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One more sign of the retail apocalypse: store aisles crowded with boxes

16 December 2024 at 01:33
Boxes taking over an aisle

iStock; Rebecca Zisser/BI

Robyn gets a kick out of being able to say she's worked at both the "good" and the "bad" Dollar Trees in her West Texas town. The stores may be only a few miles from each other geographically, but qualitywise, there's an enormous gulf between them. Shocked customers who have been to both locations remark on the stark differences "all the time," she said. The good store is clean β€” the floors are swept, aisles open, merchandise in its place. At the bad one, merchandise is scattered all over the place, and unpacked boxes fill the aisles. There's supposed to be a clear, wide pathway from the break room to an exit in case of an emergency, like a fire or a shooting. Instead, employees at the bad store have to turn sideways and try to shuffle through an 8-inch-wide gap between boxes piled high in the hallways.

The factors that account for the difference sound quite small. The good store has dedicated recovery staff, whose job it is to put stuff where it goes. The bad one doesn't. The good store's manager is better at pushing for more work hours for employees, which means there are more people and time for stocking and tidying up on top of cashiering. The manager at the bad store just kind of lets anything fly. Still, Robyn, which is a pseudonym, says a lot of the blame is on corporate. She was an assistant manager in the past, and she's heard what goes on in the weekly calls. Rather than try to revive struggling stores, she said, they're left out to dry.

"They look at their trend of sales, and if a store is underperforming, then instead of maybe investing a little bit more hours there to try to pick it back up, they're like, 'Oh, well, it's not worth investing in this store' because it is not making us whatever amount of money they think it should be making. It makes the problem worse," she said. Dollar Tree did not respond to a request for comment for this story.

Most people have probably had experience shopping in their own version of Robyn's "bad" store. They've walked into a local dollar store or pharmacy or department store and wondered whether there's been an explosion. Aisles are filled with unopened boxes, stacks of bins, and full dollies. Merchandise is strewn about. To get to the item on the shelf you actually want, you have to climb over a pile of crates. (If you have not had this experience, congratulations, and also, here are some TikTok videos to get at what I'm describing.) It's representative of the broader decline of the in-store retail experience. Stores are slashing costs, cutting corners at every turn, and generally ignoring the consequences.

"When you cut costs, there's a very immediate and very visible impact to the bottom line. It's something that retailers do, and they're very happy to do, and investors are very comfortable with them doing it," Neil Saunders, a managing director at the retail consultancy GlobalData, said. Yes, they'll lose customers in the process, sales will fall, and loyalty will dissipate. But that's all subtle and harder to trace. "They happen more slowly and steadily over a period of time, and they build up into a bigger problem," Saunders added.

What that looks like on the ground is stores filled to the brim as boxes pile up. At Robyn's Dollar Tree stores, they can't call the distribution center and ask it to stop shipping, either, as everything continues to accumulate if they don't have time to put it away. "The truck is going to show up whether you have room for it or not," she said.


The boxes-everywhere scenario used to be largely a dollar- or discount-store problem, but now the perilous piles have spread to other types of retailers. In other words, it's not just Dollar General anymore but also Target and Duane Reade. Much of the explanation is staffing, or rather, the lack of it. Many stores simply do not have enough people working to do everything necessary, between helping customers and stocking shelves and cleaning and fulfilling pickup and e-commerce orders. It's often the case that just one or two people are on a shift at a time, and checking customers out at the register takes precedence, meaning everything else falls by the wayside.

Most stores are designed to have the vast majority of merchandise out on the floor.

Many retail chains had to raise wages to compete for workers over the past several years, thanks to the pandemic-induced labor shortage and as major retailers such as Amazon and Walmart upped their pay. One way some retailers have compensated is by reducing staffing. Maybe they now pay their workers $15 an hour instead of $10, but where three people used to work a certain shift, there are now two.

Adding to the staffing problems is the simple lack of space. To keep their footprints small and their rent, in turn, low, many stores don't have much backroom area for storage. Long gone are the days of loading docks where stuff could sit until it was ready to be put out, said Jason Goldberg, the chief commerce strategy officer at Publicis Groupe, a global marketing firm. "Most stores are designed to have the vast majority of merchandise out on the floor," he said.

Essentially, this is an inventory issue and a labor issue. There's no stockroom for keeping products stowed away and nobody to unpack them when they arrive. Skeleton crews are doing their best to keep up, but they're constantly being squeezed. Shipping schedules are unpredictable. Customers are demanding. And the worse the job becomes β€” because the pay is low, because it's hard to get shifts β€” the more people quit, extending the cycle of doom.

That's what's happening at the Walgreens where Stephanie has worked in Florida for more than a decade. When she started, there would be two cashiers, someone in photo, someone else in beauty, and two shift leads. They'd close the store with four or five people. Now when she's on, it's usually just her and another person, and they have to frantically try to get bins unloaded and put up sales tags all while working the register. They'll leave rolling carts around the store during the day to get to as they can, which is usually at the end of the shift. Bins can't be left out overnight. It's not a disaster zone β€” luckily, they do have some decent storage space, and the manager runs a tight ship β€” but it's not perfect, either.

"They basically cut a lot of positions, and now they work as minimum a staff as they can, and even with that, they're telling us, 'You're over budget, we've got to cut more hours,'" Stephanie, also a pseudonym, said. She does DoorDash and Instacart on the side, so she also gets to experience the customer end of the equation when she runs to the dollar store to pick up orders, which is much worse, boxes-in-aisles-wise, than her Walgreens. "It's not even their fault. They have one worker on all the time, and they expect that worker to put their merchandise away," she said.

When reached for comment about this story, a Walgreens spokesperson said that the company is "always working to improve our patient and customer experience by making it easier for our team members to do their job."

Good managers are able to do some triage, which is why one store might be pretty picked up while others are a mess. But sometimes, constraints make it so it's impossible to keep up.

"There will be some store managers that have very strong operating disciplines, and they will not allow things to get out of control," Saunders said. "And there will be some store managers that are much more lax."


As easy as it is to point the finger at retailers for dropping the ball on inventories and aisles, they're not operating in a vacuum. They're in a landscape where margins are razor thin, e-commerce is cannibalizing their business, and consumers are hypersensitive to prices. One response for big-name retailers, including Walgreens, CVS, and Target, is to shut down unprofitable locations across the country. US retailers have announced 7,185 store closures this year, according to the research and advisory firm Coresight, up by 58 from 2023. (By comparison, they've announced 5,581 store openings.) Among the stores that are staying open, retailers are super focused on maximizing their profitability, Claire Tassin, a retail and e-commerce analyst at Morning Consult, said. Staffing a store to have a pleasant customer experience isn't "necessarily in their budgets," she said. Moreover, the message many retailers are getting from consumers is that the sacrifice on experience is acceptable, as long as they're keeping their prices low, especially for retailers where value is the main proposition.

"Yes, it's annoying when there's boxes in the aisles and it feels bad and cluttered, but if it's in the name of lowering costs, that is what consumers are signaling to these brands that they want," Tassin said. "If the store's sort of primary purpose is value and convenience, that's what is going to matter most."

To be sure, there are limits. You trip over boxes in a store enough or wait endlessly for someone to unlock deodorant for you, and you'll probably give up, go somewhere else, or start looking online. For people with mobility issues, going to an overcrowded store isn't even an option. Retailers know people are shopping online, too, which is why the ones who are behind on e-commerce are trying to catch up β€” and, in some cases, why the in-store experience is even worse.

That's part of what's happening with Target, retail analysts told me. Despite the retailer's recent struggles, e-commerce has been a bright spot for it, Goldberg said. But part of the model is to use the space in the back of stores for goods that need to be shipped β€” space that previously would have been used for merchandise headed to the floor. "They need space to stage orders and pack orders and hand orders off," he said.

The setup also loads up associates' duties, Saunders added. "They pick orders for online delivery. They take them out to cars for curbside pickup. They have to man the desks where collections are made and then returns of online products are made," he said. "There's a lot more tasks that now have to be done day-to-day in the store, and it's distracted and taken time away from some of the basics like merchandising."

A Target spokesperson said the company's staffing model accounts for online fulfillment being part of how it operates its stores.

It's a nasty little cycle.

The dynamic is one of a race to the bottom that's turning into a race for survival. Retailers are stretching on pricing and staffing and quality, and eventually, something's got to give. But instead of trying to proactively make the in-store experience better, many continue to bury their heads in the sand.

"Rather than thinking, 'How can we differentiate ourselves to really attract shoppers to come to us?' They started competing head-on against online with price discounts," said Sharmila Chatterjee, a senior lecturer in marketing at the MIT Sloan School of Management. "The less you invest in in-store experience, the more the customers are turned off. So you are sort of pushing them away, to online."


Stuff spilling into aisles used to be a somewhat isolated problem, the sign of a particularly poorly run store. Increasingly, though, it's an everywhere problem. Some stores might be inspired to turn it around β€” especially after dollar stores have been hit with safety violations over blocked exits, crowded aisles, and clutter β€” but profit motive could prove a stronger incentive. Anecdotally, many consumers have noticed more piled boxes in more retailers lately, not fewer. And that's not just because it's the holidays.

Crowded walkways are a symptom of a much-bigger affliction hitting retail, which is that the business model isn't really working. Gone are the days when supercheap labor made adequate levels of store staffing easy, though I will note that Robyn makes just over $9 an hour and Stephanie about $15.50. Rents aren't going back to where they were. Consumers still do most of their shopping in person, but e-commerce is becoming more and more appealing, especially when brick and mortar is such a hassle. If it's no longer cheap or convenient to pop by the dollar store or drug store, what's the point? And there's always Walmart, which operationally doesn't seem to have this boxes-everywhere issue.

Cynthia, another pseudonymous Dollar Tree worker, is at a store that opened about a month ago in Virginia. When she started, she thought it was weird that customers kept commenting on how clean and organized the place was. "One of the biggest compliments was that we can walk through the aisles. I was like, what?" she said. It's already starting to turn β€” there's "no freaking way" she can get everything done in a shift, she said. Stuff's starting to pile up, and her coworkers are quitting because they're frustrated with the heavy workload and the lack of hours.

"Then it's more of that work falls on other people who already are burnt out and aggravated," she said. "It's a nasty little cycle."


Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.

Read the original article on Business Insider

TikTok’s e-commerce β€˜Shop’ platform launches in Spain

10 December 2024 at 07:09

TikTok’s e-commerce Shop feature is going live in Spain, the company announced on Tuesday, marking the first step of a wider European rollout. The launch indicates that TikTok parent ByteDance is speeding up the expansion of the TikTok Shop in European markets as a potential U.S. ban looms. Users in Spain will now be able […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

Amazon is officially in the online car sales business

10 December 2024 at 06:01

Amazon expanded Tuesday into online car sales with the launch of Amazon Autos, an e-commerce business that lets customers find, order, and buy new cars, trucks, and SUVs from dealerships. Amazon is kicking off the new endeavor with Hyundai in 48 U.S. cities, including Atlanta, Boston, Chicago, Los Angeles, and New York. The launch comes […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

I launched an eCommerce company with a $10,000 budget after interviewing top Amazon sellers. Here's everything I outsourced to save time, including a $250 task that was the best money I spent.

30 November 2024 at 04:14
peak pickleball
The author and her cofounder launched Peak Pickleball with a $10,000 budget.

Katie Monds

  • After years of writing about successful eCommerce entrepreneurs, I decided to start my own business.
  • A friend and I pooled $10,000 to launch a pickleball paddle company.
  • We outsourced various tasks to save time and, ultimately, improve the quality of our product.

As I've now learned firsthand, starting a business is hard β€” and takes time. A lot of time.

I didn't doubt that heading into the endeavor, but it's different when you're in it β€” when you're thinking about your brand and its voice, when you're prototyping a product, and when you start shelling out your own money.

After years of reporting on successful eCommerce entrepreneurs, I decided to try my hand at launching and selling a product. I brought a friend and former roommate on board, and in April 2024, we deposited $10,000 into a business checking account to bring our product idea β€” pickleball paddles β€” to life.

Depositing funds was the easy part. The building-the-business part has been a tedious challenge that started nearly two years ago in the living room of our Los Angeles apartment when we first began tossing product ideas around.

We both work full-time jobs and figured outsourcing certain tasks would be key. While we were willing to commit some weekday nights and weekends to our side project, we didn't want it to feel all-consuming. We also know what we're good at β€” and, perhaps more importantly, we know what we're not so good at. Creating a high-quality brand and product that we were proud of would mean hiring smart, talented people to help with the stuff we're not great at.

Here's everything we've outsourced so far to get Peak Pickleball up and running.

Product sourcing. Our product is the heart of our business β€” and we only offer one β€” so nailing the design was crucial. I'd learned from interviewing top Amazon sellers that finding a reliable supplier would be crucial.

In the early stages of the project when we were still messing around with different product ideas, we used Alibaba to connect with suppliers and start to understand manufacturing costs. There were endless suppliers to choose from who were all quick to message back and eager to work with us, but we were hesitant to proceed. The language barrier was evident and the thought of eventually sending thousands of dollars overseas to buy inventory from a supplier we'd never met was nervewracking.

peak pickleball
Prototypes arrived at the author's apartment in Los Angeles.

Kathleen Elkins

Ultimately, we chose to work with a product-sourcing company founded by eCommerce entrepreneur Joe Reeves. He's familiar with the challenges of finding a good, trustworthy supplier, having gone through the process himself when launching his wallet business. Reeves started the companyΒ 330 TradingΒ with a college friend who lives in Taipei and is on the ground communicating in person with various factories in Asia, including the one that is manufacturing our pickleball paddle and packaging.

Packaging design. We hired a freelance designer through Fiverr to help design our packaging. We had an idea of what we wanted it to look like but didn't have the skills (or bandwidth to learn the skills necessary) to execute it.

peak pickleball packaging
A Fiverr freelancer helped the Peak cofounders design the packaging.

330 Trading

Website. We also outsourced web design, which neither of us had experience with, and hired a different freelancer through Fiverr to put together a basic Shopify website. Moving forward, we'll be able to do site upkeep ourselves, but hiring someone to create a clean, compelling homepage and build out the other main pages was well worth $158.

The best $250 we spent: Outsourcing logo design

We've spent a lot of money, nearly $6,000, on startup costs. Some of those costs were unavoidable, like the $39 a month we pay for Shopify Basic, while others were more of a choice: We spent about $2,500 to get our paddle approved by USA Pickleball so that it can be used in USAP-sanctioned tournaments. We're betting on the pricey stamp of approval, which also helps legitimize our brand, paying off in the long term.

The costs that we outsourced technically weren't necessary, but they saved us time and, ultimately, improved our product.

One expense that we outsourced, in particular, feels fully worth the cost: We hired a professional graphic designer to develop our logo.

peak pickleball
A graphic designer helped develop the triple-layered "P" logo.

Katie Monds

We worked with a friend we knew well and trusted fully. It was a back-and-forth process that started with us answering five branding questions she emailed to us ahead of our first meeting:

  1. What are some adjectives to describe how you want your brand to come across? Or how you want people to feel when interacting with it?
  2. Are there a few brands that you both really admire (for messaging, logo, brand activity, etc.)?
  3. Other than on the paddle where else can you envision the logo being used/interacted with?
  4. Do you envision brand activity beyond selling paddles and the marketing efforts to support that?
  5. What are the spec sizes/requirements for branding relative to the prototype paddle specifically?

Sitting down and talking through our answers helped us nail down the identity of our brand: We are energetic, playful, and innovative β€” and our designer created a logo and color palette that represents who Peak Pickleball is.

We paid $250, and it's the best money we've spent on the business to date.

Read the original article on Business Insider

This startup wants to bring TikTok shopping into the real world

21 November 2024 at 06:10
Outlandish's new store blends TikTok Shop with brick-and-mortar retail.
Outlandish is an official TikTok Shop agency partner.

Outlandish.

  • There's a new experiential store in Los Angeles that blends livestreaming with in-person retail.
  • The space features rows of hosts selling products live on TikTok Shop.
  • The project is the brainchild of Outlandish, an e-commerce startup with roots in China.

Welcome to the TikTok-era shopping mall.

A new brick-and-mortar store from the e-commerce startup Outlandish is bringing to life the world of TikTok Shop. It sits on a busy street in Santa Monica's 3rd Street Promenade, wedged between a Sephora and a Chipotle.

Business Insider stepped inside the two-story emporium ahead of its Thursday opening. It features a first floor of branded stalls where a lineup of hosts sit in front of bright lights and product displays as they hawk their wares to a TikTok audience. On its second floor, visitors can shop for goods from those sellers, which include brands like Goli Nutrition and the electronics company Anker.

The aim of the store is to mix live online selling with in-person retail. Passersby can buy viral products, gawk at influencers or merchants as they sell on livestreams, or even join the QVC-style streams themselves. Products and sellers will rotate, as merchants can rent out space by the hour.

The store's Santa Monica location is in a tourist hot spot. Like TikTok livestreams themselves β€” which are sometimes interspersed into the app's main feed β€” it's likely to draw in visitors who didn't originally plan to watch livestream shopping.

On Monday, the yet-to-open space was already packed with live sellers chattering away. It was loud β€” there were a handful sellers simultaneously recording in one room β€” but it was still easy to become engrossed in watching a single host.

Outlandish
Allison Wise went live on Goli Nutrition's TikTok page in the Outlandish facility.

Amanda Perelli/Business Insider

It's As Seen on TV, but for the TikTok generation, William August, Outlandish's founder and CEO, told BI.

"This is 'As Seen on Livestream,'" August said. "I want people that come in to not feel like they're in a studio, but to feel like they're in a space where they can pop in the livestream. They can enjoy the experience. They can grab some free samples, and they can buy in-person. That's why our livestream rooms are not blocked off."

Electronics seller Anker is a top TikTok Shop merchant.
Electronics seller Anker is a top TikTok Shop merchant.

Amanda Perelli/Business Insider.

Outlandish's live-shopping concept taps into a broader effort among e-commerce startups, like SuperOrdinary, to make the live-selling model that exploded in China and other parts of Asia take off in the US. It's a big focus among TikTok Shop merchants who use the e-commerce platform to sell goods in videos, livestreams, and a dedicated shopping tab. TikTok itself is heavily focused on making livestream shopping successful in the US. The company recently hosted a summit for partners where it emphasized live selling.

TikTok and its owner ByteDance are aiming to recreate the success of its Chinese sister app, Douyin, which drives hundreds of billions in annual product sales. Features that are successful on Douyin often get pushed to TikTok next.

In addition to TikTok Shop, Outlandish has experience working with brands to help them sell on Douyin and other social apps.

How live selling could break through in the US

TikTok Shop is still a relatively young e-commerce platform, having launched in the US a little over a year ago. But it's gaining traction quickly as users become more acclimated to buying from a social app. Content creators on the app are now driving millions in sales in single live-selling sessions, which TikTok recommends should last a minimum of two hours.

In July, TikTok Shop's US gross sales began topping $1 billion monthly, The Information reported. Outlandish said it helped its partners earn $1.2 million in sales across 1,300 livestreams in a recent four-week window, adding up to nearly 3,000 hours of live streaming.

Live-selling studios are popping up in major cities like Los Angeles and New York. TikTok has some at its offices that it makes available to partners. Outlandish aims to expand beyond Santa Monica into additional locations in Mexico and Spain in 2025.

Outlandish isn't the only company trying to merge digital shopping with brick-and-mortar. Mall of America kicked off a livestream partnership with the e-commerce platform Popshop Live in 2020, for instance. Other TikTok Shop sellers have experimented with adding livestreaming spaces to their storefronts, such as the New York-based pre-owned luxury store What Goes Around Comes Around. And companies like Amazon have envisioned repurposing mall stores to service other e-commerce functions, such as fulfillment.

"This is a whole new industry that's just getting built in the US," August said. "Very soon, it will be a massive job market as well, with a lot of people that will come into the industry, and it'll be their job to be a live host or to be a live operator or to be a live moderator."

A view from above of the Outlandish store.
A view from above of the Outlandish selling booths.

Amanda Perelli/Business Insider.

Outlandish, which began in 2018 as a social shopping agency in China, is an official TikTok Shop partner. Many of the sellers in its Santa Monica space work with the company on other parts of their TikTok Shop strategies, such as influencer affiliate marketing. But the company also hopes to draw in local Santa Monica businesses and influencers, too.

Outlandish makes money from the space by charging management fees for its live-shopping segments. It can get a percentage cut of online sales as well. The company declined to provide information on the cost or length of its Santa Monica lease.

Its US Shop business could get upended if TikTok ends up being pulled from app stores in January, as mandated by a divest-or-ban bill passed by Congress. If that does happen, August said Outlandish's Santa Monica sellers could pivot to livestreaming on other platforms.

"If TikTok does get banned, I don't think these people are just going to stop shopping through livestreams," he said.

Read the original article on Business Insider

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