Last week I met with JCPenney CEO, Marc Rosen, and some of his team including Chief Merchandising Officer, Michelle Wlazlo. We walked one of the stores JCPenney has refreshed as part of its $1 billion turnaround program. 🧵 Of course, when any executive visits a store, it is bound to look good. Shops prepare and ensure everything is on point. However, having visited the store before its update, it is clear that improvements have been made and, all in all, they do provide a better shopping experience.

Meanwhile, over at Macy’s there’s a VIP sale. When you think of VIP, what comes to mind? Exclusive? Luxury? Chic? Sophisticated? Rarified? Well, let’s see how Macy’s defines it… Bland.

We’ve just published some new research, supported by Amazon, on shopping habits during the pandemic. It corrects some of the myths and misinformation about how retail is changing. Here are ten highlights... First, online sales rose sharply during the pandemic. But the channel did not dominate. Most sales during the peak of lockdown were still made at those physical stores that remained open (September onward are forecasts).

There are some very interesting (and some wacky) ideas of how retail will change after this crisis. Here’s a hint: in the long term anything that increases friction for retailers or shoppers just won’t fly. Anything which removes comparative or competitive advantage from retailers probably won’t fly. Retailers will share certain systems and platforms but they won’t want to share all of them.

We have been actively researching what coming out of this crisis looks like for retail.

Once the lockdown is over, some Americans will go out and splurge. But most will not.

Many have lost jobs, had wages suppressed, and are worried about their finances. They will cut back. In other questions, we have found that some Americans - mostly older - feel concerned about going out even when the lockdown is lifted. Their spending will also be suppressed post-lockdown.

For a lot of consumer groups, it will take time before spending normalizes.

CVS still trades as Longs Drugs in Hawaii. It acquired the chain back in 2008 but rebranded all the mainland stores (primarily on the West Coast) to CVS. Hawaii stores retained the name because of the strong local affinity to the brand. Sadly, there’s nothing special about the stores. They’re merchandised in CVS’s characteristic uninspiring style!

Stopping for a lil bit of research (and some snacks)! Whole Foods Kailuah has been refurbished since we were last here. Amazon has done a nice job. The visual appeal is much improved - and has a nice local feel!

In 1985, US department stores took 14.5% of all retail spend. Last year they took 4.3%. The figure is still falling. The internet is often blamed for this. But the blunt truth is that US department stores just aren’t very good retailers. In fact, most of them are abysmal. The majority of mainstream stores are uninspiring places. Even in good malls, they are dispiriting and dismal. Investment is severely lacking. They are devoid of inspiration. There’s no reason for people to visit.