Halloween is a $12B business

Why that didn't save Party City

Welcome to the Retailist Roundup - As summer winds down, the transition to fall brings with it a surge in back-to-school trends, Pumpkin Spice craze 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:

New from Retailist

Are Conventional Clothing Hangers Are Bad for the Planet?

Quite simply, conventional hangers are bad for the planet. As most apparel retailers already know, plastic hangers in stores are usually discarded after their garments are purchased.

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In the News: This week’s top headlines

Halloween is a $12B business. Why that couldn’t save Party City. Halloween is a significant $12 billion business, with spending predicted to reach $12.2 billion in 2023, but Party City, a specialty retailer heavily reliant on the holiday, has still faced financial challenges and filed for bankruptcy. Despite the growth in participation and Halloween spending, Party City's hold on the season has weakened, with a decrease in the number of Halloween City locations compared to previous years. [Retail Dive]

Walgreens maps out $1 billion in cost cuts as profit forecast underwhelms. Walgreens Boots Alliance (WBA.O) is planning to cut at least $1 billion in costs in 2024 by shutting unprofitable stores and implementing measures like using artificial intelligence to optimize its supply chain. This cost-cutting strategy was announced after the company forecasted lower-than-expected profits for the fiscal year 2024. Despite premarket losses, the company's shares rose 5% in early trading. Walgreens has faced challenges, including declining sales of COVID-19 products, weak prescription drug demand, labor issues, and sluggish sales of consumer health products due to high inflation. In the last fiscal year, the company recorded a $6.8 billion pre-tax charge for opioid-related claims and litigation. [Reuters]

Taco Bell throws shade at McDonald's with debut of 'premium' nuggets. 'This is real chicken.' Taco Bell is testing its version of Crispy Chicken Nuggets, even though they're not traditionally Mexican, as part of its strategy to disrupt a category it sees as weak. The fast-food chain describes its nuggets as a premium, all-white-meat chicken offering, emphasizing their quality compared to competitors like McDonald's. [Insider]

Walmart is encouraging employees to see telehealth doctors — and it could shave millions off the company's $6 billion healthcare costs. Walmart is expanding access to virtual healthcare services for its employees across all states in the US, starting from October 14. This expansion is part of Walmart's efforts to address healthcare challenges, providing virtual primary and mental healthcare services to its workers and their families, with full-time employees and eligible part-time workers being able to enroll in the company's health plan. Approximately 1 million Walmart employees and their families are enrolled in the company's health plan. [Insider]

Unique retail store chain files for Chapter 11 bankruptcy. The retail industry has faced a challenging year, with various factors contributing to Chapter 11 filings for companies like Bed Bath & Beyond, Tuesday Morning, and Christmas Tree Shops, as well as others like David's Bridal and Party City. The changing consumer spending patterns, supply chain disruptions, and higher costs due to inflation have all played a role. The COVID-19 pandemic had a significant impact, forcing non-essential retailers to close, altering demand for products like dressier clothes, and leading to the bankruptcy of unique retailers like Showfields, which cites the pandemic as a key factor in its financial difficulties. [The Street]

Birkenstock stumbles in underwhelming US market debut. Birkenstock's stock had an underwhelming Wall Street debut, with shares opening at $41, below the IPO price of $46, and closing at $40.20, down 12.61%. This performance marked one of the worst debuts by a company valued at over $1 billion in nearly two years, reflecting investor caution about new listings, following similar disappointing performances from other recently listed companies like Arm Holdings, Instacart, and Klaviyo. [Reuters]

From Amazon to Allbirds, nearly 50 major retailers announced layoffs this year. Retail layoffs have seen a significant increase in 2023, with a 3,225% year-over-year spike at the beginning of the year and continued elevated levels throughout. These job cuts have affected a wide range of retailers, including major companies like Kohl's, Gap, Amazon, Walmart, and digitally native brands like Allbirds, Ruggable, and Stitch Fix, as businesses turn to cost-saving measures and technological disruption plays a role in reshaping the job market. [Retail Dive]

Walgreens names veteran health care executive Tim Wentworth as next CEO. Walgreens Boots Alliance has appointed Tim Wentworth, a veteran healthcare executive and former CEO of Express Scripts, as its new chief executive. Wentworth will assume the role on October 23, taking over from Roz Brewer. Walgreens faces challenges in transitioning to a provider of health services beyond the pharmacy counter, and the company's board sought an executive with extensive healthcare experience to manage this transformation. [NBC News]

Domino's releases new 'emergency pizza' program, offering customers a free medium pizza when most 'needed'. Domino's has launched an "emergency pizza" program that offers customers a free medium two-topping pizza, which they can use at their discretion when they feel it's most needed. To qualify for the program, customers need to place a delivery order online for $7.99 or more. This initiative is a response to the uncertainties in everyday life and aims to provide a pizza pick-me-up in various situations.[Fox Business]

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

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

  • Senior Corporate Counsel - Employment Law (Miami, FL) Chewy - more here

  • Principal Technical Program Manager (Seattle, WA) Remitly - more here

  • ISV Expansion - Engineering Manager (New York City, NY) BentoBox - more here

  • Principal Engineer (Remote) Golden Hippo - more here

  • Sr. Director Corporate Communications & Public Relations (Los Angeles, CA) Munchkin, Inc- more here

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