Klarna’s vision to bridge the gap between “inspiration and transaction,” as CMO David Sandström puts it, is starting to become a reality now rather than later. Today, the company rolled out its first social-shopping tool, which connects online shoppers with retail employees through live messaging and video.

• The feature, called…Virtual Shopping, will be available to all of Klarna’s retail partners, which now total 400,000+ worldwide.
• It’s also a way to leverage the expertise of associates and demo products on the spot.

Version 2.0: “If the first wave of e-commerce was convenience, the second wave is going to be about personalization, humanization, and experiences,” Sandström told Retail Brew. “The e-commerce experience is very transactional, very rational, quite lonely, and boring when we’re serving customers.”

• More than three-quarters (78%) of US shoppers believe online retailers need to invest in new tech to create more personalized services, according to Klarna’s Shopping Pulse report.

Klarna said 300+ of its merchant partners have already been using the feature over the past few months. So far, it’s seen a 10x conversion rate on average, Sandström noted. Conversions are particularly higher in categories such as homeware, beauty, and luxury goods given the $$$ investment, added Adam Levene, director of social shopping at Klarna.

The big picture: The virtual shopping tool builds on Klarna’s acquisition of social-shopping platform Hero, for a reported $160 million, last year—as the company looks to move beyond BNPL.

• Sandström hinted that more social-shopping will be coming over the next year, but didn’t share specifics.

“This is really…part of the portfolio of creating a better marketplace. Buy now, pay later is one of those products—social shopping is another of those products,” he said.—KM

Good news for those who just can’t seem to memorize their credit-card number. Google announced yesterday that it’s rolling out virtual card numbers (VCNs), a new online checkout feature for Chrome Autofill.

It converts credit-card numbers into a different, distinct number, so the actual info isn’t shared with the merchant, which should keep it safe and sound in the case of a leak.

• VCNs are available for US Chrome desktop and Android users, noted Rajiv Appana, ​​who leads product for Google Pay. Capital One cardholders are up first, he added, followed by Visa, American Express, and Mastercard.

On the safe side: Appana told Retail Brew that the company hopes to address consumer fears of being “a little bit skittish” about sharing their info on the open web, particularly to smaller merchants. This is especially true for older generations who moved their shopping online during the pandemic, he noted.

“This complete new generation of folks who have never actually participated in online commerce now want to do that,” he said. “Now, they are looking for more secure ways to transact online.”

For each transaction, Appana said Google changes something about it. Through Capital One, for example, it creates a whole new number for every online merchant.

• The retailer itself doesn’t have to do any integration. And opting in for consumers is a one-step process, though Google is adding features to validate card ownership.

Pay it forward: Appana said retailers should see faster checkouts with this tool. Since it eliminates the need to input a CVV—preventing that inevitable dash to grab your wallet from the other room—they should also see lower cart-abandonment rates.

• It’s the latest step in Google’s goal to “reimagine how people pay digitally and online,” Appana said. Over the past six months, Google Pay has introduced the ability for merchants to create an online storefront, plus voice payment and bill-splitting tech.

+1: Beauty-box and meal-kit lovers won’t be left out; Appana said recurring subscriptions will still work with VCNs.—EC

Today’s top retail reads.

Threading the needle: A look at the FABRIC Act, the latest piece of legislation—and the first at the federal level—that could be coming for the fashion industry. (Vogue Business)

Over the top: When there are just too many loyalty programs. (The Takeout)

The next big thing: DTC disruption marches on, but are the possibilities endless? “We’re not that excited about single-product businesses any more,” said Caitlin Strandberg, a partner at VC firm Lerer Hippeau. (Thingtesting)

Unifying—and beautifying—product experiences: Clyde’s ownership enrichment platform seamlessly connects your product’s warranty, registration, and issue-resolution channels into a single (and very aesthetically pleasing) dashboard. Cheers to organization and deepening customer lifetime value. Get a demo here.*

^{*This is sponsored advertising content.}

The numbers you need to know.

As prices rise (we’re still processing yesterday’s CPI numbers), some consumers are choosing private-label brands over CPG giants for food and bev purchases, per data from intelligence company InMarket.

Taking a bite: From August 2021 to March 2022, the company found that shoppers spent ~20% more money on store-brand frozen foods compared to Nestlé’s Stouffer’s brand.

• For their hydration fix, about 10% more was spent on private-label bevs over Gatorade—same goes for snacks over Ritz.

Private-label dairy makes up about half of all spending in the category. In meat and seafood, at just under 20%, private labels reigned supreme (though, of course, Butterball dominated during the holiday season).

Target demo: Households making $100,000+ spent the most on private labels from November to December last year, InMarket found. And, after seeing a dip since December, private-label spending has largely seen an uptick across all income categories since February, with those making $15,000–$25,000 currently spending the most.

• Those aged 35–44 have consistently spent the most on store brands, though shoppers 75+ boosted their spend 36% from February to March.

Catch up on the Retail Brew stories you may have missed.

• What retailers get right—and wrong—about Gen Z
• Danone’s North American yogurt prez on supply-chain issues
• How Goodbuy hopes to revolutionize conscious shopping