Weekly Consumer News Update // June 13, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Heinz is releasing 6 new sauce flavors, Rent the Runway and Ikea adopt AI, and more. 

WORDS FOR THE WEEK

M&A and INVESTMENTS

• Permira Weighs Sale of $2.7 Billion Shoemaker Golden Goose Bloomberg
• GetHarley Closes $52 Million Funding Round Led by Index Ventures WWD
• Ten Thousand Raises $21.5 Million in Funding, Inks Sponsorship Deal With Life Time WWD
• DTC baby brand Lalo raises $10.1M Series A Modern Retail
• Curio Brands Acquires Otherland WWD
• Party planning platform Punchbowl’s owner is acquiring Timehop TechCrunch

INDUSTRY NEWS

CPG

Wellness brands are harnessing the antioxidant and prebiotic benefits of the sweet treat for supplements.

Whether it’s functional mushrooms, skin-boosting bites or probiotic yogurt, wellness brands are looking to chocolate to create indulgent but good-for-you products. WWD

The Consumer Spending Mystery Is Really No Mystery

Economic inequality and imbalances explain much of the recent strength in household consumption. Bloomberg

Campbell’s U.S. Soup Sales Cool Off

Increasingly price-sensitive consumers, heightened competition and tough prior-year comparisons impact company’s sales. WSJ

U.S. Legal Cannabis Market Sales To Soar To $45 Billion In 2027, Says Top Researcher

In addition to long-term projections, BDSA estimates that the legal U.S. market is expected to grow 12% by the end of 2023, reaching $29.6 billion. The total global legal cannabis industry is predicted to reach $36.7 billion in 2023, with 80% of sales coming from the U.S. markets. Forbes

Heinz releasing 6 new sauce flavors, including Hatch Chili Ranch and Yuzu Wasabi

In an effort to give consumers more variety, the condiment maker is releasing "Sauce Drops," six brand new sauce flavors. USA Today

Revenge Spending Helped Push Prices Higher. The Trend Is Turning.

Spending on hotels, airline tickets and dinners surged after the pandemic. This summer could mark a shift back to normal. NYT

RETAIL

After years of focusing on DTC, Nike is quietly bringing more wholesale partners back into the fold

Nike is reversing course after cutting wholesale ties with several stores and sellers years ago. Modern Retail

How Lululemon took on Nike to become a Fortune 500 company and $8 billion athleisure empire

Lululemon’s test-and-learn approach, and its resistance to the “analysis paralysis” that has slowed many other retailers’ adaption to new consumer tastes, have helped the brand boom. Fortune

How Hasbro Plans to Revive Its Toy Business

The maker of Monopoly, Play-Doh and Transformers action figures says part of the strategy is to win a bigger share of the global preschool market. WSJ

The Global Brands Coming to a Shopping Mall Near You

Some retailers now view U.S. expansion as the surest way to boost revenue amid a shaky global economy. WSJ

Rent the Runway subscribers will soon be able to search items using terms like ‘Miami vibes’ or ‘clam bake in Nantucket’

The fashion subscription service is testing an AI search function to bolster its business as fashion increasingly adopts AI. Retail Brew

Revolve’s Latest Pop-Up Could Pave the Way For Its First Permanent Store

The online marketplace favoured by models and influencers has been a brick-and-mortar retail holdout, but its newest storefront could change that. BoF

Retailers are gamifying shopping with virtual storefronts to boost engagement, loyalty

J. Crew is launching a virtual beach house in celebration of its 40th anniversary. Virtual storefronts are on the rise, and experiential e-commerce platform Obsess has built platforms for a slew of other retailers and brands, including American Girl, Ralph Lauren, Corona, Crocs, Coach, Dior and Mattel. CNBC

IKEA Bets on Remote Interior Design as AI Changes Sales Strategy

IKEA is training call centre workers to become interior design advisers as the Swedish furniture giant aims to offer more home improvement services and hand run-of-the-mill customer queries to an artificial intelligence bot called Billie. US News

TECH

TikTok Eyes $20 Billion Commerce Business Despite US Setback

TikTok Shop is banking on rapid growth in Southeast Asia and wants to take on Amazon in the US eventually. Bloomberg

Netflix Subscriptions Jump as U.S. Password-Sharing Crackdown Begins

Shortly after change, company had highest rate of sign-ups since Antenna began tracking data in 2019. WSJ

HOSPITALITY

Grubhub to Lay Off About 15% of Staff

Food-delivery company to cut around 400 jobs; CEO Howard Migdal says move is needed to stay competitive. WSJ

COMINGS & GOINGS

• Chris Licht Out at as CEO of CNN CNBC
• GameStop CEO fired, Ryan Cohen appointed executive chairman Retail Dive
• Wayfair’s chief commercial officer to exit Retail Dive
• Timberland Hires Nike Veteran Archie McEachern as Its VP and Chief Merchandising Officer WWD
• Vegamour founder steps down as CEO Retail Dive
• Michelle Ochs joins Hervé Léger as Creative Director Vogue Business
• Ring Concierge Angles for New Growth With First-ever CMO Hire WWD
• Washington Post publisher leaving after 9 years Axios
• Carhartt appoints new VP, global merchandising Fashion Network