“Goblin mode” might be Oxford’s chosen word of the year, but if the number of Roblox activations and branded NFT drops are anything to go by, honorable mentions should probably go to “metaverse,” “decentralization,” or “blockchain.”

The idea of a decentralized web (Web3) seems to have a strong grip on the hearts and minds of the retail world, from fashion to food. While adoption rates in the general population are still fairly low—earlier this year, a National Research Group report found that only 13% of consumers say they know what Web3 is—many brands are betting big on it as a new channel, and spent 2022 experimenting with projects that ranged from futuristic to nostalgic.

We rounded up a few of the most notable (or entertaining) Web3-adjacent retail experiences from 2022:

Starbucks’s new path to loyalty: The coffee giant’s blockchain-based extension to its loyalty program, Starbucks Odyssey, first announced in September, uses blockchain technology to expand rewards for its most loyal consumers. Members will be able to collect digital stamps, as well as access both virtual and real-world coffee experiences, the brand said. A beta version launched in December.

Nike leads the way: After purchasing digital-sneaker company RTFKT in December 2021, Nike was all-in on Web3 in 2022. In November, the athletics brand announced its new Web3 platform, .Swoosh, which will allow users to collect digital apparel like jerseys and shoes, unlock access to physical events, and to co-create virtual merchandise. As of mid-December, the platform is still in beta mode.

Metaverse fashion week: In March, virtual world Decentraland hosted its first Metaverse Fashion Week, a blockchain-based experience featuring a Dolce & Gabbana catwalk, a fireside chat with Tommy Hilfiger executives, and a virtual performance by Grimes, among other events.

Keep reading here.—MA

Mark 2022 as the year that the word that got big was about things getting small: shrinkflation.

The term, for manufacturers’ practice of making products smaller rather than raising prices, was first used in this context by British economist Pippa Malmgren in 2013, according to Merriam-Webster.

But this was the year it truly caught on:

• In June, web searches for shrinkflation hit a five-year high, according to Google Trends.
• In September, Merriam-Webster added shrinkflation to its dictionary.

We’ve been doing our best impressions of lexicographers when it comes to the term, too, from noting how brands are deploying shrinkflation when it comes to what they refer to as “family size,” to a related term, “skimpflation,” which describes not shrinking a product, but rather reformulating it with cheaper ingredients and charging the same.

Upgrading “downsizing”: Edward Dworsky, a consumer advocate and lawyer who publishes Consumer World, has been writing about shrinkflation for decades, but he only started using that term in 2021.

“I’ve been covering this for over 30 years, and it’s always been called ‘downsizing,’” Dworsky told us. But he started calling it “shrinkflation” because the term “has caught the attention of the media.”

It’s no wonder why the term is gaining currency. Examples abound of brands quietly shrinking their products, from Gatorade to Charmin to Crest. And while in previous eras brands may have expected consumers not to notice, today they’re noticing…and agitating.

Keep reading here.—AAN

“The ‘no-one-reads-anymore’ and ‘physical-retail-is-dying’ naysayers are getting rebuked by the facts on the ground. The Wall Street Journal reported that in a reversal of a trend that’s been going on for more than a decade, Barnes & Noble is opening more stores than it’s closing,” writes Morning Brew’s Sam Klebanov:

The country’s biggest bookstore chain once struggled to compete with both the one-click convenience and affordability of Amazon and the mom-and-pop authenticity of independent bookstores. But, after the pandemic reminded everyone that books are fun, B&N had a reversal of fortune.

Read the whole story here on Morning Brew.

Today’s top retail reads.

On a mission: E-commerce platform Thirteen Lune began in 2020 with the goal of making beauty retail more inclusive. Two years later, the platform has a number of Black and brown-owned brands in its catalog and is eyeing opening its own standalone store. (Vogue Business)

A look back: From the introduction of the Fashion Act in New York to a flood of new resale startups making a name for themselves, sustainable fashion piled up many wins this year. (WWD)

Lap of luxury: Bergdorf Goodman is a New York City staple and one of the most iconic department stores, but what would it be like to spend 10.5 hours inside? This report answers that question. (the New York Times)

TikTok has become the platform for new shopping trends. Nearly three-quarters of TikTok shoppers make a purchase on the platform when they stumble across something in their feed. Get our download now to learn more.

The numbers you need to know.

We’ve extensively covered how retailers approach returns during the holidays, but what about when shoppers get their money back and keep their product? This phenomenon—known as “friendly fraud,” or first-party fraud—occurs when a consumer makes a purchase on a credit card, disputes the purchase with their financial institution, and requests a chargeback.

Chargeback dispute rates have risen more than 35% since Q1 2022, as budgets have tightened for shoppers, according to a 1,000-person survey from Sift. Two-thirds of consumers have filed chargeback disputes, and nearly one in four (23%) admitted to participating in friendly fraud.

• In 2022, the average disputed dollar amount increased 16% to $192.53.
• The three most disputed categories include clothing (21%), subscription services (19%), and electronics (18%).

“As the economy cools down from historic highs, consumers are looking to save money however they can, luring many to resort to first-party fraud,” Brittany Allen, Sift trust and safety architect, said in a statement. “These chargebacks quickly tally up against merchants who are already under stress from the sagging economy. Merchants can mitigate chargebacks by employing a digital trust and safety strategy, which protects against fraud and abuse, streamlines the dispute process, and eliminates friction for legitimate customers.”

These chargebacks affect retailers directly and indirectly: More than 83% of consumers who have filed a dispute reported they would be less willing to buy something from a brand in the future, and 50% said they would never shop with a brand again if the merchant failed to resolve their dispute within 30 days.

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

• Why everyone got sold on resale in 2022
• What we learned from Retail Brew events in 2022
• The most overlooked and overhyped retail trends of 2022