LABOR

Scooping up workers

Bruster’s Real Ice Cream hasn’t faced all the struggles other food chains have during the pandemic. Same-store sales increased 16.7% in 2020, a record for the Bridgewater, Pennsylvania-based company. And they’re doing even better this year: up 26.9% so far.

The metaphorical cherry on top? The ice cream chain didn’t lay off any employees from its ~180 franchised locations either. 

But hiring this summer has been a different story—or rather, similar to one many chains have been telling. CEO Jim Sahene told Retail Brew that Bruster’s has faced one of the most competitive job markets ever in the past couple of months.

“In the current environment, due to overall labor shortages, the talent pool has been smaller,” Sahene said. 

• During peak season, Bruster’s employs 20 to 25 workers per location, and 10 to 20 throughout the rest of the year. 
• The company usually fills open roles through “word of mouth,” Sahene said. This year, they’ve had to increase wages and offer other sweet incentives (more on that later).  

School’s out: As a seasonal operation, Bruster’s relies heavily on young workers—high school and college students make up ~80% of its staff during the summer—but lately, they’ve had competition. 

• In June, teenagers accounted for 36% of new hires, per an analysis of US labor data by payroll provider Gusto. From 2017 to 2019, that figure was 10%. 

“Employers have had to compete to hire young people because there are too many service sector jobs that pay low wages and not enough young people willing to work for those low wages,” Yana Rodgers, a professor of labor studies and employment relations at Rutgers University, told Retail Brew. But if employers sweeten the deal for more experienced workers, teens could be left with low-paying service jobs, she added.

• A report from The Washington Post indicates this is already happening in states that cut pandemic unemployment benefits. 

Extra toppings: To attract new hires, several Bruster’s locations have offered referral fees and sign-on bonuses of $50 to $200, Sahene said. Wages increases have also helped Bruster’s “remain competitive,” he added.   

• Starting rates range from $8 to $15/hour. 
• Another Pennsylvania ice cream shop doubled pay to $15 and received 1,000+ applications for 16 jobs in a week. 

One more thing: Beyond low wages, a record number of people have left the food service industry because of poor working conditions and stressful environments. 

Bruster’s said it tries to tackle the issue through a mentorship program, which teaches its young workers about entrepreneurship. “Fostering an optimistic attitude,” especially during the pandemic, Sahene said, is crucial to retaining talent.—KM

SUSTAINABILITY

In the (reusable) bag

It’s not just New York bodegas anymore—reusable bags are making their way to big-box retailers. 

An array of models will hit nine northern California-based Target, Walmart, and CVS locations this summer—the next phase for the Consortium to Reinvent the Retail Bag, an industry effort to cut plastic bag waste. The six-week test period will run through early fall.

• It will include pilots of reusable delivery bags and “enabling technologies” that collect data on customer use and recycling habits. 
• The initiative is also looking to Goatote, a kiosk that distributes reusable bags, and a 99Bridges program that incentivizes sustainable consumption, as two other tech “solutions.”

An easy way in: According to Retail Brew’s survey with Harris Poll last month, reusable totes are the way most Americans (52%) shop sustainably. “Consumers will always choose the path of least resistance” on environmental efforts, Katie Thomas of the Kearney Consumer Institute recently told us.

“We think a lot about how to change behavior rather than try to tap into existing behavior. It really comes down to closing some of those gaps and putting it less on the consumer to have to make the decision, when really it's supposed to be a corporate initiative.” 

• Walmart, Target, and CVS—founding members of the Consortium—have already shelled out $15 million on the effort.—JG 

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RESALE

Global goods

We’re not the only ones gearing up for post-pandemic travel. Poshmark has been plotting its global expansion, first into Australia last February, and now India.

“India is an ideal fit for our unique social commerce model, both from a cultural and business perspective...the market opportunity is massive and growing,” Poshmark founder and CEO Manish Chandra told The Business of Fashion. 

• Poshmark isn’t the only company with eyes on India’s 622 million internet users, as BoF noted. Last month, the H&M Group helped lead a $45 million series B funding round for Indian social commerce platform Trell. 
• Flipkart also rolled out its own social shopping app, Shopsy, in July.

Teamwork: Poshmark already has a local team in its India office that’s been working on US and global operations for eight years, per WWD. Moving forward, they’ll be tasked with programming “virtual Posh Parties and trends” that cater to the Indian market.

• The India-based office employs the most Poshmark workers outside the US.

The big picture: India’s e-commerce sales climbed 30% in 2020, and this year eMarketer expects a 27% increase, to $66.76 billion. The growing thrift trend in India, buoyed by online vintage shops, will no doubt contribute to that figure.—JG

WHAT ELSE IS BREWING…

• CVS Health is the latest employer to boost wages to lure talent.
• Kroger plans to add ghost kitchens to some of its grocery stores, thanks to a new partnership with Kitchen United. 
• PepsiCo will sell Tropicana and its other juice brands to a private equity firm for $3.3 billion. 
• Wolverine Worldwide acquired athleticwear brand Sweaty Betty for $410 million. 
• Tyson Foods is mandating the Covid vaccine for all its US employees. 

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SWAPPING SKUS

Today’s top retail reads. 

X factor: Alibaba’s new digital-first warehouse club, Store X, may be the future of omnichannel shopping. (Grocery Dive)

Shopping list: Martha Stewart has already entered our homes. Now, the brand wants to take over our grocery stores. (Forbes)

Crew love: Contrary to popular belief, preppy is still in, which bodes well for the J.Crews of the world. (Fashionista) 

COMMUNITY

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

Kait Stephens knows QR codes aren’t just for cocktail menus. As CEO of Brij, she helps power one-touch reorders, recommendations, and rewards for brands’ consumers with the technology.

The “Aha!” moment: When I was a retail investor, I saw how, through DTC, brands know everything about their customers. But when selling through third-party retailers, brands know next to nothing about their customers. 

How would you describe your job to someone who doesn't work in retail? As the CEO, I'm a full-time salesperson—selling the vision to investors, the mission to our team, and then, of course, selling our product to customers.

What's your favorite project you've worked on? Our first customer was the children's brand Andy & Evan. It was thrilling to have a customer validate our idea and even more exciting to watch it launch.

Hands down, the best fast food restaurant chain is...Chick-fil-A—I love their chicken nuggets.

ICYMI

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

• Retailers in tough position after CDC’s updated mask guidance
• IT service firm Placewise aims to digitize the shopping center experience
• Lazy fashion has made its way to our ears