Oliver helps retailers to change and transform their business and operating models. He's the host of the 'Retail Transformation Show' podcast and author of 'Driving Retail Transformation: How to Navigate Disruption & Change'.
Retail Transformation Briefing – 17th July
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Today marks the second and final day of Amazon's Prime Day promotion. Sales are forecast to hit a record $14 billion over the two days of the promotion, an increase of over 10% from last year's event. So it's set to break new records and, of course, continue Amazon's massive growth trajectory over the long term. However, as (and if) the final numbers come out, it will be interesting to see if these forecasts are accurate and use them as a bellwether or indicator for how consumer confidence (and therefore spending behaviour) is looking in the buildup towards peak later on this year. This year, we should see fewer sales increases due to price inflation - so reported sales increases are more indicative of genuine increases in the volumes. Whilst many consumers are still struggling financially with increased costs of living, we can tentatively hope for long-term growth in consumer spending and, therefore, a positive signal to the retail industry. Retail transformation news headlines💡 Decathlon launched a new subsidiary business to act as an investment arm and drive growth and innovation. Decathlon Pulse will explore new ideas and opportunities and will also support businesses that align with their values and goals. As a standalone business, they will be more agile and faster to make decisions. There are three goals. Firstly, to build and scale ideas to complement the core business. Secondly, to invest in highly innovative companies that will disrupt the sports ecosystem. And finally, to acquire forward thinking businesses and trailblazing business models. 🧠 Mango has released a campaign for their new collection which has been entirely created by AI. To create the images, the limited edition Sunset Dream products were first photographed in real life. Then, a gen AI model was trained to learn how the garments fitted models or how the fabric flowed. Then the AI went to work, creating a selection of photos, before a final human round of editing and tweaks were made to generate the same high-quality pictures that a traditional shoot would create. 📱 Amazon is deploying Rufus, its gen AI shopping tool, to all US consumers after starting trials earlier in 2024. Rufus allows customers to ask everyday questions however they'd like to. Examples of real questions asked during the trial include: Is this mascara a clean beauty product? What are the best lawn games for kids' birthday parties? And, of course, the classic "Where is my order?" question was also popular as a convenient and fast way of finding out the information that customers are looking for. 📦 Walmart is focused on automating its distribution centres and revealed major plans to expand its automation. They have released details of how their automated facilities manage to process through over double the volume of regular distribution centres. Automation has been installed to stow and retrieve stock and plan pallet builds to minimise damage and maximise store productivity. To deploy this functionality further, Walmart is building five new DCs, expanding four existing DCs and retrofitting the technology into other sites. 📺 In Canada, Best Buy will open 167 small-format convenience-style stores in partnership with Bell Canada. The stores will feature various elements, including Geek Squad tech support and omnichannel collections. Bell will operate the stores and manage the day-to-day business. 👙 Ann Summers have announced the launch of a brand new online House of Underwear, Knickerbox.com. This is a lingerie-only website and introduces a new in-house brand, KBX, which aims at elevating everyday underwear. The site also features 14 other brands to cover a range of customer preferences. The initiative was kick started and championed by the late Jacqueline Gold CBE. 🛹 Vans are launching a second iteration of their Roblox world to celebrate the launch of their new shoe. The online place, Vans World 2, creates the location for the first shoe to launch virtually before a physical launch. Skateboarding remains a core focus for Vans World 2. With new tricks and moves available, players will be able to unlock new skate locations like Paris and Tokyo, earn points to allow users to customise their Roblox avatar and also earn a limited-edition avatar emoticon. Vans were one of the first major brands to experiment with Roblox, launching in 2021 as the hype for the metaverse really started to take off. But their world remains popular and reached 100 million visits last year. ☀️ Amazon achieved its renewable energy goals seven years early. The 2019 goal was to ensure all electricity was 100% renewable by 2030 and last year, they reached that goal. Served by over 240 solar and wind farms as well as nearly 300 onsite solar arrays on their distribution centres. New on the Retail Transformation Show podcast: Exploring retail around the world - #303The world of retail is ever-changing. But how does the retail industry change across the world. In this episode, I'm joined by fellow podcaster and retail expert, Paula Macaggi. Paula brings a wealth of experience of retail connections, events, and experiences from 5 continents. This experience highlights the similarities, differences and opportunities for retailers across the planet. Listen to episode 303 of the Retail Transformation Show and discover:
Plus, check out these recent episodes: #302: The democratisation of retail #301: Looking inside ‘Driving Retail Transformation’ #300: Reflections and evolutions If you've not already taken a listen to The Retail Show, please do check out the latest episode. Find it on your usual podcast app - just search for "The Retail Show" and click to subscribe. 🎧 Spotify 🎧 Amazon Music 🎧 Or listen online at TheRetailShow.uk. And if you enjoy what you hear, please consider helping me share the podcast with colleagues and contacts, or by writing a review. I would be hugely appreciative of your support. Keep transforming better, Oliver |
Oliver Banks of OB&Co
Oliver helps retailers to change and transform their business and operating models. He's the host of the 'Retail Transformation Show' podcast and author of 'Driving Retail Transformation: How to Navigate Disruption & Change'.
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