to continue to gain share in 2021 as well.
One of the things that our customers are telling us is they’ve learned how to cook, they enjoy cooking, and they enjoy the time together as a family. Also, I think the economy continually will continue to be a little bit soft which will cause people to eat at home more as well. Both of those things will continue to provide support (for increased sales).
Customers That Engage Digitally Spend Twice As Much
Obviously, we’re anxious for the vaccine to get here and to get widespread use of it just like everyone else is. We were making great progress in gaining share even before COVID 19 started and we expect once things get back to normal we’ll be able to continue to gain share as well. We can’t wait until a vaccine gets out there and it gets widespread usage.
I really believe our teams will continue to take care of our customers and the seamless experience will tie it all together. What we find are customers that engage with us from a digital standpoint also continue to enjoy coming into the store. They also spend about twice as much with us. When you look at those things together I really feel optimistic about the future.
Kroger CEO Rodney McMullen: Customers That Engage Digitally Spend Twice As Much
Amazon has a complicated relationship with its employees and the latest reports are not likely to help the situation.
With an employee base closing in on 1.2 million, Amazon has been a source of reliable employment for many during the pandemic. At the same time, the company has often been criticized for its climate policies and for not doing enough to protect its workers from COVID.
Now employees have another reason to be angry at the company, as a report from Motherboard shows the company has used Pinkerton detectives to counter unionization efforts, as well as monitor environmental and social groups.
The documents show Amazon analysts closely monitor the labor and union-organizing activity of their workers throughout Europe, as well as environmentalist and social justice groups on Facebook and Instagram. They also indicate, and an Amazon spokesperson confirmed, that Amazon has hired Pinkerton operatives—from the notorious spy agency known for its union-busting activities—to gather intelligence on warehouse workers.
At a time when Amazon is already under scrutiny, this latest revelation is not likely to do the company any favors.
Luxury online retailer Farfetch, where product prices start at around a thousand dollars, had a breakout IPO on Thursday, raising $885 million while setting a valuation of $6.2 billion for the company. Then on Friday the stock surged 53 percent above their initial offering price and it’s up again this morning valuing the enterprise at $7.4 billion.
Farfetch plans to use their IPO windfall to dramatically improve their technology which they see as the best way to improve the consumer experience.
Farfetch Founder and CEO José Manuel Ferreira Neves recently discussed Farfetch and the online luxury brand industry on Bloomberg:
Online Luxury is Growing 25 Percent a Year
It’s a very unique opportunity. You have this amazing global industry. It’s $300 billion, the personal luxury goods industry and only 9 percent is online. There are two opportunities here really. One is the growth of online luxury which is going to grow to 25 percent a year for the next seven years. This is a $100 billion opportunity shift in online luxury.
The big question is how is technology going to help brands and retailers really improve the consumer experience in the physical store. This is something at Farfetch that we are very passionate about.
China is an Incredible Opportunity for Online Luxury
China is a very exciting opportunity. Chinese citizens are at the onset of the luxury industry, whether they shop at home or when they’re shopping abroad. Online penetration is very low in China so this means that there is an incredible growth runway for Farfetch in the territory.
That led to our partnership with JD.com where we have our own team. We have the Farfetch China app and website, we have local customer service, local payment systems, and local marketing. It’s a truly localized service. That is what’s driving incredible growth to the Farfetch brand in that region.
José Neves, founder and CEO of @farfetch, told us about the company’s grand ambitions for China at the WWD’s Men’s Wear Summit this week. https://t.co/MrMj7y5VCG
WeChat is an amazing app with over 900 million users. It is the Instagram, plus WeChat, plus PayPal, etc. of China in one app. That is very powerful and very interesting. Now with our acquisition CuriosityChina we are powering the retail presence of 80 luxury brands. We think that is very interesting for the industry and we think that is probably something that we will see for the western world.
Brands Now Using Social and Digital Marketing Extensively
I think brands move cautiously and they choose their marketing channels very carefully. As these newer channels have developed the brands have adapted to them and their now using social media and digital media extensively to create desire, to drive discovery of new products obviously transactions as well.
It’s a gradual pace but it’s really exciting that were at that inflection point where the brands see this as a tremendous opportunity.
