PERSPECTIVES

The fanfare surrounding Artificial Intelligence can be reminiscent of breathless advertisements for do-everything kitchen gadgets: "But wait! There's more!!"

Amidst all that, we were intrigued to read about Scott Tannen*, the CEO and co-founder of the luxury bedding and home brand Boll & Branch. The company launched in 2014 as an online-only direct-to-consumer brand. 

• "When we first started the business, I don't think we ever envisioned having any physical stores whatsoever," said Tannen. Then, in 2018, they opened their first permanent store. "We saw this massive performance change in the business, because customers could touch and feel the products," Tannen discovered. 

So Boll & Branch added more stores, and recently has turbo-charged their brick-and-mortar strategy. In just the past year, they have grown from 8 stores to 15. 

But here’s what captivated us: how they decide on store locations.

They use Zillow.

As you have recognized, our commentary is usually inspired by current events. And that means that our intentions of what we discuss can change any day.  

For instance, we were expecting to talk about 3 or 4 examples of folks "seizing the moment" that we had seen earlier this week. Great reminder for retailers.

Then, just this morning, we saw an article about a nationwide Gallup study of what constitutes a "quality job - such as providing fair pay, having predictable schedules, and offering opportunities to grow and advance."

• "Traditional labor statistics track how many people are employed and what they earn—but they don't capture the aspects of work that drive employee and business success." 

• The Gallup American Job Quality Study* surveyed more than 18,000 workers across industries, geographies, and job types.

"Retailers are sitting on a pile of goods. Now the question is, will the U.S. holiday shopper bite?" reported Jennifer Williams in the Wall Street Journal. 

• "The risk heading into the crucial holiday shopping season is that inflation-wary shoppers won't spend as much or will buy fewer items because prices are higher," she noted.

Similarly, Michael Brandt of Inovium expects "weakening growth in discretionary retail (electronics, fashion, home furnishings.)"

• "Consumers may pull back on big-ticket items, delay refresh cycles, or trade down in brands."

When you’re running a store, your days are already packed with ringing sales, juggling vendors, calming staff, and keeping the lights on. 

That’s why so many independent retailers have been slow to jump on past waves of technology — e-commerce platforms, fancy POS systems, or social media dashboards. The tools were costly, fiddly, and frankly, not built for stores like yours.

But here comes AI. Might this wave be different?

• It’s accessible. No IT department needed; a curious owner can try it on their laptop tonight.

• It’s fast. From drafting an email to analyzing last month’s numbers, AI can take the drudgery out of tasks that bog you down.

• It’s (relatively) cheap. Many AI tools cost less per month than a case of shopping bags.

What Is “Value” For Your Customers? Really?!

Walmart's announcement that its prices are increasing due to the tariffs is welcomed by some retailers as an "everybody is doing it" cover story for raising their own prices. They can recommend that their staff just dismissively say, "Oh, it's because of the tariffs, you know," whenever customers challenge them about the price of an item.

That approach, commiserating with the customer, is likely to become widespread. After all, we all are feeling the impacts of higher prices, from the gas station to the grocery store. 

But here's another idea for you to consider, an alternative to the victim mentality of the-tariffs-made-us-do-it. It all comes back to controlling the controllables in your business.

• "They say there’s nothing quite like retail therapy, but what happens when online shopping just feels like it’s lost its spark?” asks Jeena Sharma in Retail Brew. 

• “Well, more than 3 in 4 consumers say that while e-commerce is ‘functional,’ it’s just not fun anymore, a new study by Criteo found."

According to "The Spark Of Discovery" report by global marketing and media company Criteo, who surveyed 6,000 consumers in six different countries, shoppers describe online shopping...

• as a chore, 29%

• as lonely, 79%

• as overwhelming, 78%.

Ouch!

When do shoppers prefer ecommerce? No surprises there either:

• Save time, 48%

• Easier price comparison, 45%

• Avoid crowds, 38%

• Better discounts, 38%

• Broader range of products, 34%

The report went on at some length to propose how ecommerce businesses could imitate the best practices of specialty retailers.

One little pig built his store out of straw.

He believed that the best way to survive in retail was to focus on top line growth. And lots of inventory.

But…the winds of competition blew his store away.

The second little pig built his store out of sticks.

He believed that the way to prosper was to focus on high initial mark-up, skimping on operating expenses.

So…the winds of competition blew his store away too.

Meanwhile, the third little pig built her store out of brick!