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Secure delivery lockers are huge all over the world. Why not in the US?
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Morning Brew February 02, 2022

Retail Brew

Howdy. It’s 2/2/22—make a wish. Ours might be for more secure delivery lockers, as you’ll read below. And that Punxsutawney Phil’s prediction of six more weeks of winter is way off base.

In today’s edition:

  • Why isn’t the US big on agnostic lockers?
  • Misfits Market sells wine now

Andrew Adam Newman, Erin Cabrey

DELIVERY

Part and parcel

A Wordle checkerboard Wordle

With online shopping skyrocketing during the pandemic, retailers are increasingly dependent on deliveries going smoothly to keep customers loyal, and yet so much can go haywire—especially on that obsessed-over last mile.

  • 210 million packages were stolen in 2021 in the US, according to a survey by Safewise, a home-security firm.
  • About a quarter of e-commerce businesses admit that they fail to deliver more than one out of 10 packages on the first try, costing retailers an average of $197,730 per year, according to Loqate, a location intelligence firm.

The good news? To address all of the above, there are hundreds of thousands of conveniently located secure lockers where retailers can use a carrier of their choice to deliver packages. Plus, customers can pick them up at their convenience—and often even send returns back from the same locker. The lockers, naturally, are high-tech: Both shoppers and carriers unlock them with QR codes or apps. Virtually no package theft or missed deliveries.

The bad news? These lockers are easily accessible all over Europe and Asia…but they’re not in the US.

To be clear, the US has plenty of them, some made by the same companies whose lockers are all over the rest of the world. But in the US they are not—in industry parlance—“agnostic.” In other words, the lockers aren’t open-network, meaning either multiple carriers won’t agree to deliver to them, or they’re not accessible to everyone, or, like Amazon Locker, they’re retailer-exclusive.

But if that ship-to-a-secure-locker system works so well for a company like Amazon, why can’t it be universalized in the US as it has been in so many other countries? Why can’t we have nice things?

Not here, but there

In Japan, they have a lot of nice things: 6,200 locker stations from one company alone, Quadient.

“At this point, there’s a locker within five minutes of most residents” in Tokyo, Gerry Casey, EVP of sales and operations at Parcel Pending by Quadient, told Retail Brew. “If you want a package delivered to [a box] on your walk to work, or the train station or the gym, you just request that via the app and it will be delivered wherever you want.”

  • Multiple carriers deliver to the lockers, which also accept returns.

Lockout: But in the United States? The closest Quadient has stateside to its system in Tokyo are in 5,600+ residential communities and apartment buildings. And while multiple carriers agree to deliver to the lockers, they aren’t accessible to non-residents, meaning that for retailers, they serve only a sliver of their customers in those cities and towns.

Casey said that for Quadient to set up a truly agnostic network in the US would be…complicated.

Click here to read why—and how companies in Denmark and Sweden are approaching secure lockers.—AAN

        

GROCERY

Off the vine

Misfits Market box surrounded by various wines Misfits Market

Misfits Market is raising a glass to the end of Dry January. Starting today, the sustainable online grocery platform is adding wine to its offerings, its first foray into alcohol.

Selections span red, white, rosé, and sparkling, and are sold in “curated” bundles of three ($35.99+) and six ($92.99+), with an emphasis on sustainable farming methods, like less grape pruning and less use of water and pesticides, Chief Strategy Officer Kai Selterman told Retail Brew.

  • It’s also going for value by sourcing from regions like Sicily and South Africa, which aren’t as well-known for their wines.

Another round: Wine is Misfits’ latest stride in becoming a one-stop shop, a priority for the startup after raking in $425 million in funding in last year. Starting with “ugly” produce in 2018, the company says it doubled its SKU count to 500 by the end of 2021 across meat, seafood, alt-protein, eggs, and traditional and plant-based dairy. (The plan is to double it again in the next six months.)

  • Other alcoholic bevs like beer and cider may follow, Selterman said.

“The more typical grocery categories we can offer on Misfits Market, the better and more convenient the experience ultimately is for the customer,” he told us.

  • And for Misfits? It said it’s seen its active customer base and order volume grow 5x over the past year (but didn’t share figures).

Next up: Selterman said the platform is eyeing milk, and mulling frozen and prepared foods as well—aka “things that customers really look for every week in a grocery shop.” And within existing categories, Misfits hopes to add more staples like canned items and grains.

  • To support all this growth, it’s hiring within marketing, operations, product, and tech engineering, he noted.

Plus, the company is this close to its goal to be in all contiguous US states. (You’re next, Montana, North Dakota, South Dakota, and Wyoming.)—EC

        

FROM THE CREW

Listen to Morning Brew’s Business Casual podcast to hear the business story behind everything! Journalist Nora Ali and comedian Scott Rogowsky bring you conversations with creators, thinkers, and innovators who can tell you what it all means—and why you should care. Check out some recent episodes:

COMMUNITY

Coworking with Ian Wishingrad, CMO and co-founder of Three Wishes

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

As CMO and co-founder of grain-free cereal brand Three Wishes, Ian Wishingrad is used to thinking outside of the box to market his product to shoppers—like getting the cast of Willy Wonka and the Chocolate Factory to try it. He’s also used to introducing retail innovators on his Adweek series “I’m with the Brand,” but today, he’ll introduce himself instead.

How would you describe your job to someone who doesn’t work in retail? My main goal is working to make Three Wishes a household name. Day to day, I’m working closely with retailers to ensure the product is eye-level so consumers never miss it. Last, but far from least, I’m driving marketing, social media, and influencer strategy to help bring more awareness and trials.

One thing we can’t guess about your job from your LinkedIn profile: How important relationships are to the success of your brand.

What’s your favorite project you’ve worked on? Once NIL restrictions were lifted last year, I contacted [NCAA basketball player] Buddy Boeheim from my alma mater, Syracuse University. We were the first commercial to include a college athlete and now have a box with his likeness on it.

Name your must-follow accounts: For retailers, @WholeFoods and @Sprouts. For insider knowledge: @Scott Galloway, @Dan Frommer, and @LeanLuxe.

Which emerging trend are you most excited about? The resurgence of brick and mortar and the lowered significance of DTC. Being on a shelf IRL at a grocery store subconsciously makes you way realer and trusted than just another tile in a news feed or another #sponsored product from someone with a following.

Hands down, the best fast-food restaurant chain is…Taco Bell. Did you see its $10 taco subscription launch? Brilliant.

        

WHAT ELSE IS BREWING

  • Starbucks will raise prices again this year due to inflation and labor shortages.
  • FedEx is partnering with eight HBCUs to build a network of logistics and supply chain professionals.
  • Ilia Beauty, a clean cosmetics brand, will be acquired by Clarins’ holding company, Famille C.
  • Lowe’s has started rolling out a rewards program for home improvement pros.

FROM THE CREW

Valentine’s Day sale at the Morning Brew store

If your version of pillow talk typically includes subjects such as crypto, stocks, or a guy named Elon, we’ve got the perfect Valentine’s Day gifts for you.

Check out the Morning Brew Shop and shop the collection.

SWAPPING SKUS

Today’s top retail reads.

On a tear: The latest move to be more sustainable? Mending clothes in stores. (Glossy)

Too cool: Streetwear is hotter than ever in China, thanks to Gen Z. What is shifting is the importance these young consumers place on local labels. (Jing Daily)

Space exploration: More warehouse space helps hedge against supply-chain shortages, but it’s getting harder and harder to find. (The New York Times)

Essential info: KPIs help organizations measure progress, but which are the most important when it comes to tracking success? In Oracle NetSuite’s guide, you’ll learn about the 20 essential KPIs every growing business should track, and much more. Get the guide here.*

*This is sponsored advertising content.

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