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Here's our weekly roundup of recent consumer and retail news. This week, Bloomingdales and Macy's debut scaled-down store formats, Taylor Swift boosts NFL ratings, and more.
WORDS FOR THE WEEK
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M&A and INVESTMENTS
- Sycamore Buying Chico’s for $1 Billion WWD
- Stokke Owner NXC Weighs Options for $1 Billion Baby Brand Bloomberg
- Wells Fargo to Buy NYC’s Neiman Marcus Space for $550 Million Bloomberg
- Blue Apron to be acquired by Wonder Group for $103 million CNBC
- JM Smucker to sell Sahale Snacks to Brownie Brittle owner for $34M Food Dive
- Style Capital to Buy Majority Stake in French Brand Soeur WWD
- Shopify invests in wholesale platform Faire Reuters
- L’Oréal Exits Investment in Sanoflore WWD
INDUSTRY NEWS
CPG
Holiday spending to increase 3.7%: Mastercard
Consumer outlays for electronics and at restaurants are expected to boost expenditures this year, according to the card network. Retail Dive
Drugstore Downsizing: CVS, Walgreens And Rite Aid To Close Nearly 1,500 Stores
All three of the nation's leading drugstore chains have different reasons for closing stores, but the downsizing prescription is the same. Forbes
Big Food vs. Big Pharma: Companies bet on snacking just as weight loss drugs boom
Food companies are making big bets on snacking, but the rise of Wegovy, Ozempic and similar drugs could pose a threat to future sales growth. CNBC
RETAIL
DoorDash, Uber, and Instacart are deactivating gig workers without any explanation why
Gig workers for Instacart, DoorDash, Grubhub, Uber Eats apps are getting deactivated with little explanation. Business Insider
Peloton shares soar on digital content, apparel partnership with Lululemon
In the five-year strategic partnership, Peloton will develop digital fitness content for Lululemon, while Lululemon will become Peloton’s primary athletic apparel provider. CNBC
How Shein Wound Up in the Luxury Fashion Business
The company’s recent introduction of a marketplace model has led to a flood of listings for new, high-end goods by third-party sellers. Some brands aren’t happy, but there may not be much they can do. BoF
StockX is testing out physical retail with its first ‘shoppable experience’ in New York City
Resale marketplace StockX is testing out physical retail with its first shoppable experience in New York City. It's a significant change for the brand, which has traditionally focused on e-commerce. Modern Retail
Costco shoppers are continuing to cut back on big-ticket items, even as inflation falls, as Americans put off buying jewelry, laptops, and furniture
Customers aren't necessarily as receptive to price discounts as they used to be, Costco's CFO told investors. Business Insider
Birkenstock could be worth $10 billion
The iconic footwear brand plans to sell shares for between $44 and $49 apiece when it debuts on the New York Stock Exchange, aiming to raise as much as $1.6 billion. CNN
Showfields has shuttered its original flagship store as part of restructuring plan
Showfields, which dubs itself “the most interesting store in the world,” has closed its original flagship location in New York City. Modern Retail
Some fashion retailers may be hard pressed to lower prices to bring back consumers
As inflation wreaks havoc on consumer spending, middle-tiered retailers are likely to feel the heat as they have resorted to hiking product prices over the past year. Retail Brew
Bloomie’s Gets Set for Its Seattle Debut
The scaled-down version of Bloomingdale's focuses on contemporary and casual offerings and convenience. WWD
Americans Are Still Spending Like There’s No Tomorrow
Concerts, trips and designer handbags are taking priority over saving for a home or rainy day. WSJ
SoftBank-Backed Lululemon Rival Vuori Said to Plan IPO Next Year
The apparel company would seek in an IPO to top its $4 billion valuation in a 2021 funding round led by SoftBank Group Corp.’s Vision Fund 2. Bloomberg
Toys R Us is planning a brick-and-mortar comeback in the U.S
Toys R Us is plotting a bold comeback in the U.S., as it plans to expand its brick-and-mortar presence with as many as 24 new flagship stores and a separate rollout at airports and on cruise ships starting this holiday season. CNBC
What the return of student loan payments means for retailers
As of last June, Gen Xers hold the biggest share of the $1.7 billion in federal student loan debt at $525.3 billion. Retail Brew
Macy’s Ready to Run With Small-format Strategy
The retailer is targeting up to 30 openings of the scaled-down, specialized Macy's format in 2024 and 2025. WWD
Dollar General's takeover of America is nearly complete, proving messy stores can win with discounts
Dollar General has stores in all 48 contiguous US states after it opened its first location in Montana. Business Insider
MEDIA & TECH
Artificial Intelligence Is Already Taking Over Grocery Stores
The grocery industry may be an ideal place to build artificial intelligence because the low profit margins make every additional advantage highly impactful. Forbes
Zuckerberg unveils Quest 3 as Meta tries to stay ahead in the mixed reality headset game
Unveiled by CEO Mark Zuckerberg at the company’s virtual Meta Connect event Wednesday, the headset starts at $500 and is a complete redesign of earlier models. CNN
Fortnite maker Epic Games announces layoffs
Epic Games is laying off 16% percent of its employees, impacting about 870 people, the Fortnite maker announced on Thursday. TechCrunch
TV and Movie Writers to Begin Returning to Work on Wednesday
The leadership of the Writers Guild of America voted to end a 148-day strike. Members will start voting on the deal’s ratification this week. NYT
Why Netflix is Selling Pizza and Wedding Gowns Based on Your Favorite Shows
The streaming service is creating experiences, merchandise to deepen fan engagement. WSJ
LinkedIn goes big on new AI tools for learning, recruitment, marketing and sales, powered by OpenAI
The social platform — which pulled in $15 billion in revenues last year— has been slowly putting in a number of AI-based features across its product portfolio. TechCrunch
Taylor Swift Boosts NFL Ratings, Showing Star’s Halo Effect Has Staying Power
Sunday night NFL contest drew 27 million viewers, making it the second-most-watched matchup this season. WSJ
Snap hedged its bets on AR. Brands weren’t ready
The company has closed its first Saas offering, called Ares, which aimed to provide support to businesses who wanted to use its augmented reality tools in their own apps and websites. Vogue Business
Paris Hilton Inks Content and Commerce Deal With Elon Musk’s X/Twitter, Will Host Videos Featuring Live Shopping
Under the deal between X and Hilton and her 11:11 Media company, she and X will work together to create four original video content programs per year that include live-shopping features. Hilton will also serve as a launch partner for new X consumer products, services and feature releases, according to the companies. Variety
RESTAURANTS & HOSPITALITY
Fast food drive-thrus are moving faster than ever, survey finds
Some of the leading fast food companies, such as Wendy’s, Chick-fil-A and Carl’s Jr. saw major reductions in their average total time in the drive-thru. CNN
Is the party over? New data suggests revenge travel may be ending soon
The travel boom after years of pandemic restrictions, or "revenge travel," may be over. CNBC
COMINGS & GOINGS
- Panos Panay is leaving Microsoft for Amazon The Verge
- Peloton co-founder and Chief Product Officer Tom Cortese is leaving the company CNBC
- UrbanStems hires new chief executive officer Retail Dive
- Sportsman’s Warehouse Names New CEO SGB Media
- Inspirato Taps Eric Grosse as CEO MarketWatch
- GameStop names Ryan Cohen as CEO CNBC
- Adidas Appoints New Digital Chief SGB Media
- CFO of The RealReal to resign come 2024 Luxury Daily
- Fabletics Appoints VP Wholesale for Europe SGB Media
- Pitney Bowes president and CEO steps down Yahoo
GOOD READS
