Morning Brew - ☕ AI like your style

Michael Kors’s personalized AI styling assistant.
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June 28, 2024

Retail Brew

Zoro

It’s Friday, and there’s news for those of you who just couldn’t swallow the fact that Joey Chestnut won’t be part of next week’s Fourth of July Coney Island hot dog eating contest. Chestnut will still compete that day but at the Fort Bliss Army base in El Paso, Texas, where he’ll be matched against the combined total of hot dogs consumed in five minutes by four soldiers. No word on whether the Army will change its slogan to “Eat All You Can Eat.”

In today’s edition:

—Jeena Sharma, Alex Vuocolo, Molly Liebergall

E-COMMERCE

Muse your fighter

A chat window with shopping bags in the front. Anna Kim

Imagine browsing your favorite retailer’s website looking through a massive selection of products to find the perfect outfit for your friend’s wedding and the right shoes to go with it. It can be confusing and sometimes intimidating, to say the least.

Well, Shopping Muse—a next-generation retail assistant from Dynamic Yield, a Mastercard company—may make things a tad easier…at least if you’ll be shopping at Michael Kors, which has become the first retailer to adopt the tech.

“Retailers need new ways to reach shoppers that have a lot of options and often little patience, and consumers need to get what they’re looking for quickly and effectively,” Ori Bauer, CEO of Dynamic Yield, told Retail Brew via email. “Using generative AI and our deep personalization capabilities, we created a solution that meets both of those challenges.”

With Shopping Muse, consumers can log on to the retailer’s website and punch in questions or commands like “What do I wear to the beach?” or “I want to look great on a date,” in the styling assistant pop-up, which will then generate a series of apparel options with accessories to match.

Keep reading here.—JS

   

PRESENTED BY ZORO

Say to safety hazards

Zoro

There are a lot of things you need to make sure your business runs smoothly. Here’s a friendly reminder about something that’s very important: safety.

As National Safety Month at Zoro winds down, you can still avoid safety hazards in your workplace and any place. Check out their selection of electrical supplies and test instruments. Zoro is here to help you:

  • Prevent safety hazards with the proper equipment.
  • Ensure your electricity is up to date + installed safely.
  • Get all the safety supplies you need ASAP (fast shipping, we see you).

Zoro knows safety is your *top* priority, and they want to help you keep your employees and customers safe every single time they visit your business—this month and beyond.

Stock up on safety supplies.

STORES

Rollin’, rollin’, rollin’

Rollback price tag Robyn Beck/Getty Images

Rollbacks are rising at Walmart, and vendors are footing the bill, CFO John David Rainey said during a fireside chat with Robby Ohmes, managing director of Bank of America Global Research at the NYSE 2024 London Investor Conference.

“Generally speaking, rollbacks for us are primarily vendor-funded,” Rainey said. “We’ll fund some of those ourselves, but our rollback count is up 45% year over year right now. So we’re certainly trying to provide that value to our customers.”

A rollback is Walmart’s in-house term for temporary price reductions on select items, and it’s been a centerpiece of the retail giant’s pricing strategy for decades.

Keep reading here.—AV

   

RETAIL

Down for the discount

Amazon box on conveyer belt Nathan Stirk/Getty Images

The website where you can buy almost anything for cheap will soon sell a miscellany of goods for even cheaper. Amazon is planning to open an ultra-inexpensive, direct-from-China storefront that’ll compete with increasingly popular bargain sites Temu and Shein, The Information reported this week.

If you can’t beat ’em, join ’em. In Amazon’s strongest-armed response to Temu and Shein yet—one that resembles its competitors’ tactics—the e-commerce giant’s forthcoming bargain section will sell China-made goods that are largely under $20, ranging from clothes to weights to gua sha facial tools (but nothing edible or liquid).

Keep reading here on Morning Brew.—ML

   

TOGETHER WITH KLAVIYO

Klaviyo

SMSupercharge your growth. More customers than ever are buying from SMS messages. In 2023, 86% made two or more purchases from a branded text—that’s up from 55% in 2022. Klaviyo interviewed over 8k consumers around the world to get their thoughts on text messages from brands. Here’s what they learned.

SWAPPING SKUS

Today’s top retail reads.

Smallgreens: Walgreens announced it would close more stores beyond the 625 it already has shuttered after Q3 earnings fell short of analysts’ expectations. (the New York Times)

Can’t do it: Why Nike isn’t performing as strongly as upstart athletic brands like Hoka and Lululemon. (Marketplace)

Yes we cans: How Arizona Iced Tea has kept its cans priced at 99 cents since it began in 1992. (CNBC)

Safety first: Stock up on all the safety supplies you need during National Safety Month at Zoro. Prevent safety hazards, ensure your electricity is up to date, and load up on electrical supplies + test instruments here.*

*A message from our sponsor.

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