Top 4 Global Retail Ecommerce Articles for the Week of August 22

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For those who are new here, every week(ish) I'll share various topics that I think are important for the modern leader in Retail Ecommerce.

Every Monday, I'll try to share the articles that stood out to me that are worth a few minutes of your time to read.

Article 1:?As inflation bogs down shoppers, some retailers fare better than others

As consumers downshift their spending away from discretionary categories and toward essentials, profits are at risk across retail, yet last week’s earnings reports proved that not all retailers are handling the current profitability crunch in the same way.

Target in particular was punished for over-investing in discretionary categories, whereas Walmart’s focus on grocery allowed it to navigate these difficulties with considerably more flexibility. In short, Target’s profits fell 90% in Q2 while Walmart’s profits saw an 8.4% jump. Low-cost retailers like Walmart and Dollar General can thrive as deal-seeking shoppers trade down to retailers known for their low prices on essential goods. Target does not carry the same value proposition with its shoppers and is suffering as a result.

Brands need to take these circumstances into account and compare their performance not just over time but also across accounts. With ecommerce growth rates inching back into the double digits at Walmart, determining where to invest your next dollar has never been more important. This decision lies at the heart of efficient Retail Ecommerce Management (REM).

Article 2:?Amazon is pressing pause on dozens more self-checkout grocery stores amid disappointing sales, report says

Amazon store sales growth figures are not living up to the online giant’s expectations. Much of the growth that is occurring is due to new openings rather than same-store comps. Now, the retailer is either delaying or canceling plans to open dozens of stores as the division undergoes an organizational restructure.

Amazon may have mastered ecommerce, but the same rules don’t apply to in-store shopping. Amazon excels when it can eliminate routine or unnecessary shopping trips via ever-more convenient ecommerce. In-store shopping excels when it can provide a compelling experience combined with availability and price. As it stands, there is little reason to shop at an Amazon grocery store as opposed to just shopping online or going somewhere else. Making in-store shopping as convenient as possible won’t overcome this barrier. Amazon must make its shoppers?want?to go to its stores.

Article 3:?DoorDash is ending its delivery partnership with Walmart

As Walmart continues to build out its own delivery driver network, DoorDash has decided to end its 4 year partnership with Walmart. At the same time, DoorDash has inked a new deal with Meta to deliver Facebook Marketplace products to customers.

The important takeaway here is this: all businesses must decide who is a partner and who is a competitor. Over the past several years, Walmart has built out its own Spark platform to handle 75% of Walmart’s deliveries. It recently decided to acquire the company that provided drivers for that platform, Delivery Drivers, which is now canceling its non-Walmart contracts. In essence, Walmart ceased to be a complementary player to DoorDash and became a competitive one. Better for DoorDash to cut the cord now and focus on new growth opportunities.

Article 4:?India’s retail inflation likely to ease below 6% by March quarter: analysts

Inflation is finally easing in India as the government has combatted price increases with raised rates. Within the next several months, inflation will likely dip below 6%, putting it into the target range of 2-6% laid out by the government. At the same time, rising rates are putting downward pressure on broader economic activity. More rate hikes are expected before December to ensure inflation moderates. The Reserve Bank of India is also taking notes from the US Federal Reserve, basing the level of its own rate hikes as a proportion of what the Fed projects. Inflation is a global problem. It is appropriate then that a similar solution is being informally orchestrated in tandem across many central banks.