Weekly Consumer News Update // January 17, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Rent the Runway partners with Amazon, the era of DTC brands is over, Tesla cuts prices, and more. 

 M&A and INVESTMENTS

• P&G Beauty Acquires Mielle Organics WWD
• Morphe, R.E.M. Beauty Parent Forma Brands Files for Chapter 11 Bankruptcy BoF
• Blue Owl ups bet on GP stakes with nearly $13B in new commitments PitchBook
• Subway Explores Sale That Could Value Sandwich Chain at More Than $10 Billion WSJ
• L’Oréal, British Fashion Council Among New Investors in Metaverse Developer Digital Village WWD
• L Catterton Sells Bliss World to AS Beauty WWD
• Bed Bath & Beyond in Talks with Sycamore Partners to Sell Assets NYT
• Digital fashion startup Syky raises $9 million and launches first NFT Vogue Business

INDUSTRY NEWS

Instagram is going back to its roots

Instagram is removing the Shop tab, moving Reels from the center spot in design overhaul next month. TechCrunch

Hollywood Bets Moviegoers Are Ready to Return to Theaters

As fears about public gatherings fade, studios roll out franchises like Mission: Impossible and the Marvel universe to woo fans back. Bloomberg

Mattress Firm pulls IPO plans amid recessionary fears

The mattress retailer first filed for the IPO in January 2022, indicating it was looking to raise $100M, a number that was likely a placeholder and subject to change. Seeking Alpha

Lively Founder Launches Clean Energy Drink

The first-ever beverage of its kind created by women, Gorgie, has been built with a digital-first approach with a growing community on social media. WWD

Pepsi is ditching Sierra Mist for a new Sprite rival

Starry, a new lemon-lime soda, is rolling out to grocery and convenience stores this week. It’s replacing Sierra Mist, a 24-year-old brand that has failed to gain traction against market leader Sprite. CNN

In-N-Out Burger moving east, expanding into Tennessee

In-N-Out Burger is "double-doubling" down on growing its business, announcing it would open new locations in Tennessee, the farthest east the company has ever gone. NPR

ColourPop Cosmetics Is Coming to Target

The brand, best known for its affordable prices and buzzy limited-edition collections, is hitting Target shelves and target.com starting Jan. 29. WWD

Babies R Us attempts comeback

Babies R Us, which went out of business in 2018, will open a new flagship store at the American Dream megamall in New Jersey. CNBC

Walmart strikes a deal with Salesforce to sell more of its tech to other retailers

The tech includes GoLocal delivery service, which drops off purchases at customers’ doors; and Store Assist, which helps employees more quickly and accurately pick and pack orders for curbside pickup and delivery. CNBC

Consumer prices rose 6.5 percent in the year through December, as the overall pace of U.S. inflation continues to ease

The continued slowdown was a welcome relief for American households and a positive development for policymakers at the Fed and the White House. NYT

The era of DTC brands is over. Here’s what the next generation of startups looks like

For a decade, DTC startups like Warby Parker and Everlane created a playbook for how to launch a successful brand. A new generation of founders wants to chart a different path. Fast Company

Twitter Makes TikTok-Like Feed the Default for Apple Mobile Devices

Twitter is the latest social media app mimicking TikTok, the short-form video app whose “For You” feed of videos tailored to a user’s perceived interests has contributed to TikTok’s rapid growth. The Information

Rent the Runway is now selling secondhand luxury clothes on Amazon

The rental company is offering lightly worn styles from more than 35 brands, and will feature items from the RTR Design Collective, exclusive clothes from emerging designers. Business Insider

Tesla cuts prices in the U.S. and Europe to stoke sales after lackluster year-end deliveries

The move may help Tesla qualify for more federal EV tax credits, and stoke sales volume here and abroad, after competition and interest rates increased. CNBC

Whole Foods Now Accepting Zappos Returns

Zappos reached an agreement for customers to make returns at Whole Foods. Amazon owns both retailers. SGB Media

Surging egg prices mean record profits for largest US egg producer

The egg shortage has enabled record quarterly profits and sales at Cal-Maine Foods (CALM), the largest producer and distributor of eggs in the United States. CNN

Nobu Hospitality Continues to Expand Global Footprint in 2023

Nobu Hospitality will open five new hotels in 2023, including Rome, Marrakech, Atlantic City, San Sebastián, and Toronto. Hospitality Net

How Aritzia Became the Hottest Fashion Chain in the US

Canada’s Aritzia is winning over Gen Z with its ‘everyday luxury.’ Over the past year, US sales have surged about 80%. Bloomberg

Disney says Peltz 'lacks skills' to help business as proxy battle heats up

Walt Disney Co defended its decision to deny Nelson Peltz a board seat, saying the activist investor "lacked the skills and experience" to help the media and entertainment giant. Reuters

Celebrity power fuels fashion’s Roblox strategy

Fashion brands including Gucci are getting comfortable on the platform, with celebrity partnerships driving engagement and fanfare. Vogue Business

HBO Max subscribers can now livestream U.S. national soccer games

Along with live coverage of the matches, HBO Max will also give subscribers pre-game coverage and post-game as well as replays. TechCrunch

Alarmed by A.I. Chatbots, Universities Start Revamping How They Teach

With the rise of the popular new chatbot ChatGPT, colleges are restructuring some courses and taking preventive measures. NYT

COMINGS & GOINGS

• LVMH Shuffles Leadership at Louis Vuitton, Dior WSJ
• Lacoste Taps Jamie Givens as CEO, North and Central America WWD
• Amazon Game Studios Executive Steps Down as Unit Struggles With Hits Bloomberg
• Disney names Nike executive Mark Parker as new chairman CNN
• Google Cloud’s Top U.S. Sales Execs Depart in Shakeup as Profits Remain Elusive The Information
• Four Seasons Announces Key Appointments to Operations Leadership Team PR Newswire
• Wendy’s Loses US CFO, Eliminates Chief Commercial Officer Bloomberg
• Beyond Meat’s Chief Brand Officer Beth Moskowitz Leaves Company WSJ
• Lululemon Names Elizabeth Binder Chief Merchandising Officer WWD
• Neiman Marcus Names Chief Brand Officer and Chief Retail Officer BoF
• Teri Bariquit to Retire as Nordstrom Chief Merchandising Officer PR Newswire

GOOD READS

• Why some digital natives are always tweaking their models RetailDive
• Why Retailers Will Continue To Open Stores This Year, Despite Economic Fragility Forbes
• The ‘Buy Now, Pay Later’ Bubble Is About to Burst The Atlantic

INSPIRATION