Morning Brew - ☕️ Step up

Designer Brands reimagines a new store concept.
Morning Brew May 09, 2022

Retail Brew

Listrak

Hello, hello, hello. If you feel like you’ve been in kind of a rut with your lunch choices, this week you could mix it up with baby eels, which just had a near-record haul in Maine and cost only $2,162 a pound.

In today’s edition:

—Katishi Maake, Glenda Toma

STORES

Big shoes to fill

Warehouse Reimagined store Designer Brands

Wake up, babe. A new DSW store just dropped.

Over the weekend, the company opened a new concept store in Houston called “Warehouse Reimagined.” And there’s a lot going on.

House of brands

The store is smaller than a typical DSW (15,000 square feet vs. 20,000+ square feet), and—in addition to featuring names like Adidas, Birkenstock, and New Balance in dedicated spaces—it’s a chance for parent company Designer Brands to showcase its own brands, like Vince Camuto and Lucky Brand.

  • The owned and national brands have displays that function like a shop-in-shop concept.
  • Warehouse Reimagined also has spots for pickups and returns, as well as mobile product displays.

“We continue to see the evolution of how [customers] want to be engaged, where they want to be engaged, and ultimately how they want to shop,” Jared Poff, EVP and CFO at Designer Brands, told Retail Brew. “This is just us following that evolution and really marrying up what continues to be a combination of wanting a completely seamless, immersive experience that crosses the digital platform, as well as the physical platform.”

  • Poff mentioned the company is eyeing adding capabilities that let customers check out with their phones.

Name game: The name was a shoe-in. The “warehouse” component refers to how the company has used its stores over the past four years, and this concept will be no different. Last year, Designer Brands’s digital sales crossed the $1 billion threshold for the first time. Of that, 60% of orders were shipped from a local store in a customer’s neighborhood.

  • It helps that 70% of the US population is within 20 minutes of a DSW location, Poff noted.

“Even if it’s a dropship order—something that they’re buying from a national brand that we don’t carry the inventory in—we just make the product available digitally for them to see it,” he said. “They can still have that delivered to a store if they want to do a buy online, pick up in store. For those reasons, we continue to say they aren’t just a showroom; they are a warehouse.”

Click here to read more.KM

        

TECH

Capture perfect

products floating out of smoke stacks Francis Scialabba

Scaling up carbon-capture and carbon-removal tech is a big focus, but…what do we do once we catch ’em all that carbon?

As Emerging Tech Brew’s Grace Donnelly notes, one option is upcycling captured CO2 and using it to make products that rely on fossil fuels—aka carbon utilization. And people have plenty of ideas for how to make it sexy: You can turn captured CO2 into diamonds, or vodka, or little black dresses.

Capturing the moment: Now, let Grace introduce you to LanzaTech, one of the companies working to recycle carbon. Since it was started in 2005, the Chicago-based company has partnered with brands to use captured carbon to make products ranging from perfume to laundry detergent. In April, it said it would team up with Bridgestone on a process to recycle used tires. It’s also working with Zara and Lululemon to produce materials for clothing.

  • And—don’t bug out—it’s feeding CO2 to bacteria to create sustainable aviation fuel and other chemicals.

“We can’t build enough, fast enough. Demand is humongous,” said Tom Dower, VP of public policy at LanzaTech. “These are consumer-facing brands, all these ones that we’re working with. Their consumers want them to give them a choice. And that’s what we say is give consumers a choice of where their carbon comes from.”

Read the full story on Emerging Tech Brew here.—GT

TOGETHER WITH LISTRAK

Create showstopping marketing

Listrak

All marketers want their campaigns to put on the best performance possible (aka engage, convert, and drive revenue). But without the right platform to power and synchronize their marketing campaigns, they run the risk of flopping rather than earning an encore.

That’s why more than 1,000 retailers and brands use Listrak: the leading cross-channel marketing engagement platform with a data-first approach that orchestrates messages across channels, devices, and the entire customer journey.

Listrak’s single platform helps you with everything from capturing customer data with Identity Resolution (GXP) to powering cross-channel experiences with SMS and email.

Wanna experience the harmony Listrak can bring to your marketing campaigns? We created an interactive soundboard representing each pillar of Listrak’s all-in-one platform. When you play them all together, the unified soundtrack is (quite literally) music to your ears.

Make your marketing melody and steal the stage with Listrak. Check out our interactive soundboard here.

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.

Last week, a majority draft opinion showing the Supreme Court might overturn Roe v. Wade was leaked, sending shockwaves across the nation. Within hours of the news, protests were under way—and still are.

Some retailers have also spoken out:

  • Levi’s, in a statement, said “protecting access to the full range of reproductive health care, including abortion, is a critical business issue.” It added that “employees are eligible for reimbursement for health care-related travel expenses for services not available in their home state, including those related to reproductive health care and abortion” under its benefits plan.
  • Gucci made a similar pledge over the weekend, as more companies expand abortion benefits. (In fact, Amazon did so hours before the news of the draft opinion broke.)

Others, including Walmart, have stayed silent—so far. Or, they’re waiting. Like Home Depot, which declined to comment to CNBC through a spokesperson, noting “since this is a draft, it wouldn’t be appropriate for us to speculate on the court’s final ruling.”

You tell us: Do you think retailers have a responsibility to speak out on abortion access? Cast your vote here.

Circling back: Last week, we asked if you wanted paper or plastic or both when it comes to single-use bag bans. Close to 42% believe that paper and plastic should be included in policies, while 32.8% want to stick with just plastic. About a quarter (25.5%) think shoppers should be able to make the call.

WHAT ELSE IS BREWING

  • Baby-formula shortages are getting even worse, with a current out-of-stock rate of 40%, up from 31% in early April. 
  • Ikea plans to spend about $3 billion to open more stores in cities, as well as refit its typical mazes locations to help fulfill e-comm orders.
  • Tyson Foods reported quarterly earnings that topped expectations as meat prices surge.
  • Moda Operandi is the latest luxury e-comm platform to get into beauty.

TOGETHER WITH PATTERN

Pattern

Connect with the best in the biz. Accelerate: the Global Ecommerce Acceleration Summit brings together ecommerce executives, brands, and innovators in Salt Lake City, June 15–16, to strategize with specialists, elevate their insights, and network with industry rock stars. Speakers include actress and Hello Bello cofounder Kristen Bell, Pattern CEO David Wright, and tons of groundbreaking ecommerce leaders. Grab your ticket here.

SWAPPING SKUS

Today’s top retail reads.

Strike delivery: Why delivery work may be the next hotbed of union organizing. “There have been many, many instances in which Instacart either reduced pay, removed transparency, or otherwise manipulated or tweaked our earning capacity,” said Vanessa Bain, founder of the Gig Workers Collective. (Eater)

Dream job: A mattress company in India, Wakefit, requires all 677 employees to nap from 2pm to 2:30pm—in sleeping pods and quiet rooms. (Quartz)

Cask masters: How Macklowe, a small-batch whiskey maker that sells its booze for $1,500 a bottle, became a hit with Wall Street moguls. (Bloomberg)

Looking for more? Check out Retail Brew’s latest article diving into Gen Z’s consumption habits, sponsored by Edelman.*

*This is sponsored advertising content.

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Written by Katishi Maake and Glenda Toma

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