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Fenwick Faces Seventh Year of Losses

Gen Z Shoppers Value Trust Over Price

Agility Retail Group Focuses on Elevating In-Store Experiences

Pickleball Expands into Streaming with QVC Partnership

Walmart and Amazon Boost AI for Personalized Shopping

ECOMMERCE RETAIL

Fenwick Faces Seventh Year of Losses

The family-owned Fenwick department store chain has reported its seventh consecutive year of losses, following the closure of its iconic Bond Street store in February. Sales dropped 3% to £299 million for the year ending January 2024, while losses were nearly halved to £38 million.

Despite ongoing financial struggles, shareholders received a £3 million dividend, similar to the prior year. The company cited “challenging trading conditions” due to growing competition from online retailers and economic pressures like rising energy costs and interest rates.

Founded in 1882 in Newcastle, Fenwick has shifted its focus to its remaining eight stores, including a £40 million investment in the flagship Newcastle location, where it unveiled a new Beauty Hall and opened new dining venues.

The retailer is also searching for its third CEO since 2018, after the planned appointment of former Harrods executive Nigel Blow was canceled due to controversy linked to his time at the Knightsbridge store.

SPONSORED BY OMNISEND

Black Friday without Panic Thursday

As exciting as Black Friday is, the problem is that everyone is doing it.

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ECOMMERCE TRENDS

Gen Z Shoppers Value Trust Over Price in Online Shopping

As younger consumers reshape the retail landscape, understanding their preferences is key for brands striving to stay competitive. A PYMNTS Intelligence report, in collaboration with Adobe, reveals Generation Z’s distinct online shopping behavior, emphasizing the importance of trust over price.

According to the report, 43% of Gen Z shoppers prefer purchasing directly from brands, compared to older generations who prioritize price and favor online marketplaces. For 15% of Gen Z consumers, trust is the main reason they choose brand websites over third-party platforms. This contrasts with baby boomers and Gen X, who often opt for competitive pricing on retailer sites.

However, online marketplaces still hold an edge in features, with 48% of consumers citing better selection, free shipping, and multiple payment options. As convenience drives online shopping, free shipping and easy checkout remain critical, with 66% of consumers considering free shipping essential to loyalty, and 50% valuing a smooth checkout experience.

Brands aiming to capture Gen Z’s loyalty must focus on building trust while enhancing convenience and features to rival marketplaces. For those that succeed, the potential market growth is significant, as Gen Z’s retail spending could reach $72 billion.

ECOMMERCE RETAIL

Agility Retail Group Focuses on Elevating In-Store Experiences

As consumer preferences shift, retailers are prioritizing the in-store experience to compete with the convenience of online shopping. DGS Retail’s acquisition of SMS Display Group, now rebranded as Agility Retail Group, highlights this trend. By focusing on visual merchandising and store design solutions, Agility aims to help brick-and-mortar retailers address evolving customer needs.

“We’re not widget salespeople,” said Agility CEO Peter Stevens. “We’re solution providers working to build long-term partnerships with retailers.”

A key part of Agility’s approach is collaboration, especially in developing new store designs. Agility has worked closely with TJX Companies, creating prototypes to refine store layouts based on both retailer vision and consumer preferences. This iterative process helps identify tailored solutions for each retailer’s challenges.

Stevens also emphasized the balance between store design and customer behavior. Strategies like placing essential items at the back of the store or implementing single queue checkout systems encourage exploration while promoting sales.

As retailers navigate the delicate balance between self-service and personalized checkout, Stevens noted that understanding consumer preferences remains essential for success in the evolving retail landscape.

ECOMMERCE TRENDS

Pickleball Expands into Streaming with QVC Partnership

Pickleball’s rapid rise has moved beyond the courts and into the digital space. QVC, the shopping network, has partnered with USA Pickleball to bring the 2024 USA Pickleball National Championships to its streaming platforms. This multi-year deal gives QVC exclusive broadcasting and retailing rights, allowing viewers to watch the games and buy related products directly on QVC.com.

The move supports QVC’s goal of driving engagement with its core audience of Gen X and baby boomer women, a demographic increasingly drawn to pickleball. “We’re always looking to support women 50+, and pickleball is quickly becoming one of the most played sports among this age group,” said Annette Dunleavy, QVC’s vice president of brand marketing.

For USA Pickleball, streaming the championships offers a faster way to expand the sport’s reach. CEO Mike Nealy emphasized that showcasing pickleball globally will boost its growth.

Pickleball’s popularity surged by 52% between 2022 and 2023, according to the Sports & Fitness Industry Association. But this rise has also led to tension with tennis enthusiasts, as courts are being repurposed for pickleball.

From streaming partnerships to snacks like Pringles’ Dill Pickle flavor, it’s clear pickles and pickleball are having a big year.

ECOMMERCE DIGITAL EXPERIENCES

Walmart and Amazon Boost AI for Personalized Shopping Experiences

Walmart and Amazon are intensifying their use of generative AI (GenAI) to enhance online shopping. On Oct. 9, Walmart announced its plan to leverage AI and augmented reality to create more immersive retail experiences. “A standard search bar is no longer the fastest path to purchase,” said Suresh Kumar, Walmart’s global chief technology officer.

Walmart is developing large language models for retail and plans to launch personalized homepages for U.S. shoppers by 2026, improving its AI-powered customer support chatbot.

Amazon is also expanding its AI capabilities with AI Shopping Guides on its U.S. apps and mobile site, simplifying the research process by compiling key information for over 100 product categories. “Guides help you find the right product for your needs quickly,” wrote Daniel Lloyd, Amazon’s vice president of personalization.

However, consumers have mixed feelings about AI. A PYMNTS Intelligence study found 53% of consumers are concerned about AI misuse, though 85% still want personalized shopping experiences.

With both retailers advancing their AI efforts, generative AI is set to play a central role in shaping the future of eCommerce, catering to evolving consumer demands for customized shopping.

Signing off,

The Merchant @CartHustle