This article was compiled with the help of generative AI based on data and analysis that is original to EMARKETER.
In January, the most interesting retailers capitalized on New Year’s trends like resolutions, lower-alcohol consumption, and an influx of holiday returns. Poshmark and Sephora introduced new partnerships, while Amazon and Temu increased their own retail media-related offerings.
Here are the eight most significant retail developments of January 2024, ranked by their potential market impact:
Amazon is making its retail media advertising technology available to other retail media networks, a shift that could reshape commerce media ad tech. With Amazon controlling 76.2% of the US retail media market, per our November 2024 forecast, this move could lower barriers for new networks while making it easier for advertisers to expand their reach across multiple networks.
The fast-growing marketplace is piloting paid search ads and launching an app marketplace with inventory and logistics management tools.
“It's a big deal considering the competition that Temu has already given Amazon,” said our analyst Arielle Feger on a recent “Behind the Numbers” podcast. “Adding an ad component…really adds fuel to that fire.”
The beauty retailer launched a Hulu "Get Ready With Me"-style show featuring celebrities, adapting popular short-form social media formats for streaming. This represents a subtle approach to branded content that could help draw viewers, contrasting with more overt retail entertainment initiatives.
“It's totally a big commercial for Sephora, but it doesn't have that same sort of heavy-handedness of the Amazon ‘Buy It Now’ show,” said our analyst Zak Stambor.
A new partnership with Loop enables customers to easily list items past their return window, creating a middle ground between traditional returns and peer-to-peer resale. This innovative approach could help address the costly challenge of retail returns while providing customers with a recovery option.
“It's January. Retailers are drowning under the weight of holiday returns,” said our analyst Rachel Wolff. “A partnership like this could be something that more of them consider.”
Costco has strongly endorsed its DEI initiatives, despite industry pullback, stating they enhance the company's ability to attract and retain talent. However, this positive move is complicated by potential strike actions at the retailer.
“[Costco] really made sure to paint it not just as a business decision, but to say this is the kind of corporate culture that we want to build,” said Wolff.
Target capitalized on New Year's resolutions that focused on wellness and drinking less alcohol.
The retailer introduced 2,000 new wellness items and partnered with Tom Holland's non-alcoholic beer brand, positioning itself for health-conscious consumers and the growing non-alcoholic beverage trend. Notably, 600 of these products are Target exclusives.
The electronics retailer is launching its second attempt at a third-party marketplace, partnering with Mirakl. The focused approach targets complementary product categories rather than trying to compete broadly with other marketplaces.
“I think they're going about this in a pretty smart way,” Stambor said. "They're not trying to be everything for everyone. They're being really targeted with it, and they're just trying to focus on expanding the selection of stuff that makes sense in line with Best Buy."
The retailer's merger with SPARC Group to form Catalyst Brands creates a $9 billion entity with access to 60 million customers across 1,800 stores. While the success depends on execution, this consolidation could enable more sophisticated data-driven personalization and cross-selling opportunities.
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