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Department store retailer Macy’s is making a big expansion in digital advertising through a new deal with an adtech heavyweight.
On Monday, Macy’s announced a new partnership with independent media buying platform The Trade Desk.
The partnership will allow advertisers to access shopper audiences from the Macy’s and Bloomingdale’s brands through the Macy’s Media Network, which is the department store chain’s in-house publisher.
It’s the first deal of its kind for Macy’s. Like many who are growing their retail media arms, the company is already putting customer data from loyalty programs to work for advertising on its own web properties. Through The Trade Desk, it is now making that data available to any advertiser, including brands whose products are sold at Macy’s and Bloomingdale’s.
Macy’s said it can provide access to 42.7 million active shoppers at Macy’s and 4.1 million at Bloomingdale’s. According to SimilarWeb, macys.com is the most-visited fashion and apparel site in the U.S. This will be combined with The Trade Desk’s reach to more than 100 million households, offering inventory across a range of surfaces including streaming TV.
“By working with The Trade Desk, we are empowering advertisers to optimize their media campaigns with a highly desirable and engaged audience set,” said Melanie Zimmermann, vice president of Macy’s Media Network in a statement. “We are excited to partner with the world’s leading advertisers to make their media matter.”
For The Trade Desk, Macy’s is the first apparel retailer to enter the company’s retail audience offering.
“Macy’s, Inc. is among the world’s renowned retailers with iconic brands like Macy's and Bloomingdale’s. And giving all advertisers the opportunity to layer on shopper and purchase insights from these retailers will help inform their media buys,” said Ben Sylvan, GM of Data Partnerships, The Trade Desk. “This partnership enables brands to buy tailored ads across the open internet, including connected TV, and drive efficiency to make the most of their advertising investments.”
It’s the latest sign that retailers are a fast-growing segment of the digital advertising ecosystem. As ecommerce grew, retailers activated advertising on their websites to add digital business lines of growth through retail media. Macy's was among them, and the department store in September launched a third-party marketplace in a bid to grow its assortment. It's a move out of the playbook of Amazon, which is the leader in retail media. More traffic and assortment means advertising grows more valuable.
But the Macy's opportunities to grow a retail media business don't end with its owned websites. Macy’s partnership with a top demand side platform shows how the first party data from purchases and loyalty programs that is used for onsite advertising can also be valuable to advertisers across the web, as well.
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Labor disputes on the West Coast could cause further disruption heading into peak season.
When the first half of 2023 is complete, imports are expected to dip 22% below last year.
That’s according to new data from the Global Port Tracker, which is compiled monthly by the National Retail Federation and Hackett Associates.
The decline has been building over the entire year, as imports dipped in the winter. With the spring, volume started to rebound. In April, the major ports handled 1.78 million Twenty-Foot Equivalent Units. That was an increase of 9.6% from March. Still it was a decline of 21.3% year over year – reflecting the record cargo hauled in over the spike in consumer demand of 2021 and the inventory glut 2022.
In 2023, consumer spending is remaining resilient with in a strong job market, despite the collision of inflation and interest rates. The economy remains different from pre-pandemic days, but shipping volumes are beginning to once again resemble the time before COVID-19.
“Economists and shipping lines increasingly wonder why the decline in container import demand is so much at odds with continuous growth in consumer demand,” said Hackett Associates Founder Ben Hackett, in a statement. “Import container shipments have returned the pre-pandemic levels seen in 2019 and appear likely to stay there for a while.”
Retailers and logistics professionals alike are looking to the second half of the year for a potential upswing. Peak shipping season occurs in the summer, which is in preparation for peak shopping season over the holidays.
Yet disruption could occur on the West Coast if labor issues can’t be settled. This week, ports from Los Angeles to Seattle reported closures and slowdowns as ongoing union disputes boil over, CNBC reported. NRF called on the Biden administration to intervene.
“Cargo volume is lower than last year but retailers are entering the busiest shipping season of the year bringing in holiday merchandise. The last thing retailers and other shippers need is ongoing disruption at the ports,” aid NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “If labor and management can’t reach agreement and operate smoothly and efficiently, retailers will have no choice but to continue to take their cargo to East Coast and Gulf Coast gateways. We continue to urge the administration to step in and help the parties reach an agreement and end the disruptions so operations can return to normal. We’ve had enough unavoidable supply chain issues the past two years. This is not the time for one that can be avoided.”