The COVID-19 pandemic fortified online shopping, which grew 22% last year, said the National Retail Federation Wednesday. It's expected to grow 18-23% in 2021 as many consumers new to e-commerce last year “are likely to continue shopping online," said Chief Economist Jack Kleinhenz.
The pandemic revealed that a remotely connected digital workplace "is a viable solution for companies to keep operating, and a feasible alternative to the traditional office space, at least in the short term,” reported Deloitte Wednesday. The COVID-19 global health crisis likely will have “a lasting impact on businesses and employees," it said. A U.S. census study in June found a third of workers expect to "never return" to daily commutes, it said. A Deloitte survey in the financial sector found 77% expect to work from home “regularly” post-pandemic. Connectivity is the “unsung hero of the future of work,” said Deloitte. The mass shift to "distributed working" during the pandemic "has proven the agility of existing networks and IT infrastructures to deal with increased demand.” But connectivity platforms “need to improve, and many employees still lack the digital skills to work effectively remotely," it said. Deloitte and the Massachusetts Institute of Technology found 90% of respondents “believe yearly upskilling is required to enable employees to keep up,” it said. “Access to technology is unequally distributed across geographies, economic classes and education levels,” said Deloitte. “The high-speed, low-latency connectivity required to support a hybrid work environment simply isn’t available to many communities.”
Target continued to ship online from stores as the coronavirus crisis wore on, which saves 40% of shipping from a warehouse, said Chief Operating Officer John Mulligan on a Tuesday call. Stores fulfilled more than 95% of sales in Q4, ended Jan. 30. Digital sales climbed 118% from the year-ago quarter. Same-day services jumped 202%, led by drive-up. Target is also testing new fulfillment capabilities. A robotic ship sorter in Perth Amboy, New Jersey, sorts goods, then robots “sequence inventory” so employees can quickly load pallets, the COO said. It’s working on sending stores what they need “before they even know it," he said: The system allowed ordering and restocking 25% faster last year. The next few quarters will be “cloudier” due to economic forces, said Chief Financial Officer Michael Fiddelke. “We’re all battling COVID each and every day.” The stock closed down 6.8% Tuesday at $173.49.
This year's Small Satellite Conference, Aug. 7-12, will be virtual due to restrictions preventing it from being held in-person and lack of clarity on when those restrictions will lift, the conference said Tuesday. Space Command Deputy Commander Lt. Gen. John Shaw will keynote, it said.
IT decision-makers observed an “uptick in risky behaviors” online from employees since the pandemic forced most to work remotely, reported Tanium Monday. The cybersecurity vendor canvassed 500 enterprise IT leaders in the U.S. and U.K. in late November, finding 41% say employees stored sensitive data on their PCs and 38% say workers click on phishing emails. The SolarWinds attack illustrated “the systemic vulnerabilities in the ever-growing software supply chain,” said Tanium. Since the COVID-19 pandemic began, 30% of respondents have observed their end users not updating software, said the company. The survey found two-thirds of companies accelerated their planned investments in cloud infrastructure after work-from-home regimens began, but cloud adoption isn’t consistent across regions. Tanium found 40% of U.S. IT decision-makers think their companies are well ahead of others in using cloud services, compared with 24% of U.K. respondents.
Live Nation Entertainment CEO Michael Rapino sees outdoor public activities among the first events to return with the rollout of COVID-19 vaccines. “We continue to have a substantial tailwind in the live event industry, as consumers, more than ever, are looking to spend on experiences,” said Rapino on a Q4 call Thursday. The pandemic sent 2020 revenue plunging 84%, resulting in an operating loss compared with a year-earlier profit.
Agencies offered to assist with the FCC's $3.2 billion emergency broadband benefit program, said a letter posted Thursday. Each agency emphasized "interest in being of service to this important effort to aid Americans who have found themselves on the wrong side of the digital divide" during the pandemic, the letter said. Terms like "connected device," "standard rate" and "tablet" need to be defined, said NTIA. The Education Department proposed temporarily making the FCC a "designated entity" to award "aid" through the program so Pell Grant recipients can be notified they may be eligible. Expand the definition of "tribal lands" so households near Indian reservations are eligible, said the Bureau of Indian Affairs. Allow public housing authorities to participate in the program because many sign bulk purchase agreements with ISPs, Department of Housing and Urban Development officials said. The National Economic Council and Health Resources and Services Administration also participated in a discussion with front office officials of the Wireline Bureau and Consumer and Governmental Affairs Bureau.
A Feedvisor analysis of 1,000 U.S. brands found more than three-quarters selling on Amazon, up from 55% a year ago, reported the analytics company Thursday. COVID-19 also accelerated adoption of Amazon Advertising, with 88% using the platform, up from 21% a year ago. “The growth of e-commerce during COVID-19 has substantially benefited e-marketplaces,” said Feedvisor President Dani Nadel. “Brands can no longer afford to ignore Amazon’s significance, nor can they rely solely on their owned channels.”
Online and non-store sales are expected to rise 18%-23% this year to up to $1.2 trillion, as many large and midsize retailers made significant investments in internet capabilities, the National Retail Federation forecast Wednesday. NRF Chief Economist Jack Kleinhenz said some portion of non-store sales might fall off as people decide they want to go back into stores. Pending broad administration of COVID-19 vaccines, retail growth is forecast to surge 6.5-8.2% to up to $4.4 trillion, the highest growth since 2004, said CEO Matthew Shay on a call. Shay put the vaccine front and center when asked how NRF is engaging with the Biden administration and Congress. “All of the focus is on the vaccine and vaccine distribution,” the trade association boss said of retailers.
Fry’s Electronics attributed the “difficult decision” to shut permanently to “changes in the retail industry” and the “challenges” of the COVID-19 pandemic. Fry’s at its peak ran 31 stores in nine states, said the retailer. It will implement the shutdown “through an orderly wind down process that it believes will be in the best interests of the Company, its creditors, and other stakeholders,” it said. This began Wednesday, to “avoid additional liabilities, minimize the impact on our customers, vendors, landlords and associates, and maximize the value of the Company’s assets,” it said. Fry’s didn’t respond to questions.