Hey Friends,
Thank you to all of you who took advantage of the Black Friday special on the annual TWIR membership. I appreciate your continued support of this exciting project of mine.
This week was full of the typical holiday topics, Black Friday, we got our first “returns article'“, Buy Now Pay Later’s impact on holiday shopping and of course, early look at retail trends for 2025. Hopefully this week’s newsletter is a nice refresher from the gift guides and holiday sales you are getting in your inbox.
Walmart CEO Doug McMillon addressed persistent food price inflation during the 2024 Morgan Stanley Global Consumer and Retail Conference, highlighting that grocery costs remain significantly higher than pre-pandemic levels. He attributed the recent uptick to rising costs in eggs, dairy, cocoa, and other inputs, noting that processed food prices may not decrease substantially in the coming year. Walmart has implemented strategies like rollbacks — temporary price reductions — to offer relief, with 6,000 currently active in the U.S.
McMillon emphasized Walmart's commitment to saving customers money and providing value through pricing, assortment, convenience, and trust. He acknowledged the challenges of maintaining affordability during inflationary times and thanked employees for their efforts to enhance customer experience. As Walmart focuses on long-term growth, McMillon reiterated that the company's purpose of helping people "save money and live better" remains central to its strategy.
Retail returns are projected to reach $890 billion in 2024, accounting for 16.9% of annual sales, according to a report by the National Retail Federation (NRF) and Happy Returns.
While free and seamless return policies are key drivers of consumer loyalty—76% of shoppers value free returns, and 67% avoid retailers with poor return experiences—fraudulent returns remain a significant concern, with 93% of retailers citing it as a challenge.
Retailers are adapting by prioritizing returns management, with 34% hiring additional staff and 40% leveraging third-party logistics. Strategies like "no box/no label" returns and quick refunds are gaining traction, enhancing convenience and reducing fraud. However, behaviors such as bracketing, especially among Gen Z shoppers (51% admit to intentional over-purchasing with plans to return), contribute to rising return rates.
For the 2024 winter season, returns are expected to rise 17% above the annual rate, underscoring the need for improved reverse logistics to meet customer expectations while maintaining profitability.
As retailers gear up for the holiday rush, Sentry's latest report highlights the risks new hires face, with 38% of retail worker injuries occurring in their first year on the job.
With retailers set to hire up to 500,000 seasonal workers (NRF estimate), the findings underscore the need for robust safety training during onboarding.
Injury Trends
Common injuries: Strains and contusions make up nearly 50%, followed by lacerations and sprains.
Lost workdays: Injuries lead to an average of 70 days off work.
At-risk demographics: Workers under 30 account for one-third of all injuries.
Behavioral Health Challenges
Behavioral health issues like chronic pain and mental health concerns can double recovery time and represent over one-third of workers' compensation costs.
Sentry’s Injured Employee Complexity Factor (IECF) Models™ reveal that 20% of claims with significant behavioral health factors originate from retail and wholesale.
Alex Cooper, known for her "Call Her Daddy" podcast, is expanding her personal brand into the beverage industry with the launch of Unwell Hydration. This product, part of her Unwell Network, is marketed as a functional hydration drink designed to address everyday wellness in a relatable way, balancing functionality and flavor. The drinks include electrolytes, B-complex vitamins, and green coffee extract and come in flavors like Strawberry, Mango Citrus, and Orange Hibiscus. They will debut exclusively at Target on January 1, 2025, before broader distribution later in the year.'
This venture aligns with a growing trend of influencers and celebrities launching consumer products to capitalize on their personal brands. Notable parallels include Logan Paul's and KSI's highly successful PRIME Hydration, which has dominated retail and online markets, and Emma Chamberlain's Chamberlain Coffee. These initiatives often leverage loyal fanbases and social media influence to disrupt traditional categories like hydration, wellness, and even food.
Some fun legal news this week…….A lawsuit accuses Amazon of excluding predominantly Black ZIP codes in Washington, D.C., from fast Prime delivery services due to safety concerns. Residents in ZIP codes 20019 and 20020 reportedly receive slower delivery times despite paying for Prime, with packages arriving within two days only 24% of the time compared to 75% elsewhere. The D.C. Attorney General alleges consumer protection law violations, seeking restitution. Amazon denies the claims, emphasizing driver safety as its priority and rejecting accusations of discrimination.
A Florida federal court denied Target’s motion to dismiss a lawsuit by America First Legal (AFL) accusing the company of misleading investors about financial risks linked to its DEI and ESG initiatives, including its 2023 Pride campaign. AFL claims Target failed to warn shareholders about potential backlash affecting profits. The court also rejected Target's request to move the case to Minnesota. The ruling could encourage more lawsuits challenging corporate DEI policies, as AFL signals ongoing efforts to hold companies accountable for disclosing such risks in shareholder documents.
Mattel is facing a class action lawsuit after accidentally printing a pornographic website link on the packaging of dolls tied to the movie adaptation of Wicked. Instead of directing buyers to the movie's promotional site, the packaging listed "wicked.com," a pornographic site. The lawsuit, filed by a South Carolina mother, alleges negligence and seeks $5 million in damages. While Mattel issued an apology and recalled the dolls, the case underscores corporate responsibility in safeguarding children's products.
ThredUp finalized the sale of its European subsidiary, Remix, in a management buyout led by its General Manager, Florin Filote, for a symbolic $1. As part of the deal, ThredUp invested an additional $2 million in Remix before closing to support its operations. ThredUp retains a minority stake in the company and emphasized the move as part of its strategy to focus on its U.S. operations. The transaction is expected to enable Remix to grow independently in the European market, while ThredUp continues refining its core services and expanding technological innovations
Julia Collier has joined J.Crew as its new Chief Marketing Officer. Known for her expertise in digital marketing and brand innovation, Collier is expected to lead efforts in refreshing J.Crew's brand identity and enhancing its online presence to attract younger customers and compete effectively in the evolving retail landscape.
Julia Collier served as Senior Vice President of Brand Marketing at Skims, where she played a pivotal role in shaping the company’s strategic marketing initiatives. Her responsibilities included overseeing brand campaigns and creative direction, leveraging partnerships, and boosting Skims’ visibility as it expanded its product offerings and global reach. During her tenure, Skims gained significant traction, establishing itself as a leader in innovative shapewear, loungewear, and inclusive sizing options. The company also expanded into sports partnerships with leagues like the NBA and WNBA, further diversifying its brand presence.
This experience positioned Collier as a sought-after figure in the retail marketing sector, leading to her recent hiring as Chief Marketing Officer at J.Crew, where she is expected to bring similar innovation to revitalize the brand
Sammy Siddiqui, previously CEO of Forever 21, has been appointed as President of Five Below. Siddiqui’s experience in fast fashion and scaling retail businesses is anticipated to help Five Below expand its footprint and refine its growth strategies, especially as it targets Gen Z and millennial shoppers .
DoorDash is expanding its on-demand delivery services beyond food to include a diverse range of retailers. Highlights include:
Five Below: Offering delivery from 1,750 locations nationwide.
Sports Basement: Now delivering from 12 stores in Northern California.
David’s Bridal: Partnering with over 180 locations across the U.S., particularly timely for holiday shopping and last-minute seasonal needs.
This expansion aligns with DoorDash’s strategy of growing in grocery and retail categories. Earlier in 2024, DoorDash strengthened partnerships with major brands such as Ulta Beauty, Mattress Firm, Aveda, Lowe’s, and Camping World. The company also continues to enhance its grocery delivery options with partnerships including Wegmans, H-Mart, and local chains like Kowalski’s and Save A Lot.
DoorDash aims to deliver convenience, selection, and speed for consumers while helping retailers meet demand during high-volume periods like the holidays. The service continues to diversify its offerings to cement itself as a go-to platform for more than just food delivery.
Reporting season is wrapping up and as always, we will cover all the latest earning’s reports for our retail partners but I found Foot Locker’s response rather amusing…..Foot Locker chalked up their latest fiscal quarter to a lack of Nike demand. Foot Locker’s Q3 revenue fell to $1.958 billion, missing expectations, with a $33 million net loss. Challenges included weaker consumer demand, a promotional environment, and softer Nike sales due to the brand’s inventory rebalancing and discounting. Non-Nike brands like Hoka, On, Adidas, and New Balance accounted for 40% of sales, aligning with Foot Locker’s diversification goals. CEO Mary Dillon emphasized the value of offering a broad brand portfolio.
I’m interested to see what other retailers cite lower demand for some of their largest and most prominent logo’s and the broader impact this may have.
Also, you may notice that This Week in Retail has a new logo. Every day is an opportunity to improve but if anyone knows a graphic designer, hit me up.
That’s all folks……Have a great week.