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Ilia Beauty’s customer acquisition strategy.
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July 26, 2024

Retail Brew

Impact.com

​​It’s Friday, and here’s a bit of retail industry gossip before the weekend: The alleged inventor of Flamin’ Hot Cheetos, Richard Montañez, is suing Frito-Lay owner PepsiCo for damages based on the company’s denial of his role in coming up with a popular snack in a Los Angeles Times piece.

In today’s edition:

—Erin Cabrey, Jeena Sharma

E-COMMERCE

Tough customer

Ilia customer acquisition strategy Morning Brew Inc./Retail Brew

Cherene Aubert is the VP of e-commerce and digital at clean beauty brand Ilia Beauty, where she said she’s focused on “setting the foundation for the next stage of growth” for the brand, which Famille C Venture acquired in 2022. But navigating the e-commerce landscape and acquiring new customers hasn’t been easy, especially as competition has increased and consumer expectations have grown. To discuss Ilia’s drivers to success, we caught up with Aubert at a virtual Retail Brew event. Watch the full conversation with Aubert here.

What are some of the challenges that you’re seeing in the e-commerce space and the customer acquisition space?

It’s not as cheap as it was to acquire customers, back in the day, maybe five years ago, 10 years ago…The playbook has changed. Privacy laws have changed, the way that consumers shop and behave. The amount of choice and competition that’s out there has changed in the e-commerce space. Amazon has grown considerably, and retail businesses are investing a lot more in their dot-com side of the house, so there’s just a lot more competition in general. And I would say social ads are just not enough for continued, long-term scale the way that they were, so brands have to start to invest in brand building and establishing their moat from Day 1, and what that means at different sizes and scales is different.

Keep reading here.—EC

   

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STORES

Adapt yourself

Walmart Morning Consult adaptive retail Walmart

“We’re in a new era of retail,” according to Suresh Kumar, Walmart’s global chief technology officer and chief development officer, and this week, the company released its first annual State of Adaptive Retail Report in partnership with Morning Consult, identifying four key trends retailers need to succeed.

The retailer defines “adaptive retail” as “an evolved form of retail that brings shopping to the customer in exactly the way they want and need.” The report analyzes survey responses from 2,200+ US shoppers to get a sense of those retail wants and needs.

Keep reading here.—EC

   

FASHION

Fashion dispatch

A woman dressed in Louis Vuitton with a Louis Vuitton handbag Kirstin Sinclair/Film Magic via Getty

This week in fashion: Shares of one major luxury conglomerate slumped, while another luxury retailer saw a profit boost.

LVMH share price drops

The stock price of one of the biggest luxury conglomerates in the world, aka LVMH, just slipped as much as 6.5% after its Q2 sales grew just 1% YoY to 21 billion euros, missing analysts’ estimate of 21.6 billion euros. The report came amid a consumer spending slowdown in China.

Why this matters: LVMH has been an outlier in a sea of luxury brands that have been impacted by a sales slump. Even Kering, one of its largest competitors, has been struggling with dwindling sales numbers. And much like other conglomerates and fashion labels, LVMH has finally fallen victim to a drop in profits in Asia, indicating that things are tough for pretty much everyone.

Keep reading here.—JS

   

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SWAPPING SKUS

Today’s top retail reads.

Pressing pause: Kroger and Albertsons have agreed to temporarily pause their planned $20 million merger while federal regulators move forward with a lawsuit to block it. (the Wall Street Journal)

Going digital: Hasbro beat Wall Street expectations in Q2 with some help from its growing digital segment. (CNBC)

Taking a breather: Lululemon is pausing sales of its Breezethrough yogawear to make adjustments to the product. (Bloomberg)

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