Morning Brew - ☕ Shelf reflection

An eventful year in the grocery industry.
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It’s Monday, and while Jack Frost may well be nipping at your nose, to paraphrase “The Christmas Song” first recorded by The Nat King Cole Trio, it’s less likely that you’re roasting chestnuts on an open fire, at least locally sourced ones. Chestnut trees are “virtually extinct” in the US, the Associated Press reported recently, and while forest scientists are optimistic about bringing them back, they’ve been known to go out on a limb.

In today’s edition:

—Erin Cabrey, Alex Vuocolo, Katie Hicks

STORES

A conveyer belt of groceries at a checkout aisle and a man waiting to pay.

Brandon Bell/Getty Images

It’s been quite the year for the grocery industry, between the will-they-won’t-they drama of the Kroger-Albertsons merger, store openings and closings, (or, in the case of Foxtrot, stores closing and then opening), and the big private-label push. Here were the top stories from the year in grocery.

The Kroger-Albertsons saga: This year saw Kroger and Albertsons quickly shift from potential merger partners to adversaries. After Kroger and Albertsons announced their plans to merge in October 2022, the grocery world eagerly anticipated the Federal Trade Commission’s response—and it came in February, when the agency announced it was suing to block the deal, issuing administrative and federal complaints. The FTC claimed the merger would lead to elevated grocery prices, reduce product quality, and give consumers fewer grocery options.

The retailers pushed back, and in August, Kroger sued the FTC, saying its proceeding in administrative court was unconstitutional. In September, it faced off with the FTC in federal court in the District of Oregon during a three-week trial, raising questions about the definition of “competition” within the grocery industry.

Keep reading here.—EC

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RETAIL

Holiday shopping

Nicoletaionescu/Getty Images

Having a birthday close to the holidays can be rough, but the Hello Kitty brand isn’t skimping on the celebration for its 50th anniversary this week. The iconic character will mark the occasion on Wednesday with a Bruno Mars performance at Park MGM resort and casino in Las Vegas, and a meet-and-greet with the kitty herself.

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

In events: The National Retail Federation is hosting a webinar on Thursday offering an analysis of how president-elect Donald Trump’s proposed tax cuts could impact US imports. The organization will also share the findings of a report on how these policies, which include a 10%–20% tariff on all imports and a 60%–100% tariff on Chinese imports, could impact common household goods.

Keep reading here.—AV

MARKETING

Heart and shopping bag icons floating around a hand holding a phone.

Illustration: Anna Kim, Photos: Adobe Stock

Since it was founded in 2020, hair-care brand K18 has always tried to “stay scrappy” in its marketing, CMO Michelle Miller told us.

Looking back, Miller said K18 “was doubling down on TikTok when none of the other hair-care brands were doing it,” and has since embraced TikTok Shop and developed a deep understanding of how paid media works on the platform.

The brand, which was acquired by Unilever in 2023, has recently begun experimenting with creators and celebrities, including a two-year ambassadorship with Simone Biles announced earlier this year and some short-term partnerships with creators including the “cucumber guy” Logan Moffitt and Alix Earle.

Keep reading here on Marketing Brew.—KH

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SWAPPING SKUS

Today’s top retail reads.

Numerical on 34th Street: Macy’s, which previously said it would close 50 stores in the next year, announced it has raised that number to 65. (CBS News)

Trust but Vera-fy: WHP, which owns brands including Bonobos and Rag & Bone, reportedly is in a deal to purchase the Vera Wang wedding-dress brand. (the Wall Street Journal)

To sell in a handbasket: Why shopping baskets are getting harder to find in stores. (Marketplace)

Watch now: Could TikTok Shop's rapid growth help it dethrone Amazon? (YouTube)

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HOT TOPIC

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

While the saga over the proposed merger between Kroger and Albertson’s may seem to have had a longer run than Grey’s Anatomy, the deal was announced just over two years ago, in October 2022. However, thanks to rulings in Washington and Oregon and a lawsuit from Albertsons accusing Kroger of breach of contract, the deal appears to be well and truly kaput. The FTC had opposed the merger, arguing it would limit competition and result in higher prices for consumers.

You tell us: What do you think about the proposed Kroger-Albertson’s merger appearing to be dead? Cast your vote here.

Circling back: Last time, we asked about Trump’s proposed 25% tariff on Mexico and Canada and an additional 10% tariff on China, namely whether you thought it would result in widespread higher prices for shoppers. Nearly 9 out of 10 (86.9%) said yes, the tariffs would result in higher prices, while 11.3% said they thought the tariffs wouldn’t result in higher prices, and 1.8% of you didn’t know or weren’t sure.

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✢ A Note From PayPal

¹ PayPal internal data, 2023. Venmo is only available in the US

² PayPal internal data from August 2 to September 30, 2024. Comparing Fastlane accelerated shoppers vs. non accelerated shoppers for merchants that have integrated Fastlane.

         
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