Morning Brew - ☕ No chain, no gain

Rothy’s commitment to circularity.
March 08, 2023

Retail Brew

Twilio Segment

It’s Wednesday. Have you been thinking it’s time for a change in your career? Well, it’s never too late to shake things up. The Brew’s Career Mapping toolkit can help you find your way. Buy yours now, and get ready to get back on track for that job of your dreams. And now for something completely different…

In today’s edition:

—Katishi Maake, Erin Cabrey

SUPPLY CHAIN

Chain reaction

Illustration of a factory with a sign that says “cleaner clothes.” Francis Scialabba

When discussing manufacturing in apparel and footwear, you’ve undoubtedly heard the criticism of many jobs being outsourced to China. But that’s definitely not the case for every brand.

In 2021, Rothy’s—which was founded in 2012, launched in 2016, and is known for its environmentally friendly shoes that are made from single-use plastic bottles and other recycled materials—made a commitment to reach circular production and carbon neutrality by the end of 2023. Two years later, and the company is close to reaching that goal with the help of its chief supply-chain officer, Heather Howard, who’s been with the company since 2017. Howard told Retail Brew that the company’s manufacturing process, which uses an entirely vertically integrated model and 3D knitting technology, sets Rothy’s apart in the footwear industry.

Rothy’s owns and operates a vertically integrated facility in Dongguan, China, which works in tandem with the company’s design headquarters in San Francisco. This means that only Rothy’s employees, and no other manufacturers, touch their shoes during production.

  • Howard was brought on in 2017 as VP of operations and people. She held the role of chief operations officer from 2021 to 2022 before taking over as CSCO full time, and now her efforts are focused on ensuring Rothy’s supply chain is as sustainable and efficient as possible.

The vertically integrated manufacturing process was particularly helpful during 2021, when retailers across the board faced supply-chain issues.

  • By using recycled materials for new shoes, costs from buying raw materials and outside suppliers create a more nimble supply chain.

“We’ve also been able to reduce our carbon emissions at the source by working closely with our shipping partner to optimize how we ship and by installing solar panels at the factory,” Howard told Retail Brew.

Keep reading here.—KM

        

TOGETHER WITH TWILIO SEGMENT

Double down on customer engagement

Twilio Segment

Rising customer acquisition costs have led many businesses to invest in an area with a reliable success rate: existing customers.

If you want to keep your current customer base long term, it’s time to double down on your customer engagement strategy. Need pointers to make that happen? Twilio Segment’s timely Customer Engagement Inspiration Guide can help.

Whether you’re a novice or a pro at this stuff, Twilio Segment’s inspo guide outlines 10 actionable ways to start or enhance your customer engagement strategy and explains why customer engagement is vital to your ’23 plans.

Work smarter, not harder. Download the guide here and keep your current peeps pumped.

COMMUNITY

Coworking with Ariel Fortune Dalton

Danone North America SVP of commercial leadership Ariel Fortune Dalton Ariel Fortune Dalton

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

Over her 14+ years with CPG giant Danone, Ariel Fortune Dalton has worked her way up from category analyst to SVP of commercial leadership. Get to know her better below.

How would you describe your job to someone who doesn’t work in retail? I commercialize great ideas, which turn into great activations and products. I work across teams to bring products to the market so you can enjoy them. I also manage a highly passionate and productive team.

One thing we can’t guess about your job from your LinkedIn profile? When people see I work at Danone North America, they often don’t realize the breadth of Danone’s portfolio. We have so many product categories and brands that consumers can purchase anywhere they shop and consume food.

What’s your favorite project you’ve worked on? The development and launch of Horizon Growing Years Milk. Knowing how critical nutrition is for young children, we partnered with pediatricians to identify key nutrients they need as they make the transition to dairy milk around 12 months. While working on this project, I was also expecting my first child, a daughter. She was top of mind for me throughout the entire process.

Which emerging retail trend are you most excited about this year, and why? The rise of e-commerce, specifically the convenience and use of delivery networks like Instacart and Shipt, is a game-changer for my family of five.

Keep reading here.—EC

        

AUTOMATION

Ex machina

A gif of the robotic waiter at Prince Tea House. Dianna “Mick” McDougall

Our monthly theme for March is supply chains, something virtually everyone in retail is talking about these days—and those conversations aren’t likely to end anytime soon. Katishi got us started above (and here, ICYMI), and we’ll have much more throughout the month. But before we get too far ahead of ourselves, we want to take a moment to look back, way back to February, when we explored robots in retail.

Welcome to the machines: What’s the next step in the evolution of automation? Katishi went in search of answers.

Rollin’: “When you navigate to Serve Robotics’s website, it poses an interesting question: ‘Why deliver two-pound burritos in two-ton cars?’” writes Erin. “After briefly wondering if burritos are actually that heavy, you may realize the answer to the actual question lies simply in the fact that there aren’t too many other delivery alternatives.”

Talking back: Conversational AI may bring efficiency and improved customer experience to retail, but the speedy development of chatbots has come with challenges, reports Maeve Allsup.

A bot to be desired: Andrew Adam Newman visited Prince Tea House in New York’s Chinatown, and met Bella, a robot server that brings your food and even sings “Happy Birthday.”

Artificially intelligent design: Jeena Sharma writes that “the robots are coming for fashion,” and details how innovations in the cutting, designing, and sewing process could disrupt the industry.

TOGETHER WITH SHOGUN

Shogun

Stick the landing. Customers tend to judge a landing page by its cover. So let ’em see yours at its best with Shogun’s optimized webpage-building capabilities for Shopify and BigCommerce. Start immediately with 70+ ready-made page templates, optimize with analytics, and create high-converting, high-quality shopping experiences. Start for free.

SWAPPING SKUS

Today’s top retail reads.

Bubbling up: For the past three years, Bud Light Seltzer has faced a major branding problem: a lot of people thinking the product contains actual beer. A new ad campaign hopes to fix that. (CNN)

A Penney earned: Checking in on the finances of privately held JCPenney, as filings show the company may be struggling. (Retail Dive)

Scrubbing in: Soap brand Dr. Bronner’s is cutting back its plastic use in creative ways, like turning to a beverage distributor to put bulk liquid soap in kegs to be delivered to retailers. (New Hope Network)

Inquiring minds: Want to know more about the worlds of science, history, travel, and tech? Check out Curiosity Stream and browse the deepest collection of the best documentaries ever. Start watching with 25% off.* 

*This is sponsored advertising content.

Dine with retail pros in the Big

Dine with retail pros in the Big

Want to take your relationship with Retail Brew to the next level? Throughout the year, we will gather fellow retail leaders for discussion and dinner in NYC.

Apply now for a chance to partake in an evening of conversation about the most pressing issues retailers face today—oh, and some great food .

Apply here.

WHAT ELSE IS BREWING

  • Starbucks interim CEO Howard Schultz agreed to testify before a US Senate committee regarding its labor practices.
  • Shein will raise $2 million in new funding this month ahead of an IPO in the US this year, per Reuters.
  • Adidas reported losses in Q4 following its split with the Yeezy brand, calling 2023 a “transition year.”
  • Hershey introduced alt-dairy-based Reese’s Peanut Butter Cups and Hershey’s bars.
  • Dick Sporting Goods’s same-store sales rose 5.3% in Q4, beating analyst expectations.
  • Claire’s opened its first European flagship store in Paris.

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Written by Katishi Maake and Erin Cabrey

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