Stay in Touch
The buy now, pay later space continues to evolve -- with physical retail being the latest race among players like Klarna, Afterpay and Affirm. The latest partnership, between Klarna and mall operator Macerich, shows that shopping centers are looking for more ways to court young shoppers.
Startup CPG brands are getting into retailers earlier and earlier, and the trend is no coincidence. Companies like frozen meal makers Ayo and Cool Beans have found success attracting large retailers, such as Target and Kroger. However, others are cautiously optimistic about grocery chains' increased interest in upstart CPG brands.
During the Modern Retail Summit held last month in Palm Springs, Modern Retail held an intimate working group with top retailers and brands. There, 13 decision-makers sat down and discussed some of the biggest issues hampering their businesses.
Early access is the hottest new rewards perk. This holiday season, both Walmart and Best Buy announced that they'll offer their loyalty members earlier shopping hours and exclusive access to sought-after gifts, such as game consoles, smartphones and TVs.
Over the past year alone, almost every major American retailer -- Target, Walmart, Kohl’s, Macy’s, and Nordstrom amongst them -- has invested in a shop-within-shop store concept. Modern Retail looked at three reasons brands and retailers are approaching shop-within-shops today: revitalization of stale retail floors, bringing back shuttered brands and speedy brick-and-mortar expansion of trending categories.
Following in the footsteps of competitors CVS and Rite Aid, Walgreens has announced a new strategy focused on medical services. The pharmacy chain, which has struggled to compete as a beauty and skincare destination, is reinventing itself as a healthcare hub.
On Tuesday, Best Buy announced it would be acquiring at-home health monitoring and health wearables company, Current Health, for an undisclosed sum. Best Buy is centering it's health strategy on the "active aging community," the Baby-Boomers-and-above crowd hoping to base their healthcare in their own homes.
Bloomingdale’s highly-curated small fashion store, Bloomie’s, is the company's mood board for millennials and Gen Z. Bloomie’s offers a revolving lineup of luxury products -- from apparel to beauty to accessories -- mixed with services including in-store and curbside pickup, a returns dropbox and access to Bloomingdale’s full inventory.
Late last week Target announced that it was partnering with two BNPL providers, Sezzle and Affirm, “right in time for the holiday season.” As retailers attempt to get consumers shopping early this season, analysts interviewed by Modern Retail think BNPL might help to speed up holiday purchases and draw in younger holiday shoppers.
Foot Locker-owned Eastbay is the latest retailer to debut an in-house brand. For decades, Eastbay's merchandise strategy has been focused on carrying third party brands. Now, the company wants to grab a bigger share of the student athlete market with the help of refreshed merchandise.
Wisconsin shopping center The Corners of Brookfield is creating a marketplace website with multi-retailer product purchases, centralized buy-online-pick-up-in-store (BOPIS), and centralized returns. The mall thinks it's only the beginning of destinations like it launching programs like these.
Niche, category-specific marketplaces like health foods purveyor Bubble are offering an increasingly appealing alternative to Amazon for both brands and customers looking for a more curated marketplace experience, explained Bubble CEO and Founder Jessica Young at Digiday and Modern Retail's Marketplace Strategies Forum.
Once known as a mall staple among tween and teen girls, Claire's is attempting to modernize itself for Gen Z consumers. The company, which filed for bankruptcy in 2018 and has since brought on a new CEO to overhaul the brand, wants to use e-commerce to drive sales back to its experience-focused stores.
Nordstrom embraces the wellness category in a new brand partnership with at-home health testing brand Viome Life Sciences. Last year, a slew of formerly-apparel-dominated retailers shifted focus to beauty and wellness, and now retailers like Nordstrom are expanding the scope of the category.
As brands grapple with their physical retail strategy, some are finding opportunity in looking outside the traditional retail hubs. Fashion brand Faherty, for example, has embraced resort and vacation destinations for its new stores. This strategy is a departure from the company's previous store expansion approach, which focused on coastal cities.
Earlier this month, resale platform Rebelstork – which buys back and sells refurbished baby gear – launched in the U.S. The Canadian startup, founded in 2019, is positioning itself as a white-glove and sustainable shopping service for parents. As resale continues to become more popular, more companies like Rebelstork are trying to corner the secondhand market in niche product categories.
Read MoreRecognizing the companies and campaigns modernizing retail in the digital age.
REMIND ME
