Morning Brew - ☕ Reality check

Sustainability in the metaverse vs. real life.
January 30, 2023

Retail Brew

Yelp

It’s Monday, and just 15 days until Valentine’s Day. If you’re unattached, some good news. Director Adam McKay is auctioning off a prop from Anchorman: the Sex Panther cologne bottle. You’ll recall from the movie that Paul Rudd promised, “Sixty percent of the time, it works every time.” The auction benefits the Climate Emergency Fund—speaking of which, is it getting hot in here?

In today’s edition:

—Jeena Sharma, Erin Cabrey, Andrew Adam Newman

SUSTAINABILITY

Is this real life or is this just fantasy?

An avatar riding a scooter in H&M's game on Roblox H&M

What happens in the metaverse stays in the metaverse—at least when it comes to sustainability. That seems to be the expert take on H&M’s latest circular gaming experience, Loooptopia, that dropped on Roblox earlier this month.

In a nutshell, the game allows users to mix up different fabrics and recycle garments to create unique pieces of clothing…online. H&M is saying it’s their latest push toward being more sustainable, but consumers might call it greenwashing, as the efforts do not extend to their physical range of products.

“I have a mixed view about it,” Marie Driscoll, managing director of luxury and retail at Coresight Research, told Retail Brew. “I’d rather see them address sustainability in the universe, not in the metaverse, but I do think that this is a place where they will engage their next set of consumers…Sustainability may be the hook that will attract the next set of consumers.”

Morning Consult’s brands and marketing reporter, Ellyn Briggs, while agreeing that sustainability is important to consumers—especially younger generations—said that they still want to see the impact of sustainability IRL.

“So manufacturing, product materials—those sorts of tangible tactile aspects of their business—are what consumers believe are the most important parts of sustainability that they should be addressing,” she told us. “When you couple that with the lack of widespread adoption of the metaverse…it’s hard for me to see this moving the needle substantially in any way for H&M.”

Long time coming

This isn’t H&M’s first sustainability foray in the metaverse. The brand has been actively promoting virtual garments and gaming for the past six years. In 2021, H&M tapped actor Maisie Williams as a sustainability ambassador and even had a digital avatar to go along with it. It has also previously dabbled in digital fashion collections.

Keep reading here.—JS

        

TOGETHER WITH YELP

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Yelp

Online reviews are straight-up important. We mean it: 93% of customers read reviews before picking a biz to work with. And when so many are flying your way, you’ll need a master review response strategy that showcases your customer service.

But how? Yelp has the answers. They’re hosting a special webinar to help your biz become an expert at handling online reviews.

In it, Yelp’s very own Emily Washcovick covers:

  • best ways to respond to reviews, both positive and critical
  • how to leverage reviews in marketing
  • real examples and advice from businesses that ace reviews

You can also connect with a Yelp expert 1:1. Schedule a time now.

LABOR

Posting up

DSW storefront Ablokhin/Getty Images

Looks like retail execs, especially CEOs, took the classic “new year, new you” mantra to heart this month, because a ton of chief executives kicked off the year with new roles. Here are the month’s most noteworthy moves:

  • Dollar Tree tapped former Dollar General CEO Rick Dreiling as its new CEO, replacing Mike Witynski, who had been with the retailer since 2010.
  • Capri Holdings announced that Versace COO Cedric Wilmotte will serve as CEO of Michael Kors.
  • LVMH appointed Christian Dior CEO Pietro Beccari as Louis Vuitton CEO. Delphine Arnault, Louis Vuitton’s EVP of product and daughter of LVMH chairman Bernard Arnault, is also reportedly considering taking on a new role.
  • Heyward Donigan, CEO of Rite Aid, stepped down from his position, with board member Elizabeth Burr replacing him in the interim.
  • Stitch Fix CEO Elizabeth Spaulding exited her role amid layoffs that affected 20% of its workforce, with founder Katrina Lake reasumming the top post in the interim.
  • Designer Brands said DSW president Doug Howe will take on the CEO role starting April 1, with current CEO Roger Rawlins staying on as a strategic advisor over the next year.
  • Victoria’s Secret and Pink brand CEO Amy Hauk resigned from her role, effective at the end of March, with Victoria’s Secret & Co. CEO Martin Waters absorbing her role. She took over the Victoria’s Secret CEO role in July, but had served as Pink chief since 2018.
  • John E. Koryl, formerly a digital exec at Canadian Tire Corporation, is joining the TheRealReal as CEO.
  • And while grocer Hy-Vee originally said it planned to have two CEOs, it decided that only one of its named successors—Jeremy Gosch—will serve in the top spot, while the other, Aaron Wiese, will report to Gosch as president.

Keep reading here.—EC

        

SWAPPING SKUS

Today’s top retail reads.

Alternative rock: Lab-grown diamond engagement ring sales are rising, while sales for mined-diamond versions are dropping. (CNN)

Bud wiser: Counterfeit AirPods are fooling consumers, but the latest iPhone software detects them by holding them close to phones. (the Wall Street Journal)

“Truth” in advertising: Vaccine exemption cards, The Kids Guide to Fighting Socialism, and a Trump $2 bill are among the products advertised instead of major brands on Truth Social. “Can you not vet the ads on Truth?” asked one Truth Social user. “I’ve been scammed more than once.” (the New York Times)

Build or buy: We don’t know how much your next choice will cost you, but Recharge does. Weigh upfront costs + hidden expenses for your subscription platform before you commit, right here.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Amazon announced Prime members will have to begin paying a fee for grocery orders unless they’re more than $150.
  • Trader Joe’s workers in a Kentucky store voted to make it the company’s third store to unionize.
  • Walmart unveiled its new store design—which includes new mannequins, brighter lighting, and more colorful displays—at five stores.
  • Nestlé will invest $100 million over the next three years in Columbia toward production and technological operations.
  • Ikea chose its first artist in residence, Annie Leibovitz, who’ll photograph people in their homes in seven countries.
  • Uniqlo unveiled the first designs for its streetwear T-shirt line, UT, under the direction of artist Kosuke Kawamura, who collaborated with skateboarders.

HOT TOPIC

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

Chances are that the HR department at Sheetz hasn’t been grinning quite as much recently, thanks to a recent scoop from Insider about the company’s rules regarding employees’ smiles.

The Pennsylvania-based convenience store chain reportedly has a policy that “applicants with obvious missing, broken, or badly discolored teeth (unrelated to a disability) are not qualified for employment with Sheetz,” according to documents acquired by Insider.

An unnamed former employee told Insider the policy was “really disgusting and kind of classist, especially when the majority of people you’re employing are going to be lower-income.”

Asked to comment on the policy, Nick Ruffner, a public relations manager for Sheetz, told Insider, “Your inquiry has prompted a more specific review to ensure our policies are aligned with Sheetz’s commitment to foster a culture of respect.”

You tell us: Do you think Sheetz should keep its policy that disqualifies employees with “obvious missing, broken, or badly discolored teeth (unrelated to a disability)”? Cast your vote here.

Circling back: Last week, we asked you about fur bans, like the one that took effect in California this month that was the subject of a two-part series by Retail Brew’s Jeena Sharma. Granted, we haven’t met most of you in person, but you’re way more into fur than we might have guessed.

More than half of you (51%) oppose fur bans, while 45.2% are in favor of fur bans and 3.8% of you didn’t know or weren’t sure.—AAN

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

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