TECH

Powering down

From pay-by-palm to virtual fitting rooms, retailers are investing $$$ in innovations that streamline the shopping experience. But are consumers even using the shiny new tech? 

To find out, Retail Brew teamed up with Harris Poll to run an exclusive, nationally representative survey of 1,993 US adults. 

Quick and clean

Self-checkout, which has been around for years, feels conventional at this point. So it’s not a huge surprise that 71% of those surveyed said they’ve used it while shopping, and 70% said it makes the shopping experience easier. 

But what about frictionless shopping—like an Amazon Go store where you walk in...and just walk right out, snacks in hand? That’s been hailed as the store of the future, but just 26% of our respondents said they’ve shopped somewhere with fully automated checkout.

• That breaks down along age lines: Nearly half (48%) of millennials have, versus only 6% of boomers. 

Looking at other futuristic tech, there’s an even longer road to adoption:

• 25% of respondents have used QR codes when shopping 
• 19% have used smart vending machines
• 10% have used a virtual fitting room
• Only 8% have used biometric pay (like fingerprint or palm scanning)

Keep it simple: 30% of respondents said they want more technology integrated in their shopping experience, while a majority (57%) either want less or for it to stay the same. 

Back to reality 

As the country reopens, shoppers are ready for all things IRL. 

• 64% of respondents said they do most of their shopping in person, compared to 43% in March, when we asked the same question. 
• Younger consumers are more likely to shop online; 50% of our millennial respondents and 45% of Gen Zers do so, as opposed to 37% of Gen X and 22% of boomers. 

The takeaway: Retailers are rushing to innovate, but consumers are slow to adopt new habits. Even a pandemic-driven novelty like curbside pickup isn’t as popular: Only 18% of respondents said they’ve used it.—KM 

E-COMM

In their prime

Summer’s biggest deal is here: Prime Day 2021 starts today. And retailers big and small should have a lot to be excited about. 

Primed to spend: In its seventh year, Prime Day and the ancillary sales events surrounding it now rival the holiday shopping season, which means $$$ for retailers. 

• In 2020, US shoppers shelled out an average of $5.2 billion each day of Prime Day, which surpassed the $5.1 billion they spent on Thanksgiving Day, according to the Adobe Digital Economy Index analyzing Prime Day’s impact.
• The two-day event is predicted to approach $12 billion in sales this year, which would be up 19% from 2020—but a slowdown from the 43% growth it saw last year, per eMarketer. 

The news is even better for larger retailers with IRL stores, Adobe notes: Companies with $1+ billion in online revenue experienced a 10% higher lift than those making under $10 million.

• “If they have brick and mortar stores, they can take advantage of new shopping models like buy online, pick up in-store—things we’ve got accustomed to during the pandemic,” Jason Woosley, VP of commerce product and platform at Adobe Experience Business, told Retail Brew. 

Follow along: Much of the increase in e-comm spend is centered on other sales events slated this week for non-Prime members. 

• Target’s “Deal Days” started yesterday and run through tomorrow, while Walmart’s uniquely named “Deals for Days” concludes on Wednesday. 
• Kohl’s, an Amazon partner, is getting in on the action with a sales event today and tomorrow that offers discounts in-store and online. 

Unique to Prime Day is that Amazon doesn’t have to offer the deep discounts seen on Black Friday or Cyber Monday, since retailers and consumers are simply “looking for something to rally around,” Woosley said. 

+1: The most popular categories during Prime Day 2020 included books, electronics, and appliances; not so much for housekeeping supplies, apparel, and jewelry, per Adobe.—KM

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WHAT ELSE IS BREWING…

• Sweetgreen confidentially filed for an IPO. 
• Wingstop opened a virtual restaurant that sells chicken thighs. 
• McDonald’s plans to hire 20,000 workers as it expands in the UK and Ireland. 
• A German union is calling for Amazon workers to strike on Prime Day. 
• PGA Tour Superstore and golf equipment makers want to buy overseas factories to meet demand. 

SWAPPING SKUS

Today’s top retail reads. 

Shipwrecked: It’s just not everyday goods that are in shorter supply and getting more expensive. Yachts and charter boats are in high demand and selling at a premium. (NYT)

Commitment check: Here’s what the 20 largest apparel companies have done in the past year to bolster diversity and inclusion. (WWD) 

New server: Gamer app Discord is becoming a hub where sneaker and streetwear fans congregate to discuss their favorite brands and the latest drops. (Business of Fashion)

SPONSORED BY ADROLL

You don’t need to be a yogi to appreciate this story. Yoga Democracy started using AdRoll to grow its business—and the results were impressive. They achieved 2x growth in conversions and decreased their CPA by 50%. Get the details and learn how AdRoll’s Shopify integration can help take your e-commerce business to the next level.

HOT TOPIC

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

E-comm reigned during the pandemic, but retailers are still grinding out ways to reach customers in the “new normal.” 

• Glossier reneged on plans to ditch brick and mortar; after it shut down locations last summer, it’ll open three new stores starting in August. 
• Express, J.Crew, and Urban Outfitters are among a handful of retailers now offering products from third-party sellers on their websites. 

Our question: What strategy is best for retailers to capture new customers as we emerge from the pandemic? Cast your vote here. 

Last time...We asked, amid all the Prime Day promotions, which retailer’s sales event will bring in the most revenue? Running away with 86.3% of the vote was Amazon, followed by Target, with 7.8%, and Walmart, scoring only 5.9%. 

EVENTS

We’re a few days away from June’s The Checkout event with Warby Parker’s cofounder and co-CEO, Dave Gilboa. If you haven’t completed your (free) registration for next week’s event on Tuesday, June 29 at 1:30pm ET, maybe you should? Especially if: 

1. You want to learn how the pandemic shifted the way frontline workers operate.
2. You want to know what’s in store for Warby Parker’s new brick-and-mortar shops.

RSVP right here to guarantee your spot.

FROM THE CREW

Anytime's a Good Time for Brunch

World Central Kitchen, a nonprofit founded by chef José Andrés, partnered with thousands of local restaurants across the US during the pandemic to distribute 36+ million meals to 400+ cities in need. But there's so much more work to be done, at home and abroad. 

For the next two weeks, Morning Brew is hosting a fundraiser with World Central Kitchen. We'll be throwing $10,000 into the pot, and if you join us and donate any amount, you'll get access to our exclusive cookbook, Brunch with the Brew, featuring recipes from our favorite food and business leaders. 

We're talking whole wheat maple blueberry scones from Flour Bakery's Joanne Chang. Tahini cinnamon rolls from Food Network star Molly Yeh. Spicy Greek-inspired lamb Bolognese with poached eggs and aged feta from Cava cofounder Dimitri Moshovitis. 

Get those recipes and so, so many more by making a donation today. 

ICYMI

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

• How Hero Cosmetics prepared for its first Prime Day
• As diversity comes into focus, a snapshot of the retail workforce
• The employee influencer program checklist