> ## Content Index > Fetch the complete content index at: https://www.nearmedia.co/llms.txt > Use this file to discover other available public pages before exploring further. # Booming Retail, Amazon's Prime Moat, Substack Local - URL: https://www.nearmedia.co/booming-retail-amazons-prime-moat-substack-local/ - Published: 2021-04-16T20:30:29.000Z - Updated: 2021-04-16T20:37:58.000Z - Author: Greg Sterling - Tags: News ### Stim-Driven Retail Booming, Online and Off March retail sales grew by [almost 10%](https://www.cnbc.com/2021/04/15/us-retail-sales-march-2021.html?ref=nearmedia.co), driven by government stimulus checks, vaccinations and increasing consumer confidence. New jobless claims were also lower than expected in the US. In particular, retail growth was attributed to sporting goods and apparel spending as well as restaurants. (Eating out is [a top consumer desire](https://www.nearmedia.co/travel-eating-out-demand/).) Traditional [retailers](https://www.cnbc.com/2021/04/14/american-eagle-says-first-quarter-sales-set-to-top-1-billion.html??ref=nearmedia.co) are benefitting, as is e-commerce. According to Salesforce [data](https://www.salesforce.com/news/stories/q1-shopping-index-global-digital-commerce-grew-58-percent-stimulus-checks-boost-u-s-sales/?ref=nearmedia.co) US e-commerce grew 45% YoY, while global growth was 58%. Canada saw 111% YoY. The top e-commerce categories were sporting goods (101%), home appliances (96%) and luxury handbags (95%). ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2021/04/Screen-Shot-2021-04-16-at-1.00.36-PM.png) Source: Salesforce Q1 2020 Shopping Index **Our take:** - JP Morgan Chase: consumers have $2 trillion more cash than before Covid. Pent-up demand + cash = retail growth. - Analysts see e-commerce and local shopping as enemies. They're not; for omnichannel retailers they're [mutually supportive.](https://uberall.com/en-us/resources/blog/the-future-of-retail-stores-1?ref=nearmedia.co) - COVID rates [are rising](https://www.healthline.com/health-news/here-are-the-states-where-covid-19-is-increasing-2?ref=nearmedia.co) in the US. If vax rates stall because of [political opposition](https://www.pbs.org/newshour/show/why-41-percent-of-republicans-dont-plan-to-get-the-covid-vaccine?ref=nearmedia.co) that will slow the recovery, especially for SMBs. ### Amazon Grabs 50 Million More Prime Subs During COVID More of Amazon's competitors are implementing or complementing Prime-like paid-loyalty programs with free shipping and other perks (BestBuy is the [latest to do so](https://corporate.bestbuy.com/best-buy-piloting-paid-membership-program-in-select-markets/?ref=nearmedia.co)). Amazon Prime is arguably the world's most successful loyalty program. And in a recent shareholder [letter](https://www.aboutamazon.com/news/company-news/2020-letter-to-shareholders?ref=nearmedia.co) soon-to-be-former Amazon CEO Jeff Bezos announced the company now had "more than 200 million Prime members worldwide." This is +50 million since Q1 2020\. Roughly 74% are in the US according to [Consumer Intelligence Research Partners](https://files.constantcontact.com/150f9af2201/b40e6a74-3f15-4eaf-bb6b-5f781ed8b319.pdf?ref=nearmedia.co). Prime members spend more and buy more often than non-Prime shoppers. Amazon also said, "1.9 million small and medium-sized businesses sell in our store, and they make up close to 60% of our retail sales." ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2021/04/Screen-Shot-2021-04-16-at-1.21.57-PM.png) Source: CIRP, growth of Amazon Prime members in US **Our take:** - Walmart won sellers to its marketplace by [emphasizing quality and less competition](https://www.reuters.com/business/retail-consumer/how-pandemic-helped-walmart-battle-amazon-marketplace-sellers-2021-04-14?ref=nearmedia.co). Amazon's reputation is mixed among small sellers. - Unsurprisingly, Amazon improved Prime retention numbers during COVID. People shopped there out of necessity. - Major retail brands can compete with Amazon using omnichannel assets. Prime and Amazon-consumer trust are major barriers for others however. ### Are Newsletters the Future of Local News? Publishing platform Substack has [announced](https://blog.substack.com/p/introducing-substack-local-for-a) Substack Local, an attempt to bring the newsletter-subscription model to local journalism. The program will distribute $1,000,000 to up to 30 writers, to be chosen from a larger applicant pool. Each writer may be given a $100K "advance" and then receive 15% of subscription revenue for a year, to revert to 90% in year two. The company wants to "foster and develop the local news ecosystem by helping independent writers build local news publications based on the subscription model." It will also provide a range of other benefits, including mentorship from experienced journalists, access to subsidized health insurance and design services. ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2021/04/Screen-Shot-2021-04-16-at-1.11.08-PM.png) **Our take:** - Substack cites existing success stories of local news on its platform as the inspiration for formalizing Substack Local. - Call this an intriguing experiment; hopefully it will succeed. But it's not a solution to the structural challenges of producing local journalism. - Online advertising, which relies on scale and targeting, can't support local news. But the subscription model also has serious limitations. ### Recent Analysis: - **Survey: Travel and Eating Ou**t Are [What Americans Have Been Missing](https://www.nearmedia.co/travel-eating-out-demand/) Most. - **Building Consumer Trust:** Why [Businesses Need to Tell Visual Stories](https://www.nearmedia.co/visual-stories-employee-images/) with Their Employees. ## Short Takes - New way to [discover](https://www.facebook.com/business/news/new-facebook-tools-for-online-marketing) **SMBs in the Facebook News Feed**. - Survey: ease of use **top [reason](https://leadferno.com/blog/survey-why-do-consumers-want-to-text-a-business?ref=nearmedia.co) for texting with a business.** - **Retailers blindsided by "suburbanization surge**" [pre-dating COVID](https://www.retaildive.com/news/the-shift-to-the-suburbs-predates-covid-19-did-retailers-miss-the-signs/598320/?ref=nearmedia.co). - SMB marketing firm **Scorpion [raises](https://www.reuters.com/technology/internet-marketing-firm-scorpion-raises-100-mln-bregal-sagemount-2021-04-14/?ref=nearmedia.co) $100 million**. - [Facial recognition](https://www.zdnet.com/article/billions-of-smartphone-owners-will-soon-be-authorising-payments-using-facial-recognition/?ref=nearmedia.co) and the **future of mobile payments**. - LG [emerges](https://www.tomsguide.com/news/apple-car-may-have-found-its-production-partner-and-its-not-who-youd-expect?ref=nearmedia.co) as **potential Apple Car partner**. - Verizon Media [intros](https://www.globenewswire.com/news-release/2021/04/14/2209901/0/en/Verizon-Media-launches-Next-Gen-Solutions-the-future-of-ID-less-advertising.html?ref=nearmedia.co) ad **solutions for "ID-less targeting**." - Google Earth [timelapse](https://blog.google/products/earth/timelapse-in-google-earth/?ref=nearmedia.co) shows the **ravages of climate change**. - An [investor analysis](https://a16z.com/2021/04/13/latin-america-fintech/?ref=nearmedia.co) of **Latin America's Fintech/neobank markets**. - **5G expected to [boost](https://www.marketingdive.com/news/5g-promises-to-unlock-wider-adoption-of-ar-in-marketing/598423/?ref=nearmedia.co) AR** in marketing, for e-commerce especially. Listen to our [latest podcast episode](https://www.nearmedia.co/memo/). [![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2021/02/near_memo_banner.png)](https://nearmedia.co/memo?ref=nearmedia.co) Please let us know what you think. Email [gsterling@nearmedia.co](mailto: gsterling@nearmedia.co) with suggestions and recommendations.