Morning Brew - ☕ Seismic thrift

Thrift shops in the age of resale.
April 12, 2023

Retail Brew

Zendesk

Good afternoon. Retail moves fast, and when you’re moving fast, it’s easy to make hasty decisions. But you can find solid footing with the right data. Our Data Storytelling course will ensure you and your team are focused on what matters most. Secure your seat now.

In today’s edition:

—Katishi Maake, Erin Cabrey

RESALE

The old guard

Goodwill art Francis Scialabba

If you waltz into Thrift NYC’s East Village shop on a Saturday afternoon, you’ll see a herd of people bustling about and vibing to some classic rock.

The thrift store, which opened in 2021, is a place where New Yorkers (and transplants) can show off their sense of style, and owner Michael Aylward intended it to be that way. Since coming onto the scene, Thrift NYC has opened two shops and has a third location opening on West 14th on Wednesday.

While it might be intuitive that an influx of retailers integrating resale into their operations would hamper thrift stores, Aylward told Retail Brew that the exact opposite is true. Last year, 88 new brands launched resale platforms, according to ThredUp’s latest resale report. Aylward said the growth and increased competition is only helpful for his business.

“People are really looking for quality pieces that are going to last, and with fast fashion, you don’t get that. You have to throw it out after a year,” Aylward told Retail Brew. “Resellers coming in to sell online and looking for stuff—that’s only helping business.”

Thrift NYC is currently moving 150,000 pounds of thrifted clothes per year, and Aylward predicts that will only grow. The company sources from across the world, and its most popular products right now are Carhartt and vintage Levi’s jeans, Aylward said.

“All these people come in and they don’t want to really go shopping at a corporate store like H&M,” he said. “I’ve noticed they prefer going to a vintage shop or a thrift shop and being able to pick out a more unique selection of stuff.”

Keep reading here.—KM

     

TOGETHER WITH ZENDESK

You can’t spell “retail” without “AI”

Zendesk

Okay, who slammed the reset button on the retail landscape? Hypercompetitive markets, wild innovations in e-commerce tech, and a new gen with hard-to-pin-down tastes. Retailers need some backup when it comes to reaching consumers these days.

Fortunately, Zendesk has the secret sauce—a little thing called AI. And get this: They’re hosting a webinar with AWS that’ll spill the deets on how retailers can leverage it to deliver conversational service at scale, all while optimizing every aspect of commerce.

Curious about what exactly is in this bad boy? You’ll learn how AI can help retailers:

  • deliver conversational service at scale
  • boost agent productivity and engagement
  • drive operational efficiencies

Don’t fall behind. Get a leg up on the new retail game.

FOOD & BEV

Buzzing in

Cann beverages Cann

Cannabis beverage maker Cann is cracking open a new market, entering New York retailers for the first time this month as recreational cannabis retailers begin to open up in the state following legalization in 2021.

New York is the seventh state where Cann’s social tonics, containing 2 mg of THC and 4 mg of CBD, have entered retail since its debut in 2019. Its cannabis-derived bevs will hit dispensaries like MedMen and the newly opened Union Square Travel Agency this month, while its hemp-derived products will hit bodegas and specialty shops like The Alchemist Kitchen and Blue Star Deli.

  • We know, we know, these laws are very confusing. To clarify: In New York, products containing marijuana-derived THC can only be sold in dispensaries, while other retailers can apply for hemp licenses to carry products containing hemp-derived THC. Cann makes both versions of its product to comply with laws like these, Cann co-founder Jake Bullock explained.

Bullock told us that the brand looked for retail partners that are “really collaborative” and “open [and] interested in the growth of the industry.” While early in a cannabis market, dispensaries may focus mostly on flower and concentrates (used in vape pens), retailers educating consumers on micro-dosed products offers an entry point for new consumers, he noted.

“You can only sell so much strong weed to high-tolerance consumers for so long, right?” he said. “The growth really comes from that mainstream consumer that's not even thinking about cannabis.”

Keep reading here.—EC

     

COMMUNITY

Coworking with Kara Watada

Kara Watada Kara Watada

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

After several years focusing on new business models for VF Corporation, owner of brands like The North Face and Timberland, Kara Watada brought her outdoor gear expertise to retailer Out&Back Outdoor, joining as its head of growth 2020.

How would you describe your job to someone who doesn’t work in retail? I get to figure out who would benefit from our company, how and where to connect with them, and lastly, make sure they have a great experience once they officially interact with our company.

One thing we can’t guess about your job from your LinkedIn profile? Everything is a team effort at Out&Back. There are times when our quality and assurance and fulfillment teams need assistance, therefore, I jump to help. Yep, that means I set up tents to ensure they are accurately condition-graded; inspect inventory once it’s been cleaned and repaired; and even pick, pack, and ship orders to customers! I love that our team is involved in every aspect of our business. It makes it fun and creates a general respect for everyone and their role within the organization.

What’s your favorite project you’ve worked on? Early on, during the initial development of our business, we conducted quantitative and qualitative research to understand customer behavior and identify the ideal target consumer for Out&Back. As an output of this research, defining our target personas was really interesting and fun. Plus, it allowed us to better design and test campaigns against these personas, which I always love doing.

Keep reading here.—EC

     

SWAPPING SKUS

Today’s top retail reads.

A mall world: Mall owner Macerich is shifting more and more of its portfolio to non-traditional use spaces like hotels, museums, and fitness centers to keep up with the impact of online shopping on the shopping-center industry. (WWD)

New material: Stacy Flynn is co-founder and CEO of sustainable textile company Evrnu. Debuting in 2014, the company created a regenerative fiber produced from cotton waste, now used by brands like Levi’s, Stella McCartney, and Zara. But Flynn was a “reluctant entrepreneur.” (Inc.)

Price is right: Resale clothing shoppers are favoring more affordable brands like Madewell and Urban Outfitters over luxury labels. (CNN)

WHAT ELSE IS BREWING

  • US consumer prices fell for the ninth consecutive month in March, per the Consumer Price Index.
  • Albertsons sales rose 5% in Q4, but higher prices and a drop-off in Covid vaccinations at its pharmacy business ate at its margins.
  • Walmart will close four underperforming stores in Chicago, saying its eight Chicago stores have collectively not been profitable since the first opened 17 years ago.
  • Chipotle unveiled a new sustainable restaurant design.
  • Nike Air Jordan 13 sneakers worn by Michael Jordan during the 1998 NBA Finals sold for $2.2 million, Sotheby’s said.

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Written by Katishi Maake and Erin Cabrey

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