Morning Brew - ☕ Phoning it in

Retailers prepare for copper-wire landlines to be discontinued.

It’s Monday, the penultimate day of 2024, and we’re still OOO hard at work bringing you the best and brightest of the year. Here’s to a happy, healthy, and prosperous 2025. We’ll see you on the other side.

In today’s edition:

—Jeena Sharma, Alex Vuocolo

OPERATIONS

Hand with a scissor cutting a telephone landline.

Illustration: Anna Kim, Photo: Adobe Stock

We asked our reporters, who play so well with others, to choose a favorite story from 2024 by a Retail Brew colleague.

Most Americans have either already done away with or simply do not remember having a landline…you know, those large telephone things that came with a receiver and a wire of some kind?

For those of us who grew up with a version of it, letting go of the beloved landline hasn’t exactly been a huge sacrifice but for some retailers, that change has come at a cost, as our very own Alex Vuocolo discovered earlier this year.

After speaking with industry experts, Alex, who is known on our team for keeping up with the changes impacting major global retailers, found out that copper-wire landlines have actually been essential in running safety monitoring systems like fire and burglar alarms:

For the majority of Americans who have fully switched over to cellular service at this point, the death of landlines might not seem like a big deal. But for retailers with brick-and-mortar stores, those buried copper wires, known as “plain old telephone system” (POTS) lines, still provide the infrastructure for crucial safety and monitoring systems such as fire and burglary alarms, public safety phones, and access control systems.
Max Silber, VP of mobility and IoT at MetTel, which is in the business of helping retailers replace these old wires, told Retail Brew there are 35 million of these lines left in the US, and 14 million of them are used by commercial businesses such as retailers, many of which rely on them to connect their buildings to essential emergency services.

It seems companies have seriously underestimated the cost and impact of decommissioning outdated lines, as Alex reports, and are in search of a potential “game changer.” If they find one, you can be sure Alex will be right there to cover it.

Read the original story: How retailers are replacing essential landlines—JS

From The Crew

STORES

Red and green dollar signs float above a set of palms. Suit and non suit

Francis Scialabba

In May, at the height of high interest rates, Alex also wrote about how retail giants like Amazon and Walmart were able to sustain capital expenditures in the face of economic headwinds:

Higher rates should make it harder to obtain loans, which should make it harder to fund investments in your business, whether that’s a new store or a new technology. But looking at retailers specifically, this trend is not so clear-cut.
While department stores and apparel companies such as Express and Macy’s are shuttering locations and struggling under excessive debt loads, other major retailers such as Walmart and Aldi are planning ambitious store expansions and technology investments.

Read the whole story here.—AV

SWAPPING SKUS

Some of our favorite retail reads from our sibling Brews.

Ice dream: Did you know Häagen-Dazs has never run a Super Bowl ad? That’s about to change. (Marketing Brew)

Name drop: Why Campbell Soup Company became just The Campbell’s Company. (Morning Brew)

Up to code: The humble barcode has now been around for half a century. (Tech Brew)

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