Weekly Consumer News Roundup // June 4, 2024

This week, mall retailers like Abercrombie and American Eagle are on the comeback trail, retailers double down on private labels as shoppers seek more value, and more.

WORDS FOR THE WEEK

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M&A and INVESTMENTS

• Google-parent Alphabet is considering an all-stock bid for $32.5B marketing software firm HubSpot CNBC
• Japanese whiskey-maker Suntory is in talks to acquire $3.8B Boston Beer WSJ
• The Estée Lauder Cos. Closes $1.7 Billion Acquisition of Deciem Yahoo
• Chobani founder and CEO buys Anchor Brewing Food Dive
• Soho House Rejects Acquisition Offer Bloomberg
• Paramount and Skydance agree to terms of a merger deal CNBC
• Outdoor Voices bought by Consortium Brand Partners Axios
   

CULTURE/ GOOD READS

• The American shopping spree is losing steam CNN

INDUSTRY NEWS

CPG

Dr Pepper Ties Pepsi as America’s No. 2 Soda

After decades as a distant contender, Dr Pepper has climbed the ranks with help from hefty marketing, novel flavors and TikTok videos. WSJ

Food conglomerates are embracing high-protein breakfast items

Protein-rich products are taking up more space in food brand portfolios. This is partly thanks to the rise of weight loss drugs — like Ozempic, Mounjaro and Wegovy — as well as the rise of people being more interested in consuming nutrient-dense meals. Modern Retail

Poppi faces lawsuit from consumer who questions its gut health claims

Popular soda brand Poppi is facing a class-action lawsuit filed by a consumer who says its products don’t improve gut health as much as their marketing suggests. AP

Retailers double down on private labels as shoppers seek more value

Catering to inflation-wary consumers seeking value, many retailers in recent months have been going private—label, that is—with new CPG brand launches, line extensions, and price drops. Retail Brew

RETAIL

After China, Zara Expands Live Shopping Experiment to Europe and US

The fast-fashion brand is investing in new ways to engage shoppers as analysts expect sales growth to slow after a post-pandemic surge. BoF

Walgreens announces price cuts on 1,300 items amid ongoing consumer spending fatigue

The pharmacy chain announced a “summer of savings”, saying the lower prices were in response to consumers ongoing struggles with elevated inflation rates that continue to bedevil the U.S. economy. CNBC

Revenge of the mall retailers: Why sales are up at Abercrombie and American Eagle

The American mall has been under siege for years from digital competitors and big-box stores, prompting many to pursue reinvention with alternative tenants like fitness chains and restaurants. Several retailers are on the comeback trail, as evidenced by their earnings reports this week and last. Axios

Feeling Consumers’ Pain, Retailers Bring Back Discounts

The pandemic shopping boom led many stores and brands to widen profit margins by charging more. Now value is the watchword as shoppers grow choosier. NYT

Sephora Finds Another Path for Expansion – Tanger Outlet and Open-air Shopping Centers

Tanger is diversifying its mix of tenants and has tapped the LVMH-owned prestige beauty brand as part of its strategy. WWD

Walmart launching sale ahead of Amazon Prime Day

It's the latest battle in the paid membership war and starts the summer shopping season early. Axios

E-Commerce To Hit $6.8 Trillion By 2028, Yet Physical Retail Will Prevail

A new study by research firm Forrester forecasts that e-commerce will grow from $4.4 trillion in 2023 to $6.8 trillion by 2028. Yet, it is expected that $21.9 trillion of the $28.7 trillion in worldwide retail sales in 2028 will still happen offline, hinting at the everlasting importance of investing in physical retail. Forbes

MEDIA & TECH

Spotify raises U.S. prices of its premium plans in margin push

On a monthly basis, Spotify has raised prices of its individual plan to $11.99 from $10.99, duo plan to $16.99 from $14.99 and its family plan to $19.99 from $16.99 in the U.S. Reuters

TikTok Pauses E-Commerce Push into Europe to Focus on US

The move, which may catch many merchants in the region by surprise, reflects ByteDance’s objective of entrenching itself in the US as a way to prove its value to domestic merchants and consumers. BoF

RESTAURANTS & HOSPITALITY

Amazon adds Grubhub restaurant delivery to platform

In addition to accessing delivery via Grubhub on Amazon’s platform, Prime subscribers will have access to an ongoing Grubhub+ membership. Restaurant Dive

Why Dave & Buster’s Is Transforming Its Arcades Into Casinos

The $2 billion eatertainment chain’s betting gambit marks a new era of casino-fying everything. Bloomberg

Shake Shack—the Anti-Fast Food Chain—Turns to Drive-Thru as It Expands

Shake Shack built a $4 billion business as an alternative to fast food, with gourmet cachet and lofty prices. But as it expands, it’s embracing a proven fast-food strategy—drive thru—while trying to preserve its premium branding. WSJ

COMINGS & GOINGS

• Benetton Group Names New CEO Yahoo 
• Louis Vuitton Names Megan Grant President and CEO, Americas WWD
• Shinola, Filson Parent Company Names New CEO, Chief Marketing Officer WWD
• Vans Hires Former Lululemon Product Chief as Brand President BoF
• Bark taps former exec for chief DTC officer Retail Dive
• Caroline Brown Named The North Face’s Global Brand President WWD
• Children’s Place CEO Jane Elfers out after 14 years Retail Dive
• Schwan’s Co. elevates Brian Schiegg to CEO Food Business News
• Julie Bourgeois Named Anine Bing’s First Global President WWD