Weekly Consumer News Update // May 30, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Peloton rebrands as a fitness company, Bloomingdales, Nordstrom and Macy's pursue smaller format stores, and more. 

 M&A and INVESTMENTS

• ExpressChoice Hotels Seeks to Buy Wyndham Hotels & Resorts WSJ
• Qurate Sells Zulily to Investment Firm Regent MarketWatch
• PE Firm Permira Takes Control of Italian Leather Goods Supplier Gruppo Florence BoF
• Authentic Brands Finalizes Acquisition Of Vince Intellectual Property SGB Media
• Caudalie’s founders invest in emerging cosmetics brand Talm FN

INDUSTRY NEWS

RETAIL

Peloton aims to rebrand as a fitness company for all with focus on app, tiered subscription pricing

The brand relaunch comes a little over a year into Barry McCarthy’s tenure as CEO who has worked to transform Peloton from a hardware-focused company into one that’s just as invested in its app and the high-margin subscription revenue that it brings. CNBC

The Luxury Shopping Oasis Emerging in San Francisco’s Struggling Downtown

Foot traffic is down 27% in the district, but tourists are visiting high-end stores. WSJ

How Lululemon, Starbucks And Google Boost Brand Engagement Though Community Retail

Retailers are rethinking the way they interact with shoppers, with 2023 marking an acceleration of brands experimenting to elevate the brick-and-mortar experience and create valuable interactions. Forbes

Adidas After Yeezy

The partnership with Ye, formerly known as Kanye West, was the stuff of sneakerhead legend—and its demise has the shoe company scrambling to replace nearly half of its profits. Bloomberg

Hill House Home Lands in the UK

Expanding overseas is one of several ways the New York-based brand is looking to keep up momentum, three years after its ‘nap dress’ went viral. WWD

How Retailers Should Start Catering to Hybrid-Working Customers

A lot of us no longer work 9 to 5, or commute into the office. Yet retail businesses seem stuck in a different era. WSJ

Journeys to close 100 stores this year, move away from malls

Amid declining sales, Genesco is shifting the store presence of Journeys away from malls. Retail Dive 

Mini Stores Will Grow For Many Major Retailers

Bloomingdale’s Bloomie’s, the Nordstrom Local, and the Macy’s on-line Marketplace are just three different examples of how top retailers are pursuing growth using new concepts and smaller spaces in an effort to be closer to their customers. Forbes

This summer, brands are ‘meeting customers’ at airports, hotels and the beach

With post-peak-pandemic revenge travel still in swing, fashion brands are seeking out opportunities to support consumers checking off packing lists, tap vacationers’ indulgent shopping habits and even team up with tourism boards, which are upping their own plays for travelers. Glossy

Walgreens laying off 10% of corporate workforce

Walgreens Boots Alliance is cutting its corporate workforce by 10%, affecting 504 workers, as the company focuses on its healthcare business. Retail Dive

Louis Vuitton Launches in the Hamptons

The luxury retailer has just opened its newest store summer hot spot East Hampton and is fully leaning into the beachy lifestyle. WWD

TECH

The revamped MoviePass goes nationwide

After years of rocky history, the company promised to return to the straight and narrow, with a more measured approach to new movie access, following the free-for-all that was MoviePass 1.0. TechCrunch

Meta has started its latest round of layoffs, focusing on business groups

The latest round of cuts targets members of Meta’s business groups and follows a previous round of layoffs in April that affected employees in technical roles. CNBC

YouTube Stories are shutting down June 26 as company focuses on Shorts

The Google-owned video site announced today that YouTube Stories will be shutting down on June 26, 2023, as the company aims to focus on other key areas, like Shorts, Community posts and live videos, in addition to its traditional long-form content. TechCrunch

TikTok Is Testing Its Own AI Chatbot Called Tako

New feature is designed to answer users’ questions, using the kind of AI that powers ChatGPT. WSJ

FOOD & BEV

The QR-Code Menu Is Being Shown the Door

A dining innovation that once looked like the future has worn out its welcome with many restaurateurs, customers and servers who say it takes the joy out of dining. NYT

At Boston Beer, Truly faces troubles, while Twisted Tea triumphs

Truly, a newer, once-trendy brand is notching consistent declines, while Twisted Tea, an over two-decade-old brand, continues to grow. Retail Brew

Restaurants expect strong sales this summer. Consumers aren’t so sure

Warmer weather usually boosts restaurant sales, but diners may hold back for the second straight summer as inflation weighs on consumers’ minds — and wallets. CNBC

McDonald's and Chick-fil-A are tracking the locations of customers who place mobile orders to make sure orders are ready and still hot when customers arrive

McDonald's and Chick-fil-A are both introducing app features that track mobile-order customers' locations so staff can start making their meals when they're close to the restaurant. Business Insider

MARKETING

Target Lands in Culture-War Crosshairs Over Pride Month

Retailer’s halt to its sale of some Gay Pride items fuels criticism it gave in to anti-LGBT pressure. WSJ

Why Bombas is leaning into out-of-home advertising for its new campaign

After a five-year hiatus, direct-to-consumer sock brand Bombas is testing the out-of-home (OOH) marketing waters once again. Modern Retail

Volkswagen Bets an Old SUV Can Help It Win Over Americans

Scout chief Scott Keogh is banking on pure Americana for VW to finally break through in the key market. WSJ

COMINGS & GOINGS

• Panera Brands CEO Niren Chaudhary will be succeeded by Einstein Bros. Bagels CEO Jose Dueñas, effective July 1 CNBC
• Charlotte Blechman to Leave Role as Chief Marketing Officer at Tom Ford WWD
• Nike Shakes Up Senior Leadership as it Seeks to Drive Growth and Integration Retail Touchpoints
• Lazard names Orszag as CEO, Jacobs to become executive chairman Reuters

GOOD READS

• What Generative AI Means For Retail Forbes
• Drowning in Dupes: Shoppers will buy anything — except the real thing. The Cut

INSPIRATION