In this week’s retail news, Google Ads introduces an 11-year data retention limit, urging advertisers to retrieve older data before the November 13th deadline. Guess enters the circular economy with its new ecommerce recycling program. McKinsey & Company’s latest survey reveals that supply chain issues remain a major challenge for retailers, while a recent poll shows that marketing leaders are reducing their social media spend. Plus, Amazon's new AI shopping guides aim to simplify product research and help consumers make smarter buying decisions. Stay tuned for the latest commerce and retail updates in our weekly blog.
David Kaufman, Global Head of Monetization Product Solutions at TikTok, said, “TikTok is building for the future. We have been listening, learning and innovating with our advertiser partners to continuously develop solutions that deliver performance. The company is also expanding its measurement capabilities, offering Conversion Lift Studies to help advertisers assess the real impact of their TikTok campaigns. The platform’s Privacy-Enhancing Technologies (PETs) also ensure privacy-first measurement. With over a billion users, TikTok aims to bridge the gap between entertainment, discovery and commerce and help advertisers convert engagement into measurable results.
Google has announced new AI-powered video creation tools within Product Studio, allowing marketers to generate high-quality, dynamic videos from existing product images quickly.2 This feature enables merchants to select a product, choose a video theme and customize elements like audio, headlines and product callouts. According to Google, the tool will "enhance images, highlight product attributes and match brand guidelines," helping advertisers promote their products more effectively. These videos can be downloaded for use across ads campaigns, Merchant Center, websites or other marketing channels.
To start using the feature, marketers must set up brand information like colors and logos in Google Merchant Center Next. From the "Products" page, users can navigate to "Product Studio," select a product and customize the video with various add-ons. Video generation takes a few minutes, offering both high-resolution and low-resolution download options for different use cases.
Currently, this tool is only available for U.S. merchants, but Google plans to expand to more countries soon, just in time to help marketers prepare for the busy holiday season by saving time and resources.
Sam’s Club is set to unveil its first all-digital store in Grapevine, Texas, offering a glimpse into its tech-driven future.3 The Walmart-owned membership club will rely on its Scan & Go smartphone app for checkout, eliminating traditional lanes. Instead of registers, the space will feature displays for online-only items, such as a 12-foot Christmas tree and a five-carat diamond, with QR codes for easy purchase.
"This is the physical manifestation of a journey we’re trying to go on as a company," said Sam’s Club CEO Chris Nicholas, previewing the club’s innovative approach. The store will also have 6,000 square feet for ecommerce orders, a significant increase from the typical 1,500 square feet. Nicholas emphasized the company’s goal of 100% digital engagement, adding, “It feels like what it’s like to shop in the future.”
The new store design is part of Sam’s Club's strategy to differentiate itself from Costco by embracing ecommerce and tech solutions, such as Scan & Go, which streamlines checkout. Sam’s Club plans to expand, with 30 new locations expected over the next five years.
Google Ads has announced a new data retention policy that will take effect on November 13, 2024.4 Under the new policy, account data – including performance metrics, billing information, and historical reports – will be retained for a maximum of 11 years. As a result, users will only be able to access data up to 11 years prior to the API request date when using the Google Ads API to retrieve data via GoogleAds.Search or GoogleAds.SearchStream. Data older than that will no longer be available.
Google advises users who need historical data older than 11 years to retrieve and store it before the policy takes effect. No other actions are required, as the update will be applied automatically. However, users may notice differences in their reporting due to the changes in data availability. Users are encouraged to contact Google Ads through the official forum for any questions or concerns.
GUESS has launched GUESS Again, a customer recycling program in partnership with SuperCircle, a textile recycling platform that powers consumer trade-ins for leading brands.5 The initiative is part of GUESS’s commitment to sustainability and circular business models.
Carlos Alberini, CEO of GUESS, said, “Our partnership with SuperCircle represents another strong step toward our ACTION GUESS commitment to develop more circular business models. GUESS Again creates a new pathway for us to reduce our carbon footprint and offers a solution for apparel and textile waste.”
Through the program, customers can bring in five or more clothing items from any brand to GUESS stores in the U.S. and Canada for discounts on future purchases. Starting October 10th, U.S. customers can also request shipping labels online to send worn items for recycling, managed by SuperCircle.
Chloe Marie Songer, CEO of SuperCircle, said, “We’re thrilled to bring seamless, incentivized textile recycling to climate-conscious GUESS fans everywhere in a program that is a win-win-win for the brand, the consumer, and our planet.”
The National Retail Federation (NRF) projects steady holiday sales growth for 2024, with spending expected to increase between 2.5% and 3.5% over 2023.6 This would bring total holiday spending in November and December to between $979.5 billion and $989 billion, compared to $955.6 billion last year.
“The winter holidays are an important tradition to American families, and their capacity to spend will continue to be supported by a strong job market and wage growth,” said NRF President and CEO Matthew Shay.
Online shopping will play a significant role, with non-store sales expected to rise between 8% and 9%, reaching up to $297.9 billion, an increase from $273.3 billion in 2023. Despite economic challenges, NRF Chief Economist Jack Kleinhenz remains optimistic, noting, “Household finances are in good shape and an impetus for strong spending heading into the holiday season, though households will spend more cautiously.”
Retailers are expected to hire between 400,000 and 500,000 seasonal workers, slightly down from 509,000 last year. The holiday shopping period will also be shorter by five days, lasting 26 days between Thanksgiving and Christmas.
A recent survey revealed that 94% of supply chain executives are facing shrinking delivery windows, typically two days or less.7 Customer expectations for fast delivery have shifted dramatically, with the majority now expecting their orders within one to two days. For larger items like appliances and furniture, customers may tolerate an extra day, but fast delivery has become the norm.
The survey also found that fast delivery boosts sales conversions, with respondents reporting a 47% median increase when offering two-day delivery. However, doing business through online marketplaces is becoming costlier, with 93% of executives noting rising fees, increasing by 5% to 20%. The main takeaway from the survey is that fast and reliable delivery has become essential for companies to remain competitive in today’s market.
According to McKinsey & Company, global supply chains continue to face significant disruptions, from missile attacks in the Red Sea to production delays following European floods.8 Trade tensions are also throttling the movement of semiconductors and essential materials. McKinsey's latest Global Supply Chain Leader Survey reveals that nine in ten respondents experienced supply chain challenges in 2024. "There are signs that, when it comes to supply chain resilience, companies are taking their foot off the gas," McKinsey notes.
Despite progress – 73% of companies report success with dual-sourcing, and 60% are regionalizing supply chains – momentum is waning. Investment in supply chain digitization, which surged from 2020 to 2023, is now plateauing. Advanced planning systems, crucial for resilience, are only fully deployed by 10% of businesses. Another critical concern is the lack of engagement from senior leadership. Only 25% of companies discuss supply chain risks at the board level, leaving organizations vulnerable to future disruptions.
McKinsey urges companies to refocus on resilience efforts by accelerating digital transformation, building internal talent and ensuring that supply chain risks are consistently addressed at the executive level to stay ahead of future crises. Without these actions, companies may face serious vulnerabilities in the years to come.
A recent bi-annual poll of U.S. marketing leaders reveals that social media investments have plummeted to their lowest level in seven years.9 According to the Spring 2024 edition of the CMO Survey,10 social media spending fell from 17% of marketing budgets in 2023 to just 11% in 2024, marking a significant decline from its pandemic peak of 23%.
While digital channels have continued to grow, social media’s diminishing returns have prompted marketers to seek alternatives. The crowded marketplace, overwhelmed consumers and difficulties proving social media’s direct impact on sales (ROI) are major contributing factors to the drop. In addition, the rapid rise of retail media, offering more targeted advertising opportunities, diverts attention and dollars away from social platforms.
Despite this downturn, experts suggest there are still opportunities to innovate. Marketers can maximize engagement by leveraging new technologies like AI for content creation and personalizing social media interactions. Integrating social media with other digital channels and experimenting with influencer collaborations may also provide a path forward for marketers seeking to revitalize their social media strategies. As new marketing tools evolve, companies need to focus on creativity and agility to harness the potential of social media.
Amazon has introduced AI Shopping Guides to simplify product research, using generative AI to offer personalized shopping guidance and recommendations across more than 100 product categories.11 The guides help customers quickly find relevant information and product options for items like TVs, running shoes and kitchen appliances. The AI Shopping Guides reduce the time spent researching unfamiliar products by consolidating details about key features, customer insights and top picks.
These guides, available on Amazon’s app and mobile site, provide tailored recommendations using Amazon's large language models (LLMs). This technology ensures that the product information remains up-to-date ad adjusts to new trends and customer preferences. Shoppers can also access Amazon’s AI assistant, Rufus, for additional queries to help further streamline the decision-making process. The guides are designed to enhance the shopping experience, allowing customers to transition from learning to purchasing seamlessly.
Amazon's AI Shopping Guides are part of the company’s broader effort to integrate AI into its platform, aiming to make product discovery faster and more efficient for users in the U.S. with plans to expand further in the future.