Today in retail, paper couponing is bouncing back to join digital savings programs, while lower grocery budgets mean shoppers are shying away from name brands. Plus, Sonic Automotive adds a retail hub location in Raleigh, North Carolina, and retailers are pushing forward with “store of the future” concept.
Shoppers Turn Away From Name Brands as Inflation Takes a Bite out of Grocery Budgets
Consumer packaged goods merchants have had it good since 2020 as consumers ignored price increases and stocked up on pretty much everything for a year-plus after COVID-19 lockdowns began.
That crisis has been displaced by soaring prices, with the U.S. Bureau of Labor Statistics reporting in March that its food index rose 7.9%, the largest 12-month increase since 1981.
“Shoppers are buying staples in smaller quantities, switching to cheaper, store-name brands and more rigorously hunting for deals,” The Wall Street Journal reported Monday (April 5). “The shift is especially pronounced among lower-income consumers who splurged on household products amid the heights of the pandemic.”
Farfetch to Pump Money and Punch Into Neiman Marcus and Bergdorf eCommerce Ops
The online luxury retail space got a big new player Tuesday (April 5), when U.K.-based Farfetch said it was investing $200 million into Neiman Marcus’ digital growth and operations, while also re-platforming the website and mobile app of the 115-year-old brand’s Bergdorf Goodman unit.
Farfetch said the three-way partnership was in line with its own digital growth and innovation initiatives and will help it expand beyond the 700 global fashion brands and designer boutiques it already sells products for, saying the collaboration comes at a pivotal point for the luxury segment that’s being fueled by highly engaged young consumers.
As Sales Slump, Sonic Automotive Ramps up Chain of Used Car Omnichannel Stores
Sonic Automotive continues to expand its EchoPark Automotive brand with the opening of its newest retail hub in Raleigh, North Carolina, according to a Tuesday (April 5) press release.
The new spot is EchoPark’s 37th location and the third in North Carolina, joining a retail hub in Charlotte and a delivery center in Greensboro.
EchoPark guests can shop in person or take delivery of their vehicles at the new Raleigh location after shopping online at EchoPark.com and choosing a pre-owned vehicle, according to the release.
PayPal to Launch New Cash Back Rewards Card Amid Consumer Belt-Tightening Trend
PayPal on Tuesday (April 5) announced the launch of the PayPal Cashback credit card, giving customers unlimited 3% cash back with every PayPal purchase and 2% cash back on other purchases.
The PayPal Cashback credit card, issued by Synchrony, gives shoppers 3% back when they pay with PayPal whether they buy online using their mobile devices or in stores with the PayPal QR code, the release stated. The card has no annual fee and can be added to a customer’s PayPal wallet.
The Smaller, Smarter ‘Store of the Future’ Trend Is Real
While much has been said about the spurt of new dollar stores dotting the retail landscape and accounting for the majority of new store openings, a second retail real estate rethink is emerging alongside that which could potentially dwarf the rising tide of discounters.
Specifically, the embrace of the smaller, smarter, store-of-the-future trend is underway, and it carries benefits for consumers and retailers alike.
“We’re seeing this amazing experience where new store openings are outpacing store closures (and) we’re seeing new formats that are highly digitized, smaller in footprint,” the National Retail Federation (NRF) tweeted Monday (April 4), citing a podcast appearance by Anjee Solanki, the head of U.S. retail at Colliers. The rise of “non-traditional retail” is more welcoming and experiential, the NRF said.
Shortages, Inflation Spur New Mix of Paper and Digital Couponing
Largely due to fears instilled in millions during the earliest days of the COVID-19 pandemic, the coupon business is undergoing a digital shift, but it’s also retaining a paper attachment when beneficial.
People who wouldn’t normally have thought twice about walking out of the store with one pack of toilet paper were looking to stock up. As the pandemic moves into its third year, Bill Beyea, senior advisory services manager at Inmar Intelligence, noted we’re still seeing random shortages of products as the global supply chain struggles to regain its pre-pandemic footing.
Add an inflationary environment to the mix, and it’s easy to understand why couponing is gaining a bit more cachet.
Transforming Paper Receipts Into Actionable Data, Insights for UK Customers, Merchants
From mobile wallets and mobile banking to QR codes and contactless payments, the COVID-19 pandemic has pushed digital payments into a new era, transforming the way consumers and businesses worldwide make and receive payments.
Despite this increase in payments innovation, very little has changed when it comes to payment receipts, more than 10 years after the invention of email receipts. That problem is what London-based retail startup Slip has been tackling since it launched in 2021, as part of plans to disrupt the retail experience for both consumers and merchants with a simple mobile-based solution.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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