April Retail Heat Map and Clickbait Clap-Back

Walmart’s Windy City wind-down and portfolio purges, the real story on retail theft, Bed Bath & Beyond going bust, retail returns resets, “free” shipping surges through paid loyalty programs, convenience as a sales gateway, the power of diversification and more…It’s been a newsy couple of weeks in retail to say the least! In this lightning-round episode, Carol claps back at the clickbait and sets the record straight on retail’s buzziest stories.

You’ll learn:

·       How retailers’ latest returns schemes might (finally) make the math work.

·       Why shipping perks are a gateway drug, but only for highly-diversified retailers.

·       How crime is crashing retailers’ big city dreams, even as digital makes up the difference.

·       Why category killing has gone from brilliant to brutal for retailers like Bed Bath & Beyond, Party City, and David’s Bridal.

KEY TAKEAWAYS

Target’s curbside returns are an extension of its same-day pickup. Tying returns into click-and-collect will encourage shoppers to keep shopping. Just as with gift cards, shoppers often look at returns as money already spent and have no problem spending cash generated from a return, and more, on additional merchandise.

“Free shipping” through loyalty programs isn’t for everyone. It isn’t just a literal calculation of the actual cost of shipping, it’s a gateway to retailer’s platforms. Shoppers might place an order for pickup next time or go on to book a telehealth visit or buy something from a third-party marketplace seller.

Shipping perks tied into loyalty and membership programs make a lot more sense for highly-diversified retailers. Narrowly-focused retailers and category killers will have a much harder time making the math work.

Walmart’s divestiture of a handful of niche brands isn’t about failure, it’s about focus. A new world of opportunity beckons for Walmart, particularly non-product businesses. Not everything is meant to last forever.