Morning Brew - ☕ Past sense

The year in review…in review.
December 29, 2022

Retail Brew

Wunderkind

Greetings. We made it. The final edition of Retail Brew in 2022. We’d like to take a moment to thank our wonderful readers and let you know even better stuff is coming your way in the new year. We’ll be back in your inbox on January 3, so be on the lookout.

In today’s edition:

—Erik Wander, Maeve Allsup, Erin Cabrey

RETAIL

Year in Review (October–December)

Map of the US showing warehouse locations Frank Scialabba

Congratulations! You’ve made it to the final piece of our month-by-month breakdown of the year in retail, a (mostly) chronological look at the industry in 2022 as seen in our own reporting.

Q4 was all about delivery, discounts, and looking back (for us). But be sure to peruse the rest of the year:

Jump to: Q1 | Q2 | Q3

October

Our theme of the month: Delivered in full

Delivery is one segment (among many) that’s undergoing significant change, so in the run-up to what promised to be yet another busy holiday season, we dug right in.

Grabbing the headlines:

Your favorite:

Well worth the read:

🎗 Remember this:

Keep reading here.—EW

        

TOGETHER WITH WUNDERKIND

Put it in a text

Wunderkind

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STORES

I wish I wrote that: Andrew Adam Newman’s “Why Van Leeuwen was slapped with more fines for not accepting cash than all other NYC violators combined”

A sign on the door of a Van Leeuwen Ice Cream store that says "We're cashless. Credit/debit cards + mobile payments only. Andrew Adam Newman

We asked our reporters, who play so well with others, to choose a favorite story from 2022 by a Retail Brew colleague.

Andrew Adam Newman has a unique ability as a writer to make absolutely anything interesting, engaging, and fun to read. Job listings by Andy? I’d apply, no questions asked. Fiscal reports by Andy? I’d read every word. Tax help by Andy? Sign. Me. Up.

Needless to say, when I sat down to pick my favorite, there were many contenders. I almost chose this one, about how there’s an entire industry dedicated to selling glasses to people who have perfect vision, or this one, about ambient scent in retail stores.

But ultimately, my top Andy story of 2022 is this deep dive into how one NYC ice cream store blew right by the city’s ban on cashless businesses…until the city government took notice. It’s the second installment of his reporting on the cashless law, and writing it involved filing a freedom of information request, and then combing through data spanning nearly two years. Andy takes the story of one brand’s battle against a local law, and puts it in the broader context of cashless policies and corporate responses to unbanked consumers.

But what wasn’t revealed in the consent decree…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.

Not what you were expecting from a family-favorite sweet-treat brand, huh? Leave it to Andy to dig deeper into a story than anyone else. I hope he got some ice cream out of it at least!—MA

Read the whole story by Andrew Adam Newman here.

        

GEN Z

I wish I wrote that: Katishi Maake’s “Two Zoomers dish on the struggles of being young founders, Gen Z shopper habits”

Madison Semarjian and Ana Kannan Photos: Madison Semarjian and Ana Kannan

It’s not easy understanding Gen Z, but as the generation’s retail spending power grows, getting inside their heads is increasingly important.

Our own Katishi Maake was up to the challenge this year, finding two fascinating and well-spoken subjects—Madison Semarjian, 24, founder of fashion-curation app Mada, and Ana Kannan, 23, founder of sustainability-focused apparel marketplace Toward—to shed light on what Zoomers really want when it comes to retail.

The result is an informative and succinct piece that perfectly balances the founders’ personal experiences and the wider Gen Z perspective. It’s got both surprising stats and well-selected, eloquent insights like this one:

“Sometimes [retailers] try to have all the bells and whistles, and that’s not necessarily the best way to do it,” Semarjian said. “Don’t give me access to the world; give me better access to things that I want to see in my world and what’s relevant for me.”

Bottom line: This story will make you a Gen Z-enius.—EC

Read the whole story by Katishi Maake here.

        

SWAPPING SKUS

Rounding up some of the best store design reads of the year:

Best bet: Best Buy introduced a smaller store format earlier this year with a digital-first edge. The move was also an attempt to compete with some of the retail heavy hitters, like Target and Amazon, which are also experimenting with new stores. (The Street, July)

Fresh fit: You know the Everything Store eventually had to try its hand at fashion. Amazon opened its Amazon Style concept that makes use of touchscreens and QR codes to “make trying on clothes easier.” (Insider, May)

Beauty behind the madness: Ulta’s new concept reimagines how the retailer thinks about its merchandising, doing away with the prestige and mass split that stores are typically divided into, but rather housing new categories. (WWD, November)

Defying expectations: Taco Bell Defy, the two-story, four-lane new drive-thru concept the chain opened earlier this year, is meant to usher in the future of fast food. It’s a future where mobile orders account for the majority of orders and customers can seamlessly get their hands on that Gordita Crunch faster than ever. (The Washington Post, June)

On target: Target went big this year with a new 150,000-square-foot store concept, roughly 20,000 square feet larger than a typical location. Why? The expanded backroom offers fulfillment space for digital orders. (Winsight Grocery Business, November)

WHAT ELSE IS BREWING

We also rounded up some of our favorite retail-related stories of the year from our sibling Brews.

Upstream: Streamers like Amazon and Peacock have fewer ad breaks. That should come as no surprise as anyone. But how they’re making up for it might: the time-honored tradition of product placement. (Marketing Brew)

Off the rails: Just what exactly are the ramifications for the supply chain if rail traffic were, well, derailed? The mere possibility of a national railroad strike would seriously disrupt not only the movement of freight, but the US economy itself. (CFO Brew)

Up-front: Businesses striving to reduce turnover among frontline, hourly workers would do well to consider investing in job quality by, say, providing good pay and benefits for all their employees. (HR Brew)

Autopilot: Way back in March, FedEx announced it was planning to test a cargo-carrying autonomous, hybrid-electric vertical take-off and landing (VTOL) system in “early 2023.” The Elroy Air craft can travel 300 miles and carry 300–500 pounds, according to the company. (Emerging Tech Brew)

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Written by Erik Wander, Maeve Allsup, and Erin Cabrey

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