It’s been another week with a lot more retail information than there is time in the day. Below, we break down some things you might have missed over the week and what we’re still thinking about.
From Taco Bell’s subscription service to the forecast for the holiday season, here’s our close of the week.
What you might have missed
Drunk Elephant sees great possibilities at Ulta
Not all loves were made to last. Drunk elephant, once a Sephora exclusive, said earlier this week that he was “drunk on love” with beauty store rival Ulta. From September 26, the Drunk Elephant Skin, Body and Hair Care Assortment will be available in all Ulta stores and online. The expansion is important for Drunk Elephant, because Ulta had it 1,296 stores at the end of July, which probably played a big role in breaking the Sephora exclusivity.
The two beauty retailers have both fought for exclusives with trendy new brands and create an exciting assortment of merchandise for customers, especially as Ulta has has grown far beyond its image as a “drug retailer” become a space where shoppers go for beauty products at all prices. The two also compete for space in large retailers, through Ulta’s shop-in-shop partnership with Target and Sephora’s similar deal with Kohl’s.
“Distribution at the nation’s largest beauty retailer marks a new era for Drunk Elephant and the opportunity to reach a new community of beauty lovers,” the company said in a statement.
Casper reportedly fired dozens of employees, including senior executives
Mattress brand DTC Casper on Friday informed its staff of layoffs affecting “dozens” of employees, TechCrunch reported. These included the COO, Director of Marketing and CTO of the brand. Casper declined Retail Dive’s request for comment.
The retailer, which recently withdrew from its European operations, reported North American revenues in the the second quarter increased by 44.6%. But at the same time, the retailer’s losses have grown and the brand hasn’t made a profit since it went public last year.
The latest wave of layoffs adds to staff reductions last affecting 21% of its global workforce, which were linked to the closure of its European activities.
Target launches very first Latin Heritage Month collection
For the first time, Target is launch a collection of products for Latin Heritage Month. The collection highlights Latino-owned brands at Target like Siete Foods, Rizos Curls and Pacinos, as well as new brands like Cocina54 and Millennial Loteria. The retailer has also partnered with Latino designers and members of the Target team to make 80 products across all categories available online and in stores throughout September.
Indochino becomes relaxed
When a bespoke menswear retailer trumpets its new collection of ready-to-wear knitwear, it’s clear that casual menswear is a lingering trend. Indochino recently unveiled its fall / winter collection, and it includes “retro-inspired suits and a new line of Italian fabrics,” two things that are meant to appeal to a dapper man – especially, in this case, if he has a penchant for the styles of the 70s.
But the collection also includes Indochino’s first ready-to-wear crewnecks and short and long-sleeved polo shirts as “more comfortable and casual options,” according to an emailed press release.
“The world is going through a big change and, as we look to the future, we want to offer even more comfortable and casual options such as knits, as well as forward-thinking seasonal fabrics,” said the CEO of Indochino. , Drew Green, in a statement. “Our clients may be back in the office, working from home or somewhere in between, and we’re here to help them build their wardrobe – and confidence in their style – on their own terms.”
Knitwear is designed to move, in more ways than one. Custom costumes from retailers each cost $ 429. Those for its new Monza line – made from “premium” woolen fabrics from the Guabello factory in northern Italy – are $ 549. Velvet tuxedos for winter weddings and other formal year-end occasions, now available in emerald, black, and navy, as well as burgundy, purple, and brown, are priced at $ 399. But the new Indochino knit is $ 79.
Give them something to taco-combat
For some, this news will be paradise. Others will swear it’s their version of hell.
Lettuce, however, gathers to discuss Taco Bell’s latest offering.
It’s a taco subscription service (!) which allows participants to treat themselves to one taco per day for 30 days.
Here’s how it works: You purchase a Taco Lover’s Pass, which is available on the company’s app by November 24 at participating locations. (But, to be true with you, all of those places are in Arizona for some reason. Why does all AZ love Taco Bell?) The pass costs between $ 5 and $ 10 depending on the user’s location.
A menu will be revealed and you’ll be able to choose a taco from a list that includes items like Soft Taco Supreme, Crunchy Taco, and Doritos Locos Tacos. Then you can keep doing the same thing every day for a month. It will be the best month of your life. Or the worst. Who can say?
What we still think about
Some analysts were skeptical of Walmart + when it launched about a year ago. After all, it costs about as much as an Amazon Prime account, with no entertainment streaming service or other perks to attract members. But with thousands of stores to use for curbside fulfillment and pickup, Walmart has quickly gained traction with the service, which includes unlimited same-day delivery and fuel discounts, as shoppers wary were looking to check off their grocery lists during the pandemic without stepping into a store.
This week, analysts at Deutsche Bank led by Krisztina Katai recorded what they called “an inflection in membership,” estimating 32 million American households are members of Walmart +, an increase of 400 basis points. than what the team found at the start of the year.
This doesn’t mean Amazon Prime is losing. “The overlap remains high,” with more than 80% of households paying for both memberships, according to the report. Still, the 60-year-old brick-and-mortar giant is in on it, as Walmart + attracts younger, higher-income customers. Indeed, statistics led Deutsche analysts to title their research “The Behemoth Awakens”.
However, not everyone buys it. GlobalData chief executive Neil Saunders took to Twitter to state the estimate of $ 32 million “ridiculously inaccurate, ”citing Walmart’s own earnings reports.
This Deutsche Bank report that Walmart + has 32 million members is ridiculously inaccurate. I saw real numbers some time ago (last year) and they were far from it! But, the falsity of the information can be seen in Walmart’s own reports.
– Neil Saunders (@NeilRetail) September 16, 2021
“I haven’t seen the latest figures from Walmart +, but it’s safe to say that even if they are going up, they’re nowhere near the 32 million level,” Saunders said later in this thread. “That would represent insane growth – far greater than that achieved by Amazon – for a program that is good but far from universally convincing.”
That’s the high end of Deloitte’s projections for 2021 holiday sales. It would add to last year’s 5.8%, a figure that pretty much exceeds everyone’s estimates.
This year, consumers are bursting with cash from several rounds of stimulus packages and diverted spending from travel and experiences. There is evidence that the delta variant of COVID-19 shifts even more money towards product sales as consumers remain wary of travel, meals and other experiences. The wildcard of the season is probably not demand but supply, as pervasive bottlenecks throughout the global supply chain threaten both margins and inventory.
What we watch
How much will these next IPOs bring in
It’s (again) IPO season. Running brand just raised $ 746 million of its IPO and set a final share price of $ 24, which was significantly above its initial price range. There are still a few IPOs that we are waiting for. AKA brands just this week announced that it would sell 13,888,889 shares with an initial price range between $ 17 and $ 19, valuing the company up to $ 2.5 billion. The Shining Earth, on the other hand, is sale of 16,666,667 shares with an initial price range of $ 14 to $ 16.
It is certainly the year of the IPOs in retail, but will they have the same success as On or will they follow the trajectory of Honest Co.?