STARTUPS

Navigating new waters

Companies that were around for 100 years didn’t survive the pandemic. So how did first-time founders—barely a year on the job—do it? 

We spoke to the cofounders of Jinx, Fohm, and Cloud Paper, and yes, it did take a pivot.  

Go fetch: Terri Rockovich, the former VP of acquisition and retention marketing at Casper, left the mattress company for a new dream job: cofounder of DTC dog food brand Jinx.

The startup launched in January 2020 in what would end up being a good year for all things pets. Adoptions skyrocketed, and for the first time, US pet industry sales topped $100 billion. Jinx saw sales explode 17.5x from January to December, Rockovich told Retail Brew. 

But by mid-March, things weren’t so certain. 

• “Candidly, I was terrified. We had just moved into an office space that was three times the size of where we started, and we had just hired our first employees and spent real dollars on digital advertising.”

Rockovich credited her experience at Casper—where she had a team of more than 50—as a boon to communicate new strategies to her Jinx colleagues. The understanding was: “All plans are flexible.” 

Paper trails

Jerry Staub helped start Fohm, a toilet paper spray, in 2019 as a sustainable alternative to “flushable” wipes. “I saw this growing CPG category of flushable wipes, which were kind of gaining popularity and traction,” Staub told Retail Brew. 

The pandemic put that into overdrive. 

The B2B startup, which quadrupled growth from 2019 to 2020, quickly shifted to a DTC model to capitalize on TP demand. Sure, it was a gamble, but it beat the “risk-averse” approach of the Fortune 500 companies Staub used to work with at mobile ad platform Kiip. 

• “They would never dare to roll out a product that was less than perfect,” he said. 

Now, with profits in hand, Fohm can “go out and support our own growth,” Staub told us. 

To a T: Cloud Paper, which makes sustainably sourced bamboo toilet paper (and paper towels), also dove into DTC. The startup went from a B2B model to selling TP subscriptions in a matter of weeks. Almost immediately, cofounder Ryan Fritsch said, Cloud Paper had signed up thousands of customers: “People were going to buy whatever they could get their hands on.”

People thought it was luck, and that consumers would go back to their regular brands post-pandemic, but Cloud Paper has held on to its subscribers. Fritsch said his past life at Uber taught him to keep rolling along.

• “At Uber, there was a very clear vision in mind,” Fritsch told us. “That's one thing that we try to do here all the time...making sure we do really know what our mission is, where we want to be—not in five years, but in 15 years or longer.” 

Read more of our Q&A with the cofounders of Jinx, Fohm, and Cloud Paper here.—KM

FOOTWEAR

You've got a (shade) match

One “nude” shade has never fit all, so Nordstrom’s bringing footwear shoppers closer to their perfect match. Nordstrom.com and select Nordstrom stores now carry Rebecca Allen, a DTC footwear brand with “nude” heels and flats for several skin tones, in the brand’s first wholesale partnership.

Stepping in: Nordstrom has spent the past two years inking deals with DTC brands from Glossier to Harper Wilde. Stocking Rebecca Allen’s heels and flats allows Nordstrom to grow its DTC partner roster while investing in underserved consumers.

• Rebecca Allen told Fortune that, in preliminary research to start her brand, she learned that Black and Brown women only owned one “nude” shoe on average—“and it wasn’t even the appropriate tone for them,” she said.
• Some footwear brands have tiptoed into expanding their “nude” offerings, including fresh footwear shades at Louboutin. But varied options at Rebecca Allen’s price point—$150/pair—are still scarce.

Best footwear forward: Despite a recent return to Real Life™ activities, formal shoe sales are still about 40% below 2019 levels, Beth Goldstein, NPD executive director and accessories and footwear analyst, told Retail Brew. 

Goldstein said nude shades for diverse skin tones could lift retailers’ heel sales higher: brands like Rebecca Allen “serve a need that nobody was addressing before.”—HL

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In the guide, you’ll find advice on: Scandinavian-knit fishing sweaters for undersized dogs. Er, sorry, we’re shopping in another tab. Let’s try that again.

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STORES

Dollar for dollar

Bet on it: Dollar stores have boomed in the pandemic.

Top dollar: Atop the sector sits Dollar General, which has been experiencing massive growth—even when looking back to 2019, Ethan Chernofsky, VP of marketing at Placer.ai, told Retail Brew.

• For the first four months of 2021, Dollar General visits were up more than 20% compared to 2019, per Placer.ai data. 
• Visits in January, February, and April were up 9.7%, 0.2%, and 5.0% YoY, respectively, versus 2020. (March saw a dip; it was tough, even for Dollar General, to replicate the 2020 demand that flooded essential retailers.) 

Chernofsky doesn’t see things slowing down—despite talk of shoppers shifting their spending to restaurants and going out. He said comp sales could be even stronger for Dollar General, which releases Q1 earnings tomorrow. 

Zoom out: People are returning to stores—and that’s exactly where Dollar General and Co. are investing. 45% of all new stores opening in the US this year will be dollar chains, CNN reported, citing Coresight Research numbers. 

• Dollar General is also expanding beyond its value play with Popshelf, a concept tailored to suburban shoppers with more $$.—KM

WHAT ELSE IS BREWING…

• Dick’s Sporting Goods reported soaring sales for golf and youth sports supplies.
• Nordstrom’s entry into home goods hasn’t yet delivered. 
• Perch, a firm that snaps up bestselling Amazon brands, raised $775 million.
• Authentic Brands Group is reportedly eyeing an IPO.
• Shein may also have an IPO in the works.

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COMMUNITY

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

Over the course of her career, Sarah Shapiro has guided merchandising strategies at several Retail Brew regulars: Bloomingdale’s, Williams-Sonoma, even Brandless. These days, she’s heading up digital merchandising at Clorox. 

Shapiro can’t slip us an extra canister of disinfecting wipes, but she can give us a glimpse at her day-to-day responsibilities. 

Tell us a little more about your role: I help customers get to the good stuff and discover new favorites. I use data, mixed with creativity, to innovate products and bring them to market.

One thing we can’t guess about you from LinkedIn: My family and I turn everything into a branding and retail study and we love learning about cool companies. I taught my kids how to create a line sheet so they could properly "play store."

One retail trend you’re watching: The acceleration of BOPIS and new ways for customers to shop. There’s a much bigger focus on the customer and what their needs are. 

Hands down, the best fast food spot is...7-Eleven, just for the Coke Slurpees. And a can of Diet Coke close by, always. 

SWAPPING SKUS

Today’s top retail longreads.

Progress report: In the aftermath of George Floyd’s death, several retailers committed more shelf space to Black-owned brands. A year later, their efforts are materializing. (CNBC)

Against the grain: Despite the widespread WFH shift, many fashion brands are opening new physical offices. (Glossy)

On the positive side: Apparel and beauty brands will need to thread the needle when considering skin and body positivity standards across the world. (Business of Fashion) 

ICYMI

Catch up on the Retail Brew stories you may have missed.

• Amazon Prime Day 2021: What a June event means for retailers
• Google to open first IRL store
• Retailers reconsider mask policies