Weekly Consumer News Update // March 7, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Nordstrom & Best Buy plan store closures, Lego continues to outpace the toy market, and more. 

 M&A and INVESTMENTS

• AlixPartners UK to sell big stake in Sandro and Maje owner SMCP Fashion Network
• L Catterton to Take Majority Stake in A.P.C. WWD
• BelliWelli raises $15.4m in Series A round FoodBev Media
• A-Rod co-founded ticketing startup Jump raises $20 million Fortune
• Culinary marketplace Shef Raises $73.5M in Series B Funding TechCrunch
• Scotch & Soda reportedly exploring potential sale process Fashion United
• LVMH Is Rumored to Acquire Cartier's Parent Company, Richemont Yahoo
• Arezzo & Co Acquires Italian Footwear Brand Paris Texas BoF
• Authentic Brands Is to Near Deal for Quiksilver Parent BoF
• Marlboro Maker Altria Ditches Juul and Buys NJOY for $2.8B WSJ
• WeightWatchers to buy Sequence telehealth for $106M, enter obesity drug prescription business Reuters

INDUSTRY NEWS

Parade Inks Target Partnership

The direct-to-consumer underwear brand is now sold in 400 of the chain’s big-box stores nationwide — its second wholesale deal after Urban Outfitters. BoF

US retailers' lure cash-strapped customers with products under $5

Target said on Tuesday that it would be stocking its shelves with more products priced under $10 as the retailer tries to appeal to more cost-conscious consumers dealing with once-in-a-generation inflation. Reuters

Instacart Launches Business-Focused Delivery Offering

New format will cater to businesses owners, particularly at the small and local level. Supermarket News

Meta Plans Four New AR/VR Devices in Next Four Years

Execs laid out plans for three new Quest headsets, AR glasses in 2027, and a ‘neural interface’ smartwatch. The Verge

High Noon, the top-selling canned cocktail, is expanding beyond vodka

The top-selling adult beverage is introducing a tequila seltzer to its portfolio, marking the four-year-old brand’s first extension beyond its popular vodka lineup. CNN

Macy’s, Best Buy Sales Decline, Reflecting Shopper Pullback

Consumers pulled back on purchases of apparel and electronics in recent months while continuing to spend on groceries and other necessities. WSJ

Walmart To Double Health Clinic Footprint As Amazon And Rivals Buy Doctor Offices

Walmart will nearly double the number of new doctor-staffed “Walmart Health” centers it operates next year, announcing plans to add 28 new locations in 2024 alone. Forbes

AMC to sell movie theater popcorn exclusively at Walmart in latest attempt to make up for decline in customers

AMC is going to sell 6 varieties of movie theater popcorn in Walmart starting on March 11. Business Insider

‘Free’ Should Be A 2023 Retail Trend. Just Ask Publix, Chick-Fil-A And Nordstrom

At a time when consumers appear to be nickeled and dimed at every turn, one shiny apple can be a pretty persuasive freebie. Forbes

Target will allow you to return items from your car starting this spring

By using the no-charge Drive Up Returns service, the customer would instead simply hand over their item to a Target employee and receive their refund quickly. TechCrunch

Nordstrom says it will close its Canadian stores and cut 2,500 jobs

The Seattle-based retailer has six Nordstrom and seven Nordstrom Rack stores in Canada, which will be shuttered by late June. NPR

ESPN wants to be the hub of all live sports streaming

ESPN has talked with major sports leagues and media partners about launching a feature that would link users directly to where a live sporting event is streaming. CNBC

New drugs could spell an end to the world’s obesity epidemic

Analysts think the market for glp-1 drugs could reach $150bn by 2031, not far off the market for cancer drugs today. The Economist

Inside the “Chipotlane” strategy

Chipotle says its pick-up window is faster, more efficient, and part of an industry-wide effort to promote takeout over delivery. Retail Brew

Best Buy to close as many as 30 stores this year

Consumers still feel economic and inflationary pressures, which the company said contributed to a decrease in its domestic revenue to $13.5 billion, down nearly 10% year over year. RetailDive

The Victoria’s Secret Fashion Show Is Coming Back—The Internet Is Divided

The lingerie brand announced during its 2022 earnings call on Friday that it’s seeking to revamp its Angel wings–filled production, which was once one of the most anticipated (and watched) in the world. Vogue

Nestle, Tyson and other food giants bet on air fryer boom to grow sales

As inflation cools and retailers put pressure on suppliers to stop raising prices, food companies have had to look for growth elsewhere. CNBC

More Big Brands Brave the Rocky Terrain of Endorsement Deals With College Athletes

From car dealerships to political-action committees, organizations big and small are striking endorsement deals with college athletes—known as name, image, likeness arrangements—that despite marketer enthusiasm remain a largely untested frontier. WSJ

US retailers prepare for ‘new normal’ in 2023 after rocky year

Inflation and cost of living squeezed spending in America as mall retailers and department stores including Abercrombie & Fitch, American Eagle, Target and Nordstrom reported sluggish growth in 2022 and set cautious forecasts for the year ahead. Vogue Business

$30 million of Funko Pop! toys will be thrown in the trash

The product they’re storing is now worth less than the cost of keeping it on hand, so they’re dumping at least $30 million worth of it. CNN

Bars, Hotels and Restaurants Become the Economy’s Fastest-Growing Employers

Hospitality companies revive their hiring after pandemic cuts, offsetting slower growth in tech jobs. WSJ

Rent the Runway is giving customers an extra item for free

Rent the Runway Inc. will add an extra item to each shipment at no additional cost to subscribers, a sign that the fashion-rental company’s recent restructuring efforts are giving it greater financial flexibility. Fortune

How Lego Beat Barbie and Monopoly

Maker of toy bricks reports 17% rise in sales, pushing further ahead of U.S. rivals. WSJ

Vivrelle Partners With Four Seasons for ‘Complimentary’ Luxury Accessory Rentals

During their length of stay, Four Seasons Houston guests can borrow as they please from Vivrelle, including brands like Gucci, Prada, Saint Laurent and more. WWD

Grocery retailers are among the first to embrace ChatGPT

While all types of retailers are excited about using ChatGPT, grocers have compelling reasons to jump into this head first, for a few reasons. Modern Retail

Home Depot takes Kids Workshops to the metaverse on Roblox

The virtual experience is based on the home improvement chain’s in-person Kids Workshops, designed as hands-on learning experiences for children. Retail Dive

Meta planning thousands of more cuts after widespread layoffs

CEO Mark Zuckerberg is pitching 2023 as the "Year of Efficiency." The layoffs could begin this week and affect thousands of employees. CNBC

COMINGS & GOINGS

• SaksOff5th.com CEO Leaves the Company WWD
• Venus Williams joins private equity firm Topspin Consumer Partners Reuters
• Qurate Retail Group brings on Everlane vet as CFO RetailDive
• Fanatics Taps Former Red Bull Exec to Head Marketing for Collectibles Division Sports Business Journal
• Vice’s Head of News and Entertainment Departs Company The Information
• Zoom Abruptly Fires President Greg Tomb ‘Without Cause’ Bloomberg
• Tiffany & Co. Appoints Lauren Santo Domingo Its First Artistic Director for the Home Category WWD
• Edgar Huber Named Nest’s New CEO WWD
• Stéphane Rinderknech Named Chief of LVMH Perfumes and Cosmetics WWD
• Versed Names Kerry Sullivan CEO 

GOOD READS

• Disney’s Hulu Deal Ain’t Over Till It’s Over The Information
• How the DTC Bust Could Play Out BoF
• Why Companies Are Pushing Premium Products With Higher Prices NYT

INSPIRATION