Weekly Consumer News Update // April 4, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Sephora partners with Zappos, McDonalds prepares for layoffs, and more. 

 M&A and INVESTMENTS

• WWE, UFC Announce $21 Billion Merger Controlled by Endeavor Sportico
• L’Oréal buys Aesop in $2.5 billion deal CNN
• Forma Brands, Bankrupt Morphe Owner, Acquired by Lenders for $690 Million BoF
• FitFlop Secures $30 Million to Fund Long-Term Growth Plans Footwear News
• Cat Food Brand Smalls Raises $19 Million from General Mills, Mars To Expand Its Feline-Focused Mission Forbes
• Authentic Brands Group Inks Deal to Buy Boardriders WWD

INDUSTRY NEWS

Apple introduces Apple Pay Later to allow consumers to pay for purchases over time

Apple Pay users can split purchases into four payments with zero interest and no fees. Apple

The Metaverse Is Quickly Turning Into the Meh-taverse

Disney and Microsoft both closed projects tied to the digital realm this month. WSJ

Elon Musk and top AI researchers call for pause on ‘giant AI experiments’

An open letter says the current race dynamic in AI is dangerous, and calls for the creation of independent regulators to ensure future systems are safe to deploy. The Verge

Home Depot has entered the metaverse

An activation in Roblox aims to meet young consumers where they find inspiration. Retail Brew

Ryan Cohen’s Grand Plans for GameStop Keep Shrinking

Videogame retailer, the original meme stock, hits brakes on e-commerce push to refocus on its 4,400 bricks-and-mortar locations. WSJ

Netflix Restructures Film Group as It Scales Back Movie Output

Netflix Inc. is restructuring its film group to make fewer movies each year and centralize decision-making. Bloomberg

GoodwillFinds, The Online Thrift Store, Expands To Meet Strong Demand For Resale

The ecommerce site is adding new Goodwill partners across the country, and is preparing to double the size of its marketplace. Forbes

Foot Locker plans app, website revamp as it aims for $2.5B in digital sales

The retailer is “trailing the broader market” when it comes to digital penetration, and hopes to grow the channel to 25% of sales by 2026. Retail Dive

Telfar’s Dynamic Pricing Model Offers a New Way to Gauge Luxury Item Demand

Instead of pre-setting retail prices, the price of many items will instead be determined by how quickly they sell out after they drop, with the item remaining cheaper the faster it sells. Retail Wire

Sephora to Sell Its Beauty Brands with Zappos

The beauty retailer plans to launch its assortment of beauty with the Amazon-owned shoe and fashion company this summer. BoF

How Heyday And Ephemeral Are Transforming The Personal Care Retail Service Experience

Branding previously generalized services is a technique ripe for opportunity. Forbes

Ritual expands its retail presence with Target launch

Health and wellness provider Ritual will start selling its products across Target stores nationwide this week - their first retail expansion into brick-and-mortar stores outside of its wholesale presence at Whole Foods. Modern Retail

In the background, Inditex heiress sets tone for Zara revamp

A year into chairing the world's biggest fashion retailer, Marta Ortega is trying to shake up Zara owner Inditex's fast-fashion image and draw in more aspirational shoppers. Reuters

Farm Rio Lands in Italy, Plots European Expansion

A Rinascente takeover is adding to the Brazilian brand’s expansion plans in London and Paris, where it aims to open its first flagship store by the end of the year. WWD

Retail Sales Forecast To Grow By 4% Or More This Year; Industry Optimistic Despite Challenges

The National Retail Federation again is betting on the resilience of the American consumer, even in the face of ongoing inflation, and economic uncertainty. Forbes

Frozen food brands are putting DTC on ice to focus on retail expansion

Selling direct-to-consumer has increasingly gone out of fashion among food and beverage startups. Modern Retail

McDonald’s Temporarily Shuts U.S. Offices as Chain Prepares for Layoff Notices

Fast-food company expected to notify workers of their job status virtually. WSJ

Why Cinnamon Toast Crunch and other iconic cereals are taking over the supermarket

General Mills is transforming its legendary cereals, such as Lucky Charms, Trix, and Cookie Crisp, into ingredient brands across its product portfolio. Fast Company

Got Milk? Not This Generation.

Alarmed by dwindling sales to Gen Z, the dairy industry is going all out to get younger Americans on the milk train. NYT

Food at your favorite ballpark is probably going to be more expensive

Those peanuts and Cracker Jacks may soon cost you more at the ballpark, thanks in part to food inflation. CNBC

NFL, RedBird Team Up to Distribute Sunday Ticket Games to Bars, Restaurants

Starting with the 2023-24 season, the new venture, named EverPass Media, will be the commercial distributor for the NFL’s Sunday Ticket, a subscription-only package popular with sports bars that gives access to all Sunday afternoon games for out-of-market teams. WSJ

Under Armour’s new partnership with Steph Curry will last beyond the NBA star’s retirement

Curry will take on a new role as president of Under Armour’s Curry Brand and will work across categories such as basketball, golf, women, youth and sports style to deliver new products. CNBC

COMINGS & GOINGS

• Macy’s Jeff Gennette Sets Retirement Date; Tony Spring Moving Up WWD
• Sergio Ermotti returns as UBS CEO to steer Credit Suisse takeover Reuters
• Moschino GM to Exit Brand WWD
• Walt Disney ousts Marvel chair Isaac Perlmutter Financial Times
• Roberto Cavalli Names Sergio Azzolari New CEO WWD

GOOD READS

• Something Odd Is Happening With Handbags The Atlantic
• The future of DTC brands Retail Brew
• That Style, Again? How Shopping Got So Boring WSJ

INSPIRATION