Weekly Consumer News Update // February 21, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Canada Goose and The North Face invest in stores, Walmart and Home Depot ready for a consumer slowdown, and more. 

 M&A and INVESTMENTS

• Subway confirms it's exploring a possible sale CNBC
• Moët Hennessy to Acquire Majority Stake in Minuty Wine Estate WWD
• Liverpool FC owner John Henry calls off sale Financial Times

INDUSTRY NEWS

Is Sephora Enough to Revive Glossier?

The jury is still out on whether or not partnering with Sephora can jump-start the formerly direct-to-consumer darling. WWD

Chipotle Mexican Grill to launch new spinoff, Farmesa Fresh Eatery, in a ghost kitchen

Farmesa marks Chipotle’s first spinoff attempt during CEO Brian Niccol’s tenure and will have a soft opening in late February. CNBC

Pacsun launches first-ever branded ‘building tycoon’ on Roblox

The launch signals a move for brands away from gaming launches centered on shopping, and instead into world-building. Glossy

PwC Research Shows Shoppers Seeking In-store Experience

The report also revealed the consumer mindset around inflation, ESG and their financial situations. WWD

PayPal and Shopify See Big Business in Returns. Merchants Want to Fix the Problem Themselves

They offer services to help brands salvage revenue by convincing shoppers to swap out purchases or buy something else instead of requesting a full refund. The Information

Neiman Marcus is laying off 5% of its workforce

Neiman Marcus Group said it plans to lay off about 500 people across the organization, as part of a “strategic realignment to accelerate high-value luxury customer growth.” RetailDive

Twitter becomes first social media platform to allow cannabis advertising

The policy represents the biggest step forward that any major tech company has made toward allowing cannabis advertising where it's legal in the U.S. Axios

Kraft Heinz to abandon further price hikes as shoppers stretched thin

Kraft's move mirrors PepsiCo Inc that last week said it would not raise prices any further, expecting some consumer pushback in the second half of the year. Reuters

By Adding Apartments, Malls Seek to Bring Shopping Closer to Home

Facing an existential crisis over empty space, owners are trying to fill malls with residences, building on the live-work-play model sought by young adults. NYT

Instagram sunsets live shopping as commerce retreat continues

Creators and brands who are livestreaming will no longer be able to tag products to sell in their broadcasts. RetailDive

Pets Don’t Get Inflation, but They Are Feeling Its Effects

People used to spoiling beloved animals are having to make harder choices with higher prices. WSJ

Smooth sailing ahead for (most) off-price retailers

TJX is a standout in a space that continues to benefit from a dicey economy, while Nordstrom Rack struggles to gain a foothold. RetailDive

The RealReal Announces Layoffs, Store Closures

In an effort to cut costs, the luxury resale platform will lay off 230 employees and close four stores this year. BoF

Barnes & Noble Takes Page From Amazon With $40-a-Year Membership Program

Book retailer also launches free membership program in effort to learn more about its customers. WSJ

Jen Atkin Releases Hot Tools as Part of New Brand

The celebrity hairstylist is first unveiling a $75 Triple Ripple Jumbo Hair Waver, accessories and merchandise. WWD

TikTok expands its research API to nonprofit academic institutions in the U.S.

“TikTok is working to enhance transparency with the research community." TechCrunch

Why apparel companies like Canada Goose and The North Face are investing in stores

"Physical retail has never been more important." Modern Retail

ChatGPT launches boom in AI-written e-books on Amazon

There were over 200 e-books in Amazon’s Kindle store as of mid-February listing ChatGPT as an author or co-author. Reuters

Chanel Set to Open a Beauty Store in Williamsburg This Summer

The store will reportedly house beauty and fragrance, further cementing the neighborhood as a hotspot for luxury. BoF

Social networks’ latest business model is charging for security

Meta and Twitter are both using account security to attract paid subscribers — but in very different ways. The Verge

Uniqlo’s Quest to Conquer the US, One Cashmere Sweater at a Time

Although Uniqlo is a fixture in shopping streets of New York, parent Fast Retailing Co. is giving its flagship clothing brand a hefty marketing budget to reach Iowa and Texas. Bloomberg

Why Big Soda’s Alcohol Drinks Worry Health Experts

PepsiCo and Coca-Cola enter hard soda markets, causing concerns among regulators and researchers. NYT

Zalando to Axe Hundreds of Jobs as Pandemic-Fueled Online Shopping Fades

The German online retailer will cut hundreds of jobs across several teams to cope with "a challenging macroeconomic environment" as the pandemic-fueled shift to online shopping ebbed away. MarketWatch

Walmart and Home Depot are getting ready for a consumer slowdown

The retail giants' outlooks preview a tougher year for the retail industry. CNBC

The secret behind building Instagram’s favorite luxury lifestyle brand

Chelsea Hansford, CEO and creative director, of Simon Miller on taking the brand from selling denim to a modern and fun luxury label. Retail Brew

COMINGS & GOINGS

• Cartier Promotes Mercedes Abramo to Deputy Chief Commercial Officer Role BoF
• Hearst Publisher Carol Smith to Exit the Company WWD
• Yeti names permanent CFO RetailDive
• Nike's Chief Digital Information Officer, Ratnakar Lavu, resigns Business Insider
• Sweaty Betty E-Commerce VP Joins Harvey Nichols SGB Media
• Etro Names Dan Rothmann CEO Americas, Global Travel Retail WWD

GOOD READS

• Emily Weiss Is the LeBron James of Beauty BoF
• Why doesn’t Trader Joe’s deliver? Retail Brew
• Tech Giants are Barreling Headfirst into an AI Arms Race Vanity Fair

INSPIRATION