Morning Brew - ☕ Cracking a mile

Solving the last-mile delivery puzzle.
Morning Brew October 19, 2022

Retail Brew

Attest

Hello, hello. If you’re craving pizza today, you’ve got a few options. Wisconsinites can head to what might be the world’s most extensive frozen-pizza section at local grocer Woodman’s, while the rest of us might have to roll the dice on Pizza Hut’s latest innovation: two slices of pizza folded together.

In today’s edition:

—Katishi Maake, Erin Cabrey

DELIVERY

Ready to deliver

Self-driving delivery trucks from Nuro and TuSimple alongside the more conventional UPS/USPS/Fedex boxy trucks Francis Scialabba

While last year saw hundreds of VCs pour money into 15-minute delivery services, and companies like Jokr raised hundreds of millions of dollars based on the assumption that consumers wanted their products ASAP, the last-mile delivery space has a lot to figure out.

Jokr, for example, significantly pared down its operations to focus on its more profitable Latin America business, demonstrating that navigating the last mile is still a major challenge for legacy and startup delivery companies that face issues like supply-chain snags, parking access, and navigating returns for consumers.

Take Coco, an LA-based remotely piloted delivery service, which officially took to the streets of Austin, Texas, earlier this year. Coco deploys fleets of automated robots that carry out deliveries, and it plans to expand its services to Dallas, Houston, and Miami throughout this year.

  • “Austin’s entrepreneurial spirit, top-notch food scene, and commitment to supporting small businesses makes it an ideal fit for Coco,” CEO and cofounder Zach Rash said in a statement.

In the startup space, Plano, Texas-based Pickup closed on a $15 million Series B funding round last year and is looking to close on a Series C by the end of the year. CEO Brian Kava told Dallas Magazine that the company was in roughly 30 US cities at the start of last year and now operates in 90+.

  • Kava believes consumers have three things they look for in an efficient last-mile delivery: flexibility, reliability, and quality.

Zoom out: Legacy last-mile delivery operators are also stepping up their game to compete with their new counterparts. FedEx, for example, teamed up with last-mile delivery company Nuro in 2021 to deploy fleets of robots similar to Coco’s.

Keep reading here.—KM

        

TOGETHER WITH ATTEST

See ya lata’, useless data

Attest

All marketers know they need to be data-driven. They’ve likely heard the phrase data-driven 300 times every workweek. But who’s got the time and resources to conduct research on a regular basis?

Attest does. Attest is myth-busting the misconception that research needs to be an overplanned, stressful, confusing ordeal. Their consumer research platform offers on-demand access to 125m peeps across 58 countries, delivering accurate insight in days—and sometimes, within hours.

The platform is designed for intuitive use and simplicity, but in case you run into any Q’s, real (yep, not AI) research experts are available to help you move forward.

Ready to conduct quick, quality research without stretching out your already busy days? Get started here.

        

STORES

I NY

I ️ NY New York or Nowhere

New York or Nowhere (NYON) co-founder Quincy Moore said he believes many DTC brands “flew too close to the sun” and haven’t lived up to expectations. And since its 2020 debut, Moore’s apparel brand has worked to keep its feet firmly on the ground (in its hometown).

On October 22, NYON will open its first permanent store, in New York City’s SoHo neighborhood, adorned with homages to the city like a mosaic border inspired by the iconic Greek coffee cup and a Statue of Liberty-inspired green-and-copper cash wrap.

The apparel brand was founded by Moore, founder of streetwear label Knowlita, and Liz Eswein, owner of the @newyorkcity Instagram account, which boasts 1.6 million followers.

In 2020, the two combined Moore’s NYON IP, first used on his Knowlita brand, with Eswein’s audience, creating the “perfect storm,” Moore told us. The self-funded brand, which has since partnered with American Express and the New York Knicks, reached seven figures in revenue and was profitable within its first year.

  • “We wanted to be very careful about not making the same mistakes that we were seeing a lot of those [DTC] brands make as customer acquisition costs have increased,” Moore said.

The store comes after NYON’s six-month-long NYC pop-up, which opened late last year and brought in the same revenue during that time, inspiring a permanent NYON store.

“We saw an opportunity here, and we took it, and we’re much more excited about just getting to interact with people IRL, as opposed to purely through a screen,” Moore said.

Pocket money: Eswein, also an angel investor in companies like by CHLOE (since rebranded as Beatnic) and Slate Milk, said she and Moore “really wanted to be autonomous in our operation, and really control the ship” from the brand’s inception. With manufacturing already set up from Knowlita, it was a “turnkey” operation, she said.

Keep reading here.—EC

        

COMMUNITY

Coworking with Kelly Goetsch

Kelly Goetsch Kelly Goetsch

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

In addition to being the chief strategy officer at headless commerce company Commercetools, Kelly Goetsch also co-founded the MACH (Microservices-based, API-first, Cloud-native SaaS, and Headless) Alliance, a group of ~60 tech companies that are working to help businesses transition to MACH architecture tech.

How would you describe your job to someone who doesn’t work in retail? Commercetools is the inventor and leading provider of headless commerce, a technology that separates backend processes from the front-end user (consumer) experience, making it much easier and faster for retailers to build seamless shopping experiences without disrupting the front-end experience. As the Chief strategy officer at Commercetools, I help to shape and communicate our corporate strategies, as well as sense and interpret market shifts.

One thing we can’t guess about your job from your LinkedIn profile? Every day of the week is different for me. One day, I’m on a stage speaking to a crowd, and the next day, I’m working on a spreadsheet for hours. However, the best part of my job is meeting with entrepreneurs who want to grow their businesses, whether through Commercetools or through the MACH Alliance. Their enthusiasm is infectious and motivating.

What’s your favorite project you’ve worked on? This might be an unexpected answer, but my kids are definitely my favorite ongoing project! Guiding them, counseling them through life, and shaping their day-to-day requires work and attention, but I love seeing the output of that hard work every year.

Which emerging retail trend are you most excited about this year, and why? Single-click checkout is becoming increasingly attractive, as seen by Bolt’s media attention for their single-click buttons. This tech has seen some bumps in the road with merchants, but it is in high demand for a reason—consumers don’t want to have to put in their information every time they make a purchase.

What’s your go-to coffee order? I’ll drink just about anything for convenience. Some days, I’ll have a high-end espresso, and other days, I’m getting coffee at a truck stop. If it provides me with a warm cup of caffeine, that’s good enough for me.

Worst piece of advice you’ve received? I was once told, “Don’t write a book. Nobody reads them anymore.” This isn’t true. I’ve written four books on modern commerce topics like GraphQL, cloud, and microservices, and they continue to serve as helpful resources for readers breaking into the commerce space. If you’re passionate about a topic and have something to say about it, don’t be afraid to write about it.

What was your favorite retail product when you were 15, and what’s your favorite retail product now? I was on the curling team in high school, and we almost won the state championship. I really enjoyed the sport and was fascinated by the brooms that are used to accelerate and straighten the rock’s path on the ice. I ended up making my own version at one point. A recent favorite product is a skill saw that I bought to build some firewood racks. I appreciate a well-made tool that can execute a single purpose effortlessly.

        

TOGETHER WITH BAZAARVOICE

Bazaarvoice

Product page perfection. Does your product page need a makeover? You’ve got company: Only 18% of e-commerce sites meet acceptable UX standards. Avoid joining the outdated majority by attending Bazaarvoice’s webinar on product page conversion strategies. Turn your UX into a work of marketing art and science here.

        

SWAPPING SKUS

Today’s top retail reads.

Making returns: Madison Avenue retail is on the rebound, with vacancies down to four-year lows and luxury brands like Hermès and Versace opening new stores. (Bloomberg)

Let’s get digital: Why two fast-casual chains are betting on digital cafés. (QSR Magazine)

Un-decking the halls: Retailers like Kohl’s, Costco, and Express are still working to offload holiday sweaters, New Year’s Eve dresses, and fake Christmas trees from last year’s holiday season. (Reuters)

EVENTS

The SKU is in less than a week!

The SKU is in less than a week!

The SKU: A Retail Brew Summit is kicking off next week in NYC, and this year’s event is shaping up to be one to remember!

Engage in professional networking, interact with presenters, connect with fellow retail leaders, and go home with strategies that you can immediately implement. Plus, peep a knockout roster of speakers from top retail brands like JCPenney, Sam’s Club, and many more. If you’re a retail leader, you won’t want to miss out on the most action-packed retail event of the year. Get ’em now while supplies tickets last!

Register today

WHAT ELSE IS BREWING

  • Amazon warehouse workers in Albany, New York, voted against unionization.
  • Albertsons reported net sales rose 8.4% YoY in Q2, days after announcing its Kroger merger.
  • P&G saw revenue rise while volume declined in its fiscal Q1.
  • Taco Bell introduced EV charging stations at a location near San Francisco.

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Written by Katishi Maake and Erin Cabrey

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