Modern Retail

Under Saks, Neiman Marcus Group is trying to grow once again. But it’s doing so at a challenging time for the luxury industry, which saw spending in 2024 drop to its worst year since the Great Recession, according to Bain. Luxury shoppers today have numerous options and channels for making purchases, and many high-end department stores have struggled to bring in a younger clientele. They’ve also faced increased competition from vendors, many of whom are opening their own stores in the same markets. Further complicating matters, Saks Global is attempting a turnaround for Neiman Marcus as it deals with its own issues. It has a now-18-month backlog of unpaid bills to vendors that puts its financial viability into question. Modern Retail's Melissa Daniels and Julia Waldow discuss below. Read the full story here: https://lnkd.in/dr9p8xFn

PopSockets is the leader of what its CEO, Jiayu Lin, likes to call the phone grip category. The company is known for small, retractable circles that come in a wide variety of prints and colors and attach to the back of someone’s phone, making it easier to grip. But, the company really wants to be known as a lifestyle brand. It’s an inflection point that many accessories brands reach at one point or another, as they want consumers to know them for more than just a single widget. And, Lin is thinking day in and day out about how to position PopSockets as a lifestyle brand through events, collaborations, new product launches and more. “I want to take [PopSockets] to the next level by transitioning the company from a tech accessory to a mobile lifestyle brand,” she said. Lin joined The Modern Retail Podcast to talk about her vision for PopSockets. She’s been with the company since 2022, starting out as its gm of APAC and becoming the company’s CEO in September. 

Target is revamping its baby aisles to include new brands and more products, upping its selection to include more premium brands like Lalo and Joie International as it eyes the category for future growth. Baby brand Lalo will debut across more than 750 Target locations and online this month. Lalo, which launched as a DTC brand with a top-selling high chair six years ago, has seen year-over-year growth while expanding into bath accessories, play kits and more. And while it has experimented with owned retail and Amazon, joining Target marks the brand’s commitment to growth as an omnichannel brand. In this piece by Melissa Daniels, we speak to Michael Wieder, Amanda Nusz, Jennifer Saxton of Tot Squad, and Gregory Davidson.

Americans’ appetite for snacking may be finally satiated. CPG giants have recently warned during their earnings calls that due to growing economic pressures and high grocery prices, more shoppers are forced to hold off on snackable items and focus on core meals. Moreover, when people are buying snack items, they’re prioritizing more nutritious alternatives like jerky, nuts and rice cakes over chips and cheese crackers. Now, big food manufacturers that make some of America’s most popular snacks are feeling a slowdown in sales. General Mills, which reported its earnings on Wednesday, said its organic net sales are expected to drop 2% to down 1.5% this fiscal year, compared to a flat rate the previous year. In this piece by Gabriela Barkho, we speak to Jonathan Deutsch, Ph.D., CHE, CRC of Drexel University, and Anna Whiteman of Coefficient Capital.

Purchase data has taken on a significant role in CPG advertising strategies, supporting both upper- and lower-funnel brand objectives. According to a new Digiday and NCSolutions survey, 82% of respondents are leveraging purchase/transaction data to optimize their digital advertising efforts. Sponsored by NCSolutions.

Best Buy plans to launch a program allowing influencers and creators to build their own branded digital storefronts on the retailer’s website this spring, its CEO Corie Barry said on the company’s fourth-quarter earnings call this month. Barry said the company expects the program to drive traffic, engagement and sales but did not elaborate with any other details. A Best Buy spokesperson said he had nothing to share yet outside of what was said on the earnings call.

As grocery prices remain a hot-button issue, ALDI USA sought external validation to prove to customers that it has the lowest grocery prices. In early 2024, Aldi commissioned the “Aldi Price Leadership Report” alongside an announcement that it would add more than 800 stores nationwide by the end of 2028. The company released the report last week. The grocer — which currently has 2,400-plus stores — included third-party analysis of shopper sentiment, price comparisons and economic contributions and said it had the lowest prices of any grocer. Read more: https://lnkd.in/dKS5tN-K

Brands affected by tariffs are, in many ways, stuck between a rock and a hard place. They can reroute production to different countries without duties, but tariffs may eventually hit those markets, too. They can raise prices to offset costs, but customers may not want to spend more for the same products. They can try to use different materials, but doing so may affect the quality of their goods. “Tariffs are on again, off again,” Matt Pavich, senior director of strategy and innovation at price optimization software company Revionics, told Modern Retail. “Nobody knows how permanent this is. In four years [at the end of Trump’s second term], will they go away? Will the business community step in and slow some of this down? It’s very disruptive, … and people don’t know whether to fundamentally change their business models.” 📰 Read the full story here: https://lnkd.in/eEJPud_S In this piece by Julia Waldow, we speak to Chip Malt of Made In, Matthew Pavich of Revionics, an Aptos Company, Monica Young Ashauer of Birdy Grey, and Carlos Lagravere of Maesa.

Threats of tariffs, government shutdowns and mass firings of government workers have sparked more economic uncertainty for Americans over the past month. Retail sales, as reported by the U.S. Census Bureau, only slightly increased month over month in February. Kohl's, Macy's, Walmart and Target all tempered sales expectations in recent earnings reports. And consumer sentiment dropped to a more than two-year low, CBS News reported based on University of Michigan data. For retail executives, the barrage of negative news has increased fears of a shopping pullback. It also makes it even more difficult for them to assess their inventory needs as many are already shifting to new suppliers with new tariffs set to begin in April. And with shoppers in a more gloomy state, price increases that retailers feel are necessary to implement because of the tariffs could prove especially detrimental. In this piece by Mitchell Parton, we speak to Bea Chiem of S&P Global, Sky Canaves of EMARKETER, and Scott Benedict of Benedict Enterprises, LLC.

For emerging brands, launching in big-box retail is often the ultimate distribution goal. But launching in thousands of Walmart or Target doors at once also comes with expensive operational challenges. In fact, some brands are saying no when these retailers come knocking, choosing to focus on growing more sustainably, and at their own pace, given the current economic and fundraising environment. Not only do these big launches come with additional manufacturing and marketing costs, but they can also impact a small brand’s entire supply chain. For many brands, preparing to launch into Target and Walmart is a years-long process. They work with their manufacturing partners to ramp up capacity. They have to find other suppliers, like packaging manufacturers, who are accustomed to working with big retailers. And, they have to make tweak after tweak to make sure their margins can support the slotting fees or advertising spend that will come with launching into retail. 📰 Read the full story here: https://lnkd.in/g7jhcFWN In this piece by Gabriela Barkho, we speak to Ross Goodhart of Jupiter, and Anna Reid of Nimbi Supply.