EXPERIENCE

No Time Like the Presents

Just when retailers think their holiday season is sorted, the chaotic overlords of retail consulting release another consumer study. 

The latest? Gifting sessions will be cut short this holiday season. By Deloitte’s estimate, shoppers will visit a record low of 5.2 stores on average. The .2 is doubling back to Bath & Body Works for one last lotion sample. 

Let’s strategize. With the first round of holideals come and gone, retailers are exploring more ambitious tactics than price matching. 

First class service

Nordstrom’s throwing glitter on the omnichannel experiences I’ve gotten to know as well as my fiancé’s preferred meeting jargon these last six months. A sample: 

• “Gifting experts” will tackle shoppers’ hardest-to-please family members through shopping consultations online (via chat box or video call) or in-store (self-explanatory).
• Curbside pickup hours will be extended—and can come with complimentary gift wrap.

The reason: To turn convenient services into moments of connection. And Nordstrom’s enhancing the services its most loyal shoppers are already using. “Order pickup is approaching 15% of Nordstrom.com sales,” a Nordstrom spokesperson told me. Of its current styling appointments, 25% are virtual.  

Products on products 

Turning a bag handoff into an Instagrammable moment is an art. Selecting gifts to stock in the first place is a science—and one a nontraditional holiday store wants to crack. 

Lowe’s will carry a mix of big ticket gifts alongside its home improvement essentials this winter. The vibe is “afternoon at your coolest middle school friend’s house,” with products ranging from air hockey tables to trampolines to exercise bikes. Most items will be carried online; some will also appear in stores.

It could work. Nonessential stores are still fighting for foot traffic, but essential outlets like Lowe’s are well-positioned to gain gifting share by stocking products outside their norm. Plus, consumers are redistributing their fun funds toward items instead of experiences.

My takeaway: Lowe’s is chasing increased cart sizes and new customers, while Nordstrom’s building relationships with existing fans. Either way, they recognize that winning the holidays comes from more than coupons. 

DATA

Be on Your Best Behavior

Kids with a new babysitter and retailers with any presence anywhere should follow the same advice: behave. 

Growing numbers of U.S. adults take notes when brands do (and don’t) act ethically, according to a new Morning Consult survey shared with Retail Brew. 56% of respondents said they pay close attention to brands’ ethical or political stances. 

Behavior watch: Shoppers are slightly more likely to abandon a brand over its price tags than over findings from a NYT exposé. 54% of respondents said they’ll overlook a company’s problems if the price is right, though 46% of respondents said they rarely, if ever, continue shopping from “irresponsible brands.”

• The share of respondents who quit brands cold turkey grew to 38% from 26% YoY. 

Francis Scialabba

Either way...“Retailers need to align with causes and social priorities that feel authentic, not opportunistic,” Victoria Sakal, managing director of brand intelligence at Morning Consult, told Retail Brew. 

Where to start? Sakal suggests focusing on causes like climate change and safe, fair elections. 

• It’s in the data: “Across consumer groups, these are also the topics Americans most want companies to take action on—rare given how generational attitudes and political opinions tend to differ these days,” Sakal said.
• Some retailers are already working to build credibility in both areas, from launching employee voting campaigns to experimenting with sustainable materials.

SPONSORED BY LISTRAK

When Closing Is Good

Lately, when you hear the word “closing” in a retail context, it's bad news. But today closing is good—especially when it’s about closing the revenue gap.

Have questions about how to do that? We figured, so we’ve teamed up with the masters of digital marketing automation at Listrak to discuss just that.

Trusted by 1,000+ leading brands, Listrak has helped retailers of all shapes and sizes see the power of integrating email, SMS, and behavioral triggers on one platform.

So if you’re looking to close your revenue gap, or wondering how a furniture brand like Jonathan Adler saw 109% revenue growth in just a year, this is an article you must read. 

Check out our article with Listrak here.

BRANDS

This Week’s Category Launch Vibe:

Several extremely online brands released new products this week, but only one broke my Twitter mentions. Here’s your survey of the latest (and hygge-est) of launches. 

In apparel…

• Allbirds unveiled an apparel capsule, its first foray into apparel since last year’s sock launch. Its tees 1) include fabric sourced from discarded crab shells and 2) were made for layering under Patabronia vests.
• After hearing 81% of customers had altered their wardrobes to incorporate cozier clothes since March, Madewell graduated from co-designing athleisure to launching a line of its own. 

In puzzles…No Plans, Inc., maker of “brands for people who want to slow down,” released a jigsaw line under its Whiled banner. 

• Good timing: “Games and entertainment” is a top-searched product category this year per Digital Commerce 360, and puzzles lead the pack.  

In apparel AND puzzles...Casper’s new Rest Stop merch segment sells them both, along with mugs and baby onesies. Since mattress sales have bounced in recent months, Casper may be trying to capture extra purchases from new customers.

WHAT ELSE IS BREWING

• ThredUP confidentially filed for an IPO, Bloomberg reports.
• Amazon is paying shoppers to share data about their spending habits.
• Kohl’s said athleticwear will eventually make up 30% of its business.
• Walmart scooped up another DTC brand: Quip.
• ThirdLove reduced its entry-level price point.
• Cleaning goods haven’t lost their sales momentum. 

SPONSORED BY CRITEO OMNICHANNEL SOLUTIONS

Here comes the modern shopper—clickin’ on influencer posts, goin’ in-store for cheaper prices, readin’ reviews on their phone. The modern shopper is complex; the modern shopper is livin’ across many channels; the modern shopper remains unreached by most marketing efforts. Criteo, however, gets the modern omnichannel shopper. Their solution helps retailers unify customer data and engages shoppers through every step of their journey, wherever they choose to browse and buy. Check out Criteo here.

COMMUNITY

Welcome to Coworking, our segment highlighting the best part of Retail Brew: you, the readers. Want to see your name here? Fill out our quick nomination form, or share it with a friend who reads Retail Brew. 

Today we’re sharing a desk with Era Ray, executive director of strategic initiatives at Estée Lauder. 

How would you describe your job on a date? I work with our brands, regions, and functions on strategic projects related to winning in digital and transforming in this omnichannel world. It's a truly rewarding job, getting to work with some amazing innovators and creative thinkers.

One thing we can’t guess about your job from your LinkedIn: Estée Lauder has 25+ brands; in my role, I get the very exciting opportunity to work across the brand portfolio, with our big iconic brands along with our smaller disruptor brands.

Favorite project you’ve worked on so far: Helping our Latin America team think through the best strategy for their brands, by country.

Name a brand you’re obsessed with (that isn’t your employer): Briogeo—I love their commitment to diversity (on their team and for consumers) and to clean beauty.

SWAPPING SKUS

The theme generator’s taking some overdue PTO. While it takes a breather, enjoy this potpourri of top retail reads.

• Before Quibi tried to earn my download with its new tell-all fashion doc, there was this expansive feature on the world of American Apparel and Dov Charney’s acolytes. (Refinery29)
• Denim sales have slumped during the pandemic. But if brands think antimicrobial fabrics are the key to a jeans revival, they may be mistaken. (The Goods)
• I knew Annie’s Mac & Cheese was my favorite CPG brand for a reason. (Fast Company)

ICYMI

Catch up on the Retail Brew stories you may have missed.

• What’s Next for Crocs After Its Pandemic Boom?
• Best Buy and Target Drove the Highest Conversions on Prime Day
• For an Anticipated Relaunch, Shop Latinx Put Community First