Morning Brew - ☕ Rain or Shein

Inside Shein’s business strategy.
October 09, 2023

Retail Brew

Listrak

It’s Monday, and being unprepared is bad for business—so don’t face your new managerial role alone. Morning Brew Learning’s New Manager Bootcamp can equip you with the tools you need to take on your new position with confidence. Secure your seat now.

In today’s edition:

—Alex Vuocolo, Katishi Maake, Erin Cabrey

OPERATIONS

Behind the scenes at Shein

Peter Pernot-Day Peter Pernot-Day. Christophe Archambault/Getty Images

Shein is arguably one of the most controversial companies in the world. Beloved by Gen Z, the Singapore-based apparel company nonetheless has faced allegations of forced labor, copyright infringement, and using unsafe levels of toxic chemicals in its products. As recently as August, 16 US attorneys general sent a letter to SEC Chair Gary Gensler asking that he make sure Shein will independently verify that it does not use forced labor before approving its US IPO. It’s also still recovering from a PR disaster after it sent fashion influencers to a model factory in China, which some saw as downplaying concerns about working conditions.

As Shein now endeavors to expand beyond China, diversify its operations, and repair its reputation globally and in the US, Retail Brew sat down with Peter Pernot-Day, the company’s US head of strategy and communications, to talk about how the fast fashion giant plans to sustain its growth in a way that avoids some of the public relations pitfalls of recent years.

Keep reading here.—AV

     

PRESENTED BY LISTRAK

What’s your holiday game plan?

Listrak

We may be knee-deep in spooky season, but EOY will be here before you know it. If your holiday revenue strategy still needs work, Listrak’s dynamic customer engagement platform has you covered.

Their e-commerce retail experts have rounded up the best holiday advice, prep tips, and must-dos that VIP retail players (think: Academy Sports, TOMS, vineyard vines) are using to make sure they’re on the ball this holiday season—and they’ve packed it all into their holiday resource center.

This resource center features bite-size videos (we’re talkin’ 5 minutes or less) and downloadable calendar guides that’ll have you set up for holiday success, including:

  • making sure your emails actually land in inboxes
  • keeping your SMS game on point
  • mastering segmentation, personalization, loyalty, and design
  • developing out-of-the-box ways to boost revenue

With these hot tips, you’ve got this holiday season in the bag.

E-COMMERCE

Sales party

Amazon Prime Day logo on a smartphone screen. Sopa Images/Getty Images

Amazon, as is now tradition, is about to bring us Part 2 of Prime Day, after Part 1 of its annual sales event earlier this year was bigger than ever.

By now it’s clear that Prime Day, which falls on Oct. 10 and 11, is bigger than Amazon. Other retailers are piggybacking on the retail giant’s discount days, and savvy consumers plan to take advantage of sales wherever they pop up.

  • Half of consumers said they’ll shop multiple sites including Amazon on Prime Day, meaning “they’ll be especially responsive to limited-time offers [and] exclusive promos,” according to a recent survey of 600 shoppers conducted by Text Talk.
  • That being said, 44% of those surveyed said they expect to shop strictly on Amazon.

Target’s Circle Week concludes on Saturday, but leading up to the event, the company had already put a number of items on sale, including electronics, home goods, apparel, and toys.

From Oct. 9 through 12, Walmart will challenge Amazon with its Deals Holiday Kickoff, featuring discounts and markdowns. Like Amazon, Walmart’s Deals Holiday Kickoff is a sequel to its July Walmart+ Week.

Keep reading here.—KM

     

STORES

Eating away

Two boxes of Ozempic in a pharmacy Mario Tama/Getty Images

The sale of appetite-suppressing medications like Ozempic may be benefiting business at retail pharmacies, but it could also be eating away at food sales.

Walmart US CEO John Furner told Bloomberg this week the drugs are beginning to impact the retailer’s food sales, saying the company has been analyzing anonymous shopping data to identify changing buying habits among consumers who are and aren’t using them.

“We definitely do see a slight change compared to the total population, we do see a slight pullback in overall basket,” Furner said. “Just less units, slightly less calories.”

A Morgan Stanley report published last month estimated that 24 million people, representing 7% of the US population, will be taking these obesity drugs by 2035. Analyst Pamela Kaufman said that sales of high-fat, salty, and sweet foods and products could take the most notable hit; the firm anticipates a 3% drop in consumption. Alternatively, foods like protein shakes and bars could see a sales uptick.

Keep reading here.—EC

     

TOGETHER WITH BILL

BILL

Sip more, stress less. Know what doesn’t pair well with a seasonal latte? Endless invoices and approvals that demand your attention. Fortunately, BILL can help you approve, pay, and sync bill payments; send custom invoices; and get paid faster. Take a demo before Oct. 31 and get a $50 Starbucks gift card.

SWAPPING SKUS

Today’s top retail reads.

Does not register: Retailers like Costco, Walmart, and Kroger are finding that self-checkout is not the labor-saving panacea they’d hoped for. (Insider)

Space gotta see: Prada is helping design NASA’s new moon suit. (the Wall Street Journal)

Shoestring fries: Sampling the menu at the Skechers Food Spot. (Los Angeles Times)

Level up: If you’re building businesses and/or wealth, get insights and actionable advice from two women who’ve done both on BOSSY.

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.

Birkenstock, the shoe many consumers love (but many others don’t), filed to go public in September, enabling the linguistically tantalizing prospect of owning Birkenstock stock (Birken-stock?).

You tell us: Do you own a pair of Birkenstocks, and are you hoping to purchase stock in Birkenstock? Cast your vote here.

Circling back: Last week we noted that 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 by requiring businesses to offer consumers the option of an electronic receipt before printing one.

We wondered how you respond when you’re asked if you want a paper receipt at checkout.

Turns out most of you aren’t leaving a paper trail, with 61.7% reporting that you say no, you don’t want a paper receipt, on most or all occasions. The remaining 38.3% of you said that you say, yes, you do want a receipt on most or all occasions.

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