The Push for Better Working Conditions

The decision to unionize comes after prolonged efforts by the Towson employees to negotiate better working conditions with Apple. According to IAM CORE, the union attempted to address concerns about unpredictable scheduling and inadequate wages through discussions with Apple’s management. Still, these efforts did not lead to the desired changes. “This vote today is the first step in demonstrating our solidarity and sends a clear message to Apple,” said members of the IAM CORE Negotiating Committee. “As discussions with Apple management continue, we remain committed to securing tangible improvements that benefit all employees.”

Unpredictable scheduling has been a significant pain point for Apple retail workers, who often face inconsistent start and end times that disrupt their personal lives and sleep patterns. One Reddit user, reflecting on similar experiences in retail, commented, “The unpredictable schedule was the 2nd worst part of working retail for me. At least keep the start and end times of shifts consistent so we don’t mess up our sleep.”

Apple’s Response and the Potential Impact

Apple has expressed its commitment to engaging with the union in good faith. “At Apple, we work hard to provide an excellent experience for our retail team members and empower them to deliver exceptional service for our customers,” an Apple spokeswoman told Fast Company. “We deeply value our team members and we’re proud to provide them with industry-leading compensation and exceptional benefits.”

Despite these assurances, the move to unionize could have broader implications for Apple. The company’s retail operations are crucial in its business model, serving as both sales hubs and customer service centers. Any disruption, such as a potential strike, could affect Apple’s ability to maintain its high customer service standards and impact its overall business performance.

A Broader Labor Movement?

The Towson Apple Store’s decision to unionize is part of a larger trend of labor organization efforts across various industries in the United States. Retail workers, in particular, have been at the forefront of this movement, seeking to address long-standing issues related to wages, working conditions, and job security. The successful unionization of Apple’s Towson store could inspire similar efforts at other Apple retail locations and beyond.

The recent union vote in Towson contrasts with the situation at another Apple store in Short Hills, New Jersey, where employees voted against unionizing. Following this defeat, the Communications Workers of America (CWA) filed a complaint with the U.S. National Labor Relations Board, accusing Apple of union-busting tactics. “Instead of leaving the decision up to the workers themselves, the company turned to its usual anti-union playbook to influence the results of the election,” the CWA stated.

A Test for Tim Cook’s Leadership

The unionization effort also spotlights Apple CEO Tim Cook. Cook, who has been at the helm since Steve Jobs’s passing, has steered Apple through significant growth and transformation. How he responds to this unionization effort could set a precedent for how Apple handles labor relations in the future.

Labor experts and market analysts are closely watching Cook’s next moves. “I would be really interested to hear what Tim Cook has to say about this,” commented an analyst on Cheddar. “He’s been a steady leader at Apple, and his response could influence how other companies handle similar situations.”

Looking Forward

As the Towson Apple Store workers prepare for potential strike actions, the broader implications of their unionization remain to be seen. The outcome of this move could reshape labor relations within Apple and potentially influence labor practices across the tech industry.

For now, the workers’ vote to unionize is a significant milestone in Apple’s history and a testament to the growing momentum of nationwide labor organization efforts. As one Reddit commenter succinctly said, “More power to them!”

Surprisingly, retail sales in February significantly outperformed expectations, posting a 1.1% increase compared to the consensus forecast of 0.4%. This robust performance, a doubling from January’s 0.6% rise, suggests that consumer confidence and spending remain resilient despite various economic headwinds. Notably, when excluding autos and gasoline — which saw a dip due to deflation in used car prices and volatile fuel costs — retail sales impressively climbed by 1%.

The control group, a critical component of retail sales that feeds into Gross Domestic Product (GDP) calculations, also saw a 1.1% rise, far surpassing the anticipated 0.4%. This robust data is expected to lead to upward revisions in GDP estimates, reinforcing the narrative that the U.S. economy may be gaining momentum.

Conversely, the New York Federal Reserve’s manufacturing index presented a mixed picture. While the index continued to contract for the fourth consecutive month, there were positive developments under the surface. New orders and employment figures within the sector showed improvement, though they were not strong enough to shift the overall negative trend. The prices paid component, however, rose by five points, indicating ongoing inflationary pressures that could squeeze margins further.

In reaction to the economic data, Treasury yields climbed to new heights, with the 10-year note reaching 4.61%, reflecting growing investor expectations that the Federal Reserve might continue tightening monetary policy to combat inflation. On the other hand, stock futures dipped slightly, suggesting concerns about the potential impact of rising costs on corporate profits.

The market’s response underscores a complex landscape where higher gas prices do not appear to deter consumer spending across other categories. This challenges the conventional wisdom that higher fuel costs automatically lead to reduced discretionary spending.

These economic indicators are crucial for policymakers, particularly as they consider the implications of inflation on the broader economy. The ongoing discussions around the Federal Reserve’s policy path in 2023 indicate that decision-makers are keenly aware of the need to balance fostering economic growth and containing price levels.

Moreover, this latest batch of economic data will likely feed into Congressional discussions about fiscal policies and potential regulatory adjustments. With AI and automation poised to transform various industry sectors further, legislators are under increasing pressure to address the socioeconomic implications of these technologies.

As the U.S. economy navigates through these turbulent times, the resilience of the consumer sector continues to be a bright spot. However, the manufacturing sector’s struggles highlight the challenges that lie ahead. Investors and policymakers must stay nimble, responding to data-driven insights to steer the economy toward a stable and prosperous future.

Throughout the discussion, Chair Khan articulated the FTC’s mandate to protect Americans from monopolistic behaviors, emphasizing the agency’s commitment to enforcing antitrust and consumer protection laws. However, her rhetoric was met with skepticism as critics questioned the agency’s track record and the tangible impact of its enforcement actions.

“One big area of focus for us is understanding the root cause of these problems. Let’s understand who the mafia boss is here rather than just going after the foot soldiers,” Chair Khan asserted during the program.

One of the focal points of criticism was the FTC’s lawsuit against Amazon, which alleges monopolistic practices and anti-competitive behavior. While Chair Khan presented the case as a bold step towards accountability, detractors raised doubts about the agency’s ability to effectively challenge the tech giant.

“We have a lawsuit against Amazon… But when we’re going up against some of these monopolistic companies, they can outmatch us, outgun us sometimes 1 to 10 just if you’re looking at lawyers,” Chair Khan acknowledged, highlighting the agency’s uphill battle.

Furthermore, Chair Khan’s remarks on the pharmaceutical industry drew scrutiny, particularly her assertion that the FTC is actively addressing drug pricing and shortages.

“We’ve seen over the last few years… baby formula, IV bags, Adderall, basic forms. There are all sorts of tricks and monopolistic behavior leading to that,” Chair Khan explained, addressing concerns about the affordability and accessibility of essential medications.

The conversation also touched on artificial intelligence’s growing influence, with Chair Khan advocating for regulatory foresight and vigilance.

“The first thing we need to do is be clear-eyed that there’s no AI exemption from the laws on the books… And so we need to use the policy tools and levers that we have to make sure that these technologies are proceeding on a trajectory that benefits Americans,” Chair Khan asserted, highlighting the importance of proactive regulation in shaping the future of AI.

Moreover, Chair Khan’s leadership style and strategic approach were scrutinized, with some questioning her ability to effectively lead the agency in confronting powerful corporate interests.

Industry analysts noted that while her determination and resilience were acknowledged, critics raised concerns about the FTC’s enforcement capabilities and its capacity to hold corporate behemoths accountable.

In conclusion, Chair Lina Khan’s appearance on the program shed light on the challenges and complexities of antitrust enforcement in the modern era. While her tenure at the FTC has been marked by bold rhetoric and ambitious goals, questions about the agency’s ability to translate words into meaningful action linger. As regulatory scrutiny intensifies and corporate power continues to grow, the efficacy of the FTC’s enforcement efforts remains a subject of debate and contention.

Viewers Love Lina Khan

One of the standout moments of the interview came when Stewart revealed that Apple had attempted to prevent Khan from appearing on his show. Despite facing opposition from one of the world’s most powerful corporations, Khan maintained her composure, demonstrating poise and grace that left viewers in awe. One commenter noted, “Man, the poise on this woman when Jon says they wouldn’t let her on the podcast. She knows exactly why. Love it.”

Khan’s performance also sparked admiration for her leadership qualities, with many expressing a desire to see more public figures like her in positions of power. One commenter pondered, “Why don’t we have presidential candidates like this woman?” while another declared, “As an American, I’d vote for this sort of discourse again and again.”

Throughout the interview, Khan’s communication skills were displayed as she deftly fielded Stewart’s questions with precision and clarity. “This woman’s communication skills are amazing,” remarked one viewer. “She is always answering the exact question asked, no unnecessary rhetoric, transparent vocabulary.”

Moreover, Khan’s expertise and dedication to her work left a lasting impression on viewers. Many expressed gratitude for her willingness to tackle important issues such as monopolization and antitrust enforcement. “We need more people like Lina Khan in our government,” asserted one commenter, while another praised her as “undeniably, outstandingly brilliant.”

Jon Stewart’s role in facilitating the interview also garnered praise, with viewers commending him for providing a platform for essential discussions often overlooked by mainstream media. “Jon Stewart is THE best interviewer in American media today,” declared one commenter. “How do we get this man a bigger platform?! The country is in such desperate need of him.”

In conclusion, Lina Khan’s interview with Jon Stewart powerfully reminded viewers of the importance of intelligence, integrity, and courage in public service. As viewers reflected on the insights shared during the interview, it became clear that Khan’s leadership is inspiring and essential in addressing the complex challenges facing our society today. As one commenter aptly said, “We are lucky to have her at the helm!”

In just over a year, Temu has managed to amass an impressive user base of 51 million monthly active users in the US alone, a feat that took Amazon decades to achieve. How did a relatively unknown brand achieve such staggering growth in such a short span of time? By offering cheap goods shipped directly from China, Temu has tapped into the consumer demand for affordable products, ranging from $20 coats to $9 stainless steel water bottles.

But Temu’s success goes beyond just offering low prices. The retailer has adopted a savvy marketing strategy, saturating social media feeds with ads and creating buzzworthy campaigns that have captured the attention of curious consumers. Its omnipresence in the digital landscape has propelled it to acquire over 161 million monthly app users worldwide, making it a force to be reckoned with in the e-commerce arena.

Temu has spared no expense to fuel its expansion, investing billions in advertising to ensure its brand is visible everywhere. Backed by its parent company, Pinduoduo (PDD), a Chinese e-commerce giant, Temu has the financial muscle to compete with the likes of Amazon and Alibaba on a global scale.

But Temu’s rise has not been without controversy. The company’s business model prioritizes market share over profitability and has raised eyebrows among analysts. With estimated losses of $7 per order in 2023, questions have been raised about the sustainability of its growth trajectory. Moreover, concerns about product safety and quality have also plagued the company, prompting scrutiny from both consumers and government regulators.

Despite these challenges, Temu remains undeterred in its quest to dominate the e-commerce landscape. With its gamified shopping experience and aggressive marketing tactics, the upstart brand has forced industry incumbents to take notice. As it continues to disrupt the status quo, one thing is clear: Temu is here to stay, and its impact on the future of e-commerce will be felt for years to come.

Fashion companies are now integrating AI technologies to improve supply chain operations, customer service, retail security, waste reduction, and so on–a list that only scratches the surface of its capabilities. 

Subscriber-based ecommerces like Stitch Fix are redefining personal styling through AI algorithms that curate custom clothing selections based on individual preferences.

Trendy menswear e-tailers like Differio are optimizing AI-driven solutions to target design and demand forecasting. Differio’s CEO further adds, “Even though AI technology can’t replicate genuine human creativity, it has the potential to steer fashionable men’s clothing online towards a more innovative future, devoid of overproduction and microtrends.”

Even old-school brands like Levis are testing AI-generated models to display more diversity and inclusivity on their product pages.

According to McKinsey consulting firm’s analysis, over the next three to five years, generative AI has the potential to add up to an estimated $275 billion in profits across the fashion, apparel, and luxury sectors. As we welcome generation AI into our wardrobes, let’s explore how today’s fashion e-tailers are integrating various AI-powered solutions into their own business models.

Personalized Shopping

Personalization is in demand more than ever now from custom-designed men’s clothing online to targeted product suggestions. 

In order to cater to this ecommerce trend, fashion companies are tapping into AI-powered technologies to create a more personable experience using customer segmentation. It’s one of the key applications where AI algorithms analyze vast amounts of consumer data to identify specific marketing campaigns and product offerings.

Product and size recommendations are another AI game-changer, which especially helps to reduce return rates. By analyzing a customer’s past purchases and browsing history, AI algorithms can suggest relevant products that match with a shopper’s preferences. It can also gather data on a customer’s body measurements to suggest sizes for virtually any clothing item from chino pants to graphic tees

Virtual Enhancements

There was once a time when real-time chatbots and virtual menswear models sounded like something from a sci-fi film. Thanks to AI systems and virtual reality, these futuristic tech ideas are not only becoming a reality, but also being implemented into today’s trendy clothing sites. 

Chatbots and virtual assistants reduce the need for a large customer service center while also addressing customer concerns by suggesting products and solving real-time inquiries. 

Similar to try-before-you-buy subscription boxes, virtual try-on tools allow customers to virtually “try on” stylish clothing items, which also helps to lower return rates.

Additionally, virtual models created through AI and VR technology can showcase stylish clothing, providing customers with realistic visuals on various skin tones and body types. 

Data-Driven Efficiency 

If you thought fast fashion was fast, AI solutions are only speeding up the market thanks to data-driven efficiency. Instead of spending time and energy on tedious tasks, it allows people in the workforce to reallocate their focus on more pressing issues, saving time and resources. 

With AI-generated content creation, fashion ecommerces can automatically generate product descriptions, social media posts, and marketing materials within seconds. 

Dynamic pricing algorithms are also being used to analyze market trends and customer behavior in real-time. Ultimately, this helps e-tailers act fast to increase profits and stay competitive in the market.

Additionally, AI-based demand forecasting models can predict consumer demand more accurately by analyzing factors such as order history and SKU data, improving overall inventory management and minimizing stock issues.

Fraud Prevention & Cybersecurity

Fashion ecommerces still need to be on guard when it comes to theft and loss prevention, usually caused by identity fraud or a data breach. Fortunately, it’s becoming easier than ever to detect and block suspicious activity.

One way to do this is by implementing AI-powered Web Application Firewalls (WAFs). WAFs are used for advanced protection against online threats and vulnerabilities by learning algorithms that analyze incoming web traffic in real-time. 

By quickly analyzing large volumes of real-time data, AI systems can identify potential threats and unauthorized access attempts, allowing online businesses to mitigate risks in a matter of minutes. 

AI Forecast: What to Expect in Fashion’s Future?

Fast fashion works at lightning speed, but AI might be even speedier in changing the course of fashion’s future. 

There are simply no signs of AI slowing down in the coming decade. According to Statista, AI technology’s market spanned around 200 billion U.S. dollars in 2023 and is anticipated to exceed 1.8 trillion U.S. dollars by the year 2030, signaling remarkable growth. 

With AI’s imminent success, the only downfall is its potential to replace a variety of jobs in the future, such as trendy men’s clothing analysts and customer service representatives. 

With eCommerce growth continuing at an exponential rate, supply chain visibility has become increasingly important for companies looking to remain competitive in today’s digital marketplace. Not only do businesses need to meet customer demands for fast delivery times, but they also need to manage costs, minimize losses, and ensure security. 

Be that as it may, only 65% of companies are able to report full visibility across their supply chains, and 43% of small businesses are not tracking inventory levels at all. With economic uncertainty on the horizon and customer expectations at an all-time high, now is the time to invest in supply chain visibility so you don’t find yourself falling behind while your competition sails away with their loyal customers.

Benefits of Supply Chain Visibility for Ecommerce Businesses

There are a multitude of benefits to be realized through the implementation of supply chain visibility in eCommerce. These include:

Improved customer satisfaction and loyalty

The more visibility you have into your own supply chain, the better equipped you are to anticipate customer needs and deliver products in a timely manner. With improved visibility, eCommerce businesses can increase customer satisfaction by reducing their response times, improving delivery accuracy, and providing customers with real-time updates about the status of their orders. This helps foster greater loyalty from customers, which in turn increases the likelihood of repeat business.

Reduced costs associated with inventory management

“Knowing inventory costs is extremely important because they affect the majority of decisions one makes as a retailer,” explains Abir Syed, co-founder of UpCounting, an eCommerce accounting firm.

Unsurprisingly, inventory management is the single largest expense for eCommerce businesses. For every dollar a US retailer generates through revenue, they have $1.35 tied up in inventory. As such, being able to accurately track and monitor inventory levels is essential for minimizing losses and maximizing efficiency.

By leveraging supply chain visibility technology, businesses can reduce the amount of inventory they need to keep in stock and their associated costs. This can be achieved through better forecasting and planning, more precise order fulfillment processes, and improved inventory accuracy.

Increased efficiency and speed of delivery

Knowing where products are throughout their journey allows businesses to better plan and adjust for delays, ensuring customers get their items as quickly as possible. Supply chain visibility also facilitates increased collaboration between all parties involved in the delivery process, allowing for a transparent and overall more efficient supply chain.

Enhanced flexibility and scalability in supply chains

As the demands of customers and markets shift, businesses need to be able to quickly adjust their supply chains accordingly. With supply chain visibility, businesses can quickly adapt to changing conditions, such as unexpected spikes in demand or supply disruptions. This increased flexibility and scalability of the supply chain is essential for businesses to remain competitive and responsive. This scalability also benefits businesses as they grow and expand into new markets. 

Increased control over returns management 

Returns are an unavoidable part of eCommerce and managing them can be difficult. Supply chain visibility gives businesses the ability to track a returned item as it moves through the supply chain and make adjustments to minimize losses. This includes tracking returned items on their journey back to the supplier, identifying potential issues and quickly resolving any discrepancies.

Challenges of Implementing Supply Chain Visibility

While the benefits of supply chain visibility are clear, there are still some challenges associated with its implementation. These include:

Establishing and maintaining relationships with suppliers

Before any supply chain visibility technology can be deployed, businesses need to build relationships with their suppliers. This requires open communication and collaboration between all parties involved, as well as a certain level of trust.

“When it comes to choosing partners, it’s wise to do some research to ensure the best deal possible while emphasizing transparency and flexibility. This is invaluable during times of frequent supply chain disruption,” explains Roei Yellin, Co-Founder & Chief Revenue Officer of 8fig, a planning and funding platform for eCommerce companies. 

“Sellers shouldn’t be afraid to negotiate for a better deal and they should make sure that communication is open and honest. This is true of suppliers, 3PLs (third-party logistics providers) and any other partners brought in to help manage the supply chain,” concludes Yellin.

Complexity of the supply chain and data formats

Securing buy-in from all parties and managing the data exchange between different organizations is challenging. Not only do various supply chain participants have differing needs and processes, they also use different systems. Unifying these systems and ensuring harmonious data exchange can be difficult.

To overcome this, businesses need to create a single source of truth that all supply chain participants can work from. This means creating common protocols and standards that all parties are comfortable with and can adhere to, and potentially leveraging a third-party solution to manage the data exchange.

Costs associated with technology and infrastructure

The technology and infrastructure required for supply chain visibility can be costly. Businesses need to invest in the right hardware, software, and people to ensure that the system is secure and effective.

Fortunately, there are solutions to this issue. RFID and code-based tracking solutions, in particular, are relatively inexpensive and easy to implement. Companies such as Scurri allow you to easily create a single bar code for all carriers, as well as a reporting dashboard that gives you full control over your operations with actionable insights. 

Cybersecurity concerns

Data is the lifeblood of supply chain visibility and ensuring its security is paramount. However, supply chains are coming under increasing attack from hackers and malicious actors, making them vulnerable to data theft and manipulation.

In fact, 97% of organizations say they have experienced the negative consequences of a supply chain cyber breach within their operations, demonstrating just how prevalent these attacks have become.

As such, businesses need to ensure that they have the appropriate protocols in place to protect their data from cyber-attacks. This includes using secure networks and encryption, as well as regularly auditing system access and usage. Multichannel cyber security solutions, such as VMware, can also be of great help in mitigating cyber risks.

Conclusion

Supply chain visibility is becoming increasingly important in today’s volatile and highly competitive marketplace. However, if businesses are to reap the full benefits of a visible supply chain, they must first overcome the various challenges associated with implementation.

Ultimately, with careful planning, a comprehensive approach to risk management, and the right technology in place, businesses can ensure that their supply chain visibility efforts are successful and that they remain agile and competitive in the long run. 

The setback for some merchants is their failure to find the right mobile app developer when they initially launched. As their brands grow, their mobile stores’ needs become more specific. Retail brands with apps that directly fulfill the experience that shoppers desire are on a solid path to success; this is why finding the right app developer is imperative.

Find the right mobile app developer for brand needs

Third-party developers like Tapcart, the no-code app developer for Shopify, allow merchants to customize their checkout settings to create a frictionless checkout experience while enabling tools to help increase conversions. With the aid of these third-party developers, merchants can implement features like single-page checkouts and pre-filled shipping forms that allow for a quick checkout experience. Conversion features including checkout navigation, which automatically navigates customers to checkout when they add products to their cart, have contributed to Tapcart’s popularity amongst retail giants like Fashion Nova and Pier 1 Imports. 

Reduce the number of form fields

Over 18 percent of shoppers will abandon their cart if the checkout process is too long or complicated. In order to combat this, merchants should reduce the number of form fields so that shoppers have less to fill out. Fewer form fields ensure a frictionless checkout experience that increases conversion rates up to 160 percent. 

On average, merchants include 2 times more form fields than necessary. With these large amounts of forms, it can be tedious for a shopper to complete them for just one or two items. Reducing the typical number of checkout form fields can result in fewer abandoned cart rates, a checkout process that takes just  5 seconds to complete, and ultimately a significant jump in sales.

Accept various payment methods

With the rise of alternative payment methods, shoppers are no longer solely opting for credit and debit cards. In fact, 31 percent of shoppers say that they are more likely to use alternative payment methods (APMs) since the start of the pandemic. Providing APMs, like buy-now-pay-later (BNPL), which can be implemented through companies such as Affirm and Quadpay, allow eCommerce customers the freedom to choose their preferred payment method, ultimately resulting in a more streamlined checkout experience that caters directly to consumers.

Adding various payment methods is a simple way to attract new customers who, on other eCommerce apps, might not be able to use their preferred payment method. As a result, customers will flock to merchants’ mobile apps with the knowledge that they don’t have to change their choice of payment and instead can focus on their excellent shopping experience. 

Allow customers to shop as guests or create accounts

Having a customer account on an eCommerce website can provide prefilled shipping info, order history, and real-time order tracking, making a customer’s shopping experience optimal for quick and simple transactions. However, some customers prefer the guest checkout experience, as it requires less commitment and leads to faster first-time purchases. With a guest checkout feature, a shopper doesn’t have to fill out forms and create an account to purchase on a website, allowing a swift shopping experience without all of the extra steps involved.

Implementing an expedited checkout will increase customer loyalty to eCommerce mobile apps  and further success by decreasing cart abandonment rates. If the conversions aren’t meeting the quota initially intended, effectuating one or more of these tips is a great way to begin boosting numbers and meeting eCommerce goals.
To ensure your eCommerce store is having all of its needs met for maximum success, it is imperative that merchants find the right mobile app builder. Launching a high-converting mobile app can be easy with the right mobile app builder that offers features to ensure the most frictionless checkout experience.

Harley Finkelstein, COO of Shopify, discusses how COVID has dramatically sped up the timeline for commerce moving online and has also moved Shopify closer to its goal of becoming the world’s first retail operating system:

Shopify Evolving Into World’s First Retail Operating System

Most people assume that Shopify is an ecommerce provider. We have more than a million stores on Shopify. If you were to aggregate our stores in the US we’d be the second-largest online retailer in America. Of course, we’re not a retailer but we’re a platform. But we now have these great economies of scale that we’re using to level the playing field for entrepreneurs and small businesses. That being said, what really Shopify is evolving into is the world’s first retail operating system. 

What we’re trying to figure out is what do brands and entrepreneurs and retailers need, not just now but in the future? We think the future of retail is retail everywhere. A brand that’s going to be successful in 5, 10 or 15 years from now needs to sell across any platform and across any channel where they have customers. This idea of enabling Shopify merchants to very easily push their products to the Amazon Marketplace or the eBay marketplace or now the Walmart marketplace, that gives them access to a new set of consumers. The idea is that it all feeds back in one centralized back-office, the retail operating system, which is Shopify. 

Then we’ve gone ahead and asked what else can we do for these merchants? Can we do capital? We’ve now given out about a billion dollars worth of cash advances and loans to small businesses. We’re doing fulfillment and we’re doing shipping. We’re increasing the scope and the relationship that we have with the million stores on Shopify. This is allowing them to become category leaders.

COVID Speeds Up The Ecommerce Revolution

From our view, it seems like the commerce world that would have existed in the year 2030 has really been pulled into the year 2020 (as a result of the COVID crisis). We’ve seen ecommerce as a percent of total retail go from 15 percent to 25 percent in the last three months. That’s the same growth rate that we’ve seen over the last 10 years. What really has emerged here is sort of this tale of two retail worlds. On one side you have these resilient retailers that are doing great, they’re pivoting, and they’re expanding their businesses. On the other side, you have these resistant retailers who have not made it. In many ways, it’s probably the most exciting time for retail in a very long time. 

We talk a lot about these direct to consumer brands that are becoming category leaders. The Allbirds and the Gymsharks who started on Shopify when they were very small and have grown to become the incumbents in their industry. Every 25 seconds a brand new entrepreneur makes his or her (products) for sale on Shopify. We talk a lot about those new startups, those new DTC brands. But actually, what we’re also seeing on Shopify are companies like Lindt Chocolate or Heinz ketchup or Chipotle. They are signing up for Shopify and basically from like five days from contract to launch they are completely changing their businesses. 

This resiliency isn’t simply in the hands of just the smallest of brands. Big companies are also beginning to think a lot more about how to stay resilient in this time. They’re moving well beyond ecommerce or thinking about offline commerce now. They’re thinking about how do they sell across social media? How do they sell across different marketplaces? So no, I don’t think it’s too late (to enter ecommerce) but I do think they have to rethink their strategies.

Vice President, Ryan C. Baker, posted a message on the company’s website:

As previously announced, Zulily, LLC and its parent Zulily Group LLC (collectively, “Zulily”) made the difficult but necessary decision to conduct an orderly wind-down of the business to maximize value for the companies’ creditors. This decision was not easy nor was it entered into lightly. However, given the challenging business environment in which Zulily operated, and the corresponding financial instability, Zulily decided to take immediate and swift action. 

Baker says the company will fill as many order as possible within the next two week. Orders that cannot be fulfilled will be canceled and refunded. Baker says the company has a team in place to answer questions from customers, vendors, and others.

We realize that this news comes with many questions, and we have put a team in place to address customer, vendor, and other interested party inquiries. The Zulily ABC hotline can be reached at 888-202-5829 or (+1) 747-288-6406 outside the U.S., or visit https://omniagentsolutions.com/ZulilyABC for more information and additional support. In addition, customers can send email inquiries to ZulilyCustomersABC@OmniAgnt.com, while vendors and other parties of interest can email ZulilyABCInquiries@omniagnt.com.

Zulily will strive to continue to provide everyone with the best service possible during the holiday season. We appreciate yourpatience as we move through this process as swiftly and efficiently as possible.

According to the FTC, Rite Aid did not have reasonable safeguards in place to protect customers when it deployed facial recognition in its stores. As a result, the agency says the pharmacy potentially harmed and humiliated its customers.

“Rite Aid’s reckless use of facial surveillance systems left its customers facing humiliation and other harms, and its order violations put consumers’ sensitive information at risk,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Today’s groundbreaking order makes clear that the Commission will be vigilant in protecting the public from unfair biometric surveillance and unfair data security practices.” 

As part of the FTC’s action, Rite Aid will be banned from using facial recognition for five years and must implement the necessary safeguards when it does eventually re-dploy the tech.

The proposed order will require Rite Aid to implement comprehensive safeguards to prevent these types of harm to consumers when deploying automated systems that use biometric information to track them or flag them as security risks. It also will require Rite Aid to discontinue using any such technology if it cannot control potential risks to consumers. To settle charges it violated a 2010 Commission data security order by failing to adequately oversee its service providers, Rite Aid will also be required to implement a robust information security program, which must be overseen by the company’s top executives.

The ban will go into effect once it is approved by the court overseeing Rite Aid’s bankruptcy.

According to BleepingComputer, the store chain says 1,977,486 people were impacted as a result of its service provider, Zeroed-In Technologies, being hacked. The Zeroed-In incident occurred August 7 and 8, 2023.

BleepingComputer says the Zeroed-In hackers were able to obtain private information for Dollar Tree and Family Dollar employees.

“While the investigation was able to determine that these systems were accessed, it was not able to confirm all of the specific files that were accessed or taken by the unauthorized actor,” reads a letter sent to those impacted.

“Therefore, Zeroed-In conducted a review of the contents of the systems to determine what information was present at the time of the incident and to whom the information relates.”

According to The Wall Street Journal, the two firms are preparing to raise the fees they charge in October and April. Citing research from CMSPI, the Journal says the new fees could cost merchants an additional $502 million annually.

Needless to say, given the state of the economy and rampant inflation, critics are decrying the decision as poorly timed.

“It’s just a bad combination and bad timing for any of these fee increases to happen,” said Doug Kantor, general counsel of the National Association of Convenience Stores.

One of the biggest issues online shoppers face is finding the products they’re interested in. This can especially be apparent when comparing retail platform search capabilities with the Google Search features customers have become accustomed to.

Google Cloud is now bringing the power of its search to retail clients, with Retail Search, which the company unveiled in a blog.

This fully managed service is easily customizable, enabling organizations to craft shopper-focused search experiences. Our site search solution builds upon decades of Google’s experience and innovation in search indexing, retrieval, and ranking. Retailers can make product discovery even easier for shoppers, while optimizing for their business goals with advanced capabilities

Retail Search gives clients the ability to offer advanced query understanding, meaning customers will have better success finding what they’re looking for even with the broadest of search terms. The service also includes semantic search, which matches product attributes with relevant products.

Customers are already seeing the benefit of Retail Search.

“With limited customer signals and no historical data, descriptive long-tail searches are some of the most challenging queries to understand,” said Neelima Sharma, senior vice president, technology, e-commerce, marketing and merchandising at Lowe’s. “We have been partnering with Google Cloud to give our customers relevant results for long-tail searches and have seen an increase in click-through and search conversion and a drop in our ‘No Results Found’ rate since we launched.”

Google Cloud customers interested in learning more can visit Discovery Solutions for Retail or contact their Google Cloud field sales representative.

According to Reuters, Spain’s antitrust watchdog says the two companies’ anti-competitive agreement unfairly restricted the online marketplace for electronics.

“The two companies restricted without justification the number of sellers of Apple products on the Amazon website in Spain,” Spain’s watchdog, the CNMC, said.

Both companies disagreed with the CNMC’s findings and said they will appeal the decision.

“We reject the suggestion made by CNMC that Amazon benefits from excluding sellers from its market place, as our business model hinges precisely on the success of the companies selling through Amazon,” an Amazon spokesperson told Reuters in a statement.

Meanwhile, Apple told the outlet that its agreement with Amazon was designed to limit counterfeits.

The fine breaks down to 143.6 million euros for Apple and 50.5 million euros for Amazon.

Fake reviews and testimonials have become a plague for many online shoppers, with an entire industry built around artificially boosting products. The sheer number of fake reviews can often overwhelm and suppress genuine ones, preventing users from getting an accurate view of the product they’re buying.

“Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The rule would trigger civil penalties for violators and should help level the playing field for honest companies.”

The agency targets several specific behaviors:

• Selling or Obtaining Fake Consumer Reviews and Testimonials: The proposed rule would prohibit businesses from writing or selling consumer reviews or testimonials by someone who does not exist, who did not have experience with the product or service, or who misrepresented their experiences. It also would prohibit businesses from procuring such reviews or disseminating such testimonials if the businesses knew or should have known that they were fake or false.
• Review Hijacking: Businesses would be prohibited from using or repurposing a consumer review written for one product so that it appears to have been written for a substantially different product. The FTC recently brought its first review hijacking enforcement action.
• Buying Positive or Negative Reviews: Businesses would be prohibited from providing compensation or other incentives conditioned on the writing of consumer reviews expressing a particular sentiment, either positive or negative.
• Insider Reviews and Consumer Testimonials: The proposed rule would prohibit a company’s officers and managers from writing reviews or testimonials of its products or services, without clearly disclosing their relationships. It also would prohibit businesses from disseminating testimonials by insiders without clear disclosures of their relationships, and it would prohibit certain solicitations by officers or managers of reviews from company employees or their relatives, depending on whether the businesses knew or should have known of these relationships.
• Company Controlled Review Websites: Businesses would be prohibited from creating or controlling a website that claims to provide independent opinions about a category of products or services that includes its own products or services.
• Illegal Review Suppression: Businesses would be prohibited from using unjustified legal threats, other intimidation, or false accusations to prevent or remove a negative consumer review. The proposed rule also would bar a business from misrepresenting that the reviews on its website represent all reviews submitted when negative reviews have been suppressed.
• Selling Fake Social Media Indicators: Businesses would be prohibited from selling false indicators of social media influence, like fake followers or views. The proposed rule also would bar anyone from buying such indicators to misrepresent their importance for a commercial purpose.

The agency says the NPRM will be posted to the Federal Register soon; concerned parties will have 60 days to comment.

The Wall Street Journal interviewed a number of customers who recount being asked for tips when using self-checkout machines and not a service person in sight. One such store resorting to such behavior is the OTG gift shop in New Jersey’s Newark Liberty International Airport.

“Just the prompt in general is a bit of emotional blackmail,” Garrett Bemiller told the outlet.

“I thought maybe I was going crazy,” says Warren Williamson.

A spokesman for the gift shop says the tips are split among store personnel working that shift.

“It is always our goal to create valuable experiences for our guests while taking care of our crew members, and the option to leave a tip if you have received assistance allows us to do both,” he told WSJ.

In addition to the feeling of being nickel-and-dimed, some critics worry that some tips may not make it to employees since tip protection laws may not cover machines.

As WSJ points out, businesses no doubt see tips as an easy way to increase revenue with little to no risk. Meanwhile, many of the companies involved in the payment process may benefit since they receive a percentage of transactions.

Unfortunately, rampant tipping is increasingly permeating more walks of life, with even some Apple Store employees trying to negotiate tipping into their contracts. As we pointed out in our coverage of that situation, tipping is an important and necessary part of the process in jobs where employees are not paid a standalone fair wage. When they are, however, tipping becomes an unnecessary and unwanted burden on the consumer.

Burt Flickinger, Managing Director of SRG, a consumer industry business consulting firm, discussed how Walmart is winning the retail wars in an interview on Fox Business:

Walmart is the Roman Empire of Retail

This earnings report just reinforces its winning. Amazon is going sideways. This is a reenactment of the Punic Wars, Rome versus Carthage. Walmart is the Roman empire of retail. Like Hannibal and the Carthaginians, Amazon is starting to go the wrong way. Big win for Walmart today and they will accelerate that in the next two to seven years.

What’s doubly impressive, we talk to a lot of vendors and shoppers around the world, what the vendors are saying is Walmart is reinvesting all the PPA (price and promotional allowances) in lower prices. Lower prices normally mean lower margins and lower revenue. But in this case, the shopper is shifting to Walmart.

Walmart strategically saw all the land-based businesses like Payless and all the retailers from toys to sporting goods going out of business. They had great sales on land and not so good online. Walmart is winning both ways. Amazon, with all the trouble they’re having with Whole Foods, can’t capitalize. Walmart is running the table.

This Says it All for US Retail

This says it all for US retail. The well capitalized highly capable retailers are winning and if it’s a one man show, like Bezos running the show, you could be Alexander the Great, you could be Hannibal out of Carthage, but one general isn’t going to win a war. Recent (lower) retail sales numbers were a combination of a couple things. One is Jerome Powell scared the market, especially high to mid-end, didn’t spend as much. Also, consumers were a little bit scared toward the end of the year. Walmart, off price, low price, did very well, but full price full service struggled and that’s why the numbers were bad.

Walmart comp sales increased 4.2 percent, just like Steve Jobs and Apple with their great campaign Think Different with Muhammad Ali, Walmart is thinking different with Doug McMillon. It’s evolved from a company of family management to professional management. Walmart had 40 percent growth online.

Walmart Ads Are Really Connecting

Before, Walmart looked at advertising as an expense. But as Jerry Della Femina said, most of the Super Bowl ads were pretty pathetic. Walmart was one that stood out because it advertised Walmart online and Walmart in-store. The Walmart ads are really connecting with consumers, a United Nations of consumers.

They’re reaching everybody around the world with better prices and better service. Doug McMillon has invested in inventory and has invested in store staffing, first to raise wages with some push from the UFCW. They are hitting on all cylinders. The biggest problem now is they can’t handle all of the volume they are seeing on the weekends.

Apple announced plans to expand its line of Apple Stores to India roughly seven years ago. Regulatory hurdles stalled the company’s plans, but they have finally come to fruition with the opening of an Apple Store in Mumbai.

Apple CEO Tim Cook was on hand for the store’s opening, as was Deirdre O’Brien, Apple’s senior vice president of Retail.

“At Apple, our customers are at the center of everything we do, and our teams are excited to celebrate this wonderful moment with them as we open our first retail store in India,” said O’Brien. “Apple BKC is a reflection of Mumbai’s vibrant culture and brings together the best of Apple in a beautiful, welcoming space for connection and community.”

Apple BKC is located in the “Bandra Kurla Complex financial, arts, and entertainment district,” and Apple touts it as “one of the company’s most sustainable stores yet.”

The new store employs more than 100 Apple team members. Reflecting India’s diversity, the team members collectively speak more than 20 languages.

Apple has, so far, been the only major tech company to avoid mass layoffs. The company did not hire as aggressively as many of its rivals during the pandemic and has not had to over-correct as much.

While the company is still not engaging in mass layoffs, Bloomberg is reporting that the company is laying off a small number of employees in its corporate retail teams. According to the outlet’s sources, Apple is describing this as standard streamlining efforts, not part of the wider tech layoffs.

Apple told impacted employees they could apply for similar jobs within the company. Those that do not get other jobs within Apple will receive up to four months severance pay.

One of the biggest issues online shoppers face is finding the products they’re interested in. This can especially be apparent when comparing retail platform search capabilities with the Google Search features customers have become accustomed to.

Google Cloud is now bringing the power of its search to retail clients, with Retail Search, which the company unveiled in a blog.

This fully managed service is easily customizable, enabling organizations to craft shopper-focused search experiences. Our site search solution builds upon decades of Google’s experience and innovation in search indexing, retrieval, and ranking. Retailers can make product discovery even easier for shoppers, while optimizing for their business goals with advanced capabilities

Retail Search gives clients the ability to offer advanced query understanding, meaning customers will have better success finding what they’re looking for even with the broadest of search terms. The service also includes semantic search, which matches product attributes with relevant products.

Customers are already seeing the benefit of Retail Search.

“With limited customer signals and no historical data, descriptive long-tail searches are some of the most challenging queries to understand,” said Neelima Sharma, senior vice president, technology, e-commerce, marketing and merchandising at Lowe’s. “We have been partnering with Google Cloud to give our customers relevant results for long-tail searches and have seen an increase in click-through and search conversion and a drop in our ‘No Results Found’ rate since we launched.”

Google Cloud customers interested in learning more can visit Discovery Solutions for Retail or contact their Google Cloud field sales representative.