Morning Brew - ☕ Show and resell

Resale’s big year.
December 21, 2022

Retail Brew

Twilio Segment

Hello, hello. In case you didn’t have time to read Vulture’s viral “The Year of the Nepo Baby” coverage this week, we’ll point out a strange-but-true retail-related entry: Isidor Strauss, the co-owner of Macy’s who passed away on the Titanic when it sunk in 1912, is the great-great-grandfather of singer King Princess.

In today’s edition:

—Andrew Adam Newman, Jeena Sharma, Erin Cabrey

RESALE

The year brands bought into resale

Someone takes a photograph of a shirt on a smartphone, an image typical for a product listing on a used-clothing website. Choi Dongsu/Getty Images

If someone predicted a decade ago that brands like Tommy Hilfiger, Rolex, and Pacsun would launch resale programs in 2022, you’d have told them to hold on while you drew up a purchase-and-sale agreement for the nearest bridge. But somehow clothing resale went mainstream.

In April, we asked James Reinhart, co-founder and CEO of ThredUp, how he viewed the industry’s evolution.

“We’re at the Honda Insight and Prius stage of resale,” Reinhardt said. “When those [hybrid] cars originally came out…the Prius was an ugly car. And the Honda Insight was an ugly car.”

But resale is moving out of that “early adopter” phase, and toward what he called a “Tesla” phase. In other words, Reinhardt acknowledged that resale-clothing retail isn’t as evolved as new-clothing retail yet…but it’s getting there.

In the meantime, when it comes to resale clothing, 2022 offered a walk-in closet’s worth of milestones, surprises, and insights.

Everybody in the pool!

Brands from A (Allbirds) to Z (Ziabird) opened online resale shops in 2022. Plenty of non-avian brands got on board, too, including Athleta, Steve Madden, and Eddie Bauer.

It’s not mainly being green

The environmental benefits are often cited as a big motivator for resale shoppers, but as it turns out, there are other factors they care about more.

Resale isn’t a PR panacea

In October, Shein launched its resale platform, Shein Exchange, and it may have been expecting some love for helping to mitigate the environmental impact of fast fashion.

Instead, it drew accusations of greenwashing.

Buyer + seller = Circular

Toss out the buyer-sellar binary, because in resale, it’s much more fluid. Recurate’s August report also found:

  • Nearly three out of four (73%) sellers of secondhand items also purchase them.
  • Recurate calls these buyer-seller hybrids circulars.

Keep reading here.—AAN

        

TOGETHER WITH TWILIO SEGMENT

Keep ’em close

Twilio Segment

New customers are costly. Companies usually have to spend a lot more $$$ to find new customers than to retain existing ones—up to 25 times more. That shocking stat means every brand should have a customer retention strategy in place. What’s yours?

Twilio Segment’s Ultimate Guide to Customer Retention takes a deep dive into how you can keep your customers and avoid the rising costs of customer acquisition. Peep the guide to find out:

  • the 5 metrics to measure customer retention and identify churn risk
  • proven strategies that drive engagement and increase customer lifetime value
  • how a customer data platform (CDP) leads to increased customer engagement

Ready to retain? To learn more about the key trends that impact customer retention, download the full guide here.

EVENTS

Listen up

Crowd of people mingling at an event Retail Brew’s The SKU, photographs by Kristoffer Tripplar

2022 has been a year of learning and growing, at least for retailers who continued to persevere despite challenges ranging from supply chain, excess inventory, inflation, and the looming (almost here?) recession.

Luckily, Retail Brew had several events featuring a diverse group of experts who readily lent some useful advice. Don’t worry if you weren’t able to make it to any; we here at Retail Brew have summarized some key takeaways from our events this year. You’re welcome.

Ace in the hole: Kicking off this recap with the first event of the year in March featuring Bill Kiss, Ace Hardware’s head of digital and retail strategy, in conversation with our very own Katishi Maake. The duo chatted about Ace Hardware’s omnichannel strategy and how its investing in its supply chain to accelerate the delivery of its products.

“We’re thinking about the entire value chain. Honestly, that’s where really good companies evolve their model,” Kiss said. “When I hear the word ‘user experience,’ especially in a digital context, it’s, ‘Well, this is the website.’ It stops when you hit the checkout button. That’s not how we think about it. It’s the full fulfillment chain.”

Good as goldfish: Likewise, in June, Erin Cabrey sat down with Danielle Brown, Campbell Soup Company’s VP of cookies and crackers to talk about….well, goldfish. But also of course about tapping into the Gen Z mindset as an iconic brand established over 60 years ago.

To achieve this, Brown said the brand had invested in launching inventive flavors such as Old Bay, developed in partnership with McCormick, and Frank’s Red Hot, which sold out in nine hours on McCormick’s site. “As we broaden the aperture for the consumer base, we can also think differently about what product experiences are going to be appealing to them,” Brown told Erin.

Keep reading here.—JS

        

COMMUNITY

Coworking with Alissa Pagels-Minor

A person's name, title, company, and headshot Alissa Pagels-Minor

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

Alissa Pagels-Minor has worked on digital creative for retail brands like Sara Lee, Tazo, and Takis throughout her career, and now, as director of marketing at MagicLinks, she works with 5,000+ brands and 25,000+ creators to connect them with e-commerce tools and campaign solutions.

How would you describe your job to someone who doesn’t work in retail? I help retailers and brands discover our solutions to scale their reach and sales through influencers on social media.

One thing we can’t guess about your job from your LinkedIn profile? The amount of time I spend in spreadsheets and our creator platform.

What’s your favorite project you’ve worked on? One of our creator tools, In-Bio, which is a “link in bio” solution for content creators on our platform.

Which emerging retail trend are you most excited about this year, and why? I continue to be excited about the creator economy and the opportunities for both brands and entrepreneurial content creators to drive value and connection with today’s digital consumer in a space that continues to rapidly evolve.

What’s your go-to coffee order? Americano, plain.

Worst piece of advice you’ve received? “Wait until it’s perfect to start.”

What was your favorite retail product when you were 15, and what’s your favorite retail product now? [When I was 15,] pink parachute pants from Hot Topic. [Now,] 9-Ingredient Face Soothing Face Serum from Typology.

        

FROM THE CREW

The Crew

CFO Brew has assembled a guide to help corporate finance pros prepare for the digital future of corporate finance. Check it out to learn more about identifying trends with technology, consolidating data to improve forecasting, utilizing automation and ERP platforms, and empowering your team.

SWAPPING SKUS

Today’s top retail reads.

Cracking the code: How Kim Kardashian is utilizing QR codes to drive purchases for her skincare line Skkn by Kim. (Digiday)

Tech the halls: Home Depot’s senior VP of technology breaks down how the home improvement retailer is using tech to improve its holiday-shopping experiences. (Chain Store Age)

Rocket and roll: Inside the partnership between Circle K and ultrafast delivery startup Food Rocket. (C-Store Dive)

STRATEGY GUIDE

How to keep retail sales high after the post-holiday rush

How to keep retail sales high after the post-holiday rush

The holiday season is one of the most significant moments for retailers, bringing in nearly $800 billion annually.

But what happens after the holiday rush? Many businesses enter a so-called “post-holiday slump,” which can pose a serious financial challenge if they’re not prepared to combat it.

Don’t let that happen to you. Download Retail Brew’s guide for quick tips on finding sales success in the new year.

Read it here.

WHAT ELSE IS BREWING

  • Amazon and the EU landed on an agreement to end antitrust investigations.
  • H&M has stopped sales of its Justin Bieber collaboration following his comments that it was “trash.”
  • Nike’s earnings beat expectations with sales jumping 17% year over year.
  • General Mills’s pet-food business is faltering as retailers pull back on inventory.
  • Party City received a notice from the New York Stock Exchange that it is “no longer in compliance” for listing.
  • Instacart announced it will offer discounted Instacart+ memberships to SNAP recipients.

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Written by Andrew Adam Newman, Jeena Sharma, and Erin Cabrey

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