In today’s top retail news, Peloton has been subpoenaed by the federal government over its handling of dozens of reported injuries caused by treadmills, and PYMNTS data show that Amazon has held onto its front-runner status over Walmart for the third quarter in a row, though neither company gained or lost much ground. Also, Gap has acquired eCommerce startup Drapr to help remove the friction of finding the right fit online.
Connected fitness giant Peloton has been subpoenaed by the U.S. Department of Justice and Department of Homeland Security for documents and information related to how the company reported injuries caused by its treadmills. The matter is also being investigated by the Consumer Product Safety Commission over the injuries, and the Securities and Exchange Commission is looking into public disclosures made on the subject.
So far, projections that Amazon was going to pull away from rival Walmart and never look back have proven to be premature, as the big-box retailer’s investment in omnichannel capabilities has kept it in the race, with the two essentially tied — at least for now. Between the two retail titans, the share of consumer retail spending remained relatively unchanged between April and July, with Walmart gaining nothing and Amazon losing only one-tenth of a percentage point.
Gap Inc. has acquired eCommerce startup Drapr as part of the company’s increasing focus on digital sales, an initiative that helped boost the San Francisco-based apparel retailer to its best second-quarter sales in over a decade. Drapr allows customers to create 3-D avatars and virtually try on clothing to help find the best clothing size and fit for their style and body type.
Footwear and apparel retailer Allbirds has opened its 30th global location in Atlanta’s Ponce City Market. The 3,000-square-foot outpost includes a retail store and community center, and joins other locations across North America, Asia and Europe.