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Our takeaways from Groceryshop.
October 21, 2024

Retail Brew

Particl

It’s Monday, just one day after a sad milestone in retail: The closing of the last full-sized Kmart on the US mainland, in Bridgehampton, New York. If you’re feeling nostalgic, and want to partake in a bit of retail tourism, book a ticket for Miami, where there’s still a small format Kmart. Or you can get to the US Virgin Islands and Guam, where there are full-sized stores. Long live the Blue Light Special.

In today’s edition:

—Erin Cabrey, Alex Vuocolo

STORES

Groceryshop 2024

Groceryshop grocery retail industry conference, Las Vegas, Nevada Groceryshop

Across three days in Las Vegas, Groceryshop speakers touched on a slew of top-of-mind topics for the grocery industry, from retail media networks to the evolving state of convenience, but many executives continually returned to a few central themes. Here’s what they were saying.

Evolving retailer-brand relationships

As more grocers and retailers debut new private label brands and products, they’re working to strike a balance with the other national CPGs on their shelves. While Frans Muller, president and CEO of Ahold Delhaize, owner of chains like Hannaford and Stop & Shop, said the company is working to grow its private label offerings, it’s also looking for “collaboration” within grocery categories. Muller said it works with its partners to share data and help them compete on shelf, believing that competition “fosters more ambition for more innovation.”

Keep reading here.—EC

   

Presented By Particl

What keeps retailers up at night?

Particl

RETAIL

Sale in comparison

Retail consumer with shopping bags Picture Alliance/Getty Images

Retail sales in September rose 0.4% to $714.4 billion from August and 1.7% year over year, the Commerce Department reported on Thursday. The sales jump beat analyst expectations, and comes after a 0.1% monthly increase in August.

“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” National Retail Federation Chief Economist Jack Kleinhenz said in a statement, noting that “conditions for the retail sector remain favorable as we move into the holiday season.”

Consumer prices, meanwhile, were up 0.2% monthly and 2.4% annually in September, per the Consumer Price Index released last week, a slight cooling from the 2.4% annual rise in August but still higher than analysts expected.

Keep reading here.—EC

   

E-COMMERCE

Kid in a candy store

Amazon HQ Finkavenue/Getty Images

With Halloween less than two weeks away, Mars is releasing a new crispy, crunchy twist on Skittles. The launch comes as higher cacao prices are pushing brands and consumers away from chocolate and toward gummies. We’ll have to see if trick-or-treaters take kindly to the change.

In earnings: Q3 earnings season is here with some heavy-hitters reporting their results this week. Coca Cola is reporting on Wednesday, as the company faces scrutiny from lawmakers for allegedly engaging in “shrinkflation,” or shrinking package sizes without lowering the price. Some CPG companies are also reporting this week, including Archer Daniels Midland, a food conglomerate, and Colgate-Palmolive, a household product brand.

Amazon will also report on Thursday, and the results could provide a high-level view of consumer demand during the back-to-school period, which could also provide some signals about the holiday season ahead.

Keep reading here.—AV

   

SWAPPING SKUS

Today’s top retail reads.

CVS(tress): CVS workers from seven California stores went on strike over wages and health coverage. (Supermarket News)

The costumer’s always right: How Halloween went from a minor celebration to a retail bonanza. (the New York Times)

Grab and whoa: How convenience store food got more appetizing. (the Associated Press)

HOT TOPIC

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

The rate of designer products that authenticators discovered was fake rose to 8.8% in 2023, up from 7.2% in 2022, an increase of 20%, according to data from Entrupy, the New York-based AI authentication solutions company.

You tell us: Have you ever intentionally or unintentionally purchased a designer product that was fake? Cast your vote here.

Circling back: Last time we told you about the much-ballyhooed debut of the Chicken Big Mac at McDonald’s, and asked if you found the menu item tantalizing enough to make a special trip to Mickey D’s to try it. Only 23.7% of you told us you were so interested that you’d make a special trip to McDonald’s to try it, while 32.2% said it didn’t warrant a special trip, but you’d try it the next time you were at a McDonald’s. The most popular response, though, chosen by 41.5% of you, was that you weren’t interested enough in the Chicken Big Mac to try it at all, while 2.5% of you didn’t know or weren’t sure.

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