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Emotion Emerges as a Key Brand Value Measure
The industry is shifting
Hello Retailist family! 🌟 As the weekend draws near, the buzz in e-commerce, retail, and Direct-to-Consumer (DTC) sectors is palpable. This past week has been brimming with news, emerging trends, and innovations in our cherished industry. With an abundance of information available, are you ready to explore the most captivating stories that have emerged? Let's delve into these fascinating developments and uncover what they mean for us!
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In the news: Top headlines this week
Summer of sport to help revive global beer sales. Global beer sales are poised for a resurgence this year, buoyed by a variety of factors including major sporting events, easing inflation, favorable weather, and the diminishing effects of a boycott. Heineken, the world's second-largest brewer, has already seen its first quarterly volume growth in over a year as of the end of March. Similarly, Carlsberg has reported an increase in volumes after multiple quarters of decline. Anheuser-Busch InBev experienced a smaller-than-expected volume drop, partly due to a recovery from a significant boycott against its Bud Light brand in the U.S., which began over a year ago following a controversial promotion. Analysts, such as James Edwardes Jones from RBC Capital, anticipate an improvement in AB InBev's organic volume and sales growth following the anniversary of the "Bud Light calamity." [Reuters]
Puma thinks its Palermo sneakers might be this year's Adidas Samba. Puma is experiencing a resurgence in demand for its retro terrace-style Palermo sneakers, reminiscent of the popularity seen with Adidas Samba. Despite reporting a drop in net income and earnings per share in the first quarter, Puma's sales in the Americas have increased for the first time in four quarters, and the company has managed to improve profit margins even amid significant currency challenges due to the strong US dollar. At a recent news conference, CEO Arne Freundt highlighted the growing popularity of the Palermo, a style popular on European soccer terraces during the 1980s, which Puma relaunched last year with endorsements from celebrities like Dua Lipa and footballer Jack Grealish. This strategic move has contributed to a positive market response, sending Puma's shares soaring despite mixed financial results. [Business Insider]
Instacart partners with Uber to offer food delivery services to customers in US. Instacart has entered a partnership with Uber to integrate Uber Eats' restaurant options into its grocery delivery platform, expanding its services across the U.S. This collaboration allows Instacart users to order from Uber Eats’ extensive network of restaurant partners via the Instacart app. The move is part of Instacart's efforts to enhance its platform and remain competitive against major players like DoorDash, Amazon, and Walmart. Following the announcement, Instacart's shares saw a 4% increase, indicating a positive market response. This new alliance is expected to intensify competition in the already competitive food delivery market, according to Art Hogan, chief market strategist at B. Riley Wealth. [Reuters]
Organized retail theft ring that targeted Macy’s, other retailers is charged in New York. Authorities in New York have charged two individuals with possessing and reselling over $1 million in stolen goods through their business, Rehana's Cosmetics, located near the Empire State Building. The stolen merchandise, which included items from major retailers like Macy's, CVS, Rite Aid, Walgreens, Ulta, Victoria's Secret, Bath & Body Works, and the NHL Shop, was brought to the store by shoplifters who knew they could sell their stolen items there. District Attorney Alvin Bragg highlighted that the operation of Rehana's Cosmetics encouraged and motivated further thefts, positioning the store's owners as significant contributors to local retail crime. [CNBC]
Rally House grows to over 200 locations. Rally House, a family-owned sports retailer, has rapidly expanded its presence, doubling its store count to over 200 locations in just over two years, with plans for further growth. The retailer, which offers merchandise for local NCAA, MLB, NFL, NBA, NHL, and MLS teams, has recently opened new stores in Illinois, Arizona, Kansas, and Oklahoma. Aaron Johnson, Vice President of Marketing Strategy, emphasized that each store offers a unique, locally inspired merchandise selection, reflecting the specific community it serves and enhancing the shopping experience. [Retail Dive]
Rue21 Files for Bankruptcy, 540 Stores To Close. Rue21, a once-popular clothing retailer, has filed for Chapter 11 bankruptcy for the third time, this time under the burden of nearly $200 million in debt. In a departure from its previous filings, the company, based in Warrendale, Pennsylvania, plans to liquidate its entire inventory through "going out of business" sales and will close all 540 of its stores. Additionally, Rue21 will sell off its intellectual assets, marking a significant step back from its former prominence in malls nationwide. [Retail Wire]
Froot Loops maker WK Kellogg beats revenue estimates on higher prices. WK Kellogg Co. surpassed Wall Street's quarterly sales expectations, achieving $707 million in revenue for the first quarter ended March 30, higher than the estimated $697.8 million. This increase was driven by a strategic rise in product prices by 6.3%, which helped counterbalance a decline in demand that saw sales volumes decrease by 7%. Despite the slowdown in consumer spending due to inflation, the company was able to protect its margins effectively. Furthermore, WK Kellogg reaffirmed its forecast for annual adjusted net sales growth to range from a decrease of 1% to an increase of 1%. [Reuters]
Panera Halts Sales of ‘Charged Sips’ at Heart of Lawsuits. Panera Bread has decided to discontinue its Charged Sips beverages, which are currently at the center of two wrongful death lawsuits in New Jersey and Florida. Although the company did not explicitly state whether the lawsuits influenced this decision, it announced plans to replace the drinks with low-sugar and low-caffeine alternatives. This change comes as a response to customer feedback, but Panera has not provided a specific timeline for when these new drinks will be introduced or when the Charged Sips will be removed from the menu. [Retail Wire]
Heydude still a drag on Crocs in Q1. Crocs, renowned for its innovative footwear designs and expansions into new categories like sandals and wedges, continues to thrive, driving about 75% of the company's revenues. However, its subsidiary, Heydude, faces ongoing challenges, prompting Crocs to lower its sales expectations for the brand significantly. Originally expected to have flat or slightly increased sales, Heydude's sales are now projected to decline by 8% to 10%. This revised guidance has raised concerns among analysts, such as those from Bank of America, who caution that such adjustments early in the year could impact the company's credibility, despite Heydude accounting for only 18% of the combined brand's EBIT. [Retail Dive]
Emotion Emerges as a Key Brand Value Measure in 2024. In 2024, chief marketing officers (CMOs) are emphasizing the measurement of brand value, with a novel focus on emotional engagement. Traditional metrics like revenue and net promoter scores have not provided a universally accepted standard for assessing brand value due to their limitations in capturing the full scope of brand impact. Now, the industry is shifting towards recognizing emotion—a fundamental, intuitive feeling—as a key driver of brand growth. This approach aligns with scientific findings that emotions precede cognitive processes, underscoring the critical role of emotional connections in influencing consumer behavior and brand success. [Retail Wire]
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