Morning Brew - ☕ Patently clear

Lovesac’s patents and omnichannel approach.
May 01, 2023

Retail Brew

Hello! Got any big shopping or dinner plans this week? Perhaps both. If so, might we suggest heading to Panera? Let us explain. It seems like the restaurant chain is launching its own online merchandise shop and if you’re a fan of the establishment’s famous sandwiches and its viral “BAGuette Bag,” you’re in for a treat. Dubbed “carb couture,” The Panera Shop will be selling everything from mac-and-cheese tracksuits to Panera-inspired toddler onesies. Anyway, happy shopping and happy eating!

In today’s edition:

—Katishi Maake, Maeve Allsup

STRATEGY

In the sack

Lovesac's Sactional couch Lovesac

In 1882, New Jersey inventor Samuel S. Applegate filed a patent for an alarm clock that would literally rain down wooden blocks to wake a person up, noting that “these cause pain.” Of course, Applegate could never have imagined the psychological pain the iPhone’s default alarm sound would one day cause.

In an age when innovation sets services and products apart, filing patents is a way companies try to preemptively get out ahead of their competition.

But sometimes patents can actually elevate an existing product. That’s at least how Lovesac looks to grow, CEO Shawn Nelson told Retail Brew. The home and furniture retailer also bills itself as a technology company because of the 40+ patents it holds for tech that is or will be integrated into its products, said Nelson.

  • Lovesac introduced StealthTech Sound + Charging System in 2021 which integrates a surround-sound, home theater into the company’s flagship Sactionals couches.
  • Sactionals were introduced in 2008 and are one of Lovesac’s most popular products, driving 90% of sales, Nelson said.

“These inventions that are patented…they’ll keep coming. We have decades of them to come,” Nelson said.

Keep reading here.—KM

     

FROM THE CREW

Unlock the power of your resume

The Crew

Ready to land your dream job? It all starts with a killer resume. But crafting one that truly stands out can be a daunting task. That’s why we’ve created the ultimate guide to building a strong and effective resume.

Our report is jam-packed with practical tips and real-world examples to help you craft a resume that will impress even the toughest hiring managers. We’ll show you how to highlight your skills and experience in a way that makes you stand out from the crowd. So if you’re ready to take your career to the next level, download your copy today.

TECH

Tech savvy

A man tests our a virtual reality headset. Josep Lago/Getty Images

Between Web3, the metaverse, and artificial intelligence, the retail world is committed to experimenting with emerging technologies.

Here are some of the industry’s most interesting, surprising, and notable retail experiments with emerging technology from April 2023:

Starbucks released its second collection of NFTs to beta users of its Web3 loyalty program, Starbucks Odyssey, on April 19. The “Starbucks First Store Collection” included 5,000 “stamps” (what Odyssey calls NFTs) featuring images that commemorate the first Starbucks store: 1912 Pike Place. Also in April, Starbucks unveiled a tiered rewards system for Odyssey members, which parallels the chain’s original points system.

American Eagle announced its new resale site, RE/AE in partnership with ThredUp, alongside an augmented reality experience in Snapchat, powered by the social media platform’s updated business tools (also announced in April). RE/AE shoppers can use Snapchat to browse a virtual store and try on 200 items from a curated collection, all through an American Eagle “shopping lens” (augmented reality experiences that users can see in the Snapchat camera).

Keep reading here.—MA

     

EVENTS

Pet project

shopping cart with Amazon logo Francis Scialabba

Cue the Justin Timberlake meme; it’s gonna be May. In fact, it is May. Let’s dive into what’s going on in the retail world this week.

In sales: Amazon will host its second annual Pet Day event on Tuesday and Wednesday. It’s similar to Prime Day but strictly for pet products, in celebration of National Pet Month.

In earnings: On Thursday, Apple will release its earnings, and there will be much to discuss. Recently, the company announced its high-yield savings account with a 4.15% interest rate. That came shortly after Apple finally threw its hat into the buy now, pay later ring.

Also on Thursday, Anheuser-Busch will host its quarterly earnings call.

In holidays: Cinco de Mayo is this week, which means the avocado industry should see a boost in sales. And in the lead-up to Cinco de Mayo, shoppers spend 1.9x more on groceries when they also purchase avocados, according to a Numerator Basket Affinity Report.

Keep reading here.—KM

     

TOGETHER WITH ZENDESK

Zendesk

Obsessed with customers? It’s officially time to focus on the next season of customer service. So register for Zendesk’s flagship keynote at 8:30am PST on May 10 and hear about the future of AI from Zendesk’s POV. Get perspective and know-how that’ll help you reach customers—and level up your biz.

SWAPPING SKUS

Today’s top retail reads.

Ripple effect: Fashion production hubs in Turkey are still reeling from the aftermath of the devastating earthquake in February. But with flexible contracts and consistent support, brands can slowly help keep things going. (Vogue Business)

Game plan: Adidas is looking to sports like soccer and basketball to boost its US business, as it recovers from its troubles with its Yeezy collaboration. (the Wall Street Journal)

Incoming: A looming shortage of white oak could create hurdles for the bourbon supply chain in the coming years. (Bloomberg)

Retail revamp: Manhattan Associates’ Unified Commerce Benchmark for Specialty Retail offers one-of-a-kind insights into retailers’ capabilities with search and discovery, cart and checkout, promising and fulfillment, and lots more. See how industry leaders leverage them.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Adidas is facing a lawsuit filed by investors over the sportswear giant’s Ye deal.
  • Subway shuttered 2.7% of its storefronts last year as it entertains a $10 billion sale.
  • Superdry is reportedly in advanced talks to raise 15 million pounds ($18.9 million) by selling shares.
  • French police are searching for the suspects in an armed robbery at the Bulgari store in Paris.
  • Fondation Louis Vuitton was targeted by environmental activists who used fire extinguishers and paint bombs on the facade of the museum.

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.

After Bed Bath & Beyond filed for bankruptcy, it announced it would no longer accept the 20% off coupons for which it was so famous, prompting The Container Store and Big Lots to announce that they’d honor the coupons.

You tell us: What’s your history with Bed Bath & Beyond’s 20% off coupon? Cast your vote here.

Circling back: Last week, we noted a recent New York Times story that revealed more restaurants and cafes are allowing dogs inside and featuring menu items just for them. We asked whether or not you had a dog, and what you thought about going to restaurants that allow them. Among those of you who don’t have dogs, 39.2% said they don’t belong in restaurants and you wouldn’t go to one, and 8.3% said it sounds like fun and you’d go. Among dog owners, 32.9% of you said you’d go to a dog-friendly restaurant, and 19.2% said dogs don’t belong in restaurants and you wouldn’t go. Just 0.4% of you didn’t know or weren’t sure.

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Written by Katishi Maake and Maeve Allsup

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