---
title: Traub Weekly Consumer News // March 28, 2023
description: Here's our weekly roundup of recent consumer and retail news. This week, Karlie Kloss launches Roblox world, Petco & Chewy focus on pet healthcare, and more.
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---
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# Weekly Consumer News Update // March 28, 2023
By [TRAUB](https://blog.traub.io/blog/author/traub) On March 28, 2023
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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](https://www.cosmeticsbusiness.com/news/article_page/True_Botanicals_lands_Series_B_investment_from_NextWorld_Evergreen/207729)
- The Family Fund puts its investment spin on consumer brands with new $25M fund [TechCrunch](https://techcrunch.com/2023/03/22/f3c-venture-capital-consumer-brands-25m-fund/)
- Scotch & Soda Acquired by Bluestar Alliance [WWD](https://wwd.com/business-news/retail/bluestar-alliance-buys-scotch-amp-soda-1235595216/)
- Tom Brady acquired part ownership of the WNBA's Las Vegas Aces [Axios](https://www.axios.com/2023/03/24/tom-brady-wnba-las-vegas-aces-part-owner)
- Valley National, First Citizens Said to Bid on Silicon Valley [Bloomberg](https://www.bloomberg.com/news/articles/2023-03-25/valley-national-first-citizens-said-to-bid-on-silicon-valley?leadSource=uverify%20wall#xj4y7vzkg)
- AI chatbot Character.AI, with no revenue, raises $150 mln led by Andreessen Horowitz [Reuters](https://www.reuters.com/technology/ai-chatbot-characterai-with-no-revenue-raises-150-mln-led-by-andreessen-horowitz-2023-03-23/)
- Apple acquired WaveOne, a startup using AI to compress videos [TechCrunch](https://techcrunch.com/2023/03/27/apple-acquired-a-startup-using-ai-to-compress-videos/)
## **INDUSTRY NEWS**
Banking Turmoil Tests the American Consumer
Shoppers already facing rising interest rates, high inflation might pull back. [WSJ](https://www.wsj.com/articles/banking-turmoil-tests-the-american-consumer-377d4c1b?mod=e2li)
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](https://www.cnbc.com/2023/03/21/white-claw-branded-vodka.html)
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](https://www.retaildive.com/news/allbirds-creates-zero-carbon-shoe-moonshot/645528/)
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](https://www.forbes.com/sites/joanverdon/2023/03/22/grocery-home-furnishings-continue-to-drive-ecommerce-growth/?sh=530b88c26ce7)
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](https://www.retaildive.com/news/direct-to-consumer-retail-brands-selling-wholesale/645383/)
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](https://www.businessoffashion.com/articles/technology/levis-will-begin-testing-ai-generated-models/?utm_source=newsletter_dailydigest&utm_medium=email&utm_campaign=Daily_Digest_230323&utm_content=intro)
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](https://www.cnbc.com/2023/03/24/millennials-online-shopping-over-stores.html)
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](https://www.modernretail.co/operations/restaurants-like-momofuku-are-nabbing-more-shelf-space-in-grocery-stores/)
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](https://www.reuters.com/world/us/fitness-chains-add-financial-muscle-more-americans-hit-gym-2023-03-22/)
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](https://www.bloomberg.com/news/articles/2023-03-23/apple-to-splash-1-billion-a-year-on-films-to-break-into-cinemas#xj4y7vzkg)
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](https://wwd.com/business-news/media/karlie-kloss-launches-fashion-klossette-on-roblox-that-lets-users-experience-the-fashion-industry-1235588252/)
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](https://www.retailbrew.com/stories/2023/03/22/magnolia-bakery-is-entering-grocery-with-banana-pudding-cookies?cid=30934067.160581&mid=e183fe4871484fb95d54c5b936067b52&utm_campaign=rtb&utm_medium=newsletter&utm_source=morning_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](https://sgbonline.com/kohls-to-add-250-in-store-sephora-shops-this-year/)
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](https://www.retailtouchpoints.com/topics/fulfillment-last-mile/doordash-adds-lush-cosmetics-victorias-secret-as-delivery-partners)
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](https://www.modernretail.co/technology/snap-rolls-out-augmented-reality-tools-for-fashion-retailers-in-latest-commerce-push/)
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](https://www.cnbc.com/2023/03/24/depop-poshmark-secondhand-resale-cutthroat.html)
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](https://www.retaildive.com/news/tiktok-ban-increase-spend-influencer-marketing/645922/)
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](https://wwd.com/business-news/retail/uniqlo-20-stores-annually-200-north-america-canada-daisuke-tsukagoshi-1235592025/)
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](https://www.wsj.com/articles/adidas-and-beyonce-to-part-ways-after-ivy-park-sales-struggles-1467552)
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](https://www.businessoffashion.com/articles/beauty/the-hair-tools-space-heats-up/)
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](https://www.cnbc.com/2023/03/23/chewy-petco-health-care-growth.html)
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](https://www.nytimes.com/2023/03/27/business/crocs-sales.html)
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](https://www.wsj.com/articles/uber-eats-to-take-down-thousands-of-virtual-brands-to-declutter-the-app-2e05ca96?mod=business_lead_pos2)
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](https://www.voguebusiness.com/beauty/beautys-new-opportunity-cross-industry-collaborations-elf-american-eagle)
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](https://www.businessinsider.com/foot-locker-growing-young-sneaker-brands-hoka-on-2023-3)
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](https://www.modernretail.co/operations/why-over-the-counter-medicine-is-poised-to-be-the-next-hot-cpg-category/)
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](https://www.modernretail.co/operations/to-grow-its-dtc-business-nike-is-opening-stores-for-jordan-brand/)
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](https://www.cnbc.com/2023/03/28/alibaba-says-it-will-split-into-6-units-that-can-raise-funds-and-ipo.html)
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](https://variety.com/2023/digital/news/disney-shuts-down-metaverse-unit-layoffs-1235566501/)
COMINGS & GOINGS
- Denise Magid Becomes Bloomingdale’s First Chief Merchant [WWD](https://wwd.com/business-news/retail/bloomingdales-names-denise-magid-its-first-ever-chief-merchant-1235589067/)
- Elina Kousourna Named CEO of Maje [WWD](https://wwd.com/business-news/human-resources/smcp-appoints-elina-kousourna-new-ceo-maje-1235589937/)
- Meta Rehires Partnerships Executive After Vowing to Shrink Management [The Information](https://www.theinformation.com/articles/meta-rehires-partnerships-executive-after-vowing-to-shrink-management?utm_campaign=Automated+Fallback+R&utm_content=89&utm_medium=email&utm_source=cio&utm_term=19)
- Snap exec and head of growth Jacob Andreou heads to Greylock [TechCrunch](https://techcrunch.com/2023/03/27/snap-exec-and-head-of-growth-jacob-andreou-heads-to-greylock/)
- Lyft Co-Founders to Resign; ex-Amazon David Risher Is Named CEO [NYT](https://www.nytimes.com/2023/03/27/technology/lyft-founders-resign.html)
- Torrid taps Belk veteran as chief commerical officer [Retail Dive](http://retaildive.com/news/torrid-belk-veteran-mark-mizicko-chief-commerical-officer/646004/)
**GOOD READS**
- How Brands and Retailers Cool People Accidentally Saved America's Feet [The Atlantic](https://www.theatlantic.com/technology/archive/2023/03/millennials-orthopedic-shoes-sneakers-sandals-clogs/673446/)
- What Beauty Can Learn From Booze [BoF](https://www.businessoffashion.com/articles/beauty/what-beauty-can-learn-from-booze/?utm_source=newsletter_beauty&utm_medium=email&utm_campaign=Beauty_230323&utm_content=intro)
- Why Chinese Apps Are the Favorites of Young Americans [WSJ](https://www.wsj.com/articles/why-chinese-apps-are-the-favorites-of-young-americans-a9a5064a?mod=business_featst_pos3)
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