Today in Retail: Secondhand Retailers Want Big Brand Partners; Escalating Interest Rates Roil Retailers’ Borrowing Plans

Today in retail, secondhand retailers eye branded partners, while retailers, find themselves at risk of rising interest rates. Plus, Asda tests personal shopper deployment with Buymie handling the deliveries, Kmart will be down to three U.S. locations by the end of the week, Walmart+ shoppers aren’t making the most of their memberships, Mastercard SpendingPulse data shows flickers of optimism, and Levi Strauss is expanding its presence across East Asia Pacific.

Rethinking Resale: Secondhand Retailers Are Actively Seeking Branded Partners

In an industry that’s currently being pinched by pricing and held back by headwinds, a growing appetite is emerging among consumers and investors for something new and different that can serve as an antidote to the present gloom. Oddly, that “new thing” may turn out to be something not new at all, as used apparel is currently experiencing a surge in deal-making this month — and this year. Whether you call it resale, reCommerce, circular economy, secondhand or some other euphemism, there’s one thing everyone can agree on in this category, and that is that it’s hot right now.

Rate-Sensitive Retailers Getting Rocked by Rising Borrowing Costs

Many retailers that have emerged stronger from the pandemic, supply chain woes and inflation are suddenly finding themselves at risk of being tripped-up by another hurdle: rising interest rates. While still only a fraction of the historical 50-year average, the rapid increase in the rate of a typical 30-year mortgage has seen this benchmark nearly double over the past two years and jump 3% to almost 5% in the first quarter of 2022. The interest rate rise is already taking a major short-term toll on rate-sensitive retailers that have direct exposure to anything that makes housing even less affordable.

British Supermarket Asda Tests Personal Shopper With Buymie Handling Delivery

Asda has debuted a new personal shopper trial at some stores, which will be a team-up with Buymie, a delivery platform. During the trial, customers will be in direct contact with in-store shoppers as they’re selecting the products for purchase, with the deliveries made within an hour or so. Shoppers will get full access to an online range of groceries and can be in touch with pickers as their shopping is being done.

Attention Kmart Shoppers: Only 3 Stores Left in US After April 16, Marking End of an Era

Kmart pioneered many concepts that are still valued by shoppers today, from celebrity-backed store brands to “flash” sales, but that’s not enough to save the once-mighty discount retailer, which after April 16 will be down to three U.S. locations: Bridgehampton, New York; Miami; and Westwood, New Jersey. Kmart locations numbered over 2,000 at the chain’s height in the late 1990s as it mixed merchandise and services in a destination shopping concept that helped to define the retail landscape pre-eCommerce.

Walmart+ Challenge: Getting Members Through the Door to Spend More

Walmart’s membership program, Walmart+, seems to be falling short of the key goals part of any commerce subscription plan: getting consumers to spend more, and more often, each time they visit. So far, the data indicates that some structural issues are acting as headwinds — the members are not filling their baskets as heavily in Walmart’s aisles as they are at rivals. Across the broad spectrum of Walmart’s competitors — including Amazon, Target, Costco and Sam’s Club — members are spending more, especially online, than non-members, often by significant sums.

Mastercard’s March Retail Sales Data Show War, Inflation Slowed Consumers Less Than Feared

Mastercard SpendingPulse data for March found that retail spending leaped 8.4% year over year and 18% compared with the same period in 2019, excluding auto sales and not adjusted for inflation. eCommerce went from 12% of commerce to 18% of commerce virtually overnight. Economic forces like pent-up travel demand are being set loose now and reflected in SpendingPulse data, which found that airline spending shot up 44.8% in March, with restaurants doing 19.1% better and lodging up 46.4%.

Levi Strauss & Co. Eyes East Asia Pacific Growth

Levi Strauss & Co. is hoping the brand power that’s allowed the company to raise prices while also increasing its digital and direct-to-consumer (D2C) sales in the first quarter of fiscal 2022 will also work in East Asia Pacific, where the company is planning an expansion that includes 100 new locations in Thailand. The denim manufacturer and retailer has announced its “ambitious plans to accelerate sustainable business growth and drive commercial success,” which include opening new stores, refreshing existing ones and adding new services across the region.