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Why Apple owes a huge debt to Minnesota & why its second HQ will be located there.

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First, the Debt:

In 1978, just two years after it was founded, Apple won a contract with the Minnesota Education Computing Consortium (MECC) to supply 500 computers for Minnesota schools. Through what InfoWorld described as an “enviable showcase” for its products, Apple sold more than 5,000 computers to MECC by 1983, making MECC, Apple’s largest reseller.

As Steve Jobs said in an interview with The Computerworld Smithsonian Awards Program, “One of the things that built Apple II’s was schools buying Apple II’s.”

Cray Research made Minnesota the super computer capital of the world from the 1960s-80s. Without Seymour Cray’s pioneering technology developed when he created the fastest computers ever made, the personal computing revolution could never have happened.

Why Apple will build HQ2 in Minnesota:

1)    Highly educated and extremely productive workforce.

2)    High quality of life attracts top talent. Home to 17 Fortune 500 companies.

3)    Best Buy, headquartered in Minnesota is currently Apple’s largest reseller.

4)    Innovation is the key to growth for any company and Minnesota is a leader in retail & technological innovation. Think Target, 3M and Medtronic.

As the founder of another Minnesota original, Geek Squad, Robert Stephens explained; “Why is Minnesota such a great place to do business and how did so many creative people end up here? Because it’s cold. There’s nothing to do but sit by the fire, read books and strategize against your competition.”

So is Minnesota the odds on favorite for Apple HQ2?

You betcha!

Retail 2017: The good, the bad and the ugly.

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The Good:

  • U.S. retails sales growing at fastest pace in three years.
  • C-Stores continue to grow fueled by Millennials
  • Grocery produce growth outpaces other categories – again fueled by Millennials
  • Just over half of Millennials prefer shopping at a brick & mortar store vs online.
  • 81% of young Gen Z (age 13-21) said they preferred to shop in stores, while 40% said they will only shop in stores.

The Bad:

  • A record number of retail store closings, close to 7,000 in 2017.
  • Hispanic spending was down. Retail experts, economists and business leaders believe the administration’s stance on undocumented immigrants is causing anxiety in the Latino community. Hispanic business leaders added, “Many Hispanic consumers are saving money in case something happens to them or their loved ones in any crackdown on immigrants.”

The Ugly:

  • Shiny, gray concrete floors have become all the rage at many retailers. Shiny is good, but many consider gray to be a soul-crushing color that promotes a feeling of being in a warehouse. Hopefully, we’ll see some Earth tones or brighter floor colors in 2018.
  • Package theft by porch pirates continues to grow. Nearly 20% of American homeowners have been a victim of package theft in the last year.
  • Consumers perception of ugly produce (picked by someone else) continues to slow the adoption of online grocery buying.

What Online Retailers Can Do to Stop Porch Pirates

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As online purchasing continues to rapidly grow, so does the theft of packages sitting on doorsteps and porches. It happens year-round, but thefts really spike during the holidays.

Not a big deal? Nearly 20% of American homeowners have been a victim of package theft in the last year and the median value of a stolen package was $250, according to a recent survey by Ring, a home security firm.

Another survey by Shorr Packaging found that 61% of consumers feel online retailers are not doing enough to prevent package theft. Online retailers may feel it’s out of their control, but there are some things they can do:

Offer theft insurance – 53% of respondents in the Shorr survey said they would pay more for a product if offered theft insurance.

Ship in discreet packaging – 37% said they would pay more if the package were more discreet. That is, the packaging hides the more enticing brands or products from thieves.

Ship to a secure location – 71% of the respondents said they would be open to having their packages sent to a secure address such as a U.S. Post Office, UPS store, or Amazon locker or their workplace.

The above options will take some time to implement. What can online retailers do now? You can alert customers to the growing package theft problem on your website (at checkout and/or in a blog?) and offer some suggestions such as:

  • Provide delivery instructions to leave the package at the back door or hide behind a plant on the porch. However, thieves may follow delivery trucks and see the where the package is hidden.
  • Provide security code – If your customer has a key-pad front door lock or garage door opener, they can provide the door opening code to the delivery service. But some customers may not want delivery people entering their home and like having to change their entry code after every delivery.
  • Advertise a security system real or imagined by placing security stickers, yard signs and security cameras where thieves will see them. Thieves can be easily deterred and will move on to another house if they fear triggering an alarm. Just remember, some thieves disguise themselves and may not fear video surveillance.
  • Ask a neighbor to hold it for you. A neighbor can pick up a package at your door or have it delivered directly to them. This may not be a practical option for many.
  • Secure containers/alarms. There are plenty of secure storage container options available that can be placed on the front porch. Choices range from large metal boxes to the Amazon Porch Pirate bag that locks and tethers to a doorknob or post. The Package Guard is a disc that sits on a porch and once a package is placed on it, a 100-decibel alarm goes off if it’s removed before a wireless code is entered.

If your customers happen to live in San Francisco, Chicago or New York, they can use Doorman(for an extra fee) to have the packages delivered when they are at home.

Online retailers need to understand the growing problem of porch piracy. The ones that succeed will take a proactive approach and come up with innovative solutions to help their customers.