We all know inflation continues to be a top-of-mind concern for retailers and consumers alike, and also that consumers continue to shop despite rising prices.

But what are these consumers shopping for and what sort of luxuries have they done away with for the time being? It’s clear that while some retailers are still struggling, it does not spell bad news for every category within retail, especially luxury and fashion.

However, a very plausible recession still seems to be in sight, so nothing’s certain, which is why even luxury retailers need to be aware of what consumers want.

Well, worry not, Square and Afterpay data in the US dove into the data to unpack what strategies retailers should be employing and how they should be targeting shoppers to keep them engaged, as part of their latest State of Retail report.

The report is based on data from the first quarter of 2023, and we broke it all down for ya (you’re welcome!).

All that glitters is…probably bought with BNPL

Yes, consumers are shopping, but a lot of them are paying it off later. Yep, still. Of course much of this demand for buy now, pay later is coming from young shoppers with a taste for all things luxury. Big surprise there!

In fact, Afterpay noted that the number of designer merchants on the Afterpay shopping app doubled between 2021 and Q1 2023. millennials accounted for 45% of luxury purchases on the platform, while Gen Z made up 16% (up from 13% in 2019), over the last 12 months ending March 31, 2023.

Keep reading here.—JS

With Q3 upon us, it’s time to review the year (so far) in retail. Set yourself up for success in the back half of 2023 and beef up your industry knowledge with these resources from Placer.ai.

Here are three reports you don’t want to miss:

• The Q2 2023 Quarterly Index shows how the Fitness, Car Wash, Discount & Dollar Store, Grocery, Dining, Superstore, and Mall categories performed in Q2 2023.
• Uncovering Behaviors and Characteristics of Today’s Consumer is where Placer.ai explores changing in-store shopping habits, reactions to rising prices, and other insights to help retailers cater to their core customers.
• Retail at the Halfway Point is your 2023 guidebook. Reflect on how shoppers have changed, which retail sectors made the most impact, and how to prep for the end of the year.

A Massachusetts man claims he was misled about the flushable wipes he purchased.

And he’s not going to take it sitting down.

Mark Schotte, who lives in Beverly, filed a suit in US District Court against Stop & Shop, claiming that “the Wipes are not flushable, in that they do not break apart or disperse in a reasonable period of time after flushing, resulting in clogs or other sewage damage.”

The suit, which was featured on a Consumer World website, does not detail any damage to the plaintiff’s plumbing. Rather, it claims the packaging is “false and misleading” because it uses the word “flushable” prominently on the front while in small print on the back listing numerous cases in which the wipes should not be flushed down the toilet—including if doing so “violates local rules”; the toilet is in an RV, boat, or plane; if fat or grease are put in any drain in the home; and if “you are unsure of system capability.” And that disclaimer, the suit continues, is partially obscured by a white flap on the bottom seam of the packaging.

Asked for a comment, Caroline Medeiros, Stop & Shop’s external communications manager, wrote in an email that the company “does not comment on active litigation.”

It’s a putative class-action lawsuit, meaning attorneys are seeking other plaintiffs to join it. It seeks damages for all plaintiffs of at least $25 for purchasing the product or “actual damages” to any plumbing systems.

Flush to judgment: It is not, by a long shot, the only instance when wipes have been the butt of criticism.

Keep reading here.—AAN

“Shai Eisenman had long struggled with acne before founding Bubble, a skin-care company positioned as an affordable alternative to legacy brands that’s targeted toward Gen Z. The brand, which came out in 2020, attracted pre-seed funding from multiple fashion, beauty, and wellness VC investors, has gained more than 1 million followers on TikTok, and, according to Eisenman, gets tagged on TikTok 14,000 times a day. Bubble, which is sold at Walmart, CVS, and Ulta, has experienced 500% retail sales growth year over year,” writes Marketing Brew’s Jasmine Sheena:

Its marketing has been almost entirely organic: Bubble’s growth, Eisenman explained, has partly been fueled by its presence on Geneva, a group-chat app with a strong Gen Z user base that’s been compared to platforms like Slack and Discord.

Read the whole story here on Marketing Brew.

Today’s top retail reads.

Well, well, well: For the past two years, economists have been warning of the potential of an economic downturn, but now are changing their tune, and retail consumer spending is largely to thank. (Insider)

Cleaning house: If you remember, household cleaners were one of the early pandemic winners, but three years later, Lysol is taking a whole new approach to research and development. (Modern Retail)

Brand name: As Macy’s struggles with declining sales and stock numbers, the department store chain plans to lean more heavily on private-label brands after more than two years of customer research. (CNBC)

Are you an exec looking to make your next move? We’ve partnered with Exec Thread, the platform with confidential jobs for those who need more than a standard job board. Check out roles like:

• VP of Supply Chain in the food & beverage industry
• Head of E-Commerce at an apparel & fashion company
• Chief Manufacturing Officer in packaging & delivery

The numbers you need to know.

Pretty much every consumer has dealt with a late, lost, or damaged package. Supply chain disruptions peaked in 2021 and, for the most part, have improved, but that doesn’t mean shoppers still don’t have trust issues.

A Deloitte survey recently found that suppliers vastly overestimate consumer trust in supply chains. The data shows that executives from leading suppliers overestimate that trust by as much as 25% when it comes to reliability. (On average, the gap when it comes to overall trust is 20%.)

• But these suppliers still acknowledge that supply-chain issues, although improved, still  persist: 77% of executives said they have experienced “an adverse supply chain event” in the past year, and 44% predict more volatility in the next two years.
• Among the chief concerns for suppliers are price volatility (46%), market instability/inflation (44%), and materials shortages (42%).

“Trusted relationships are often critical to supply chain performance,” the report reads. “However, while trust is deemed important in boardrooms and in the C-suite, insufficient attention is often being paid to this topic today.”

The top suppliers, per Deloitte, prioritize trust indicators such as reliability and predictability of their supply chains and were 2.5x more likely to have reached a 15% higher annual growth rate over the past year.

• Also, they were 1.6x more likely to report being resilient against shocks to their supply chain.

“C-suite executives should maintain and grow trust in their supply chain to help mitigate operational risk, improve resilience, protect the brand, make strategic decisions, and enable growth,” the report said. “When trust is impaired, the damage usually cascades across the business ecosystem.”