Traub Weekly News Roundup // October 17, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Nike and E.l.f remain favorite brands with teens, Netflix expands push into video games, and more. 

WORDS FOR THE WEEK

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

M&A and INVESTMENTS

• Microsoft completed its $69B acquisition of Activision Blizzard CNN
• Choice Hotels offers to buy rival Wyndham for $7.8 billion Axios
• Rubik's Cube-owner Spin Master to buy Melissa & Doug for $950 million Reuters
• Apollo to take Wagamama owner Restaurant Group private for $623 mln Reuters
• Next Close to Buying Rival UK Fashion Retailer Fat Face Bloomberg

INDUSTRY NEWS

CPG

Why grocery brands are striking exclusive distribution deals with retailers

More companies are trying to strike close relationships with buyers, leading grocery distribution terms to evolve. Modern Retail

How teens are spending their $$ across beauty, food, and fashion

Nike and E.l.f remain favorite brands with teens, and Sephora took the top beauty shopping spot. Retail Brew

Unilever’s Ben & Jerry’s relaunches plant-based line with oat recipe

Reformulated versions of classics such as Chocolate Chip Cookie Dough will reach store shelves this fall, with remaining flavors switching to the new recipe by next spring. Food Dive

Molson Coors works with Gen Z to craft fizz-free spiked refreshers

Furthering its portfolio innovation strategy, the beverage giant said it developed Happy Thursday, a non-carbonated offering, with insights from a panel of young consumers. Food Dive

Period care brands August, Rael and others form coalition to fight the ‘tampon tax,’ reimburse consumers

Starting Wednesday, consumers paying state sales tax on menstrual products will be able to get those costs on some period care purchases reimbursed. CNBC

Through partnerships with Dunkin’ Donuts and Jersey Mike’s, Celsius expands its food service channel

A little over a year after receiving a whopping $550 million investment from beverage giant Pepsi, the agreement has opened new doors for Celsius to distribute its products with food service being one of those channels. Modern Retail

Toy retail rides pop culture wave to new heights

Leaders at Amazon and Mattel say movies and nostalgia help drive strong consumer interest for iconic brands ahead of the holiday shopping season. Retail Dive

RETAIL

Ross caps off yearly opening plans with 51 new stores this fall

The off-price retailer, which opened 97 locations in fiscal 2023, raised its guidance in August on top of 7.7% sales growth. Retail Dive

‘You can’t fight the traffic patterns’: To enter new neighborhoods, big-box stores are developing smaller formats

In a bid to enter city shopping centers and new neighborhoods, retailers are opening new stores that look quite different from their traditional big-box layout. Modern Retail

Best Buy will soon stop selling DVDs

Netflix mailed its last red-enveloped DVD last month. Now Best Buy will stop selling DVDs and Blu-ray discs at the end of the 2023 holiday season, too. CNN

Rite Aid files for bankruptcy

Rite Aid filed for Chapter 11 bankruptcy protection Sunday, a casualty of a miserable environment for drug stores, exacerbated by its runner-up status to bigger chains and expensive legal battles for allegedly filling unlawful opioid prescriptions. CNN

The New Wegmans In Greenwich Village Is A Supermarket. But It Isn’t.

How new urban groceries adapt to the changes in retail is one of the keys to future success in the grocery industry. Forbes

Goodwill Tries to Figure Out Online Commerce

The nonprofit retailer helps provide jobs and training to those in need. But it needs revenue from online sales to help fund its charitable aims. NYT

Primark Will Expand Rapidly In Southern U.S.

That marks the total opening in the U.S. for 2023 of 8 stores. Forbes

The American Consumer Keeps Splurging

A summer spending spree continued into the fall, September retail-sales report shows. WSJ

MEDIA & TECH

Klarna takes aim at Google and Amazon with AI image recognition tool for shopping

A new feature in the Klarna app will let users point their phone at an item of clothing or electronics gadget and find results for similar products. The tool is trained on data from PriceRunner, a price comparison service Klarna acquired for close to $1 billion. CNBC

YouTube passes Netflix as top video source for teens

Teenagers in the United States say they watch more video on YouTube than Netflix, according to a new survey from investment bank Piper Sandler. CNBC

Amazon Wants You to ‘Buy Again’

New feature tested in app encourages repeat purchases in bid for more revenue from existing customers. WSJ

Perfect Corp. and Walmart to Offer AR-Powered Makeup Virtual Try-On Experience

The retailer will offer beauty technology for over 20 beauty brands via the Walmart iOS app. Happi

Netflix to Open Stores Where Fans Can Play, Shop and Eat in 2025

Its upcoming “Netflix House” sites, all in the U.S., will sell show-related clothing, offer themed food and host events and other experiences. Bloomberg

Google is opening a cafe, store and event space to the general public near its headquarters

The company opened its doors to what it’s calling its “Visitor Experience” center the public Thursday. CNBC

‘Wait, Netflix Has Games?’ Streaming Giant Plans New Videogames Based on Its Hit Shows

Streamer to put greater emphasis on developing games based on its popular programming, including ‘Squid Game,’ ‘Wednesday,’ ‘Black Mirror’

Microsoft-owned LinkedIn lays off nearly 700 employees

The reductions come as the business-oriented social network has seen year-over-year revenue growth slow for eight consecutive quarters. CNBC

RESTAURANTS & HOSPITALITY

Disney Raises Prices at Its Theme Parks

The company is increasing prices to get more from its parks divisions while facing challenges in its shift to streaming. WSJ

Chipotle plans price increases after pausing hikes this year

The burrito chain had paused price hikes for more than a year after three rounds of raising menu prices in 13 months. CNBC

Sweetgreen Hires Kale-Shooting Robots to Speed Up Service

Chipotle, Kura Sushi also dabble with automation as restaurant labor costs remain high. WSJ

COMINGS & GOINGS

• Walgreens Boots Alliance Names Tim Wentworth CEO WWD
• Tupperware’s executive vice chair to exit Retail Dive
• CEO JuE Wong Exits Olaplex WWD
• Tracee Ellis Ross’ Pattern Beauty Taps Christiane Pendarvis as Co-CEO BoF
• Shaq, Allen Iverson Joining Reebok Management Team WWD
• Asics Names Koichiro Kodama as North America President, CEO WWD
• Izumi Sasano Named CEO of Giorgio Armani Corp. WWD
• Rite Aid Names New CEO After Filing for Bankruptcy Barron's

GOOD READS

• Halloween is a $12B business. Why that couldn’t save Party City Retail Dive
• A Gilded Age is Fading for Luxury Brands WSJ
• Why Americans Are Obsessed With These Ugly Sandals WSJ
• How Gap lost its khaki soul Retail Dive