Ice cream brands are known for taking their licks, but not in the way Van Leeuwen Ice Cream did in New York City last week.

The company, which has 19 stores in New York, has been accused by the city of disregarding the Cashless Ban Law—which requires businesses to accept cash—since it went into effect in November 2020.

But on October 11, the city’s Department of Consumer and Worker Protection notified Van Leeuwen that it planned to seek an injunction in the New York Supreme Court to force it to accept cash. Just eight days later, on October 19, the company agreed to sign a consent order and pay outstanding fines, of $33,500, and finally accept cash.

After confirming over email that she was Van Leeuwen’s press contact, Cady Roberts, the brand’s marketing director, did not reply to several emails seeking comment.

“In our communities, there are still folks that don’t have access to banks,” City Councilor Marjorie Velázquez, who chairs the Committee on Consumer and Worker Protection, told us. “We have to make sure that we have active consumers out there and we’re not discriminating against anyone.”

• An estimated 9.4% of New York City households (301,700) are unbanked, New York City’s Department of Consumer and Worker Protection found in 2021.

But what wasn’t revealed in the consent decree, or in the stories in the New York Times, amNY, and elsewhere following the news, was just how defiant Van Leeuwen seemed to be when it came to breaking the law—a law hard to shrug off with its purpose that lower-income residents who wish to pay with cash should not be turned away. Along with receiving more complaints from consumers about Van Leeuwen refusing to accept cash than any other business, the city issued the company more fines for doing so than it issued to all other businesses in the city combined.

Keep reading here.—AAN

Justin Tichy’s promotion came at a pivotal time for Petco. The retail veteran, who previously served as the retailer’s chief pet centers officer, became its chief operating officer in August, which added new responsibilities, like overseeing the company’s distribution centers.

Since going public at the start of 2021, the pet care brand has been reinventing itself, opening new store concepts and broadening its ecosystem of pet consumer services, like vital care membership, veterinary clinics, and hospitals. It’s referred to as Petco’s “retail 3.0” differentiation strategy.

• “We are driving the next evolution of retail and will continue to leverage the strategic footprint of what we call our pet care centers—our physical locations—and better personalize both the in-store and online shopping experience to gain share, drive profitable growth and, most importantly, create better outcomes for the pets and pet parents we serve,” Tichy told Retail Brew.

In Q2, demand for Petco services like for grooming and veterinary, called Vital Care, grew 13% YoY, which translated to 62% growth on a two-year basis. Vital care is a $19.99 paid membership program for Petco customers that was introduced in October 2020, but has seen significant upgrades this year.

“When we add vet hospitals and other services, such as grooming or training, to our PCCs, we see a center store lift. If a pet parent comes into a PCC to get their dog’s nails clipped, they may also pick up dog food or a chew toy,” he said. “Once they take part in our services, we’ve seen higher engagement and more opportunities to bring them further into the Petco ecosystem.”

Keep reading here.—KM

Today’s top retail reads.

Bone dry: If inflation wasn’t already enough, turkey this year will be more expensive due to an influenza outbreak that has killed 6 million turkeys across the country. (the Washington Post)

Decked out: Detroit-based DTC furniture brand Floyd is going to see if brick and mortar is worth it with its new Los Angeles showroom opening alongside a number of upscale boutiques. “As we get our product out there and into the world and build a showroom, we want it to be a very practical experience,” co-founder and CEO Kyle Hoff said. (Modern Retail)

Stitch it up: Madewell is at the new intersection of sustainability and fashion with the debut of its new patchwork collection that uses upcycled denim scraps to make everything from pants to bucket hats. (Forbes)

$marter $pending: Money with Katie is here to help you manifest your financial freedom with her weekly newsletter, which takes a spicy approach to smart spending habits, tax strategies, and investing. Subscribe for free.

The retail and e-commerce industries are suffering from inflation, recession, supply-chain issues, and more. Our analysts revisit their 2022 industry predictions to inform you on the year’s end.

The numbers you need to know.

Don’t blink, but 2023 is just over two months away. And with a new year on the horizon, retailers are looking to get out ahead of the next trends that will define the industry.

One major theme for 2023 is that retailers and brands will cut back on promises of fast delivery, free returns, and lifetime guarantees in an effort to shore up costs, according to Forrester’s 2023 predictions report. Rather, they’ll prioritize popular offerings, like free shipping, while investing in tech, like cloud-based order management systems that consolidate shipments and streamline fulfillment operations.

• That’s because 75% of US online adults find free shipping most influential to their online purchasing decisions.
• Only 21% of adults are influenced by next or same-day delivery.

As Forrester puts, about one-third of digital businesses “will regret playing ‘software company.’” Almost half of software decision-makers whose companies have or plan to adopt B2C commerce solutions told Forrester they’re evaluating or planning to replace those platforms.

• “Some digital businesses are overcorrecting as they abandon proprietary and legacy tech to embrace the most custom and flexible—but massively complex—commerce tech ecosystems,” the report read. “In their second and third years, new implementations will fail, and custom [user interfaces] will crumble from post-launch neglect.”

And it turns out, customers will be more chatty next year. Forrester predicts chat moments on third-party platforms will drive 5% more revenue. This year, 42% of adults use chat to communicate with brands, but consumers also want that capability in third-party messaging apps.

Catch up on the Retail Brew stories you may have missed.

• How two convenience stores are optimizing their delivery
• A deep dive into the South Korean resale market
• FDA and industry groups push for changes to front-of-pack food labels