Augmented reality retail experiences are easily accessible today by any consumer with a smartphone, from furniture placement to testing lipstick shades. By many indications, AR is more than a Big Tech buzzword: some estimates suggest the global market will be worth over $97 billion by 2028. And it’s not just Meta and Apple who are betting on an AR-enabled future.

In 2020, Amazon’s Alexa Fund invested in smart lens-maker Mojo Vision, and last week, the pair announced a test integration with the Alexa Shopping List in which lens-wearers can access and interact with their list hands-free while in the grocery store.

Even with the new use case, some experts are hesitant to predict a future in which computer-clad shoppers stroll grocery aisles while using eye movement to scroll through coupons.

“On the consumer side, we’re not expecting retail,” Shahd ElAshri, a research analyst specializing in consumer devices at International Data Corporation Canada, told Retail Brew. “We don’t think people are going to jump at the idea of wearing glasses while they’re shopping.”

An uncertain landscape

Consumer analyst Carolina Milanesi said that while AR hardware has use cases in a retail setting, she’s skeptical that consumers will find value outside of the home.

Technology that enables users to test out potential items of clothing together, or to visualize sizing and get more information about a product while shopping from home, is extremely valuable, she explained. But from an in-store perspective, she doesn’t see as much value for consumers. “I feel you’re starting to think more about a solution searching for a problem,” she said.

• For her part, ElAshri predicts that, partly because of consumer hesitancy, AR applications in retail will continue to be experiences—like testing out makeup via smartphone—not hardware, such as glasses or contact lenses.

Keep reading here.—MA

Heyday made it rain last year with a more than half-billion-dollar funding round. A year later, the company is boosting its portfolio of brands as it seeks to become a modern-day CPG heavyweight.

The company recently closed on an acquisition of ZitSticka, a personal care brand that specializes in acne treatment and prevention. It’s an acquisition that CEO and co-founder Sebastian Rymarz said fits perfectly into the Heyday model.

• For starters, Rymarz said Heyday believes ZitSticka has a great product that’s shown success in the market, as the company recently moved into Target and Ulta.
• Secondly, ZitSticka brings in $15–$20 million in annual revenue, which meets Heyday’s target of $10–$50 million for brands it acquires.
• And lastly, Heyday, while confident in ZitSticka, believes it can help scale its omnichannel operations and increase efficiencies across the brand, Rymarz said.

“We do things like get better demand planning, and re-architecting the supply chain, and bringing our ad-bidding algorithms to bear right. So there’s all of these things that we can do to drive efficiency,” he told Retail Brew.

But why would an up-and-coming DTC brand agree to an acquisition? “We pay more,” Rymarz said. He explained that Heyday is able to offer up a higher acquisition deal based on the projected trajectory of the acquired company.

• “Now we’re able to pay more, we’re going to win more deals. If we win more deals, we get more brands that give us more contribution profit that allows us to make bigger investments in the platform,” he said. “And on and on it goes. That’s the flywheel.”

Keep reading here.—KM

“A tight labor market has some employers placing more emphasis on skills and certifications than previous employment or secondary education. HR pros can use social media to understand what capabilities and skills candidates can bring to their workplace,” writes HR Brew’s Adam DeRose:

John Patterson, VP for talent at Macy’s, told HR Brew in September that to recruit seasonal hires ahead of the busy holiday season, the company got creative with how it advertised jobs. This was especially helpful when trying to reach specific demographics.

Beyond advertising on social streaming platforms, the retail giant also used a number of social media platforms to reach different communities.

Read the whole story here on HR Brew.

Today’s top retail reads.

When life gives you leggings: Lululemon is nearly “synonymous with athleisure,” but the brand’s inroads in the space have also affected the apparel industry at large. (Retail Dive)

Sweet tooth: In the midst of record inflation, mass layoffs, and a potential recession, people are turning to chocolate to soothe their concerns. Chocolate makers are reporting booming sales. (CNN)

Holding on for dear life: There are a handful of retail chains—household names, in some respect—that have struggled over the past few years and might not make it to 2023. (Yahoo Finance)

Retail recipes: Searching for the secret sauce of retail? Look no further—NewStore’s 2023 Omnichannel Leadership Report has all the goods to understand the current state of retail and its progress toward digital transformation. Download your copy here.*

^{*This is sponsored advertising content.}

Hey retail readers, have you heard?

Marketing Brew is hosting a full-day affair of industry exploration and navigation on November 15 in NYC. Complete with brand leaders and industry connections, The Brief: A Summit Presented by Marketing Brew is an event that cannot be missed.

Incredible speakers from HBO, REI, Vans, and more will take to the stage to tackle the dizzying industry topics we love so dearly. Get 15% off your tickets using the code RetailMarketers at checkout.

The numbers you need to know.

It’s no secret the holidays are a time when people across the country get their drink on. But what exactly will be popular this year in shopping carts and bars?

Taking a look at Q3, purchases of low-alcohol and better-for-you wine grew 35% YoY, and spending on pre-mixed cocktails increased 29%, according to shopper intelligence firm Catalina.

• Canned wine fell 17%, bottled wine was down 5%, and both domestic and imported beer sales only grew 3%.
• Craft beer and flavored malt beverages gained 6% and 4%, respectively. Hard seltzer sales fell drastically at 29%.

Catalina believes these gains and losses will reflect what shoppers will stick to once the holidays roll around. “Knowing what shoppers are more likely to put into their baskets this holiday season allows us to identify and better segment 1,700-plus syndicated and custom audiences, which in turn helps our retail and CPG customers develop personalized messaging and incentives,” Sean Murphy, chief data and analytics officer at Catalina, said in a release.

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

• How discounting impacts a luxury retailer’s brand image
• A marketplace that helps small brands find short-term retail space
• The cannabis industry scales up as more states move to legalize