E-COMM

You Knew This Recap Was Coming

For the first time in Black Friday history, “line counter” was the easiest job of the day. Results from last weekend’s shopping holiday tilted in an extremely online direction. 

From bricks to clicks

Digital Black Friday sales grew 21.6% YoY to $9 billion, according to Adobe Analytics data shared with Retail Brew. That made Friday the second-highest online sales day in U.S. history, only surpassed by Cyber Monday 2019. 

• More records could be shattered by the time this sentence ends. Adobe Analytics expects Cyber Monday 2020 will become the highest-grossing U.S. online sales day of all time. 

A behind-the-scenes winner: Shopify, home to 1+ million merchants, reported that Black Friday sales increased 75% YoY to $2.4 billion. And in a swerve from overall retail trends, apparel and accessories were the top-selling categories.

An obvious loser: Malls. Firms that track our steps better than Fitbit estimated in-store traffic declined between 48% (RetailNext) and 52% (Sensormatic Solutions) on Black Friday. We predicted as much.

• Crowds noticeably thinned at retail landmarks including Macy’s NYC flagship.  
• Some exceptions: GameStop, where shoppers lined up for PS5 consoles, and Bath & Body Works, where shoppers awaited hand sani restocks. 

Best behaviors 

Retailers spread their online promotions throughout the fall to accommodate crowded shipping routes and health concerns. But that didn’t stop brands from sending shoppers some ~friendly reminders~ to hit "Purchase" on Friday.

While the average Black Friday discount remained consistent YoY at 26% off, Salesforce shared with Retail Brew that...

• SMS discount notifications increased 156% YoY and push notifications jumped 142%. 
• Email alerts increased 13%.

Did they work? Yes, but some subject lines were more compelling than others. Mobile sales increased 25.3% YoY to $3.6 billion of spending on Black Friday, or 40% of total digital spend, per Adobe Analytics.

Zoom out: Total holiday season spending estimates have varied, and it’s still unclear if digital spending bumps can substitute for more profitable in-store sales. Still, retailers should start prepping now for Cyber Weekend 2021. 

APPAREL

Where Sweater Weather Hasn’t Helped

Holiday sales aren’t enough to let all troubled apparel retailers off the hanger. Here’s the latest on 2020’s virtual bankruptcy parade. 

Heading out: Ascena Retail Group will sell its core brands—including Ann Taylor, Loft, and Lou & Grey—out of bankruptcy to private equity firm Sycamore Partners for $540 million, pending court approval. 

• Ascena filed for bankruptcy in July, hurt by a mixture of ongoing troubles (uninspiring apparel mixes) and 2020 surprises (temporary store closures). 
• Sycamore has committed to keeping a “substantial portion” of Ascena’s stores and workers, but it’s unclear exactly who stays and who goes under new management. 

Heading in: Arcadia Group, home of Topshop and Miss Selfridge, plans to file for administration as soon as today. Once the paperwork is signed, Arcadia will be the most notable U.K. retail insolvency this year. 

Like The Crown’s writers’ room, Arcadia’s known for dancing close to the line. Last year, it avoided administration by cutting 1,000 jobs and shuttering 50 stores. Now, 13,000 jobs and 500 stores hang in jeopardy while the company considers “a number of contingency options.” 

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• Every customer interaction driven from a shared customer profile.  
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Basically: better results, less work, and fewer vendors to manage.

Listrak gives you an integrated platform plus a strategic partnership with retail marketing experts, which will help your brand stand out like never before.

Check out Listrak here.

WORKFORCE

Amazon Checks and Balances

If Amazon was busy during the spring cleaning supply surge, it’s operating at warp speed with “Best Gifts Under $50” lists added to the mix. So Amazon announced a new round of bonuses for its warehouse employees. 

• Amazon will distribute $500+ million in bonuses among its frontline workers in December: $300 bonuses for full-time workers and $150 for part-time workers.
• Around 85% of Amazon’s 810,000 U.S. workers hold frontline roles in warehouses and operations, per the NYT.

About the timing…Amazon’s revenues have hit record highs during the pandemic, but its Glassdoor score could tank among fulfillment workers. Its $2/hour raise for frontline workers ended in May. And like other large retailers, it hasn’t indicated hourly hazard pay will return, drawing criticism from labor watchdogs. 

• Stronger backlash from workers arrived this month when Amazon offered $3,000 bonuses to some new employees while giving others $10 turkey vouchers. 

Not everyone’s satisfied with the new incentives. Amazon workers and demonstrators across 15 countries demanded higher wages (among other benefits) during protests on Black Friday.

Zoom out: As of October, Amazon’s ranks have grown by 427,300 employees in 2020. Its global workforce now tops 1.2 million people.

WHAT ELSE IS BREWING

• Under Armour launched Curry Brand, its new collection helmed by NBA star Stephen Curry.
• LVMH is reshuffling its digital operations.
• Facebook is reportedly preparing to purchase customer service chatbot firm Kustomer.
• HSBC could shutter its U.S. retail banking business.
• Best Buy will close all its stores in Mexico.

SPONSORED BY SPLITIT

Welcome to Cyber Mobile Monday. The pandemic has resulted in a major shift in consumer habits, including how shoppers pay for their purchases using mobile devices. Splitit has found six fascinating trends in mobile payments, and they’re sharing them with you (it’s the season of giving). Find out why Splitit thinks these trends are here to stay. 

HOT TOPIC

At the mall, it’s where I was forbidden to spend my allowance. In Retail Brew, it’s where I invite readers to weigh in on a trending retail topic. 

Worcester, MA, is best known for its cluster of private colleges and polarizing pronunciation. “Harbinger of retail real estate trends” could soon join the list. 

• Last week, the owners of Worcester’s Greendale Mall, a 309,000 sq. ft. property, shared plans to tear down the shops and build an e-comm distribution center. 
• We’ve heard of malls converting some space to online fulfillment. But tearing down a mall entirely for e-comm is fairly new.

Your turn: Will more shopping centers fully convert into fulfillment centers? Cast your vote here. 

SWAPPING SKUS

Speaking of outdated retail properties... 

• Every vacation canceled by Covid-19 is a hit to airport retailers. A dampened holiday travel season has made their sales runway even shorter. (Fast Company)
• “If there was no pandemic, I would be afraid we’d be getting too much traffic in American Dream,” Don Ghermezian, co-CEO of the New Jersey megamall, told the NYT. But there is a pandemic, and the property’s struggling to adjust. (NYT) 

ICYMI

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

• How DTC Brands Approached Customer Service on Black Friday
• When Gamers Can’t Find the Latest Console, They Flood eBay
• Dick’s Sporting Goods, CVS, and J.Crew Appoint Women for Leadership Roles