Morning Brew - ☕ Buy the month

August’s co-founder on running a mission-based business.
April 23, 2024

Retail Brew

It’s Tuesday, and the week is already heavy on industry intrigue. Lululemon announced layoffs. Nordstrom is considering going private, and Express has declared Chapter 11 bankruptcy. Oh, and Mattel and Hasbro are reporting earnings soon, so maybe there’s some good news coming from the toy category.

In today’s edition:

—Jeena Sharma, Erin Cabrey, Andrew Adam Newman

DTC

Voices of Tomorrow

August co-founder Nadya Okamoto August

Period poverty and the pink tax continue to be not only a global issue, but also a huge problem here in the US. A 2023 study by NCBI found that “16.9 million menstruating women in the United States live in poverty.” For Nadya Okamoto, social entrepreneur and co-founder of August, a sustainable menstrual care brand, it is somewhat her life’s mission.

Not only is Okamoto dedicated to eliminating the “tampon tax,” aka the sales tax on tampons, but also the stigma around periods. Formerly the founder of nonprofit PERIOD., which works to promote increased access to menstrual hygiene products, the 26-year-old is also known for her judgment-free TikTok videos that educate young people through the process of menstruation.

In an exclusive chat with Retail Brew, Okamoto discussed the challenges of running a mission-based retail business and her advice to young women of color in the retail industry.

Keep reading here.—JS

   

FROM THE CREW

Supply chains unchained

The Crew

How can organizations stay on the ball while staying mindful of the intricacies of the supply chain and B2B purchasing—and the expenses associated with all of the above? It’s a tall order for any biz. Alex Lieberman, co-founder and executive chairman of Morning Brew, sits down with Ashley Hubka, SVP and general manager of Walmart Business, to discuss potential ways forward for businesses of all sizes looking to make an impact while juggling these dynamic elements.

OPERATIONS

In goods measure

Crest toothpaste on store shelf Justin Sullivan/Getty Images

Procter & Gamble, the maker of brands like Tide, Head & Shoulders, and Crest toothpaste, reported an uptick in sales on the back of price increases in its third quarter, while its performances across categories varied.

Net sales were up 1% year over year to $20.2 billion, falling below analysts’ expectations, though organic sales rose 3%. While the company saw stagnant volume overall, in North America its volume rose 3%, in line with a trend of volume increases over the past several quarters, CFO Andre Schulten noted on the earnings call.

Pricing was up 3% year over year, though Schulten said the company didn’t implement any price increases in the US in the quarter, CNBC reported.

Keep reading here.—EC

   

MARKETING

Come again

An illustration of a customer juxtaposed with the symbol for circularity. Parradee Kietsirikul/Getty Images

It’s no wonder that retailers tend to be obsessed with customer acquisition, because new customers are like new friends—validation that, in a world filled with strife and chaos, you’ve managed to connect with someone; a cause for hope, a harbinger of good times to come.

Until they ghost you.

A new report from Bluecore, which provides retailers with technological solutions for shopper identification and customer movement, identifies which retail segments are better at not just acquiring customers, but also keeping them around.

The report tracked 2023 data for more than 100 retailers over multiple categories, from apparel and toys to beauty and sporting goods, and urged retailers to strategize to convert the one-time-only customers into loyal repeat customers.

“Our data shows that 74% of a retailer’s customers are one-and-done,” according to Bluecore, which dubbed them “fickle shoppers.”

Keep reading here.—AAN

   

TOGETHER WITH BOLD METRICS

Bold Metrics

’Fit check. How has AI impacted apparel sizing? Has it really made retail more personalized and sustainable? If you’re one of the (many) retail pros asking this question, check out Bold Metrics’ Future of Fit Report. It addresses how AI tackles sizing complexities, and which tech solutions can drive sales with AI’s help.

SWAPPING SKUS

Today’s top retail reads.

Bankruptcy express: Apparel outlet Express has declared Chapter 11 bankruptcy and plans to close more than 100 stores. (Reuters)

Handbag heist: Fashion designer Nancy Gonzalez was sentenced to 18 months in prison for running a globe-spanning conspiracy to smuggle crocodile handbags from Columbia to high-end showrooms and fashion events in New York. (the Associated Press)

Merger management: Kroger and Albertsons told regulators on Monday that they would see an additional 166 stores to appease concerns that their pending merger would lead to higher prices and less bargaining power for workers. (the Wall Street Journal)

JOBS

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