Weekly Consumer News Roundup // May 7, 2024

This week, Amazon, Starbucks, McDonald's show how jittery US customers are about the economy, Target expands private-label brands to other retailers, and more.

WORDS FOR THE WEEK

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M&A and INVESTMENTS

• Sony, Apollo Make $26 Billion All-Cash Offer for Paramount WSJ
• WeWork strikes $450M deal to exit bankruptcy, without Adam Neumann Axios
• General Mills buys pet food group Edgard & Cooper Just Food
• Frasers Group Buys Back Matches’ IP, but Not the Stock WWD
• Our Home acquires Sonoma Creamery Food Business News
• Simon & Schuster Signs Deal to Buy Dutch Publisher Veen Bosch & Keuning WSJ
• Private equity firms circle Peloton for potential buyout CNBC

CULTURE/GOODREADS

• What’s driving recent private equity challenges in consumer Modern Retail
• Boom Times Are Over for Food Startups, But That’s a Good Thing Bloomberg

INDUSTRY NEWS

CPG

Trendy tequila cocktails bolster Kendall Jenner’s fast-growing 818

The brand founded by the Kardashian family member saw 65% growth in January and attributes its success to the growing popularity for real spirits. Food Dive

Buoyed By Beauty And Wellbeing Sales, Unilever Is Leaning Into Its $2 Billion Wellness Group

Unilever's rapidly growing Health and Wellbeing group of 7 brands, led by Olly, Welly, Nutrafol and Liquid I.V., moves the CPG giant into holistic health and wellness. Forbes

CPG brands see shelf-stable products as the ticket to better margins and bigger sales

Amid inflation, one tactic that more brands are embracing — particularly those who sell products in the refrigerator or freezer aisles — is to launch more shelf-stable products. Modern Retail

Healthy soda brand Poppi denies being M&A target of large beverage companies

The drink, which was introduced in March 2020, is posting triple-digit growth as it benefits from surging consumer interest in better-for-you offerings. Retail Dive

Consumers Fed Up With Food Costs Are Ditching Big Brands

After years of price increases, food companies say more consumers pull back; fast-food chains and snack makers plan new deals and flavors. WSJ

Mondelēz brings $1B Chips Ahoy! brand into gluten-free category

The snacking giant also sells Oreos that avoid the wheat protein as the company appeals to the 25% of Americans who adhere to the diet. Food Dive

Got an Idea for a Toy? Toymakers Want to Hear From You.

Companies like Lego and Mattel have divisions that seek out design concepts directly from collectors and other highly dedicated fan bases. NYT

Daily Harvest launches at Target

The expansion into 250 of the mass merchant’s stores comes as the DTC food brand builds out its wholesale footprint with retailers like Costco and Wegmans. Retail Dive

RETAIL

Ikea is planning to roll out another round of price cuts to ease its customers’ pain, starting May 1.

The reason the home furnishings company is doubling down on its strategy, contrary to the rising prices in every other industry, is simple—to cater to the budget-constrained consumer. Fortune

Amazon, Starbucks, McDonald's show how jittery US customers are about the economy

Executives from each company shed light on the challenges faced not only by U.S. consumers but also by companies trying to cater to them. Business Insider

Williams Sonoma debuts new mobile app

The app gives users access to recipes, the ability to create and manage registries, connect with design experts and shop by room. Retail Dive

Rue21, a mall staple, files for bankruptcy and will close all of its stores

The Pittsburgh-based company filed for bankruptcy for the third time in its existence, signaling the end of nearly 50 years in business for the retailer. CNN

How Online Shopping Is Saving the Bricks-and-Mortar Store

Retailers are increasingly relying on their shops as fulfillment hubs. WSJ

Sam Ash Music Stores to Close After 100 Years in Business

The chain, which started with a single shop in Brooklyn in 1924, said it would close all 42 of its locations by the end of July, citing competition from online retailers. NYT

Target to Expand Sales of Cat & Jack, In-House Goods to Other Retailers

Target Corp. doesn't just want to sell its private-label brands to its shoppers. The company is going after customers at other stores, too. Bloomberg

Macy’s to open its fourth Bloomie’s location in New Jersey this fall

A fourth Bloomie’s location is set to open in New Jersey this fall, part of the parent company Macy’s Inc.’s ongoing strategy to tap into more luxury sales with a new small format strategy. Modern Retail

MEDIA & TECH

LinkedIn launches gaming

The platform is launching three logic puzzles aimed at extending time spent on its networking platform. TechCrunch

Google lays off hundreds of ‘Core’ employees, moves some positions to India and Mexico

Just ahead of its blowout first-quarter earnings report on April 25, Google laid off at least 200 employees from its “Core” teams, in a reorganization that will include moving some roles to India and Mexico. CNBC

Instacart adds restaurant delivery with Uber Eats

Over the next few weeks, Instacart will add a restaurant tab powered by Uber Eats to its app, giving Uber access to potentially millions of new customers. Restaurant Dive

RESTAURANTS & HOSPITALITY

Chain restaurants like Chili's are coming for fast-food giants in the latest bout of the value wars

Fast-food prices are climbing, and chain restaurants like Chili's are coming for fast-food giants with meal deals and new burgers. Business Insider

Shake Shack’s kiosks are now its largest ordering channel

The chain added upselling options to its kiosks and made the channel’s customization experience more similar to online ordering. Restaurant Dive

Equinox launches $40,000 membership to help you live longer

“Optimize by Equinox” is a personalized health program that includes everything from personal training and nutrition plans to sleep coaching and massage therapy. CNBC

Sweetgreen targets dinner customers with steak

The salad chain is following up the successful rollout of protein plates last year with steak, which accounted for nearly one-fifth of dinner orders in a pilot. Restaurant Dive 

Life Time fitness leans into pickleball with Lululemon partnership, new courts and more

Life Time fitness is trying to grow its brand by investing in America’s fastest-growing sport, pickleball, and expanding its offerings. CNBC

COMINGS & GOINGS

• Amazon aggregator Thrasio loses CEO, other top execs CNBC
• Under Armour Taps Yuron White as SVP, Sportswear, Run, Basketball/Curry & Collabs SGB Media
• Peloton CEO Barry McCarthy to Step Down Amid Fresh Layoffs WSJ
• Marni Names Stefano Rosso CEO WWD
• President & CEO Sandra Stangl Is Exiting Banana Republic BoF
• Pizza Hut taps Wendy’s exec as US president Restaurant Dive
• Bloomin’ Brands CEO David Deno to retire Restaurant Dive
• ABC News President Kim Godwin Is Stepping Down WSJ
• Crocs, Inc. Appoints New Executive VP and CFO SGB Media