E-COMMERCE

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At eTail Boston last week, retail executives predictably had a lot to say about artificial intelligence, but that wasn’t the only topic that came up repeatedly at the annual retail conference. The importance of the in-store experience and loyalty programs were also popular topics, as retailers appeared committed to improving their brick-and-mortar stores in addition to getting the most out of new AI-powered technologies.

Here are some of the biggest takeaways:

Target finds its AI footing

Brad Thompson, SVP of technology at Target, went deep on the company’s experience so far in adopting AI, noting that “at the beginning, it was dicey,” because of the high risk of “hallucination,” which is when AI fabricates false information. Since then, Target has taken pains to develop its tools in-house. “Everything we do on our e-commerce stack is custom built,” Thompson said, “which means that when we make the decision to build something on our platform, it is our own software developers, our own data scientists that are building that.”

Keep reading here.—AV

      

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CONSUMER BEHAVIOR & TRENDS

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With the bulk of Q2 retail earnings dropping this week, major companies will publicly take stock of how the spring and early summer, including the beginning of the back-to-school season, are playing out. To prepare for this avalanche of fresh numbers and (ideally) fresh insights, here is a quick rundown of recent economic news:

Slowdown to decline: While Q2 generally covers the spring months through June, recent federal data indicates that a slowdown in retail spending earlier in the summer has tipped into a full-blown decline. In July, retail sales fell 0.6% month over month, their biggest decline in more than a year, according to the US Census Bureau’s estimates. The drop comes on the heels of slightly slower spending in June, according to the Commerce Department—although in that case, sales were actually up 0.7% when gas stations were excluded from the benchmark. Now the measure is declining even without factoring in gas stations, per the Commerce Department, as key categories such as nonstore retailers see a drop-off.

Keep reading here.—AV

      

MARKETING

DoorDash

Hemorrhoid cream, a plunger, anything remotely sexual. Some items are so embarrassing to buy people would often rather go without than deal with any potentially awkward interaction at the checkout counter when purchasing them.

DoorDash is taking that embarrassment up to 11 in a social series aimed at promoting “CringeMart,” a new shopping hub on the delivery app that collects such items in one dedicated area.

Keep reading here on Marketing Brew.—KM

      

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Crossing the AI divide. Parloa’s latest guide helps retail CIOs navigate AI at scale. In it you’ll find advice on how to get technical requirements right, select the right AI partner, and future-proof your AI tools to prepare for what’s next. Get it here.

swapping skus

Today’s top retail reads.

New business: Costco will soon offer a limited run of branded Medicare plans, addressing a potential market of 5 million enrollees. (the Wall Street Journal)

Back in business: Mexican avocado exports are resuming after the US lifted a security alert that hampered output in a key agricultural region. (the Associated Press)

Lean and mean: Nestlé is tapping artificial intelligence and nutritional science to come up with a fresh slew of products aimed at customers who take weight loss drugs. (Reuters)

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