Report: Amazon tries its hand at a different kind of pop-up
Amazon is preparing for its newest physical store — and promoting its alcoholic products at the same time.
The online giant is opening a pop-up bar in Tokyo’s Ginza district. The location, which will be open for 10 days, will sell beer, wine, sake and cocktails sold on its Japanese website, as well as exclusive products and samples not yet for sale, according to Bloomberg.
An ordering system will suggest drinks, while sommeliers will offer wine advice. The pop-up bar will open on Oct. 20, the report said.
The pop-up concept coincides with Amazon’s efforts to boost its physical presence, especially in the United States. With the recent acquisition of Whole Foods, the e-retailer added more than 400 grocery stores to its physical retailing network. It also operates a growing chain of brick-and-mortar bookstores, AmazonFresh pickup stations, and cashier-free Amazon Go convenience stores operating in Seattle.
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Study: More than half of retailers ready for AI
In a move to step up their customer experiences, more retailers are embracing artificial intelligence (AI).
This was according to the third quarterly “2017 E-commerce Performance Index,” a report from SLI Systems.
According to the data, 54% of companies reported they are using or plan to add AI in the future. The largest group of these respondents (20%) expect to add AI within the next 12 months.
The most popular applications for AI — among both existing retail users and those that plan to use AI within the next 12 months — are personalized product recommendations (56%), customer service requests (41%) and chatbots (35%). Very few e-commerce professionals currently use AI for virtual reality, voice-activated apps, augmented reality or virtual buying assistants, or plan to in the next year, the study said.
Of those planning to implement AI, 13% plan to build their own technology, 60% will buy existing technology, and 27% expect to blend "build and buy.”
Beyond AI, replatforming operating infrastructures is the top initiative for 17% of respondents this quarter, followed by customer experience (CX) (16%). Inventory, logistics and fulfillment (15%) follow behind.
"This quarter replatforming edged out CX as the top priority for e-commerce,” said Carter Perez, VP sales, Americas and Australia, SLI Systems. “We're seeing retailers working to ensure their platform and search strategies are in peak shape for driving holiday site traffic and optimizing merchandising and conversion.”
The holiday season may be right around the corner, but retailers remain focused on sales for this quarter. For example, 92% of retailers are confident they will grow revenue in Q3, closely aligning with results from Q1 and Q2. A majority of retailers (87%) also expect their online revenues to increase in Q3 compared to Q3 2016.
Meanwhile, 80% expect revenue from mobile sites and apps to increase compared to the same quarter in 2016. All retailers (100%) in the hardware/home-improvement segment, and 93% in apparel, anticipate an increase.
Selling to new geographic markets experienced the largest drop, moving to 20% in Q3 from a stable 30% in the first and second quarters.
As the holiday season approaches, retailers have high hopes for brick-and-mortar. In fact, 45% estimate a rise in Q3 in-store revenue/profits compared to the same quarter last year — an improvement of 6% points from Q2.
Of the retailers that participate in holiday sales, nearly a third (31%) said the 2017 holiday shopping season will begin earlier in 2016, with 31% also citing October as the official start of the season.
Meanwhile, 77% expect an increase in holiday season revenue this year. Most forecast modest rises of up to 10%, and only 4% of anticipate aggressive increases over 30%, the study reported.
Big mall owner CBL launches a rebranding campaign
Malls are not going away entirely, but the word “mall” may be an endangered concept.
CBL Properties, one of the nation’s biggest mall operators, with 121 of them in 27 states, has announced a rebranding campaign that that reflects a new strategic direction focused on operating community gathering places, not mere shopping centers.
“The rebrand aligns our corporate vocabulary with our current strategy and vision for the future of CBL,” said Stephen Lebovitz, president and CEO. “Our properties are not just about retail or shopping.”
Lebovitz is among the group of retail property owners who look at empty Macy’s and Penney’s stores and see an opportunity to fill the holes with tenants that might bring in more rent, as well as customers.
“[The properties] are evolving through the addition of more food, entertainment, service, fitness and other new uses, and we are actively exploring adding hotels, medical, office, residential and education components,” Lebovitz said.
While CBL & Associates Properties, Inc. will remain the company’s legal name, it will now go by the name CBL Properties publically.