It’s Tuesday, and the retail beat is seeing some big moves in the food space. Aldi announced it’s acquiring 400 stores from two different regional supermarket chains in the southern US. Instacart is reportedly going public after previous failed attempts, and a private equity firm is about to buy Subway after a prolonged and heated auction.
It’s a transformative time, and the current deck of big box stores, discounters, national chains, and digital-first brands is getting a heavy-handed shuffle.
In today’s edition:
—Andrew Adam Newman, Alex Vuocolo, Jasmine Sheena
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Hellmann’s
In 2021, Will Levis—who, at the time, was the quarterback for the University of Kentucky—posted a video on his TikTok, which has ~163,000 followers, with this description: “I have a very sophisticated pallet [sic].”
In the video, Levis is at a diner and squirts a stream of mayonnaise into his coffee, stirs it, and takes a sip.
The video garnered more than 983,000 views, and while Levis noted in a video posted on the NFL’s TikTok account in March that although mayo in coffee “didn’t taste half bad,” he’d done it only as a joke and usually takes his coffee with almond milk and stevia.
Now Hellmann’s, the mayonnaise brand owned by Unilever, is getting in on the joke. It’s hired Levis, who now plays for the Tennessee Titans, as a brand ambassador and is featuring the quarterback in a video where he talks about Hellmann’s promising him a lifetime supply of mayonnaise.
And while adding mayo to coffee might not seem much less appealing than Starbucks rolling out olive oil-infused coffee drinks, Hellmann’s told Retail Brew this effort is less of a serving suggestion than a pointed joke about mayonnaise being more than a spread.
“Do we expect people to put mayonnaise in their coffee?” Chris Symmes, marketing director for dressings and condiments at Unilever Nutrition North America, asked. “Absolutely not. The point here is: How we can inspire people to think about mayonnaise–and Hellmann’s–beyond just as a condiment as something you put on your turkey sandwich or your hamburger?”
Keep reading here.—AAN
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Sundry Photography/Getty Images
Walmart and Target have weathered many of the same challenges in the post-pandemic economy, from excess inventory to inflation-squeezed customers. But Q2 earnings released this week show their paths diverging to some degree.
Just looking at the topline numbers, Walmart US comparable store sales jumped a better-than-expected 6.4% YoY in the second quarter, while Target’s comp sales declined a worse-than-expected 5.4% YoY.
The disparity was even greater when it came to digital sales: Walmart gained a whopping 24% and Target fell 10.5%.
So what’s behind Walmart’s growing lead?
As Walmart CFO John David Rainey—clearly feeling himself—told Yahoo Finance on Thursday, “This is not your grandfather’s Walmart.”
But to be a little more precise about it, let’s zero in on one big factor:
That’s the ticket: Walmart may be recovering faster from the drop in ticket sizes that came as cash-strapped consumers shifted their spending away from pricey durable items such as TVs and furniture, as inflation ratcheted up in 2022.
Keep reading here.—AV
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Francis Scialabba
Amazon’s advertising ambitions continue.
The platform’s sponsored product ads, one of its primary ad formats, are expanding to third-party websites, the company announced last week.
The ads will run on select publishers, including BuzzFeed, Hearst Newspapers, Pinterest, and Mashable. Amazon’s sponsored product ads operate on a cost-per-click basis.
Keep reading here on Marketing Brew.—JS
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Cue the countdown. Black Friday prep starts now. Let Wunderkind help your brand excel this holiday season. Their 2023 Black Friday Cyber Monday Insights Guide includes predictions on consumer behavior, recommendations on where (and how) to meet your target customers, and expert advice on deploying BFCM strategies in a profitable way. Prepare early and beat out your competitors with this guide.
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Today’s top retail reads.
Chipped cheese: The famous Italian cheese makers behind Parmigiano-Reggiano are sticking microchips the size of a grain of sand on their cheese wheels to help purchasers verify their authenticity and ultimately combat imitators. (the Wall Street Journal)
Out of warehouse and home: Retailers’ ongoing expansion of e-commerce offerings is pushing up the cost of warehousing, with rents rising 10% globally. (Bloomberg)
RadioShakeup: The electronics chain RadioShack has been in somewhat of a limbo since it declared bankruptcy in 2015. Now, its latest owner is planning a domestic expansion, but it’s unclear if that means new physical locations in the US. (Forbes)
Print power: Need a print-on-demand partner that won’t toss quality aside? Printful’s your go-to. They’ve produced top-notch printing for clients like CBS and Spotify for the last 10 years. Try ’em out.* *A message from our sponsor.
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The direct-to-consumer world has been on a wild roller coaster, and we’re here to guide you through the twists and turns. Join us for an exclusive virtual event on August 30, when we’re sitting down with the DTC maestro himself: Nik Sharma, CEO of Sharma Brands and HOOX. Register today.
Learn more!
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Retail marketing hits and misses from the past week.
Dressing room drama: Comedian and content creator Becca Bastos ripped into Canadian retailer Aritzia’s mirrorless fitting rooms, which force customers to come out into a communal area to see themselves and potentially hear from an in-house “style advisor.” Aritzia, for its part, told Business Insider that communal fitting rooms are a “core component” of the store experience. (@actressbecc on TikTok)
Bud Light bounce: The conservative backlash against Bud light, which began when transgender influencer Dylan Mulvaney promoted the brand on social media, might be running out of steam. One, a Deutsche Bank survey found that fewer beer drinkers are still unwilling to buy the brand, and two, musician Kid Rock was seen tossing back a Bud Light last Thursday despite instigating the boycott earlier this year. (@SawyerHackett on X, formerly known as Twitter)
‘Logne forgiveness: In partnership with rapper Lil Baby, Axe is launching a “‘Logne Forgiveness” promotion that gives TikTok users a chance to win $150 to make up the cost of expensive cologne purchases. The campaign highlights the brand’s new Fine Fragrance Collection, which touts prices of $10 or less. (@axe on Tiktok)
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Written by
Andrew Adam Newman, Alex Vuocolo, and Jasmine Sheena
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