Morning Brew - ☕ Returns on investment

Happy Returns CEO on no-box returns and being purchased by UPS.
December 19, 2023

Retail Brew

 THE TWO MILLION DOLLAR PUZZLE

It’s Tuesday, and you could argue that it’s a make-it-or-break-it week for retailers. But with Macy’s facing a buyout offer, mall operator Preit declaring bankruptcy, and certain downtown shopping districts—like San Francisco—struggling mightily to stay afloat, it doesn’t bode well for such a pivotal season. Maybe retailers will still squeak out a win in Q4—fingers crossed it’s not a taste of what could be a difficult 2024.

In today’s edition:

—Andrew Adam Newman, Jeena Sharma, Katie Hicks

E-COMMERCE

Box-free rein

A Happy Returns associate at a counter interacts with a customer. Happy Returns/UPS

It wasn’t so long ago that a printer in the home didn’t seem as anachronistic as a butter churner, and what consumers often were hitting Command P for was to print labels for returning online purchases in their original boxes.

But then Happy Returns came along in 2016 and has pioneered box-free and label-free returns, enabling consumers to simply bring the item to one of its retail partners, have a QR code scanned, and instantly receive their refund. A similar process was adopted by Amazon a year later, in 2017, when it started accepting returns at Kohl’s locations.

UPS recently purchased Happy Returns for $465 million from PayPal, a 75% increase on the $265 million it paid for it in 2021. Like you, friends, nothing gets our blood pumping like hearing about the finer points of return logistics, so we spoke recently with Happy Returns co-founder David Sobie. We asked about the impact of the UPS acquisition, whether the Happy Returns brand identity will remain intact, and what the company calls “the bright side of return fees.”

Keep reading here.—AAN

     

PRESENTED BY THE TWO MILLION DOLLAR PUZZLE

Imagine winning $1,000,000

 THE TWO MILLION DOLLAR PUZZLE

What would you do with a million bucks? Book a monthlong beach vacation, zero out your student loans, buy pizza for your entire neighborhood?

With the Two Million Dollar Puzzle, your big win could be just 500 pieces away. Prizes range from $1 to $1,000,000, and the odds of winning the Two Million Dollar Puzzle are 150x better than playing the lottery jackpot.

Turn it into a high-stakes family activity or an at-home date night. Spend the evening putting together the puzzle, scan the QR code, then see what prize you’ve won! Both million-dollar prizes have yet to be redeemed…

Not many puzzles have the potential to change your life. Order by Dec. 21 to get your Two Million Dollar Puzzle in time for Christmas.

Happy puzzling, friends.

STORES

China-ing in

Image of a Dior pop up Dior

French luxury retailer Dior has found a new global brand ambassador in Jay Chou, the Taiwanese pop sensation who’s sold more than 30 million records, WWD reported.

The brand said in a statement that Chou “embodies the spirit and singularity of Dior style, a modernity with a timeless signature,” while the partnership honors “the special ties uniting Dior and culture in all its forms.”

Although it’s the singer’s first time playing the role of ambassador for the retailer, it’s not his first luxury rodeo. In 2022, Chou worked with high-end department store Samaritaine Paris—like Dior, owned by LVMH—on a music video.

As for the luxury industry as a whole, a number of retailers, including Prada and Burberry, have employed Chinese brand ambassadors this year in hopes of cashing in on the Chinese-speaking market.

Keep reading here.—JS

     

MARKETING

Get it together

A collage of brand collaborations from Van Leewuwen, New Balance, Heinz, Bush’s Beans, MSCHF, The Caviar Co., Christian Cowan Van Leewuwen, New Balance, Heinz, Bush’s Beans, MSCHF, The Caviar Co., Christian Cowan

In 2023, brand collabs were inescapable. While some made sense conceptually, others have truly haunted us since we first laid eyes on them…here’s looking at you, Velveeta martini. We can’t believe that was last year; where does the time go?

Whether intentionally provocative, truly inspired, or just a shot and a miss, here are some of the wildest pairings we saw in 2023.

  • Even the most lactose-tolerant were reaching their limit with ranch-flavored ice cream from Van Leeuwen and Hidden Valley Ranch.
  • Van Leeuwen, undeterred, also revived its Kraft Mac & Cheese ice cream.
  • Fishwife teamed up with Talea Beer Co., because who doesn’t want to drink a smoky lager inspired by tinned fish?
  • Did anyone in the US know about Heinz pasta sauce before they made a vodka sauce with Absolut?

Keep reading here on Marketing Brew.—KH

     

TOGETHER WITH STITCH FIX

Stitch Fix

Peep the fashion forecast. Did you predict denim maxi skirts and cargo pants would have a comeback in 2023? We sure didn’t. Thankfully, the Stitch Fix 2024 Style Forecast is here to help us stay informed on next year’s rising trends. Get stylist insights, data-backed predictions, and more. Check it out.

SWAPPING SKUS

Today’s top retail reads.

Self checkout is here to stay: Despite a love-hate relationship among customers, retailers are holding onto their self-checkout lanes—though many are tweaking the process. (the Associated Press)

Care Bear recovery: The China-based manufacturer of Care Bears said the costs of producing the popular toy are back to pre-pandemic levels. (CNBC)

Teamsters vs. beer maker: About 5,000 Teamsters working for Anheuser-Busch just voted to authorize a strike if they can’t hammer out a new contract before the current one expires at the end of February. (CNN)

Win a milli: Skip the lotto and get the Two Million Dollar Puzzle instead. Your odds of winning $1m are 150x better than winning the lotto. Order by Dec. 21 to get yours by Christmas.*

*A message from our sponsor.

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 & board roles that aren’t listed anywhere else. Join ExecThread for free.

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