Morning Brew - ☕ Snack on

Frito-Lay’s approach to healthier snacking.
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October 19, 2023

Retail Brew

TikTok Shop

Happy Thursday, everyone. Despite some of the negative news you hear about the economy and trends in this space, retail spending still persists and exceeds the expectations of the economic bigwigs at the Fed who now might put a hold on raising interest rates toward the end of the month. Not to say everything is perfect, but luckily for some of you, shoppers are going all in.

In today’s edition:

—Erin Cabrey, Katishi Maake, Alex Vuocolo

MARKETING

Snack in business

PopCorners bags Frito-Lay

When you think about PepsiCo’s Frito-Lay division, you probably think about, well, Fritos and Lays, but there’s a whole portfolio within the CPG giant’s snacking subsidiary targeting consumers looking to crunch on something a little more healthy.

Eight brands—including PopCorners, SunChips, Stacy’s, and Off the Eaten Path—have been organized into Frito-Lay’s Better Choice Snacking portfolio, also referred to as Positive Choice internally, for the last four or five years, and it’s the job of the portfolio’s VP, Rhasheda Boyd, to continue to grow these brands’ reach. Boyd has spent over a decade at PepsiCo, overseeing marketing for Funyuns, as well as Frito-Lay’s variety packs before moving into Better Choice Snacking.

This portfolio has evolved a lot over the years since Boyd first joined the food and bev giant, when her first gig was working on the launch of nut brand TrueNorth (now owned by B&G Foods). That was the first time outside of SunChips and Lays Baked! that PepsiCo was creating a brand from scratch to target consumers moving away from overly salty snacks, she said. Now, the Better Choice portfolio has become a collection of snack brands worth more than $1.5 billion as PepsiCo has worked to establish a “spectrum of opportunity of snacking for consumers,” Boyd told Retail Brew, which includes improving its current portfolio and bolstering its better-for-you options to meet changing consumer needs.

Keep reading here.—EC

     

PRESENTED BY TIKTOK SHOP

A whole new (selling) world

TikTok Shop

If customers describe your shopping experience as entertaining and convenient, you’re doin’ things right. And with TikTok Shop, you can do it right every time.

Powered by TikTok’s unique discovery engine, TikTok Shop lets you showcase and sell products directly on the app. Your products get front-and-center billing for new, qualified customers who are already discovering new merchandise on their For You feed.

When it comes to how you sell and interact with customers, TikTok Shop gives you plenty of options, like:

  • shoppable videos (Customers can shop directly from their feeds.)
  • LIVE shopping (Engage with your audience in real time.)
  • shop page (Customers can browse or shop your full product catalog.)
  • shop tab (Customers can search and discover your products + promos.)

Start creating fun, easy shopping experiences on TikTok Shop.

STORES

Netflix and grill

Netflix logo with green arrows pointing up Francis Scialabba

In recent years, Netflix has allowed fans to shop for merch from their favorite shows in small doses, but now the company is going all in on IRL shopping, dining, and entertainment.

Netflix is planning to open retail storefronts where customers can buy clothing, eat, and interact with immersive fan experiences.

“Netflix House” will debut with two US locations in 2025 before a global expansion.

Keep reading here.—KM

     

OPERATIONS

Stress test

Stressed retail worker Fiorigianluigi/Getty Images

A new index measuring stress in the workplace found that general merchandise stores are right up there with nursing, warehousing, and waste management.

Using data sourced from the CDC’s National Health Interview Survey (NHIS), the index’s scoring methodology is based on 26 variables that typically impact stress levels, from satisfaction with health care to hours of sleep per night.

Keep reading here.—AV

     

TOGETHER WITH NEWSTORE

NewStore

Do omnichannel like the best of ’em. Well-rounded retail advice can go a long way. And you can get it in NewStore’s new e-book. It contains 11 lessons from future-forward industry changemakers about how to achieve success on your omnichannel journey. Get guidance from folks who have done the dang thing. Download your copy.

SWAPPING SKUS

Today’s top retail reads.

Checked out: Self-checkout has become a staple of the shopping process, but does it really do what it’s meant to accomplish? (The Atlantic)

Trial and error: Victoria’s Secret has prioritized diversity initiatives lately, but now its executives say those efforts are not helping the company meet its financial goals. (CNN)

Three’s a crowd: Walmart’s going all in on its third-party marketplace as it looks to challenge primary rival Amazon during the holiday shopping season. (CNBC)

Not a normal shop: A cool shop. When you sell on TikTok Shop, you create the kind of shopping experience customers want. Plus, you can reach qualified audiences + tap into creator collaborations. Learn more.*

*A message from our sponsor.

E-BOOK

Together with Insider Intelligence

Together with Insider Intelligence

Successful marketers not only anticipate disruption but also respond to it with an outlook of opportunity. To help navigate the uncertainty of H2 2023, download a complimentary copy of Insider Intelligence’s e-book, 3 Advertising and Marketing Trends Shaping 2023’s Second Half, which explores the impact of generative AI, connected TV, and retail media.

Download your free eBook

JOBS

Are you an exec looking to make your next career move or join a board of directors? We’ve partnered with ExecThread, where you can find thousands of confidential job opportunities and board roles that aren’t listed anywhere else. Check out positions like:

NUMBERS GAME

The numbers you need to know.

If a customer who’s loyal to a brand eventually ditches that brand, how loyal were they in the first place?

It’s a question that can be answered by examining how consumer loyalty has evolved over the past year. It’s a figure that has dropped 11% from 79% in 2022 to 68% in the US this year, according to the SAP Emarys Customer Loyalty Index.

  • SAP identified that nearly half consumers surveyed are attracted by “incentivized loyalty,” meaning their loyalty is contingent on prices.
  • And incentivized loyally fell a staggering 36% from 76% in 2022.

Although 49% of shoppers expected to find discounts, 59% said they would switch brands if a less expensive option was available, making cost the top priority when it comes to shoppers frequenting their store of choice.

  • “It is imperative retailers show customers they ‘get’ them because even when inactive, consumers could return to a brand once they can afford to do so,” SAP’s report read.

The retailers who are retaining shoppers are doing so through top-of-the-line customer service (52%), offering discounts and rewards (49%), and providing options like early access to sales or new products through those rewards (39%).

And although the US saw that 14% drop in customer loyalty, it’s very much a global phenomenon, as the US is still the top country when it comes to retaining customers and having options for brands to earn and maintain those shoppers, per SAP.

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