I am excited to debut a new segment to the newsletter called Retail Therapy. Each week, I’ll be collecting my experiences, as well as reader submitted, and sharing the good, bad and ugly. Check out the survey below, I look forward to hearing from you.
This Week in Retail Therapy
This was taken from my favorite local coffee spot - shout out to Island Provisions. First and foremost, my wife is the planner of the family, she is prepared for any snacking disaster that our kids can throw at her, and it adds a level of flexibility to being away from the house that I simply cannot master. We often make it very easy for adults to grab a beverage or food on the go but for kids it isn’t as simple. Having kid-staples at a place that I frequent, along with knowing that I may have a safety net if I forget something (which I will) is a huge WIN in my book. Knowing this, I am way more likely to stop in. Positive experiences are often driven by accommodations to your non-typical clientele, in this case my kids. Also, the mark-up on these is pretty good and I won’t think twice to pay it.
Hey Friends,
The topic on everyone’s minds this week…..President Donald Trump announced that paused tariffs on Canada and Mexico will take effect on March 4, citing continued drug trafficking concerns. Additionally, the U.S. will impose a 10% import tax on China the same day.
Trump also hinted at 25% tariffs on European Union imports, including cars and other goods, with his broader reciprocal tariff policy set to begin April 2.
The Canada and Mexico tariffs, originally scheduled for Feb. 4, were delayed as both countries worked on addressing fentanyl trafficking. However, Trump stated they have not done enough to stop the flow of drugs, making it unlikely they will receive another reprieve.
Mexico’s President Claudia Sheinbaum responded by stating her administration remains optimistic about negotiating a deal. Her security team is currently in Washington, D.C., discussing trade, coordination, and intelligence proposals with U.S. officials. She expressed hope for direct talks with Trump before the tariffs take effect.
Kroger Chairman and CEO Rodney McMullen has resigned following an internal investigation into his personal conduct, which was deemed inconsistent with the company's business ethics policy. The investigation, unrelated to Kroger’s operations or financial performance, was led by an independent counsel and overseen by a special board committee.
Board member Ronald Sargent, who has been with Kroger since 2006 and previously served as CEO of Staples, has been appointed interim CEO and chairman. Kroger will conduct a search for a permanent CEO.
McMullen, who began his career at Kroger in 1978 as a part-time stock clerk, had been CEO since 2014. His departure follows Kroger’s failed merger attempt with Albertsons, which aimed to better compete with Walmart. Kroger shares dropped over 3.5% following the announcement.
A big week for Target with two major announcements around partnerships….Target and Champion are launching a 500-piece collection of apparel, accessories, and sporting goods in August, with most items priced under $40. The two brands previously partnered on the C9 by Champion line, which ended in 2020.
The multiyear partnership aims to boost Target’s apparel sales, particularly in performance wear, a category CEO Brian Cornell noted is growing double digits. The collection will feature exclusive fabrics, unique washes, detailed trims, and a distinct Champion logo. A varsity-inspired limited-time collection will follow in September online and in select stores.
Champion, now owned by Authentic after a $1.2 billion deal with HanesBrands, sees this partnership as a way to expand its reach and reinforce its sportswear leadership. Meanwhile, Target continues to focus on value and innovation, launching the Dealworthy private-label brand, cutting prices, and enhancing its wellness offerings.
In an effort to expand access to affordable eyewear, Target and Warby Parker are launching shop-in-shops in select Target stores - Willowbrook, IL; Bloomington, MN; Brick, NJ; Columbus, OH; and Exton, PA—will open in late 2025, with more locations planned for 2026 and beyond. These Warby Parker-run spaces will offer glasses, sunglasses, contact lenses, eye exams, and vision tests. The partnership also extends online, making Warby Parker products available on Target’s website.
The move aligns with Target’s strategy of strengthening in-store partnerships, complementing its existing Optical business in 500+ stores. For Warby Parker, the collaboration helps expand its reach beyond its 276 retail locations in the U.S. and Canada.
Amazon has revamped its AI assistant with Alexa+, a more conversational and personalized version powered by generative AI. Announced Wednesday, Alexa+ is designed to assist with daily tasks, integrating with smart home devices, making reservations, ordering groceries, and setting reminders for events.
The upgrade includes "experts"—specialized AI models that handle specific tasks, improving Alexa’s ability to interact with third-party platforms like Phillips Hue, OpenTable, Vagaro, Amazon Fresh, Whole Foods, and Ticketmaster. Users can also upload documents, emails, photos, and messages for Alexa+ to process and act on, thanks to its agentic capabilities that enable autonomous internet navigation.
Alexa+ costs $19.99 per month, but Amazon Prime members get it for free. It will roll out in the U.S. in the coming weeks on Echo Show 8, 10, 15, and 21 devices, as well as through a new mobile app and Alexa.com.
CEO Andy Jassy emphasized Amazon’s commitment to generative AI, citing Alexa+ as part of broader AI-driven innovations, including the AI shopping assistant Rufus. This push comes despite Amazon’s 2023 layoffs in the Alexa unit, signaling a shift toward AI-powered services as a core focus.
Apparently consumers aren’t always seeing eye to eye with retailers on their media strategy….Complaints about retail advertising have surged, with the Advertising Standards Authority (ASA) receiving 30,316 complaints between 2019 and 2023, accounting for 16% of all complaints across industries, according to law firm Shakespeare Martineau.
In 2023 alone, complaints rose 42% year over year, from 4,313 in 2022 to 6,143, marking a 19% increase over five years. Common issues include misleading claims and greenwashing, where brands fail to substantiate environmental claims.
We talk a lot about Amazon vs. Walmart but there’s competition in the footwear space worth tracking….Adidas is gaining ground on Nike in the U.S. market, a key focus for its growth in 2025, as uncertainty looms over Chinese consumer demand.
Some notes from Reuters: While Nike's market share dropped to 14.1% from 15.2%, Adidas grew to 8.9% from 8.2%, with New Balance, On Running, and Hoka also gaining. However, Adidas’ North American sales fell 7% in Q3, still recovering from the Yeezy exit. CEO Bjorn Gulden has led a turnaround since Adidas ended its Yeezy partnership in 2022, with the company’s stock rising 160% since his appointment.
Adidas' overall sales surged 19% in Q4 and 12% in 2024, while Nike's fell 9% in its latest quarter. Analysts see Adidas continuing double-digit growth if Nike struggles. To strengthen its U.S. presence, Adidas has launched "collegiate Americana" collaborations with Sporty & Rich, a Superstar 92 sneaker with Pharrell Williams, and signed athletes Satou Sabally and Travis Hunter.
The brand’s direct-to-consumer and sporting goods retail presence is expanding, driven by Samba and Gazelle sneakers, which performed well during the holiday season. Investors expect Adidas to outline further U.S. market strategies when reporting full-year results on March 5.
Prada is reportedly in discussions to purchase Versace from Capri Holdings for nearly €1.5 billion (£1.2 billion), which would return the iconic brand to Italian ownership. A deal could be reached this month, though talks may still fall through.
The acquisition would strengthen Prada's position as it seeks to compete with France’s LVMH, the luxury powerhouse behind Louis Vuitton and Moët & Chandon. Capri, formerly known as Michael Kors, acquired Versace in 2018 for $2.1 billion, meaning a sale at $1.5 billion would represent a loss. Versace has struggled financially, with revenues down 15% in late 2024, and is expected to post losses this year before breaking even next year.
L'Oréal's North America R&I Center held a ribbon-cutting event today, with speeches from key figures including CEO Nicolas Hieronimus, Deputy CEO Barbara Lavernos, L'Oréal USA CEO David Greenberg, and New Jersey Lieutenant Governor Tahesha L. Way. The Center, which employs over 600 scientists, engineers, and researchers, is part of L'Oréal's global R&I ecosystem and will focus on developing sustainable, inclusive, and innovative beauty products.
The Center, which is located in New Jersey, features a 26,000-square-foot modular lab, a consumer center for product testing, and an on-site mini factory. It will support L'Oréal’s U.S. brands like Maybelline, CeraVe, Redken, and Kiehl's. Emphasizing sustainability, the facility includes 10,000 solar panels, an eco-retention pond, and green initiatives. The center began operations in 2023, with full operations set for February 2025.
A new Harry Potter-themed store is set to open on April 10, 2025, at 676 N. Michigan Avenue in Chicago's Magnificent Mile. This 12,300-square-foot retail space will immerse visitors in the Wizarding World, featuring interactive exhibits, film props, and unique photo opportunities. The store's design draws inspiration from "Harry Potter and the Goblet of Fire," showcasing elements like a moving mermaid-stained glass window reminiscent of the Prefects' bathroom at Hogwarts, suspended broomsticks symbolizing the Triwizard Tournament's first task, a maze-patterned floor, and a central Goblet of Fire display. Visitors can explore various themed sections, including a House Pride area with Hogwarts-inspired merchandise, a Honeydukes-style confectionery offering treats like Bertie Bott's Every Flavor Beans and Chocolate Frogs, and an exclusive Chicago-themed collection. Additionally, the store will house the largest Butterbeer Bar in the U.S., designed to reflect Chicago's historic speakeasies, where guests can enjoy the iconic wizarding beverage alongside special treats such as Butterscotch Popcorn. This Chicago location marks the second standalone Harry Potter store in the United States and the third worldwide, following successful openings in New York and London.
That’s all folks…..Have a great week!