Morning Brew - ☕️ Working on it

Understanding worker efforts to unionize.
Morning Brew February 25, 2022

Retail Brew

Listrak

Hello. Last week, we asked for tips and tricks to help us store our avocados before they turn into a mushy mess. And you all delivered. Among our favorites? One reader said their parents, who are bold enough to buy avocados in bulk from Costco, wrap them in tin foil and store them in the veggie crisper. And they stay ripe for weeks. We’ll report back in March on our findings.

Now, onto the newsletter (and our stories, linked below).

In today’s edition:

—Jeena Sharma, Katishi Maake, Erin Cabrey

LABOR

Power play

A Starbucks cup is stuffed full of union voting ballots. Francis Scialabba

This week, ballots were sent to some 1,300 workers at a Hershey’s manufacturing plant in Virginia, who are voting on whether to unionize.

Next week, 100+ retail employees at outdoor retailer REI’s Soho store are scheduled to vote on whether they will become the company’s first unionized location.

  • And, by now, you’re well aware of the ongoing unionization efforts at Amazon warehouses (a revote in Bessemer, Alabama, and an election scheduled in Staten Island) and at Starbucks’ locations beyond Buffalo.

But what’s driving the push? Retail Brew spoke to two labor professors to learn more.

Speaking up: One reason, according to Francis Ryan, an assistant professor and labor historian at Rutgers University School of Management and Labor Relations, is that workers are recognizing their power, especially as companies struggle under the weight of labor shortages.

“They realize that when you have such short staff, sometimes by accident, it can bring the daily function of the coffee shop to an end,” Ryan told us. “They realize that these operations can’t function without their labor, which has [further] empowered them to realize that they could perhaps leverage that to get better conditions.”

For some, concerns surrounding health and safety protocols might be another factor amid the pandemic. Workers simply are “fed up,” said Ruth Milkman, the chair of the labor studies department at the CUNY School of Labor and Urban Studies.

“In many parts of the country, it’s pretty easy to get another job if you are discontented,” she noted to us. “Taking the risk of a strike or organizing a union, which people get fired for routinely in this country, it feels more reasonable to do now than it might have three years ago.”

Click here to read the full story.—JS

        

FUNDING

Booted up

Brunt boots and apparel Brunt

Brunt is ready to lace up and get to work. The Boston-based DTC workwear brand closed a $20 million Series B this week, which will be used to bolster inventory, bring on new employees, and ramp up marketing efforts.

The capital comes on the (durable) heels of Brunt’s first full year in business (it debuted in September 2020), which saw sales surge 80% higher than it expected, founder and CEO Eric Girouard told Retail Brew. While he declined to share specific figures, Girouard said Brunt sold out of its first 5,000 pairs of boots (price point: $200–$250) in just nine days.

Raising the bar: That momentum carried over into 2021—Brunt even introduced apparel—but the trouble was keeping boots on the ground in supply.

  • Despite selling four different types of work boots, Brunt was only fully stocked (across all styles and sizes) for 11 days (or 3%) of the year, according to the founder.
  • Funding should help get that figure up, Girouard said, ballparking 75% as an inventory threshold for core styles in 2022.

“We didn’t realize how voracious this customer would be,” he said. “If we’re not in stock, they need work boots like next week. So they’re going somewhere else if we don’t have it.”

Looking ahead…Brunt wants to roughly triple the size of its team, from 11 to 30, by the end of the year. It also hopes to boost sales by 200% from 2021.

Click here to read the full story.KM

        

TOGETHER WITH LISTRAK

What does a perfectly orchestrated campaign sound like?

Listrak

When a perfectly orchestrated marketing campaign hits just right—executed across multiple channels and acting on data from lots of different sources—it sounds beautiful.

And we’re not being metaphorical. We literally made an interactive soundboard so you can hear what it sounds like when the full power of Listrak’s unified platform orchestrates your marketing campaigns in full harmony.

We’re talking identity resolution, text-message marketing, email, personalization, customer insights, analytics, AI recs, and more. We’re talking all that marketing stuff, synchronized in harmony and hitting all the right notes.

It’s beautiful music that grows your customer engagement and your revenue.

To experience what Listrak’s platform can deliver for your marketing goals, launch our interactive soundboard.

DELIVERY

Shiptshape

Shipt bag filled with items from Shipt Francis Scialabba

Shipt’s scope is shaping up. The same-day delivery company yesterday added Walgreens and 7-Eleven to its marketplace, boosting its store count by 40% and marking the most locations added at one time.

  • The expansion includes 6,303 Walgreens locations, with 25,000+ items ranging from over-the-counter medications to beauty products, plus 3,000+ household goods, snacks, and bevs across nearly 6,450 7-Eleven stores.

Great expectations: Rina Hurst, Shipt’s chief business officer, said in a release that the two retailers add “even more variety and product categories” to its marketplace.

  • The service is now available to 80% of households in 5,000+ US cities and supports 140 retailers, including Abercrombie & Fitch, Bed Bath & Beyond, and Party City.

Hurst told us last October that reaching beyond Shipt’s roots in grocery was essential, as the “ring of what consumers are expecting and want to have in next-day or same-day delivery is really growing…It went from a luxury to a convenience to a must-have.”

  • Per a 2021 NielsenIQ survey, 61% of consumers said they’d like their orders delivered as fast as possible—and are increasingly interested in same-day over next-day options.

Express lane: Shipt will see more change next week when another exec from parent company Target takes over as CEO. Kamau Witherspoon, most recently SVP of operations at the big-box retailer, said he’ll oversee the delivery company’s “next phase of growth” as it adds more partners.—EC

        

WHAT ELSE IS BREWING

  • Consumer spending in the US increased 2.1% in January (when seasonally adjusted) from December.
  • Foot Locker shares plummeted as it grapples with Nike’s focus on DTC.
  • Beyond Meat reported Q4 losses that were even worse than expected.
  • Kroger introduced a pilot program (at select Fred Meyers) with products packaged in refillable Loop containers.
  • Revolve, the online retailer loved by influencers, is opening its first store, in Los Angeles.

TOGETHER WITH BLACK CROW AI

Black Crow AI

Welcome to the party. Not sure how to tap into the power of first-party data for your DTC biz? Black Crow AI has compiled top tips from leading DTC marketers on getting the most out of your first-party data. Learn how to transform retargeting and prospecting, rapidly identify which platforms are sending you quality traffic, and more. Get the tips and boost your ROAS here.

SWAPPING SKUS

Today’s top retail reads.

Eyes on Europe: A feeling of uncertainty at Milan Fashion Week amid the news of Russia’s invasion of Ukraine. (Vogue Business)

All mine? For grocers that want to own delivery from start to finish, there are pros and cons. (Grocery Dive)

Clock it: Abercrombie & Fitch is turning to TikTok to show millennial and Gen Z consumers how it’s transformed. (Digiday)

Learn: Do you have a podcast, business, or social channel that needs attention? Sign up for Building an Audience on March 14—led by Morning Brew cofounder Alex Lieberman—and learn to develop strategies for growing your influence across all social platforms.

FRIEND OR FAUX?

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

  1. Soma, the lingerie brand, introduced a self-adjusting bra that adapts to the wearer’s body.
  2. Nike announced a pair of LeBrons called “Magic Fruity Pebbles,” inspired by the basketball player’s favorite breakfast cereal.
  3. Pepsi dropped a nitrogen-infused soda that gives drinkers a “frothy, foamy mustache.”
  4. McDonald’s will test a McNuggets-inspired beer.

Keep reading for the answer.

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FRIEND OR FAUX? ANSWER

It’s probably for the best that McNuggets keep beer company on the side…

Written by Jeena Sharma, Katishi Maake, and Erin Cabrey

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