Vitruvi rebranded last month with new packaging centered on helping consumers better understand scent profiles in store. Now, Vitruvi's plans to center customer acquisition in store: the brand is inking new retailer partnership deals and launching new products to appeal to a broader array of retailers.
Target's operating margin dropped from 30% to 26% year-over-year, as the retailer discounted inventory, navigated supply chain issues and increased staff wages. Analysts explained that Target's earnings highlight the increasing difficulty of getting the right product at the right time amid headwinds ranging from inflation to continued supply issues.
Direct-to-consumer glasses brand Warby Parker is focused on widening its suburban store footprint to grow sales. The retailer opened eight stores in the first quarter and plans to open 40 total across 2022, primarily in suburban locations. While analysts interviewed by Modern Retail praised the strategy as a smart diversification tactic for the brand, they warn about the costs of expanding too quickly in an inflationary environment.
Competition in the e-commerce returns space is heating up, leading some companies to join forces. Last week, Shopify returns provider Loop and PayPal's Happy Returns announced a partnership that allows Loop users to offer box and label-free returns at Happy Returns' 5,000 service locations. Loop's president Aaron Schwartz said that while Happy Returns and Loop may have been seen as competitors, the new partnership will allow each provider to focus on their expertise areas: offline drop-off return logistics and online return software, respectively.
Armed with new funding, retailers and traffic growth, sneaker marketplace Kicks Crew aims to help more mom-and-pop sneaker retailers launch a digital presence. Sneaker marketplace Kicks Crew enables itself to list over 400,000 styles from brands like Nike and Adidas by serving as an e-commerce aggregator for smaller retailers and boutiques across the globe. Kicks Crew lists, ships and authenticates products across these retailer partners in what it calls a "business to business to consumer" model, similar to Farfetch.
REI's used gear sales grew 86% last year compared to 2020. REI's circular commerce and new business development director Ken Voeller talked to Modern Retail about streamlining rental and resale, leaning on REI's co-op model for product acquistion and the complications of selling used technical gear.
At Peloton, revenue dropped 23% year-over-year to $964 million in the brand's fiscal third-quarter earnings presentation today. Losses, meanwhile, grew to $757.1 million in the quarter. To return to growth, the brand plans to focus on growing membership in its fitness app, cutting prices of products to drive sales and expanding customer acquisition cheaply by entering third-party retail.
Outdoor gear and apparel brand The North Face is relaunching its resale program with new service partners, in hopes of expanding the types of resale products it services it offers.
As inflation concerns rise, alcohol conglomerates are betting on more expensive drinks to drive sales. The "Above Premium" portfolio at Coors with brands like Blue Moon and the "Above core" portfolio at AB InBev with brands like Corona or Stella both grew their share of total revenue in the quarter.
Denim brand Levi Strauss and Co. is adding more digital tools to help customers find the right size jeans, as part of its mandate to grow direct-to-consumer sales. On Tuesday, the company announced two new digital fit features to its site: a predictive fit algorithm and a photo-bank of products on people of different body types.
While some consumers returned to malls in 2021, January indoor shopping mall foot traffic was down 12.2% compared to January 2020, according to Placer.Ai. In turn, many mall-centered brick and mortar brands like Victoria's Secret, Gap or Skechers are looking for incremental sales via wholesale and retailer partnerships.
Despite inflation, CPG conglomerates outperformed first-quarter estimates after hiking prices. Last week, food and beverage conglomerates Coca-Cola, Hershey's, PepsiCo and Mondelez all surpassed earnings estimates, with year-over-year, first-quarter revenues up between 7% and 16%. While executives have described inflationary pressures as a potential headwind on profits, price increases have largely insulated these conglomerates' bottom lines.
Direct-to-consumer marketplace The Fascination was acquired today by digital publishing vendor StackCommerce for an undisclosed sum. The Fascination co-founder Matt Hayes said today's acquisition deal would help The Fascination get "more eyeballs on its site" and offer "different ways to get in front of millennial customers." StackCommerce, meanwhile, will use the partnership to access The Fascination's premium DTC client list.
Meta -- formerly Facebook -- is betting on a brick-and-mortar store to sell people on its metaverse business. The concept is the latest signal of Facebook's intentions to diversify its revenue streams beyond advertising. However, analysts are skeptical about the mainstream adoption potential of some of these metaverse technologies.
In the first quarter, social media platform Snap Inc.'s revenue increased 38% to $1.06 billion and daily active users were up 18% to 332 million. To further appeal to brands and creators alike, Snap is going all-in on augmented reality.
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