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The increasing importance of private label brands.
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Some brands are changing the way they view private labels—and it could reshape their product strategy.

Online subscription service Bespoke Post has more than doubled its private label portfolio from two to five brands in recent years, with owned brands—including rugged apparel gear by Line of Trade and travel bag maker Halfday—contributing more than 50% to its total sales.

“I think in the past, private labels felt more like what the big box retailers were doing, where it was just like a low-cost alternative, whereas what we’re trying to do is create actual brands that have a point of view and a brand ethos, and they’re distinct,” Bespoke Post Founder Rishi Prabhu told Retail Brew.

The trend isn’t limited to subscription boxes; some other brands are also doubling down on apparel in private labels. This year, boho chic fashion brand Anthropologie spun its private label brand Maeve into a standalone brand thanks to its growing popularity. Fashion platform Stitch Fix also told Retail Brew recently that it will be headlining its private label offerings this holiday season, betting that shoppers will be drawn to their mix of quality and value.

Target saw early success within retail private label brands decades ago, particularly in apparel, and continues building that portfolio today. In February 2024, Target launched Dealworthy, a budget-friendly private label brand including apparel. Target’s owned brand portfolio—spanning food, wellness, and other categories—generates over $30 billion in annual sales. Even Nordstrom saw success with its women’s apparel private labels last year.

Keep reading here.—VC

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TECH

Cart Assistant by Instacart

Instacart

Instacart has released new AI tools for grocers to define the next phase of grocery shopping through AI-powered agents. The platform is also working with generative AI companies like OpenAI, Microsoft, and Google to figure out how the next generation of digital agents will change grocery shopping.

The grocery delivery platform’s AI strategy comprises four new tools, including Cart Assistant, which provides personalized, omnichannel shopping support to retailers and learns from every interaction. Sprouts Farmers Market will be the first to pilot Cart Assistant on its website, app, and in-store through Caper Carts (AI enabled smart carts with tablet like screens).

Another of the new tools is Store View, which gives grocers real-time shelf visibility, using image and video analysis to flag low-stock or out-of-stock items. Plus, Instacart’s Catalog Engine adds AI-powered nutrition, ingredient, and product data to existing product listings.

Keep reading here.—VC

STORES

Image of Sparky, Walmart's AI shopping agent, assisting a shopper in a virtual chat

Illustration: Morning Brew, Photos: Walmart

Walmart is bringing AI-powered tools to the in-store experience, and shoppers who use the technology are spending 25% more on average, according to Tracy Poulliot, SVP of shopping experiences at Walmart US.

When Walmart announced its partnership with OpenAI last month, the retail giant primarily focused on how the integration would allow shoppers to purchase items through ChatGPT’s Instant Checkout. In other words, it was all about updating the e-commerce experience. CEO Doug McMillon even called the tech a replacement for the search bar.

The new announcement significantly expands the ambit of Walmart’s AI capabilities, effectively extending some of the benefits of online shopping to the in-store experience. Using the Walmart app, customers can now search for sales and promotions, compare prices, and look up the availability and location of items at any Walmart store.

Keep reading here.—AV

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SWAPPING SKUS

Today’s top retail reads.

New horizons: With customers complaining about sloppy aisles and an overall frustrating in-store experience, Target is looking to strengthen its e-commerce operations. (CNBC)

Perfect fit: A new soccer deal has online retailer Zalando betting on sports clothing. (Reuters)

Last goodbye: Inside Olivier Rousteing’s departure from Balmain after 14 years. (Business of Fashion)

The critical quarter: PMG channeled their proprietary data to create Insights, Unwrapped, a key resource to help retail, consumer, and commerce brands act fast, anticipate shifts, and win the moments that matter this Q4.*

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