Good afternoon,

Here’s the headlines for this week: 13 December 2024

ECOMMERCE

🖥️ Cyber Monday Hits Record $13.3 Billion in Online Spending with Majority of Sales Driven by Mobile

• Cyber Monday online sales hit a record $13.3 billion, growing 7.3% YoY, with 57% of sales ($7.6 billion) driven by mobile, marking a 13.3% YoY increase.
• Retail site traffic from AI-powered chat bots surged 1,950% YoY, while social media influencers drove 20.3% of Cyber Monday revenue, up 6.8% YoY.
• Cyber Week spending reached $41.1 billion (+8.2% YoY), with steep discounts boosting high-ticket purchases and top categories like electronics, apparel, and toys driving season-to-date growth (+9.0% YoY).

🏗️ South Jersey’s warehousing boom is still hot. But it could be slowing.

• Since 2020, over 5.1 million square feet of warehouse space has been built, with an additional 2.1 million under construction and 5.3 million proposed. However, experts suggest the development boom may soon slow as the region nears capacity.
• The warehousing sector is experiencing excess capacity, rising vacancies, and falling rents. Major players like Amazon have scaled back operations, while data from Prologis indicates new construction is at its lowest since 2017.
• Long-term demand for warehouses remains tied to the evolution of e-commerce logistics. While investments in automation and technology could shape the next phase, there are concerns Salem County may face a glut of unused facilities, similar to past trends in suburban office parks

CONSUMERS

🛍️ Gen Z to the rescue? How malls are winning over a generation of in-person shoppers

• Gen Z shoppers visit malls as frequently as baby boomers, driven by preferences for instant gratification, social interaction and trying items in person, avoiding the hassle of online returns.
• Malls and retailers are adapting to Gen Z's desire for social media-worthy moments with features like selfie mirrors, pop-up events, and interactive installations to enhance the shopping experience.
• Retailers like Abercrombie & Princess Polly are investing in physical stores to meet Gen Z's expectations of a seamless blend between online and offline shopping, while also tapping into their nostalgic and social habits.

TECH

🤳 TikTok Shop Hits $100M In Black Friday Sales

• TikTok Shop achieved over $100 million in Black Friday sales, tripling year-over-year performance, with a 165% increase in shoppers compared to 2023. Small and medium-sized businesses accounted for a third of purchases during the three-week holiday campaign.
• Popular categories included makeup, skincare, apparel, fragrances, and kitchen appliances, with brands like Crocs, Fenty Beauty, and Estee Lauder leading sales. Live shopping drew significant attention, with standout events like Nicki Minaj's record-breaking livestream garnering 172 million viewers.
• TikTok's holiday campaign reflects growing interest in live shopping among Western consumers, signalling a potential shift toward adopting ecommerce formats popular in Asia.

RETAILERS

💸 Amazon is the latest Big Tech company to donate $1mn to Trump fund

• Amazon has donated $1 million to Donald Trump’s inauguration fund, following similar contributions by other Big Tech firms like Meta, as these companies seek to improve relations with the president-elect.
• Jeff Bezos, Sundar Pichai, and Mark Zuckerberg are engaging with Trump directly, with Bezos reportedly planning a visit to Mar-a-Lago, highlighting efforts to navigate policy pressures on antitrust, AI and trade.
• Alongside the donation, Amazon will stream Trump’s inauguration on Prime Video, a symbolic move amid its historical tensions with Trump over taxes and USPS pricing, and its current regulatory challenges under the Biden administration.

🤖 Jeff Bezos returns to Amazon’s frontlines with a focus on AI

• Jeff Bezos has re-committed to Amazon, dedicating 95% of his time to advancing AI, as the company develops over 1,000 internal AI applications.
• Amazon is building a supercomputer in partnership with Anthropic to power a multimodal AI model, positioning itself to compete with Google, Microsoft, and OpenAI.
• Bezos’s increased involvement comes as Amazon invests heavily in AI infrastructure, aiming to integrate AI across its operations and remain competitive in the evolving tech landscape.

🏬 Poor in-store experiences are losing retailers billions: survey

• A Forsta study found that 48% of negative reviews stemmed from issues like long queues and unhelpful service, contributing to annual losses of $262 billion in revenue.
• 74% of US adults reported leaving stores without making purchases after a bad experience, highlighting the urgency for retailers to address in-store shortcomings.
• While online sales surged, in-store sales saw minimal growth. Forsta’s CEO emphasizes the need to improve in-store environments, citing Walmart’s adoption of AI tools to enhance service as an example.

🔒 Why Joel Bines says locked display cases are ‘the single most customer unfriendly’ retail strategy

• Joel Bines argues that locked display cases deter customers, with most opting not to buy the product or shop elsewhere. This strategy is customer-unfriendly and risks driving business away.
• Bines suggests alternatives like app-controlled cases, limited stock on shelves, or more frequent restocking to minimize losses without creating friction for shoppers.
• Hiring more visible associates to enhance customer service and deter theft passively is Bines' preferred solution, as it elevates the shopping experience and fosters loyalty.

🏛️ Walmart CEO says retailer is prepared to ‘navigate’ Trump policy changes

• Walmart CEO Doug McMillon expressed confidence in the company’s ability to quickly adapt to potential policy changes under the new Trump administration, emphasising its flexibility and depth of experience during a fireside chat at the 2024 Morgan Stanley Global Consumer and Retail Conference.
• While McMillon refrained from speculating on specific policies, he highlighted Walmart’s focus on staying empathetic to customers and associates amid a volatile environment, as industry concerns grow over the potential economic impact of proposed tariffs.

ADVERTISING

📺 Global Ad Revenue Cracks The $1 Trillion Dollar Mark In 2024

• The advertising industry is set to surpass $1 trillion in revenue in 2024, driven by digital platforms like Google, Meta, and ByteDance, which will account for over 81% of revenue by 2025.
• Retail media ad revenue is projected to outpace TV for the first time, growing 13.8% to $176.9 billion in 2025, with the Asia-Pacific region leading the charge, particularly China.
• AI tools are reshaping ad strategies, with major platforms investing heavily in proprietary AI. Meanwhile, streaming TV ad revenue is set to grow rapidly, projected to overtake linear TV in the U.S. by 2029.

See you next week,

The ChannelSight Team

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