What mattered in the retail sector this month?
Note: O. Macard, EY Partner- Head of Retail and Consumer Products for France
Every month, I will introduce a few trends that I think reflect deep changes in the retail space, setting new directions that may compel industry players to rethink their business strategy.
Trying to cope with COVID-19…
1. Amazon deploys thermal cameras to screen US warehouse workers for Covid-19
Amazon US is exploring different technological approaches to screening warehouse workers for COVID-19. The ecommerce giant has confirmed to Reuters that it’s using thermal cameras at some warehouses to check for fevers that may be indicative of the new coronavirus. Amazon didn’t explain the decision, but the method should be faster and safer than conventional methods that require checking everyone with a forehead thermometer.
Workers said Amazon still asks for a thermometer check (reportedly required by an international standard) on anyone the thermal cameras flag, although that method involves slipping the thermometer through a plexiglas screen. The cameras could nonetheless be safer by reducing the amount of contact between employees, both for screeners and those who’d otherwise have to queue up for checks.
https://www.theverge.com/2020/4/18/21226356/amazon-thermal-cameras-warehouses-fevers-coronavirus
2. Kroger offers blueprint to US retailers planning to reopen safely
Kroger has published the first installment of "Sharing What We've Learned: A Blueprint for Businesses" to provide actionable recommendations for retailers, restaurants and food service companies, manufacturers, logistics and distribution centers and other industries to consider as they start crafting plans for safe work environments while the COVID-19 risk persists.
Kroger's Blueprint includes actionable recommendations and learnings that the company has applied in the last six weeks to safeguard its associates, customers, and communities, as well as what it has learned through regular interaction with business leaders in other countries, including Italy, Singapore and China – all of which were ahead of the US in terms of the pandemic cycling through their countries.
https://ir.kroger.com/file/Index?KeyFile=403685663
3. JD.com offers online booking of Covid-19 tests
JD.com’s JD Health is partnering with Beijing KingMed Diagnostics Laboratory to book Covid-19 nucleic acid testing services online, becoming the first platform in China for consumers to book this service online.
Users can search for the booking service through JD’s app place the purchase and make an appointment with the testing service provider. Appointed by the Beijing Municipal Health Commission, Beijing KingMed Diagnostics Laboratory is an official designated institution providing nucleic acid testing of Covid-19 for groups and individuals.
https://jdcorporateblog.com/covid-19-testing-service-can-be-booked-online-on-jd-health/
4. Retailers face another challenge during coronavirus: Handling returns
Many retailers are adjusting return windows to ease customers’ worries about getting their money back, if they shop online for clothing and other items.
Longer return windows add another level of complexity to how companies are managing their businesses during the coronavirus pandemic.
Most retailers are still unsure of when shops will be able to safely open again.
A new reality for retailers includes temporarily shuttered storefronts and steep sales declines. Part of that equation includes a more complex issue: Handling shoppers’ returns.
Macy’s, Gap and other retailers are adjusting return windows to ease customers’ worries about getting their money back, if they buy clothing and other items online as stores are dark.
Longer return windows add another level of complexity to how retailers are managing their businesses during the coronavirus pandemic. Most are still unsure of when their shops will be able to safely open again. And some are operating their online businesses with reduced staffing — after having furloughed store and warehouse workers, as business dried up and states ordered nonessential retailers shut.
5. "No lines, no crowds": Germans stay home as stores reopen
German consumers are counting their pennies rather than returning to shop in large numbers as stores gradually reopen after being locked down during the coronavirus crisis, the national retailers association said on Wednesday.
Europe’s largest economy allowed stores of up to 800 square meters (8,600 square feet) to open again from Monday, along with car and bicycle dealers and bookstores, provided they adhere to strict social distancing and hygiene rules.
On Wednesday, larger furniture outlets were also allowed to open in the western state of North Rhine Westphalia, such as 11 stores of Swedish chain Ikea
6. Walmart to hire 50,000 more workers in coronavirus-driven hiring
Walmart Inc (WMT.N) said on Friday it would hire 50,000 more workers at its stores, clubs and distribution centers to meet a surge in demand for groceries and household essentials from consumers stockpiling during the coronavirus outbreak.
The retailer said it had reached its earlier target of hiring 150,000 workers six weeks ahead of schedule, taking in 5,000 people per day on average at a time when millions of Americans are losing their jobs amid unprecedented “stay-at-home†orders from state and local governments.
The measures to control the spread of the disease have brought economic activity to a virtual standstill, forcing companies to take drastic steps to save cash.
Walmart said it had worked with more than 70 companies that furloughed workers due to the pandemic to hire its 150,000 new employees, many of whom came from the restaurant and hospitality industries.
While support is being organized…
7. Britain's high street seeks government rent support
Britain’s commercial tenants and landlords have asked the government for rental support, saying the coronavirus pandemic makes it impossible for thousands of retailers to pay their rents.
The scale of the crisis facing the retail sector is grave and businesses are now at risk of administration due to the impact of the virus, trade bodies British Retail Consortium and British Property Federation wrote in a letter to the government on Friday.
The letter proposed a Furloughed Space Grant Scheme (FSGS) that would mirror similar schemes being introduced in other European countries, with the state supporting the fixed costs of businesses that have experienced dramatic falls in turnover due to the coronavirus outbreak.
8. Grupo DIA Announces Community Support Project
Spain's Grupo DIA has launched ‘DIAContribuye2020’, a project aimed at mitigating the negative consequences of the COVID-19 crisis on the communities across the four countries in which it operates: Spain, Portugal, Argentina and Brazil.
Throughout 2020, the company will actively support vulnerable social groups through a range of local initiatives, with a special focus on those most affected by the COVID-19 pandemic, it said.
https://www.esmmagazine.com/coronavirus/grupo-dia-announces-community-support-project-96399
9. Asda and M&S introduce volunteer shopping cards
Asda and Marks & Spencer (M&S) have launched volunteer shopping cards to enable elderly, vulnerable and self-isolating people to have their shopping collected by volunteers safely and securely.
The initiative means that transactions can be made by a volunteer on behalf of someone else without the need for cash or bank cards to be exchanged. This reduces the risk of infection occurring between the parties as well removing opportunities for fraud.
For both Asda and M&S, the e-card can be brought online and loaded with as much money as the purchaser wants. It can then either be emailed to the volunteer or printed out and left in a safe location for them to collect. The card can then be used contactlessly in store using a barcode, before finally, the volunteer can leave the shopping in a safe location to be collected by the purchaser.
https://www.essentialretail.com/news/asda-ms-volunteer-shopping-cards/
10. For grocery workers, the need for mental health care may outlast coronavirus pandemic
Hourly retail workers at grocery stores and pharmacies have been on the front lines of the pandemic, as they check out customers and stock shelves.
Some grocery workers have died and thousands of others have gotten sick.
Vaile Wright, director of clinical research and quality for the American Psychological Association, said she hopes the pandemic inspires more employers to expand access to therapy by phone or video.
Still, retailers are not shy about innovations
11. Amazon prepping to launch super-fast grocery delivery service in UK: the Grocer
E-commerce giant Amazon.com Inc is preparing to launch an ultra-fast grocery delivery service in the UK, trade magazine the Grocer reported on Friday, citing suppliers.
The service, Ultra Fast Fresh, involves retrofitting nine existing depots within the country to handle fresh produce and fulfill grocery orders within hours, the magazine reported.
The project could involve making Amazon Fresh, Amazon’s grocery delivery service, a free benefit of Prime in the UK instead of the monthly add-on fee or per-order charge it currently charges, the weekly magazine reported.
Amazon declined to comment.
The move comes as UK’s dominant online grocer, Ocado (OCDO.L), has been struggling to open additional grocery delivery slots for consumers due to unprecedented demand caused by COVID-19 related lockdowns.
Amazon’s new service is aimed at bringing rapid grocery delivery to almost 40% of UK households by the end of the year, the suppliers briefed on the program told The Grocer. Their products will be picked and packed at the refitted Amazon depots.
12. Schwarz Group Lidl to operate 200 Polish stores for 24 hours
Schwarz Group Lidl Poland has decided that 200 chain stores will operate in 24-hours a day. At the same time, over 520 Lidl retail outlets in Poland will operate from 6:00 to 24:00. The online store Lidl-sklep.pl is also available to customers.
https://www.wiadomoscihandlowe.pl/artykuly/200-sklepow-sieci-lidl-bedzie-nadal-dzialalo-przez,62845
13. SPAR stores introduce 'Scan, Pay, Go' app in Northern Ireland
Spar and Eurospar convenience stores in Northern Ireland have introduced a ‘Scan, Pay, Go’ mobile app which allows consumers to check items are in stock before they leave their homes and then self-serve in the shop.
Henderson Technology – an arm of the multi-purpose Henderson Group – has introduced the mobile retail technology, from Ubamarket, to three Henderson Group Spar and Eurospar shops.
https://www.essentialretail.com/news/spar-scan-pay-go-app/
14. Asda’s Scan & Go app now available in all stores
Asda has extended the roll out of its mobile Scan & Go app to all 581 stores to improve customer and colleague safety during the coronavirus pandemic.
The grocer had been in the process of a staged roll out of the mobile app, reaching just over 60% of its UK footprint. The remaining 223 stores are now operational with the Scan & Go, which allows customers to scan and pack their groceries as they shop and pay on their own mobile device. Customers can also keep an eye on their spending as they shop, helping shoppers stick to a grocery budget.
https://www.essentialretail.com/news/covid19-asda-scan-go-app/
15. Aldi UK starts selling groceries online
Aldi UK has started selling groceries online for the first time, offering ï¿¡24.99 food boxes for people who are self-isolating at home or who are too vulnerable to make it to a store during the Covid-19 coronavirus crisis.
The parcels will contain 22 products, including tinned soup, rice and pasta. Each parcel will also provide antibacterial handwash and a four-pack of toilet roll, covering many of the essential items that have been particularly in demand since the pandemic took hold in the UK.
Parcels will be limited to one per customer order, and Aldi is promising to deliver within three to ten days. The retailer said it will try to prioritise food parcel orders, aiming to deliver as fast as possible.
The approximate cost of the new food parcels, which also include a chocolate bar, peanuts, instant coffee, and multiple other items, is ï¿¡19.97 at the time of writing. Aldi said it has placed a ï¿¡5.02 pick, pack and dispatch/delivery charge on each order.
https://www.essentialretail.com/news/aldi-uk-starts-selling-groceries/
16. Grupo éxito introduces click & collect service in Colombia
Grupo éxito in Colombia has launched a "Buy & Collect" service across its éxito, éxito express, Carulla, Super Inter and Surtimax brands - enabling customers to buy online or via phone and pick up orders at stores.
The order is delivered to the customer directly in car trunks, motorcycle or bicycle basket and to pedestrians by staff equipped with all the protection and hygiene measures
https://www.peru-retail.com/grupo-exito-adapta-su-formato-y-lanza-servicio-compra-y-recoge/
17. Morrisons partners with Deliveroo to deliver essential items
Morrisons has partnered with Deliveroo to enable the rapid supply of essential items to consumers. The initiative aims to help quarantined families and those who are facing difficulties in ordering online speedy deliveries from supermarkets due to unprecedented levels of demand.
https://www.essentialretail.com/news/morrisons-deliveroo-deliver/
18. Noon.com launches virtual store for Dubai Mall
The Dubai Mall’s online store is now live on Noon.com with a wide variety of brands now available for delivery in the UAE. The virtual store is meant to serve as an ecommerce solution to support the mall’s tenants in the wake of business challenges related to the Covid-19 crisis.
The store will also allow customers to shop online for goods available at some of the outlets over 1,300 stores. Currently, 24 brands of various kinds are available, including Jumbo, Reebok Classics, Steve Madden, Ted Baker, GO Sports and Dyson. More stores are expected to be added on a daily basis and tenants at Dubai Mall are being encouraged to sign up.
https://www.arabianbusiness.com/retail/445072-dubai-mall-virtual-store-live-on-nooncom
19. Auchan Spain launches sale via WhatsApp
Auchan Spain has launched a new service to boost sales during the confinement period. It's called WhatsApp Bussines and the idea is to use the messaging service to connect buyers with sellers in their stores, whether through chat, voice calls or video calls. The service is limited at the moment to two categories of products, technology and household appliances.
Alcampo will have this offer operational for now in around twenty hypermarkets in the Community of Madrid and Catalonia. Auchan promises delivery times to the customer's address in no more than 72 hours. Payment will be made upon receipt of the order and always by debit or credit card.
https://www.expansion.com/empresas/distribucion/2020/04/16/5e982e33e5fdea4d618b45f7.html
20. Tesco to launch NHS Nightingale pop-up stores
Tesco has said work has begun on its first NHS (National Health Service) Nightingale Hospital pop-up store at the NEC in Birmingham.
The pop-up store aims to provide NHS staff with 24-hour access to food and household goods. CEO, Dave Lewis, explained to customers in an email that construction at the NEC pop-up started on Sunday and it aims to be open by the end of next week – “so it’s all hands on deck,†he added.
He said the supermarket is in discussions with other Nightingale hospitals to open further Tesco pop-up stores.
https://www.essentialretail.com/news/covid19-tesco-nightingale-popup/
21. Grocers are wait-listing shoppers to cope with e-commerce demand
Amazon is putting new online grocery customers in a queue, while companies like ShopRite have installed virtual lines to manage site inflow.
Depending on the day and time, shoppers who tried to visit ShopRite's website last week had a curious experience. Instead of seeing the usual links to digital coupons, store circulars and online shopping, they were piled into a virtual waiting room.
"Sorry for the wait," shoppers were told on a separate page that listed their estimated wait time. "The demand for our online grocery shopping service has increased significantly."
When Grocery Dive checked the site on the afternoon of April 8, the wait was over an hour. Access to the site was completely shut off, including information unrelated to e-commerce like store hours and locations. The experience, more than one customer pointed out on Twitter, was similar to what music and sports fans face when trying to secure in-demand tickets.
Alliances are developed in logistics to propose augmented services
22. Carrefour Spain expands Glovo delivery to Cepsa Express stores
Carrefour has extended the agreement with Glovo to Carrefour Express supermarkets located at Cepsa service stations. In a first phase, 150 Carrefour Express located at these service stations have been selected. The alliance also allows Glovo to strengthen its presence and be able to better satisfy the tastes and needs of the users of the app, a "simple and efficient" tool for consumers who make supermarket purchases online.
https://www.foodretail.es/retailers/carrefour-alianza-glovo-cepsa_0_1428757124.html
23. Dia Argentina partners with Glovo to expand delivery service
Dia and Glovo have joined forces to expand Dia's delivery service from a network of 160 Dia stores, distributed between CABA and part of Greater Buenos Aires. This will help the retail chain bring more families a wide variety of products at home and more quickly. Orders can be placed on the Glovo app from 9:30 am to 6:30 pm and there will be no item limits per delivery.
24. Casino France partners with Uber Eats to deliver food baskets
The Giant Casino and Casino Supermarkets brands have been offering two types of food baskets for home delivery for a few days, through a partnership with the Uber Eats application. This collaboration is in addition to other more or less similar initiatives forged in recent weeks between distributors and delivery specialists
Coming out from the crisis, China is witnessing a wave of substantial initiatives
25. Alibaba to invest USD28 bn in cloud services after coronavirus boosts demand
Alibaba Group will invest CNY200 billion (USD28 billion) in its cloud infrastructure over three years - a plan that follows a boom in demand for business software as the coronavirus outbreak peaked in China. The company said in a statement it will spend the funds on semiconductor and operating system development as well as building out its data center infrastructure.
While most of China’s white collar employees were working from home throughout February, the country’s dominant cloud player saw usage surge for its software, most notably DingTalk, a workplace chat app used by both businesses and schools.
26. Pinduoduo to invest USD 7 billion in rural areas in next five years
Over 240 million users have bought agricultural products on Pinduoduo last year, amounting to USD 19.3 billion in sales.
Pinduoduo will invest RMB 50 billion (USD 7.1 billion) into China’s rural areas in the next five years, since “moving agricultural products to its platform†is a key strategy for the company, Pinduouo announced on a press release on Tuesday.
https://kr-asia.com/pinduoduo-to-invest-usd-7-billion-in-rural-areas-in-next-five-years
27. As China splashes out vouchers to revive retail, many just buy necessities
China is handing out billions of yuan in shopping coupons to support retailers crushed by the COVID-19 outbreak, but the subsidies are doing little to support the kind of discretionary spending needed to revive the economy.
Instead, a big chunk of the vouchers end up spent at supermarkets on daily necessities, with little boost seen in spending on restaurants, tourism, or bigger ticket items.
As Beijing scrambles to revive consumption and get its economy back up, analysts doubt vouchers will have much effect in restoring spending.
“Lots of coupons are spent on daily necessities,†said Zhang Qidi, visiting researcher at the Center of International Finance Studies at the Central University of Finance and Economics in Beijing. “When consumers use coupons to purchase them, they could actually save the cash they’d spend otherwise.â€
28. Pinduoduo invests USD200 mn in Gome Retail
Pinduoduo has announced a strategic partnership with Gome Electrical Appliances, once the largest electronics retailer in China, in a move to make both companies more competitive in the online consumer electronics market. As part of the partnership, Pinduoduo will also subscribe to USD200 million in convertible bonds to be issued by Gome.
Pinduoduo will bring the electronics retailer’s entire product range to its platform, which includes domestic and international brands like Haier, Midea, Toshiba, and Siemens. The platform will also integrate Gome’s logistics, delivery, and assembly services in its offerings, and will work with Gome to upgrade its supply chain to better meet customer needs and preferences.
https://kr-asia.com/pinduoduo-partners-with-gome-former-largest-electronics-retailer-in-china
And last but not least…
29. Amazon invests USD10 million in forest conservation
As part of Amazon's Climate Pledge, a commitment to fight climate change, the group also announced last year a $100 million investment in forest conservation.
The money is to help preserve and restore the forests of the northeastern United States and contribute to making the group carbon neutral by 2040.
30. Walmart Vudu to be acquired by NBCUniversal Fandango
NBCUniversal’s Fandango division acquired Vudu, the digital movie and TV unit of Walmart. Founded in 2004 and acquired by Walmart in 2010 for USD100 million, Vudu offers about 10,000 movie and TV titles through a free streaming service. It also offers some 150,000 titles for rent or purchase, including new releases.
Terms of the deal were not disclosed. Comcast and NBCU had been reported to be in talks earlier this year to acquire Vudu a deal that gives the company another streaming outlet as it rolls out Peacock, which just went live last week for Comcast subscribers.
31. The Death of the Department Store: ‘Very Few Are Likely to Survive’
Neiman Marcus Group is preparing to seek bankruptcy protection as soon as this week, becoming the first major U.S. department store operator to succumb to the economic fallout from the coronavirus outbreak, people familiar with the matter said.