Happy Thursday, everyone. For those not on TikTok, a Costco sleeper sofa went viral this week and a calm, reasonable, civil discussion ensued. JK. The warehouse store’s Thomasville Marion Fabric Convertible Sofa is priced at a cool $1,299.99 and sparked intense debate about whether the couch was worth it. Many in the “anti” camp mentioned that Ikea already did the convertible sofa thing…and did it better (and cheaper). Let us know on which side you land.
In today’s edition:
—Katishi Maake, Erin Cabrey
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Wayfair/Candice Luter
In 2020, after the murder of George Floyd, many businesses across the economy made commitments to support Black-owned businesses. More than three years later, at least some of those efforts continue.
In February, Wayfair introduced a supplier diversity program that expanded the company’s offering of home goods from Black-owned suppliers and made it easier for customers to seek out those products through Wayfair’s website.
- Now, customers can shop through a specific, dedicated landing page using a search filter.
- Products featured as part of the program are identified with a badge placed on the description pages.
For Wayfair’s head of supplier diversity, Shardé Marchewski, the program is the culmination of work with Black-owned suppliers that predated the Black Lives Matter protests of 2020. She said Wayfair’s program aims primarily to uplift Black-owned suppliers and vendors, which can translate into future success for Wayfair.
Keep reading here.—KM
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Erin Cabrey
On day two of Groceryshop, there was a surprise celebrity appearance by Cheetos mascot Chester Cheetah, a brief cats vs. dogs debate on the main stage, and a surprising fact about flying chickens, but let’s jump into the non-animal related happenings.
Mario Mijares, VP of insights, loyalty, marketing and monetization platforms at 7-Eleven, taught us a new phrase: “zombie discounts.” What’s a zombie discount, you ask? It’s essentially when shoppers earn loyalty points and score deals without knowing it, something 7-Eleven is trying to avoid. Mijares said 7-Eleven wants consumers to feel like they’re “in control” of the points they’re earning and be curious about how to earn them, which gets them to open their emails and use the 7-Eleven app more often.
Uber’s Pierre-Dimitri Gore-Coty, SVP of delivery, similarly touched on Uber Eats’s efforts to establish “value in the grocery experience.”
Keep reading here.—EC
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Justin Sullivan/Getty Images
No one likes being hacked, but when it happens to a company, it’s worse than scammers sending fake friend requests.
Clorox said on Monday that a cyberattack from last month is affecting production and will have an impact on its quarterly earnings.
The company revealed in a securities filing that it took measures to thwart the attack, including scaling down its operations, and for the time being is manually fulfilling orders. It hopes to resume a normal schedule starting next week.
Keep reading here.—KM
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Today’s top retail reads.
Far and wide: Chamberlain Coffee has found success and gone viral on social media, but now it’s looking to grow beyond its Gen Z core customer base. (Retail Dive)
Throwing it back: Retro shoe styles seem ubiquitous these days, but Nike and Adidas in particular understand that nostalgia is powerful and are leaning into it more than ever. (Footwear News)
Against the odds: Klaviyo went public yesterday after 11 years in business, and during a time that hasn’t been great for IPOs. The company’s CEO details how Klaviyo beat the odds leading up to its big day. (Insider)
Bulk up: Order whatever your biz needs with Walmart Business. Submit bulk orders + receive shipments sent to your office, delivered to your door, or picked up from a Walmart location, all at everyday low prices.* Swiped out: Retailers with their own store credit cards are feeling the pinch as customers continue to spend but skip out on paying up—and our new article digs into the sitch. Sponsored by Adyen.* *A message from our sponsor.
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The numbers you need to know.
When it comes to where retailers want to sell their products, it turns out they want their eggs in as many baskets as possible.
Last year was a big one for marketplaces; 31% more businesses began selling their products on such platforms, according to Mirakl’s 2023 seller report. It found that marketplace and dropship businesses grew 38% YoY and six times faster than overall commerce in 2022.
- More than half (56%) of the 65,000 businesses surveyed sell on more than two marketplace and dropship platforms, while 62% of sellers intend to get on more platforms over the next year.
- Among the businesses examined, 53% are brands, 32% are marketplace native sellers, and 15% are retailers.
“Brands and retailers recognize the opportunities offered by platform business models, as they can join forces with other retailers and reach new audiences in a matter of weeks in some cases, businesses can begin selling on marketplaces in just four days,” Fareeha Ali, director of strategy and market intelligence at Mirakl, said in the report.
Mirakl said success for operators is defined by “attracting and retaining high-quality sellers.” Most retailers (57%) would rather sell on marketplaces that have a diverse set of products and categories, and 43% prefer curated marketplaces with specific categories.
- But both of those groups make website traffic, product categories, commission, and ease of use a priority.
“Selling on the big digital-native marketplaces like Amazon is getting to be so competitive, it’s a breath of fresh air to have other channels available. While other marketplaces may not have as much traffic, we see sales almost instantaneously,” Jade Hansen, director of operations at ClickHere2Shop, said in the report.
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Katishi Maake and Erin Cabrey
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