Morning Brew - ☕ Shave the date

Billie’s big move beyond shaving.
February 06, 2024

Retail Brew

It’s Tuesday, and McDonald’s says it’s improving the recipe of its most famous product: burgers. The “Best Burger” initiative is aimed at boosting sales by making burgers more flavorful, but some Wall Street analysts are apparently skeptical that it will make much of a difference in the short term. We think they might just be bigger fans of the Filet-O-Fish.

In today’s edition:

—Erin Cabrey, Alex Vuocolo, Jeena Sharma

MARKETING

Body check

Billie deodorant, body lotion, and body wash Billie

Gaining popularity among consumers with its DTC razors and advertising emphasizing female body hair—a rarity for shave brands marketed to women—Billie is now ushering in what it calls “a new era in body care.”

A lineup of 15 new products across body wash, body lotion, and deodorant—the brand’s first major moves outside of the shave category—hits shelves at Walmart nationwide today. The roll out is supported by a new ad spot paying homage to an iconic scene from the 1999 romantic comedy 10 Things I Hate About You.

Billie started off in 2017 as a direct-to-consumer razor brand, but that channel strategy shifted after Shick maker Edgewell acquired it for $310 million at the end of 2021. The brand entered Walmart in 2022, and now is in 30,000 stores nationwide, the start of its vision to become “a body brand for womankind,” co-founder Georgina Gooley told Retail Brew. Gooley shared the details of its new launch and how it’s standing out from other body care brands on the shelf.

With Walmart as its exclusive partner, the brand is expanding into different aisles of the store nationwide with these new products, a move that will allow Billie to “live within women’s daily routines,” outside of shaving, Gooley said.

Keep reading here.—EC

     

FROM THE CREW

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The Crew

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E-COMMERCE

Amazing, Amazon

New Amazon warehouse Tigerstrawberry/Getty Images

There was plenty to brag about in Amazon’s latest earnings report: a 14% year over year jump in net sales, a 12% jump in sales for the entire year, and a “record-breaking Black Friday and Cyber Monday holiday shopping event.” But the e-commerce giant’s CEO said he was more excited about recent investments in improving customer experience than financials.

“While we’ve made meaningful progress in our financial measures, what we’re most pleased about is the continued customer experience improvements across our businesses,” Andy Jassy told investors in the Q4 earnings call.

The company highlighted new tech offerings such as AI-powered size recommendations for apparel. It also launched a beta version of Rufus, an AI shopping assistant or chatbot, designed to answer questions about Amazon’s product catalog and offer recommendations based on conversational context.

Keep reading here.—AV

     

STORES

No surprises

Very ugly red Yeezys. Jeremy Moeller/Getty Images

Remember when Adidas was stressed about making up for the losses from its defunct Yeezy partnership? Yeah, well, things have changed.

The sportswear retailer recently said it expects to hit $542 million in operating profits this year, less than half the average analyst estimate. Adidas blamed “unfavorable currency movements” for the lukewarm number, but added that it hopes to make up for some of that by selling items from its remaining Yeezy inventory, Bloomberg reported.

In fact, the brand expects to generate 250 million euros from Yeezy products that it’ll sell at cost, rather than writing them off.

Keep reading here.—JS

     

SWAPPING SKUS

Today’s top retail reads.

Insensitive information: Target is pulling from shelves a magnetic activity book that mixed up the names and images of Civil Rights leaders such as W.E.B. Du Bois and Booker T. Washington. (CNN)

Budget-busting beef: Tyson Foods said beef sales are dropping, as US cattle supplies hit a seven-decade low, pushing up prices and curbing demand. (Reuters)

Busted: Philadelphia District Attorney Larry Krasner is forming a task force to reduce retail crime in the city. (NBC Philadelphia)

Keep e-comm fresh: How should retailers be testing new creative, analyzing consumer insights, and keeping their online experience up to par? The Line Studios’ co-founders join Retail Brew to discuss. Listen in. Sponsored by Disco.*

*A message from our sponsor.

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