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MODERN RETAIL
At its earnings report posted Thursday it said that sales grew 89% year-over-year to hit $4 billion — and that it recorded a net profit of $166 million. The apparel company’s new focus now is on avoiding malls and focusing more on growing the Old Navy and Athleta brands. Off-priced retailers are beginning to see new signs of life. WITH DEPOP ACQUISITION, ETSY IS BUILDING A 'HOUSE OF BRANDS' With Depop acquisition, Etsy is building a ‘house of brands’ to fend off marketplace competition. By Anna Hensel. Ivy Liu. Etsy’s strategy for staying ahead of other marketplaces is to acquire more of them. This week, Etsy announced that it acquired Depop, a clothing resale app for $1.6 billion. That announcement comes nearly two years WHY TARGET IS INVESTING BILLIONS TO REMODEL ITS STORES To build on its pandemic momentum, Target is once again focusing on its stores. After having a record year in sales — fourth-quarter revenue hit $28.34 billion, growing 21% year-over-year — the big box retailer is looking at a long term store strategy. Despite beating earnings estimates this week, the retailer didn’t provide guidance on the upcoming year. CPG GIANTS ARE RUSHING TO ACQUIRE NEW TYPES OF HEALTH AND CPG giants are rushing to acquire new types of health and wellness startups. CPG giants are expanding their health and wellness scope by acquiring upstart brands. To do this, food and beverage conglomerates are going beyond buying out vitamin and supplement startups. As a result, brands that pitch themselves as health-focused are alsoreaping
WHY OCEAN SPRAY'S COOPERATIVE BUSINESS MODEL IS GETTING A Lost in Ocean Spray’s accidental moment in the spotlight is this fact: Ocean Spray is one of America’s oldest — and largest — retail coops. Since its founding, a network of farmers have owned and run the business. And even without TikTok in the picture, its business model is uniquely equipped for 2020. A number of businesses are turning to the cooperative model to stay afloat, while a HOW FAST FOOD BECAME THE NEW SUPREME How fast food became the new Supreme. By Cale Guthrie Weissman. Over the last month, millions have people have stood in line at Popeyes restaurants across the country. At one restaurant in Houston, guns were brandished. Chicken sandwiches have been spotted on eBay, being sold for hundreds of thousands of dollars — ditto Facebook’smarketplace.
ALIBABA'S INTERNATIONAL EXPANSION GROWS AMID U.S. TENSIONS Alibaba's long play to become an e-commerce player in the U.S. is well on its way, as reflected by its latest quarterly earnings. Despite a global pandemic and being caught amid political tensions, the Chinese retailer is quickly gaining market share RENT THE RUNWAY ACQUIRES 94% OF ITS CUSTOMERS THROUGH As Rent the Runway has established itself in the rental apparel market, the business is growing on the back of word-of-mouth, user-generated content and other organic marketing means. According to Anushka Salinas, Rent the Runway’s chief revenue officer, 94% of the company’s customers are acquired organically, while the rest come through paid marketing initiatives. COOKIEPOCALYPSE: WHAT THE DEATH OF THE THIRD-PARTY COOKIE Ad tech firm Criteo, for example launched a retail media solution in 2018 that the company has said was “designed to be largely immune against third-party cookie restriction,” by working more closely with retailers to gather first-party data to use for targeting. First-party data means any data that a customer gave a retailer or brand such as email address, or information gleaned from 'HAS TO BE A TOTAL STRUCTURAL CHANGE': JCPENNEY IS RUNNING Since Jill Soltau took over as CEO of JCPenney more than a year ago, there's been no slowdown in announcements touting new executive hires, or store concepts it is piloting, in order to reassure investors that she and her executive team can turn around the beleaguered department store chain. But it's not so much a question of if Soltau can cut losses at JCPenney, but whether she can doMODERN RETAIL
At its earnings report posted Thursday it said that sales grew 89% year-over-year to hit $4 billion — and that it recorded a net profit of $166 million. The apparel company’s new focus now is on avoiding malls and focusing more on growing the Old Navy and Athleta brands. Off-priced retailers are beginning to see new signs of life. WITH DEPOP ACQUISITION, ETSY IS BUILDING A 'HOUSE OF BRANDS' With Depop acquisition, Etsy is building a ‘house of brands’ to fend off marketplace competition. By Anna Hensel. Ivy Liu. Etsy’s strategy for staying ahead of other marketplaces is to acquire more of them. This week, Etsy announced that it acquired Depop, a clothing resale app for $1.6 billion. That announcement comes nearly two years WHY TARGET IS INVESTING BILLIONS TO REMODEL ITS STORES To build on its pandemic momentum, Target is once again focusing on its stores. After having a record year in sales — fourth-quarter revenue hit $28.34 billion, growing 21% year-over-year — the big box retailer is looking at a long term store strategy. Despite beating earnings estimates this week, the retailer didn’t provide guidance on the upcoming year. CPG GIANTS ARE RUSHING TO ACQUIRE NEW TYPES OF HEALTH AND CPG giants are rushing to acquire new types of health and wellness startups. CPG giants are expanding their health and wellness scope by acquiring upstart brands. To do this, food and beverage conglomerates are going beyond buying out vitamin and supplement startups. As a result, brands that pitch themselves as health-focused are alsoreaping
WHY OCEAN SPRAY'S COOPERATIVE BUSINESS MODEL IS GETTING A Lost in Ocean Spray’s accidental moment in the spotlight is this fact: Ocean Spray is one of America’s oldest — and largest — retail coops. Since its founding, a network of farmers have owned and run the business. And even without TikTok in the picture, its business model is uniquely equipped for 2020. A number of businesses are turning to the cooperative model to stay afloat, while a HOW FAST FOOD BECAME THE NEW SUPREME How fast food became the new Supreme. By Cale Guthrie Weissman. Over the last month, millions have people have stood in line at Popeyes restaurants across the country. At one restaurant in Houston, guns were brandished. Chicken sandwiches have been spotted on eBay, being sold for hundreds of thousands of dollars — ditto Facebook’smarketplace.
ALIBABA'S INTERNATIONAL EXPANSION GROWS AMID U.S. TENSIONS Alibaba's long play to become an e-commerce player in the U.S. is well on its way, as reflected by its latest quarterly earnings. Despite a global pandemic and being caught amid political tensions, the Chinese retailer is quickly gaining market share RENT THE RUNWAY ACQUIRES 94% OF ITS CUSTOMERS THROUGH As Rent the Runway has established itself in the rental apparel market, the business is growing on the back of word-of-mouth, user-generated content and other organic marketing means. According to Anushka Salinas, Rent the Runway’s chief revenue officer, 94% of the company’s customers are acquired organically, while the rest come through paid marketing initiatives. COOKIEPOCALYPSE: WHAT THE DEATH OF THE THIRD-PARTY COOKIE Ad tech firm Criteo, for example launched a retail media solution in 2018 that the company has said was “designed to be largely immune against third-party cookie restriction,” by working more closely with retailers to gather first-party data to use for targeting. First-party data means any data that a customer gave a retailer or brand such as email address, or information gleaned from 'HAS TO BE A TOTAL STRUCTURAL CHANGE': JCPENNEY IS RUNNING Since Jill Soltau took over as CEO of JCPenney more than a year ago, there's been no slowdown in announcements touting new executive hires, or store concepts it is piloting, in order to reassure investors that she and her executive team can turn around the beleaguered department store chain. But it's not so much a question of if Soltau can cut losses at JCPenney, but whether she can do SUBSCRIBE TO MODERN RETAIL+ Modern Retail+ helps members stay on the cutting edge of retail’s reinvention. Subscribe now to gain access to unlimited stories, exclusive content, proprietary research and more. What you get with Modern Retail+ membership Members have access to a range of exclusive features, benefits and perks, including: Unlimited Access Full access to unlimited Modern Retail content, RETAILERS ARE INCREASINGLY LAUNCHING THIRD-PARTY MARKETPLACES Traditional retailers and retail brands are increasingly building out third-party marketplaces. In the past month, Canadian department store chain Hudson’s Bay, clothing brand Lands’ End and grocery wholesaler United Natural Foods have all come out with new channels on their websites to allow select third-party brands to sell products directly to their consumers. MODERN RETAIL RESEARCH: BRANDS' MARKETING BUDGETS ARE 1 day ago · Retailers and brands are experiencing a marketing rebound. New data from a June Modern Retail and Glossy survey of brands and retailers found that 90% planned on having their online marketing budgets back to pre-pandemic levels by the end of 2021. ‘A PASSIONATE AND GROWING COMMUNITY': WHY BRANDS ARE People are continuing to embrace the outdoors after a year of being stuck at home, and brands are responding accordingly. In June 2020, year-over-year sales of outdoor equipment like bicycles, paddle sport gear, golf equipment, camping gear and binoculars were up between 63% and 22%, according to the NPD Group.In 2021, outdoor demand continues: major retailers like Kohl’s, Decker’s HERE ARE 3 TRENDS TO WATCH ON AMAZON PRIME DAY 2021 That date is a departure from most previous years, when Prime Day was consistently a mid-July event (with 2020 being an exception). It also caps off a period of rampant activity for Amazon sellers, many of whom were surprised by the earlier-than-usual Prime Day date and had to scramble to prepare their inventory for the sales event. WHY RETAILERS ARE INCREASINGLY BUILDING MOBILE APPS FOR In addition to Walmart, Target has also had an employee-facing mobile app for four years called myCheckout, while other retailers like Lowe’s decided to create employee-facing apps during the coronavirus pandemic to help managers and employees manage new tasks. DTC BRIEFING: PATTERN BRANDS PIVOTS TO ACQUIRING STARTUPS 14 hours ago · Pattern Brands was one of a few startups that thought it could crack the customer acquisition challenges brands faced by taking a holding company approach. Led by the former team behind branding agency Gin Lane, Pattern Brands would launch multiple brands under one company, all catering to an affluent millennial customer. Now, Pattern Brands is taking a different strategy. HOW ICE CREAM BRAND ECLIPSE TACKLED GROCERY STORE EXPANSION When Eclipse Foods launched in November 2019, the plant-based ice cream brand initially decided to focus on partnering with a handful of ice cream shops — such as New York’s OddFellows and San Francisco’s Humphry Slocombe chains — before expanding intogrocery stores.
WITH NEW COMMERCE FEATURES, PINTEREST IS CONTINUING TO 1 day ago · One participant in The Goods Event is shaving brand Billie, which is offering a Pinterest-exclusive shaving set at a discounted price of $17. Olive oil brand Brightland is offering The Golden Duo set, which includes the brand’s best-selling Awake and Alive olive oils, along with a bottle spout, for $80. STARTUPS ARE PITCHING AUTO-REPLENISHMENT SERVICES AS DATA Some tech startups are trying to get brands on board with auto-replenishment by pitching them on its potential for data mining. Right now, the big name in auto-replenishment — a rough umbrella term for services that automate the reordering process of, say, a can of soda or any other frequent purchase — is Amazon’s Dash Replenishment program.Subscribe Login
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THE COMING MONTHS WILL MAKE OR BREAK THE DTC BOOM Over the past two months, digitally native startups have been some of the biggest beneficiaries of store closures. Part of this growth was due to the fact that shoppers had fewer options. Now, shoppers have more options as stores open back up in more states. The coming months will prove just how much of the growth direct-to-consumer brands experienced was a flash in the pan.By Anna Hensel
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Top Stories May 29
Store of the Future
RETAIL SAMPLING LIKELY WON’T BE THE SAME AGAIN Many retailers and companies rely on people testing out their products. But with social distancing in place and many stores closed, that gets much more difficult. For some, it may mean sampling is completely off the table. For others, it means introducing new operations and safeguards that were never thought of before.Member Exclusive
HOW UGLY DRINKS APPROACHES SALES AND GROWTH -- BOTH ONLINE AND OFF Running different channels requires skills and discipline. Brand consistency is key, especially when many channels are involved internationally and across different touch points. Ask “what are the reasons to come to the site and why is the experience special?” said Ugly Drinks CEO Hugh Thomas.E-Commerce
HOW KING ARTHUR'S DIGITAL STRATEGY HAS EVOLVED DURING THE NATIONWIDEFLOUR BOOM
King Arthur's flour has been flying off the shelves -- both in grocery stores and digitally. The company has seen record website traffic and its DTC sales have doubled. To deal with this influx, the centuries-old flour brand has had to quickly adapt. Modern Retail spoke with its vp of marketing about how King Arthur's digital strategy has shifted and what the future of flour sales will looklike.
OTHER NEWS TO KNOW
* While sales at Abercrombie & Fitch fell 34% while stores were closed, the teen apparel retailer said that customers are returning to stores quicker than it anticipated, attributing it to younger shoppers being more willing to venture out. CEO Fran Horowitz told CNBC that the company has recovered about 80% of sales at stores that have reopened.* Nordstrom
tried to put a positive on its 40% net sales drop during its first quarter earnings, as CEO Eric Nordstrom said he was confident the company still had enough ‘liquidity to successfully execute our strategy in 2020.”* Dollar General
also reported earnings today that proved it is poised to be one of the retail winners during the pandemic. The discount retailer reported a net profit of $650 million, during the first quarter and unlike other retailers, said that apparel sales have been up the past few months. 21.7% Increase in same-store sales reported at Dollar General duringits first quarter
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HOW UGLY DRINKS APPROACHES SALES AND GROWTH — BOTH ONLINE AND OFF Running different channels requires skills and discipline. Brand consistency is key, especially when many channels are involvedinternationa...
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HOW BROOKLINEN’S GROWTH MARKETING STRATEGY EVOLVED DURING A GLOBALCRISIS
Latest Stories
Store of the Future
RETAILERS ARE TESTING OUT RESERVATION-LIKE APPOINTMENTS The reservation-to-shop trend is in full swing, and results have been mixed. While grocery chains like DeCicco & Sons have “received an overwhelmingly positive response from customers," other businesses that rely on heavy walk-in traffic, such as bakeries, haven't foundthem very useful.
HOMEBREW'S HUNTER WALK: THE CURRENT CRISIS IS A SECOND PUNCH FOR DTC,NOT THE FIRST
Many current retail start-up founders didn't have the chance to learn from the 2008 financial crisis because "they were potentially in high school," according to seed stage investor Hunter Walk. And even for those entrepreneurs who survived the last global downturn, the big takeaways might not apply to current circumstances. "The answers from those entrepreneurs in 2008 may or not be the right answers for companies in 2020. But the questions they asked themselves might be the things that are evergreen. And so asking some of those questions of yourself as a founder who might be going through this the first time -- I think that's where it gets valuable," Walk said on the Modern Retail Podcast.Sponsored
FOR MARKETERS, FRAUD-FREE CAMPAIGNS PUT AN ACCURATE LENS ONTOAUDIENCE HUMANITY
As bot-driven fraud eats into budgets, marketers are placing a heightened focus on identifying the characteristics that account for authentic audience humanity.Retail Revolution
CROSS-SHOPPING IS ON THE DECLINE AND GROCERS ARE TRYING TO CAPITALIZE Most American shoppers are still “fearful to shop at a grocery store." The lack of delivery slots combined with a rising unemployment rate and shopping-related health risks, is resulting in a decline in cross-shopping. Grocery stores, as a result, are trying to focus more on marketing as one-stop shops. And they're seeing results too: average basket sizes have dramatically increased.Store of the Future
EXPERIENTIAL RETAIL WILL GET A DIGITAL FACELIFT IN THE POST-CORONAVIRUS WORLD When Nordstrom opened its New York City flagship last October, it was the epitome of experiential retail. Now, all of those experiential elements that were supposed to make the store a must-visit may deter customers. Retailers are having to rethink their experiential retail strategy, and what experiences will win over customers.Store of the Future
THE STORE OF THE FUTURE IS COMING THIS SUMMER. HERE'S WHAT IT LOOKSLIKE.
Stores are slowly reopening, but they are about to look very different. Fewer people will be inside and the technology will be used to perform easy tasks. We took a look at all of the facets required to rebuild the retail experience. While some of it may look similar to before, a lot of thought is taking place. Come on in and take a look.Member Exclusive
HOW BROOKLINEN'S GROWTH MARKETING STRATEGY EVOLVED DURING A GLOBALCRISIS
Brooklinen's marketing team explains why customer feedback is valuable during a crisis. Checking with the audience helped them modifying tone and content, target offline customers and make them comfortable with e-commerce, and leverage existing social media resources to further build customer loyalty.Sponsored
RESEARCH: PROGRAMMATIC MARKETERS WILL SUBSTANTIALLY INCREASE CTV SPENDING IN THE COMING YEAR As connected TV ad inventory becomes more plentiful, new research finds that US buyers are taking the lead on integrating CTV into their omnichannel programmatic spends. But UK and Canadian buyers have CTVambitions as well.
Retail Revolution
THE CORONAVIRUS IS ACCELERATING FOOT LOCKER'S PLANS TO MOVE ITSSTORES OUT OF MALLS
Foot Locker has long been a staple of the mall, with an estimated 80% of its stores being located in malls as of 2018. Now, the coronavirus is accelerating those plans, CEO Dick Johnson said during the company's first quarter earnings call. The sneaker retailer has had to rethink its physical retail strategy over the past couple of years, not only to lessen its reliance on malls, but also to give its customers new reasons to visit the store. Modern Retail+ Talks: How to Maintain Brand Loyalty During a Time ofTumult
Jun 4, 2020
Exclusively for Modern Retail+ members: Hear from Connie Matisse, Co-founder and CMO and Alex Matisse, Co-founder and CEO at East Fork Ceramics, on how to maintain brand loyalty during a time of tumult.Subscribe
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