NEWS

ECONOMY

New Jersey Deli Reaches $100 Million Stock Market Value

YOUR HOMETOWN Deli, a tiny establishment based in Paulsboro, New Jersey has hit staggering market value despite the company’s modest sales totalling $35,748 over the past two years combined. As the single business owned by Hometown International (HWIN), the deli and its $100 million market capitalization, was used as an example by hedge fund manager David Einhorn to warn of the market dangers for retail investors, as high-profile investors everywhere express uncertainty due to the unpredictable booms in shares over the past year.

HWIN’s CEO, who works in his local high school as a wrestling coach, is yet to give comment. Despite the deli’s closure from March 23 to September 8, 2019 due to the pandemic, the company’s stock price rose during that period from $3.25 per share to $9.25 per share.

Last trading was recorded at $14 per share. As part of the risky context of over-the-counter shares, the deli’s value is a striking example of the broken market.

ENERGY & UTILITIES

Tesla to boost solar energy efforts after disappointing 2019

TESLA IS facing pressure to reinvigorate their solar energy business after the company’s energy revenue declined by $24 million over the course of 2019. In an annual

Tesla Solar Roof (2017), produced at Giga New York financial report, Tesla announced that their photovoltaic production plant located in Buffalo, New York – Gigafactory 2 - would be increasing manufacturing of solar panels in collaboration with Panasonic. Although Tesla’s solar energy and storage systems reported a record fourth quarter, the full year saw a decline in sales.

CEO Elon Musk is under duress from both the Mayor of Buffalo, due to the significant taxpayer funds deployed to build Gigafactory 2 which currently does not meet state requirements with the size of its workforce, and Tesla shareholders, who originally sued Musk after his controversial $2.6 million dollar acquisition of SolarCity in 2017. ROCKSTAR ENERGY drinks have received a total branding revamp, following the business’ acquisition by PepsiCo in 2020. This entailed the creation of a new logo, packaging and the brand’s first ever Super Bowl advert. This has resulted in a growth in sales for Rockstar, although PepsiCo CEO Ramon Laguarta has told analysts that it is still too early to tell whether this will lead to permanent consumer habits. Pepsi acquired Rockstar for $3.85 billion as part of their expansion into more heavily caffeinated drinks, as the company was struggling amidst competition with leading energy drink producer, Monster Beverage.

FOOD & DRINK

PEPSICO REVIVES SALES FOR ROCKSTAR ENERGY

RETAIL

TARGET TRIALS NEW APPROACH TO SPEED UP DELIVERIES

IN A bid to increase the speed between online purchases and delivery to the customer’s door, leading US retailer Target are trialling a new delivery system in their hometown of Minneapolis. Supported by three businesses that Target have acquired, deliveries will now be packaged in-store by Target employees before being transported to a sortation center. Technology will be leveraged to group packages for the most efficient delivery routes. The final stage involves contract workers for Shipt – a company acquired by Target in 2017 that offers a same day delivery service. The new strategy will enable the brand to compete with e-commerce competitors such as Walmart and Amazon.

NAVIGATING CROSS-BORDER E-COMMERCE

More of us than ever – 2.1 billion globally, in fact – are turning to e-commerce in a bid to get our shopping fix. Sam Ranieri, CEO at Reach, examines the new age of shopping online

Written by: Sam Ranieri, Chief Executive Officer at Reach

Prior to 2020, the number of consumers choosing to shop online was already increasing; now, accelerated by the COVID-19 pandemic and the knock-on effects of changing consumer behavior, this rise is breaking every record ever set for e-commerce growth.

The statistics for growth from 2020 prove that e-commerce needs to be an integral part of every brand’s strategy from the very beginning. Indeed, according to Digital Commerce 360, the past year saw the highest annual growth in US e-commerce for two decades (44 percent), as well as the biggest jump in e-commerce penetration in the US ever recorded (5.5 percent). In fact, 2020 became the first year in history that e-commerce sales accounted for the entirety of US retail growth (101 percent).

This new age of e-commerce brings with it vast opportunities, but it’s not 2010 anymore. Consumers are savvy, fraudsters are sharp, and the biggest players keep getting bigger. Retailers can take advantage of the unprecedented confluence of advances in technology, mass digitisation and of course, the pandemic. For those seeking to bridge the gap to success in e-commerce, my advice is simple: Focus entirely on the primacy of the customer’s experience while optimizing your own cross-border operations.

The beauty of being borderless

Not being confined to one locale has a fundamental benefit: instant access to an international customer base that is far larger than any single domestic market. Customers are on the hunt for new, unique retail goods, and serving that buyer will get you brand loyalty, an expanding customer base, and increased revenue. However, to succeed on an international scale, you have to do it right. A few bad experiences, and you lose that customer forever.

Cross-border transactions have high decline rates. Shockingly, 18 percent of foreign e-commerce transactions are declined in the US, which goes to show how being unprepared for your international consumer can backfire spectacularly.

While customers are happy to make purchases across the globe from the safety of their sofas, they don’t like to be out of their comfort zone when it comes to an unfamiliar checkout experience.

If you are a borderless merchant and have noticed an unusually high rate of drop-off once customers head toward the pay button, consider your checkout process. If it’s an unfamiliar UX, if you have irrelevant payment methods displaying, or if you’re offering too many payment or shipping options, any of those missteps can put customers off. You’ll lose those sales.

It’s also important to remember that consumers will trust what they know. Many potential customers will be put off by unfamiliar currencies and languages, which can make them doubt the legitimacy of the business from which they’re buying. Be sure to consider accessibility for every market you’ll be operating in.

What’s your customer’s preferred payment method?

Across the globe, different regions will have their own favoured payment methods. For example, 56 percent of e-commerce transactions in the Netherlands use iDEAL to conduct real-time bank transfers.

For many consumers, it’s a matter of security. Offering a payment method that they’ve never heard of, even if it’s in their regional currency, can make consumers wary about purchasing. Even if they do feel