šŸŽÆTarget to offer items starting at less than a dollar

Target to introduce a new private-label brand

Greetings from the Retailist team! As we look ahead to 2024 the e-commerce, retail, and Direct-to-Consumer (DTC) world shows no signs of slowing down. We've seen a range of key news, developing trends, and unique stories from the world of retail over the last week. Dive in to explore the top stories:

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In the news: Top headlines this week

Target to offer some items starting at less than a dollar under new private-label brand. Target announced it will introduce a new private-label brand called deal worthy, offering everyday essentials at prices starting from under a dollar, targeting value-conscious consumers amid rising cost-of-living pressures. This strategic move includes a range of products like apparel, cosmetics, and electronics, with most items priced under $10, available in stores and on Target.com starting this month. [Reuters]

Affirm takes cautious approach to six-month outlook. Affirm, a buy now, pay later (BNPL) company, reported a significant increase in fiscal second-quarter revenue and Gross Merchandise Volume (GMV), with a 48% jump in revenue to $591 million and a narrowed loss of $166.9 million compared to the previous year. Despite a conservative forecast for the rest of the fiscal year, the company experienced growth across most merchant partners and product categories, excluding sporting goods and outdoor. The Black Friday to Cyber Monday weekend notably boosted BNPL providers, including Affirm, due to robust e-commerce sales, underlining the leadership of CEO and founder Max Levchin. Ā  [Payments Dive]

True Religion explores a sale as maximalist, Y2K-era styles make a comeback. The hedge fund owning True Religion is considering selling the Y2K-era jeans brand, following a resurgence in growth and profitability after its second bankruptcy emergence, with CNBC reporting a 20% sales increase to $280 million last year and $80 million in EBITDA. The sale process, initiated in January, is managed by Baird and targets various consumer-focused private equity firms and large apparel companies as potential buyers. While the exact valuation sought remains undisclosed, it's speculated that True Religion could be sold for a mid-single-digit multiple of its EBITDA. [CNBC]

9 status symbols that are everywhere, according to people at New York Fashion Week. Attendees of New York Fashion Week, surveyed by Business Insider, highlighted current trends within their circles, including Dior skiwear and designer kitten heels, indicating luxury fashion items as the status symbols of choice. A standout mention was Louis Vuitton's Capucines handbag line, inspired by the brand's first store and renowned for its exclusive manufacturing process involving 250 steps. These bags, available in various colors and sizes, symbolize high-end fashion with prices ranging between $6,100 and $7,700 each. [Business Insider]

Colorado Attorney General Files Lawsuit Against Kroger-Albertsons Merger. Colorado Attorney General Phil Weiser announced his intention to file a lawsuit to prevent the $24.6 billion merger between Kroger and Albertsons, citing concerns over its impact on consumers, workers, and suppliers in Colorado. This move aligns with actions taken by other states, such as Washington, where concerns about reduced consumer choices and competition in the grocery sector have led to legal challenges. The merger, under Federal Trade Commission review for antitrust compliance, has raised fears in Colorado about job losses, higher costs, and limited access for local producers, especially given Kroger's significant market presence in the state. [Retail Wire]

Away lays off 25% of internal staff. The DTC luggage brand Away is undergoing a significant organizational restructuring, which includes laying off 25% of its workforce and eliminating its traditional executive team structure, aiming for a more agile approach in response to changes in consumer behavior. Despite these changes, Away plans to focus on investing in brand and community building, expanding its retail presence, and enhancing product innovation, as confirmed by a company spokesperson. [Retail Dive]

US retail sales tumble in January; weekly jobless claims fall. U.S. retail sales experienced their most significant decline in nearly a year this January, a downturn economists advise not to overinterpret, attributing the decrease to winter storms and technical distortions. The Commerce Department highlighted that the unexpected drop in retail sales was partly due to a sharp decrease in receipts at service stations, influenced by falling gasoline prices, while noting that consumer spending is still buoyed by a robust labor market maintaining high wage growth. [Reuters]

BNPL popularity rises among ā€˜financially fragileā€™ consumers. The New York Federal Reserve reports that around 60% of consumers deemed "financially fragile" have used Buy Now, Pay Later (BNPL) services five or more times in the past year, a rate significantly higher than the just over 20% usage among financially stable consumers. This group, identified as having lower credit scores, a history of loan delinquency, or recent credit application rejections, finds BNPL particularly appealing due to its accessibility. BNPL services, often structured as interest-free loans repaid in four or fewer installments, offer an alternative credit solution for those who struggle to obtain traditional credit, according to the NY Fed's study "How and Why Do Consumers Use ā€˜Buy Now, Pay Laterā€™?" [Payments Dive]

Dunkin' tracksuits inspired by the chain's Super Bowl ad with Ben Affleck sold out wicked fast. Following a Super Bowl advertisement featuring celebrities Ben Affleck, Matt Damon, and Tom Brady as "DunKings," the coffee and donut brand Dunkin' launched tracksuits in their signature neon pink and orange colors, which sold out in just 19 minutes. The tracksuit jacket and pants, priced at $60 each, were available on ShopDunkin.com, along with a $40 pink DunKings bucket hat, which also sold out by Wednesday. However, a 40-ounce tumbler, offered in either pink or orange for $40, remained available. [Business Insider]

The Body Shop in Crisis: Administration Looms, Jobs and Stores at Risk. The Body Shop, a renowned skincare and cosmetics retailer, is facing uncertain future prospects after appointing administrators from FRP Advisory due to disappointing sales and insufficient working capital. This situation arose shortly after the company was acquired by Aurelius, a European private equity investor, with recent trading performance failing to meet expectations. The potential closure of over 200 stores and the risk to more than 2,200 jobs highlight the gravity of the crisis for both employees and customers, despite the company's longstanding presence in the market since its founding in the 1970s by Anita Roddick. [Retail Wire]

Job Board: This weekā€™s Top Openings in DTC, RetailTech, and more

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

  • Staff Data Scientist, Square for Restaurants (Remote) Square - more here

  • Associate Director, Product Development and Formulation (Miami, FL) Chewy - more here

  • Senior Product Manager- New Initiative (Seattle, WA) Remitly - more here

  • Director, Web Engineering (Culver City) CrunchyrollĀ - more here

  • Enterprise Sales Director (Boston, MA) Akeneo - more here

  • Human Resources Manager - Production (Saint Paul, MN) Green ThumbĀ - more here

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