FTC and 17 States File Sweeping Antitrust Suit Against Amazon

The lawsuit aims to hold Amazon accountable.

Welcome to the Retailist Roundup - As summer winds down, the transition to fall brings with it a surge in back-to-school trends and an uptick in business news. Here, we provide you with the latest updates in ecommerce, retail, and DTC brands, curated directly by our editors.

We've distilled the past week to present the most significant headlines, emerging trends, and insights from global retail experts. Here's a look at the standout topics this week:

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In the News: This week’s top headlines

FTC and 17 States File Sweeping Antitrust Suit Against Amazon. The Federal Trade Commission and 17 state attorneys general have filed an antitrust lawsuit against Amazon, accusing it of using monopoly power to raise prices and stifle competition. FTC Chair Lina Khan stated that Amazon employs coercive tactics to unlawfully maintain its monopolies, negatively impacting consumers and businesses. The lawsuit aims to hold Amazon accountable for these alleged monopolistic practices. [CBS News]

Jack Dorsey faces full Square agenda. Jack Dorsey is set to take over as CEO of the Block merchant unit, previously known as Square, following the departure of Alyssa Henry on October 2. This leadership change comes shortly after Square experienced a significant outage. As competition intensifies and Square's growth decelerates, Dorsey is expected to prioritize sales strategies, especially as the company recently shifted its focus towards specific industry verticals. [Payments Dive]

Sycamore to buy Chico’s for $1B. Sycamore, a private equity firm, has successfully reached an agreement to acquire women's apparel retailer Chico’s FAS after a previously contentious attempt in 2019. Chico’s CEO, Molly Langenstein, praised Sycamore's track record in retail and believes the partnership will bolster the company's growth. Analysts suggest that Langenstein's endorsement of the deal could deter other potential bidders, emphasizing her pivotal role in Chico's ongoing success. [Retail Dive]

A company wanted creators to promote its service offering AI clones to do job interviews, now they are gone. Eve Peña, a career advice guru on TikTok, was offered a substantial deal to promote a company, StartupHelper, which claimed to offer AI clones for virtual job interviews. Peña and other creators found the proposition unethical and suspected it was a scam. Shortly after, StartupHelper disappeared online, highlighting the challenges of online partnerships and the unregulated nature of generative AI technology. [NBC News]

Philadelphia Retailers Ransacked. Groups of youths looted retail stores in Philadelphia over two nights, leading to dozens of arrests and prompting state-run liquor stores to close indefinitely. Despite increased police presence, looting persisted, albeit at a reduced scale. This incident is part of a broader uptick in organized retail crime in the U.S., exacerbating financial challenges for retailers already facing declining consumer demand. [Reuters]

Retailers talk a lot about rising theft. But a retail industry report finds a key metric for it hasn’t increased that much. Despite increased discussions among retailers about theft, a report from the National Retail Federation (NRF) revealed that the "shrink" rate, which accounts for losses due to theft, fraud, or employee error, rose only slightly in 2022 to 1.6% from 1.4% the previous year. However, the total losses amounted to $112.1 billion, an increase from $93.9 billion in 2021. The NRF emphasized that the growing concern is not just the financial impact but also the increasing violence associated with these crimes. [MSN]

GameStop names billionaire Ryan Cohen as CEO in turnaround push. Billionaire Ryan Cohen has been named CEO and chairman of GameStop, aiming to revitalize the struggling videogame retailer. Cohen, who previously transformed online pet retailer Chewy into a $3.5 billion business, joined GameStop's board during its 2021 meme stock rally to help shift its focus to e-commerce. He took on the executive roles without compensation after former CEO Matt Furlong's departure. [Reuters]

The US Consumer is Starting to Crack. Despite a strong job market and robust consumer spending, there are increasing concerns about the resilience of the US economy. The resumption of student loan payments is expected to drain $8 billion monthly from consumers, with many indicating they'll need to cut spending elsewhere. Additionally, rising gas prices, surging insurance premiums, dwindling personal savings, potential prolonged strikes, and the looming threat of a government shutdown all pose significant challenges, raising fears of an impending recession. [Insider]

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

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

  • Finance Transformation Director (Culver City) Crunchyroll - more here

  • Dashboard Engineering Manager - Square for Restaurants (San Francisco, CA) Square - more here

  • Principal UX Designer, DIY Advance Editor (Remote) Vista - more here

  • Full Stack Engineer, Bitcoin Mining (New York City, NY) Block - more here

  • Senior Research Scientist, Chocolate (Hershey, PA) The Hershey Company - more here

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