Hey Friends,
Two big retail milestones this week ahead of earnings report season…… This week's key economic releases are the Producer Price Index (PPI) on Tuesday and the Consumer Price Index (CPI) on Wednesday. PPI, measuring inflation at the wholesale level, is anticipated to influence market activity, especially if it surpasses expectations, potentially leading to a market sell-off. CPI, a gauge of consumer inflation, follows on Wednesday and is expected to generate market volatility as well. If CPI shows another high reading, it could reinforce concerns about inflation, contradicting the Federal Reserve's stance on its control and possibly affecting rate cut expectations. The difference between core and regular CPI, with core excluding food and energy, is crucial to monitor, as it could shed light on the factors driving inflation and potentially complicate the Fed's decision-making process.
Shein, a Chinese fast fashion company, has sought membership in the National Retail Federation (NRF) multiple times but has been denied. Facing scrutiny over its supply chain and tariff practices, Shein aims to gain credibility with U.S. lawmakers and the broader retail industry. Membership in the NRF could validate the company and bolster its legitimacy, particularly as it prepares for a potential U.S. IPO. Despite its efforts, Shein has faced repeated rejections from the NRF, according to sources familiar with the matter.
Last week, after 100 years on operation, Sam Ash Music filed for Chapter 11 in bankruptcy court in New Jersey. This moves follows an announcement earlier in the week that the company woul dbe closing all 42 of its retail locations. The retailer is evaluating a potential sale of its e-commerce operations, related intellectual property and its wholesale Samson business as a go-forward strategy.
Kohl’s is expanding its shop-in-shop model with the addition of 200 Babies-R-Us shops in its retail locations. According to the retailer, Kohl’s wants to position itself as a trusted destination for milestone moments, like shopping for baby basics and accessories. The shops will range from 750 to 2,500 square feet and will open in states including Texas, California, Minnesota, Michigan, Florida and Virginia, among others beginning in August. Kohl’s first added the shop-in-shop concept in 2021 with Sephora. By the end of 2023, Sephora shop-in-shops had reached 900 locations with Kohl’s, and looking to outfit the entire chain by 2025.
Thrive Market has agreed to pay $1.55 million to settle a lawsuit brought by the Los Angeles County District Attorney’s Office, accusing the online grocery store of violating California laws on automatic subscription renewals and false advertising. The investigation found that Thrive Market failed to clearly disclose subscription terms and obtain explicit consent before renewing memberships. As part of the settlement, Thrive Market must now make its renewal terms clear, obtain consent before charging for renewals, send confirmation emails with renewal terms, allow easy online cancellation, and refrain from misleading advertising. District Attorney George Gascón emphasized the importance of transparency and fairness in consumer transactions.
In some retail technology news….Shopsense has launched its retail media platform for second-screen shopping. Shopsense leverages AI technology and machine learning, to drive growth and increased revenue for TV broadcasters and streaming networks. According to Retail Dive, The company’s most recent partnerships with Paramount and Spanish-language media company TelevisaUnivision allowed viewers of the CMT Music Awards and the Latin American Music Awards in April to shop artists-inspired looks by integrating second-screen shopping into its programs. Shopsense said in the release that it also plans to launch “Shopsense Lense,” a new feature that lets consumers capture the image of products as they are viewing and then instantly purchase through the publisher’s app.
The board of directors of L’Occitane International announced that the cosmetics company has received an offer from its largest controlling shareholder and chairman, Reinold Geiger, to go private. L’Occitane Groupe, which is controlled by Geiger, own about 72% of the company’s shares and offered to acquire all remaining shares for 34 Hong Kong dollars per share. To approve, about 90% of shareholders must agree to move the offer forward.
Walmart is expanding delivery hours until midnight at stores nationwide for orders placed by 10:30 pm. The news comes on the heels of the retailer debuting early morning deliveries starting at 6 a.m., according to a press announcement.
Although no date has been set, Apple could see its first strike from unionized retail employees in the upcoming weeks. Members of the International Association of Machinists and Aerospace Workers overwhelmingly voted on Saturday to strike at the Apple Store in Towson, MD. “Following over a year of negotiations with Apple management that yielded unsatisfactory outcomes,” the “members took a significant step by voting in favor of a strike at the Apple Towson store, signaling their collective demand for meaningful change,” the coalition said in a statement. “The issues at the forefront of this action include concerns over work-life balance, unpredictable scheduling practices disrupting personal lives, and wages failing to align with the area’s cost of living.” Notably, the Towson, MD location was the first of the tech conglomerate’s stores to unionize.