Traub Weekly News Roundup // September 19, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Target strikes deal with Kendra Scott, Snap announces new AR experiences for beauty brands, and more. 

WORDS FOR THE WEEK

For more inspiration, visit @dailystoic and @dailyphilosopher on Instagram. 

M&A and INVESTMENTS

• Disney to Invest $60 Billion in Theme Parks, Cruises Over Next Decade WSJ
• Mogul Byron Allen makes $10 billion bid for Disney's ABC, other networks Reuters
• PE firm 777 Partners acquired struggling Premier League club Everton in a deal worth over $685M Reuters
• Feminine-care products maker Honey Pot is exploring a sale, could be valued at over $500M in a potential deal Bloomberg
• Katy Perry Sells Catalog Rights to Litmus Music for $225 Million Variety
• Gal Gadot’s Goodles raises $13 million led by L Catterton Fortune
• Wasserman Buys Brillstein, Merging Sports and Entertainment NYT

INDUSTRY NEWS

CPG

Pet Owners Resort to Cheaper Food as Inflation Weighs on Wallets

With the cost of pet food up nearly 11% from a year ago, according to the July consumer-price index, animal owners are trading down from more expensive gourmet brands or shifting to smaller pack sizes. WSJ

Online Grocery Prices Show First Decline In 27 Months, Adobe Reports

While other online categories have been showing consistent price decreases throughout this year, the grocery category has resisted that trend, with prices reflecting the continued strong demand for online grocery shopping. Forbes

How startups are letting followers dictate brand decisions: ‘They’re an extension of the team’

More startups are passing crucial brand-building decisions on to shoppers, such as product development, distribution and marketing. Modern Retail

Instacart’s Grocery Partnerships Are No Free Lunch

Delivery company’s success depends on how happy its supermarket customers are. WSJ

Kraft Heinz debuts a pouch that makes a microwaved grilled cheese crispy

The technology, part of a broader push at the CPG giant to boost innovation, will first appear in Lunchables before making its way to three other brands. Food Dive

Retail sales rise 0.6% in August largely due to a spike in gas prices

U.S. retail sales in August were up 0.6% compared to July, showing continued consumer spending despite lingering fears of recession. AP News

Why the Twinkie Is Now Worth Billions

The strategy changes and shifts in snacking habits that brought Hostess from bankruptcy (twice) to a $4.6 billion deal. WSJ

Student-Loan Restart Threatens to Pull $100 Billion Out of Consumers’ Pockets

The restart of student-loan payments could divert up to $100 billion from Americans’ pockets over the coming year, leaving consumers squeezed and some of the nation’s largest retailers fearing a spending slowdown. WSJ

Why Sweetgreen’s $15 Salads Still Haven’t Made the Company Profitable

Its individual restaurants make money, but with so much overhead, net profits remain elusive. WSJ

RETAIL

Target strikes deal with jeweler Kendra Scott as it gets ready for holiday season

Shoppers will soon see jewelry designed by Kendra Scott at about 150 Target stores. Most of the items will be under $40. CNBC

Fenty x Puma returns with multi-year partnership

The on-again, off-again collaboration is back with Rihanna as creative director for a new shoe with multiple future launches expected. Retail Dive

Zola launches new baby registry service

While brick-and-mortar stores once dominated the registry landscape, Zola’s move into baby comes at a time when e-commerce services are becoming the norm. Modern Retail

Birkenstock Files for IPO in Further Boost to US Market

Birkenstock has filed for an initial public offering in New York, in another sign of the allure US equity markets hold for European firms seeking a valuation uplift. Bloomberg

Is the Container Store Trying to be the Next Bed Bath & Beyond?

Seeking to support expansion into what it terms “strategic growth categories,” The Container Store has launched its “Uncontained” campaign, focusing on direct-to-consumer (DTC) products in categories including dining, entertaining, home décor and textiles. Retail Touchpoints

Deloitte Forecasts Softer Holiday Sales, Double-Digit E-Commerce Growth

U.S. holiday season sales are estimated to grow 3.5 percent to 4.6 percent between November and January, slowing from the 7.6 percent increase tallied in 2022. SGB Media

Thieves Swarm Luxury Malls, Driving Retail Crime to $100 Billion

Malls across the US have been ‘flash robbed’ by groups of about 20 to 30 suspects stealing retail merchandise. BoF

Pandora Sees ‘Christmas Every Day’ With Lab-Grown Diamond Demand

Pandora has found the sweet spot to seize on rising demand for lab-grown diamonds in the US and other markets, the company’s chief executive officer said, positioning it for long-term growth. BoF

TECH

Salesforce to hire 3,300 people after layoffs earlier this year

The new hires will be split among sales, engineering and those working on Saleforce's data cloud product. Reuters

Amazon Searches for Its Next Big Hit

The tech giant has built three wildly successful businesses. It’s been toiling for years to find a ‘fourth pillar.’ WSJ

Can TikTok’s Addictive Algorithm Get US Shoppers Buying?

The company, which rolled out its Shop feature to all US users this week, is banking on its powerful algorithm to help it succeed where Instagram and others have failed by delivering a constant stream of products along with its targeted content into users’ feeds. BoF

Snap announces new tools designed to get more beauty brands investing in its AR experiences

Snap views AR as having the potential to “revolutionize” the way people interact with the world, with each other and with their favorite brands. Modern Retail 

RESTAURANTS & HOSPITALITY

McDonald's begins phasing out self-serve soda fountains

The fast-food chain said the change was intended to create a consistent experience across different ordering options for customers and employees. Axios

Cracker Barrel Is Stuck in a Generation Gap

Dining chain’s customer demographics are pinching its business as is its bid to lure younger diners. WSJ

Four Seasons is entering the Dominican Republic

Set to open in 2026, the Four Seasons Resort and Residences Dominican Republic at Tropicalia will be located along 60 acres of beachfront on Samana Bay's southern coast. Travel Weekly

COMINGS & GOINGS

• Cheryl Abel-Hodges Joins Tommy John as CEO WWD
  
• BJ’s Names New Chief Information Officer Retail Touchpoints
• Management Shuffle at Nordstrom Inc. WWD
• Former Starbucks CEO Howard Schultz steps down from coffee chain’s board CNBC
• Giambattista Valli CEO Exits WWD
• Former WarnerMedia CEO Jason Kilar joins Roblox’s board TechCrunch
• Chioma Nnadi is British Vogue’s New Head of Editorial Content WWD
• Planet Fitness CEO abruply steps down Yahoo
• Lands’ End Names CFO SGB Media
• Microsoft Chief Product Officer Panos Panay is leaving the company CNBC
• Rebekah McCabe Promoted to GM Fashion at Chanel WWD
• Kecia Steelman Is Promoted to President of Ulta Beauty WWD
• Square CEO Alyssa Henry is stepping down, and Jack Dorsey will take over CNN

GOOD READS

• You Should Worry About the Data Retailers Collect About You The Atlantic
• Could Obesity Drugs Take a Bite Out of the Food Industry? Morgan Stanley
• The biggest DTC success stories are increasingly celebrity-founded brands Modern Retail