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Amazon Quietly Builds Grocery Chain During Pandemic, Adidas to Boost Ecommerce, Recycled Gear in 5-year Plan and How Big Retail Chains Fared Online in 2020

Groceries

Amazon Quietly Builds Grocery Chain During Pandemic

As many businesses struggled to survive the pandemic, Amazon.com Inc. was quietly building a national grocery chain. The first Amazon Fresh store opened to the public in Los Angeles in September. Store number 11 opened Thursday, and Amazon is working on at least 28 more, from Philadelphia to the Sacramento suburbs. The company is also testing the “Just Walk Out” cashierless shopping technology created for its Go convenience stores at an Amazon Fresh location in Illinois. More than a decade after it started selling groceries, Amazon has a tiny sliver of the $900 billion U.S. grocery market and has watched traditional chains finally start figuring out how to sell food online. Amazon Fresh, industry watchers say, is a way for the company to become even stickier with devoted Prime members, as well as appeal to a broad cross-section of America—from lower-income shoppers who frequent discounters like Walmart Inc. to wealthier customers looking to pick up online orders.


What stood out to us? Very stealthy execution.


Adidas

Adidas to Boost Ecommerce, Recycled Gear in 5-year Plan

Adidas AG is targeting sales growth of as much as 10% annually through 2025 as it doubles down on ecommerce and sustainable materials. The German sportswear maker forecast a surge in online sales and the steady build-out of shoes and apparel made from recycled materials to help push up profit by as much as 18% a year. The company also expects mid-teens percentage growth in products for women. The shares rose as much as 8.6% in Frankfurt Wednesday. Adidas’s new five-year strategy, called “Own the Game”, is the first concocted under CEO Kasper Rorsted. He has won praise since taking the helm in 2016 for streamlining operations amid a prolonged boom in retro footwear, which drove the shoemaker’s shares higher before the pandemic.

What stood out to us? All Day I Dream About Sustainability. And ecommerce.


Omnichannel

How Big Retail Chains Fared Online in 2020

A pandemic-ridden year pushed retailers with fleets of stores to lean on ecommerce. Consumers avoided crowded, public spaces and shifted buying habits, turning to digital to shop. Shoppers used retailers’ omnichannel services more than ever last year. For example, 35% of U.S. online shoppers picked up an order curbside in the past six months, up from 13% this time last year, according to 2021 and 2020 Digital Commerce 360 and Bizrate Insights surveys of  1,052 and 1,000 shoppers, respectively. Therefore, while online sales jumped for most retail chains, stores remained an important factor last year, particularly in how retailers fulfilled online orders. Below are some metrics:

  • Best Buy Co. Inc.’s ecommerce grows 144%
  • The Home Depot Co.’s online sales jump 86%
  • Lowe’s Cos.’ ecommerce totaled $8.7 billion
  • Kohl’s Corp.’s digital sales accounted for 40% of all sales
  • Gap Inc.’s ecommerce represented 45% of total revenue
  • Nordstrom Inc.’s digital sales increased 17.4%


What stood out to us? Winners and losers.


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