1/24/20 - Macy’s And Zola Team Up As The Department Store Retailer Switches Up Its Strategy

From the Simplr studios in San Francisco, this is your daily briefing.  

Introduction

This is Today in Five, for today, Friday, January 24th. Here are today’s headlines in digital disruption.

Macy’s has partnered with wedding website, Zola, as the department store retailer tries to balance brick-and-mortar and e-commerce sales.

First, here are the latest headlines.

NYC Council Bans Cashless Retail and Food Establishments

The New York City Council passed a ban on cashless retail and food establishments on Thursday, according to the council’s website. The bill prohibits businesses from refusing to accept cash and from charging customers who pay cash a higher price than cashless customers. New York City is the largest U.S. city to have approved a ban on cashless stores. Similar bans passed in Philadelphia, New Jersey, and San Francisco in 2019. Chicago and Washington D.C. are considering similar policies as well. The growing trend among local governments to ban cashless locations could slow the trajectory of the movement toward digital payments. Within the next decade, only   one in 10 transactions are expected to be made with cash.  

Target Partners with Unilever and Sundial Brands on Exclusive Line

Unilever and its Sundial Brands subsidiary have launched a “line of textured hair care products for Gen Z multicultural women,” exclusive to Target, the companies announced in a press release. With another exclusive label to complement its private label strategy, Target continues to demonstrate merchandising and branding savvy that places it ahead of the pack in retail. In Unilever and Sundial, Target has partners that can develop products for women of color with specialized knowledge and supply them at scale. The line also furthers the retailer’s success in beauty, an area where Target slowly but meaningfully appears to be taking share from the likes of drugstores. The company is targeting its customer well, and not just in catering to Gen Z. Its development of the new line goes beyond “purpose marketing,” to bring products to market that are in demand by a group of consumers often neglected by mainstream retailers.

Goldman Sachs CEO to Require "Diverse" Boards for Companies Going Public

The demand for diversity is taking a front seat in retail. Goldman Sachs CEO David Solomon told CNBC that starting this year, his investment bank wouldn’t help companies go public without at least one “diverse” board member. Solomon preceded his statement by saying that, over the last four years, the performance of public offerings of U.S. companies with at least one female director is “significantly better” than those without. He noted that about 60 companies in the U.S. and Europe have gone public recently with all white, male boards. In his statement, he said, “Look, we might miss some businesses, but in the long run, this I think is the best advice for companies that want to drive premium returns for their shareholders over time.”  

Macy’s And Zola Team Up As The Department Store Retailer Switches Up Its Strategy

Macy’s and wedding site, Zola, have launched a partnership that enables couples to register with Macy’s for gifts across the retailer’s bedding, bath, and home goods through Zola, according to a press release. Zola users can also shop for more than 2,000 Macy’s private label or exclusive products, per Zola’s statement. In a company statement, Zola noted that they developed its technology to allow Macy’s to fulfill the orders placed on the platform. Macy’s partnership with Zola comes as the retailer undergoes substantial change. The department store is has been making changes both on and offline.

Back in September, the retailer announced its effort to offer same-day delivery for a limited time over the holidays. Macy’s changes come as it tries to balance e-commerce and brick-and-mortar sales. Its Zola partnership presents the retailer with a way to reach a new digital customer base, much like similar efforts at Nordstrom. Macy’s senior director of business development said in a statement, “By partnering with Zola, we’re adding another way to bring Macy’s best private and exclusive products toe very couple wishing to say I do.”  

Closing

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Thanks for listening to this latest episode of Today In Five. We’ll see you tomorrow.