A startup named Cappella is launching an AI-powered baby cry translator app next month that uses factors like pitch and duration to analyze cries. The app aims to interpret a child’s needs and relay whether it’s time for feeding, a diaper change, or if the tears are just a baby’s desperate plea for its parents to put their phones down for once.
In today’s email:
Checked out: Self-checkout tech leaves much to be desired.
Like a fright train: Halloween is a runaway success for retailers.
Around the web: A game about avoiding art, when you can’t visualize things in your mind, a magnificent bird, and more.
👇 Listen: Halloween is the second-largest holiday in terms of American spending. Where does all that money go?
The Big Idea
Are self-checkouts a cautionary tale in our race toward automation?
Not so fast, robot overlords. We still have a lot to figure out.
2023-10-20T00:00:00Z
Sara Friedman
If you’ve ever tried to buy fruit at a self-checkout kiosk, you know it can be a nightmare.
Fending off a line of impatient customers while trying to make sense of illegible bar codes is not for the weak.
And once the machine starts screaming to “wait for assistance,” it’s all over.
It’s not just you — while the handy kiosks were once the apple of every big retailer’s eye, more companies are turning their backs on the tech, per The Atlantic:
Walmart removed self-checkouts entirely from some of its stores and is redesigning others.
Costco is cracking down on card-sharing by staffing its self-checkout lines more heavily.
ShopRite brought cashiers back into stores after a flood of customer complaints.
What they do have going for them: machines don’t ask for PTO, catch the flu, or demand better pay or benefits — all things that corporations love to avoid.
But kiosks come with their own nuisances
According to a 2021 survey, 67% of customers said they’ve experienced a self-checkout “fail.”
Plus, they can be high-maintenance for stores, too:
They often break, with buggy and unreliable tech.
Kiosk maintenance can be costly, requiring specialized IT support.
They contribute to the ~$100B retail shrink problem, from both theft and scanning mistakes.
And they’re expensive. Four lanes of self-checkout kiosks cost stores an average of $125k to install.
Replacing employees with self-checkout kiosks can cause other issues, such as messy or understocked shelves, worsened customer service, and accessibility issues for wheelchair users and people with limited vision.
In the future…
… stores may keep the self-checkouts and the employees.
Kroger is testing a model that relies entirely on self-checkout but won’t reduce the amount of cashiers; employees will instead assist customers with the checkout process at kiosks.
Alternatively, there’s always the Amazon Go model: no checking out at all.
Free Resource
How Shopify reinvented online shopping
In 2004, Shopify began as Snowdevil, an online snowboard shop.
But CEO and co-founder Tobias Lütke found the available ecommerce options lacking in merchant-friendly functionality, so he hunkered down and crafted something sleek.
Today, that underlying tech is the all-in-one platform powering millions of digital stores. By simplifying the vendor experience and trendspotting like champs, it quickly became a giant name in online retail.
Here are three lessons for brands inspired by the dominance of Shopify.
Scholastic — the book publisher responsible for the annual fair of our elementary school dreams — said state book bans have created an “almost impossible dilemma.” Its current solution: allowing schools to opt out of its collection of 60+ oft-banned books, mostly focused on racism and LGBTQ+ topics. Florida banned 1.4k+ books this school year, accounting for 40%+ of total US bans.
SNIPPETS
Netflix added 8.76m subscribers in Q3 for a total of 247.2m, crediting its programming and password-sharing crackdown, and announced price hikes for some US, UK, and French customers.
Costco CEO Craig Jelinek is stepping down at the end of the year. Jelinek, who’s held the post since 2012, will be replaced by the company’s president and COO, Ron Vachris.
New York Attorney General Letitia James is suing three crypto companies — Gemini, Genesis, and Digital Currency Group — on claims that they misled investors. The lawsuit says 230k+ investors were affected, with losses topping $1B.
Oof: September numbers are in, and sales of previously owned US homes fell for the fourth month in a row, reaching the lowest level since 2010 amid surging interest rates and home prices.
More oof: A survey found US job-based health insurance premiums shot up 7% this year. The cost of an annual family plan averaged ~$24k, with workers paying ~$6.5k+ and employers fronting the rest. Gross.
Universal Music is suing AI startup Anthropic, alleging it scrapes copyrighted music to generate “nearly word-for-word” copies of lyrics via its chatbot, Claude.
Roger Goodell and the NFL finalized a three-year contract extension to keep the commissioner atop America’s most popular sport. The deal is worth $200m+, a handsome reward for turning the football league into an unstoppable business force.
ESPN is profitable for Disney, tallying ~$1.5B in operating income over the fiscal year’s first nine months. Disney recently split ESPN into its own division, revealing new insights into the network’s business: For one, it had $2.7B in profits in both 2021 and 2022.
Ferrara Candy is chasing the title of Earth’s sweetest company, acquiring Jelly Belly Candy. The jelly bean maker joins a dental nightmare of a candy portfolio that includes Laffy Taffy, Brach’s, Trolli, Nerds, Jujyfruits, Pixy Stix, Now and Later, Red Hots, Spree, and SweeTarts.
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There are few industries AI can’t touch. The question isn’t if AI impacts jobs, it’s how. From taking jobs to monitoring employees, here’s where the labor market stands today.
Back-to-ghoul shopping
Olivia Heller
You’re probably spending a lot on your Halloween costume
Halloween sales figures are looking scary good for retailers this year.
2023-10-20T00:00:00Z
Ben Berkley
As historians tell it, Halloween originated from Samhain, the ancient Celtic festival when people lit bonfires and doffed costumes to ward off ghosts.
As businesses tell it, who gives a damn where it came from? It’s a money-making bonanza, baby!
The holiday is expected to generate $12.2B in American spending this year, per the National Retail Federation (NRF), besting last year’s record-setting $10.6B haul.
Where’s it all going?
Average per-person Halloween spending projects at ~$108 — and with 73% of Americans saying they’ll celebrate this year, retailers are salivating as much as a trick-or-treater staring down a king-size KitKat.
Here’s how the spending roughly breaks down:
Costumes: $4.1B
Decorations: $3.9B
Candy: $3.6B
As for the balance, we’ll assume that’s being spent at FedEx Office by those weird fearmongers who print fliers about fentanyl and razor blades in candy, then paste them all over your neighborhood.
Stay strange, Halloween.
It’s not a true American holiday…
… without some corporations absolutely cashing in:
We already know Spirit Halloween is a $500m+ pop-up sensation.
The ~$45B Mars candy empire has so much money riding on the holiday, it plans for Halloween two years ahead.
Universal theme parks’ Halloween Horror Nights brought in ~$575m last fall.
But it wouldn’t be 2023 without everyone tied to the Barbieverse — Mattel and licensed retailers Target, Walmart, and Amazon — printing money.
In a first, Barbie will rank among the year’s most popular costumes.
Pink is not the new black, however: Witches remain the top adult costume by a mile — 5.8m+ witches will go out this year, more than the next three most popular costumes combined (vampire, Barbie, and Batman).
BTW: That dominance doesn’t extend to kids, though — that’s now Spiderman’s domain. There’ll be 2.6m li’l web-slingers running around all hyped up on sugar this year.
AROUND THE WEB
💍 On this day: In 1955, J.R.R. Tolkien’s The Return of the King was published, completing the Lord of the Rings trilogy.
🧠 That’s interesting: An essay about aphantasia, the inability to visualize things in one’s mind.
📩 Must read:The Follow Up is a twice-weekly newsletter that will make you a better salesperson.