Retail Brew // Morning Brew // Update
Donating returns.

Hey hey. A Chicago man lost a lawsuit on Tuesday against Buffalo Wild Wings that accused the restaurant chain of false advertising, claiming he thought a boneless wing was a chicken wing with its bones removed. A judge found that reasonable consumers wouldn’t be fooled. “His complaint has no meat on its bones,” the judge concluded.

In today’s edition:

—Andrew Adam Newman, Erin Cabrey

SUPPLY CHAIN

LiquiDonate founder Disney Petit loads items into a van.

LiquiDonate founder Disney Petit. LiquiDonate via Facebook

“Returnless refunds,” where retailers issue refunds but tell consumers not to bother returning the products, make a perverse sort of sense for retailers only because the expense of shipping products back to warehouses and inspecting them can exceed their value. More perverse still, after retailers pay to ship returns back to warehouses, many are thrown away. Optoro, a reverse logistics company, estimates that 25% of returns end up in landfills, totalling 5.8 million pounds annually in the US.

One company is touting a solution that it claims makes the most sense for returns: give them away. Since it launched in 2022, LiquiDonate has helped retailers donate more than 15 million returns and overstock items to nonprofit organizations. Its founder, Disney Petit, a self-described “sustainability nerd,” has fond memories of dumpster diving behind stores as a teen growing up in Orlando, Florida.

“I would go to these retail stores after hours and pull stuff out of the dumpsters that was in perfectly usable condition,” Petit told Retail Brew.

Decidedly less ad hoc and more sanitary than dumpster diving, LiquiDonate has had more than 4,000 nonprofits registered to accept donations through the platform. It uses an algorithm to not only ship customers’ returns directly to nonprofits, but specifically to local nonprofits, meaning considerably lower shipping costs compared to retailers’ far-flung warehouses.

Keep reading here.—AAN

Presented By Melio

OPERATIONS

Container ships

Yellow Boat/Adobe Stock

The volume of goods imported to the US on container ships fell 6.8% YoY in January, with the most dramatic decrease from China imports, which fell 22.7%, according to new data from Descartes Datamyne, a trade-data intelligence platform. The declines come as US retailers grapple with President Trump’s tariffs and geopolitical fracases, with some shifting manufacturing from China as a hedge against tariffs.

Among the 10 top importers to the US—and second behind China decrease-wise—was Italy, which fell 14.9%, followed by South Korea (7.1%), Taiwan (7.6%), and Japan (2.4%). The biggest gains among the top 10 YoY were Thailand, up 36.5%, followed by Indonesia (18%), and Vietnam (17.8%).

Those fluctuations will come as no surprise to retail executives at major brands that, as tariff tensions with China have escalated during the Trump administration, have endeavored to shift manufacturing elsewhere.

Keep reading here.—AAN

Headshot of Brad Neumann, a man with stubble wearing a brown baseball hat and black hoodie.

Brad Neumann

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Brad Neumann is co-founder and co-CEO of organic beverage brand Saint James Iced Tea.

How would you describe your job to someone who doesn’t work in retail? To paraphrase one of my favorite quotes about entrepreneurship, it’s like jumping off a cliff and building the plane on the way down. My job essentially works toward getting one person to grab one bottle of Saint James off the shelf instead of the other 300+ options at the store. To do that, I’m working on packaging, distribution, discounts, displays, and so much more—it’s about a lot more than just getting on the shelf. But when you do see us on the shelf, it’s a direct result of us funding, fighting for, and earning that space.

One thing we can’t guess about your job from your LinkedIn profile? LinkedIn, like other social platforms, shows the fun stuff and the big wins really well—the Stagecoach sponsorships and national distribution deals. What it doesn’t show is all the behind-the-scenes work. It doesn’t show me taking three flights in 24 hours, or driving three hours to meet with a retailer for just 30 minutes; it doesn’t show the 5 a.m. distributor kickoffs or 6 a.m. ride-withs. Even as CEO, I’m very hands-on and I will never ask my team to do anything I haven’t done or won’t do myself. To this day, you can still find me stocking shelves and coolers, organizing storage, breaking down pallets, and even doing weekend demos at local stores. This business is a full-on grind that never stops, and the job is all encompassing—but I absolutely love it.

What’s your favorite project you’ve worked on? Our transition from Tetra into Alumitek re-sealable bottles was my favorite project. It required a full upheaval in packaging, production process, co-packer sourcing and creative, and was a true demonstration of cross-functional efficiency from our team.

Keep reading here.—EC

Icon of a red shopping bag on a tan background.

Morning Brew Inc.

Shoppers are choosier, loyalty is fickle, and trends move fast. On February 24, join this virtual session to see what’s actually flying off shelves, which categories are heating up, and how retailers can keep up with rising expectations.

Together With StackAdapt

SWAPPING SKUS

Today’s top retail reads.

Long way from home: Home Depot tightened the qualifications for bonus payouts for managers as the frozen housing market continues to spell trouble for the home improvement retailer. (Bloomberg)

Sticker shock: Amazon finally ended a nine-day streak of tumbling stock after announcing its increased spending on AI-related efforts. (CNBC)

All in the family: Why food and bev giants are turning to their past CEOs for leadership. (Food Dive)

AI ads ChatGPT

Tadamichi/Getty Images

As AI agents shop on consumers’ behalf, advertising could shift into the background. Here’s how brands may adapt as ads become part of the algorithm—not the feed.

Check it out

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