Today in Retail: Macy’s Adds Behind-the-Scenes Stores

In retail today, Instagram’s algorithm change is triggering a social commerce slump for food companies, while inflation could come to the rescue at second-hand clothing retailer Poshmark. Additionally, Petco is focused on its long-term plans for health and wellness growth.

Food companies see social commerce plummet after Instagram’s algorithm change

Food companies that have relied on Instagram to build, maintain and grow their followers have been hit hard by recent changes to the social media app’s algorithm.

Companies that had seen high engagement with a social strategy centered around photography and captions were left behind as the platform began to surface videos and deprioritize stills, the New reported. York Times Tuesday, March 22.

At the end of December, Instagram head Adam Mosseri announced the switch to video. Given the higher barrier of entry required to create successful video content – taking photos of an item does not require the resources to produce high-quality video – the change has made it harder for small businesses to stand out on the platform.

Macy’s is adding more behind-the-scenes stores as bargain hunting heats up

Macy’s swift plan to open 37 new, discounted Backstage stores over the next three months to accompany the existing 300 Backstage outposts is not just a reflection of the times, but a statement about an evolving industry. .

The department store said the rapid rollout will begin next month and be complete by the end of June, including at its flagship stores in New York and Chicago.

The strategic shift reflects current consumer trends and will not only meet growing customer demand for “quality merchandise and brands at great prices,” according to a company announcement, but will also meet the needs of shoppers who love the “thrill of the hunt”. experience when shopping.

Petco Unveils Long-Term Health and Wellness Strategy

Petco Health and Wellness Company, Inc. announced on Wednesday (March 23) its long-term strategic plan to catch Chewy in the increasingly competitive pet health and wellness industry as part of its Pet Day investors 2022.

Petco’s Investor Day agenda included the presentation of a future loyalty program under Vital Care that will migrate customers to subscription, save customers money and expand Petco’s position as a first destination for pet parents; test small rural town concepts in key locations; increase brand awareness in low share markets; and building a differentiated merchandise offering through its supplier relationships.

Petco’s strategic plan also includes scaling personalization capabilities by adding more data about pets and their so-called pet parents to deepen engagement and loyalty; creating a customer-centric fulfillment network through a more robust physical footprint and additional digital capabilities; and fostering access to new customers through partnerships with Lowe’s and other brands.

GameStop President Ryan Cohen’s tweet drives stocks higher

Shares of video game retailer GameStop Corp. rose early Wednesday (March 23) after jumping more than 30% on Tuesday, in part because Chairman Ryan Cohen said he bought 100,000 shares of the company on Tuesday (March 22).

RC Ventures LLC paid between $96.81 and $108.82 for the shares purchased. Cohen now owns 9.1 million GameStop shares, or 11.9% of the company, according to a Tuesday, March 22 report in The Wall Street Journal.

GameStop’s stock has been on a rollercoaster ride since early last year, when it was part of a social media-fueled trading frenzy. The shares peaked at $350 last year before steadily falling as low as $78.11 as investors worried about the company’s performance in the final three months of 2021.

Inflation Could Solve Poshmark’s Business Growth and Falling Inventory Problem

After second-hand clothing retailer Poshmark’s IPO debut 15 months ago, when its stock briefly topped $100 per share, the retrading platform has gone downhill ever since.

Now, with its shares down 90% from the peak and its market value slipping below $1 billion, Poshmark is struggling to convince investors – who loved it not too long ago. – that its history is still intact.

But where the Redwood, Calif. dealer failed to change the Wall Street narrative in its first year as a public company, a whole new ancillary condition might have better luck: inflation. .

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NEW PYMNTS DATA: 57% OF CONSUMERS PREFER ADVANCED IDENTITY VERIFICATION AFTER TRIING IT

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