Weekly Consumer News Roundup // May 28, 2024

This week, prestige beauty brands like Kiehl's and Clinique can no longer ignore Amazon, Walmart’s 3D e-commerce platform Realm is the retailer’s latest metaverse bet, and more.

WORDS FOR THE WEEK

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M&A and INVESTMENTS

• T-Mobile to buy US Cellular's wireless operations in $4.4 billion deal Reuters
• Google invests $350 million in Indian e-commerce giant Flipkart TechCrunch
• Pier 1, Stein Mart ownership changes hands Retail Dive
• Newlat inks deal to buy Princes from Mitsubishi Yahoo
   

INDUSTRY NEWS

CPG

E.l.f. Beauty Surpasses $1 Billion in Annual Sales

The mass beauty company surpassed $1 billion in sales in its fiscal 2024 ended March 31 for the first time, up 77 percent from fiscal 2023. WWD

Daily marijuana use surpasses alcohol consumption, new study finds

For the first time, more Americans are using marijuana on a daily or near-daily basis than alcohol. CNBC

Why Prestige Beauty Can No Longer Ignore Amazon

From Kiehl’s to Clinique, a flood of premium lines are giving in to the e-commerce platform, realising it’s too much of a growth driver to pass up. BoF

Jif launches first major flavor innovation in nearly a decade with chocolate and peanut butter spread

J.M. Smucker said the product has 50% less sugar than the leading hazelnut spread with cocoa and has a smooth texture ideal for desserts, snacks and meals. Food Dive

Soda Startup Olipop to Hit $500 Million in Sales This Year

The brand, which started selling in 2018, is growing faster than previously reported as its sodas with less sugar than Coke and Pepsi win more shoppers. Bloomberg

RETAIL

Target, Walmart shoppers seek home goods, grocery delivery online

U.S. online spending is experiencing a rebound, spurred by high gas prices, convenient delivery options and a surge in deals following a brief post-pandemic slump, U.S. retailers say. Reuters

Is Wholesaling The Secret To DTC Brand Growth?

Emerging brands and DTC retailers are getting strategic about how they tackle wholesaling on platforms like Faire. Forbes

Amazon is slashing prices on 4,000 grocery items, joining Target and Walmart

Amazon Fresh is discounting thousands of grocery items in a bid to entice price-conscious shoppers to add a little bit more to their shopping carts. CNN

Off-price retailers like TJX and Ross won’t be slowing down any time soon

The parent companies behind TJ Maxx and Ross Dress for Less are continuing to grow sales as inflation-weary consumers hunt for deals and become more comfortable with shopping at discounters. CNBC

Rothy’s launches on Amazon
The sustainable shoe brand is adding its signature products to the online retailer as it looks to broaden its reach. Retail Dive

Gap, Abercrombie results to show if mall shoppers are splurging

Results from U.S. mall-based apparel chains this week will give a clearer picture of whether Americans are splurging on clothes and accessories heading into summer following mixed results from big retailers Walmart and Target. Reuters

MEDIA & TECH

TikTok plans global layoffs in operations and marketing

The global layoffs are expected to hit teams that handle user support and communications, as well as content and marketing. CNN

Pixar Lays Off 175 Workers as It Returns Its Focus to Films

The animation studio, which has struggled over the past few years, will stop making original shows for Disney+. NYT

Amazon plans to give Alexa an AI overhaul — and a monthly subscription price

The Seattle-based tech and retail giant will launch a more conversational version of Alexa later this year, potentially positioning it to better compete with new generative AI-powered chatbots from companies including Google and OpenAI. CNBC

Walmart’s 3D e-commerce platform Realm is the retailer’s latest metaverse bet
Walmart Realm lets consumers shop digital replicas of products sold at real-life Walmart stores via virtual bazaars designed to look like outlandish, make-believe worlds - the latest sign that Walmart is still betting on the future of the metaverse. Modern Retail

RESTAURANTS & HOSPITALITY

It’s not your imagination. Pickleball courts are everywhere

Over the past seven years, the number of outdoor public park pickleball courts in major cities has skyrocketed 650%, according to a new report by the Trust for Public Land. Courts have become big business as franchises, country clubs and fitness clubs build and convert space. CNBC

Fast-food chains like McDonald’s & Wendy’s are locked in a price war

Major fast-food chains are introducing value-based meals to try and convince customers to come back to restaurants. But low-priced deals may not be enough to keep business afloat. Modern Retail

COMINGS & GOINGS

• Lululemon Chief Product Officer Exits WSJ
• Pierre-Emmanuel Angeloglou Named Fendi CEO WWD
• Gildan CEO and entire board resign ahead of annual meeting Retail Dive
• Wendy’s appoints presidents for US, international Restaurant Dive
• Delta Apparel Chairman and CEO Resigns SGB Media