Traub Weekly News Roundup // August 29, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Peloton announces college strategy, Shein strikes deal with Forever21, and more. 

WORDS FOR THE WEEK

M&A and INVESTMENTS

• Roark Capital to buy sandwich chain Subway for up to $9.55B Reuters
• E.l.f. Beauty Snaps up Naturium for $355 Million WWD
• IVEST acquires Care Bears franchise by buying Cloudco for $100m PE Hub
• Rolex Buys Bucherer WWD
  
• Shein partnered with SPARC Group, a JV between Forever 21 owner Authentic Brands and mall REIT Simon Property Group Reuters
• Authentic Reaches Deal for Hunter Boots IP in China SGB Media
• Natura & Co considers sale of The Body Shop as revenue declines CNBC
• Twinkies maker Hostess Brands explores sale amid takeover interest Reuters
• Hudson's Bay Co. Said Eyeing Neiman Marcus Group Yet Again WWD

INDUSTRY NEWS

CPG

Peloton to Forge Deals With Colleges, Starting With University of Michigan

The fitness company is kicking off a new college strategy that includes co-branding of apparel and bikes, discounts on its app for students, and social media campaigns that feature athletes. Bloomberg

Online grocery sales are dipping, but some retailers are faring better than others

Financial pressures are impacting how and where consumers buy groceries online. Retail Brew

Pumpkin spice season is starting earlier this year, despite the ongoing sweltering heat.

The pumpkin spice season is starting earlier than usual, with companies like Starbucks, Dunkin’, Krispy Kreme, and 7-11 already rolling out their autumn-themed products. Business Insider

U.S. Consumers Are Showing Signs of Stress, Retailers Say

Consumer spending remains resilient, but retailers’ latest earnings offered a glimpse into worrying shifts in shopping habits. NYT

UK's Pret takes coffee subscription service to US and France

British sandwich and coffee chain Pret A Manger will launch its monthly coffee subscription service in the US and France this year after the scheme proved a success in its home market. Reuters

Discounts Make a Comeback as Shoppers Get Picky About Spending

U.S. shoppers are getting increasingly hesitant about shelling out for shoes, appliances and other nonessentials. That has more retailers and consumer-goods makers reaching for an old tool to pry open their wallets: promotions. Time

Rite Aid prepares bankruptcy filing, store closures amid opioid lawsuits

The chapter 11 filing would cover Rite Aid’s more than $3.3 billion debt load and pending legal allegations that it oversupplied prescription painkillers, the people said. WSJ

RETAIL

Macy’s to open four more smaller stores, as strip mall experiment shows early signs of success

The new shops will open in the fall in Boston, Las Vegas and San Diego, and another debuted this month in suburban Indiana. The locations will be smaller and situated in strip malls. They will host events and frequently swap out merchandise. CNBC

How Growth in Celebrity Brands Is Affecting the Retail Industry

Celebrity brands are gravitating to New York City for their pop-up stores but shifting to Los Angeles when it comes time to open a permanent location. WWD

Shein Will Sell Forever 21 Clothes With SPARC Group Partnership

As part of the deal, Shein acquired a one-third interest in SPARC, and SPARC became a minority shareholder in Shein. BoF

‘There are superior business models’: Why department stores are losing sales

America’s biggest department stores are still struggling to sway shoppers as consumers cut back on spending. Modern Retail

New Balance Initiates Legal Battle Against Golden Goose Over ‘Dad Shoes’

The lawsuit, filed in the US District Court for the District of Massachusetts, alleges that Golden Goose has infringed on the trade dress of New Balance‘s iconic ‘dad shoes’, specifically the flagship Model 990 line. RetailBoss

Why legacy retailers like Michaels and Nordstrom Rack are undergoing major rebrands

Legacy retailers with massive store fleets and sales channels rooted in the ’80s and ’90s are not only changing their brand logos but also their target audience, store formats and assortment in an attempt to reinvigorate the brand for digitally savvy shoppers. Modern Retail

TECH

Claire’s builds on Roblox investment with new partnership and ‘Shimmerville’ products

Claire’s has inked a new partnership with creative gaming studio Super League, as it expands its Roblox presence. Glossy

TikTok is killing its storefront integration with Shopify and other vendors as it moves to control all aspects of in-app e-commerce

TikTok is sunsetting an e-commerce feature tied to third-party platforms like Shopify as it looks to own the shopping experience from beginning to end. Business Insider

T-Mobile to lay off 5,000 employees

T-Mobile on Thursday announced it plans to lay off 5,000 employees, or around 7% of its total staff, over the next five weeks. CNN

Amazon in talks with Disney about ESPN streaming partnership

Amazon is in early talks with Walt Disney Co about working on the streaming version of ESPN it is developing, while possibly also taking a minority stake in the sports network. Reuters

Walmart launches back-to-school ‘Supercampus’ experience on Roblox

The back-to-school experience allows kids to play games featuring Bic, Crayola and other popular back-to-school brands. Retail Dive

Amazon has Hollywood’s worst shows but its best business model

It aims to make video pay by applying the techniques of e-commerce. The Economist

COMINGS & GOINGS

• Lee, Wrangler parent taps new CFO Retail Dive
  
• IPO Candidate StubHub Hires New CFO The Information
• Leonard Lauder to Step Down From Estée Lauder’s Board WWD
• Gil Efrati Named CEO of SpoiledChild WWD
• Fast Retailing Names New Uniqlo COO BoF
• Designer Brands President to Depart SGB Media

GOOD READS

• Is Gap’s CEO ‘Kenough’ for Investors Seeking a Turnaround? Bloomberg
• Med Spas Are More Popular Than Ever — But Are They Legit? The Zoe Report