Morning Brew - ☕ Case closed

Locked display cases’ effect on sales.
September 24, 2024

Retail Brew

Yotpo

It’s Tuesday, and the last full-size Kmart store in the mainland US is set to close next month on Long Island. But fans of the iconic brand can still visit a small-format version of the iconic chain in Miami, Florida—or they can buy a ticket to Guam or the US Virgin Islands for the real deal.

In today’s edition:

—Andrew Adam Newman, Vidhi Choudhary

STORES

Worst-case scenario

Merchandise in locked cases at a Target. Ucg/Getty Images

Locked display cases, the theft-prevention measure that makes shopping less grab-and-go and more wait-and-see, aim to prevent shoplifting, but a new survey suggests that particular solution might be worse than the problem.

Upon discovering that an item they want to buy is in a locked case, less than one in three shoppers (32%) get a store employee to unlock the case, according to a reader survey from Consumer World, a consumer advocacy website. For 55% of respondents, it’s a lost sale, because when a product is locked up, they try to buy it elsewhere. The remaining 13% try to find an alternative product in the same store that is not locked up.

The online survey of 1,124 readers was conducted from September 2 through September 9.

Locked stock and barrel: Edgar Dworsky, a consumer advocate who publishes Consumer World, knows how he would have filled out his survey.

“If I encounter a locked case, I’m not going to start looking for a store clerk going up and down every aisle or pressing the button and waiting for someone to come over,” Dworsky told Retail Brew. “But the fact that it was over 50% of people that felt the way I did? I was really surprised.”

Keep reading here.—AAN

   

Presented By Yotpo

Every brand has a hero

Yotpo

E-COMMERCE

Online shopping is getting Pinterest-ing

Pinterest page shoppable Pinterest

Chief Revenue Officer Bill Watkins has been working at Pinterest for over a decade, and he said at least one thing has been true for 10+ years: “The No. 1 bit of user feedback we’ve gotten that entire time is: make shopping easier.”

Watkins was addressing an audience of retail media enthusiasts and ad tech developers on Sept. 17 at the Interactive Advertising Bureau’s Connected Commerce Summit, which took place about a month and a half after Pinterest CEO Bill Ready said that more than half of Pinterest users come with the intent to shop.

Watkins said that over the last two years, a wider product selection and Pinterest’s investments in artificial intelligence have made it easier for users to shop on the platform.

Keep reading here.—VC

   

LABOR

The tipping point

A man holds a tablet with tipping options from 15% to 30%. Sadi Maria/Getty Images

Many complain about tipflation, the recently minted term for more businesses soliciting and expecting tips, a trend accelerated by those increasingly familiar choose-a-tip screens. Now a study by Gusto, a payroll and benefits platform, reveals just how ubiquitous tipping has become.

In July, 6.6% of retail stores in the US requested tips at checkout, compared to 3.8% that did so in July 2019, an increase of 70%.

Keep reading here.—AAN

   

TOGETHER WITH LTK

LTK

Stay ahead of the curve. The future of retail is here, and that means it’s time to reevaluate your strategies for the next wave. If you need a pick-me-up, LTK is hosting a webinar that’ll cover future trends and provide strategies on leveraging AI to make smarter business decisions. Save your spot.

SWAPPING SKUS

Today’s top retail reads.

The end of duty-free shipping: New regulations around the world are jeopardizing one of the pillars of Shein’s business model. (the Wall Street Journal)

Next steps: Foot Locker is staging a comeback after Nike pulled its shoes from the sneaker chain. (CNBC)

Deindustrialization: The shutdown of a Boar’s Head factory is sending shockwaves through a rural Virginia county. (the Wall Street Journal)

Protect these folks: How do you keep your brand loyalists…loyal? Yotpo analyzed over 3 million shoppers’ behavioral and engagement data to find out. See what they discovered.*

*A message from our sponsor.

JOBS

Stop waiting for your dream job to find you. CollabWORK puts you in front of the right opportunities in the online spaces you frequent. Get discovered by top companies and take control of your career path.

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