Morning Brew - ☕ No rest fur the weary

What California’s fur ban means for retailers.
January 13, 2023

Retail Brew

Printful Enterprise

Happy Friday. Wondering what to drink this weekend? Well, Tom Hanks has come up with a unique cocktail recipe that he calls the “Diet Cokagne”: Diet Coke topped with champagne. Sounds weird? Well, Hanks says don’t knock it ’til you try it. We know we will.

In today’s edition:

—Jeena Sharma, Katishi Maake, Matty Merritt

SUSTAINABILITY

A Califurnia story

"No" symbol rendered in fur to represent a fur ban Francis Scialabba

This is the first of two stories about California’s fur ban. In part 2, we’ll look at the movement to overturn the law.

There was a time when a lavish mink coat symbolized luxury and opulence. Well, not anymore—or at least not in California, which as of this month, officially became the first state to ban the sale of new fur products.

The law, which was passed in 2019, went into effect last week, meaning retailers must cease sales of all new clothing and accessories made of fur (unless it’s secondhand). The outcome has been a long time coming as similar provisions were already in place in Los Angeles, San Francisco, and Berkeley.

  • The law is likely to have a big impact on fur-sellers as California accounts for 22% of total fur sales in the country.

Similar laws are already prevalent in parts of Europe and potentially in the works in states like New York, and many shoppers seem to have long supported a ban of fur products.

  • Fur Free Alliance published a map showing that 71% of Americans are opposed to killing animals for their fur, when surveyed by Research Co. in 2020.

Retailers have been taking note, as shifting consumer sentiment has driven brands to experiment with innovative fabrics, a trend that is likely to continue.

Fur-tunately: Leading the sentiment against fur and in favor of the ban are millennials, but primarily it’s Gen Z who are redefining what “luxury actually looks like,” Timothy Derr, partner in Kearney’s consumer and retail practice, told Retail Brew. “And they want to do it in a socially conscious way. Maybe they won’t completely move away from real fur products, but they’re gonna buy them at a secondhand market. So, I think, if anything, it’s gonna increase scarcity for those larger retailers.”

Keep reading here.—JS

        

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DATA

Holiday jeer

A computer decorated for the holidays Francis Scialabba

The months leading up to and during the holiday shopping season are rife with predictions—we’ve provided plenty here at Retail Brew. But it’s worth taking a look back to see how those predictions turned out, and for the most part, they were pretty accurate. But there were some interesting things to take note of.

From Nov. 1 through Dec. 24, holiday retail sales, both in-store and online, were up 7.6% YoY, according to Mastercard Spending Pulse data. Discounting was also slightly more common last year as retailers knew price-sensitive shoppers would shy away from massive purchases.

  • The median order discount percentage for November and December 2022 was up by 2.3% YoY from 20.75% to 21.23%, which shows that despite increased costs, brands were still eager to pass along savings to shoppers, Mike Grillo, VP of marketing at Ampla Technologies, told Retail Brew.
  • In that same period, total revenue for brands under Ampla’s portfolio for at least two shopping seasons were up 18.24% YoY. Plus, non-inflationary growth can be seen by looking at total holiday season orders increasing 22.50%.

“One thing that helped them is less of a reliance on performance media. So if you could save dollars by marketing to existing customers, you can pass along a deeper discount,” Grillo said. “It’s all about the brands making choices this year—what levers can they pull to continue to meet those consumer expectations without eroding their margin too heavily.”

Switch it up: The holiday shopping season was emblematic of a longer-term trend in the industry, whereby merchants are diversifying their channels in order to reach more customers, Grillo said. He added that he believes this is a good thing as it’s cheaper to find customers through new channels.

Keep reading here.—KM

        

FOOD & BEV

Eggcellent news

Six eggs in a carton. Westend61/Getty Images

“Dump your flaxseed and aquafaba: You might be able to afford to bake with actual eggs again soon. Egg prices are finally starting to come down after hitting a record-high average of $5.46 per dozen in December,” writes Morning Brew’s Matty Merritt:

Egg prices saw the highest jump of all grocery items last year (49%).
More than 43 million egg-laying hens died last year due to the worst avian flu outbreak in US history.
While prices are finally trending down, experts cautioned that we won’t be getting bargain eggs again until the avian flu is fully under control.

Read the whole story here on Morning Brew.

        

SWAPPING SKUS

Today’s top retail reads.

A difficult proposition: At the sidelines of India’s rapidly growing economy are delivery drivers tasked with delivering products within a matter of minutes as they muddle through challenging conditions. (the New York Times)

Out of fashion: Once an effective way to monetize their engaged audience, influencer-backed beauty brands are slowly losing their hold. But why? (Vogue Business)

A new wave: Seaweed and algae, touted for their various benefits, may gain mainstream popularity this year as brands increasingly look to incorporate the ingredients in their products. (Thingtesting)

Over there, captain! It’s not a pirate ship, but Sifted’s Top Parcel Shipping Trends for 2023 report. This bad boy has some serious intel on shipping in 2023. Read it here.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Consumer prices dropped across the US in December, offering inflation-pinched Americans some relief.
  • Adidas lost its trademark lawsuit against Thom Browne, first filed in 2021.
  • Tesla is slashing prices across the US and Europe to boost sales.
  • The Chinese government is taking “golden shares” in Alibaba and Tencent to have a larger role in the tech groups.
  • Wendy’s US CFO departed his role, while the company also eliminated the chief commercial officer position in an organizational shake-up.
  • Google Cloud introduced a set of retail-focused artificial intelligence tools.

FRIEND OR FAUX?

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

  1. A New York man ate at 18 Michelin-starred restaurants within 24 hours, setting a world record.
  2. Burger King is giving away a six-month supply of free fries as part of its Frequent Fry’er program.
  3. Starbucks has hired Bradley Cooper as a temporary barista at its Minneapolis location as part of a promotion.
  4. Fans can star in Doritos’s new Super Bowl commercial by sharing a triangle-inspired TikTok dance.

Keep reading for the answer.

FRIEND OR FAUX? ANSWER

While we would love for Bradley to take our pumpkin spice latte order, for now, it’s only a dream. But we did hear Ben Affleck is working at a Dunkin’ if that’s useful?

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Written by Jeena Sharma, Katishi Maake, and Matty Merritt

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