Morning Brew - ☕ Well, isn’t that convenient

Convenience store delivery.
Morning Brew October 26, 2022

Retail Brew

Attest

Hello, hello. A friendly reminder that there are only five days until Halloween, so if you don’t settle on a costume soon, you may be stuck with a very dated Billie Eilish look from the Party City clearance rack.

In today’s edition:

—Erin Cabrey, Hayden Field

DELIVERY

At your convenience

one hand passing a paper shopping bag to another Foxtrot

If there’s one thing shoppers want these days, it’s convenience. And who better to offer that than convenience stores?

The concept of convenience has changed a bit in recent years, however, as the pandemic changed consumer behaviors and startups looked to meet them with items delivered at a blink-and-you-miss-it speed. But c-stores have worked to keep pace, and while some have turned to fulfillment partners like DoorDash or Grubhub to do so, others have moved to build out ops in-house.

“Startups don’t have as much experience with the vendors, with how to think about merchandising, of how to really build loyalty with their customers over time,” Ken Fenyo, president of research, and advisory at Coresight Research, told Retail Brew. “The c-stores have some advantages they can really rely on.”

For some c-stores, that customer experience and loyalty is more important than getting a milk pint to a consumer’s doorstep in 15 minutes flat. Retail Brew caught up with two c-stores, Foxtrot and Casey’s, about optimizing delivery operations and balancing their physical and online channels.

Trot pursuit

When Foxtrot debuted in Chicago in 2014, its business was solely online, delivering items from local coffee roasters, brewers, and bakers in under an hour—which was “pretty darn fast at the time,” co-founder and CEO Mike LaVitola told us.

But after a few years, the company realized it made more sense to have its own inventory, and has spent the last five years “dialing in” its retail presence.

Piece of the pie

Since 7-Eleven’s acquisition of Speedway last year, Casey’s is the country’s third-largest c-store chain. It’s no stranger to delivery, first introducing it in 2011, and also offers other digital options like curbside and in-store pickup.

Historically, most of those delivery orders were for its made-from-scratch pizza, but when the pandemic hit, it began to make more convenience items like beverages and snacks available, too, now offering 700 items, Art Sebastian, its VP of digital experience, told us.

Keep reading here.—EC

        

TOGETHER WITH ATTEST

Tonight’s menu? Cutbacks.

Attest

Prices keep going up, which means consumers are trimming their budgets wherever they can—and grocery spending is on the chopping block for many. As your retail biz gears up for Q4 (and starts planning 2023), stay current with the latest data on consumer buying behaviors.

Attest dug into the details impacting every category by surveying 2,000 working-age consumers across America. They found that nearly half of respondents are choosing cheaper snack brands and buying less alcohol, and over half are cutting down on fast food.

These numbers may seem intimidating, but informed brands can use this data to adapt to consumer behavior and prevent revenue losses.

And if you need help planning your next move, Attest offers guidance on everything from brand tracking and consumer profiling to market analysis.

Learn more here.

COMMUNITY

Coworking with Josh Illig

Coworking with Josh Illig

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

This week, we’re getting to know Josh Illig, the VP of retail at Brooklinen. He’s leading the DTC bedding company’s retail strategy, which this year included tripling its brick-and-mortar footprint with new stores in Portland, Oregon; Philadelphia; Santa Monica; and San Francisco, with more to come.

How would you describe your job to someone who doesn’t work in retail?

I always like to say my job is 51% developing my team and 49% business strategy and portfolio management. On a daily basis, this looks like partnering with my team and cross-functional partners within the Brooklinen organization to execute strategic priorities to grow the business, scouting future locations for brick-and-mortar retail, and supporting all of the functions necessary to continue creating a best-in-class retail experience.

One thing we can’t guess about your job from your LinkedIn profile?

How much of my time is spent traveling! Perhaps you would guess that I travel here and there, but many people don’t realize that my role often requires me to be on the road upwards of two or more weeks per month. This includes everything from visiting store teams and engaging with local communities, to scouting potential locations.

What’s your favorite project you’ve worked on?

I’m actually in the midst of my favorite project to date in my career: helping Brooklinen build a best-in-class retail experience, essentially from the ground up. What makes this my favorite is the level of cross-functional partnership it requires, along with the ability to instill a people-first mindset and integrate our strong company culture from the onset.

Which emerging retail trend are you most excited about this year, and why?

I’ve said it for a while, but it remains true—omnichannel. The ability for customers to shop how they want, when they want, and where they want is the future. When it works well, there is a seamlessness to how customers interact with a brand that is truly incredible.

What’s your go-to coffee order?

Coffee is a huge passion of mine. I’m a big fan of either a black Americano or cold brew!

Worst piece of advice you’ve received?

I do not remember the exact words shared, but it was along the lines of always telling people what they want to hear to avoid conflict or disappointment. I have learned time and time again that the best course of action is to speak with candor and honesty. If you come from a place of compassion and curiosity, people are far more receptive, and it allows you to dive into the real work.

What was your favorite retail product when you were 15, and what’s your favorite retail product now? My favorite retail product when I was 15 was probably my cell phone! I remember having the Nokia model where you could change out the face plate and thought that was the coolest thing. Now I would have to say it’s my iPhone. The concept of having such a powerful tool in my back pocket never falls short of mind-blowing to me.

        

VENTURE CAPITAL

Invested

A Chipotle burrito and a storefront on top of a smartphone Francis Scialabba

“Regenerative agriculture. Supply-chain solutions. Kitchen robotics. They’re all technologies that could help fuel the future of restaurants—and they’re all areas of interest for Chipotle’s $50 million venture fund, Cultivate Next,” writes Emerging Tech Brew’s Hayden Field:

The fast-casual chain’s 3,000+ locations are owned by the company itself, which also boasts a debt-free balance sheet, per [Curt Garner, Chipotle’s CTO]—something that gives the company “a lot of flexibility, when we find good ideas, to experiment, scale, and implement,” Garner told us, making it easier to fund a venture arm.
Cultivate Next’s first cohort was composed of two startups: Meati Foods and Hyphen.
Meati…focuses on using fungi to create plant-based proteins. Hyphen…has introduced a robotic makeline that’s installed underneath a restaurant counter to make pickup orders, alongside employees.

Read the whole story here on Emerging Tech Brew.—HF

        

TOGETHER WITH BAZAARVOICE

Bazaarvoice

What do consumers want? More content! If your brand needs help adapting to the booming demand for quality user-generated content, join Bazaarvoice’s content supply chain master class. Learn how to activate an efficient, effective content system that powers consistent e-commerce growth. Register here.

SWAPPING SKUS

Today’s top retail reads.

Real talk: Shake Shack is the latest brand to join BeReal, an app whose lack of monetization has made it an experimental marketing platform for brands. (Digiday)

Ghost town: The story of Spirit Halloween, known by many as a “Grim Reaper of retail.” (NPR)

Star-crossed: Morphe placed bets on celebs like Emma Chamberlain and Ariana Grande to sell products, but its plans didn’t quite pan out. (Business of Fashion)

WHAT ELSE IS BREWING

  • Adidas cut ties with Ye, the rapper formerly known as Kanye West, over his antisemitic comments. Gap also removed Yeezy Gap merch from its stores and website.
  • Bed Bath & Beyond interim CEO Sue Gove will assume the role permanently.
  • Amazon will start accepting Venmo for payment in the US.
  • Zara owner Inditex is selling its Russian business to Daher Group.

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Written by Erin Cabrey and Hayden Field

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