Morning Brew - ☕ Gen AI can feel it coming

Generative AI’s use in retail.
February 28, 2024

Retail Brew

Hey hey. As consumers shift their shopping behavior to adjust to ongoing inflation, there’s at least one thing they’re not cutting back on: Uncrustables. JM Smucker Co. said yesterday the frozen sandwiches saw their second highest month of dollar consumption ever in January. We all know about the lipstick index, but should we start considering a…PB&J index?

In today’s edition:

—Alex Vuocolo, Andrew Adam Newman, Erin Cabrey

OPERATIONS

Next Gen(AI)

Two shopping bags next to a smiling AI robot wearing headphones and a web browser displaying shoes Amelia Kinsinger

When it comes to artificial intelligence, it’s hard sometimes to separate hype from reality. While there are plenty of industry leaders who believe the tech is going to be a game changer, there are others who urge caution, like Amazon Web Services CEO Adam Selipsky, who recently warned an audience of tech workers that the hype could lead to a new dotcom bubble.

It helps that the conversation isn’t strictly speculative anymore. A number of companies are rolling out AI-powered tech applications right now—and that’s no less true for retailers. The industry has been quick to adapt generative AI in particular, which is the use of algorithms to create content ranging from a customer service interaction to a product description.

To help bring some of this buzz down to earth, Retail Brew put together this rundown of the ways major retailers are putting generative AI, or GenAI as it’s known, into practice in real time.

Keep reading here.—AV

     

FROM THE CREW

The financial podcast you’ve been looking for

The Crew

You’re crushing it at work, but can you say the same for your finances? This weekly podcast from Katie Gatti Tassin breaks down topics relevant to millennial and Gen Z money, like the rent vs. buy equation, the perfect save rate, and the most rewarding luxuries worth splurging on. (And yes, she covers how to invest, set up a 401(k), and retire early, too.)

See why this illuminating podcast has 7m+ downloads. Tune in now.

MARKETING

Parallel bars

Dove's two day pop-up bar in New York. Dove

What we have here is a case of parallel bars. To promote a new line of bar soap, Dove, the Unilever brand, recently hosted a two-day pop-up bar in New York City.

The new line, Dove Plant Milk Cleansing Bars, already sounds less like soap than beverages, with varieties including Coconut Milk & Sugar Lychee, Oat Milk & Berry Brulee, and Turmeric Milk & Lemon Drop.

Dove is calling the line its “first premium bar range,” and is pricing it accordingly with an MSRP of $5.99 for a 5-ounce bar, or $1.20 per ounce. A two-pack of the Dove original bar totaling 7.5 ounces, by contrast, is currently $3.99 at Target, or 53 cents per ounce.

The pop-up bar was technically more of a takeover of another bar, Dante, the Greenwich Village landmark which opened in 1915. For two days beginning February 22, a sign on the bar’s front window declared it The Dove Deluxe Bar.

Keep reading here.—AAN

     

COMMUNITY

Coworking with Danielle Buckley

Danielle Buckley Google headshot Danielle Buckley

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

Danielle Buckley is director of product, consumer shopping at Google.

How would you describe your job to someone who doesn’t work in retail? I help shoppers find what they’re looking for on Google Search. My team is responsible for the features that show up on Google whenever you do a shopping search—whether you’re looking for a dress for your holiday party, upgraded pedals for your bike, or a blender for your smoothies. We tap into the “Shopping Graph,” our ML-powered dataset of the world’s shopping information, to surface the right articles, products, brands, and retailers, along with insights and tools for better decision-making.

One thing we can’t guess about your job from your LinkedIn profile? Work takes up so much of our time and energy that it’s always been really important to me to help create a fun and supportive environment. Outside my day job as a product leader, I enjoy spending my time with folks who are earlier in their career helping them think through their challenges. I’m also the co-chair of the Women PM steering group, where I get the opportunity to help create a sense of community and nurture the development of women product managers at Google.

What’s your favorite project you’ve worked on? I loved working on Google’s AI-based virtual try-on tool for apparel. The main thing I look for in any new technology is: What real, hard problems can it solve for people?

Keep reading here.—EC

     

SWAPPING SKUS

Today’s top retail reads.

Making the big lux: Department stores like Dillard’s, Macy’s, and Saks Fifth Avenue are working to grow their luxury assortment to attract sales from a more resilient group of luxury consumers along with additional foot traffic from tourists and other consumers. (Modern Retail)

Kick in the pants: Under the leadership of new CEO Michelle Gass, Levi’s is aiming to expand its business beyond its trademark jeans. (the New York Times)

World market: A look at grocery stores’ pricing strategies across the globe. (Grocery Dive)

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