Morning Brew - ☕ Right place, right time

Amazon urges sellers to place their inventory soon.
October 02, 2023

Retail Brew

LTK

It’s Monday, and while we hope you got to spend much of the weekend outdoors, might we suggest if you head back to the office, you make an effort to use your indoor voice? According to a Monster.com survey cited in Fast Company, 77% of respondents have worked with what they call a “loud worker” and 42% thought that these voluble employees have no idea how they’re impacting coworkers. If you’re on a Zoom call in your cubicle and you’re not at least a little bit worried that you’re too loud, then chances are you’re oblivious—and too loud.

In today’s edition:

—Alex Vuocolo, Andrew Adam Newman, Katishi Maake

OPERATIONS

Everything in its right place

Conveyor belt with boxes inside a warehouse. Nathan Stirk/Getty Images

The holiday shopping season is still a few weeks out, but behind the scenes retailers are already scrambling to get inventory placed and ready for shipping. Retail Brew is digging into this process as it plays out in real-time to see how companies are hitting the sweet spot between ordering too much and too little so they can avoid both shortages and gluts.

Earlier this month, Amazon issued a warning to sellers who use its fulfillment services: Get your Black Friday inventory into warehouses by Oct. 26 or risk capacity issues come November.

The reason for the warning has to do with how Amazon prepares for the annual influx of holiday goods. Throughout the month of October, the company’s warehousing operations will focus almost entirely on receiving products rather than shipping them out.

Keep reading here.—AV

     

PRESENTED BY LTK

Creator content is still giving

LTK

Fashion brands were early adopters of creator strategies, and they haven’t looked back since. Why? Because these partnerships help brands expand their reach and accelerate growth.

And as creator strategies evolve and consumer expectations shift, your brand needs to stay current on the latest trends and best practices. Get all that and more at LTK’s upcoming webinar, Fashion’s Runway to Success.

You’ll hear why there are more opportunities for creator partnerships than ever before and learn how to find creators that align with your brand. Plus, you’ll leave with tangible tips on how to maximize your creator marketing strategy as a whole.

Block your cal for Oct. 18 and get ready to level up your creator strategy. Register for the LTK webinar here.

STORES

Shrinkflation is the wurst

A shrinkflation photo-illustration. A carton of eggs with four eggs beside a carton with one egg, both with the price of $1.99. Olivier Le Moal/Getty Images

Shrinkflation, when brands make products slightly smaller, often imperceptibly so, rather than raising prices, strikes many consumers as a particularly mustache-twirling practice. A 2022 report by Morning Consult found that when consumers notice a product has been shrinkflated, almost half (48%) choose a different brand.

Now the German government wants to make shrinkflation verboten. Steffi Lemke, Germany’s Federal Minister for the Environment, Nature Conservation, Nuclear Safety, and Consumer Protection (and winner of the Longest Official Title contest), is speaking out against shrinkflation, and is sponsoring legislation to ban the practice.

Lemke, a member of the Green party, is concerned not just that shoppers may be deceived, but also that shrinking the contents but keeping the package the same size is an environmental no-no.

Keep reading here.—AAN

     

RETAIL

Friendly competition

Target bag attached to the bullseye Target logo Francis Scialabba

Happy spooky season, everyone. In that spirit, there’s some spooky news for those of you who use the Google Play Movies & TV App—it’s getting the ax on Thursday. It’s just further incentive to keep that last Blockbuster store alive.

Here’s what else is going on in retail this week:

In sales: Yes, the now twice-yearly cat and mouse game between Amazon and all its competitors is happening now, because Prime Day is coming next week. Yesterday marked the beginning of Target’s Circle Week, which is set to run through Saturday.

Keep reading here.—KM

     

VIRTUAL EVENT

Meeting the modern consumer head-on

Meeting the Modern Consumer virtual event promo. Morning Brew

Brace yourself for a transformational journey into the heart of modern consumer engagement at our Retail Brew virtual event. In an era defined by fleeting attention spans and sky-high shopper expectations, retailers are rewriting the rulebook. Witness their evolution as they adopt DTC strategies and leverage the latest tech to revolutionize their e-commerce offerings. Don’t miss your chance to excel in the ever-changing retail universe—register now.

SWAPPING SKUS

Today’s top retail reads.

Sanitary confinement: Why Gen-Z consumers want menstrual care product brands to be less euphemistic. (the New York Times)

Wood you rather: Why furniture falls apart so much more easily than it used to. (Marketplace)

Hot pocket: Apple said it has identified the issues that are causing some iPhone15 users to complain the phones are overheating. (Reuters)

Styled for success: Business is booming for fashion creator partnerships. Learn about the latest trends and best practices for these strategies at LTK’s upcoming webinar, Fashion’s Runway to Success. Register here.*

*A message from our sponsor.

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.

In the US alone, paper receipts use ~3.7 million trees and 10 billion gallons of water annually, according to a 2022 report by Green America, and a bill before the California legislature seeks to address the issue, requiring businesses to offer consumers the option of an electronic receipt before printing one.

You tell us: When you’re asked if you want a paper receipt at checkout, how do you respond? Cast your vote here.

Circling back: Last week, we noted that an FDA panel has ruled that phenylephrine—the decongestant in OTC medications for allergies and colds including Benadryl Allergy Plus Congestion, Sudafed PE, and Vicks Sinex—is ineffective in tablet form. So we asked whether, given the ruling from the FDA panel, you thought brands with products that contain phenylephrine should proactively pull products from shelves, or wait for the FDA to make a final decision.

Your responses were nothing to sniff at. Most of you (63.8%) said that the brands should proactively pull products containing phenylephrine from shelves and not wait for the FDA to make a final decision. Another 34.5% of you said the brands should not proactively pull products containing phenylephrine until the FDA makes a final decision. Another 1.7% didn’t know, weren’t sure, or were just too congested to form an opinion.

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