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How music can help stores hit the right notes.
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Morning Brew March 15, 2022

Retail Brew

NewStore

Hello, hello. We all remember the Ever Given…Well, it turns out that the Ever Forward, another container ship owned by Evergreen Marine Corp., isn’t, uh, going forward at the moment. It’s been stalled in the Chesapeake Bay since Sunday.

In today’s edition:

Julia Gray, Katishi Maake, Jeena Sharma

STORES

What’s that sound?

Portlandia gif dancing the grocery store Portlandia/IFC via Giphy

If you were to step into an Urban Outfitters blindfolded (we do not recommend this) and play guess-that-retailer, the sounds of Pitchfork-rated indie hits would probably tip you off. For a blindfolded trip to Rite-Aid (again, not recommended), you might instead recognize the familiar calm of smooth adult contemporary and quiet pop from artists like Seal and Tears for Fears.

It sounds simple, but the soundtrack for trying on crop tops is very different from the song a customer wants to hear while comparing deodorants.

  • A 2019 survey of 10,000 consumers showed nearly half of respondents spent longer in a store because they liked what was playing on the speakers, while 57% said they’d be more likely to ditch their shopping cart if a store made questionable music choices.

And in today’s Covid-era world, hitting the right note means keeping your shopper in a good mood.

“Pre-pandemic, retailers would, for the most part, be interested in having a variety of styles…and a range of energy levels,” explained Richard Jankovich, founder of the in-store music company Shoplifter that works with companies like Chanel, Nike, and Taco Bell. But now, “there’s no tolerance for music that deviates from bright, upbeat fun.”

One-two step back: For retailers thinking about changing their tune, Jankovich told Retail Brew, the equation to first consider is “your brand plus your target customer,” and then finding pieces of music that reflect that. Boot Barn might play country, Starbucks may opt for “easy breezy acoustic pop songs,” as Jankovich put it, and fast-fashion spots like H&M “want you to feel like you're at a nightclub.”

  • If your music isn’t linking to your brand’s core attributes, that’s a playlist, not a strategy.

Stephanie Perdue, VP of brand marketing at Chipotle, for example, describes the restaurant’s soundtrack as “genreless, optimistic,” with “real instrumentation, and real artistry,” but also “fun and relevant.” That explains why you might hear everything from Mos Def to Johnny Cash to avant jazz over your burrito bowl.

But beyond the ~vibes~, music also facilitates flow and pace. “We think about time of day, when there’s a lull in the day, what kind of music really supports that experience, to when it’s frenetic and busy during rush hour,” Perdue told us.

Click here to read the full story.—JG

        

E-COMM

Digital dash

purse with arms sticking out of phone Francis Scialabba

Inflation has been the talk of the town lately, but new data suggests it’s not slowing down some online shoppers one bit.

Of the $1.7 trillion spent via e-commerce during the two years of the pandemic, $32 billion was driven by higher prices, according to the Adobe Digital Economy Index, released today.

  • In 2020, higher prices accounted for $4.7 billion of the growth in online spend. In 2021, that figure jumped to $22 billion.
  • Overall, online sales were $812.8 billion in 2020, a 41.1% bump over 2019, and saw an incremental hike of 8.9% in 2021 to $885 billion.

Break it down: E-commerce spend on grocery has steadily climbed from $73.7 billion in 2020 (9.1% of e-comm market share) to $79.2 billion in 2021 (8.9% of market share). Adobe predicts the category will reach $85 billion in 2022.

On the other hand, inflation has hurt apparel more than other categories. In 2020, online apparel sales only grew 9.1%. Last year, that number was up only 8% YoY, reaching $126.2 billion. Although apparel accounted for 18.5% of e-comm spend in 2019, it shrunk to 14.3% in 2021.

“Apparel had the messiest time I think of any category [in] the pandemic, because as soon as we all decided all we needed in life were sweatpants, everybody had all this inventory they had to unload,” Taylor Schreiner, senior director of Adobe Digital Insights, told Retail Brew.

  • “We’ve seen some of the strongest variation in prices in any category coming out of apparel.”

Click here to read the full story.KM

        

TOGETHER WITH NEWSTORE

Def need an app for that

NewStore

Let’s end the debates, shake hands, and drop the mic: DTC retail brands need their own apps. They need apps in the same way sneakers need socks or coloring books need crayons.

If you’re starting to think, “Mobile-optimized websites are all brands really need,” allow us to run it back: Consumers downloaded 230 billion apps in 2021, and time spent in shopping apps rose 15% year over year, according to data.ai (formerly App Annie). Need we say more?

Oh, yes, we do: Apps support in-store sales, online sales, and the overall brand experience. That qualifies apps for the “We for sure, most definitely need this” column, not the “Nice-to-have” column.

What?! Still not convinced? Download NewStore’s latest white paper for the 7 reasons why you need a consumer app to win at DTC retail.

INTERNATIONAL

Gold rush

Gold rush Jeena Sharma

Beyond spices and cotton, the gems and jewelry market in India is one of the largest in the world: It makes up about 29% of the global jewelry consumption, according to India’s Department of Commerce.

  • The country also accounts for nearly all (90%) of diamond cutting and polishing in the world.
  • In 2021, jewelry consumption amounted to 7% of India’s GDP.

To get a sense of the bustling industry firsthand, we (well, me, Jeena here) visited Zaveri Bazaar in Mumbai, Asia’s largest bullion market that gets ~500,000 visitors a day.

The narrow and crowded aisles of the 150-year-old market are packed with 3,000+ big and small jewelry businesses—selling everything from gold to gemstones to imitation pieces. Zaveri Bazaar reportedly makes up for nearly 60% of India’s gold trade and employs about 50,000 artisans.

  • “Everyone’s constantly competing here,” said one salesperson we spoke to.

Click here to get a glimpse of Zaveri Bazaar, in photos.—JS

        

WHAT ELSE IS BREWING

  • Macy’s plans to remake its website and train some employees to be personal stylists to attract new customers.
  • The UK government is banning luxury-goods exports to Russia.
  • Starbucks was asked by an investor group to embrace “neutrality for all current and future attempts of its workers to organize.” The coffee chain also shared plans to ditch single-use cups.
  • Ralph Lauren will release its first collection completely designed by Black creatives for HBCUs.

TOGETHER WITH LOOP

Loop

Nice sale! Now get to work. Your post-purchase process—that’s everything you do after the customer buys your item—has a huge impact on whether they become a loyal customer … or a one-time buyer. Together with Loop, we wrote a piece on how you can build a return and exchange process that increases trust and engagement. Check it out.

SWAPPING SKUS

Today’s top retail reads.

More than meets the eye: A year after H&M was essentially wiped from China’s online world, there are lessons for brands today. (Bloomberg)

Check it out: Self-checkout kiosks are getting their fair share of upgrades—from age verification to tools that can recognize produce. (Grocery Dive)

On the ground: Some Amazon warehouse employees at its Bessemer, Alabama, facility share why they’re not voting for a union. (Insider)

So, what exactly is inflation? In this episode of Brew Breakdown, we explain exactly what inflation means, how it’s measured, what can be done about it, and why you should care. Watch now.

TIME MACHINE

Mall stores disappearing per Coresight Research Francis Scialabba

What happened in the world of retail this week in…2010 and beyond? Retail Brew takes you way, way, way back.

It feels like a lot longer than two years ago, but this is the week when Covid forced retailers to start shuttering stores.

  • On March 13, 2018, Zara said it would introduce augmented reality displays to 120 of its stores worldwide.
  • On March 15, 2010, Phillips-Van Heusen (it now goes by PVH Corp.) announced it would buy Tommy Hilfiger for $3 billion, adding to its stable of brands, which includes Calvin Klein.
  • On March 17, 2020, 37 different retailers—including Adidas, H&M, and Nordstrom—decided to temporarily close their stores due to the coronavirus pandemic.
  • On March 19, 2014, Walmart hosted a “grand opening” of Walmart To Go, a one-off convenience store, in its home base of Bentonville, Arkansas.

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Written by Julia Gray, Katishi Maake, and Jeena Sharma

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