Morning Brew - ☕ Diamond in the ruff

How MySimplePetLab turned diagnostic testing into a retail biz.
May 18, 2023

Retail Brew

It's almost Friday. You asked, and we delivered. If you missed our best-selling Financial Forecasting course, we’re bringing it back for a third time. Secure your seat now for our best-selling course now and learn how to build a budget that will make your retail business succeed (and impress your boss while you’re at it!).

In today’s edition:

—Andrew Adam Newman, Erin Cabrey, Maeve Allsup

RETAIL

Ruffing it

An array of MySimplePetLab kits for dog ailments. MySimplePetLab

Lab tests that reveal whether or not your dachshund Buster has ringworm have historically been far removed from consumers. Your vet asks for a stool sample, which you awkwardly procure from Buster and deliver to the office, and the vet orders the test and bills you.

But a startup, MySimplePetLab, is out to change all that. It sells test kits for dogs and cats directly to consumers from its own website, or online through Amazon or Walmart. They retail for $100. After users send in samples (tests for problem ears and skin involve swabbing), the company emails the results to both pet owners and their vets.

Now MySimplePetLab, which began in 2019, is expanding, with care kits that treat ailments rather than diagnose them. Packaged in zippered nylon bags that resemble Dopp kits, they contain multiple products to address a single issue, like irritated ears, itchy skin, or diarrhea. The company said it will launch the care kits, which retail for $40, on Target’s website within 30 days, with plans to stock them at more than 500 Target locations in the fall. The care kits are just for dogs, but the company said it plans to introduce cat kits—not to be confused with Kit Kats—in the future.

The products are rolling out amid a surge in pet ownership and a shortage of veterinarians.

Keep reading here.—AAN

     

FROM THE CREW

Your brand meets our Brewniverse

The Crew

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Wanna tap into our unique community of young, hard-to-reach readers (who, btw, are 1.7x more likely to have a household income of $150k+)?

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Our content is smart, never boring, and easy to access, and our audience trusts us to deliver what they need in a way that feels authentic. Picture your brand woven into all that potential. Sound exciting? We think so too.

Work with us.

SOCIAL MEDIA

Tok of the town: Water mark

Waterboy Waterboy

We spend more time on TikTok than we’d like to admit, so we’re putting our excessive screen time to use by spotlighting the emerging brands and intriguing trends crossing our FYPs.

Waterboy’s journey to TikTok virality began like many people’s average day ends: pulling up to your house and grabbing the mail. Except before co-founder Mike Xhaxho got out of his car that day in 2021, he decided to film a TikTok (his first ever) introducing consumers to his new beverage brand.

That video led to ~18k presale sign-ups and $65k in sales, and has garnered more than 189k views for the brand, which produces a zero-sugar hydration stick pack centered around “weekend recovery” that’s formulated with vitamins, ginger, and exactly 3,187 mg of electrolytes.

Waterboy was founded by Xhaxho and Connor Saeli (who some might remember from The Bachelor and Bachelor in Paradise) and has bootstrapped its way to $10 million in sales in two years, with its TikTok presence allowing Waterboy to “turn the brand into an influencer,” Saeli said. The brand spent nothing on acquisition costs for the first six to nine months in business, Xhaxho added, and has amassed more than 116k followers on the platform, with four full-time employees.

Keep reading here.—EC

     

TECH

In search

Google logo with binary code and ai elements
Francis Scialabba

“One of the key use cases Google is testing for [AI-powered tool Search Generative Experience] is shopping, which Senior Director of Product for Consumer Shopping Lilian Rincon described as one of the company’s ‘hero verticals for search,’ with over a billion sessions daily,” Tech Brew’s Maeve Allsup wrote:

SGE is most useful for what Rincon called “complex purchases”—those that may require more consideration, like a bike, for example. In the future, a “more advanced iteration” could help shoppers in apparel, which is one of Google’s most-searched shopping categories, she added.

Read the whole story here on Tech Brew.

     

SPONSORED BY MANHATTAN ASSOCIATES

Manhattan Associates

Meet ’em where they are. Get to know your retail customers with insights from Manhattan Associates’ 2023 Unified Commerce Benchmark for Specialty Retail. Using real data from purchases and returns, this is your guide through the customer journey—from search and discovery to checkout and fulfillment. Learn what leaders do to differentiate.

SWAPPING SKUS

Today’s top retail reads.

Chow down: One of the best parts of adulthood is being able to eat whatever you want without pushback from your parents. Millennials and Gen Zers have taken this to heart, substituting products widely considered snacks for full meals. Now it’s a $181 billion industry. (Fortune)

Bottom dollar: Two activist investment firms are urging Dollar General and Dollar Tree shareholders to approve resolutions that would improve working conditions for employees. (CNBC)

Four walls down: If you didn’t realize, Trader Joe’s doesn’t sell online or offer delivery. In its latest podcast episode, the company explains why it sees its brick-and-mortar strategy as the right way to build and maintain its brand (Trader Joe’s)

Mind support: Prescription meds aren’t your only option—Thesis helps thousands of people support cognitive function with natural adaptogens. Reclaim your attention, feel motivated, and meet your full potential with Thesis. Save 15% with code 15BREW.*

Meet the CXperts: How does natural language processing help retailers gain a more comprehensive look at CX, especially in this competitive market? Retail Brew dives into the deets. Sponsored by Square.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Walmart saw a sales boost in the latest quarter and grew its grocery market share.
  • Alibaba announced plans to spin off its cloud division as a separate, publicly traded company, while the e-commerce titan’s quarterly revenue missed expectations.
  • Yum Brands is facing several class-action lawsuits brought by employees over a January ransomware attack.
  • TJX slightly missed earnings expectations.

NUMBERS GAME

The numbers you need to know.

We all (maybe) have been ghosted by a potential partner, but new data suggests this happens in the retail world too.

An audit of 588 retailers found that brands disregard 54% of questions and feedback on average from online and social platforms, according to marketing tech firm Soci.

  • The report uncovered that 92% of questions posted on retailers’ Google profiles go unanswered.
  • The types of questions are also fairly straightforward, such as “Are you open late on Christmas Eve?” or “Do you sell golf equipment?”

The real gut punch for retailers is that ignoring these questions collectively costs them $2.4 billion in sales per year, according to Soci. The analysis found that multi-location retailers are losing $58,000 in sales per location.

“Retailer ‘ghosting’ is an alarming phenomenon with serious implications for brand reputation, customer loyalty, and online visibility,” Monica Ho, CMO of Soci, said in a statement. “When retailers ignore their customers online, they inadvertently send a message that the customer experience isn’t a priority. It’s akin to retail employees ignoring shoppers in-store, and this type of behavior has a significant impact on revenue and sales.”

On the other hand, Soci found that “responsive, visible retailers” almost doubled their YoY revenue and saw 149% more social media engagement.

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Written by Andrew Adam Newman, Erin Cabrey, and Maeve Allsup

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