Morning Brew - ☕ First of all

Why the supply chain's first mile poses the biggest challenge.
Morning Brew September 26, 2022

Retail Brew

Sailthru

Happy Monday! To start the week with some good news first: In a positive sign for city retailers, traffic congestion is returning in downtowns throughout the US, Axios reports. And the bad news: Traffic congestion is returning in downtowns throughout the US.

In today’s edition:

—Maeve Allsup, Ryan Barwick, Jacob Donnelly

SUPPLY CHAINS

First order of business

Alter Eco cacoa farm Getty Images

Improving end-to-end supply chain transparency is a top priority for companies of all sizes across industries, but very few actually have complete visibility. And while the last mile is top of mind as companies struggle to match Amazon’s delivery times, it’s the first half of the supply chain that poses the biggest challenge.

Specifically, it’s the first mile—farm level activity, before goods reach a manufacturer or shipping container—that continues to be a black box for brands and suppliers.

That’s in part because of the fragmented nature of global agriculture, Christopher Mejía, director and founder of MIT’s Food and Retail Operations Lab, told Retail Brew. The first mile tends to lack the technology and accessibility that would facilitate visibility, he explained.

“It’s a problem related to economics, it’s a problem related to training, and it’s a problem related to logistics, and that’s why it’s so challenging,” Mejía said.

Ground level: Suppliers might be closer to the farms than anyone else in the supply chain, but first-mile visibility is still a heavy lift, Juliet Wiebe-King, vice president of sustainability and business development at fruit and nut supplier Red River Foods, explained.

Taking control of large swaths of the supply chain allows Red River to pinpoint where individual products come from down to the farm level, and ensures a reliable flow of information about local markets and crop quality. But that doesn’t come cheap.

Digitizing the first mile: There’s general consensus in the industry that deploying the right technology in the first mile is critical, but even with cutting-edge technology designed with farmers in mind, the only way for a company to truly understand what’s happening at the beginning of its products’ lifecycle is to be on the ground, Mejía told us.

Keep reading here.—MA

        

TOGETHER WITH SAILTHRU

Message delivered…but did it *deliver*?

Sailthru

SMS marketing packs serious potential for brand growth. After all, 95% of texts are read in under 3 minutes. To take advantage of all that exposure (and to avoid sounding spammy), you need messaging that’s clever, curated, and convincing.

Sailthru’s guide can get you there. The Right SMS Message for Every Marketing Initiative is designed to help spark messaging inspo that engages and converts.

Elevate every marketing campaign with features like SMS sign-up incentives, loyalty programs, and seasonal merch drop notifications. From personalized birthday texts to back-in-stock notices, learn how to leverage any occasion toward your revenue goals.

Download your copy of the guide here.

        

MARKETING

Networking

Walmart storefront Yvandube/Getty Images

Walmart’s retail media business announced it would be partnering with both Snap and TikTok. Specifically, the partnership will enable advertisers that use Walmart Connect to buy in-stream ads on TikTok, and image, AR, and e-commerce ads on Snap, writes Ryan Barwick for Marketing Brew:

Instead of just buying ads directly on those platforms, advertisers will be able to layer on everything Walmart knows about its shoppers for targeting and measurement [. . .] Retail media networks are a booming segment of the industry that could reach $101 billion in 2022, and represented 18% of global digital advertising revenue as of 2021, according to GroupM forecasts.
Target’s got one. So does Kroger, which added CTV and video inventory last week. Even Marriott created a media network earlier this year [. . .] Apple’s iOS privacy changes have contributed to a loss of signal, making it harder for advertisers to know whether their ads are working. TikTok and Meta have also signaled cuts to their e-commerce strategies. Retail media networks can potentially help fill that void, explained Mike Feldman, SVP and head of commerce and retail media at Dentsu.

Read the full story here, on Marketing Brew.

        

Come together

Come together

Behind every great editorial team is an annoying publisher. And while you never hear from me, I am constantly thinking about how to make the Retail Brew community even tighter. Ask Josh Sternberg, our executive editor, how many times I slack him about Retail Brew. He’s probably triggered from seeing that little red dot next to my name. [Editor’s note: He is.]

I digress…

For a community to really be a community, it needs to come together.

That’s why we are hosting our first-ever one-day summit, The SKU, right here in New York City on October 25.

We’re convening 400+ retail professionals to learn from each other by getting honest about important topics like sustainability, creating and sustaining brand loyalty, and retaining employees.

To make this event as impactful as possible, you’ll see some of the best operators in retail on stage with our editorial team. I mean, look at this brain power:

  • Kat Cole, President and COO, Athletic Greens
  • John Aylward, Chief Marketing Officer, JCPenney
  • Ciara Anfield, Chief Member and Marketing Officer, Sam’s Club
  • Matt Cleary, US Head of Retail and E-commerce, TikTok
  • James Reinhart, Co-founder and CEO, ThredUP
  • and so many more…

The retail industry has been a roller-coaster ride over the last couple of years, with ups and downs and loop-the-loops, and I would be shocked if things just naturally calmed down. It’s my hope that every attendee will walk away with insights that can make an immediate impact on their business.

Even more, I want everyone to walk away with new connections—whether that’s our editorial team or other Retail Brew readers.

We’re only getting started, and we’re so grateful that you are a part of building this community with us.

Register today so you don’t miss out. Use my coupon code FromThePublisher to save 25% on your ticket. See you there!

—Jacob Donnelly, publisher of Morning Brew

        

TOGETHER WITH WUNDERKIND

Wunderkind

Rev up your revenue. Wunderkind’s 2022 Market Outlook Report lays out actionable steps to prep you for Black Friday, Cyber Week, and beyond. Find out how you can bolster customer loyalty opportunities, use personalized messaging that converts, and stay relevant this season. Download the report here.

        

SWAPPING SKUS

Today’s top retail reads.

The Alibaba model: How Kroger, Walmart, and Target took cues from Alibaba about omnichannel grocery. (CNBC)

Run DTC: A Barclays analyst is skeptical about Nike’s DTC strategy and downgraded its stock. (Insider)

Float alone: Why Ivory Soap is still a supermarket staple after nearly 150 years. “How many other soaps can you think of that tout an attribute that’s analogous to ‘It Floats?’” said David Placek, founder of Lexicon Branding. “I can’t think of another.” (CNN)

Learn: There’s no scientific method for creators. But our very own Alex Lieberman is prepared to teach you what you need to know to succeed by sharing what has helped him in this uncharted territory. Sign up for his Strategy for Creators master class today.

Reimagine the retail road map: You won’t wanna miss our Retail Brew x Bolt Virtual Event on Sept. 28, where we’ll hear from the CMO of Chewy and Bolt’s VP of Customer Experience about how they’re elevating the e-comm experience for the better. Register here.*

*This is sponsored advertising content.

EVENTS

We all have those brand websites we go back to again and again. What are these brands doing to reel us back in, time after time? Well, Chewy CMO Mark Eamer has a few insights to share. Join us for our virtual event sponsored by Bolt Wednesday, Sept. 28 at noon ET, where we will chat with Mark about all things online retail strategy. Sign up here.

WHAT ELSE IS BREWING

  • Macy's will hire 41,000+ seasonal holiday workers.
  • Costco reported its Q4 sales were up 17.5% YoY, totaling  $70.76 billion.
  • Unilever said CEO Alan Jope will retire at the end of 2023.
  • Amazon will have another Prime Day sale on October 11–12.
  • Balmain and Estée Lauder announced a collaboration on luxury beauty products.
  • Walmart will now sell wedding dresses. Its Eloquii line, for women's sizes 14–28, has unveiled a bridal collection.

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 state of New York legalized recreational marijuana in 2021, allowing for retail weed stores, which are expected to begin opening later this year.

Like other states, including California and New Jersey, New York is giving priority for store licenses to those who’ve previously been convicted of offenses related to marijuana (or have a close family member who has), a disproportionate number of whom are people of color. It is, naturally, meant as redress for what some see as an overzealous and overstepping drug war.

  • The state will award its first 150 retail licenses to applicants who fit the bill.
  • It also created a $200 million fund to help them with loans and set-up costs.

But for some, the program is one toke over the line.

“We should never reward people for breaking the law, even if the law was changed,” Will Barclay, the top Republican in the New York State Assembly, told The Wall Street Journal.

You tell us: Should those who’ve been convicted of marijuana-related crimes be given priority for a retail weed license?

Circling back: Last week, we asked you about major credit card companies in the US instituting a new merchant code for stores that sell guns and ammunition that may make it easier to trace gun purchases after the guns have been used in crimes. Gun-reform advocates lauded the move; the NRA opposed it, arguing it infringed on Second Amendment rights.

We asked if you thought credit card companies made the right call in creating a new category code for retail outlets that sell guns, and 67.1% of you agreed with the credit card companies, while 32.9% disagreed.

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Written by Maeve Allsup, Ryan Barwick, and Jacob Donnelly

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