Top 4 Global Retail Ecommerce Articles for the Week of September 6

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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:?Bed Bath & Beyond to cut jobs, close stores in bid to reverse losses

Bed Bath & Beyond is cutting 20% of its workforce and closing 150 stores. Though these latest moves may be new, BBBY has had deep-seated challenges for years that strike at the very center of its business model. As a ‘category killer,’ it has been especially susceptible to erosion via large ecommerce marketplaces like Amazon and Walmart that dominate the bulk of growth within retail ecommerce. BBBY’s primary appeal, that you can find anything within its core categories at one location, has become a liability as even broader online retailers offer millions of items across all categories.

Shoppers do not need or want to go to multiple stores to get everything they need if the same goods are all available in one place at the same price, especially if that place is online. To survive, Bed Bath & Beyond must either compete on price or stock trip-driving, exclusive merchandise.

Article 2:?Walmart raised prices the most among top food retailers in latest quarter, J.P. Morgan survey says

This one is less of an article and more of a headline. Despite its reputation as a low-price leader, Walmart could be raising prices by a bigger percentage than the competition.

EDLP retailers like Walmart have both risks and challenges in an inflationary environment. A low-cost model can help hold the tide against inflation, but low margins also mean they have less rope to use once costs start rising substantially. Furthermore, if their shoppers rely on consistently low prices to make ends meet, then even small price increases can cause harm to Walmart’s reputation. Finally, Walmart needs to ensure that its low-price promise extends online to drive Walmart+ subscriptions. Matching ecommerce and in-store pricing is another challenge for omnichannel retailers, especially when in-store price signage is not nearly as flexible as online pricing. So far, Walmart has benefited from wealthier shoppers trading down to shop Walmart as a less-expensive alternative. Walmart needs to ensure that its core shoppers don’t start trading across to discounters like Dollar General or Aldi.

Article 3:?China’s ecommerce giant Pinduoduo quietly launches U.S. shopping site in Amazon challenge

I’m skeptical of this headline. Pinduoduo’s new Temu site, focused on fashion and jewelry, launched on September 1. It offers US shoppers delivery within 7-15 business days with free shipping on orders over $49. The move could represent incremental growth for the company in a new market.

Except this won’t cut it. American consumers expect free shipping with two-day or next-day delivery. Explaining that shipping times are extended on Temu because goods have to be shipped from China will not satisfy US shoppers. With so many other exclusives and competing options available already, Temu will need to focus on an assortment niche where it can win and establish a foothold before it can think about mounting a serious challenge to Amazon?in these categories.

Article 4:?Meta challenges Amazon, Walmart for share of Indian ecommerce market

Meta is making JioMart’s full grocery selection available for purchase on WhatsApp. Users will be able to pay for groceries through WhatsApp Chat.

This is a smart move for Meta. Rather than build something new, just integrate an existing, local grocery player into an already massively popular program and watch what happens. The risks are lower than starting from scratch, but the upside could be huge. But like all new ventures, Meta needs to offer something distinct that sets its new service apart from the competition, something that can overcome the friction caused by rerouting consumers’ existing routines. Perhaps convenient chat-based shopping will be enough to achieve this, but if it isn’t, Meta will need to pivot quickly before the launch loses momentum.