Morning Brew - ☕ Splitting hairs

Beauty brand loyalty online.

Let’s start the week with some news for fans of plant milk. A new oat milk, Milkadamia Flat Pack, comes not in cartons but rather in thin sheets to which you add water. Along with dramatically reducing packaging, it does not—like all the flat-packed Ikea furniture—require an entire weekend to assemble.

In today’s edition:

—Erin Cabrey, Alex Vuocolo

MARKETING

Online mobile e-commerce beauty and makeup shopping, social commerce

Eyeem Mobile Gmbh/Getty Images

The US beauty market is continuing its streak of annual glow-ups—that is, year over year dollar sales boosts—and e-commerce sales may be stealing some of brick-and-mortar retailers’ sparkle.

Composed of hair, skin, cosmetics, and nail products, the market is on a five-year growth streak, with overall beauty sales rising over 6% last year to $107.5 billion, according to a new State of Beauty report from NielsenIQ. Last year, e-commerce sales increased 11.1% to $45.7 billion, while in-store sales rose 2.8% to $61.8 billion.

Online’s share of the total US beauty market has now reached 43%, up two percentage points YoY. In the next three to five years, that number is likely to blossom to 50%, Anna Mayo, VP of NIQ’s beauty vertical, told Retail Brew.

“We’re definitely seeing this transition to a digital-first industry,” she said, a move which has impacted not only where consumers shop, like Amazon and TikTok, but also how they shop, what they buy, and how loyal they are to brands.

Eye catching: Growth in e-commerce over the last five years has been driven by innovation in the channel, Mayo noted, with the advent of options like click and collect, social selling on platforms like TikTok, and the expansion of Amazon’s beauty assortment.

Keep reading here.—EC

Presented By Bloomreach

STORES

Kroger grocery supermarket

Jetcityimage/Getty Images

Last week was a big week for Kroger, which announced the sudden resignation of its CEO Rodney McMullen and reported fourth quarter and full-year earnings days later.

McMullen, a Kroger vet who started as store clerk in 1978, resigned after “a board investigation of his personal conduct” found his actions didn’t align with the company’s business ethics policy, the company said. Kroger noted his actions didn’t involve other Kroger employees. McMullen lost over $11 million in unvested stock and options as a result, per the Cincinnati Enquirer.

Kroger’s would-be business partner Albertsons, too, announced its CEO’s departure on the same day as McMullen’s resignation. Vivek Sankaran, the chain’s leader since 2019, will leave on May 1 as part of a planned retirement, after which COO Susan Morris will assume his role. The executive moves come after the grocery chains’ ill-fated attempt to merge, which ended in termination, and ultimately a lawsuit, last year.

Keep reading here.—EC

STORES

Dollar General sign

Scott Olson/Getty Images

With St. Patrick’s Day fast approaching, beer giant Guinness is offering 40 days of giveaway sweepstakes, including a grand prize trip to the new Open Gate Brewery in London. Then on the big day, fans can snap and share photos of the celebration for a chance to be featured in their next ad.

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

In data: The consumer price index for February is coming out on Tuesday. The inflation measure rose a higher-than-expected 0.5% month over month in January, up from 0.4% in December. Now economists are forecasting the gauge to slow to 0.01% this month, according to the Federal Reserve Bank of Cleveland, though many expect President Trump’s tariffs to raise prices in the near future.

Keep reading here.—AV

Together With Aptos

SWAPPING SKUS

Today’s top retail reads.

CV…less: CVS will open a dozen smaller-format stores this year, about half a typical store’s size, with full-service pharmacies but limited retail offerings. (the Wall Street Journal)

Bay watch: A restructuring plan from Hudson’s Bay is expected to keep about half of Canada’s oldest retailer’s 80 stores open. (the Globe and Mail)

Bridging the Gap: Why Gap’s strong Q4 after a couple decades of struggling looks promising. (Marketplace)

Level up your loyalty: See how Bloomreach can help you transform your customer retention strategy in their webinar on March 12. All it takes is a li’l bit of consequential AI to create personalized customer experiences.*

*A message from our sponsor.

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.

Apps from restaurant chains including Starbucks, Dunkin’, and McDonald’s have boomed in recent years, no doubt because they unlock exclusive deals for discounted or free food. But a recent Eater article also noted that the apps also can vacuum up personal data like location tracking, “psychological trends,” and even track social media accounts.

You tell us: Have you ever foregone downloading or using restaurant apps out of privacy concerns? Cast your vote here.

Circling back: Last week, we told you about a group of Democrat lawmakers who signed a letter to President Trump complaining that some egg producers and supermarkets were using the bird flu crisis to hike up egg prices inordinately to increase profits. So we asked if you thought producers and supermarkets were exploiting the bird flu crisis to raising prices inordinately to boost profits, and all of you clutched your pearls and said of course companies would never do something like that. Kidding! More than 8 out of 10 of you (81.6%) said yes, you believe egg producers and supermarkets were exploiting the avian flu crisis to raise prices even higher than necessary to boost profits. Just 15.5% of you thought the companies weren’t exploiting the crisis for profit, while 2.9% of you didn’t know or weren’t sure.

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