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It’s Tuesday, and Target reported its Q4 results this morning in one of the last big calls from a major retailer this earnings season. While it’s hard to summarize the varied fortunes of the country’s biggest stores, one big takeaway is fairly straightforward: 2024 is a year of reinvention. Or, to put a more menacing spin on it, retailers are reinventing themselves to survive in a rapidly changing economy.
In today’s edition:
—Andrew Adam Newman, Alex Vuocolo, Erin Cabrey
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Ideastream Public Media
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When the pandemic elevated online shopping, some predicted the demise of brick-and-mortar stores—the thinking being that even when in-person shopping felt safe again, the convenience of e-commerce would render stores irrelevant.
But that’s not what’s happening. At their best, a new crop of stores have become destinations, beckoning shoppers with creative displays that encourage testing products, design flairs that have them reaching for phones to snap photos for social media, and activities that reconnect them with neighbors.
A new Radio Flyer store outside Chicago, for instance, has a racetrack for kids to test bikes and scooters, while a Petco in New York has a pet-grooming area that looks like a classic barbershop, transforming what can be a messy service that’s often shielded from view into entertainment.
Snarkitecture, a New York-based design practice founded by architect Alex Mustonen and artist Daniel Arsham, is known for introducing elements in retail environments that are artistic, elegant, and lapel-grabbing.
“We come from the artistic perspective where…We look at problems in a different way that’s a bit more playful, that’s a bit more interactive, that’s a bit more immersive,” Alexander Buckeridge, Snarkitecture’s director, told Retail Brew.
Here are four examples of what Buckeridge refers to as artistic or architectural “interventions” that Snarkitecture has included in its retail store designs.
Keep reading here.—AAN
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Wish you could see inside shoppers’ heads and know what they really think? Well, here’s a sneak peek courtesy of NewStore—no X-ray vision required.
Hot off the presses, it’s the 2024 Omnichannel Leadership Report. This doc sizes up 700 different brands in 10 countries and focuses on the online, mobile, and in-store shopping experience, all from the customer’s perspective.
Download your copy of the report to get valuable insights on:
- the leading omnichannel brands
- the current state of omnichannel capabilities
- a deep dive into the customer shopping experience overall
Dig into the deets to see how digital transformation can take your biz to the next level.
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Bruce Bennett/Getty Images
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Best Buy is planning an experiment. In the next fiscal year, the electronics retailer will test its ability to retain its customer base by closing large stores and opening smaller ones in the same area.
The company introduced its “small-format, digital-first store” concept back in 2022 in Charlotte, North Carolina. The 5,000 square-foot location promised a “curated selection” of products, Geek Squad services, and scan-and-go capabilities.
- Relatedly, Best Buy recently struck a deal with Bell Canada to rebrand and operate 165 small format consumer electronics stores previously known as The Source. Best Buy will provide the products and the supply chain, marketing, and e-commerce expertise, while Bell will offer telecommunications services and operate the stores.
The embrace of small format is just the latest instance of Best Buy’s efforts to reimagine its physical footprint.
Keep reading here.—AV
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Lordhenrivoton/Getty Images
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As consumers continue to face higher prices at the grocery store, state governments are looking at new ways to lower the cost at checkout. Three of the 13 US states that currently tax groceries have made recent efforts to possibly eliminate or lower these taxes. Here’s what to know:
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Oklahoma: Oklahoma Governor Kevin Stitt signed into law last week a bill to eliminate the state’s 4.5% grocery tax.
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Illinois: Governor JB Pritzker supported cutting the state’s 1% grocery tax, which was temporarily suspended in 2022, during his budget address last month.
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Tennessee: Republican lawmakers in Tennessee introduced a bill in February to allow government leaders across its counties and municipalities to lower the local 2.75% grocery tax rate.
Keep reading here.—EC
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Win their hearts. Ready to take things from “like” to “love” with your consumers? The LTK Most Loved white paper will show you how to do it. It lays out the elements that win the LTK Most Loved awards for top brands, with tips and tricks on winning consumer hearts. Get the insights.
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Today’s top retail reads.
Bigger deal: After getting rebuffed last year, private equity investors Arkhouse Management and Brigade Capital have raised their offer price to buy out struggling department store chain Macy’s. (Reuters)
Going small: Amazon-owned Whole Foods is planning to open more small-format stores in a bid to draw more urban consumers making quick trips. (Bloomberg)
Buying the pill: Over-the-counter contraceptive pills branded as Opill will be available for sale at retailers starting this month. (the Wall Street Journal)
Crack the omnichannel code: Learn about the state of omnichannel retail in NewStore’s new report. See how digital transformation can help you level up your biz + create a better customer shopping experience.* *A message from our sponsor.
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