Morning Brew - ☕ Reversal of porchin’

UPS’s DeliveryDefense redirects packages likely to be stolen.
July 31, 2023

Retail Brew

Klaviyo

It’s Monday, and no matter how you slice it, it’s National Avocado Day. So, lift your coffee cups for an avocado toast: Any fruit that’s often mistaken for a vegetable can walk the walk, but only you, dear avocado, can guac the guac.

In today’s edition:

—Andrew Adam Newman, Katishi Maake, Courtney Vinopal

E-COMMERCE

Porch bearer

A shadow of a hooded figure near packages outside a residence's front door. Wildpixel/Getty Images

It’s an unhappy ending that’s all too familiar to online shoppers. They diligently track a package and perk up when they see it’s been delivered to their porch or lobby, only to arrive home later to find—oh, the humanity—it’s gone.

But porch piracy is no picnic for retailers, either, who face the choice of replacing the item or possibly losing the customer.

While UPS was in the throes of a possible strike, which was averted Tuesday with a tentative contract, its shipping insurance division, InsureShield, launched what it describes as a “predictive analytics solution” called DeliveryDefense. (UPS apparently is not a fan of putting spaces BetweenWords.)

Using historic loss information, AI, and machine learning algorithms, the tool determines a “delivery confidence score.” If the score is low, senders can opt to deliver it somewhere other than the address, like a nearby UPS Store, for pickup.

“By proactively identifying and addressing potential shipping issues, DeliveryDefense data ensures a smooth customer journey,” Mark Robinson, president of UPS Capital Insurance Agency, Inc., said in a statement.

Ship happens: As e-commerce has exploded, so has package theft:

  • Nearly one in four (23%) of Americans had at least one package stolen in the three months leading up to March 2022, according to an annual national package-theft report from Security.org.
  • The majority of Americans (54%) have had at least one package stolen at some point, the report found.
  • The median value of stolen packages is $50.

Keep reading here.—AAN

     

TOGETHER WITH KLAVIYO

You’re going, right?

Klaviyo

Summer is the season of ~ events ~ and you don’t want to miss this one. Marketers, creators, and founders will log on from far and wide for Klaviyo’s OWN IT virtual summit.

This 3-day e-commerce extravaganza is bringing together some of the most talented names in the industry. With a powerhouse lineup of speakers, you’ll hear stories on topics like:

  • creating brand superfans
  • retaining customers after influencers get them in the door
  • figuring out the right acquisition channels for your brand

And as prep for the holidays and EOY buzz is underway, e-commerce experts are dealing with some hefty questions. What strategies work best to leverage owned marketing channels ahead of Black Friday and Cyber Monday? How can profitability be maintained for the long haul?

Register for OWN IT and get these answers + more. Registration is free (yep, free), so secure your spot.

STORES

New shoes

Kanye West and Adidas Illustration: Francis Scialabba, Photo: Taylor Hill/Getty Images

We’re already (almost) in August, which means summer is winding down. And that means the Q2 earnings season is upon us. We’ll get to that later in the week, but here’s a heads up on retail happenings to start you off.

In new drops: On Wednesday, Adidas will shed more Yeezy inventory as part of a phased release that started in May. The sportswear giant severed ties with Ye (formerly Kanye West) last October after he made numerous antisemitic remarks, so Adidas is again making donations to groups including the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change.

  • There’s a lot of demand for the unsold shoes. The Financial Times reported last week that Adidas sold 4 million pairs of Yeezy shoes worth $565 million in May.

In artificial intelligence: AI is taking over retail, so NRF is tackling some of the most pressing issues during a webinar today, including the evolving “legal and regulatory landscape” as well as intellectual property and privacy concerns.

In openings: Goodwill is expanding its reach down South with a new location in Decatur, Alabama, in a former OfficeMax store. The grand opening will take place on Thursday, with a soft opening on Tuesday.

Keep reading here.—KM

     

LABOR

No kidding around

A woman sits at a desk next to a young girl playing with legos. Dragonimages/Getty Images

“Chobani is the latest company to add childcare to its suite of benefits to better support working parents. The yogurt maker, which has manufacturing facilities in South Edmeston, New York, and Twin Falls, Idaho, announced on June 21 it will partner with WeeCare, a childcare network focused on affordable options,” writes HR Brew’s Courtney Vinopal:

About two-thirds of Chobani’s employees are hourly workers, and childcare access in the towns where the company has plants can be challenging.

Keep reading here on HR Brew.

     

SWAPPING SKUS

Today’s top retail reads.

Yellow bust: The trucking company Yellow announced Friday that it is ceasing operations, putting 30,000 employees out of work—and potentially rippling across US supply chains. (the New York Times)

Teenage wastedland? As more states lower the age requirements for serving alcohol in restaurants, some voice concern—who could have possibly seen this coming?—about underage drinking. (Marketplace)

Let’s party: Tupperware’s long and storied history all the way through its becoming a meme stock. (Insider)

Strategy sesh: In retail, it’s planning season year round. Learn to integrate strategy and create actionable plans that surpass your goals. Strategic Planning kicks off Aug. 14 and will help you plan effectively. Register now!

Rub virtual elbows: The best, brightest minds in the e-commerce biz are gathering at the OWN IT summit, presented by Klaviyo. Spend 3 days learning and collecting actionable insights—for free.*

*This is sponsored advertising content.

HOT TOPIC

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

Last week we told you about a debate among executives at companies that design and launch resale sites for brands. One school of thought is that when a brand launches a resale website, it should look good, but not as good as the brand’s primary website, so that shopping for new items is a more elevated experience. The other school of thought is that there should be parity among all ways consumers shop on a brand’s website, whether they’re shopping for new or secondhand items.

You tell us: How should a brand’s resale site look compared to its site for new products? Cast your vote here.

Circling back: There seems to be no end of the Barbie collabs, and last time, we asked whether you were likely to be purchasing Barbie merch. Most of you said no Ken do, with 56.2% saying you would not be purchasing any Barbie merch, and 31.2% saying you weren’t actively seeking it out but might buy an item or two when you come across it. Just 10.9% said you were actively seeking out Barbie merch and hoped to buy multiple items. Finally, 1.6% of you said you didn’t know or weren’t sure—presumably because you wanted to check with your financial advisor first.

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Written by Andrew Adam Newman, Katishi Maake, and Courtney Vinopal

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