Weekly Consumer News Update // February 28, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Cartier's new Snapchat experience, DoorDash Challenges Instacart, and more. 

 M&A and INVESTMENTS

• Amazon completes $3.9 billion deal for One Medical WSJ
• Bill Gates Buys Stake in Heineken for $902 Million Bloomberg
• Target Investing $100 Million in Sortation, Speeding Up Online Orders WWD
• Buzzy Storytelling Startup Tome AI Raises $43 Million in Series B Funding Forbes
• Dick’s Sporting Goods to buy e-commerce outdoor retailer Moosejaw from Walmart CNBC
• Levine Leichtman Capital Partners Acquires Kilwins Quality Confections Business Wire
• GSK Spinoff Haleon Explores Potential $600 Million Sale of ChapStick Brand Bloomberg
• L Catterton Nears Agreement to Buy Ilegal Mezcal Bloomberg
• Altria in Talks to Buy Vaping Startup NJOY for at Least $2.75 Billion, Divest Its Stake in Juul WSJ

INDUSTRY NEWS

Starbucks bets big on olive oil-infused Oleato coffee line

Starbucks is launching olive oil-infused coffee in Italy, with plans for a U.S. launch this spring. Yahoo

How Luxury Is Using Augmented Reality

Cartier’s new augmented-reality experience in Snapchat highlights how luxury is testing the technology for storytelling and as a sales driver. BoF

Adidas renews deal with Major League Soccer

The deal goes through 2030 and is valued at $830 million, according to a person involved. It represents Adidas’ largest-ever investment in North American soccer. CNBC

Shopify to expand program offering better delivery date visibility

Shop Promise provides shoppers with reliable and accurate delivery dates, which has helped merchants in the program see up to a 25% increase in conversion rates. RetailDive

Pay-Per-Chew: More restaurants trying subscription programs

Large chains like Panera and P.F. Chang’s as well as neighborhood hangouts are increasingly experimenting with the subscription model as a way to ensure steady revenue and customer visits. AP News

Beautycounter’s Conscious Decision to Expand Its Retail Footprint

Proving that a true omnichannel approach is key to meeting the consumer wherever she is, Beautycounter has signed a deal to enter Ulta Beauty stores. CEW

'Stubborn' food inflation leaves U.S. shoppers with slim appetite for other goods

As American shoppers stomach soaring food prices, they are cutting back on purchases of other goods, such as toys, clothing and housewares, in a challenging trend for retailers. Reuters

Kids Brand Hanna Andersson Launches Its Own Resale Site

The children’s brand known for making clothes that become prized hand-me-downs when they are outgrown has launched an online resale shop. Forbes

Mercedes partners with Google to bring Maps and YouTube into its vehicles

It’s an unusual deal that attempts to strike a Goldilocks-type balance between offering the Google services consumers want without ceding control over the entire operating system in the car. TechCrunch

Amazon is leaning into virtual influencers to engage younger consumers

The tech giant’s investment in design studio Superplastic may mean the digital celebrity trend makes its way to your doorstep sooner than you think. Retail Brew

How Party City’s Party Ended: What Went Wrong

Helium shortages. Halloween parties. Home lockdowns. These are just a few of the factors that have led to Party City filing for bankruptcy. WSJ

Big city restaurants and bars are missing office workers’ spending on Mondays and Fridays

Hybrid work is costing cities, like LA, NYC, ATL, and their businesses billions of dollars a year. CNBC

Subway plans electric car charging "oasis"

It's a hint of what's to come as companies with big retail footprints figure out creative ways to embrace the electric transition — and make a buck or two along the way. Axios

Sneaker resale prices are falling to Earth

Price declines are signaling that the froth has left the market, leading sneaker heads and analysts alike to wonder if the market is crashing — or just normalizing. Axios

NPR to Cut 10% of Its Staff

The nonprofit media organization, which has a staff of about 1,100 people, said the layoffs were required because of a slowdown in advertising and a drop in corporate sponsorships. NYT

DoorDash Challenges Instacart With Aldi Partnership

The partnership will see DoorDash offer deliveries from more than 2,100 Aldi locations across the U.S. The Information

Ulta Beauty Makes a Dedicated Luxury Push

Chanel, Dior and Hourglass are among the inaugural assortment. WWD

Pizza brands like Domino's, Papa John's struggle with delivery decline

It was a rough week for pizza companies, as some of America's biggest pie chains struggle to overcome waning demand for delivery. Business Insider

Warner Bros. Discovery sues Paramount in South Park streaming fight

The company claims Paramount ‘induced’ South Park Digital Studios to breach its licensing agreement with HBO Max. The Verge

Elon Musk’s Twitter Cuts More Jobs as Platform Seeks to Slash Costs

Social-media company’s staff has shrunk since billionaire acquired it last year. WSJ

Food makers, feeling squeezed, pull the plug on slow-selling products

Major consumer companies including Kraft Heinz Co and Conagra Brands are culling product lines to combat sky-high costs and falling consumer demand. Reuters

Amazon Expands Same-Day Delivery, With Fees, While Battling Slow Growth

Company invests in ultrafast delivery as it also tries to trim expenses. WSJ

AI and ChatGPT are selling cars in the metaverse

With their newly introduced "metaverse" dealerships, Fiat and Kia both hope to revolutionize the car-buying experience. Axios

COMINGS & GOINGS

• Bath & Body Works names new director under pressure from activist investor US News
• Spotify Podcast Executive To Exit Company Bloomberg
• Former Chanel CEO Maureen Chiquet Joins La DoubleJ as Chairwoman BoF
• Apple reportedly names exec to build out streaming ad business Seeking Alpha
• Vice Media CEO Nancy Dubuc to depart Axios
• Twitter Blue head Esther Crawford is out at Twitter The Verge
• FarFetch CFO to exit in 2023 Retail Dive
• Christie’s Names Global Head of Luxury WWD
• Ariana Grande’s R.e.m. Beauty Hires New CEO WWD
• Kohl’s Taps Dave Alves as President and Chief Operating Officer Footwear News
• Marriott International announces five new executive appointments Luxury Daily

GOOD READS

• What Does the Future Hold for Malls? Retail Touchpoints
• A warning from Walmart about the health of the American consumer The Economist
• Why retailers and platforms are rushing to incorporate AI and ChatGPT into online shopping ModernRetail
• Consumers are reaching a breaking point Vox

INSPIRATION