SUSTAINABILITY

Do as I say

Retailers know that sustainability, at this point, is not a choice. Shoppers? Well, it's less clear.

To find out more, we partnered with Harris Poll to run an exclusive, nationally representative survey of 2,000 adults earlier this month. One similarity: There’s a lot of talk...

You don’t know the half of it 

Americans are split—who’s surprised?—on whether it’s crucial for retailers to be sustainable, meaning they consider the environmental and social impact of doing business. More than half (54%) of those surveyed said it’s important, while 46% said nope (and probably rolled their eyes). 

• Two-thirds of Millennials and Gen Zers fell into the first camp, compared to 55% of Gen Xers and 42% of Boomers.
• Still, a majority across the board felt retailers need to make greener efforts. And 53% of those who don’t even think sustainability is essential would still buy a sustainable product if they saw one. 

Among the roadblocks to buying green, the biggest is spending that green. Almost half (46%) said higher prices are the main reason why they’re opting out. Plus, only 30% of shoppers make the effort to seek out sustainable goods.

Word games: Seven in 10 of those surveyed said they’re more likely to buy a product if it’s marketed as sustainable. And some labels do make a difference. 

• “All natural” and “eco-friendly” hold the most sway, while only about a quarter paid “carbon neutral” any notice. 

Most Americans (52%) pack reusable totes to shop sustainably, likely a result of plastic bag bans. And as for secondhand, you’re not alone, Olivia Rodrigo. Across demographics, about a third of shoppers buy via resale. 

But, but, but: Don’t let anything get in the way of two-day, one-day, or same-day shipping. More than half of respondents—56%—said faster delivery supersedes shopping sustainably. So the road to net-zero is a long one.

• Last year, the US produced a record 407 billion square feet of corrugated materials as e-comm exploded.
• Last-mile delivery emissions are predicted to jump by 30+% across 100 cities worldwide by 2030, per a 2020 World Economic Forum study.—GT

STORES

Timed right

Foxtrot is dancing across the nation. The trendy convenience store startup yesterday said it will add 50 new locations within the next two years. (Hey, we told you retail space will be gobbled up post-pandemic.) 

• The Chicago-based chain, which currently has 13 stores, is coming to cities including Los Angeles, Miami, and New York City.

Welcome to the neighborhood: These new locations will be 2x the size of Foxtrot’s current models, making room for more trendy snacks—and larger cafes. (The chain hired former Momofuku Executive Chef Tae Strain in May to head its culinary renaissance.)

• Foxtrot carries an average of 130 vendors per store, from name brands to local partners. It is also expanding its own private label collection. 
• The startup, which already promises 30-minute delivery, will also offer 5-minute pickup starting in August. 

Isn’t that convenient? While the expansion has been in the works for years, Foxtrot cofounder and CEO Mike LaVitola told Retail Brew the timing is ideal because of falling rents. 

• Foxtrot isn’t alone. Food and beverage tenants signed the most retail leases in Manhattan during Q2, per CBRE, when average rents sank nearly 11% YoY. 

And IRL is making a comeback. While Foxtrot saw more than 100% YoY sales growth in 2020, largely thanks to its e-comm biz, it expects to build on that with brick and mortar. 

• “As we are hopefully coming out of the pandemic here, all signs are pointing to another really big uptake again within our retail stores,” LaVitola said.—KM

SPONSORED BY ROUTE

We Know What You’ve Been Craving...

Connection—which hasn’t been easy this past year. Odds are, you’ve got a hankering to build a robust bond between shoppers and your brand.

Lucky for you, we’ve got just the thing to satisfy your connection craving. 

Route Connect is the virtual event that’s bringing together the best e-commerce minds for a full day of intel and innovation. The industry’s brightest will dish the deets on exclusive know-how, actionable insights, and tangible strategies to drive authentic connection with modern consumers.  

Featuring speakers like Sennai Atsbeha, VP of brand marketing at Gymshark, and Swan Sit, "Queen of Clubhouse," you’ll be able to learn from the pros and develop your e-commerce game plan for the future.

Registration is free, and it includes a giveaway. That’s right. Five registrants will be chosen to attend the event IRL in New York City—all expenses paid.

Sign up before July 27 for your chance to win.

E-COMM

Deal us in

Google is still on the hunt. In its latest move to become an e-comm destination, the tech giant today announced it will highlight discounts in its Shopping tab. 

• A designated deals tab will be added to search in October for major sales events like Black Friday and Cyber Monday. 

Deals on deals: Searches for “discount code” are up 50% from 2020, noted Matt Madrigal, Google’s VP and GM of merchant shopping, in a blog post. So while people are eager to spend, they’re still watching their wallets.  

• A July 2020 survey found that coupons or discounts would motivate 61% of shoppers to try a new brand, and more than half said it could spark an impulse purchase. 

On a spree: Google’s been making its own shopping deals lately, too. In the last few months, it announced partnerships with Shopify, Square, WooCommerce, and GoDaddy to incorporate more merchants into search. (And don’t forget its new IRL store in New York City.) 

Google, which says it sees more than a billion shopping sessions a day, seems agnostic about where people actually click “buy”—whether its own platform or a brand’s site.

“We are not the retailer,” Bill Ready, president of commerce and payments at Google, told Bloomberg in May. “We have no aspirations to be the retailer.” But it does want to be the place that drives those purchases. 

• It won’t be easy. Most US consumers still start their online shopping journey on Amazon (53%) vs. a search engine like Google (23%), per an August 2020 report.—GT

WHAT ELSE IS BREWING…

• Ulta and Target revealed their new partnership's brand lineup. 
• Coca-Cola reported that Q2 revenue surpassed 2019 levels. 
• LVMH is purchasing a majority stake in Off-White. 
• Rent the Runway has confidentially filed for an IPO. 
• Madewell and ThredUp partnered on a secondhand denim platform.

SPONSORED BY BAZAARVOICE

Being a follower is the new leader. 85% of consumers find user-generated content (UGC) more influential than brand photos or videos. Shoppers are 6x more likely to buy something if the product page contains social images. Read how you should be using visual UGC here.

SWAPPING SKUS

Today’s top retail reads. 

Treasure hunt: How Dollar General is reimagining the dollar store for the modern middle-income suburban shopper. (Retail Dive)

Thrift vs. haul: Depop and vintage finds aside, Gen Z’s fast fashion habit will be hard to out-thrift. (Vox)

You time: Beauty brands are using questionnaires and surveys to serve up personalized products. (Vogue Business)

COMMUNITY

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

What’s in a package design? For Elisabeth Schrock, Brandable Box's e-commerce marketing analyst and all-around data guru, a box is worth a thousand words.

How would you describe your job to someone who doesn't work in retail? I help small business owners learn about custom packaging and how it helps their business grow. 

What's one thing we can’t guess about your job from your LinkedIn profile? In addition to managing all our digital marketing, I work closely with our products team to ensure we're constantly launching products that answer the needs of our customers.

What's your favorite project you've worked on? At the start of Covid, our team quickly launched custom pizza boxes to support restaurant owners as we saw the trend of takeout and food delivery grow. They’re now one of our top sellers.

One retail trend you’re excited about: Omnichannel. While it's been around for years, I'm excited to see the innovative ways it expands and reaches new customers. There’s never been a more perfect time.

ICYMI

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

• The fall of Manhattan’s Astor Place Kmart
• Casper partners with Bed Bath & Beyond for its first shop-within-a-shop
• Walmart tests all-self-checkout supercenter store in Texas