Morning Brew - ☕ The wholesale bunch

Wholesale through Amazon shake-up.
October 24, 2024

Retail Brew

Needed

Hi there. Goldfish says it’s renaming the brand to a “more adult” name—Chilean Sea Bass—for a limited time in an effort to attract an older demographic of snackers. If the stunt works, we’re guessing Teddy Grahams could be getting a grizzly rebrand.

In today’s edition:

—Vidhi Choudhary, Alex Vuocolo, Andrew Adam Newman

E-COMMERCE

Efficiency, efficiency, efficiency

Amazon Nathan Stirk/Getty Images

Last month, Amazon started sending out termination notices to some brands that sell items in bulk on its platform. The brands affected appear to be part of Amazon’s 1P invite-only program, where CPG giants like Nestle and P&G sell inventory in bulk to Amazon.

“We’ve made the decision to stop sourcing products from your company, as part of our regular review of product offerings, and a strategic realignment to optimize our operations—effective Nov. 9 our vendor relationship will be terminated,” read one of the termination notices sent by Amazon’s Vendor Central Team shared on LinkedIn.

“Like all businesses, we regularly review our product offerings and occasionally make changes,” wrote Maria Boschetti, an Amazon spokesperson, in an email to Retail Brew. Amazon made the decision to stop sourcing products from some US vendors following a routine review.

Vendors that have received termination notices are feeling overwhelmed, experts told Retail Brew. One option for those vendors affected may be to switch to selling on Amazon’s marketplace as a third-party seller.

Keep reading here.—VC

   

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STORES

Kid Cutty

Target storefront Stefani Reynolds/Getty Images

Another day, another price cut. Target on Tuesday announced that it will reduce regular prices on more than 2,000 items this holiday season to help customers save money on gifting and preparation. The prices getting a haircut range from essentials such as toilet paper, cold medicine, and frozen vegetables to toys, board games, and beauty products.

The retail giant had previously committed to cutting prices on about 5,000 items over the summer. It said it surpassed this number, with a total of 8,000 price reductions so far this year. This latest round of cuts should push the number to 10,000 for 2024.

Keep reading here.—AV

   

MARKETING

Rainbow disconnection

A graphic illustration of a megaphone with the colors of the Pride flag emanating from it. Daniel Megias/Getty Images

When it comes to representing them positively in advertising, LGBTQ+ respondents surveyed rank quick service and fast-casual restaurants last. So says recent data from LGBTQ+ streaming platform Revry and Nielsen.

Respondents were asked to choose what category among seven did the best job at representing them in advertising, and only 2% chose quick service and fast-casual restaurants. That’s far behind the top three choices: beauty and skincare (29%), retail (27%), and healthcare and pharmaceuticals (24%). Nearest to fast-food brands at the bottom of the list were automotive (4%) and grocery and household brands (6%).

Keep reading here.—AAN

   

SWAPPING SKUS

Today’s top retail reads.

Hat trick: How Michael’s is catering to cash-strapped shoppers seeking DIY Halloween costumes. (Modern Retail)

Dearly department: Bloomingdale’s CEO Olivier Bron details how American department stores can get back on track. (Business of Fashion)

Shelf preservation: Despite the concerns of Congress, grocers and analysts say the implementation of digital shelf tags will not contribute to surge pricing. (the New York Times)

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