Morning Brew - ☕ Double trouble

Ulta’s new design highlights products and brands across categories
Morning Brew September 13, 2022

Retail Brew

Snapchat

Happy Tuesday. The Chipotle/retail crossover is getting weird. Water-cup candles are one thing, but Chipotle-napkin cargo pants? We’re guessing you won’t see them at NYFW.

In today’s edition:

—Erin Cabrey, Jeena Sharma

BEAUTY

Face lift

Ulta Beauty store entrance sign at a mall, northern Idaho. (Photo by: Do... Education Images/Getty Images

Ulta, the retailer that typically facilitates makeovers, is getting one of its own, introducing a new layout to select stores this fall.

The new look may be bad news for those who have memorized the floor plan (just us?), but it will more strongly reflect how its consumers are shopping by uniting mass and prestige in one front-of-store section, Paul Loux, VP of store design and experience at Ulta, told Retail Brew.

CEO Dave Kimbell first announced the new layout on Ulta’s Q2 earnings call on August 25, saying the move would “elevate key growth categories.”

  • Ulta reported strong Q2 earnings, with both prestige brands (like Fenty Beauty, MAC, and Clinique) and mass (like NYX, ColourPop, and E.l.f.) makeup and skin care brands delivering double-digit YoY sales gains.

While Ulta has historically bifurcated its prestige and mass offerings on either side of the store, (with fragrance in the middle and hair care and its salon toward the back) the two sections are being joined together at the front of the store—though still with delineation between the two.

Go with the glow: Beyond cosmetics, Ulta’s top-selling category, the new layout will feature a slew of other changes. Skin care is also on the move from the back to the front of the store, now positioned alongside makeup. This highlights the growing traction in the category, which was one of the best performing in Q2, per the company. The category is also of particular importance to Gen Z customers, Loux noted.

Keep reading here.EC

        

TOGETHER WITH SNAPCHAT

AR you ready to elevate your brand’s reach?

Snapchat

Augmented reality (AR) is the retailer’s gift that keeps on giving, especially as the busiest shopping season approaches. AR inspires the purchases of a whopping 66% of shoppers—and AR users spend more $$$ during the holidays, too.

Since Snapchat is already the No. 1 platform for sharing purchases and shopping content, Snapchatters are leading the way in how their generation researches, shops, and shares brands they love.

What does this share-centric culture mean for your brand? Your campaign can journey seamlessly from device to device, inspiring gift ideas and creating long-term customers who’ll use immersive AR to discover how your brand fits into their lives.

Tap into the buzz this holiday season and drive results in a Snap. Here’s how.

        

FASHION

Life like

Life like Rebecca Minkoff

For her NYFW Spring/Summer 2023 show, designer Rebecca Minkoff turned to, wait for it…a CGI presentation. Across several large rooms in an event space in Chelsea were life-size projections of models sporting her brand’s latest collection. In the other room, the real-life models stood by a wall, wearing the same looks.

Minkoff told Retail Brew the presentation was tied to the brand’s NFT partnership with Mavion. The idea behind integrating NFTs to such an extent in her collections is both to promote and introduce the brand to her customers.

  • As part of the partnership, Minkoff dropped 55 NFTs in July, and five of those included access to Minkoff’s recent show. Others granted opportunities to have design sessions with Minkoff, among other experiential perks.
  • These were preceded by another NFT release in September 2021.

“We are promoting it now because it takes time for people to understand what the eff an NFT is,” Minkoff told Retail Brew at her show. “I want my customers to embrace NFTs in the future and [understand] what that means for design as well. So we’re doing a lot of education, and a lot of messaging to my consumer to get her on board, because it’s not like you send one email, you put up an Instagram post, and people convert.”

Coming up: Minkoff joins several other designers that opened NYFW with NFT drops—including Altu by Altuzarra, Jonathan Simkhai, Kim Shui, AnOnlyChild, and The Blonds—all offering varied experiences and gifts to those who buy them.

While the metaverse and NFTs are becoming increasingly integrated with fashion, Minkoff believes it has some serious potential beyond attracting a younger set of consumers. “With anything new, it swells first and then settles,” she said. “But I think that NFTs are here to stay. It’s a way to build community loyalty, to get an entirely new customer, and it’s a way to offer something of value beyond the physical.”

She added that while she doesn’t see NFTs replacing fashion, they’ll act as an added pillar to brands who can use it to grant access. “I think I view it as a ticket to utility,” she said.—JS

        

TOGETHER WITH GLOBALEDIT

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SWAPPING SKUS

Today’s top retail reads.

Meet your match: A Taiwanese beauty tech company launched an “AI Personality Finder,” which promises to read facial features, identify personality traits, and suggest beauty products. (The Information)

Legal playbook: The history of Johnson & Johnson’s infamous talc baby powder lawsuits, and why the future of those cases now rests with a bankruptcy judge in New Jersey. (the New Yorker)

Drinks up: Alcohol delivery is on the ballot in Colorado’s November elections in the form of an Instacart-backed measure that has raised over $8 million. (Colorado Sun)

So, what’s new in tech? Want more of the latest news at the intersection of tech and retail? Emerging Tech Brew covers the latest happenings, trends, and changes hitting the tech world, all in one place. Sign up here.*

*This is sponsored advertising content.

RETAILERS: THE CLOCK IS TICKING

Snag advanced ticket pricing for The SKU! This all-day event will cover the future of shopping, sustainability, customer loyalty, and omnichannel everything. You’ll hear experts from TikTok, Crocs, Harry’s Inc., and more. See you there!

WHAT ELSE IS BREWING

  • Starbucks announced its foray into web3: a digital community for its rewards members called Starbucks Odyssey.
  • UPS will hire over 100,000 workers to deal with holiday-season demand.
  • Coach introduced its newest ambassador, Lil Nas X, at NYFW.
  • Peloton founders John Foley and Hisao Kushi—who served as chairman and chief legal officer, respectively—are leaving the company.
  • Rent the Runway said it would cut 24% of its corporate workforce; shares dropped 22% after it lowered its annual sales forecast.

TIME MACHINE

What happened in the world of retail this week in…1875 and beyond? Retail Brew takes you way, way, way back.

  • On September 13, 1955, George de Mestral was granted a patent for Velcro, which he called “velvet type fabric.”
  • On September 13, 1963, Mary Kay Ash launched Mary Kay Inc. in Dallas, Texas.
  • On September 16, 1875, James Cash Penny Jr., founder of J.C. Penney, was born.
  • On September 18, 1981, the West Edmonton Mall in Canada made the Guinness Book of World Records as the world’s largest parking lot.

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Written by Erin Cabrey and Jeena Sharma

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