Retail Brew // Morning Brew // Update
How AI tools are changing shopping search.

Hello, it’s Thursday and the start of Fashion Week season in New York, where designers from Ralph Lauren and Collina Strada to Christian Siriano and Luar will be showcasing their latest looks. We’ll be here taking notes and maybe daydreaming about what our closets could look like.

In today’s edition:

—Vidhi Choudhary, Jeena Sharma, Katie Hicks

E-COMMERCE

Searching for an item on the internet isn’t what it used to be, mostly because we’re all ditching typing fragments and scrolling endlessly, thanks to AI. Nowadays, a shopper can simply ask for “the best fall jacket under $150” or a “cozy but modern sofa” and get precisely what they mean.

From the AI tweaks made by Google to AI tools like Amazon’s Lens Live are in many ways reshaping the convenience of search and shopping online and making this shift possible. Amazon recently dropped Lens Live—a visual search tool that lets you point your camera at stuff and instantly get product matches plus commentary from Rufus, its AI shopping assistant.

AI tools like Amazon Lens and Google Shopping, among others, act as personal shoppers, weaving together context, preferences, and recommendations in natural conversation, transforming search from a chore to a chat that coughs up what you’re looking for on the first try.

“The journey for search has always been to really ensure that the consumer is getting what they need based on their queries,” Vivek Pandya, lead analyst at Adobe Digital Insights, told Retail Brew. “What we’re now seeing is an evolution of the search happening almost at a prompt level. Where the prompt—it’s really taking in much more context, almost than even the searches.”

Keep reading here.—VC

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SUPPLY CHAIN

Holiday shopping

Nicoletaionescu/Getty Images

De minimis’s impending doom has finally arrived as the tax loophole that allowed for goods under $800 to come into the US duty-free officially closed as of August 29.

Naturally, retailers across the US are on edge, especially as the holiday season looms and consumers remain cautious about their spending.

Two experts Retail Brew spoke with said the impact of the tax exemption will be immediate and possibly most visible during the holiday season.

“It’s not a one-size-fits-all plan that when we talk to our clients, like ‘I’m going to pass on all the costs to the customer,’” Irina Vaysfeld, principal in KPMG’s trade and customs practice, told Retail Brew, explaining that while some retailers might choose to pass on some costs to consumers, others might evaluate price increases based on their SKUs.

Keep reading here.—JS

MARKETING

A Labubu, a Le Crueset Dutch Oven and a stuffed plushie pita chip coming out of the top of an open box.

Illustration: Morning Brew Design, Photos: Pop Mart, Le Crueset, Cava

Marketers love to “surprise and delight.” So do consumers.

People are increasingly purchasing items without knowing exactly what product, or which variation of a product, they’re going to get. This year, the phenomenon of blind boxes, or mystery boxes, which originated in Asian markets, took off with US consumers amid the growing popularity of keychain Labubu dolls and Sonny Angel figurines. Pop Mart, the brand behind Labubus and other blind-box brands, made 13.88 billion yuan ($1.93 billion) in the first half of this year alone.

MGA Entertainment sells blind-box items like LOL Surprise dolls, which first launched in 2016, and CMO Josh Hackbarth said the company is seeing a current “burst” in demand, which he credits in part to nostalgia and to the rise of the “kidult” consumer.

Keep reading here on Marketing Brew.—KH

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SWAPPING SKUS

Today’s top retail reads.

Never bag down: With luxury bag sales hitting a snag, some unexpected retailers are entering the market with their own collections. (Business of Fashion)

Global ambitions: Why Walmart is opening stores in Africa. (Reuters)

Watch out: From Panerai to Breitling, Edinburgh is becoming an appealing retail destination for luxury watch makers. (the New York Times)

Simple yet sophisticated: Square’s not just sleek hardware, it’s an all-in-one platform that powers checkout, inventory, and growth across your entire store. It’s seamless, intuitive, and built to help your business thrive. Use it with ease.*

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