CORPORATE

Retail Industry Reacts to Capitol Hill Riot

After a mob of President Trump’s supporters broke into the U.S. Capitol building Wednesday in an attempt to halt the certification of the 2020 presidential election results, retail trade groups, brands, and commerce platforms across the industry felt compelled to disavow the siege. 

From trade groups: Leading organizations including the Business Roundtable, the National Retail Federation, and the American Apparel & Footwear Association condemned the mob’s violence while demanding action from the federal government. 

• "Our retailers, the millions of associates they employ, and the communities they serve across the country want and need our elected officials to focus on the priorities that ensure faith in our government through stability," NRF CEO Matthew Shay said. 

On social media: A small cohort of brands—Ben & Jerry’s and Under Armour among them—released individual statements. Consumer responses were split: Some users praised brands for their posts condemning the rioters, while others questioned brands’ involvement. 

A step further 

Shopify shut down two online shops managed by the Trump Organization and Trump campaign on Thursday, the WSJ reports. A Shopify representative said its terms of use prohibit stores associated with people or groups that "threaten or condone violence to further a cause."

• Several other stores with similar items are still operating on Shopify’s platform of 1+ million sellers, per the NYT. 

Zoom out: Other e-commerce platforms aren’t taking a uniform approach to moderating their listings.

• eBay told Vox it would not take down “politically affiliated merchandise,” but it will remove “any merchandise glorifying the violence incited on Capitol Hill.”
• Business Insider reports that Amazon, which currently lists similar Trump merchandise, hasn’t pulled products or sellers from its marketplace this week.

REAL ESTATE

12,200 Closing Times

We knew a record-setting year for retail bankruptcies would leave many a mall promenade vacant. But just how many stores shuttered for good in 2020? 

Nationwide…12,200 stores closed in 2020, up from 10,000 in 2019, according to commercial real estate firm CoStar Group. To visualize, that’s 159 million sq. ft. of store space. 

• Around one-third of closures came from mall-centric companies, including department stores and apparel brands. 

In NYC…flagship openings from Ugg and Krispy Kreme were exceptions to the rule. Total chain stores in the city declined 13.3% YoY, per Center for an Urban Future data. 

Looking ahead...it’s too early to tell whether 2021 store closures will equal, exceed, or decline from last year’s total. Predictions depend on the pandemic’s course, retail experts say, and the financial fallout from retailers’ 2020 adjustments.

So far, the year’s first closures are holdovers from last year’s turnaround plans. Bed Bath & Beyond and Macy’s confirmed plans this week to close dozens of locations.

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E-COMM

2020's No. 1 Shopping App Was...

The year in online shopping behavior is best summarized by 1) the receipts in our inboxes and 2) the apps on our homescreens. 

About the latter...Apptopia, a mobile app data firm, released its rankings of 2020’s most downloaded shopping apps in the U.S. yesterday. 

• Retail rivals Amazon and Walmart took the top two spots: The everything store notched 41 million downloads, while the other everything store grabbed 34 million downloads. 
• Wayfair, Shein, and Nike were the only category-specific brands to make the list.

Francis Scialabba

Most of the companies listed above have name recognition in their corner. But their app strategies also met pandemic shoppers’ most pressing needs, such as...

• Convenience. Shoppers wanted Walmart and Target’s flexible omnichannel fulfillment, plus instant updates for pure online orders via Shop. 
• Price consciousness. Recession times = soaring adoption of ultra-affordable products across Wish and Shein. 
• Interactive experiences. An everything-from-home mentality benefitted retailers like Nike, which produce service content alongside their popular skus.

Going global...Amazon also held on to the top spot, with 169 million total downloads worldwide. But the No. 2 spot went to Shopee, an online marketplace based in Southeast Asia. 

WHAT ELSE IS BREWING

• UPS expects to break a returns processing record this week. 
• Amazon has terminated its Prime Pantry delivery service.
• L Brands reported same-store sales rose 5% over the 2020 holiday season.
• Wayfair raised its minimum wage to $15/hour. 
• LVMH's first act after completing its Tiffany acquisition: reshuffling the jeweler’s leadership.

SWAPPING SKUS

Today’s reads don’t conform to a single theme; the roundup below is more of a link charcuterie board. Take your pick(s) and enjoy.

1. A closer look at Partake Foods’s $4.8 million funding round. (Forbes)
2. Can’t decide on a new store location? Consult U-Haul’s migration data. (Retail Leader) 
3. Covid-19 vaccines are strengthening ties between retailers and healthcare... (Adweek) 
4. ...and they’re repurposing vacant Sears stores. (WSJ)
5. The story of Supreme’s logo, and how it came to be worth a lot. (Marker)
6. Pop stars and pandemic merch are the unlikely product mash-ups surging online. (NYT)
7. Q&A with Pop Up Grocer founder Emily Schildt: Come for the 2021 food trend predictions, stay for a look inside her shopping cart. (Sidekick)
8. Instead of selling customers on new clothes, some apparel brands are paying shoppers to repeat outfits they already own. (Fast Company)

ICYMI

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

• How the Latest Round of Stimulus Checks Could Impact Retailers
• With New Menu Items, McDonald’s and Shake Shack Intensify Chicken Sandwich War
• Two Enduring Consumer Behaviors Retailers Should Know