Weekly Consumer News Update // March 21, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Amazon announces another 9k layoffs, Clinique launches Web3 retail lab, and more. 

 M&A and INVESTMENTS

• T-Mobile to acquire Ryan Reynolds’ Mint Mobile in $1.35 billion deal TechCrunch
• First Republic Gets $30 Billion of Bank Deposits in Rescue Bloomberg
• Pornhub owner MindGeek sold to Canada's Ethical Capital Reuters
• L’Oreal, Permira Among Firms Competing for Aesop Stake Bloomberg
• UBS to Buy Credit Suisse in $3.3 Billion Deal to End Crisis Bloomberg
• JPMorgan CEO Jamie Dimon Leading Efforts to Craft New First Republic Bank Rescue Plan WSJ
• FDIC sells most of failed Signature Bank to Flagstar CNN
• Vitamin Shoppe owner Franchise Group discloses buyout offer at ~$1B valuation Reuters

INDUSTRY NEWS

U.S. Consumer Spending Declined in February After Hot Start to Year

Retail sales fell 0.4% last month as Americans spent less at auto dealers and restaurants. WSJ

Will low prices win Easter? Target and Walmart think so

Target and Walmart are heading toward Easter with offers of holiday savings for cash-strapped shoppers. Retail Wire

Vegas Formula One VIP Packages Rev Past the Million-Dollar Mark

Over 300,000 fans are expected to attend the race, according to organizers, and the 3.8-mile racetrack swerves between the casinos and the hotels of the Las Vegas strip to accommodate several VIP viewing areas. Sportico

GPT-4 has arrived. It will blow ChatGPT out of the water.

The long-awaited tool, which can describe images in words, marks a huge leap forward for AI power — and another major shift for ethical norms. WaPo

Cheez-It and Pringles company gets a new name

The unit that houses its snacks, including Cheez-It and Pringles, plus its international cereal brands and plant-based foods will be called “Kellanova.” And its North American cereal business, which includes Frosted Flakes and Froot Loops, will be called “WK Kellogg Co." CNN

Eggs are so expensive that Dollar Tree has just given up stocking them

Dollar Tree said Tuesday that it will stop selling eggs after prices for the grocery staple rose as much as 60% in 2022. Business Insider

America’s biggest companies say retail crime is an epidemic, but just how big of a problem is it?

Companies such as Home Depot, Lowe’s, Walmart, Best Buy, Walgreens and CVS have been sounding the alarm about organized bands of thieves who ransack their stores and resell the goods on online marketplaces. CNBC

Zara is opening or revamping nearly 30 stores in the US by 2025 

The Spanish fast-fashion retailer is planning 30 new store "projects" in the US over the next two years, including new stores, store relocations, and renovations to existing locations. Business Insider

Maria Tash Launches AI-powered Virtual Try-on Tool

Jeweler Maria Tash has introduced virtual try-on software that helps shoppers map out piercings and ear schemes. WWD

Retailers see a tough year ahead, so they’re rolling out the recession playbook

The companies’ strategies include stocking up on high-frequency items like food, becoming more strategic about discounts and winning more of loyal customers’ wallets. CNBC

Reebok to develop exclusive products in expanded partnership with Macy’s

As part of the expanded partnership between the two companies, Reebok will create products and capsule collections exclusively for Macy’s. Retail Dive

The Golden Era of Celebrity Beauty Brands Is Ending

The bubble is bursting as shoppers increasingly favor quality over star power. Bloomberg

Grove Collaborative Launches Health and Wellness Hub

Grove Collaborative has introduced Grove Wellness, a product hub featuring a personalization engine designed to sharpen recommendations around consumers’ evolving health and wellness needs. Retail Touchpoints

TikTok and MLS enter multiyear partnership to deepen the league’s presence on the app

TikTok notes that soccer content is flourishing on the platform, as views for #soccer have increased over 500% in the past two years, growing from 40 billion in February 2021 to over 267 billion today. TechCrunch

Brooklinen Has Entered the Fancy Laundry Product Arena

Known for its premium sheets, the brand just launched a line of plant-based products with which to wash them. Fashionista

Ironic totes help deliver L.L. Bean’s second-best revenue year

L.L. Bean on Friday reported that 2022 net revenue fell 1% year over year to $1.8 billion, the second-strongest result in its 110-year history. Retail Dive

Buoyant Zara owner Inditex invests in tech and U.S. expansion

"Our focus is on the long-term market, and we are very confident in our ability to grow in the future." Reuters

Stores-In-Stores Multiply Retail’s Appeal In The Fight For Wallet Share

Smaller brands are setting up shop within these emporiums, providing a fresh offering for shoppers—and a new way for larger retailers to keep pace with rapidly evolving consumer trends. Forbes

How Trader Joe’s Beat Out Conventional Supermarkets by Offering Less

Trader Joe’s offers customers remarkably fewer options than other major supermarkets and it’s consistently ranked highest for customer satisfaction. WSJ

Mattel CFO sees movie tie-in boosting Barbie sales

The toymaker had a tough 2022, but CFO Anthony DiSilvestro expects the outlook to improve and says parents will always prioritize spending on their children. RetailDive

Amazon deepens tech-sector cuts by slashing another 9,000 jobs

Amazon.com Inc on Monday said it would axe another 9,000 roles to make its operation lean and manage economic uncertainty. Reuters

New Starbucks CEO Laxman Narasimhan takes over nearly two weeks earlier than expected

After being named incoming CEO in September, Narasimhan has spent months learning about Starbucks’ business, including training as a barista.  CNBC

Federer-Backed Shoemaker Expects Fast Growth as Tennis Booms

Swiss sneaker maker On Holding predicted that its tennis and running footwear will drive sales growth of almost 40% this year. Bloomberg

Foot Locker’s New CEO Plots Route to $9.5 Billion in Sales

Underperforming stores to close in move away from malls. Bloomberg

Telfar Introduces New Live Pricing Model

Rather than set prices, Telfar will let consumer demand determine cost: after the collection drops, items’ prices will start rising from wholesale price up to retail price. BoF

Fanatics will become the NHL’s official uniform supplier, replacing Adidas

Fanatics will replace Adidas as the official uniform supplier for the National Hockey League starting with the 2024-2025 season. CNBC

Nestle Gets a Third of Sales From Foods Considered Unhealthy

The finding shows that Nestle has room to improve as it aims to be the top health and wellness food company. Bloomberg

Why Clinique’s Next Move In The Metaverse Is A Winning Formula For Web3 Retail

Clinique is launching digital laboratory Clinique Lab, an all-immersive, multi-sensory gamified experience that combines retail with edutainment. Forbes

COMINGS & GOINGS

• Grubhub's Second CEO in Two Years Steps Down Entrepreneur
• Maria Dempsey Named New CEO of Love Wellness WWD
• Glossier revamps executive team with new chief commercial officer Retail Dive
• Burberry Finds New CFO at Luxury Carmaker McLaren Group Bloomberg
• Los Angeles Luxury Brand Amiri Appoints New CEO Who Comes From Burberry WWD
• Home Depot names new head of merchandising Retail Dive
• Patrick Ta names beauty vet as CEO Retail Dive
• Twitch CEO Emmett Shear to step down, president Clancy to take over Reuters
• REI Names Chief Merchant, Chief People Officer, Co-Op Brands VP SGB Media
• Jeremy Scott Is Exiting Moschino WWD

GOOD READS

• How Brands and Retailers Are Shaping the Resale Experience BoF
  
• I Asked ChatGPT How It Will Impact Retailing. Here’s The Reply. Forbes
• Why the U.S. and Other Countries Want to Ban or Restrict TikTok Time

INSPIRATION