These days, it seems like there’s a new celebrity-founded CPG brand announced everyday—this year alone, Beyoncé, Serena Williams, and even The Rock were a few major names to debut new brands.

They’ve proven their ability to grab headlines and retail placements, but with the exception of a few brands, their impact on consumers’ wallets hasn’t completely stolen the show just yet. These are the major shopping trends shaping celebrity beauty and food and beverage brands, and the challenges that may lay ahead.

Starstruck: Celeb beauty brands, as of November 2023, have reached $1 billion in sales, according to NielsenIQ. But through April 2024, sales rose to just $1.1 billion, with their growth rate softening to 12%, down from 44% at the end of 2023, due largely to celebrity cosmetic brand sales. Meanwhile, Logan Paul’s hydration beverage brand Prime pulled in $1.2 billion alone in annual sales last year, per Bloomberg.

While a wider swath of celebrity beauty brands have established near or above 1% household penetration, they only on average land at 2.8%, while food and beverage brands have achieved an average of 20.3% penetration, thanks largely to Prime (24.1% penetration) and MrBeast’s Feastables (4.7%), per Numerator. In beauty, Rihanna’s Fenty Beauty leads the pack with 4.8% household penetration, followed by Selena Gomez’s Rare Beauty (which is reportedly worth $2 billion) at 3.4%.

Keep reading here.—EC

Here’s a tough stat to see: Roughly 30% of online purchases are abandoned because customers can’t remember their passwords. The trick to getting shoppers across the finish line? You gotta streamline the checkout process—and passkeys can help.

Get this: Passage by 1Password is hosting a live webinar at 2pm ET on June 25 that will go all in on how businesses can slash abandonment rates by implementing passkeys into their checkout processes.

The talk will feature 1Password’s CEO Jeff Shiner and CMO Melton Littlepage in a town-hall-style discussion. They’ll cover everything from how to slash abandonment rates to getting started with passkeys.

Save your spot.

Last week in fashion news: One fast fashion giant now has more repeat customers than eBay, while a luxury retailer faces an inquiry over labor exploitation.

Temu gains repeat customers

Temu is winning the repeat customers race, beating eBay, Bloomberg reported. According to a recent survey by marketing firm Omnisend, 34% of shoppers purchase an item from Temu at least once a month. Meanwhile, only 29% of the 1,000 consumers surveyed shopped that frequently on eBay.

Why this matters: Temu’s success has been quick, but not surprising. The retailer is even giving e-commerce giant Shein a run for its money. A recent YouGov report found that almost 90% of Americans had at least heard of Temu. While not all of them were customers, it showed how much the brand has grown in terms of awareness since it launched in the US in late 2022.

Keep reading here.—JS

This Thursday is the longest day in the Northern Hemisphere, and naturally, retailers are running promotions to celebrate. Kroger is offering 45,000 free pints of its branded ice cream, while TGI Fridays is running an all-day $5 happy hour the next day, which it called the “Longest Friday of 2024.”

Here’s what else is going on in retail this week:

In holidays: While an increasing number of states are acknowledging Juneteenth as an official holiday, major retailers will be staying open that day. Don’t expect too many sales or Juneteenth-themed merchandise, however—retailers tried that out back in 2022, and there was a significant backlash.

Keep reading here.—AV

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