AI in Retail Boosts Store Traffic: The Week in Retail

The use of technology, particularly AI in retail, is on the rise, helping businesses choose better locations to ensure higher traffic and conversion rates. Meanwhile, the conflict in Bangladesh could disrupt the retail supply chain, as the country hosts many manufacturing workshops. Mexican shoppers continue to favor physical stores over e-commerce.

This and more in retail news this week!

Future of Retail: Pick Location Using Data, Predictive Analysis

Anabell Trejo, CEO and Co-Founder, Getin writes about how retailers are leveraging big data and predictive analysis to revolutionize location selection, ensuring strategic placement of new stores by analyzing extensive data on sales, foot traffic, and consumer preferences. Embracing these tools offers significant advantages, such as tailored local strategies, optimized inventory management, and the ability to make informed, real-time adjustments in an ever-evolving retail landscape.

Bangladesh Turmoil May Disrupt H&M, Zara for Holidays

The political unrest in Bangladesh has led to the indefinite closure of garment factories, threatening global retailers like H&M, Zara, and GAP ahead of the holiday season. This turmoil exacerbates existing challenges in the garment industry, which already faces issues such as unfair trading practices, worker turnover, and reduced wages. Despite international agreements to uphold labor safety standards, the industry continues to struggle with economic pressures, safety concerns, and competition from emerging markets.

Mexican Shoppers Favor Department Store Sites for Shopping

A recent Capterra study reveals that Mexican consumers prefer department store websites for product searches and purchases, followed closely by retailer websites and marketplaces. Consumers value recommendations for discounted products and return to stores primarily for product quality and price. Online shoppers face challenges like excessive sponsored results and irrelevant results, leading 97% to use search filters, with the most common being price, size, brand, and delivery options.

Mercado Libre's Income Surges 42% YoY in 2Q24

Mercado Libre reported strong financial results for Q2 2024, with net revenue and financial income reaching US$5.1 billion, a 42% increase year-over-year, and net income of US$531 million, marking a 103% increase. Mercado Libre's investments in fulfillment and free shipping, along with new initiatives like AI-generated answers and personalized incentives, contributed to improved delivery speeds, higher conversion rates, and a 29% increase in items sold year-over-year.

FEMSA Acquires Delek US Retail for US$385 Million

FEMSA announced its acquisition of Delek's retail operations, including 249 convenience stores mainly in Texas, for $385 million. This purchase aligns with FEMSA's #FEMSAForward strategy to expand its global retail footprint, adding to its existing operations in Mexico and 10 other countries. The deal, expected to close in the second half of 2024 pending regulatory approval, marks a significant entry into the US convenience and mobility market, valued at over $850 billion.