Hello, Retailist enthusiasts! 🎉 As we gear up for another exciting weekend, the excitement is tangible in the e-commerce, retail, and Direct-to-Consumer (DTC) sectors. This week has been full of significant updates, emerging trends, and pioneering breakthroughs that are shaping our market. Ready to dive into the top stories that have surfaced? Join us as we explore these updates and uncover their impact on our vibrant community!

New from Retailist

The Secret to Increasing Conversion at Checkout? Not Focusing on Conversion.

When retailers default to driving conversion alone at checkout, they may be increasing purchases in the now, but it’s often not the right way to create profit long-term. Instead, retailers need to cater checkout to shoppers’ needs and wants, which will increase a mix of conversion, average order value and long-term value.

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In the news: Top headlines this week

Consumers were still cautious in May. In May, consumer spending showed a cautious pattern with a 4.5% year-over-year increase in core retail sales, though growth slowed from April. Persistent inflation, rising credit card debt, and increasing insurance premiums have led to a decline in discretionary spending as consumers prioritize essential expenses. This trend may aid the Federal Reserve's efforts to balance cooling inflation with avoiding a recession. [Retail Dive]

Rite Aid Closes 27 More Stores Amid Bankruptcy Proceedings. Rite Aid is closing 27 additional stores in Michigan and Ohio as part of its ongoing debt restructuring during bankruptcy proceedings, bringing the total affected stores to over 150. The closures follow a court-supervised process to optimize the company's footprint and reduce debt under Chapter 11 protections. Despite earlier efforts to address pharmacy deserts with "mini-marts," the company is focusing on reorganization to increase financial flexibility and execute key initiatives. [Retail Wire]

Ocado's shares hit as Canadian partner Sobeys pauses warehouse opening. Ocado Group's shares dropped over 16% after its Canadian partner, Sobeys, paused the opening of a planned robotic warehouse in Vancouver. This decision, coupled with similar pullbacks by partners like Kroger in the U.S. and Coles in Australia, has led to Ocado's stock reaching its lowest level since 2017 and losing over 60% of its value this year. Analysts attribute this setback to weak rebounds in online shopping volumes, affecting the economic viability of expanding automated warehouses. [Reuters]

Amazon Labor Union votes to join forces with Teamsters. The Amazon Labor Union (ALU), the first group of Amazon workers to organize at a U.S. warehouse, has voted overwhelmingly (98%) to affiliate with the International Brotherhood of Teamsters. This move is expected to increase pressure on Amazon to negotiate with the ALU, which is based in New York and has been striving for better working conditions and job security. Sean O’Brien, the general president of the Teamsters, emphasized their commitment to fighting for a union contract that ensures good jobs and safe working conditions for Amazon workers. [CNBC]

Apple to drop its BNPL option in US. Apple announced it will discontinue its buy now, pay later (BNPL) service, Apple Pay Later, in the U.S. and will instead offer alternative payment options through its digital wallet. Starting later this year, users will be able to access installment loans via credit and debit cards and other lenders when using Apple Pay. This new global installment loan offering aims to provide flexible payments to more users worldwide in collaboration with Apple Pay-enabled banks and lenders, focusing on easy, secure, and private payment options. [Payments Dive]

Lee collabs with footwear brand Heydude. Lee has launched its first collaboration with the Crocs-owned footwear brand Heydude, featuring a seven-piece line of footwear, shorts, tops, and a reversible bucket hat for men, women, and unisex styles. This collection, priced between $30 and $75, is the denim brand's first to be launched on Amazon and is also available on Lee's and Heydude's e-commerce sites. [Retail Dive]

The Food Hall Co. Announces Shaver Hall Culinary Hub in Midtown Manhattan. The Food Hall Co. has announced Shaver Hall, a new culinary hub set to open in Midtown Manhattan's historic Lord & Taylor building at 424 Fifth Ave. This 35,000-square-foot food hall, part of Amazon's adaptive reuse of the building, will feature diverse dining options and support local small businesses. The first food stalls revealed are Chick Chick, offering Korean-inspired chicken by Chef Jun Park, and Taqueria Al Pastor, serving authentic Mexican cuisine, promising a dynamic culinary experience for the area. [Retail Wire]

Danone steps up health focus to boost growth. Danone will enhance its focus on health and medical nutrition to drive sales growth and increase cash generation from 2025 to 2028. The French food group, known for brands like Activia, Evian, and Aptamil, aims for an annual like-for-like net sales growth of 3-5%, consistent with its 2024 target. This strategy is expected to deliver a double-digit return on invested capital and help achieve a long-term free cash flow target of €3 billion ($3.2 billion). [Reuters]

Fast-food customers are shifting to casual-dining chains, Darden Restaurants CEO says. According to Darden Restaurants CEO Rick Cardenas, customers frustrated with rising fast-food prices are shifting towards casual-dining chains. Although Darden hasn't directly benefited from this trend, competitors like Chili's owner Brinker International and Applebee's parent Dine Brands have been capitalizing on it. Chili's has launched an ad campaign targeting fast-food burger prices, while Applebee's has been offering deals to attract fast-food diners. Industry data supports this shift from quick-service restaurants to casual dining, as noted by Cardenas during Darden's quarterly earnings call. [CNBC]

Tupperware shutters only US manufacturing facility. Tupperware is closing its only U.S. manufacturing facility in South Carolina, resulting in nearly 150 layoffs as part of a multi-year strategy to simplify its supply chain and operations. The company is offering early retirement, severance packages, and outplacement services to affected employees. Amid significant financial challenges and doubts about its ability to continue operating, Tupperware has been restructuring its debt and leadership, appointing former Spanx CEO Laurie Ann Goldman as its new CEO in October 2023. [Retail Dive]

Krispy Kreme & ‘Friends’ Doughnut Collaboration: What We Know. Krispy Kreme has launched a unique collaboration with the popular television show "Friends," offering themed doughnuts available exclusively in the United Kingdom. The collaboration was unveiled on June 17, and initial designs of the treats were showcased in an Instagram post by Snackolator. [Retail Wire]

Sneaker maker Golden Goose postpones IPO amid European political turmoil. Italian luxury sneaker maker Golden Goose has postponed its IPO on the Milan bourse due to market volatility from political uncertainty in Europe, specifically following recent European parliamentary elections and upcoming snap general elections in France. This decision marks the first IPO withdrawal attributed to the current market upheaval, impacting the luxury sector, including companies like Moncler. Another company, Equinor, also suspended a sale due to similar concerns. [Reuters]

Express, Bonobos bought out of bankruptcy for $174M. Express and its recently acquired Bonobos brand have been bought out of bankruptcy for $174 million by a joint venture formed by WHP Global and retail property owners Simon, Brookfield, and Centennial. This acquisition will keep 450 stores open and retain 7,000 jobs. The new ownership aims to revitalize the brands, following a decline in business casual apparel demand and mall traffic, similar to the 2020 rescue of J.C. Penney by Simon and Brookfield. [Retail Dive]

McDonald’s CFO Highlights Marketing’s Shift Into Key Business Growth Driver. McDonald’s CFO Ian Borden highlighted the transformation of marketing into a key growth driver for the company, under the leadership of global CMO Morgan Flatley. Speaking at the Cannes Lions Festival of Creativity, Borden emphasized that marketing is now recognized as one of the most crucial investments for driving business growth. This marks a significant change from a few years ago when marketing was viewed as a vague and unclear function within the organization. [Retail Wire]

US retail sales tepid in May; manufacturing production surges. U.S. retail sales showed a minimal increase in May, with previous month's data revised significantly lower, indicating subdued economic activity in the second quarter. The modest rise in retail sales, partly due to lower gasoline prices, suggests a greater slowdown in consumer spending. Inflation and higher interest rates are causing consumers to prioritize essentials and reduce discretionary spending. These tepid sales have led economists to predict that the Federal Reserve might start cutting interest rates by September or possibly delay until December. [Reuters]

Job Board: This week’s Top Openings in DTC, RetailTech, and more

Want to submit a role to our talent board? Email [email protected].

• Staff Product Manager, Reporting Platform (Remote) Square - more here

• Director Indirect Program Management & Strategy (Bethpage, NY) Optimum - more here

• FC HR Business Partner (Jessup, PA) Chewy - more here

• Operations Manager (Centreville, MD) Green Thumb - more here

• Product Design Lead (New York, NY) The Farmer’s Dog - more here

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