POLICY

Mask effect

Two months ago, retailers gladly lifted their mask mandates once the CDC updated its guidance for vaccinated customers. But now that the agency has once again recommended that everyone wear a mask indoors, retailers face a tougher decision. 

What we know: Mask sales are back up; they rose 24% for the week ending last Tuesday, as the Delta variant spreads. 

What we (kind of) don’t know: where most retailers stand on mask mandates. 

• Walmart and Target updated their guidelines, requiring employees in high-risk counties to wear face coverings, but only recommending masks for vaccinated customers.
• Apple reinstated its mask policy for both employees and shoppers at most locations.
• Albertsons, the second largest grocer in the US, hasn’t yet made its decision, but a review is well underway. 

Walmart and Target's mask stance is likely a bellwether for the broader retail industry, Neil Saunders, managing director at GlobalData Retail, told Retail Brew. “They're almost like competitive trendsetters in a way,” he said.

It’s complicated 

The industry recognizes retailers are in a tight spot, given the struggles around mask enforcement at the height of the pandemic. 

The response thus far: The National Retail Federation said it’s “unfortunate” mask recommendations have returned “when the surest known way to reduce the threat of the virus is widespread vaccination.”  

• The Retail Industry Leaders Association struck a similar tone, pleading with customers to “respect employees and their fellow customers” who continue to wear masks. 
• The United Food & Commercial Workers labor union, meanwhile, believes the CDC’s guidance doesn’t do enough to protect workers and that masks should be mandatory. 

“These are guidelines that the CDC is putting out, but the retailers are in the position of actually having to take a stand and implement that policy,” Greg Portell, lead partner at Kearney, told us. “The retailers are being asked to operate like a government and set a policy.”

One thing to watch: whether retailers will mandate vaccines for workers. Walmart, for one, is reportedly telling its corporate staff and managers that they have to be vaccinated by October, per a memo seen by CNBC.—KM

E-COMM

Plugging in

Yes, mall traffic has largely returned to pre-pandemic levels. But major shopping centers might need to do more in a new e-comm era. 

Placewise, an IT service firm, is piloting a marketplace platform that curates inventory at shopping centers. A mall in Norway is giving it a test run, while a shopping center in Wisconsin will join in the fall. 

• The tech integrates retailers’ stock (well, the ones that opt in) into a one-stop shop, so customers can browse across stores. 
• Home delivery or pickup? It’s the shopper’s choice. Same goes for returns, which are handled through the mall or the retailer. 

“It's really important, more than ever, for the shopping center to have a relationship with the shoppers,” John Dee, president of Placewise Americas, told Retail Brew. “That really becomes an asset that they can deploy to the benefit of themselves and other retailers.”

The big picture: Roughly a quarter of US malls could shutter in the next three to five years, according to Coresight Research data. To survive post-pandemic, malls face a long to-do list—including embracing tech and creating a multipurpose environment, per a July 2020 Deloitte report.—KM

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DELIVERY

Puffed up

Gopuff has come a long way from late-night Ben & Jerry’s deliveries on college campuses. The startup raised another $1 billion, and is now valued at $15 billion, TechCrunch reported on Friday.

The “instant” delivery company will use the funds to expand its 24-hour service across North America, the UK, and Europe, and develop the tech connecting customers, drivers, and suppliers. 

• The company currently has 450 locations, including 285 dark stores, as well as 185+ retailers, thanks to its acquisition of BevMo last year. 

The cash infusion is critical for Gopuff at a time when competition in the delivery space is heating up. 

• Instacart is building warehouses to widen its reach. 
• Uber Eats and DoorDash are expanding their services to grocery and convenience stores. 
• Estonian rideshare startup Bolt just raised $713 million ahead of its push into grocery delivery.  

Bottom line: The pandemic made delivery integral to the shopping experience. Gopuff, as TechCrunch notes, is meeting the demand with “Gopuff kitchens,” which prepare and deliver food, and has acquired transport tech startup rideOS.—KM 

WHAT ELSE IS BREWING…

• Square will acquire Afterpay, the Australian buy now, pay later company, for $29 billion. 
• Foot Locker, meanwhile, is spending $1.1 billion to buy WSS and Atmos, two smaller shoe retailers. 
• Global Brands Group’s US division, which owns labels including Aquatalia, filed for Chapter 11 bankruptcy.
• Bacon could vanish from California restaurants due to new animal welfare rules.

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SWAPPING SKUS

Today’s top retail reads. 

Neighborhood watch: How Amazon’s new HQ2 is changing Crystal City. (Washington Post)

Real talk: “Anti-aging” is out, skin positivity is in. Beauty brands are adapting their messaging to embrace being picture-imperfect. (Vogue Business)

Boxed in: A visual guide to how school lunches have transformed over the years—but not as much as you might think. (Vox) 

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.

Square’s $29 billion acquisition of Afterpay is, as one analyst told Reuters, a “proof of concept” for buy now, pay later. The industry has taken off and major players have been busy. 

• Klarna has seen so much success that it’s now moving into social commerce with its acquisition of e-comm startup Hero. 
• Apple is looking to get in on the BNPL fervor with its own installment payment program. 

Yea or nay: Do you believe buy now, pay later services will become the norm? Cast your vote here. 

Circling back: Last week, we asked if you believe brands that released Olympics-themed merch will enjoy a major bump in sales from the Games. An overwhelming majority (80%) said “Nope,” but 12.6% are all in. 

ICYMI

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

• Lazy fashion has made its way to our ears
• Inflation hits e-comm prices
• Wegmans will open its first Manhattan location