Category: Technology

spatial computing in retail

Spatial Computing – The Next Big Thing in Retai?

Posted on | by Catherine Seeds

In her latest audio blog, our president and CEO shares the latest trend in retail tech.

Transcript of “Spatial Computing” audio blog:

Hello! It’s been a minute since we’ve recorded one of our KG audio blogs, but I am glad to be back and excited you have joined me today! I’m Catherine Seeds, president and CEO of Ketner Group.

Today, we are taking a closer look at the exciting world of spatial computing.

Before we dig in to see how retailers and brands are using this technology, let’s level set on what exactly it is.

According to the very smart folks at PC Magazine, spatial computing is a technology that enables computers to blend in with the physical world in a natural and seamless way. Not to be confused with a similar technology, augmented reality, which is a digital layer that augments reality by laying on top of it. 

To explain further, TechTarget defines spatial computing as a technology that “mirrors how we interact with virtual objects in the real world. For a human using spatial computing, the technology would ‘translate the two-dimensional images that they see into a 3D model of the world, make sense of objects in the world and then direct their hands to act.’”

The potential for spatial computing in retail is significant, especially with the launch of Apple’s Vision Pro and the forthcoming Google Glass. According to Brainy Insights, the U.S. market size for spatial computing will grow from 108.9 billion in 2023 to 815.2 billion by 2033. 

To further my point, McKinsey named immersive-reality technologies one of the top technology trends of the year, estimating that the “metaverse could generate up to $4 trillion to $5 trillion in value across consumer and enterprise use cases by 2030.”

So, let’s dive in and explore a few use cases on this amazing technology.

A new vehicle for product discovery and shopper interaction

In February of this year, e.l.f. Cosmetics announced one of the first beauty shopping apps for Apple Vision Pro, aptly named “your best e.l.f.” The app was created in partnership with the brilliant team at Obsess. In their blog discussing the project with e.l.f., Obsess describes the app as a way for shoppers to deepen their relationship with the brand through immersive exploration and branded games.

In the visionOS shopping app, users can participate in activities like guided meditations, stretching exercises and a “Paint by Numbers” game. With spatial computing, users can also “unwind and explore the best versions of themselves through playful, inspirational environments that contextualize an assortment of 3D e.l.f. products.”

Changing the game for all things virtual

Another first in the industry is J.Crew’s virtual closet app on Apple Vision Pro. Also powered by spatial computing, the app is an immersive shopping platform (see the trend here?) which gives shoppers the opportunity to shop J.Crew products in a 3D environment. With the app, users can:

  • Use intuitive hand and eye movements to browse a selection of J.Crew items
  • Mix and match pieces to create an ideal outfit for any occasion
  • See how the outfits look on their personal in-app mannequin. 

What is even more amazing about the app is the SharePlay FaceTime feature, which again, allows for shared experiences for a shopper. The app uses a digital twin of a person, complete with subtle facial expressions and gestures, that allow them to do 1:1 video calls with a J.Crew expert stylist or group video chats with friends and family to get feedback in real time! 

According to Halsey Anderson, VP of Marketing at J.Crew. “We’re particularly excited for our J.Crew stylists to use Apple Vision Pro to work with customers in a more dynamic way than ever before, via SharePlay in FaceTime. This incredible technology, combined with our rich brand heritage of best-in-class service, will provide endless styling capabilities.”

Ready to go shopping, anyone?

No turning back when it comes to immersive technologies

For those of us earning our living in the world of retail, we know that as technology evolves, so do the expectations and shopping behaviors of consumers. Just like mobile commerce or the online shopping beast that is Amazon has quickly become a part of the retail zeitgeist, so too will spatial computing. 

The possibilities for this immersive technology are endless. I mean, check out what the team at Augmodo is doing in the grocery space! With spatial computing, they can

create a 3D “Realogram” for each store, aka, a digital twin or map of that store, and everything in it.

As the team at Combeenation puts it, spatial computing “could become a mass phenomenon and fundamentally change the way we shop.” Personally, I’m excited to see which retailers and brands step up to the plate next. All the data and experts tell us that spatial computing is here to stay, and I agree!

Thanks for joining me today. Let’s keep the conversation going! 

Get in touch today to find out how our retail expertise can help drive brand awareness and support your marketing goals. 

ai retail tech pr

AI and Retail Tech PR: Three Things to Remember

Posted on | by Jeff Ketner

It’s hard to believe that today’s AI revolution started only 18+ months ago. That’s when OpenAI publicly released ChatGPT, forever changing the technology landscape by fueling an exponential wave of technology innovation.

We’ve seen firsthand the impact of AI in retail technology. NRF 2024 could easily have been rebranded “NRFAI,” as AI was everywhere and anywhere. But now there’s been a shift in emphasis about AI, which is moving from the “what” of AI (what it is and how it works) to the “so what” (what does it mean for your business?).

In terms of AI’s impact on the retail industry, our friends at IHL Group, a retail research and advisory firm, have done an excellent job of quantifying the financial benefits.

IHL has estimated that the top 200 publicly traded North American retailers and restaurants could see $1.5 trillion in additional financial impact from AI through 2029, with Amazon and Walmart alone accounting for more than a third of that. The firm’s “Retail AI Readiness Index” noted that nearly half of that will be created by generative AI.

Those are mind-boggling numbers. However, the “big picture” view of AI in retail is only part of the story. What’s needed now are stories about the real-world results and ROI of AI implementations. As IHL president/chief AI officer Greg Buzek says, “How are retailers really using it, with case study examples?”

That’s where we come in, as PR storytellers. However, given the unprecedented hype around AI, it’s important to keep these three things in mind when developing your PR strategy.

1. Skip the PR-speak about AI

Eliminate the buzzwords when you’re pitching editors. Most of them are burned out from AI fatigue, as this recent article from Fast Company makes clear. It’s worth quoting at length here:

“We are officially reaching the phase in the tech cycle where a new technology (in this case, artificial intelligence) goes from truly wondrous to truly annoying. Every organization now seems to be using it—or the idea of it—to ride the hype wave to achieve attention, clicks, or, you know, just a few more customers. And it’s starting to annoy the hell out of me.

“I can’t tell you how many pitches I receive from some poor comms person who is forced to proudly exclaim in the first sentence ‘We’re an AI-first company.’ Yeah, you and everyone else since, oh, early 2023.”

As the writer goes on to say, all the noise around AI can obscure the innovative work being done by the technology companies that are truly at the forefront of AI. These are the stories that the industry needs to hear.

2. Remember the media needs real-world AI stories

Exciting AI stories are quickly emerging. The industry’s largest retailers, grocers, restaurants and brands are actively sharing their own AI successes.

A recent Chain Store Age article detailed AI innovations in personalization from Best Buy (personalized mobile promotions), Reebok (personalized products) and leading regional grocers that have implemented personalized discounts, including Northeast Grocery, which uses an AI analytics, personalization and customer engagement platform from our client Birdzi.

While the largest tech vendors may dominate the headlines, some of the most innovative AI solutions for retailers are from earlier-stage technology companies.

These technology vendors have built AI platforms and solutions from the ground up (our client Digital Wave Technology is a prime example), rather than simply adding generative AI solutions to a legacy product portfolio.

The work these companies are doing is truly newsworthy.

3. Keep PR front and center in your marketing strategy

A recent Digiday article detailed how marketers are shifting the budgets away from pure performance marketing to focus more on brand building, including earned media. That’s where PR comes in.

There are unique challenges for PR agencies in telling AI stories. Some retailers and brands may be reluctant to disclose how they’re using AI solutions, as they consider it a competitive advantage. There’s an incredible amount of noise to cut through. Editors are bombarded with AI pitches, as we’ve noted earlier.

Yet there are plenty of opportunities to get your message across: thought leadership content, bylined articles, media pitching, recognition through industry awards, industry events and more, always amplifying your earned media wins through social media and marketing.

These are among the many PR tactics the Ketner Group team uses to get the word out for our clients, and it works.

AI innovation is moving at an extraordinary pace, creating plenty of opportunities for creative storytelling that explains the real benefits of AI. Make sure your company is part of those stories!

2024 retail tech trends

AI Upended the Retail Tech Landscape in 2023. What’s Ahead in 2024?

Posted on | by Jeff Ketner

AI’s breakthrough year in 2023 was the retail technology equivalent of Taylor Swift’s Eras tour – a once-in-a-generation event that changes everything.

If Swiftmania is the biggest musical sensation since The Beatles, then Generative AI is easily the most revolutionary technology since the iPhone. AI is quickly becoming a pervasive technology, dividing the timeline for tech advancements into “before” and “after” AI.

AI will dominate the 2024 retail tech industry

Dan Berthiume, senior technology editor of Chain Store Age, summed up the impact of AI in a recent Q&A with Ketner Group: “AI is the most dominant technology I’ve seen in the last 15 years. It will be an important component in every technology system and every part of the enterprise, and like mobile and omnichannel commerce, it will be a constant feature (not just in retail) and will just be assumed.”

It’s a safe bet that AI will be the #1 tech topic at next week’s NRF 2024. And while AI will continue to dominate the retail technology landscape 2024, the conversations have shifted from the technology itself to all the different ways that AI impacts retail: from product creation to assortment planning, forecasting, supply chain management, pricing, PIM, marketing and every other area of the complex retail ecosystem.

Along the way, we’re also starting to see some data emerge about the financial impact of AI in retail. Last month our friends at IHL Group released their Retail AI Readiness Profiles that measure the potential financial impact that AI can bring to retailers and restaurant chains.

As always, IHL quantified its findings with an impressive real-world analogy: according to IHL, Macy’s alone could see $7.5B in business gains from AI in the next 5 years.

What are some of the AI-driven tech trends to watch for in 2024? Here are just a few of the things we’re tracking; they’re just a small sampling of all the ways that AI will impact retail in 2024.

Personalization continues to get more personal

Retail is moving from personalization to hyper-personalization, delivering shopping experiences that “dazzle each shopper at scale,” according to Adobe’s annual research report, 2023 Digital Trends: Retail in Focus.

Currently, only 16% of retailers can personalize experiences based on customers’ interaction history, while only 9% provide personalized experiences based on shopper intent. There’s massive room for improvement, and AI is the critical technology that makes this possible.

AI helps combat retail’s labor shortage

Employee turnover in retail reached record highs in 2023, but a combination of AI, robotics, computer vision and other technologies can help retailers offset the impact of labor shortages by automating routine tasks.

For example, autonomous inventory robots can provide 24×7 inventory updates and help retailers keep their shelves stocked, reducing out-of-stocks and increasing sales.

Retail supply chains become more resilient with AI

One of the biggest technology lessons from the COVID-19 pandemic was that retail supply chains weren’t resilient enough to handle sudden supply chain shocks, from factory closings to rapid changes in consumer demand and the need for new fulfillment models.

AI is quickly helping change that. A recent Business Insider article notes, “Robots are helping fulfillment-center workers sort through large volumes of products, artificial intelligence is predicting the most energy-efficient delivery routes, and modern data-collection and analysis methods are helping retail stores optimize stock management. Retail-technology experts say that without these innovations, supply chains would struggle to function in the face of fast-changing customer expectations and turbulent economic times.”

Retail tech spending will increase in 2024

The examples above are just the tip of the iceberg when it comes to AI innovation in retail. And given the furious pace of AI innovation, it’s no surprise that Gartner predicts that 57% of retailers plan to spend more on software in 2024.

AI will certainly be a major driver in this trend, especially as retailers look at AI’s tremendous financial upside (IHL estimates that the overall economic impact for the top 212 North American retailers and restaurants will be $1.5 trillion for the next 5 years).

Ketner Group is fortunate to have a number of clients that are on the forefront of AI innovation, and we’re looking forward to exciting press announcements at next week’s NRF Show.

2024 will be a pivotal year for AI in retail technology, and Ketner Group clients will be a big part of the story!

Looking to make an impact with PR in 2024? The Ketner Group team would love to connect! Download our Retail Tech PR Handbook to learn more about our best-practice approach to retail technology PR or schedule some time with us!

interview dan, chain store age

Getting the Inside Scoop With Dan Berthiaume, Retail Expert and Senior Editor of Technology

Posted on | by Catherine Seeds

I think we can all agree that the retail tech industry is extremely lucky to have so many wonderful experts and content creators!

You may recall that I recently sat down with our friend Barbara Thau to get her take on industry trends and tips for PR folks.

For my next chat, I sat down with Dan Berthiaume, senior editor of technology for Chain Store Age to discuss all things AI, why he loves retail tech and his love of music.

Following are some excerpts from our conversation. Enjoy!

Tell me about your path to retail tech journalism.

I was an English major in college and knew that I wanted to do something that involved writing. I got my start as a small town reporter, working for a few weekly newspapers in the Metro West Boston area.

After a few years I felt like I’d taken small town journalism as far as I could, so I started looking around and found Retail Systems Alert Group, which was one of the biggest retail tech publishers at the time.

I joined as associate editor for the newsletter, and, as it turns out, joined at an interesting time for the retail industry! We were literally writing articles about why you should sell products online. At that point, the big “buzzword” was cannibalization – specifically around the concern that a sale made online was a sale taken away from a store.

In those years, I rose through the ranks and saw an enormous amount of change: the early days and struggles of Amazon, ecommerce turning into omni-channel, the rise of RFID, and of course mobile commerce.

After Retail Systems Alert Group closed its doors, I spent time as a freelance editor before joining Chain Store Age 2013 as their technology editor. I left Chain Store Age for a few years to work for a retail industry software company but rejoined the team at Chain Store Age again in 2019.

What is it about this industry that you enjoy so much?

Well to start, it is a very exciting place to be! To outsiders, you might think retail is just putting stuff on the “shelf” and selling it. But there is so much that goes into selling products.

There are things like merchandising, marketing, and managing the supply chain that come into play. It’s such a complicated process for what seems like a simple thing to the customer.

As well, there’s so much innovation in retail, and I think a lot of the top tech people, who wouldn’t have thought about working for a retailer 20 years ago, are now working in retail. It’s impressive how far the industry has come.

And it’s not just general retail that is innovating, the CPG side of things has really come into its own, too. When I started out in the industry in the late 90s, if a CPG company had their own promotion, they wouldn’t even tell the retailer about it. The backend communication just wasn’t there.

Now, technology is enabling real-time communication between all the partners in the extended supply chain. Overall collaboration has improved, thanks in large part to technology.

As retail journalist, what do you use an inspiration for writing your stories? How do you stay up-to-date on latest trends?

I’m very active online, so I’m always checking the news wires, different retailer websites and the leading business news sites. I also receive a ton of pitches from PR professionals like you all at Ketner Group!

Of course, industry events like NRF give me a good sense of what’s happening and what the big trends are. I also conduct a lot of Q&As with industry experts and retail practitioners, which I love doing.

The thing that is most important to me is to focus on writing content that I find interesting and exciting, because it is my hope that the reader will also find it equally as interesting!

I also try to take inspiration from my past writing as a sportswriter as well as my published short fiction writing to make my retail tech articles as lively as possible.

What retail technologies are you most excited about right now?

Well clearly AI has stolen the show!

The last time I saw a technology so overwhelmingly dominate the landscape was probably the emergence of smartphones. And before that, in the early 2000s, when suddenly people realized e-commerce was a necessary component to their retail strategy.

AI is the most dominant technology I’ve seen in the last 15 years. It will be an important component in every technology system and every part of the enterprise, and like mobile and omnichannel commerce, it will be a constant feature (not just in retail) and will just be assumed. 

Aside from AI, we are still waiting to see what is going to happen with blockchain and the Metaverse. We are also still waiting to see how social media will develop as a retail channel, and how AI will affect that. As I just said, AI is inevitable and is bound to play a major role in how retailers promote and sell products on their social media platforms.

Looking into your crystal ball – what do you think retailers will be focused on in 2024?

I think that the global supply chain is still heavily disrupted from the lingering effects of the pandemic, an increase in severe weather events and sadly from the instability in different parts of the world.

AI can provide a lot of assistance in the backend when it comes to trying to predict what are inherently unpredictable events. With machine learning, retailers can take data from all these disruptive events and have a better sense of how to react both in the moment and longer term. Additionally, they can use AI and machine learning to get a better sense of how to find alternate routes in the supply chain.  

I also think that retailers will be applying AI to help with labor issues, as there are just not enough associates in the store. What’s interesting is that retailers can use AI not simply to save money on labor or to reallocate labor, but literally to fill in the gaps where their employees just aren’t there. This could include implementing technology like inventory tracking robots and RFID-based product tracking.

What are you reading or listening to right now?

The last book I read was not a retail tech book at all! It’s a memoir called, “Searching for the Sound” by Phil Lesh of the Grateful Dead.

If I read off hours, I sometimes like to read something that just reflects my personal interest. I love The Grateful Dead and I love music in general. I have been a freelance music journalist, so I’m always interested in the stories, lifestyles and the “behind the scenes” of musicians.

Because I read so much about retail tech during the day, I often like to read something different at night!

speaking awards retail tech pr

3 Reasons Why Speaking and Awards Should Be Part of Your PR Strategy

Posted on | by Jeff Ketner

Texans love their H-E-B. The beloved grocer was recently named the Ultimate Texas Brand by Texas Monthly readers, who overwhelmingly crowned H-E-B the winner over 49 other iconic Texas brands including Dairy Queen, Whataburger, Buc-ee’s, Southwest Airlines (that holiday scheduling fiasco didn’t help) and many others.

Why H-E-B? It all boils down to an incredible corporate reputation that’s authentic and well-earned. It’s what every company, both B2C and B2B, strives for.

That’s why building a great brand is a cornerstone of public relations. As a B2B retail tech PR agency, our goal is to help our clients break through the clutter and create the kind of brand reputation that can give them an edge in a crowded field of technology vendors.

Speaking and awards play a vital role in this, and they’re an important part of a well-rounded, strategic PR program.

When your company wins an award or an executive is selected to speak at a conference, it sends a powerful message to customers, prospects, investors and future employees.

1. Build thought leadership

Here are several ways that speaking and awards contribute to a successful PR strategy.

Speaking at a key retail event gives your company instant credibility. When one of your customers or company executives takes center stage at Shoptalk, NRF or another prominent retail conference, you gain a captive audience that’s eager to learn about your solutions and how your company can help retailers improve performance.

Every event has its own requirements for speaking submissions, and while many opportunities are free, some are paid. Our team knows the ins and outs of all the key retail events, and we provide expert guidance to our clients as part of their overall PR strategy.

Awards also build thought leadership for your company and its executives.

For example, RIS News recognized Michael Jaszczyk, CEO of our client GK Americas, as one of its Top 10 Movers and Shaker in Retail in 2022, positioning him as one of a elite group of top retail influencers, and our client SymphonyAI Retail CPG was recently recognized as a top 100 IT company by Inbound Logistics, among many other awards.

These are powerful testimonies of a company’s thought leadership and position as a retail tech provider, and we can share dozens of other examples.

2. Highlight customer successes

Retailers love to hear how your company’s solutions have helped other retailers. There’s no better proof point than a customer that’s willing to share their success with your solutions.

Many speaking opportunities are only open to retailers, but it’s well worth it for retail tech companies to nominate their customers as speakers.

Retailers are eager to learn from other successful retailers, and your executives can attend the event and participate in the discussions that ultimately follow successful speaking opportunities. That in turn can lead to follow-up conversations and ultimately help drive sales.

Awards may focus on specific customer implementations, while others, such as the RIS Leaderboard, are based on real-world customer feedback from hundreds of retailers. This kind of recognition builds credibility and guides retailers in choosing possible retail technology partners. It can pay big dividends, too.

For example, when one of our former clients was acquired by a large technology company, the press release specifically mentioned our client’s outstanding performance in the Leaderboard, which was one of our key strategies for building their brand reputation.

3. Demonstrate growth and momentum

Everyone loves a winner. That’s why prestigious awards such as the Deloitte Fast 50 and the Inc. 5000, which recognizes America’s fastest growing companies, are so important. These are highly selective awards! But if your retail tech company is a leader and growing quickly, awards such as these can validate your success and lift you above the competition. We’ve helped many of our clients win these kinds of prestigious awards.

Of course, speaking and awards don’t exist in a vacuum – they must be part of a multifaceted, strategic PR program that includes media relations, content development, analyst relations, social media and other elements. A great PR program must work synergistically with a company’s overall marketing plan and business goals.

So when your company wins an award or secures a high-visibility speaking engagement, shout it from the rooftop!

Incorporate it into your social media and sales outreach, feature it prominently on your website and include it in sales presentations. In some cases, a significant award may be newsworthy enough for a press release.

Put your company in the spotlight

If you’re looking to build a high-impact, comprehensive PR program, the Ketner Group team would love to talk to you! Download our Retail Tech PR Handbook to learn more about our best-practice approach to retail technology PR, then get in touch with us.

We look forward to hearing from you.

domain diaries

Domain Diaries: My Day With In-Store Technologies

Posted on | by Catherine Seeds

In her latest audio blog, our president and CEO recaps some of the cool in-store technologies at the Domain shopping center in Austin, TX.

Transcript of “Domain Diaries” audio blog:

It’s times like this that I really love my job. In preparation for this audio blog, I recently spent some time cruising around the Domain, the landmark mixed-use retail development and current home to the Ketner Group Austin offices, to find the latest and greatest in-store technologies and experiences. I may have done a bit of retail therapy, too.

You may remember our founder, Jeff Ketner’s, blog about the Domain last April. So, we thought it would be fun to revisit our favorite shopping digs in the ATX to see the impact that technology has on the shopping experience. 

I’m happy to say that the Domain did not disappoint! 

While we could certainly write an eBook on the growing innovation with in-store technologies, as there are so many to choose from, today we take quick look at three different experiences:

1. Amazon/Whole Foods palm payment

First introduced in 2020 and expanded to over 60 locations in 2022, the Amazon “One” palm scanner payment technology offers a contactless way for Whole Foods shoppers to checkout and pay faster. And all via a shopper’s palm.

I had not signed up for the service but was able to do so in less than a minute at one of the store’s checkout lanes. All I had to do was provide the form of payment I wanted to use for the purchase. Then, as Amazon describes, “using a process of proprietary imaging and computer vision algorithms” the palm reader was able to quickly capture and encrypt the images of both of my palms. 

Now, any time I make a purchase at Whole Foods, all I need to do is hover my hand over the scanner to complete the transaction. Very convenient.

But, as you can imagine, the in-store technology is not without controversy. More convenient shopping often means giving up more personal data, which means more privacy concerns. 

Back in 2021, a group of U.S. senators had concerns about the palm-scanning technology. In an open letter to Amazon chief executive Andy Jassy, the senators said, “In contrast with biometric systems like Apple’s Face ID and Touch ID or Samsung Pass, which store biometric information on a user’s device, Amazon One reportedly uploads biometric information to the cloud, raising unique security risks.”

Of note, more retailers and restaurants are making the move to contactless palm payments, including Panera Bread and Starbucks. 

2. Reformation magic fitting rooms

I must admit, this was my first time shopping at a Reformation store, and I’m definitely a fan now.

The shop is a showroom concept, with one of each item on the floor and touchscreens available to find my size.

As I mentioned in my subscription box blog, I am a big fan of apparel stores with curated, easy-to-find items, as opposed to going through racks and racks of clothes. I was in heaven.

On this visit, the store wasn’t busy at all, so one of the staff members was able to help me right away. I picked out two dresses to try on and within a few minutes, my two dresses in the right size were ready in the magic fitting room in the magic wardrobe. 

This is where the fun began!

The Reformation dressing room comes with a touchscreen iPad, allowing me to search and request another size or style. Once I did that, a new item magically appears in the wardrobe! The dressing room also has customizable lighting, ranging from cool to hot. 

As Reformation describes it, the showroom concept allows them to “gather customer insights, and therefore better forecast inventory and plan based on what is actually desired. This allows us to deliver exactly what customers want on a localized level.”

What’s more, it also allows the retailer’s in-store staff to have a “strong direct connection with our shoppers” and “build a more tailored relationship with them, delivering only insights that feel most relevant.”

3. Kiehl’s healthy skin consultation

I rounded out my in-store technologies walkabout at the Kiehl’s store, which I have shopped at frequently, but had never taken advantage of its in-store skin consultations. 

I was on the hunt for a new skin serum. After looking through a few options, the store associate (aka Skin Pro) offered to do a hydration test using the retailer’s skin reader technology via a sleek wand.

Within seconds, she could tell me the hydration levels and firmness of my skin. This helped me to find the perfect skin serum. I also found a better moisturizer to complement my new serum.

Kiehl’s does offer more in-depth skin analysis that helps customers identify areas of strength and concerns to target such as fine lines and wrinkles, visible pores, and eye area concerns.

I will be back to take advantage of that when I have more time. Until then, my customized serum is working like magic!

Shopping with a technology twist

I know I’ve only scratched the surface when it comes to in-store technologies, and I plan to dig in and find more as time (and my credit card) allows.

I’d love to hear about any cool in-store tech you’ve seen recently! 

The Ketner Group team loves to talk retail! Give us a shout to learn how our retail expertise can help elevate brand awareness and support your marketing goals.

subscription box trend

Subscription Boxes – In or Out?

Posted on | by Catherine Seeds

As I type this, the weather is a beautiful 83 degrees in Austin, TX. This means that I’m wearing one of my favorite Spring dresses from last year. It’s yellow with blue flowers, has the perfect size and cut of spaghetti straps, with an empire waist that “slims” me in all the right places. In fact, when taking my son to the orthodontist today, I received two compliments! 

It’s days and outfits like this that put a little extra spring in my step! 

So where did I get this dress, you ask? It came from my latest shopping obsession over the last few years – the subscription box.

My path to personalized shopping – the subscription box

Confession time. I subscribe to two different subscription boxes once a month – the tried-and-true StitchFix and Daily Look.

For years, I avoided these services because I didn’t want to commit myself to recurring charges. Plus, I was a little unsure of having someone else do the shopping for me. 

It wasn’t until my very good friend starting raving about her subscription services, and how much fun it was, that I slowly started coming around to the idea. 

If I’m being honest, the real reason I moved towards subscription boxes was because I had become extremely stressed and overwhelmed by the whole shopping experience.

As a working mom of two, time is a luxury. I wasn’t thrilled about spending hours helplessly combing through racks and racks of clothes, only to end up empty-handed. Which is exactly what was happening. I found myself not enjoying the retail experience at my favorite apparel stores like I used to. There were far too many options and none of them seemed just right for me.

But not all was lost. 

(Quick sidenote, in addition to jumping on the subscription box bandwagon, I started spending more and more time, and money, at a local Austin-area apparel boutique, Grit & Grace, co-owned by a college friend. The concept of her shop, and many others, is simple and brilliant. A smaller, curated selection of beautiful and trendy clothes and only offering one to two of each size per item. With this approach, I knew it was highly unlikely that I would be wearing the same outfit as other people in my town. I was also supporting a local business. Perfect!)

The joy of the box!

After doing my research and comparing the styles, prices, and customer reviews at the wide variety of subscription box options, I took a chance and subscribed to the aforementioned StitchFix and Daily Look.

For me, this new approach to shopping has been a gamechanger, as it has for millions of other subscribers. Each month, my “personal stylist” sends me curated apparel and footwear items to select from. Then, I send back the items I don’t want to keep. Easy!

Even though I typically know what is going to be in my boxes, due to the preview feature that both companies offer, it still feels a little bit like Christmas morning every time a box is delivered to my front porch. It’s made shopping fun again.

What’s more, I’m excited now about the items in my wardrobe, and I love the compliments. I only wish I had started the service sooner.

Challenges ahead for subscription box companies

As much as I have raved about my experiences so far, there have been a few bumps in the road. For each service, it took a good six months and a few personal stylist changes to get things right.

For example, I have short legs, so I am very particular about the length of my jeans and shorts. I must remind my stylist from time to time about this and other preferences that I have. Some boxes have missed the mark completely and I have to send everything back. 

Even with all of this, the time I’ve gained back and the quality of clothes I’ve accumulated over the past few years more than outweighs any mistakes or misses in my service.

But there are challenges ahead for these services.

Research shows that the subscription ecommerce market is projected to reach over $450 billion by 2025, up from $15 billion in 2019. Impressive numbers, but can they be sustained?

According to CNBCs Lauren Thomas, “Not that long ago, major retailers were scrambling to get in on the subscription craze sweeping the apparel industry. But then the pandemic upended daily routines and made shopping behaviors far less predictable. Now, some analysts and investors are questioning the appeal of these types of businesses and their ability to hold onto customers, who often sign up during a big life change but eventually lose interest.”

Battling subscription box fatigue

While this hasn’t been the case for me, the stats do show that many shoppers are experiencing box fatigue. Many are rethinking their investments in subscriptions in general:

  • Over the last year, Stitch Fix has lost 95% of its value as the company’s attempts to expand beyond subscriptions have floundered.
  • M Science, an analytics firm, says new customers account for a predominant share of sales at Stitch Fix, but their spending generally drops off over time. Roughly 40% of Stitch Fix’s revenue has been generated by new customers since its fiscal first quarter of 2020, the firm found.
  • Data from Kearney shows that 40% of consumers think they have too many subscriptions. The survey indicated that the most spending is on streaming plans, followed by music and video subscriptions, gaming, food memberships, and beverage boxes. Shopping subscriptions, which includes fashion, came after all of those categories.

What does the future hold for subscription boxes?

Time will only tell how things will shake out with these services, but things look a bit bleak right now.

As recently reported in RetailWire, Blue Apron and Rent The Runway announced layoffs last year while restructuring. Birchbox announced in November it was considering bankruptcy. 

The Atlantic reported last year that “the subscription space was undergoing a shakeout.” Columnist Amanda Mull wrote, “As more markets become oversaturated with these kinds of services, more buyers will get bored of the concept entirely, and investors will eventually become weary of waiting for profit.”

As a new fan of subscription boxes, I am saddened to hear this. But if the business model doesn’t work or excite shoppers, then their long-term viability is at risk. 

In my own personal experience, it hasn’t always been perfect. But as far as I’m concerned, it sure beats the alternative. And have I mentioned the compliments I receive when wearing one of my new subscription box outfits? 

All kidding aside, I hope that these companies continue to evolve and adapt to ever-changing consumer behavior. It won’t be easy. I’ll leave that part to the experts, save one suggestion: be sure to keep the “joy” of personalized shopping with a monthly or quarterly box of new apparel items at the center of every decision. That’s what brought me here in the first place, and what will, hopefully keep me sticking around.

If you have any comments or insights on subscription boxes, our crew would like to hear from you! The Ketner Group team loves to talk retail! Give us a shout to learn how our retail expertise can help elevate brand awareness and support your marketing goals.

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A Passion for Fashion Tech: Speaking with Jackie Trebilcock with the NY Fashion Tech Lab

Posted on | by Catherine Seeds

I don’t know about y’all, but after spending months at home during COVID, I was thrilled to be back in “real clothes” and out of lounge wear. Fashion retailers were ready to have us back, too, and technology played a significant role in driving consumers back to their favorite brands. 

In fact, according to McKinsey & Company’s 2022 State of Fashion Tech Report, fashion companies invested between 1.6 and 1.8% of their revenues in technology in 2021. That figure is expected to rise to between 3.0 and 3.5% by 2030.

There are so may innovative things happening in fashion tech, and specifically, with women-led tech startups. I just had to go directly to the source of this innovation and learn more, again!

I spoke with Jackie Trebilcock, managing director for the New York Fashion Tech Lab (NYFTL) back in 2020. We recently had a chance to catch up with her again, and what a treat that was!

Founded in 2014, the Lab connects a cohort of women-led B2B, fashion and retail-focused technology companies that are fostering iteration, validation and acceleration of technologies to advance the industry.

I had a blast learning even more about the Lab and what Jackie and her team are doing to support women-owned tech companies. Enjoy our conversation!

For those readers who don’t know you, can tell us a little bit about you and your journey to the Lab?

I joined the New York Fashion Tech Lab at the end of 2014. They were looking for someone to run the cohort that was launching for 2015.

I’ve worked in fashion for over 20 years, and I’ve been an entrepreneur myself, so I understand both sides of it, which is why I was so excited when I had reached out to the Lab’s parent company, Springboard Enterprises. I just thought what they were doing was so cool and I wanted to learn more. And here I am, many years later.

What was the catalyst for the creation of the Lab, and why the focus on women-led companies?

Founded in 2000, Springboard Enterprises is a nonprofit organization specifically focusing on women-led companies. Springboard runs a myriad of programs (i.e., bootcamps, accelerators, etc.) in a wide variety of sectors such as life science, biotech, women’s health, general tech and ad tech. 

In 2014, when they were looking to expand into different sectors. They realized that the fashion and retail industries were a bit behind some of the advancements they were seeing in technology in those other industries. That’s when the NYFTL was born!

I describe Springboard as a venture catalyst because their main mission is to help give women resources to raise money and grow and scale their companies. The Lab does that too, but we are more of a business catalyst. We are in partnership with leading retailers and brands that are looking to keep their finger on the pulse of new technologies that address pain points or take out an area of friction for them.

I would love to hear your insights on innovation and the changes that you’ve seen in the fashion tech industry since you’ve been with the NYFTL.

It has been exciting to see the progress that’s been made within the industry over the past eight years. In the beginning, we were mostly engaging with CTOs and CIOs because that’s where technology really sat at some of these larger retailer and brand partners.

Now, there are so many different points of contact within these retailers and brands. We often engage with CMOs, innovation leads, digital strategy, or eCommerce. It’s really everyone’s job to know what’s out there from a technology standpoint. Tech is everywhere and in everything!

We’ve become another way for fashion retailers to keep their finger on the pulse and to do it together. It’s important that they feel like they are not doing it in a silo, but as an industry.

I would imagine that all this work and the things that you’re doing at the Lab inspires you every day!

Yes! I think I have the coolest job in the world as I kind of get to sit in the middle of being in contact with retailers and brands, understanding what’s happening there, and getting the opportunity to meet inspiring women creating these awesome and needed solutions for this industry.

My personal mission with all of this is to be a connector for our retail and brand partners, the alumni companies, the companies in the Lab, and for the industry in general. It’s exciting to see what can happen when you make that connection.

Can you provide a few examples of how the Lab has helped to propel women in fashion tech forward?

We’ve had 69 companies go through the program since its inception. We’ll be onboarding another group of Lab companies for 2023. What we have seen and what we track with the Lab companies are the partnerships and pilots that come from the program, which happens all the time.

There is also so much that can come from candid feedback from the retail executives as part of this program, which can save the startups so much time as they continue to build and iterate on their product. We also have another network of 80 industry experts, entrepreneurs and investors that they get to connect with and get feedback from, and of course opportunity for investment.

The Lab is an ongoing community that is part of the companies’ entrepreneurial journey – whether they are looking to hire, pivot, get acquired or fundraise.

As you look ahead in your crystal ball, what are you most excited about with regards to the fashion tech industry?

On our website, we have this whole list of “areas of interest” and it’s something that we are constantly adding, removing and refining. What excites me most are the things that we don’t even know exist!

If you think about the very buzzy tech trends, like NFTs and Web3, they didn’t exist before a few years ago. I know there will be other new innovations and advancements like that. It’s exciting to think that we are going to get to uncover them, spend time learning about them with the retail and brand partners and make them part of our areas of focus.

I agree you do have the coolest job in the world! As we wrap up, what opportunities are available for anyone interested in becoming more involved with NYFTL?

Application for our 2023 program has already closed, but if you are an entrepreneur interested in applying for the Lab for next year, I recommend getting in touch with us as soon as possible. We start connecting with and tracking companies very early.

If you’re a retailer or brand that wants to learn more about becoming involved, it’s a great time now to potentially join us for 2023, or we can do sessions with you so you can meet some of the alumni.

We also have an active expert network made up of industry experts, entrepreneurs and investors that connect in with the Lab companies as part of the program.

How can we learn more?

To learn more about the NYFTL, email info@nyftlab or visit https://nyftlab.com/.

announcing retail tech pr handbook

Announcing the Retail Tech PR Handbook: 3 Key Takeaways

Posted on | by Jeff Ketner

Retail technology is evolving at at an increasingly rapid pace, and that’s good news for retail tech companies. According to IHL Research, this acceleration creates a once-in-a-lifetime opportunity for technology companies, as retailers embrace new solutions.

Now is the time for retail tech executives to seize the day and capture attention through strategic PR and communications initiatives.

The question is how?

Enter our eBook! Today, we’re excited to announce the launch of the Retail Tech PR Handbook.

As experts in retail tech PR, we wanted to give our clients an all-encompassing resource that covers everything we’ve learned over our 20+ years experience in this fascinating industry.

The eBook is a blueprint on how to create and execute fantastic retail tech PR strategies. And in celebration of its launch, we’re offering three key takeaways below.

1. Do your homework.

Before launching your PR program, assess if your company is prepared.

Some key questions to ask include: What are your PR goals? Do you have the marketing resources and people needed to help manage your PR strategy internally? Are you ready to commit to PR for the long run?

Successful PR is an integral part of your overall marketing mix. Doing your homework will ensure that you’re prepared to dedicate the right internal and external resources.

2. Craft a compelling story.

Storytelling is at the heart of media relations, which relies on convincing an editor to write about your solutions by crafting a strong, compelling narrative. In turn, these editors’ publications influence who will buy your products.

We recommend evaluating your messaging and value proposition for clarity before executing your media strategy. We also recommend selecting a great partner to help you craft your compelling story.

3. Create a PR plan.

PR plans are like driving directions for a road trip: you need to know what turns to take to arrive at your destination. You also need to leave some wiggle room for stopping for gas along the way. Some of those turns and exits will come soon, others won’t happen until much further down the road.

Your PR plan should include PR activities that are built into the plan well in advance to make the most out of long-lead time opportunities, such as trade shows, awards, product launches, research projects and any seasonality to your retail brand.

In addition, your PR plan should incorporate pit stops, or the necessary wiggle room set aside each month for unplanned activities like incoming media and analyst relations requests, company news, and more.

Keep learning about retail tech PR

Ready to learn more about how to create a top-notch retail tech PR strategy? Fantastic!

You can download our eBook here. Happy reading!

jerry sheldon ihl group

From Electric Cars to Customer Journeys: Talking Retail with IHL’s Jerry Sheldon

Posted on | by Jeff Ketner

One of the things I love about working in retail technology PR is the chance to develop friendships with so many of the clients, editors and analysts we work with at Ketner Group.

That’s certainly the case with our friends at IHL Group, who helped me learn my way around the retail tech world 20+ years ago.

I recently had the chance to interview IHL analyst Jerry Sheldon about the current state of retail, what’s ahead for the rest of 2022 and why he thinks electric cars could be a disruptive force in retail.

Following are some excerpts from our conversation. Enjoy!

Inflation and recession are the top concerns for the U.S. economy. How is this impacting retail, and what are some of the other headwinds facing retailers in the second half of 2022?

The impact of inflation on consumers is a tale of two cities. If you’re above the median income, your stock portfolio has been hit, but inflation isn’t impacting your day-to-day quality of life.

However, if you’re below the median income, the rising price of gas, food, and other essentials has a significant impact.

In addition to inflation and fears of recession, there are the uncertainties of supply chain challenges, the war in Ukraine, chip shortages and the lockdown in Shanghai due to COVID. As a result, retailers will face a number of headwinds in the coming months.

You’ve expressed concerns about how the lockdowns in China could affect retailers and retail sales for the remainder of the year. Can you elaborate?

As Shanghai reopens, it’s going to take time for manufacturing to get back to normal.

There is a huge backlog of container ships queued up at the port waiting to be loaded, along with pent-up demand to get product to the U.S. In an effort to catch up, shipping levels will be much higher than usual, which will create a logjam at ports of entry.

What happens when all those container ships arrive at in Long Beach? We have rising gas prices, a shortage of long- and short-haul truckers, and limited capacity to unload these container ships.

I’m concerned about the impact of all this on Back-to-School shopping. Schools have re-opened, so there will be a lot more kids returning to the classroom and demand could easily exceed supply.

Inflation will likely continue to be a problem. The food sector has been hit hard with inflation, there’s a massive shortage of cars, and now inflation could spread to the apparel sector.

I hope all this can be rectified before the Holiday shopping season.

IHL has always been a big proponent of unified commerce. Why is it so important for retailers in the post-COVID era?

We published research on unified commerce and optimized customer journeys in January 2020, and then bam! Here came COVID. It’s ironic to see how our findings played out.

During COVID, big box stores had a huge uptick in revenue, and we saw some amazing comps. But if you look at gross margins, they only slightly improved.

The reason is, you had a big shift in how customers were shopping, and retailers had to support a number of fulfillment models that weren’t profitable. (Note: see chart below). There were significant erosion in profit margins, which creates a big opportunity for technology vendors.

Order management, for example, became very important because retailers had to quickly determine the most profitable way to fulfill an order. Do you fulfill it from your store? Do you fulfill it from your warehouse? How do you ship it?

The importance of mobile devices in retail continues to grow. Can you briefly describe the shift you’re seeing in mobile usage?

Mobile is an interesting example of how retailers are adopting technology. Mobile 1.0 and 2.0 were embraced in particular by smaller retailers that adopted mobile devices as their transaction platforms.

Then with COVID the customer journeys changed, with more curbside, ship from store, etc., and mobility helped support this.

So while we saw a significant shift to mobile POS for SMBs, the really big adoption happened in the enterprise space, helping Tier 1 retailers support the new customer journeys. That’s why we’re calling it Mobile 3.0, which we reference in our report on enterprise mobility.

The past few years have seen significant increases in retail IT spending. As retailers implement new technologies, what are some of the pitfalls to be avoid?

Retailers need to be careful to not overlook security. Every internet or network connected device is a potential entry point for bad actors.

All the IoT devices in stores today are potential entry points into the network, and if they’re not secured properly, it can be problematic. There are potential pitfalls in something as simple as electronic shelf labels.

In our research, we have found that there were a lot of security holes that were opened up as a by-product of bringing devices onto the network in a pretty rapid fashion during COVID.

Looking ahead, what are some of the retail trends you’re thinking about long-term? What’s going to be different 5 years from now?

Electric cars will have a profound impact on retail. Supercharging an electric car takes 30 minutes. How does that affect road trips and where you might stop because of supercharging? How does that affect customer visits and dwell time at gas stations, shopping malls and grocery stores?

How retailers accommodate electric cars could be a big differentiator; this could also give consumers a reason to return to shopping malls. Whereas a gas station can accommodate only a handful of cars, malls could have hundreds of charging stations. Why should consumers queue up at a gas station with limited charging stations when they can go to an air-conditioned mall with numerous restaurants and retailers?

Shopping malls could potentially disintermediate gas stations and provide shoppers with the kind of customer experience that creates long-term loyalty. Electric cars have the potential to impact nearly every retail vertical.