New laws allow recreational cannabis sales in more than 20 states, but it remains illegal under federal law, making starting a retail cannabis business complicated. This is Part 5 of a series, Spliff & Mortar.

Hollywood’s most famous cannabis connoisseurs—from Cheech & Chong, to Jeff “The Dude” Lebowski, to Harold and Kumar—tend to be men, but the reality today is that women may be just as likely to partake:

• Among adults 19–30, 42.1% of women reported having used marijuana in the last 12 months, just shy of the 43.4% of men who had, according to a 2020 study by the University of Michigan Institute for Social Research cited by The Hill.

So, Jeff Spicoli, put that in your pipe and smoke it.

But not just any pipe. While the legal cannabis industry is dominated by men, with a 2021 MJBizDaily report revealing only 19.9% of US cannabis-business owners are women, some women-owned companies are making cannabis accessories that are modern and chic.

House of Puff

House of Puff was founded by Kristina Lopez Adduci in 2018 after she decided to try cannabis for anxiety issues—and her boyfriend (now husband) broke out his bong.

“She immediately loved the experience of cannabis as far as how it relieved anxiety and made her feel much better,” Holly Hager, principal and COO at House of Puff, told Retail Brew. “But she hated that bong. It was phallic—it looked like something that a 16-year-old boy would have.”

Adduci, who also is the co-founder of arts platform Art Zealous, shopped for something more to her taste but was disappointed. So she commissioned a ceramicist to make a one-hitter, and the pipe would end up being what Hager called “the hero product,” Le Pipe, that launched the House of Puff brand.

Keep reading here.—AAN

And so are all your brick-and-mortar shoppers. If you’re looking for direction on how to get the most out of your foot traffic using retail media networks, look no further.

Placer.ai has been tapping into location intelligence on brick-and-mortar retail consumers—and they put their knowledge into this white paper to answer questions like:

• Is foot-traffic data relevant for online-only retail media networks?
• How can location intelligence provide visibility into hyperlocal consumer preferences?
• Why should retailers look at weekly and hourly visitation patterns to price ads?

Don’t get lost in the wrong info. Check out this white paper to map out what data you need, what that data means, and how that data can help you unlock the full potential of retail media networks.

ICYMI, the country’s two largest supermarket chains unveiled plans to merge last year through a deal valued at a cool $24.6 billion in an effort to compete against giants like Walmart and Amazon. The deal is expected to close in 2024, if the megamerger can withstand recent vocal opposition from union groups and consumers and, of course, inquiries from the Federal Trade Commission (FTC).

This month, local unions of the United Food and Commercial Workers, representing 100,000+ Kroger and Albertsons workers, held protests across 12 states and the District of Columbia in opposition to the merger. The protests were part of the Stop the Merger coalition, consisting of 100+ organizations, formed last month. The coalition has called on the FTC to block the merger, which it believes would lead to higher prices, lost jobs, and farmers and suppliers being “unable to sell their products,” according to its website.

The deal is also facing consumer pushback: A group of 25 consumers across 11 states filed a lawsuit in February, saying the merger violates antitrust law. Kroger last week filed a motion for dismissal, saying the suit was void of “real-world facts.” A hearing is scheduled for May 18.

Though Albertsons and Kroger have said they may have to divest some stores as part of the deal, Kroger CEO Rodney McMullen said in a Senate subcommittee hearing last year that Kroger and Albertsons have no plans to close any stores or lay off frontline workers and aim to invest in lower grocery prices.

Keep reading here.—EC

Bonobos started in 2007 with the promise of combating what co-founder Andy Dunn called “khaki diaper butt” with better-fitting pants, and a 2009 ad in Men’s Journal proclaimed, “Here’s your chance to tell women, ‘Hey, my eyes are up here.’”

Now it’s the backside of Bonobos itself that Walmart is looking at, after unloading the company for a fraction of what it paid in 2017.

• Walmart is selling Bonobos to Express and WHP Global for just $75 million, after paying $310 million nearly six years ago.

Bonobos is just the latest e-commerce acquisition that Walmart has sold in recent years, following Moosejaw, Bare Necessities, ModCloth, Jet.com, and Shoes.com.

One takeaway: In 2022’s The Metail Economy, retail consultant Joel Bines argues that businesses must put consumers at the center of their strategy, and he told Retail Brew that “Walmart’s value proposition” has generally met that standard, with an overall message that, “You will save more money by shopping with us than any other retailer.”

Expanding its e-commerce footprint by purchasing popular online retailers may have seemed like a sound strategy to Walmart to expand its e-commerce footprint and make it more competitive with Amazon, but to Bines, it never made sense for the store’s customers.

Keep reading here.—AAN

Today’s top retail reads.

HQ-blues: Amazon’s HQ2 kicked off well before Covid, but the pandemic threw a wrench in its plans for a development that would reinvigorate Northern Virginia’s Crystal City neighborhood and the Greater Washington, DC, region broadly. Starting in June, thousands of employees will be required to work out of the office three days a week. (the Washington Post)

Fast and curious: In February, Chick-fil-A opened a rest-stop-like space in NYC’s Upper East Side where delivery drivers could take a break while on the job, but last Thursday, it closed. Now there’s a spotlight on the numerous logistical challenges delivery drivers face in the city. (the New York Times)

Food for fraught: Proposed legislation would require some NYC restaurants to offer customers reusable food packaging and utensils, but some say the requirement for customers to return those items would be a bigger headache than its worth. (the Wall Street Journal)

Learn to lead: To succeed in retail, a great leader is key. And right now, the question to ask is, “Why not me?” Apply to our Leadership Accelerator and prepare to take your team in the direction of success.

The numbers you need to know.

Beauty brands shouldn’t expect younger shoppers to immediately jump on their most expensive products. To get in with the cool kids, turns out you gotta play hard to get—at least with what you’re selling.

ESW’s Global Voices Study revealed that two-thirds of Millennials and Gen Zers are willing to risk beauty products going out of stock in anticipation of lower prices in the future. The study defines “power shoppers” as those who spend at least $2,500 online annually on beauty products, and found almost 40% of them are bargain hunters.

• The most dedicated shoppers best respond to exclusive product launches where scarcity pulls them in. Those shoppers are more likely to dish out the full price if they can get their hands on it first (21%) or they’ll be the only ones to have it (25%).

“Younger consumers are driving the growth in the direct-to-consumer beauty market, yet despite their spending power, they remain very price-conscious,” Clarissa Schealer, ESW’s VP of sales, beauty, wellness, and lifestyle brands, said in a statement.

And young beauty shoppers know no bounds or borders. The study found that 24% of Millennials and 23% Gen Zers have made cross-border beauty purchases within the past year.

The study also found that Millennial and Gen Z consumers are more likely to shop across international borders for their beauty products. Nearly a quarter each of Gen Z (23%) and Millennial shoppers (24%) made beauty purchases cross-border within the last 12 months.

• The most popular countries to shop from included the United States (33%), France (33%), Germany (27%), and the United Kingdom (25%).

Catch up on the Retail Brew stories you may have missed.

• Should fashion retailers still be launching resale platforms?
• How Walmart builds artificial intelligence tools
• Hoka looks to grow wholesale after fortifying DTC