Morning Brew - ☕ The American way

American Giant’s $12.98 T-shirt for Walmart.
July 10, 2024

Retail Brew

Contentful

Hey there. With the number of customers still pulling out their checkbooks at checkout dropping, and retailers like Target, Whole Foods, and Aldi giving them the ax, it looks like checks are getting a reality check.

In today’s edition:

—Andrew Adam Newman, Alex Vuocolo, Erin Cabrey

STORES

American evolution

A worker sews American Giant T-shirts that will sell exclusively at Walmart in a Los Angeles sewing facility. American Giant

American Giant started in 2011 with a quixotic mission: to make high-quality clothing in the US even though, by its own estimate, 98% of clothing production by US brands had been sent overseas at that time.

By many measures, it has fulfilled that mission. Its flagship product, a hoodie, was declared “the greatest hoodie ever made” by Slate in 2012, and it now has a broad product line, including shirts, jeans, dresses, and outerwear.

However, manufacturing clothing from American-grown cotton at US facilities is, needless to say, more expensive than doing so offshore, and today that original hoodie—100% cotton, heavyweight, and with a metal zipper and grommets—retails for $138. Its cotton T-shirts retail for between $40 and $60.

American Giant founder and CEO Bayard Winthrop makes no apologies for the brand’s prices, but he does acknowledge they’re not in everyone’s budget.

“I’m realistic about how that [pricing] limits the number of people that can participate in high-quality, American-made stuff,” Winthrop told Retail Brew. “That’s a bummer. If you’ve been, like me, on this mission for 12 years, you feel like, ‘Shit, we can’t even sell it to the men and women who are making our product.’ That just doesn’t feel good.”

But now, in what at first blush may seem like the winner of Retail’s Strangest Bedfellows contest, American Giant, known for steep prices, is partnering with Walmart, whose motto is “Every Day Low Prices.”

Keep reading here.—AAN

   

PRESENTED BY CONTENTFUL

Feelin’ (your) content?

Contentful

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Contentful’s The retail guide to composable content can be your team’s blueprint. Propel your biz forward by learning what a market-leading composable content platform looks like, as well as:

  • how to retain customers with personalized, dynamic pricing
  • how to keep your in-store and digital content in one place—from storefronts to digital apps

All the above is possible, BTW, with a composable content platform. Save on engineering costs and streamline your operations across the board with Contentful’s findings as your (free) guide.

E-COMMERCE

Cool customers

Powered hand fan Tatiana/Getty Images

In June, beating the heat was a top priority for shoppers. Several items designed to help us stay cool popped last month, according to data Shopify provided to Retail Brew.

  • Sales of beach mats were up 188% month over month.
  • Evaporative coolers were up 174%.
  • Powered hand fans and misters were up 164%.
  • And child swim aids were up 93%.

Summer sports equipment also got a boost: Sales of volleyball nets popped 406%, and just in time for the European Cup, soccer balls and soccer uniforms were up 72% and 45%, respectively.

Keep reading here.—AV

   

COMMUNITY

Coworking with Ewelina Aiossa

Ewelina Aiossa headshot Ewelina Aiossa

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

Ewelina Aiossa is founder and general manager of skin care brand Topical Skin.

How would you describe your job to someone who doesn’t work in retail? Supporting skin health and skin rejuvenation through a cosmeceutical skin care line, Topical Skin. Making innovation and novel technologies accessible to the masses.

One thing we can’t guess about your job from your LinkedIn profile? I am a science and ingredient geek at heart who spends hours on PubMed and employs a pharmaceutical-like approach to skin care formulations. I am a big proponent of nutraceuticals and the supplement industry. I also have a broad experience launching award-winning beauty products, drawing inspiration from traditional Chinese medicine and nature.

What’s your favorite project you’ve worked on? Past favorite projects include incubating beauty brands for retailers—spearheading the SkinCeuticals flagship retail program, conducting clinical studies on topical formulations, and launching medical devices into the physician-dispensed channel. My current favorite project is building and scaling the Topical Skin brand.

Which emerging retail trend are you most excited about right now, and why? Social commerce and its almost unlimited potential.

Keep reading here.—EC

   

TOGETHER WITH PLACER.AI

Placer.ai

A fresh buzz is brewing. The talk of the town says there are two new players in the retail media space: Costco and Wawa. Placer.ai’s white paper explores how both stores are set to become powerhouses for advertisers looking to boost exposure and win over new customers. Get the scoop.

SWAPPING SKUS

Today’s top retail reads.

Changing hands: Etsy is rolling out an overhaul of its seller policies, requiring products sold on the site be made, designed, handpicked, or sourced by the sellers, supported by a new ad campaign emphasizing the importance of human touch. (CNBC)

Green light: A look at the “business of Brat,” Charli XCX’s latest album which has made neon green the hue of the summer, with brands and retailers. (Vogue Business)

Brewing up: With its latest $50 million equity financing round, Athletic Brewing is now valued at $800 million, double its valuation from two years ago, as more consumers turn to nonalcoholic beverage options. (the Wall Street Journal)

Calm + comfort: Inflammation doesn’t stand a chance against The Trailblazer. Buy yours today.*

*A message from our sponsor.

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