Weekly Consumer News Update // March 28, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Karlie Kloss launches Fashion Klossette on Roblox, Petco & Chewy focus on pet healthcare, and more. 

 M&A and INVESTMENTS

• True Botanicals lands Series B investment from NextWorld Evergreen Cosmetics Business
• The Family Fund puts its investment spin on consumer brands with new $25M fund TechCrunch
• Scotch & Soda Acquired by Bluestar Alliance WWD
• Tom Brady acquired part ownership of the WNBA's Las Vegas Aces Axios
• Valley National, First Citizens Said to Bid on Silicon Valley Bloomberg
• AI chatbot Character.AI, with no revenue, raises $150 mln led by Andreessen Horowitz Reuters
• Apple acquired WaveOne, a startup using AI to compress videos TechCrunch

INDUSTRY NEWS

Banking Turmoil Tests the American Consumer

Shoppers already facing rising interest rates, high inflation might pull back. WSJ

White Claw unveils branded vodka as it enters the spirits category

The launch comes as consumers increasingly turn to ready-to-drink, spirits-based drinks as hard seltzer finds its ceiling. CNBC

Allbirds creates zero-carbon shoe

The new shoe uses carbon-negative materials such as merino wool, sugarcane-based foam and eyelets made of bioplastic that use a polymer formed from converted methane. Retail Dive

Grocery, Home Furnishings Continue To Drive Ecommerce Growth

The convenience in shopping online for groceries and home furnishings that consumers discovered during the pandemic has caused them to continue to shop online in those categories. Forbes

Why are DTC brands rushing to wholesale?

Emerging brands are quickly moving into retailers’ stores, but selling direct-to-consumer still offers data and consumer feedback that can’t be found on shelves. Retail Dive

Levi’s Will Begin Testing AI-Generated Models

The denim giant says it will experiment with supplementing its human models with AI-generated models later this year. BoF

Millennials plan to stick with online shopping even as stores rebound, new survey finds

It’s a noteworthy update for analysts searching for a winner in the pandemic-era tug of war between brick-and-mortar stores and online shopping. CNBC

Restaurants like Momofuku are nabbing more shelf space in grocery stores

After establishing DTC channels to sell packaged products — like condiments, seasoning and snacks — restaurants are now eyeing grocery stores as a stable revenue driver. Modern Retail

Fitness chains add financial muscle as more Americans hit the gym

Tighter budgets may not be a constraint for Americans looking to get back into shape, keeping gym operators financially fit, even as inflation pinches other consumer-focused sectors. Reuters

Apple to Spend $1 Billion a Year on Films to Break Into Cinemas

Apple is looking to make a name for itself in Hollywood, with plans to spend $1 billion a year on movies that will be released in cinemas. Bloomberg

Karlie Kloss Launches Fashion Klossette, an Immersive Roblox World That Lets Users Experience the Fashion Industry

After launching pop-ups on Roblox last year, she will introduce Fashion Klossette, an immersive Roblox world that allows users to experience the fashion industry. WWD

Magnolia Bakery is entering grocery with Banana Pudding Cookies

The move has been a “long time coming” for the iconic New York City-based bakery. Retail Brew

Kohl’s To Add 250 In-Store Sephora Shops This Year

Kohl’s reported that 250 of its stores would add 2,500-square-foot Sephora in-store shops in 2023. SGB Media

DoorDash Adds Lush Cosmetics, Victoria’s Secret as Delivery Partners

DoorDash is continuing to expand its operations through new partnerships and an enhanced customer experience. Retail Touchpoints

Snap rolls out augmented reality tools for fashion retailers in latest commerce push

After years of acquiring AR and AI technologies, Snap is packaging together some of its biggest tools for customers to integrate into their own websites. Modern Retail

Secondhand resale is getting cutthroat as platforms like Depop and Poshmark boom

The consumer culture on indie reselling platforms has shifted as more sellers compete to capture demand and more inflation-weary customers hunt for deals. CNBC 

75% of marketers expect to spend more on TikTok even as ban looms

Despite security concerns and the possibility of a ban by the U.S. government, three in four marketers expect to increase spending on TikTok in the next 12 months. Retail Dive

Uniqlo to Open 20 Stores Annually as It Moves Toward Goal of 200 Stores in North America

The Japanese retailer currently has 46 stores in the U.S. and 16 in Canada. WWD

Adidas and Beyoncé to Part Ways After Ivy Park Sales Struggles

Music star’s clothing brand had weaker-than-expected sales since deal with German sportswear giant. WSJ

The Hair Tools Space Heats Up

With new players like Shark and Dyson making blow dryers and stylers, the hair tools segment is in the midst of an innovation push the likes of which it hasn’t seen in decades. BoF

Pet health care is the future for Petco, Chewy

Both companies have seen hard goods like toys and leashes trending down but have been building out their pet health care models. CNBC

People Bought Crocs During the Pandemic. They Haven’t Stopped.

While other brands that thrived with customers in quarantine have dropped off, sales of the easily slipped-on clogs are up nearly 200 percent since 2019. NYT

Uber Eats to Take Down Thousands of Virtual Brands to Declutter the App

Company plans to stop allowing restaurants to list multiple brands with the same menu. WSJ

Beauty’s new opportunity: Cross-industry collaborations

Elf Beauty is partnering with American Eagle, allowing it to tap into the fashion brand’s Gen Z audience. It marks a growing trend in beauty to explore cross-industry collaborations. Vogue Business

How age-old retailers like Foot Locker are boosting sales for new brands like Hoka and On

Despite a renewed partnership with Nike, Foot Locker will continue to diversify the brands it sells under new CEO Mary Dillon. Business Insider

Why over-the-counter medicine is poised to be the next hot CPG category

The interest in the category has especially been boosted by a similar wave in the vitamins and supplements segment, which led to some high profile acquisitions in the past few years. Modern Retail

To grow its DTC business, Nike is opening stores for Jordan Brand

As part of its plan to grow sales from DTC channels, Nike is increasingly building stores for some of its most notable brands. Modern Retail

Alibaba to split into 6 units and explore IPOs

The Chinese ecommerce giant said in a statement that the move is “designed to unlock shareholder value and foster market competitiveness.” CNBC

Disney Shuts Down Metaverse Unit as Part of First Wave of Layoffs

The shutdown of Disney’s metaverse group came Monday with the first wave of the company’s move to slash 7,000 jobs under interim CEO Bob Iger. Variety

COMINGS & GOINGS

• Denise Magid Becomes Bloomingdale’s First Chief Merchant WWD
• Elina Kousourna Named CEO of Maje WWD
• Meta Rehires Partnerships Executive After Vowing to Shrink Management The Information
• Snap exec and head of growth Jacob Andreou heads to Greylock TechCrunch
• Lyft Co-Founders to Resign; ex-Amazon David Risher Is Named CEO NYT
• Torrid taps Belk veteran as chief commerical officer Retail Dive

GOOD READS

• How Brands and Retailers Cool People Accidentally Saved America's Feet The Atlantic
• What Beauty Can Learn From Booze BoF
• Why Chinese Apps Are the Favorites of Young Americans WSJ

INSPIRATION