Morning Brew - ☕ Take to tax

Consumer advocate calls out Walgreens over sales tax.
January 31, 2024

Retail Brew

PODS FOR BUSINESS

Hello, hello. The NFL has struck a licensing deal with Kristin Juszczyk, designer of Taylor Swift’s viral Chiefs puffer jacket, to use the league’s marks on apparel. The move comes less than two weeks before the Super Bowl, so if you’re not watching for the football, you might have to tune in for the fashion.

In today’s edition:

—Andrew Adam Newman, Katishi Maake, Erin Cabrey

E-COMMERCE

Tracking cookies

Consumer advocate Edgar Dworsky, posing here with some examples of shrinkflation he flagged, discovered Walgreens was incorrectly taxing cookies.. Consumer advocate Edgar Dworsky. Boston Globe/Getty Images

Walgreens got an object lesson on how the cookie crumbles recently, when a consumer advocate in Massachusetts discovered the company had been charging online shoppers sales tax on cookies, even though they aren’t subject to tax in the state.

Edgar Dworsky, long-time watchdog and shrinkflation avenger, revealed on his website, Consumer World, that when he saw Royal Dansk Danish Butter Cookies were on sale for $2.55, he ordered 10 tins online to pick up in the store. But while the total should have been a decimal-point move of $25.50, he noticed Walgreens also charged a 7% tax of $1.79.

But tax law in the Bay State, as a smart cookie like Dworsky well knew, exempts food, except for meals sold by restaurants. And thus began Dworsky’s quest not just to recover his own $1.79, but to get Walgreens to reimburse other consumers it had overcharged for food items, too.

Keep reading here.—AAN

     

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PODS FOR BUSINESS

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OPERATIONS

Tapping in

PetSmart store PetSmart

During the height of the pandemic, it was common for retailers and the public generally to throw support behind frontline workers who had to work in-person and didn’t have the option of working from the comfort of their couch.

At the time, nearly four years ago, companies faced pressure to increase the pay of their frontline hourly workers, and many eventually followed through as a result. But nearly four years later, frontline workers are leaving their jobs because some believe pay has not kept up with inflation, as Retail Brew previously reported.

  • In the past year, 29% of retail workers said they had switched jobs, according to the Global Frontline Workforce Pulse Report that surveyed 5,615 frontline workers.
  • The most common reason cited for leaving a previous role was better pay.

But pay is only part of the story. A Gallup poll found that 2021 was the first annual decline in engaged employees, down from 36% to 34%—a trend that only continued in 2022, when the rate was 32%. The Global Frontline Workforce Pulse report found that the 29% attrition rate was the lowest among industries covered.

That could be why retailers like PetSmart and AutoZone have taken steps to boost employee engagement.

Keep reading here.—KM

     

COMMUNITY

Coworking with Elli Eldiwany

Elli Eldiwany Elli Eldiwany

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Elli Eldiwany is global head of sales at Commotion, a company that uses AI to personalize the consumer shopping experience.

How would you describe your job to someone who doesn’t work in retail? Working with retailers to create unforgettable consumer shopping experiences. Consumer expectations have changed so dramatically all at once, expecting personalization and not putting up with traditional search experiences anymore, but brands aren’t all equipped to satisfy them.

One thing we can’t guess about your job from your LinkedIn profile? I joined Commotion to work with the three co-founders because they’re good friends of mine that I worked with previously at a startup that we took through IPO.

What’s your favorite project you’ve worked on? Right now, every project feels like the most exciting thing I’ve ever done because each retailer is so unique and wants to do incredible things.

Keep reading here.—EC

     

TOGETHER WITH ROKT

Rokt

Show ’em how much you care 🫂. Shoppers have all kinds of demands these days, from seamless checkouts to personalized offers. The trick to staying on top? You gotta stay relevant. We teamed up with Rokt to help rewrite the playbook for retailers hungry to engage with their audiences. Read the article.

SWAPPING SKUS

Today’s top retail reads.

Two thumbs up: The National Rosacea Society’s new Seal of Acceptance is set to help consumers identify beauty and personal care products, such as those from Laura Geller and Skinfix, targeting the condition. (Glossy)

A giving mood: Patagonia has donated $71 million of its profits since September 2022 to support everything from land conservation to a Democratic super PAC. (the New York Times)

What’s in store: An Albertsons Media Collective exec breaks down the importance of in-store campaigns and connected TV to the future of retail media. (Progressive Grocer)

Inventory insight: Wanna achieve retail success? PODS For Business offers storage container solutions for everything from on-site storage to pop-up storefronts. Get a 20% monthly rental discount.*

*A message from our sponsor.

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