Weekly Consumer News Update // February 7, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Google unveils its ChatGPT rival, Adidas, Forever 21 & Meta target Gen Z, and more. 

 M&A and INVESTMENTS

• Ariana Grande to Buy Beauty Brand Assets for $15 Million BoF
• Thrive Capital believed to be leading new multibillion-dollar investment in Stripe TechCrunch
• Triple Whale raises $25M for its Shopify data platform TechCrunch
• Ryan Cohen Takes Stake in Nordstrom WSJ
• Google invests $300mn in artificial intelligence start-up Anthropic Financial Times
• Public Storage Bids for Rival in Unsolicited $11 Billion Offer WSJ
• Etc Venues bought by US rival to tap into remote working shift Financial Times
• Restaurant chain Cava confidentially files for U.S. IPO Reuters
• Rothschild Family Bids $1.6 Billion to Take Namesake Bank Private WSJ
• Vox Media Is Raising $100 Million From Penske Media NYT
• CVS Nearing $10.5 Billion Deal for Primary-Care Provider Oak Street Health WSJ

INDUSTRY NEWS

Nike Sues Lululemon Over Alleged Patent Infringements

The activewear giant opened legal proceedings alleging that the Canadian sportswear brand’s Blissfeel, Chargfeel Low, Chargfeel Mid and Strongfeel sneakers infringe patents related to textile and other design elements of its footwear. BoF

Netflix is putting an end to password sharing by the end of March

To ensure memberships aren't shared outside a single household, Netflix will require users to note their primary location using their TV. Fortune

Robots could surpass workers at Amazon by 2030

“We are just at the dawn of the robotics age. And I would say artificial intelligence and battery technology are all a part of that movement as well,” Cathie Wood said. CNBC

Fanatics to Start Livestreaming Service for Collectibles

Fanatics Inc. is starting a livestreaming commerce service for collectibles as looks to expand its memorabilia empire. The company has brought on former Snap Inc. executive Nick Bell to lead the new division, called Fanatics Live. Bloomberg

OpenAI to Offer ChatGPT Subscription Plan for $20 a Month

ChatGPT allows users to type questions to the bot and receive written responses powered by artificial intelligence. The company plans to continue offering a free version of the chatbot. WSJ

Adidas wants to become the sportswear brand of choice for Gen Z shoppers as it launches a collection aimed at taking on Nike

This is the first time Adidas has launched a new label in 50 years, names new ambassador. Business Insider

How Tom Brady's robust trademark and brand strategy that spans cookbooks to skincare is setting him up for life after the NFL

Tom Brady is retiring from the NFL "for good," the seven-time Super Bowl champion announced — and his myriad trademark applications point to the business interests he could pursue in his post-football career. Business Insider

How Amazon’s Bricks-and-Mortar Dreams Hit a Wall

Amazon once had audacious plans for remaking physical retail, including a secret effort to take on Target. Now it’s closing stores and pausing the opening of ones that have already been completed. The Information

Magic Spoon expands retail launch to 6,800 stores

Magic Spoon first became available at retail last summer, when it launched at Target. The brand will now be available at more Target stores, as well as Walmart, Kroger and Albertsons stores. RetailDive

Breakfast has never been so expensive
Americans aren’t just chasing scarce eggs — and paying more for them — they’re snapping up egg-laying chickens. Meanwhile, Florida's expecting its smallest citrus crop in 90 years, pushing the price of juice up 20% higher than in 2016, and further squeezing our wallets. Linkedin News

Without the Shop tab, brands rethink Instagram strategies

Instagram is relegating the Shop tab in favour of a renewed focus on content creation on the homepage. What does it mean for fashion and beauty brands? Vogue Business

Ugg product strategy and Hoka popularity are fueling Deckers’ DTC sales

Deckers posted record growth and big gains in DTC sales, thanks to skyrocketing sales of Hoka running shoes and the continued popularity of sheepskin boot brand Ugg. ModernRetail

Subway to Add Thousands of Restaurants Outside the U.S.

CEO John Chidsey looks abroad for growth as sandwich chain seeks to boost sales. WSJ

TikTok is driving an offline lift in sales for some brands

While TikTok ads and posts are typically known for driving online traffic for brands either to their Amazon storefronts or DTC sites, some brands are observing an increase in their offline sales through these videos. ModernRetail

Beyond Meat Hires Marketing Executive, Revamps Retail Strategy

Akerho Oghoghomeh joins the plant-based meat company from Red Bull as Beyond looks to turn around its business. WSJ

Apple CEO Tim Cook says artificial intelligence 'is a major focus of ours'

The 62-year-old Cook added that the tech giant sees "enormous potential" for AI to impact "virtually everything we do." Seeking Alpha

Amid food inflation, more shoppers turn to dollar stores for groceries

Discount dollar stores are becoming a key destination for affordable essentials, including perishable and nonperishable goods. CNBC

Roblox to host a free virtual Super Bowl concert

Hip-hop artist Saweetie is performing exclusively in Roblox for the NFL’s Super Bowl LVII pregame on February 10, the National Football League announced today. TechCrunch

Retail layoffs in January spiked 3,225% year over year

Amid fears of an upcoming recession, retailers cut 13,000 jobs last month, a 3,225% increase year over year, according to a report from Challenger. RetailDive

Nestle to hike food prices further in 2023

The increases will not be as steep as they were in 2022, but "we have some catching up to do over the full year." Reuters

AMC Will Charge More for the Best Seats in Its Movie Theaters

The world’s largest theater chain is experimenting with a tiered-pricing structure based on seat location called Sightline. Bloomberg

Dell to Cut About 6,650 Jobs, Battered by Plunging PC Sales

The reduction amounts to about 5% of Dell’s global workforce. Bloomberg

The Vitamin Shoppe Rolling Out Franchises

The health and wellness retailer is eager to expand its already-extensive brick-and-mortar footprint. WWD

Google unveils its ChatGPT rival

Google on Monday unveiled a new chatbot tool dubbed “Bard” in an apparent bid to compete with the viral success of ChatGPT. CNN

Paramount Reveals Plan to Remake Showtime in the Image of ‘Yellowstone’

Premium cable network overhauls slate around franchises after merger with streamer Paramount+. WSJ

Forever 21 is banking on brick-and-mortar and TikTok to fuel its comeback

Forever 21 closed more than 200 stores after being acquired out of bankruptcy in 2020 by Authentic Brands Group, Simon Property Group and Brookfield Property Group. Glossy

Meta to Revamp Horizon Metaverse App, Plans to Open for Teen Use as Soon as March

The new strategy will revitalize the app, open up Horizon to teens aged 13 to 17. WSJ

COMINGS & GOINGS

• Tiffany & Co. Creative Director Departs Jeweler WWD
• Diesel back in flux as CEO Eraldo Poletto exits Vogue Business
• Lanvin Group CFO Shang Koo Steps Down WWD
• Dollar General CFO to retire RetailDive
• Coatue General Partner David Cahn Departs for Sequoia Capital The Information
• Kohl’s Names Tom Kingsbury Chief Executive Officer WWD
• Kering Appoints Estée Lauder Veteran as Head of Beauty Division WWD
• Mike Brewer Joins Crate & Barrel Holdings, Inc. as Chief Operating Officer PR Newswire
• Endeavor Names Maura McGreevy as Chief Communications Officer WWD
• Stripe CFO Dhivya Suryadevara to step down Axios
• Carlyle Picks Goldman Veteran Harvey Schwartz as Next CEO Bloomberg

GOOD READS

• How to Recession-Proof Independent Retail BoF
  
• Why your last text message is probably from a brand RetailBrew

INSPIRATION