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Express Checkout #71 - the latest in CPG, Retail, and eComm

Commerce and CPG news from the week of 4/22/24

Author

Nate Rosen
April 29, 2024

Hello hello!

It’s a sad day in the grocery world, everyone’s favorite 3rd place and VC backed shoppy shop (shout out Emily Sundberg for adding this into my vocab) has closed abruptly on Tuesday April 23rd, 2024. A real hit to emerging CPG brands.

Surprising to some, and not to others just fives months after Foxtrot and Dom’s Market merged to form Outfox Hospitality, announced they filed for Ch 7 and the immediate closure of all its store locations in Chicago, Texas, and the D.C. area. Some disgruntled employee filed a class-action lawsuit that alleges the failure to provide notice and compensation required under the Worker Adjustment and Retraining Notification Act.

Here are some other resources and breakdowns for those curious: Snaxshot, Modern Retail, New Consumer, Boss Barista, My TikTok :)

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Now on to the news of the week!

(If you’re reading this email in gmail it might get clipped! You can always view full issues here.)

🔥 Big News - 10 items or less 🔥

  • Bad powder - A court in Illinois has ordered Johnson & Johnson and Kenvue to pay $45 million in a lawsuit regarding talcum-based baby powder. The ruling came after a family alleged that the powder led to the death of a relative diagnosed with a fatal cancer linked to asbestos exposure. source

  • A Walton steps down - Walmart's longest-serving director, Rob Walton, son of founder Sam Walton, is set to retire after serving as chairman of the board of directors from 1992 to 2015. During his tenure, Walmart became the largest retailer in the U.S., with sales growing from $44 billion to $482 billion. The company has nominated Brian Niccol, CEO of Chipotle Mexican Grill, to replace Walton on the board. source

  • Fast-fashion retailer going under - Express, the apparel retailer, has filed for Chapter 11 bankruptcy protection and plans to close over 100 stores, including all of its UpWest locations (which i didn’t know it owned!). The company received $35 million in bankruptcy financing and an additional $49 million from the IRS related to the CARES Act. Express is pursuing a sale to a consortium led by WHP Global, which also includes mall owners Simon Property Group and Brookfield Properties. source

  • Health tracker hit the bullseye - Oura's smart ring is now available at select Target stores in the U.S., following similar partnerships with Amazon and Best Buy. The company's CEO, Tom Hale, has been focused on expanding retail presence amid increased interest in health trackers. Source

I will say if this is really how they’ll merchandise it, I think it leaves a lot to be desired

🗞️ News from the week (4/22/24 - 4/28/24)

🛍 Retail

  • Foot Locker has unveiled its "store of the future" concept at a New Jersey mall featuring a streamlined layout, immersive experiences, and specialized options like customized lacing. The company plans to open 5 new locations this year and redesign 900 stores by 2025. Source

  • Room & Board has transitioned to a 100% Employee Stock Ownership Plan giving their 1,100 employees a financial stake in the company. Source

  • Craft retailer Joann Inc has received approval from a U.S. bankruptcy judge for a restructuring plan that will eliminate $505 million in debt and allow all 815 retail locations to remain open. The company entered Chapter 11 bankruptcy in March. Source

  • Buc-ee’s is expanding in Tennessee with a new 74,000-square-foot store in Gallaway. This will be the fourth location in the state. Source

  • Walmarts in St. Louis and Cleveland have made the decision to remove self-checkout lanes in order to enhance the in-store shopping experience. The change was prompted by feedback from employees and customers, as well as local shopping patterns. This follows similar moves by other retailers, such as Dollar General and FiveBelow. Source

  • Blackstock & Weber founder Chris Echevarria has announced the opening of his first store in NYC's Nolita neighborhood. The store will feature products from B&W and his ready-to-wear line Academy, as well as books, accessories, magazines, and vintage items. Source

🛒 CPG & Consumer Goods

  • Estée Lauder Companies and Microsoft have partnered to establish an AI innovation lab focused on leveraging generative AI across ELC's beauty brands. source

  • Coola, a 20-year-old sun-care brand, has undergone a brand refresh with new packaging, product photography, and a campaign. Source

  • Jason Wu Beauty has partnered with CVS to bring a curated collection of products to over 3,000 stores across the United States. Source

  • L.L.Bean and Summersalt have joined forces to launch an exclusive collection of swimwear, cover-ups, and summer-ready gear. Source

  • Rebag, a luxury resale retailer, has launched a new membership program called Rebag+. Members pay a monthly or yearly fee and receive benefits such as free shipping and discounts on merchandise. Source

  • STAND+ has launched a new line of energy-dispersive, non-slip shoes designed to reduce workplace accidents and alleviate the pain and fatigue associated with prolonged standing. The company experienced significant sales growth in Q1 2024 and secured new funding from angel investors and VCs. Source

  • FX Matt Brewing Company has acquired 'Merican Mule, a spirited-based RTD company known for its vodka-, tequila-, rum-, and bourbon-based RTDs. Source

  • Acid League is launched three of their popular salad dressings, including Mango Jalapeño Dressing, Miso Caesar Dressing, and Carrot Ginger Dressing, at over 300 Target locations. source

💻 eCommerce

  • TikTok Shop has expanded its secondhand luxury fashion offering to the UK. The new category allows customers in the UK to purchase pre-owned high-end clothing, designer handbags, and accessories directly within the TikTok app. Source

  • Walmart-backed fintech startup One has entered the buy now, pay later market, offering loans for big-ticket items at over 4,600 Walmart stores. Source

  • Walmart+ members will have exclusive early access to new products during a 24-hour online sales event. The event offers a curated assortment of limited-edition items, including Dolly Parton’s Rockin’ New Baking Collection and Doritos Flamin’ Hot Mystery Flavor. Source

    • As more and more retailers like Target and Amazon and Walmart all fight to compete in paid memberships there needs to be differentiating factors like this

  • Saks has launched the Saks Media Network, a program that enables brands to reach luxury shoppers through digital advertising on Saks.com. Source

  • Best Buy and CNET have announced a partnership that aims to enhance the customer shopping experience by integrating CNET recommendations across Best Buy channels. Source

  • Amazon has launched a new monthly subscription program that offers unlimited one-hour grocery delivery and 30-minute grocery pickups for Prime members, with a reduced cost option for low-income non-Prime members. Source

🏭 Supply Chain

  • FedEx will be closing 4 facilities in Florida, affecting more than 200 employees as part of the company's efforts to reduce operating costs. source.

  • Ship Essential is expanding its fulfillment and same-day delivery services to Los Angeles. The Brooklyn-based 3PL plans to launch operations in the West Coast city by the end of April. This expansion comes after Ship Essential's acquisition of Carry, a delivery provider that offers unique fulfillment methods. source

    • Carry enables them same-day delivery, I was able to test it out a few weeks ago. Works really well!

  • Hawaiian Airlines has added a second Airbus A330-300 cargo jet for Amazon, operating a new route between New York's JFK airport and Amazon's air logistics hub in San Bernardino, California. source

  • The USPS plans to migrate by end of summer its air cargo to UPS before its contract with FedEx expires in September. source

  • Drones drones drones

    • Amazon is ending its drone delivery program in Lockeford, California, and plans to start deliveries in Arizona later this year. Despite the closure Amazon intends to expand drone deliveries to more U.S. cities in the future. source

    • Walmart is expanding its drone delivery service to four stores in Texas, partnering with Wing to launch the service at Walmart Supercenters in North Richland Hills and Tarrant Parkway. Walmart aims to cover 75% of the Dallas-Fort Worth population with its drone delivery service. source

💸 Funding news

  • Diddo, a Santa Monica-based provider of an API for interactive ads, has raised $2.8M in seed funding led by Link Ventures with participation from Neo, Lamar advertising’s family office, Scott Forrstal, and executives from companies such as Disney, Sundance TV, and MGM+. source

  • L Catterton has acquired a majority stake in Kiko Milano, the Italian beauty brand founded by the Percassi Family. Kiko Milano has experienced impressive growth, recording net revenue of approximately $800 million in 2023. source

  • Plastic action platform rePurpose Global has acquired sustainability software company Bluebird Climate. Source

  • KEY, a startup founded by former executives from PepsiCo and Coca-Cola, has raised $4 million in seed funding led by AgFunder. The company aims to disrupt the functional beverage market in the US with its zero-sugar ketone-fueled energy drink. Source

  • Playground, an intimate wellness label founded by singer Christina Aguilera, has closed a $2 million funding round led by Palm Tree Crew Holdings. The funding will support product innovation and the brand's launch into Target. Source

  • WILDE chips has raised $15 million in growth funding to drive brand expansion, innovation, and consumer engagement. Led by Karp Reilly, the round also included participation from musicians Jack Harlow and MGK, The Family Fund, Grey Space Group, and other strategic investors. Source

    • I spoke with founder and CEO Jason Wright, check out my interview here!

🧐 Interesting reads

💡 Data, reports, and trends

😋 Brands and things I’ve tried this week

There are two new friends in my freezer - Alec’s Ice Cream and MìLà

  • I recently sat down with the founder of MìLà, Jen Liao. You can read that interview here!

Meyer lemon cookie is insane!

Thanks for reading! If you have any suggestions, feedback, or stories I missed, let me know!

Nate :)

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