Top 4 Global Retail Ecommerce Articles for the Week of December 12

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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:?Walmart CEO Doug McMillon says organized retail theft could lead to stores closing

Retail theft is on the rise around the country, especially organized retail crime, and retailers are taking notice. Walmart CEO Doug McMillon has noted that if not reversed, retail theft could mean store closures and higher prices at existing stores. Of course, higher prices likely play into higher rates of theft already. This could contribute to a vicious cycle, where higher prices lead to more theft which in turn leads to higher prices. This, in turn, could lead to higher prices online for almost all shoppers across retail. More retail theft isn’t good for anyone. At CommerceIQ, we’ve seen ongoing price increases in ecommerce even though the rate of increase has slowed in recent months.

However, it’s worth noting that store closures aren’t anything new. Over the past several years, Walmart alone has closed 160 stores in the US, out of its almost 5,000 stores nationwide. I also wonder if there’s more at work here than just retail theft. If consumer spending is slowing in Q4, Walmart might consider closing some stores anyway. More theft might just be the added weight that tips the balance in favor of store closures.

Article 2:?Amazon (AMZN) enriches shopping experience with Inspire launch

Here’s a development outside of ecommerce’s comfort zone. Amazon is looking to replicate TikTok’s success with its own Inspire platform. Inspire allows brands and influencers to showcase products directly on the Amazon app via short-form video content.

Amazon has its work cut out for itself. Marrying ecommerce and video social media has been a difficult combination for Western audiences to accept despite its rise in Asia. TikTok has had difficulty introducing ecommerce despite its dominance in short-form video. Inspire’s biggest challenge will be accomplishing the reverse: selling the natural authenticity of its videos despite its first and foremost focus on ecommerce. After all, shoppers don’t think of Amazon as a social media destination. Building an organic social presence might be necessary before ecommerce can take off, even if Amazon’s options for integrated shopping make purchasing simpler.

Article 3:?Restaurants lead 8.1% rise in retail sales in November

Retail continues to grow despite news of layoffs, inflation, and elevated rates from the Fed. What’s most interesting from Mastercard’s spending Pulse Report is the category breakdown. Discretionary goods are all declining except apparel. Apparel is likely up due to its association with new experiences. Restaurant sales are still up significantly, and we already know air travel is continuing well past peak vacation season. Household essentials and grocery sales are also higher. Part of why this downturn has been so difficult to diagnose has been because it’s been so unevenly distributed between different categories. The current economic environment is unlike anything we have seen before.

Article 4:?Cash retail payments halved last year as ecommerce sales soared

Cash use in Britain halved in 2021, accounting for only 15% of transactions compared to 30% during the prior year. To me, this is a worrying trend. I wonder if this fall is correlated with the rise of Buy-Now-Pay-Later (BNPL) which might appeal to cash-strapped shoppers. During months of slow retail growth, more generous financing terms and higher discounts can appeal to cash-strapped shoppers. Comparative shopping can be especially powerful within ecommerce. Our data at CommerceIQ shows that we’ve seen low discount levels for the past two years in the US even as certain discretionary categories have bucked this trend in 2022. It’s time for brands to reprioritize their shopper engagement tools and bring back discounts. This will require finding cost-savings elsewhere in the business. A good Retail Ecommerce Management (REM) strategy can identify where incremental dollars should be cut as well as invested.