Hey there, did you watch the Super Bowl this weekend? 🏈
Your order this week:
Apple launches virtual cards
Temu’s aggressive $21,000,000 Super Bowl ad spend
Sporting goods sales decline by 7.7% in January (YoY)
Online grocery sales show mixed results
Shopify vs 10Web for AI glory
Apple Cash introduce virtual card numbers for online shopping
Apple Cash in iOS 17.4 beta may introduce a “virtual card number” for online shopping where Apple Pay isn’t an option, reported by a reddit user. This feature offers a unique security code for each transaction, accessible via Safari’s Autofill.
During setup, Apple Cash users are prompted to create a “virtual card number.” Once established, users can access it through the settings menu, displaying the card number, expiration date, and security code. It’s distinct from the one used for Apple Pay transactions and can be modified.
Similar to a debit card, Apple Cash facilitates money transfers via Apple Pay and Messages, allowing funds to be stored and linked to bank accounts or other debit cards. Cashback earnings from Apple Pay are credited to Apple Cash and can be used to settle Apple Pay balances.
Previously operating on the Discover Network, Apple Cash transitioned to Visa in 2022. With no card number until now, online use was limited.
However, the virtual card number may enable Apple Cash payments on sites not accepting Apple Pay, addressing the 15 percent of retailers still without the service. The feature is in beta for iOS 17.4, slated for March release.
Temu’s aggressive $21,000,000 Super Bowl ad spend
Temu, seized attention post-Super Bowl with its bold advertising campaign, sparking a surge of online interest. During the game, they aired three commercials, striving to reignite its presence in the American market amidst declining user engagement and sales, per Bloomberg.
A 30-second Super Bowl slot commanded a hefty $7 million fee. Temu’s ad featured animated characters navigating its platform, urging viewers to “shop like a billionaire” with everyday items like $10 toasters and $6 skateboards.
Data from Second Measure indicated a 12.5% sales drop in December and a 4.8% decline in January among US consumers. A Morgan Stanley survey revealed a third of Temu users plan to reduce app usage.
Despite challenges, Temu’s ads sparked renewed interest, with Google Trends showing a surge in searches and their app climbing to second place among the most downloaded free apps for Apple devices post-Super Bowl, per USA Today.
Moreover, the campaign corrected Temu’s pronunciation, emphasizing “teh-moo” over previous “tee-moo.“
Sporting goods sales decline by 7.7% in January (YoY)
In January, consumer spending on sporting goods saw a significant decline of 7.7% compared to the previous year, as reported by Seeking Alpha citing Bank of America’s card data.
Both online and brick-and-mortar sales in this category dropped, with online purchases down by 6.8% and physical store sales decreasing by 8.4%. This downward trend follows a similar 7.7% decrease in sporting goods spending observed in December.
Bank of America’s sector data has historically correlated closely with same-store sales figures of sporting goods retailers, with Academy Sports and Outdoors showing an 89% correlation rate and Dick’s Sporting Goods at 81% since April 2014.
Despite the overall decline, Dick’s Sporting Goods achieved record sales in the third quarter, totaling $3.04 billion, a 2.8% increase year over year. Comparable store sales also rose by 1.7%, attributed to higher transaction volumes and average ticket prices.
Following the positive third-quarter results, Dick’s Sporting Goods adjusted its 2023 comparable store sales outlook, anticipating a range between positive 0.5% to positive 2%. The NRF reported December’s retail sales excluding automobiles and gasoline, showing a 0.44% seasonally adjusted month-over-month rise and a 3.07% unadjusted year-over-year increase.
Online grocery sales show mixed results
In January 2024, online grocery sales in the US saw a modest 2% year-over-year growth, according to the Brick Meets Click and Mercatus Grocery Shopping Survey.
However, supermarkets experienced a notable decline of over 5% in monthly active users, coupled with a drop in average order numbers.
The survey, conducted with 1,745 respondents, revealed a rising trend in households purchasing groceries online. Despite this, there was a downward trajectory in order frequency and average order value (AOV) compared to January 2023.
Ship-to-home online grocery sales notably surged by 7.8%, reaching $1.5 billion, while delivery remained stagnant at $3 billion and pickup decreased by 1.9% to $4.0 billion. Ship-to-home experienced a substantial increase in order volume and a 7% AOV rise.
Walmart and other mass merchants emerged as top performers, expanding their base of monthly active users by almost 10% and boosting AOV. Conversely, supermarkets witnessed a decline in monthly active users and order frequency, indicative of evolving consumer behavior and economic factors influencing spending patterns.
Shopify vs 10Web for AI glory
In eCommerce, speed is key. Projections from Precedence Research suggest that by 2032, the global eCommerce industry could surge to USD $57.22 trillion, driven by a robust CAGR of 15%. With Asia Pacific commanding over 57% of the revenue share, the digital marketplace is witnessing a seismic shift.
Forbes Research forecasts that by 2026, nearly 25% of retail sales will stem from eCommerce, prompting merchants to embrace digital platforms like Shopify. However, the spotlight is now on 100% AI-driven eCommerce companies like 10Web, pioneers in leveraging opensource and generative AI to transform the industry.
With over 26,000 paying customers and 1.2 million websites created, 10Web revolutionizes website creation in just 10 minutes, a quantum leap from the standard two weeks. Harnessing the power of AI, 10Web automates website creation, optimization, and management tenfold faster than its counterparts, democratizing access to cutting-edge technology.
As AI reshapes the digital landscape, eCommerce giants like Shopify may seek to acquire these innovative platforms sooner, as the wave of generative AI solutions promises to disrupt the market by delivering unprecedented value at lightning speed.
Signing off,
The Merchant @CartHustle