Morning Brew - ☕ GOAT of confidence

Athleta’s national TV ad featuring Simone Biles.
August 01, 2024

Retail Brew

Bloomreach

Hey there, it’s Thursday. Heads-up if you’ve got a Gen Z child perpetually glued to their phone. A new study found that over 55% of Gen Z shoppers have purchased items online while browsing social media over the past six months alone. So the next time you’re shocked by a credit card bill, at least you’ll know why. You’re welcome.

In today’s edition:

—Alex Vuocolo, Alyssa Meyers, Jeena Sharma

E-COMMERCE

Speed demon

Amazon package Nathan Stirk/Getty Images

Amazon Prime delivery hit a new milestone this year: As of July 30, more than 5 billion items have arrived on the same or next day from when they were ordered, which is up 30% year over year. And the majority of these orders (more than 60%) didn’t come from Amazon’s own stock, but from independent sellers who used its fulfillment services.

The milestone isn’t the first time the e-commerce giant has touted its need for speed. In his annual letter to shareholders earlier this year, CEO Andy Jassy noted that the company continues to break Prime Delivery records. In 2023, he said, the company delivered 7+ billion items on the same day or overnight. He also said “regionalization” was behind the acceleration, as Amazon expanded its same-day facilities and “re-architected” its logistics network to bring warehouses closer to customers.

The result of these efforts was a reduction in cost to serve that allowed the company to expand its assortment and bring down prices.

Working smarter, not harder: With the new announcement, Amazon again emphasized the importance of regionalization and the expansion of its same-day delivery network, but it also called out new tech investments, including “leveraging advanced machine learning algorithms to predict product demand and improve our inventory placement.”

Keep reading here.—AV

   

PRESENTED BY BLOOMREACH

The cutting edge

Bloomreach

We’re all at different points in our digital transformation journey, but with AI’s rapid rise, you can’t risk falling behind. Get up to speed (and gain an edge over the competition) at The Edge Summit, presented by Bloomreach, Google, and NVIDIA.

This year’s Edge Summit is bigger and better than ever. Conferences are expanding to New York City and London, with keynotes + panels on AI from leaders at Google, NVIDIA, and more.

Join your peers for discussions on the potential of AI, how orgs are incorporating it into their strategies, and what the future holds.

Busy schedule? No problem. The keynotes will be livestreamed and available on demand after the event concludes for all digital registrants.

Save your spot today.

MARKETING

Yes she can

Gymnast Simone Biles in Athleta's Power of She Olympics campaign Athleta

It’s a hot girl summer for Athleta.

Around the time of the last Summer Olympics in 2021, the Gap-owned women’s activewear brand made news when it signed a deal with Simone Biles, who severed ties with Nike in favor of Athleta. For this year’s Paris games, the brand is going big with Biles again with its first-ever national linear TV ad and other marketing activations revolving around its “Power of She” platform designed to support women and girls in athletics.

“We’re not doing this because it’s trendy,” CMO Ilona Aman told Marketing Brew.

Keep reading here on Marketing Brew.—AM

   

STORES

Another one bites the dust

Selfridges store image Selfridges

There’s a new trend in luxury fashion: executives exiting their high-level positions. The latest is Andrew Keith, CEO of upscale UK department store Selfridges, who will leave his post this fall to “pursue new ventures.”

No word yet on what these ventures might be or who will replace Keith, but for the time being, André Maeder, CEO of parent company Selfridges Group, will be subbing in.

Keep reading here.—JS

   

SWAPPING SKUS

Today’s top retail reads.

Copycat: Nike is suing a prominent creator for trademark infringement, which could signal the retailer is cracking down on designers for trademark-related breaches. (the Wall Street Journal)

Well played: What do you get when you mix politics, patriotism, and fashion with the Olympics? An opportunity to sell products. (Vogue Business)

Come back: Why Boar’s Head has recalled over 7 million pounds of meat. (the New York Times)

JOBS

Forget generic job searches. CollabWORK leverages the power of community to connect you with relevant opportunities in Slack channels, Discord servers, and newsletters like Retail Brew. Land your dream job through the power of your network with CollabWORK.

NUMBERS GAME

The numbers you need to know.

Ever wonder what exactly people are so busy looking at while scrolling for hours on their phones? Well, there’s a pretty good chance it’s Amazon. Not according to us, but the latest mobile consumer usage data from intelligence firm GWS Magnify, which found Amazon’s monthly active users to be steady at ~139 million. Per GWS, this indicates Amazon is currently the largest online retailer, outdoing the likes of Shein and Temu.

  • This does not, however, mean that Amazon can relax. The threat from low-cost “challenger brands” like Shein is pretty real—it currently has 32 million monthly active users in the US, up from ~28 million in January, or 18% growth.
  • For relatively new US entrant Temu, growth seems to plateaued to a certain extent, as users were up just 5% since earlier this year. But that doesn’t mean the company isn’t doing well—user figures were over 78.5 million on a monthly basis.

Besides their growing user numbers, Shein and Temu also seem to outperform Amazon when it comes to engagement.

  • The average Temu user spent ~24 minutes on its app every day, compared to Shein at 12 minutes and Amazon at 11 minutes.

“The gamification of shopping is something that Temu in particular has mastered with great reward which sees customers coming back and opening the app many more times a day than Amazon,” Paul Carter, CEO at GWS Magnify, said. “But Amazon’s robust and wide audience means it is, at least for now, still the top of the pile in US online retail.”

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