Morning Brew - ☕ Piñata yada

Target’s social media posts draw ire.

Hi. The Conference Board reported a seven-point decline in consumer confidence in February as consumers become increasingly pessimistic amid inflation and Trump’s trade war. It’s the most dramatic decline since August 2021, a summer when Covid-19 saw a resurgence as an angsty Olivia Rodrigo dominated the airwaves. Four years later, it’s still brutal out here.

In today’s edition:

—Andrew Adam Newman, Jeena Sharma, Erin Cabrey

MARKETING

Target's Bullseye in a form of a pinata.

Anna Kim

Target may not have been too surprised at the social-media drubbing it got on February 2, when— days after announcing that it was curtailing its diversity, equity, and inclusion (DEI) initiatives—it posted to Instagram, TikTok, and Facebook urging customers to purchase items from its “new #BlackHistoryMonth collection.

“You could not think posting this would yield positive comments,” user @domnthecity commented on Instagram, where, indeed, other commenters slammed it as “performative,” “gaslighting,” and “hypocrisy.”

But while that response may have been explicable for Target, which until recently promoted DEI passionately, it could not have predicted what happened next.

In every Target post since that one—a dozen or more each to TikTok, Facebook, and Instagram when this story was published—it has become a piñata for commenters who profess to be once-loyal customers who’ve taken their business elsewhere because of its DEI backsliding. Commenters have whacked Target for retreating on diversity, even if the posts are not diversity-related. And, buoyed by the platform’s algorithms, the criticisms dominate the top comments.

Keep reading here.—AAN

Presented By Hightouch

SUPPLY CHAIN

Tariffs trump first administration

Dilok Klaisataporn/Getty Images

The import tariff debate remains hot, even as President Trump delayed the imposition of proposed 25% tariffs on Canada and Mexico by 30 days. For most fashion brands, the bigger hit will come from any tariff increases from China, which remains one of the biggest sources for textile and fabrics.

It’s why some fast fashion retailers such as Shein are getting ahead of any permanent changes and are reportedly urging many of their apparel suppliers to diversify production to countries like Vietnam.

The move has been in the works for a few months, and to sweeten the deal, the retailer is also offering “higher procurement prices” of up to 30%, Bloomberg reported.

Shein is one of the biggest fashion players to consider diversifying its sources, and in a recent Retail Brew report, experts agreed it was a smart move.

Keep reading here.—JS

COMMUNITY

Izzie Kalaja Frankie4

Izzie Kalaja

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

Izzie Kalaja is director of operations and sustainability at Australian footwear brand Frankie4.

How would you describe your job to someone who doesn’t work in retail? I work at a women’s comfort footwear brand. Once our design team creates a beautiful range for the season, it’s my team’s job to forecast demand, set pricing, place orders with our factory partners, get those shoes in the country, and report on how quickly that stock is sold around the world. Plus, it’s on us to do all of that as responsibly as we can (and as a B Corp).

One thing we can’t guess about your job from your LinkedIn profile? Sometimes it comes down to jumping in and out of trucks to get the job done.

What’s your favorite project you’ve worked on? My favorite project has been leading our B Corp certification journey. The journey to certification is rigorous and requires a significant amount of documentation and collaboration across the business. However, doing business responsibly is one of our core values—everyone was bought-in.

Which emerging retail trend are you most excited about right now, and why? I’m really excited for brands to share more about what’s under the hood and take responsibility for supply chain transparency.

Keep reading here.—EC

Together With Bazaarvoice

Rolled up money next to three bags labeled "Packing, Inventory, and Staffing" balancing on a see saw.

Marco Bertorello/Getty Images

Struggling with high e-commerce costs? Discover three key strategies to cut overhead expenses, from packaging and inventory management to smart staffing. Learn how to optimize operations and boost profitability today.

Check it out

SWAPPING SKUS

Today’s top retail reads.

Home free: Home Depot ended its eight-quarter streak of declining same-store sales, with 0.8% growth in its most recent quarter. (CNN)

Eggs-acerbated: Egg distributor Cal-Maine Foods has reported soaring profits, leading Democratic leaders to question whether sky-high egg prices have been driven solely by bird flu-related shortages. (the New York Times)

Life of the party: Grocers are leaning into “micro holidays,” like Mardi Gras, St. Patrick’s Day, and even opening day in baseball, to generate sales. (Progressive Grocer)

Missed you: In a recent webinar, WHOOP discussed how they used Hightouch’s AI Decisioning to power a 10% lift in cross-sells in just three weeks. Catch up on all the learnings in this video.*

*A message from our sponsor.

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