For generations, it was clear who held the cards when it came to the relationship between big retailers and consumer brands. It was big retailers, naturally, who brands pitched, charmed, and cajoled in the hope that they would carry their products on their hallowed shelves and websites.

But that’s not always the case anymore, at least not when it comes to a retail media network (RMN), where retailers who’ve taken a page from media companies pitch brands—often the very brands they carry—to pay them to advertise their products on their apps, websites, and in their stores.

Quentin George, a partner at McKinsey & Company, was recently consulting with the CEO of a retail company building its RMN. The executive was trying to get his arms around how the dynamic was changing now that his company was trying to sell ads to its vendors.

“‘Wait a minute,’” George recalled the executive saying. “‘Does that mean that if I go to lunch with the vendor that I have to pick up the check?’”

“That’s how it’s going to go now,” George recalled responding. “They are becoming the customer.”

George spoke from the stage at the National Retail Federation’s recent convention, at an all-day program with multiple panels focusing exclusively on RMNs.

Keep reading here.—AAN

In the world of retail, one word has resounded above all others this past year: “profitability.”

This concept has crystallized into three strategic imperatives essential for e-commerce businesses in our post-pandemic reality—and they’re all here in VTEX’s latest white paper, Three Investments to Drive Economic Growth.

Jordan Jewell, former IDC analyst, sat down with dozens of e-commerce leaders and analysts to understand the key to not just growing an e-commerce business but also growing it profitably.

Amid a changing e-commerce landscape, retailers face new challenges across consumer demands, digital ecosystem shifts, and economic fluctuations.

Tack on other harsh realities, like a 38% reduction in digital ad effectiveness thanks to iOS 14.5 updates, and it’s clear that retailers need to rethink their approach to digital success.

We know. It’s a lot, but—breathe. VTEX’s white paper can help put you on track to profitable growth this year. Download it here.

German sandal maker Birkenstock—producer of everyone’s favorite ugly shoe—had a mixed start to the new year. While sales were up, its profit outlook for the year was down, underwhelming some investors.

In Q4, sales hit $407.7 million rising 16%, surpassing analyst expectations.

Meanwhile, revenue for the fiscal year that ended September 30 rose 20% (to 1.49 billion euros) compared to the same period in 2022, while net profit was down to 75 million euros from 187 million euros a year earlier.

For the fourth quarter, sales were up 16% to 374.54 million euros (or $407.7 million at current exchange), which beat analysts’ expectations of $390.98 million. Adjusted profit per share was 0.14 euros, which missed estimates.

Still, CEO Oliver Reichert remained optimistic and said the company was banking on growth.

Keep reading here.—JS

“The quality of clothes—particularly women’s clothes—ain’t what it used to be. Items made from 100% natural fibers are hard to find, even at luxury prices. Many garments feel like they begin to deteriorate after a few wears, and somehow, prices still seem to keep rising,” writes Marketing Brew’s Katie Hicks:

It’s become a point of passionate discussion on social media, where consumers vent, deinfluence, look back at what some brands used to sell, and share tips on how to find higher-quality clothes via thrifting, mindful purchasing, and…going to Brandy Melville?

It’s only natural, then, that some brands have begun focusing their marketing messages on conveying the quality of their garments.

Read the whole story here on Marketing Brew.