In today’s top retail news, Rakuten and Afterpay are partnering on a new rewards program for customers of both companies, while department store chain Kohl’s is being urged to follow in the footsteps of Saks and others in spinning off its digital business. Also, retailers are now paying customers to pick up online orders to cut down on last-mile delivery costs, and Alibaba is reorganizing its eCommerce business to better align with its globalization goals.
Rakuten, Afterpay Combine BNPL, Cash-Back Rewards
Afterpay is teaming up with the shopping rewards program Rakuten on a program that combines cash-back rewards and flexible payment schedules. Shoppers enrolled in both Rakuten and Afterpay can earn cash back when they pay for their purchases in four interest-free installments, a double play that could help increase conversion rates and raise average order values.
Kohl’s Urged to Sell Company or Spin off eCommerce Business
Kohl’s, the second-largest U.S. department store chain, has been urged by activist investors to either sell itself outright or consider a spin-off of its eCommerce division in a bid to boost its stock price. According to The Wall Street Journal, New York-based hedge fund Engine Capital is calling on Kohl’s to either sell the company or separate its eCommerce business in response to its falling stock price, which has slumped 25% in the past seven months.
Retailers Now Pay Consumers to Pick up Their Online Orders
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With as much as half of all delivery costs occurring in the last mile, and prices rising across the board at the same time that consumers are continuing to demand they pay nothing for shipping, several brands are rewarding customers who choose to pick up their purchases rather than have them shipped to the front door. PYMNTS data show that offering buy online, pick up in-store would encourage 44% of consumers to shop at physical stores, including over 52% of Generation Z, 46% of bridge millennials and over 45% of Generation X.
Alibaba Reorganizes Global, Domestic eCommerce Business
In a move to become more agile and rev up expansion, Alibaba is splitting its eCommerce business into two divisions — international digital commerce and China digital commerce. The change aligns with Alibaba’s focus on making globalization a central tenet as well as cloud computing and consumer spending in China. Jiang Fan, who headed the company’s central retail marketplaces in China, will lead the international digital commerce unit, which includes AliExpress, Lazada and Alibaba.com.
