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ICYMI: Walmart’s digital shelf labels.
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August 27, 2024

Retail Brew

Klaviyo

It’s Tuesday, and two national restaurant chains are bringing in new CEOs. Red Lobster is hiring the former CEO of P.F. Chang’s, and Outback Steakhouse is hiring the former chief operating officer of Delta Air Lines, which speaks highly of his management expertise, given the reputation of airline meals.

In today’s edition:

—Alex Vuocolo, Vidhi Choudhary

STORES

Put that idea on the shelf

Walmart prices Bob Riha Jr/Getty Images

The humble price sticker may be on its way out at the country’s biggest retailer.

Walmart last week announced plans to adopt “digital shelf labels,” or DSLs, at 2,300 stores—which is around half of its US footprint—by 2026 according to Reuters. The upside, according to the retail giant, is that store employees will now be able to update prices within minutes, speeding up a process that used to take two days and giving them more time to assist customers in other ways.

This may sound like a recipe for embracing dynamic pricing, which is the practice of adjusting prices in real-time, but Walmart stressed that the technology is more about speeding up its existing process for updating tags.

Keep reading here.—AV

   

PRESENTED BY KLAVIYO

Connect where (and when) it counts

Klaviyo

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E-COMMERCE

Data decisions

Google logo with binary code and ai elements Francis Scialabba

At its Think Retail conference on Tuesday, Google made its annual pitch to merchants to use its search and AI tools—with a few improvements—as they prepare for the holiday season. The tech giant may have lost a landmark ruling to the FTC recently, but that’s not stopping it from finding ways to meet its holiday targets.

In a blog post, the search behemoth said that in the coming weeks, retailers around the world using Merchant Center Next will be able to use Google’s search capabilities to jump on shopping trends that are going viral.

“The trending data is a key way that we can go focus on that, where it’s, here is what users are currently shopping for and looking for right now, and including the words and the way the users are actually framing it, the way they’re searching for it, and allowing the retailers themselves to act on it,” Jeff Harrell, Google’s senior director of merchant shopping, told Retail Brew.

Google said the feature may help retailers “make better informed inventory decisions” and help them craft product descriptions that include key terms shoppers are using to search for items.

Keep reading here.—VC

   

RETAIL

Dressing for less

off-rack clothes Chip Somodevilla/Getty Images

As essentials have gotten more expensive, consumers are trying to save on clothes. The market share for “value apparel” increased almost 4% among Gen Z and millennial shoppers within the last year, according to new internal card data from Bank of America. The bank defines value apparel stores as those that serve customers with the lowest median income. In July, household spending on value apparel had increased 13% from July 2019.

And discounters are benefiting. TJX, the parent company of Marshalls and TJ Maxx, reported a 4% increase in consolidated comparable store sales in Q2, and CEO Ernie Herrman expressed confidence that its model will keep customers coming. “We’re convinced that consumers will keep seeking value,” he said. “We believe our strategy of trading across a broad range of income and age demographics differentiates us from other retailers and remains a tremendous advantage.”

Ross Stores also reported a 4% YoY increase in comparable store sales, and attributed the bump to higher-priced necessities driving customers toward value in their discretionary spending.

Keep reading here.—AV

   

SWAPPING SKUS

Today’s top retail reads.

Pay bumped: The National Labor Relations Board is set to issue a complaint against Chipotle for allegedly denying raises to unionized employees. (Reuters)

Backing down: Lowe’s will stop participating in surveys for the Human Rights Campaign as it scales back on diversity, equity, and inclusion programs. (Bloomberg)

Powering up: SharkNinja is looking to become a bigger presence in kitchens and homes. (the Wall Street Journal)

BFCM boost: Get Klaviyo’s 10 Omnichannel Tactics Proven to Drive BFCM Sales guide to learn 10 top-notch omnichannel ways to reach your audience. Learn smarter segmentation strategies + more with this guide.*

*A message from our sponsor.

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