Sustainability has been a hot topic in fashion over the past few years, and it only continued to burn in 2022.

As awareness of the environmental as well as labor-related costs of the fashion industry heightens, consumers want more than the promise of good quality and an affordable price. And this year, retailers were listening to them.

“There have been numerous highlights to the criticality of sustainability and also tensions around it,” Brian Ehrig, a partner at consulting firm Kearney’s consumer practice, told Retail Brew via email. “If sustainability wasn’t a topic for a fashion company before, it is now.”

Tech played an integral role in the focus on sustainability, with luxury brands from LVMH to Ganni and Stella McCartney investing in innovative fabrics, for example. PJ Smith, director of fashion policy at the Humane Society, previously told Retail Brew that he was hopeful about alternative materials like mushroom leather as well as silk.

“I also know that alternatives [that are] biodegradable are taking off,” he said. “That’s going to be something that we’re not even going to see—we’re not going to recognize that transition. It’s just like, one day, all our puffers are going to be filled with more sustainable and animal-friendly alternatives.”

One more time: Beyond sustainable fabrics, several retailers also introduced their own resale programs as thrifting and the secondhand market gained momentum as both a more sustainable way to shop and also a cheaper alternative amid rising costs.

Keep reading here.—JS

After a record-breaking M&A year in 2021, retail dealmaking cooled a bit in 2022 due to the tough inflationary environment. But when the deals were made, they were big (we’re looking at you, Kroger and Albertsons), so from grocery and beyond, we rounded up a few standout moves from 2022.

Kroger and Albertsons plan to merge

October saw one of the biggest proposed deals in the US grocery industry’s history: Kroger, the country’s largest grocer, announced its plans to buy the second largest grocer, Albertsons, in a deal worth nearly $24.6 billion. The two claim the proposed move would help them compete against rivals such as Walmart and Amazon, grow their footprint, and lower prices. Of course, they’re facing a rigorous regulatory review by the Federal Trade Commission first, but hope to close the deal by early 2024.

Estée Lauder acquires Tom Ford

The Estée Lauder Companies in November shared its plans to acquire luxury brand Tom Ford in a deal valued at $2.8 billion. The deal is expected to close in the first half of 2023, with the eponymous Tom Ford staying on as its “creative visionary” through the end of next year.

Getir gets Gorillas

While rapid delivery startups boomed during the pandemic’s peak, they faced a bumpy road this year, with many going up for sale, exiting the US market, or shuttering all together. The most notable consolidation came in December, when Getir bought its competitor Gorillas in a deal that would value the new entity at $10 billion.

Mondelez grabs Clif

After turning down the offer for Quaker Oats to buy it for $120 million in 2000, Clif Bar & Company sold for a much higher price tag—$2.9 billion—to food giant Mondelez in June. The move establishes a $1 billion snack-bar portfolio for Mondelez, which also owns refrigerated bar brand Perfect Snacks.

Keep reading here.—EC

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

As general partner at Andreessen Horowitz, Connie Chan leads the consumer investing team, with a focus on tech companies within retail and commerce. She’s also a board member at live-shopping platform Whatnot and online clothing brand Cider.

How would you describe your job to someone who doesn’t work in retail? I invest in early-stage consumer technology companies, including those shaping the future of how people will shop, discover new products, and share them with our friends. Day to day, I’m meeting with entrepreneurs to learn about the problems they see and how they’re using technology to solve them, and providing support to the companies I’ve previously invested in.

One thing we can’t guess about your job from your LinkedIn profile? It involves so much customer research! Before I invest in any company, I try to put myself in the shoes of their target customers. This might mean attending retail conferences so I can chat with brands directly, hosting a live-shopping stream, or going through the purchase flow on various platforms to figure out what feels low-friction or fresh.

What’s your favorite project you’ve worked on? Hard to pick! Generally, I love being a strategy partner to the companies I invest in—especially helping them understand global trends and innovations that they could adapt for US customers. For example, I’m a board member of live-shopping platform Whatnot. Live shopping has been huge in China for years now; I’ve closely studied it and am always sharing insights with Whatnot’s co-founders.

Which emerging retail trend are you most excited about this year, and why? It’s my job to spot trends and future market disruptors before anyone else, and I look at consumer internet and behavior trends bubbling up in Asia to inform my investing areas here in the US. I believe short-form videos will revolutionize commerce by moving from a discovery tool to an actual purchase tool. In the US, we’ve barely scratched the surface of the potential.

What’s your go-to coffee order? Americano, no cream. I’m definitely more of a tea person.

Worst piece of advice you’ve received? “Just follow your passions.” I have since referred many people to Ben Horowitz’s (co-founder of my firm, Andreessen Horowitz) commencement speech on following your contribution, not your passion.

What was your favorite retail product when you were 15, and what’s your favorite retail product now? Favorite retail product at age 15 would likely be a piece of clothing: my Adidas windbreakers, which made me feel sporty and cool. Favorite retail product now: I can’t believe I’m saying this, but my Dyson vacuum. I feel satisfied every time I use it.

Today’s top retail reads.

Going private: In the first three quarters of 2022, private-label brands accounted for 8.7% of c-store sales, though they make up just 6% of items on shelves. Experts share how these stores can capitalize on private label. (C-Store Dive)

Smooth operator: With support from Hailey Bieber, Kourtney Kardashian, and a slew of TikTok influencers, inside the rise of the Erewhon smoothie. (Fashionista)

In small part: A look inside the smaller, off-mall concept Market by Macy’s in Southlake, Texas. (Omni Talk Retail)

Learn: Wanna level up your personal finance game but don’t know where to start? Money with Katie’s got you covered. Subscribe to her Personal Finance 101 series here.

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

• Startup backed by an NFL cornerback has a new take on package-theft insurance
• Returns not only pose financial costs but also environmental ones
• Adidas’s latest fashion foray is purely digital