Shifting Dynamics in Retail Performance

As the second quarter of 2024 comes to a close, a clearer picture of retail performance is emerging. According to Saunders, the results are akin to playing a reverse card in Uno—some retailers that had been struggling are beginning to see their declines bottom out or even move into modest growth. “Best Buy, Target, Foot Locker, Peloton, Victoria’s Secret, and Gap are examples of retailers showing signs of recovery,” Saunders notes. These companies have been implementing turnaround strategies, focusing on pricing, value, and customer experience, which are beginning to pay off.

In contrast, traditional star performers like Lululemon, Ulta, and Dollar General are experiencing a slowdown. Saunders attributes this to a mix of economic dynamics and competitive forces. “Ulta has more competition, so too does Lululemon, which failed to inspire with its womenswear in Q2,” he explains. The competitive landscape has intensified, and retailers that were once market leaders are now facing challenges in maintaining their growth momentum.

The Role of Economic Factors

Economic conditions are undeniably playing a significant role in the current retail environment. High interest rates are impacting big-ticket purchases, particularly in home-related categories, which have been under significant pressure. “A sluggish housing market, combined with high interest rates, is dampening demand for home goods,” says Saunders. This trend is reflected in the performance of retailers like Dillard’s and Nordstrom, where short-term gains do not necessarily indicate long-term health. “Dillard’s reported a 4.9% decline this quarter, but when we compare their sales to 2019, they’ve actually grown by 4.4%, while Nordstrom’s growth is a mere 0.2%,” Saunders points out, emphasizing the importance of a long-term perspective.

Inflation, which had previously bolstered retail growth by inflating sales numbers, is no longer providing the same level of support. Retailers like Dollar General are finding it increasingly difficult to maintain growth as inflation’s impact wanes and competition intensifies. “Dollar General blames weaker numbers on pressures on its customers, but this has been true for a long time. The issue now is that inflation is not flattering growth as much, and there is more price competition in grocery,” Saunders explains. The pressures on consumers, particularly those in lower-income brackets, are becoming more pronounced, leading to shifts in spending behavior.

Competitive Pressures and Strategic Missteps

Increased competition is another critical factor contributing to the slowdown in retail sales. Saunders notes that “some of the traditional star performers are struggling to keep up the fast pace,” as they face stiffer competition and changing consumer preferences. Lululemon’s struggles with its womenswear line in Q2 serve as a case in point. The brand, which had previously been a market leader, is now facing challenges in maintaining its appeal amid a crowded market.

Retailers are also grappling with the consequences of strategic missteps. As Saunders warns, “Don’t always buy the narratives retailers spin.” For instance, while some retailers may blame external factors like economic pressures or changing consumer behavior for their poor performance, the reality is often more complex. “Some stores are terrible and are preventing sales and repeat visits,” Saunders states bluntly, pointing to operational inefficiencies and poor customer experiences as significant factors behind declining sales.

Long-Term Outlook and Sector-Specific Trends

Despite the current challenges, the long-term outlook for retail remains mixed, with some sectors poised for growth while others continue to struggle. Home-related categories, for instance, are likely to remain under pressure as long as the housing market stays sluggish and interest rates remain high. “Moving is an important driver of demand, and with the housing market slowing down, we’re seeing a corresponding decline in sales for home goods,” Saunders explains.

On the other hand, sectors like electronics and groceries are showing more resilience. “Retail sales showed robust performance in sectors such as electronics and groceries, with increases of 1.6% and 1% respectively in July 2024,” according to recent data. These categories are benefiting from steady consumer demand, although the overall growth rate has modestly deteriorated since Q1.

Saunders also highlights the polarization within the market, where a balance of winners and losers persists. Out of a selection of retailers analyzed, 17 are in growth, while 18 are in decline. “Growth rates have generally deteriorated since Q1, with 21 retailers showing lower growth rates than in Q1, while only 14 have higher growth rates,” Saunders notes. The average overall growth rate has dropped by a modest 0.5 percentage points since Q1, indicating that while the market is not in recession, there is a clear slowdown.

Strategic Responses to a Changing Market

Retailers are responding to these challenges in various ways, with some investing in digital transformation and e-commerce strategies to stay competitive. Phil Masiello, CEO of CrunchGrowth, suggests that “Retailers who have successfully integrated online and offline experiences are likely to see more resilient performance.” Masiello emphasizes the importance of omnichannel capabilities, personalized customer experiences, and data analytics in navigating the current retail landscape. “Sustainability and ethical practices are also becoming increasingly important to consumers, and retailers who prioritize these aspects could gain a competitive edge in the long run,” he adds.

The retail sector in 2024 is facing a complex and challenging environment. While there is no immediate sign of a recession, the modest slowdown in sales reflects broader economic conditions and intensified competition. Retailers must stay agile, focusing on long-term strategies that prioritize customer experience, operational efficiency, and innovation to navigate the fluctuations in the market successfully. As Saunders advises, “The long-term picture remains vital because quarterly results fluctuate and create noise,” underscoring the need for a strategic approach to ensure sustained growth in an increasingly competitive landscape.

E-Commerce: The Unstoppable Force in Retail

In the first half of 2024, e-commerce has grown by 7.5%, accounting for 22% of Core Retail sales—a term that excludes automobiles, gas, and restaurants. Jason Goldberg, Chief Commerce Strategy Officer at Publicis, succinctly encapsulates this trend: “E-Commerce remains the primary growth engine for US Retail.” Goldberg continues, emphasizing the significance of this growth, “E-commerce now represents 50% of all Core Retail growth. While this growth rate is slower than the pre-pandemic average of 13.5% per year, it’s clear that e-commerce is not just a temporary phenomenon.”

The sustained growth of e-commerce, even at a slower pace, is a testament to its entrenchment in consumer behavior. Goldberg points out that “E-commerce sales in 2024 are more than twice as large as in 2019, up 117% from the first six months of 2019.” This data underscores the shift in consumer shopping habits, where convenience, variety, and competitive pricing offered by online platforms have become non-negotiable expectations.

The Retail Landscape: A Tale of Two Markets

While the overall retail sector has grown by 3.1% in the first half of 2024, this seemingly modest growth masks a more complex reality—a widening gap between retail’s winners and losers. Goldberg notes, “The real story of 2024 is the widening divide between retail’s winners and losers.” This divide is stark, with the two largest US retailers, Walmart and Amazon, significantly outperforming the market.

Goldberg highlights the emergence of new players as well: “Three emerging retailers—Temu, Shein, and TikTok Marketplace—are seeing remarkable growth, leaving little room for the rest of the retail market.” These retailers have tapped into the growing demand for value-oriented products and innovative shopping experiences, capturing market share from traditional players.

This trend has profound implications for the broader retail market. As Ricardo Belmar, a top retail influencer and Director of Partner Marketing for Retail & CPG at Microsoft, observes, “Retailers need to stop thinking about how to compete with Amazon and Walmart… In my view, the question is, how will you go after the total addressable market in your customer space?” Belmar’s insight points to the need for retailers to carve out their niches, focusing on their core customers rather than attempting to compete directly with retail giants on every front.

Navigating the New Retail Reality: Strategies for Success

The key to thriving in this increasingly competitive retail environment lies in differentiation and strategic focus. As Josh Ganim, Senior Director of Client Services, asserts, “Brands need to differentiate their value props. Consumers are desperate for value, so leaning into value is key.” This focus on value, particularly in a year where overall retail volume is down, is crucial for capturing and retaining customers.

Ganim’s comments are particularly relevant in the context of the current economic climate, where inflationary pressures and economic uncertainty have made consumers more price-conscious. He adds, “Brands will have to spend more now to acquire each customer than in the past— which is counterintuitive to much of the dialogue today about ‘doing more with less.'”

Another critical factor in success is the ability to execute flawlessly across all touchpoints. Goldberg emphasizes that to succeed in 2024, “A retailer needs a vast assortment, a compelling value proposition for price-conscious consumers, and excellent execution.” This holistic approach is necessary to meet the evolving demands of consumers who expect seamless shopping experiences, whether online or offline.

Category Performance: Winners and Losers

The performance of various retail categories in 2024 further illustrates the divergent fortunes within the sector. General merchandise, value-oriented apparel, and food have seen strong growth, reflecting consumers’ focus on essential and affordable products. On the other hand, categories such as electronics, hardware, sporting goods, and furniture have struggled.

This trend is not surprising given the economic pressures facing many consumers. As Goldberg points out, “It’s been a tough year for electronics, hardware, sporting goods, and furniture stores.” These categories, which often involve discretionary spending, have been hit hardest as consumers tighten their belts.

The success of value-oriented categories also underscores the importance of understanding consumer needs and preferences. As Miriam Beniacar, an expert in e-commerce, fashion, and tech, asks, “Given the growth of Temu, Shein, and TikTok Marketplace, what strategies do you think smaller retailers should adopt to stay competitive?” This question highlights the need for smaller retailers to adapt by offering unique products or experiences that resonate with their target audiences.

The Road Ahead: E-Commerce Continues to Drive Growth

Looking ahead, the trajectory of e-commerce is likely to remain on an upward path, albeit at a more measured pace. As Goldberg suggests, “For those who viewed the Covid-driven surge in e-commerce as temporary, it’s worth noting that e-commerce is here to stay.” The continued integration of digital and physical retail, alongside innovations in delivery, payment, and customer engagement, will likely further solidify e-commerce’s position as the engine driving retail growth.

However, the landscape will continue to evolve, with new players emerging and established ones adapting to the changing dynamics. As Laurence Faguer, Founder & RetailTech Strategist, notes, “Gold reading for those in Europe who candidly think they can stop Shein and Temu.” This international perspective reminds us that the shifts in retail are not confined to the US but are part of a broader global trend.

In conclusion, the first seven months of 2024 have underscored the central role of e-commerce in the US retail sector. As the primary driver of growth, e-commerce continues to reshape consumer behavior and retail strategies alike. Retailers who understand and adapt to this new reality—by focusing on value, differentiation, and execution—will be best positioned to thrive in this competitive landscape. The road ahead may be challenging, but for those who navigate it well, the opportunities are vast.

Navigating a Tough Macro Environment

Silverman acknowledged the difficulties posed by the current economic landscape, particularly for discretionary products. “We’re really swimming upstream with a tough macro environment, and it’s hitting the consumer directly,” he stated. Despite these challenges, Etsy has maintained a steady number of active buyers, reaching an all-time high of 91.5 million. “We came in at the top of our guide on every metric, and we’re proud of how we’re doing in this volatile macro,” Silverman added.

The CEO emphasized that the company is not succumbing to the race to the bottom on pricing. Instead, Etsy is doubling down on its unique value proposition. “We’re focused on making Etsy even more Etsy, leaning into our point of differentiation,” Silverman explained. This approach has helped Etsy remain resilient, even as other e-commerce platforms struggle to keep pace.

Leveraging AI to Enhance Customer Experience

A key component of Etsy’s strategy is its investment in AI to improve user experience and drive growth. Silverman highlighted the challenge of organizing Etsy’s vast inventory, which includes over 120 million unique items. “There’s no army of humans you could hire to do that, but AI is really good at organizing huge amounts of information in a way that’s easy for humans to understand,” he said.

Etsy’s recent launch of gift mode is a prime example of AI’s impact. This feature, powered by AI algorithms, helps users find the perfect gift, boosting performance during key shopping occasions like Mother’s Day, Father’s Day, and graduations. “We significantly outgrew the market for those holiday occasions, with gifting growing 4% year over year while the rest of the site shrank in low single digits,” Silverman noted. This success underscores the potential of AI to drive top-line growth, even in a challenging market.

Medical and Non-Medical Applications

Beyond enhancing customer experience, AI is also set to revolutionize other areas of Etsy’s operations. Silverman pointed out that Etsy has a long heritage in machine learning, having built out its AI infrastructure over several years. This includes using neural net technology to understand user intent and improve search results. “If you come to Etsy now and ask for cocktail attire for men, we’ll show you blue blazers, even though there’s no words in common between those searches,” he explained. This capability demonstrates Etsy’s commitment to staying ahead of the curve in AI innovation.

Future Prospects and Technological Aspirations

Looking ahead, Etsy sees AI as a critical driver of future growth. The company aims to transform how users interact with the platform, making it easier to discover and purchase unique items. “Our next big opportunity is to be a place you go to start your search when you’re planning a wedding or redecorating your home,” Silverman said. By leveraging AI, Etsy can offer personalized recommendations and streamline the shopping experience, making it more intuitive and enjoyable for users.

Silverman also touched on the broader implications of AI for Etsy’s mission. “Keeping commerce human is what drives us,” he stated. With 7 million sellers, the vast majority of whom are women working from home, Etsy plays a crucial role in supporting small entrepreneurs. “Our mission is incredibly motivating, and it’s a key factor in attracting and retaining world-class talent,” he added.

Philosophical and Existential Considerations

The integration of AI into Etsy’s platform also raises important philosophical and existential questions. As AI becomes more prevalent, ensuring its ethical use and accessibility is paramount. Silverman emphasized the importance of aligning AI development with Etsy’s mission of supporting small businesses and fostering creativity. “We must be vigilant in how we develop and deploy this technology to ensure it benefits all of humanity, not just a privileged few,” he stressed.

Reflections on the Future

As Etsy continues to navigate the post-pandemic world, the company remains focused on its core values and long-term vision. Despite the challenges, Etsy’s unique offerings and strategic use of AI position it for sustained growth. “We were and are a great success story of the pandemic,” Silverman reflected. “Tens of millions of people came to Etsy during the pandemic and have come back again and again because we offer something truly different.”

In conclusion, while Etsy faces a tough macroeconomic environment, its strategic investments in AI and commitment to its mission provide a strong foundation for future success. As Silverman aptly put it, “Our focus is making Etsy even more Etsy, delighting our customers, and they’ll love us when we win.” The road ahead may be challenging, but with its innovative approach and steadfast dedication, Etsy is well-positioned to thrive in the evolving e-commerce landscape.

Redbox is one of the few ways to easily rent DVD movies, with the company’s kiosks a familiar sight outside of stores and fast food outlets. Unfortunately, despite their popularity, the future doesn’t look very good for the company.

According to The Associated Press, Chicken Soup for the Soul has filed for Chapter 11 bankruptcy, with documents showing that it owes some $970 million to more than 500 creditors. Creditors include major studios, such as Sony Pictures and Warner Bros, as well as retail outlets like Walmart and Walgreens.

As AP reports, Chicken Soup for the Soul says its creditors are unwilling to work with the company to refinance its debt. Of course, part of the creditors’ reluctance to work with the company could be a result of it defaulting on a settlement payment it owed to NBCUniversal. The two companies had agreed to a $16.7 settlement, but Chicken Soup for the Soul defaulted on the first $4 million installment.

Chicken Soup for the Soul bought Redbox in 2022, assuming its $325 million in debt. The fact that it’s debt is now closing in on $1 billion would seem to indicate that things have gone from bad to worse for the DVD rental company, or that it has been horribly mismanaged.

Walmart unveiled its Walmart+ subscription service in May 2023, designed to give customers free delivery and better discounts. The service is similar to the popular Amazon Prime service.

“We can’t wait for customers to use Walmart+ as a way to keep more time on their calendars and money in their pockets,” Janey Whiteside, chief customer officer, said at the time. “We designed Walmart+ to be the ultimate life hack for customers, pulling together benefits they told us would be most helpful to them today and in the future. Its usefulness will only grow from here.”

As part of the service, Walmart one-upped Amazon’s Prime Day with a full week of savings and deals—Walmart+ Week.

“Our Walmart+ members loved early access to our Black Friday events, so we were inspired to create an entire weekend dedicated to the best deals,” Chris Cracchiolo, senior vice president and general manager, said at the time. “Giving members more of what they want with exclusive, unprecedented Black Friday-like savings allows us to celebrate our members in a fun, new way.”

This year, the event starts Monday and goes through the June 23. The company says customers can expect the following benefits:

• Get double the discount on fuel at Exxon & Mobil stations nationwide. That’s a whopping 20 cents off every gallon it takes to fill up your tank.
• Earn up to 20% back in Walmart Cash on flights, hotels, car rentals, and activities booked through Walmart+ Travel, perfectly timed for the summer travel season.
• Enjoy a complimentary Express Delivery, delivering your order right to your doorstep in under two hours, without the usual $10 fee.
• Experience three free months of Walmart+ InHome, ensuring the items you want most can be conveniently dropped off right on your kitchen counter.
• Get exclusive access to new and unique items for members only (stay tuned for more on this).

For those interested in signing up, Walmart+ costs $98 per year, or $49 for those on qualified government assistance.

According to the British Independent Retailers Association (Bira), Amazon unfairly used data it had access to in order to launch products that competed with top sellers. Because Amazon could launch those products cheaper, and promote them via Buy Box, it effectively allowed the e-commerce giant to squeeze out third-party retailers in best-selling categories.

Such commercially valuable and confidential information helps Amazon decide whether to enter a new product segment based on its earnings and sales potential, which elements of the product to copy, how to price an item, and which consumers to target. That information in combination with the Buy Box, meant Amazon knew it could successfully enter and take away profits from UK retailers.

The retailers, many of whom are small independent UK businesses, were unaware that Amazon was illegally using their data to benefit its own retail operation. Amazon was already charging them a non-negotiable 30% commission on every product sold on the site. By misusing their proprietary data to bring to market rival products that are sold cheaper, Amazon is effectively pushing many of the UK’s independent retailers out of the market. The consequences of Amazon’s abusive conduct has been to inflate its profits and harm the UK retail sector, especially the smaller independent retailers who are struggling at a time of difficult economic circumstances.

Amazon has already ran into significant regulatory scrutiny for the exact behavior the lawsuit is targeting. Consumer rights advocate Julie Hunter launched a similar lawsuit in the UK on behalf of retailers in 2022, and the country’s Competition and Markets Authority (CMA) opened its own probe into the company’s practices in the same year. The company faced a similar probe in the EU in 2022 over using non-public business data from retailers to fine-tune its own decisions.

In July 2019, the Commission opened a formal investigation into Amazon’s use of non-public data of its marketplace sellers. On 10 November 2020, the Commission adopted a Statement of Objections in which it preliminarily found Amazon dominant on the French and German markets, for the provision of online marketplace services to third-party sellers. It also found that that Amazon’s reliance on marketplace sellers’ non-public business data to calibrate its retail decisions, distorted fair competition on its platform and prevented effective competition.

In parallel, on 10 November 2020, the Commission opened a second investigation to assess whether the criteria that Amazon sets to select the winner of the Buy Box and to enable sellers to offer products under its Prime Programme, lead to preferential treatment of Amazon’s retail business or of the sellers that use Amazon’s logistics and delivery services.

In both the EU and UK probes, Amazon made changes to its program to avoid further action, a point that could help the plaintiffs in the current case prove that Amazon’s behavior, dating back to 2015, was illegal.

To make matters worse for retailers, not using Amazon is no longer an option because of the company’s dominant market position.

“One might ask why would an independent retailer use Amazon if it is so damaging to their business,” said Andrew Goodacre, CEO of Bira. “In reality, we have seen a significant shift in consumer buying behaviour and, if small business want to sell online, Amazon is the dominant marketplace in the UK. As a result, for small retailers with limited resources, Amazon is the marketplace to start online trading. Whilst the retailers knew about the large commissions charged by Amazon, they did not know about the added risk of their trading data being used by Amazon to take sales away from them.

“The British public has a strong relationship with its local, independent retailers and ensuring they are not put out of business by Amazon’s illegal actions is a key driving force behind this collective action. The filing of the claim today is the first step towards retailers obtaining compensation for what Amazon has done. I am confident that the CAT will authorise the claim to go forward, and I look forward to the opportunity to present the case on behalf of UK retailers. This is a watershed moment for UK retailers, but especially for small independent retailers in this country.”

The Push for Better Working Conditions

The decision to unionize comes after prolonged efforts by the Towson employees to negotiate better working conditions with Apple. According to IAM CORE, the union attempted to address concerns about unpredictable scheduling and inadequate wages through discussions with Apple’s management. Still, these efforts did not lead to the desired changes. “This vote today is the first step in demonstrating our solidarity and sends a clear message to Apple,” said members of the IAM CORE Negotiating Committee. “As discussions with Apple management continue, we remain committed to securing tangible improvements that benefit all employees.”

Unpredictable scheduling has been a significant pain point for Apple retail workers, who often face inconsistent start and end times that disrupt their personal lives and sleep patterns. One Reddit user, reflecting on similar experiences in retail, commented, “The unpredictable schedule was the 2nd worst part of working retail for me. At least keep the start and end times of shifts consistent so we don’t mess up our sleep.”

Apple’s Response and the Potential Impact

Apple has expressed its commitment to engaging with the union in good faith. “At Apple, we work hard to provide an excellent experience for our retail team members and empower them to deliver exceptional service for our customers,” an Apple spokeswoman told Fast Company. “We deeply value our team members and we’re proud to provide them with industry-leading compensation and exceptional benefits.”

Despite these assurances, the move to unionize could have broader implications for Apple. The company’s retail operations are crucial in its business model, serving as both sales hubs and customer service centers. Any disruption, such as a potential strike, could affect Apple’s ability to maintain its high customer service standards and impact its overall business performance.

A Broader Labor Movement?

The Towson Apple Store’s decision to unionize is part of a larger trend of labor organization efforts across various industries in the United States. Retail workers, in particular, have been at the forefront of this movement, seeking to address long-standing issues related to wages, working conditions, and job security. The successful unionization of Apple’s Towson store could inspire similar efforts at other Apple retail locations and beyond.

The recent union vote in Towson contrasts with the situation at another Apple store in Short Hills, New Jersey, where employees voted against unionizing. Following this defeat, the Communications Workers of America (CWA) filed a complaint with the U.S. National Labor Relations Board, accusing Apple of union-busting tactics. “Instead of leaving the decision up to the workers themselves, the company turned to its usual anti-union playbook to influence the results of the election,” the CWA stated.

A Test for Tim Cook’s Leadership

The unionization effort also spotlights Apple CEO Tim Cook. Cook, who has been at the helm since Steve Jobs’s passing, has steered Apple through significant growth and transformation. How he responds to this unionization effort could set a precedent for how Apple handles labor relations in the future.

Labor experts and market analysts are closely watching Cook’s next moves. “I would be really interested to hear what Tim Cook has to say about this,” commented an analyst on Cheddar. “He’s been a steady leader at Apple, and his response could influence how other companies handle similar situations.”

Looking Forward

As the Towson Apple Store workers prepare for potential strike actions, the broader implications of their unionization remain to be seen. The outcome of this move could reshape labor relations within Apple and potentially influence labor practices across the tech industry.

For now, the workers’ vote to unionize is a significant milestone in Apple’s history and a testament to the growing momentum of nationwide labor organization efforts. As one Reddit commenter succinctly said, “More power to them!”

Surprisingly, retail sales in February significantly outperformed expectations, posting a 1.1% increase compared to the consensus forecast of 0.4%. This robust performance, a doubling from January’s 0.6% rise, suggests that consumer confidence and spending remain resilient despite various economic headwinds. Notably, when excluding autos and gasoline — which saw a dip due to deflation in used car prices and volatile fuel costs — retail sales impressively climbed by 1%.

The control group, a critical component of retail sales that feeds into Gross Domestic Product (GDP) calculations, also saw a 1.1% rise, far surpassing the anticipated 0.4%. This robust data is expected to lead to upward revisions in GDP estimates, reinforcing the narrative that the U.S. economy may be gaining momentum.

Conversely, the New York Federal Reserve’s manufacturing index presented a mixed picture. While the index continued to contract for the fourth consecutive month, there were positive developments under the surface. New orders and employment figures within the sector showed improvement, though they were not strong enough to shift the overall negative trend. The prices paid component, however, rose by five points, indicating ongoing inflationary pressures that could squeeze margins further.

In reaction to the economic data, Treasury yields climbed to new heights, with the 10-year note reaching 4.61%, reflecting growing investor expectations that the Federal Reserve might continue tightening monetary policy to combat inflation. On the other hand, stock futures dipped slightly, suggesting concerns about the potential impact of rising costs on corporate profits.

The market’s response underscores a complex landscape where higher gas prices do not appear to deter consumer spending across other categories. This challenges the conventional wisdom that higher fuel costs automatically lead to reduced discretionary spending.

These economic indicators are crucial for policymakers, particularly as they consider the implications of inflation on the broader economy. The ongoing discussions around the Federal Reserve’s policy path in 2023 indicate that decision-makers are keenly aware of the need to balance fostering economic growth and containing price levels.

Moreover, this latest batch of economic data will likely feed into Congressional discussions about fiscal policies and potential regulatory adjustments. With AI and automation poised to transform various industry sectors further, legislators are under increasing pressure to address the socioeconomic implications of these technologies.

As the U.S. economy navigates through these turbulent times, the resilience of the consumer sector continues to be a bright spot. However, the manufacturing sector’s struggles highlight the challenges that lie ahead. Investors and policymakers must stay nimble, responding to data-driven insights to steer the economy toward a stable and prosperous future.

Throughout the discussion, Chair Khan articulated the FTC’s mandate to protect Americans from monopolistic behaviors, emphasizing the agency’s commitment to enforcing antitrust and consumer protection laws. However, her rhetoric was met with skepticism as critics questioned the agency’s track record and the tangible impact of its enforcement actions.

“One big area of focus for us is understanding the root cause of these problems. Let’s understand who the mafia boss is here rather than just going after the foot soldiers,” Chair Khan asserted during the program.

One of the focal points of criticism was the FTC’s lawsuit against Amazon, which alleges monopolistic practices and anti-competitive behavior. While Chair Khan presented the case as a bold step towards accountability, detractors raised doubts about the agency’s ability to effectively challenge the tech giant.

“We have a lawsuit against Amazon… But when we’re going up against some of these monopolistic companies, they can outmatch us, outgun us sometimes 1 to 10 just if you’re looking at lawyers,” Chair Khan acknowledged, highlighting the agency’s uphill battle.

Furthermore, Chair Khan’s remarks on the pharmaceutical industry drew scrutiny, particularly her assertion that the FTC is actively addressing drug pricing and shortages.

“We’ve seen over the last few years… baby formula, IV bags, Adderall, basic forms. There are all sorts of tricks and monopolistic behavior leading to that,” Chair Khan explained, addressing concerns about the affordability and accessibility of essential medications.

The conversation also touched on artificial intelligence’s growing influence, with Chair Khan advocating for regulatory foresight and vigilance.

“The first thing we need to do is be clear-eyed that there’s no AI exemption from the laws on the books… And so we need to use the policy tools and levers that we have to make sure that these technologies are proceeding on a trajectory that benefits Americans,” Chair Khan asserted, highlighting the importance of proactive regulation in shaping the future of AI.

Moreover, Chair Khan’s leadership style and strategic approach were scrutinized, with some questioning her ability to effectively lead the agency in confronting powerful corporate interests.

Industry analysts noted that while her determination and resilience were acknowledged, critics raised concerns about the FTC’s enforcement capabilities and its capacity to hold corporate behemoths accountable.

In conclusion, Chair Lina Khan’s appearance on the program shed light on the challenges and complexities of antitrust enforcement in the modern era. While her tenure at the FTC has been marked by bold rhetoric and ambitious goals, questions about the agency’s ability to translate words into meaningful action linger. As regulatory scrutiny intensifies and corporate power continues to grow, the efficacy of the FTC’s enforcement efforts remains a subject of debate and contention.

Viewers Love Lina Khan

One of the standout moments of the interview came when Stewart revealed that Apple had attempted to prevent Khan from appearing on his show. Despite facing opposition from one of the world’s most powerful corporations, Khan maintained her composure, demonstrating poise and grace that left viewers in awe. One commenter noted, “Man, the poise on this woman when Jon says they wouldn’t let her on the podcast. She knows exactly why. Love it.”

Khan’s performance also sparked admiration for her leadership qualities, with many expressing a desire to see more public figures like her in positions of power. One commenter pondered, “Why don’t we have presidential candidates like this woman?” while another declared, “As an American, I’d vote for this sort of discourse again and again.”

Throughout the interview, Khan’s communication skills were displayed as she deftly fielded Stewart’s questions with precision and clarity. “This woman’s communication skills are amazing,” remarked one viewer. “She is always answering the exact question asked, no unnecessary rhetoric, transparent vocabulary.”

Moreover, Khan’s expertise and dedication to her work left a lasting impression on viewers. Many expressed gratitude for her willingness to tackle important issues such as monopolization and antitrust enforcement. “We need more people like Lina Khan in our government,” asserted one commenter, while another praised her as “undeniably, outstandingly brilliant.”

Jon Stewart’s role in facilitating the interview also garnered praise, with viewers commending him for providing a platform for essential discussions often overlooked by mainstream media. “Jon Stewart is THE best interviewer in American media today,” declared one commenter. “How do we get this man a bigger platform?! The country is in such desperate need of him.”

In conclusion, Lina Khan’s interview with Jon Stewart powerfully reminded viewers of the importance of intelligence, integrity, and courage in public service. As viewers reflected on the insights shared during the interview, it became clear that Khan’s leadership is inspiring and essential in addressing the complex challenges facing our society today. As one commenter aptly said, “We are lucky to have her at the helm!”

In just over a year, Temu has managed to amass an impressive user base of 51 million monthly active users in the US alone, a feat that took Amazon decades to achieve. How did a relatively unknown brand achieve such staggering growth in such a short span of time? By offering cheap goods shipped directly from China, Temu has tapped into the consumer demand for affordable products, ranging from $20 coats to $9 stainless steel water bottles.

But Temu’s success goes beyond just offering low prices. The retailer has adopted a savvy marketing strategy, saturating social media feeds with ads and creating buzzworthy campaigns that have captured the attention of curious consumers. Its omnipresence in the digital landscape has propelled it to acquire over 161 million monthly app users worldwide, making it a force to be reckoned with in the e-commerce arena.

Temu has spared no expense to fuel its expansion, investing billions in advertising to ensure its brand is visible everywhere. Backed by its parent company, Pinduoduo (PDD), a Chinese e-commerce giant, Temu has the financial muscle to compete with the likes of Amazon and Alibaba on a global scale.

But Temu’s rise has not been without controversy. The company’s business model prioritizes market share over profitability and has raised eyebrows among analysts. With estimated losses of $7 per order in 2023, questions have been raised about the sustainability of its growth trajectory. Moreover, concerns about product safety and quality have also plagued the company, prompting scrutiny from both consumers and government regulators.

Despite these challenges, Temu remains undeterred in its quest to dominate the e-commerce landscape. With its gamified shopping experience and aggressive marketing tactics, the upstart brand has forced industry incumbents to take notice. As it continues to disrupt the status quo, one thing is clear: Temu is here to stay, and its impact on the future of e-commerce will be felt for years to come.

Fashion companies are now integrating AI technologies to improve supply chain operations, customer service, retail security, waste reduction, and so on–a list that only scratches the surface of its capabilities. 

Subscriber-based ecommerces like Stitch Fix are redefining personal styling through AI algorithms that curate custom clothing selections based on individual preferences.

Trendy menswear e-tailers like Differio are optimizing AI-driven solutions to target design and demand forecasting. Differio’s CEO further adds, “Even though AI technology can’t replicate genuine human creativity, it has the potential to steer fashionable men’s clothing online towards a more innovative future, devoid of overproduction and microtrends.”

Even old-school brands like Levis are testing AI-generated models to display more diversity and inclusivity on their product pages.

According to McKinsey consulting firm’s analysis, over the next three to five years, generative AI has the potential to add up to an estimated $275 billion in profits across the fashion, apparel, and luxury sectors. As we welcome generation AI into our wardrobes, let’s explore how today’s fashion e-tailers are integrating various AI-powered solutions into their own business models.

Personalized Shopping

Personalization is in demand more than ever now from custom-designed men’s clothing online to targeted product suggestions. 

In order to cater to this ecommerce trend, fashion companies are tapping into AI-powered technologies to create a more personable experience using customer segmentation. It’s one of the key applications where AI algorithms analyze vast amounts of consumer data to identify specific marketing campaigns and product offerings.

Product and size recommendations are another AI game-changer, which especially helps to reduce return rates. By analyzing a customer’s past purchases and browsing history, AI algorithms can suggest relevant products that match with a shopper’s preferences. It can also gather data on a customer’s body measurements to suggest sizes for virtually any clothing item from chino pants to graphic tees

Virtual Enhancements

There was once a time when real-time chatbots and virtual menswear models sounded like something from a sci-fi film. Thanks to AI systems and virtual reality, these futuristic tech ideas are not only becoming a reality, but also being implemented into today’s trendy clothing sites. 

Chatbots and virtual assistants reduce the need for a large customer service center while also addressing customer concerns by suggesting products and solving real-time inquiries. 

Similar to try-before-you-buy subscription boxes, virtual try-on tools allow customers to virtually “try on” stylish clothing items, which also helps to lower return rates.

Additionally, virtual models created through AI and VR technology can showcase stylish clothing, providing customers with realistic visuals on various skin tones and body types. 

Data-Driven Efficiency 

If you thought fast fashion was fast, AI solutions are only speeding up the market thanks to data-driven efficiency. Instead of spending time and energy on tedious tasks, it allows people in the workforce to reallocate their focus on more pressing issues, saving time and resources. 

With AI-generated content creation, fashion ecommerces can automatically generate product descriptions, social media posts, and marketing materials within seconds. 

Dynamic pricing algorithms are also being used to analyze market trends and customer behavior in real-time. Ultimately, this helps e-tailers act fast to increase profits and stay competitive in the market.

Additionally, AI-based demand forecasting models can predict consumer demand more accurately by analyzing factors such as order history and SKU data, improving overall inventory management and minimizing stock issues.

Fraud Prevention & Cybersecurity

Fashion ecommerces still need to be on guard when it comes to theft and loss prevention, usually caused by identity fraud or a data breach. Fortunately, it’s becoming easier than ever to detect and block suspicious activity.

One way to do this is by implementing AI-powered Web Application Firewalls (WAFs). WAFs are used for advanced protection against online threats and vulnerabilities by learning algorithms that analyze incoming web traffic in real-time. 

By quickly analyzing large volumes of real-time data, AI systems can identify potential threats and unauthorized access attempts, allowing online businesses to mitigate risks in a matter of minutes. 

AI Forecast: What to Expect in Fashion’s Future?

Fast fashion works at lightning speed, but AI might be even speedier in changing the course of fashion’s future. 

There are simply no signs of AI slowing down in the coming decade. According to Statista, AI technology’s market spanned around 200 billion U.S. dollars in 2023 and is anticipated to exceed 1.8 trillion U.S. dollars by the year 2030, signaling remarkable growth. 

With AI’s imminent success, the only downfall is its potential to replace a variety of jobs in the future, such as trendy men’s clothing analysts and customer service representatives. 

With eCommerce growth continuing at an exponential rate, supply chain visibility has become increasingly important for companies looking to remain competitive in today’s digital marketplace. Not only do businesses need to meet customer demands for fast delivery times, but they also need to manage costs, minimize losses, and ensure security. 

Be that as it may, only 65% of companies are able to report full visibility across their supply chains, and 43% of small businesses are not tracking inventory levels at all. With economic uncertainty on the horizon and customer expectations at an all-time high, now is the time to invest in supply chain visibility so you don’t find yourself falling behind while your competition sails away with their loyal customers.

Benefits of Supply Chain Visibility for Ecommerce Businesses

There are a multitude of benefits to be realized through the implementation of supply chain visibility in eCommerce. These include:

Improved customer satisfaction and loyalty

The more visibility you have into your own supply chain, the better equipped you are to anticipate customer needs and deliver products in a timely manner. With improved visibility, eCommerce businesses can increase customer satisfaction by reducing their response times, improving delivery accuracy, and providing customers with real-time updates about the status of their orders. This helps foster greater loyalty from customers, which in turn increases the likelihood of repeat business.

Reduced costs associated with inventory management

“Knowing inventory costs is extremely important because they affect the majority of decisions one makes as a retailer,” explains Abir Syed, co-founder of UpCounting, an eCommerce accounting firm.

Unsurprisingly, inventory management is the single largest expense for eCommerce businesses. For every dollar a US retailer generates through revenue, they have $1.35 tied up in inventory. As such, being able to accurately track and monitor inventory levels is essential for minimizing losses and maximizing efficiency.

By leveraging supply chain visibility technology, businesses can reduce the amount of inventory they need to keep in stock and their associated costs. This can be achieved through better forecasting and planning, more precise order fulfillment processes, and improved inventory accuracy.

Increased efficiency and speed of delivery

Knowing where products are throughout their journey allows businesses to better plan and adjust for delays, ensuring customers get their items as quickly as possible. Supply chain visibility also facilitates increased collaboration between all parties involved in the delivery process, allowing for a transparent and overall more efficient supply chain.

Enhanced flexibility and scalability in supply chains

As the demands of customers and markets shift, businesses need to be able to quickly adjust their supply chains accordingly. With supply chain visibility, businesses can quickly adapt to changing conditions, such as unexpected spikes in demand or supply disruptions. This increased flexibility and scalability of the supply chain is essential for businesses to remain competitive and responsive. This scalability also benefits businesses as they grow and expand into new markets. 

Increased control over returns management 

Returns are an unavoidable part of eCommerce and managing them can be difficult. Supply chain visibility gives businesses the ability to track a returned item as it moves through the supply chain and make adjustments to minimize losses. This includes tracking returned items on their journey back to the supplier, identifying potential issues and quickly resolving any discrepancies.

Challenges of Implementing Supply Chain Visibility

While the benefits of supply chain visibility are clear, there are still some challenges associated with its implementation. These include:

Establishing and maintaining relationships with suppliers

Before any supply chain visibility technology can be deployed, businesses need to build relationships with their suppliers. This requires open communication and collaboration between all parties involved, as well as a certain level of trust.

“When it comes to choosing partners, it’s wise to do some research to ensure the best deal possible while emphasizing transparency and flexibility. This is invaluable during times of frequent supply chain disruption,” explains Roei Yellin, Co-Founder & Chief Revenue Officer of 8fig, a planning and funding platform for eCommerce companies. 

“Sellers shouldn’t be afraid to negotiate for a better deal and they should make sure that communication is open and honest. This is true of suppliers, 3PLs (third-party logistics providers) and any other partners brought in to help manage the supply chain,” concludes Yellin.

Complexity of the supply chain and data formats

Securing buy-in from all parties and managing the data exchange between different organizations is challenging. Not only do various supply chain participants have differing needs and processes, they also use different systems. Unifying these systems and ensuring harmonious data exchange can be difficult.

To overcome this, businesses need to create a single source of truth that all supply chain participants can work from. This means creating common protocols and standards that all parties are comfortable with and can adhere to, and potentially leveraging a third-party solution to manage the data exchange.

Costs associated with technology and infrastructure

The technology and infrastructure required for supply chain visibility can be costly. Businesses need to invest in the right hardware, software, and people to ensure that the system is secure and effective.

Fortunately, there are solutions to this issue. RFID and code-based tracking solutions, in particular, are relatively inexpensive and easy to implement. Companies such as Scurri allow you to easily create a single bar code for all carriers, as well as a reporting dashboard that gives you full control over your operations with actionable insights. 

Cybersecurity concerns

Data is the lifeblood of supply chain visibility and ensuring its security is paramount. However, supply chains are coming under increasing attack from hackers and malicious actors, making them vulnerable to data theft and manipulation.

In fact, 97% of organizations say they have experienced the negative consequences of a supply chain cyber breach within their operations, demonstrating just how prevalent these attacks have become.

As such, businesses need to ensure that they have the appropriate protocols in place to protect their data from cyber-attacks. This includes using secure networks and encryption, as well as regularly auditing system access and usage. Multichannel cyber security solutions, such as VMware, can also be of great help in mitigating cyber risks.

Conclusion

Supply chain visibility is becoming increasingly important in today’s volatile and highly competitive marketplace. However, if businesses are to reap the full benefits of a visible supply chain, they must first overcome the various challenges associated with implementation.

Ultimately, with careful planning, a comprehensive approach to risk management, and the right technology in place, businesses can ensure that their supply chain visibility efforts are successful and that they remain agile and competitive in the long run. 

The setback for some merchants is their failure to find the right mobile app developer when they initially launched. As their brands grow, their mobile stores’ needs become more specific. Retail brands with apps that directly fulfill the experience that shoppers desire are on a solid path to success; this is why finding the right app developer is imperative.

Find the right mobile app developer for brand needs

Third-party developers like Tapcart, the no-code app developer for Shopify, allow merchants to customize their checkout settings to create a frictionless checkout experience while enabling tools to help increase conversions. With the aid of these third-party developers, merchants can implement features like single-page checkouts and pre-filled shipping forms that allow for a quick checkout experience. Conversion features including checkout navigation, which automatically navigates customers to checkout when they add products to their cart, have contributed to Tapcart’s popularity amongst retail giants like Fashion Nova and Pier 1 Imports. 

Reduce the number of form fields

Over 18 percent of shoppers will abandon their cart if the checkout process is too long or complicated. In order to combat this, merchants should reduce the number of form fields so that shoppers have less to fill out. Fewer form fields ensure a frictionless checkout experience that increases conversion rates up to 160 percent. 

On average, merchants include 2 times more form fields than necessary. With these large amounts of forms, it can be tedious for a shopper to complete them for just one or two items. Reducing the typical number of checkout form fields can result in fewer abandoned cart rates, a checkout process that takes just  5 seconds to complete, and ultimately a significant jump in sales.

Accept various payment methods

With the rise of alternative payment methods, shoppers are no longer solely opting for credit and debit cards. In fact, 31 percent of shoppers say that they are more likely to use alternative payment methods (APMs) since the start of the pandemic. Providing APMs, like buy-now-pay-later (BNPL), which can be implemented through companies such as Affirm and Quadpay, allow eCommerce customers the freedom to choose their preferred payment method, ultimately resulting in a more streamlined checkout experience that caters directly to consumers.

Adding various payment methods is a simple way to attract new customers who, on other eCommerce apps, might not be able to use their preferred payment method. As a result, customers will flock to merchants’ mobile apps with the knowledge that they don’t have to change their choice of payment and instead can focus on their excellent shopping experience. 

Allow customers to shop as guests or create accounts

Having a customer account on an eCommerce website can provide prefilled shipping info, order history, and real-time order tracking, making a customer’s shopping experience optimal for quick and simple transactions. However, some customers prefer the guest checkout experience, as it requires less commitment and leads to faster first-time purchases. With a guest checkout feature, a shopper doesn’t have to fill out forms and create an account to purchase on a website, allowing a swift shopping experience without all of the extra steps involved.

Implementing an expedited checkout will increase customer loyalty to eCommerce mobile apps  and further success by decreasing cart abandonment rates. If the conversions aren’t meeting the quota initially intended, effectuating one or more of these tips is a great way to begin boosting numbers and meeting eCommerce goals.
To ensure your eCommerce store is having all of its needs met for maximum success, it is imperative that merchants find the right mobile app builder. Launching a high-converting mobile app can be easy with the right mobile app builder that offers features to ensure the most frictionless checkout experience.

Harley Finkelstein, COO of Shopify, discusses how COVID has dramatically sped up the timeline for commerce moving online and has also moved Shopify closer to its goal of becoming the world’s first retail operating system:

Shopify Evolving Into World’s First Retail Operating System

Most people assume that Shopify is an ecommerce provider. We have more than a million stores on Shopify. If you were to aggregate our stores in the US we’d be the second-largest online retailer in America. Of course, we’re not a retailer but we’re a platform. But we now have these great economies of scale that we’re using to level the playing field for entrepreneurs and small businesses. That being said, what really Shopify is evolving into is the world’s first retail operating system. 

What we’re trying to figure out is what do brands and entrepreneurs and retailers need, not just now but in the future? We think the future of retail is retail everywhere. A brand that’s going to be successful in 5, 10 or 15 years from now needs to sell across any platform and across any channel where they have customers. This idea of enabling Shopify merchants to very easily push their products to the Amazon Marketplace or the eBay marketplace or now the Walmart marketplace, that gives them access to a new set of consumers. The idea is that it all feeds back in one centralized back-office, the retail operating system, which is Shopify. 

Then we’ve gone ahead and asked what else can we do for these merchants? Can we do capital? We’ve now given out about a billion dollars worth of cash advances and loans to small businesses. We’re doing fulfillment and we’re doing shipping. We’re increasing the scope and the relationship that we have with the million stores on Shopify. This is allowing them to become category leaders.

COVID Speeds Up The Ecommerce Revolution

From our view, it seems like the commerce world that would have existed in the year 2030 has really been pulled into the year 2020 (as a result of the COVID crisis). We’ve seen ecommerce as a percent of total retail go from 15 percent to 25 percent in the last three months. That’s the same growth rate that we’ve seen over the last 10 years. What really has emerged here is sort of this tale of two retail worlds. On one side you have these resilient retailers that are doing great, they’re pivoting, and they’re expanding their businesses. On the other side, you have these resistant retailers who have not made it. In many ways, it’s probably the most exciting time for retail in a very long time. 

We talk a lot about these direct to consumer brands that are becoming category leaders. The Allbirds and the Gymsharks who started on Shopify when they were very small and have grown to become the incumbents in their industry. Every 25 seconds a brand new entrepreneur makes his or her (products) for sale on Shopify. We talk a lot about those new startups, those new DTC brands. But actually, what we’re also seeing on Shopify are companies like Lindt Chocolate or Heinz ketchup or Chipotle. They are signing up for Shopify and basically from like five days from contract to launch they are completely changing their businesses. 

This resiliency isn’t simply in the hands of just the smallest of brands. Big companies are also beginning to think a lot more about how to stay resilient in this time. They’re moving well beyond ecommerce or thinking about offline commerce now. They’re thinking about how do they sell across social media? How do they sell across different marketplaces? So no, I don’t think it’s too late (to enter ecommerce) but I do think they have to rethink their strategies.

Vice President, Ryan C. Baker, posted a message on the company’s website:

As previously announced, Zulily, LLC and its parent Zulily Group LLC (collectively, “Zulily”) made the difficult but necessary decision to conduct an orderly wind-down of the business to maximize value for the companies’ creditors. This decision was not easy nor was it entered into lightly. However, given the challenging business environment in which Zulily operated, and the corresponding financial instability, Zulily decided to take immediate and swift action. 

Baker says the company will fill as many order as possible within the next two week. Orders that cannot be fulfilled will be canceled and refunded. Baker says the company has a team in place to answer questions from customers, vendors, and others.

We realize that this news comes with many questions, and we have put a team in place to address customer, vendor, and other interested party inquiries. The Zulily ABC hotline can be reached at 888-202-5829 or (+1) 747-288-6406 outside the U.S., or visit https://omniagentsolutions.com/ZulilyABC for more information and additional support. In addition, customers can send email inquiries to ZulilyCustomersABC@OmniAgnt.com, while vendors and other parties of interest can email ZulilyABCInquiries@omniagnt.com.

Zulily will strive to continue to provide everyone with the best service possible during the holiday season. We appreciate yourpatience as we move through this process as swiftly and efficiently as possible.

According to the FTC, Rite Aid did not have reasonable safeguards in place to protect customers when it deployed facial recognition in its stores. As a result, the agency says the pharmacy potentially harmed and humiliated its customers.

“Rite Aid’s reckless use of facial surveillance systems left its customers facing humiliation and other harms, and its order violations put consumers’ sensitive information at risk,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Today’s groundbreaking order makes clear that the Commission will be vigilant in protecting the public from unfair biometric surveillance and unfair data security practices.” 

As part of the FTC’s action, Rite Aid will be banned from using facial recognition for five years and must implement the necessary safeguards when it does eventually re-dploy the tech.

The proposed order will require Rite Aid to implement comprehensive safeguards to prevent these types of harm to consumers when deploying automated systems that use biometric information to track them or flag them as security risks. It also will require Rite Aid to discontinue using any such technology if it cannot control potential risks to consumers. To settle charges it violated a 2010 Commission data security order by failing to adequately oversee its service providers, Rite Aid will also be required to implement a robust information security program, which must be overseen by the company’s top executives.

The ban will go into effect once it is approved by the court overseeing Rite Aid’s bankruptcy.

According to BleepingComputer, the store chain says 1,977,486 people were impacted as a result of its service provider, Zeroed-In Technologies, being hacked. The Zeroed-In incident occurred August 7 and 8, 2023.

BleepingComputer says the Zeroed-In hackers were able to obtain private information for Dollar Tree and Family Dollar employees.

“While the investigation was able to determine that these systems were accessed, it was not able to confirm all of the specific files that were accessed or taken by the unauthorized actor,” reads a letter sent to those impacted.

“Therefore, Zeroed-In conducted a review of the contents of the systems to determine what information was present at the time of the incident and to whom the information relates.”

According to The Wall Street Journal, the two firms are preparing to raise the fees they charge in October and April. Citing research from CMSPI, the Journal says the new fees could cost merchants an additional $502 million annually.

Needless to say, given the state of the economy and rampant inflation, critics are decrying the decision as poorly timed.

“It’s just a bad combination and bad timing for any of these fee increases to happen,” said Doug Kantor, general counsel of the National Association of Convenience Stores.

One of the biggest issues online shoppers face is finding the products they’re interested in. This can especially be apparent when comparing retail platform search capabilities with the Google Search features customers have become accustomed to.

Google Cloud is now bringing the power of its search to retail clients, with Retail Search, which the company unveiled in a blog.

This fully managed service is easily customizable, enabling organizations to craft shopper-focused search experiences. Our site search solution builds upon decades of Google’s experience and innovation in search indexing, retrieval, and ranking. Retailers can make product discovery even easier for shoppers, while optimizing for their business goals with advanced capabilities

Retail Search gives clients the ability to offer advanced query understanding, meaning customers will have better success finding what they’re looking for even with the broadest of search terms. The service also includes semantic search, which matches product attributes with relevant products.

Customers are already seeing the benefit of Retail Search.

“With limited customer signals and no historical data, descriptive long-tail searches are some of the most challenging queries to understand,” said Neelima Sharma, senior vice president, technology, e-commerce, marketing and merchandising at Lowe’s. “We have been partnering with Google Cloud to give our customers relevant results for long-tail searches and have seen an increase in click-through and search conversion and a drop in our ‘No Results Found’ rate since we launched.”

Google Cloud customers interested in learning more can visit Discovery Solutions for Retail or contact their Google Cloud field sales representative.

According to Reuters, Spain’s antitrust watchdog says the two companies’ anti-competitive agreement unfairly restricted the online marketplace for electronics.

“The two companies restricted without justification the number of sellers of Apple products on the Amazon website in Spain,” Spain’s watchdog, the CNMC, said.

Both companies disagreed with the CNMC’s findings and said they will appeal the decision.

“We reject the suggestion made by CNMC that Amazon benefits from excluding sellers from its market place, as our business model hinges precisely on the success of the companies selling through Amazon,” an Amazon spokesperson told Reuters in a statement.

Meanwhile, Apple told the outlet that its agreement with Amazon was designed to limit counterfeits.

The fine breaks down to 143.6 million euros for Apple and 50.5 million euros for Amazon.