A weekly podcast with the latest e-commerce news and events. Episode 12 covers Amazon plans to open retail stores, Google’s earnings call, Apples earnings call, General Growth Properties earnings call, subscription e-commerce model, and the benefits of e-commerce marketplace model. We also discuss the web services that have achieved 1 billion users at Google and Facebook.
This was a another big week for retailers and e-commerce companies reporting their Q4 earnings.
In General Growth Properties annual report, Sandeep Mathrani, the CEO accidentally disclosed that Amazon plans to open 300-400 stores. He later retracted the comment. Jason Del Rey followed up with an article on Re/code, in which he confirmed that Amazon is hiring book store employees in San Diego, and that the inititive is being run by longtime Amazon executiveSteve Kessel, whose team launched the Kindle.
The briefing also highlighted that Apple Stores are now dragging down the growth rate of (non-anchor) stores in GGP malls.
amazon logistics: (super quick)
Wells Fargo retail analyst Matt Nemer, reported that 51% of all retail growth went to Amazon, and 7% to Walmart.
Google blew away expectations, growth accelerated to 19% y/y in Q4. Google spent $3B on “other bets” which generated $354m (mostly Nest and DropCam). Google specifically called out:
“Our research shows that 30% of all online shopping purchases now happen on mobile phones.”
and their local inventory ads product:
“Our local inventory ads help people see if a product they are looking for is in stock at a retailer nearby. Marketers at Lowe’s and Target find them useful because they can measure the foot traffic that their search ads drove. In fact, thanks to local inventory ads, Target reported millions of incremental store visits in the week leading up to Christmas.”
Episode 12 of the Jason & Scot show was recorded on Wednesday, February 3rd, 2016.