The Modern Retail Podcast

First up on the Modern Retail Rundown show is a look at Rite Aid potentially getting delisted from the New York Stock Exchange due to a low stock price. Next is the $200 million lawsuit that fridge screen technology vendor Cooler Screens filed against Walgreens, alleging the drugstore chain mishandled the technology's rollout. And, a group of former Etsy sellers called the Artisans Cooperative has launched a competing marketplace that promises lower fees than Etsy's platform.

Greek skin and body care brand Korres is using its decades-long knowledge to continue its expansion.The brand was first launched in 1996 and has expanded over the years into most of Europe, as well as the U.S. While the U.S. is one of Korres's biggest markets (its second largest to be exact), Greece is still No. 1. Co-founder Lena Philippou Korres joined the Modern Retail Podcast and spoke about her brand's growth and transformation.During its first years, said Korres, "we did not have a business plan." Instead, the company began with co-founder Georgios Korres manufacturing products in his pharmacy. They resonated with the local community, and slowly but surely the brand grew from there.In fact, it was pure happenstance that Korres was able to expand internationally. As Korres explained it, a New York-based distributor was vacationing in Crete when they discovered the products in a local pharmacy. "[He] came back to us to talk about bringing the products to the U.S.," Korres said.Distribution expansion has been a major component of Korres's strategy -- and the brand has focused on quality over quantity. For example, in the early years, instead of trying to get placements in every pharmacy in Europe, Korres would reach out to the top department stores in each country. The idea, she said, was to "have a solid presence in all those windows of the world."While Korres has been able to steadily grow its presence into new geographies, one of its big focuses is on figuring out the right formula for online content. For example, the company has tested out livestreams over the years. While it is yet to coalesce on a long-term strategy, Korres is insistent about including live video in her brand's content; "Livestream will definitely be part of it," she said.For now, the focus is on continuing to gain a presence in more countries, as well as establishing the Korres brand to be as ubiquitous as it is in Greece. For the U.S., said Korres, the idea is to stay true to its roots."In the U.S. I want to make sure [we have] more of a streamlined story and proposition -- and people understand what the brand stands for," she said. "And the brand really stands for skin care."

This week on the Modern Retail Rundown, in which the editorial team talks about the biggest industry news, we dive into the FTC's antitrust lawsuit against Amazon. Then, we discuss Target's announcement that it plans to close nine stores due to increased theft. Last, we look into recent shakeups at Peloton and what it means about its business.

People are stressed, and Neurosonic is trying to help them relax.The company, which develops a technology that emits a low-frequency vibration that is then put into products like mattresses and chairs, is based in Finland and is now expanding globally. Neurosonic's first device launched in 2011, and it unveiled its latest generation of products earlier this year at CES. Over the past year, the brand has been focusing on increasing its distribution and retail partnerships.Neurosonic's CEO Juha Suoniemi has been leading this charge. He joined the company last year -- hailing from large European brands like Nokia -- with a mandate to grow Neurosonic's business."The clear target for me is to make Neurosonic more international," Suoniemi said on this week's Modern Retail Podcast.Neurosonic has multiple revenue streams and products. It produces its own devices, like its Gen 2 mattress line. It also partners with other brands, as it did for a nap pod with the furniture company Loook Industries. Its products are sold at retailers aimed at consumers, as well as sold to other businesses -- such as corporate offices and therapists."The big change that we are doing now is, we have been very direct with our business -- direct-to-consumer through our website, and that will continue, but then also [havings] very direct B-to-B kind of approach," Suoniemi said. "And what we are changing now is that we want to be more channel-driven model."That means that instead of seeking out sales directly, Neurosonic is trying to think more holistically -- with scale in mind -- about who it works with. "[It's about] finding new partners, new distributors, new resellers, but at the same time, building our own processes on how do we work with the existing ones and the new ones," he said.Another big focus is on getting more people aware of the Neurosonic product. Suoniemi is doing this by partnering with more influencers -- with a specific focus on athletes -- as well as attending conferences to get a stronghold in the B-to-B space.Figuring out where to invest is one of the big hurdles; "We are trying to carefully select the events that we want to focus on," he said.

This week on the Modern Retail Rundown, in which the Modern Retail editorial team break down the biggest industry headlines, we discuss the latest announcements from Amazon and Target regarding seasonal hiring plans. Then, we analyze Instacart's Wall Street debut. Finally, we learn about the state of fast-fashion returns on the heels of a new policy from H&M.

Vienna-based Waterdrop, best known for its pressed tablets that make flavored water, has ambitions to become a global beverage giant.The brand launched seven years ago in Austria and slowly expanded into other European markets like Germany and France. Now, the company has expanded in the U.S. and is working to become more of a household name. In 2021, Waterdrop said it brought in over $100 million in sales in Europe alone."There are very few European innovations that make it in the U.S.," said founder and CEO Martin Murray. "Typically, the innovations come from the United States." But Waterdrop is trying to buck this trend -- and on this week's Modern Retail Podcast, Murray explained how.Waterdrop is Murray's big vision to make what he calls a "micro-drink" brand. That is, it's a beverage sans water -- meaning it has less of a carbon footprint and requires much less packaging and plastic. Murray wanted it to be cube shaped and he wanted it to be made with real plant and fruit extracts.For months, Murray flew between Europe and Asia meeting with technicians to try and figure out how to make such a product. "Out of 20 meetings, 19 told me it's stupid and it doesn't work," he said. But while in these meetings, Murray was able to get a crash course in product manufacturing and formulation. Through this, he was able to figure out how to ask the right questions and fine-tune his pitch. He finally hit on a manufacturing partner who agreed to give him an R&D budget to try and make the product.From there, Waterdrop was able to build a minimum viable product and bring it to market. Part of Murray's ethos has been to test and iterate. "To be honest, the prototype was really bad -- like, it didn't dissolve, it didn't taste [the right way], you couldn't open the packaging," he said. "But it was a prototype.""We started the company, we started the product then we iterated [while it was on] the market -- got a lot of feedback and since then have been really changing based on what consumers are telling us," he said.When it first launched, Waterdrop was predominately online. But in each country it launches in, it has been expanding more and more into retail -- both wholesale and its own stores. And while retail is becoming a much bigger part of its business, Murray isn't going to pull the plug on DTC anytime soon."Our e-commerce will always exist because it allows us to test products very quickly," he said.For now, the focus is on continuing to expand as well as refining its product."We started [like] a semi-broken Alcatel phone," Murray said. "Now we're looking at the iPhone 5 or 6 -- we went through a progression of iterations. We know how to build the iPhone 10+, but we're on a journey of continuously making those improvements."

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Kristin Hars is trying to start a yoga apparel empire from Gothenburg, Sweden.Hars has worked in retail for decades, rising the ranks at brands like All Saints and Jack Wills -- ultimately becoming the CCO of Nordic fashion retailer Bubbleroom. But she left her position in 2020 to start her own brand, Sisterly Tribe, which makes yoga apparel and focuses on fostering a tight-knit community."I was missing this kind of brand that was very Scandinavian, minimalistic, sophisticated -- a premium brand. But it is also very much about being sustainable and ethical -- and having all these values around it," she said on the Modern Retail Podcast.Sisterly Tribe had very humble beginnings. To get it off the ground, Hars partnered with local yoga studios, as well as started an Instagram account. "Instagram has been a really important channel for us -- growing our following, growing our community… We're spending a lot of time there connecting with the community," Hars said.But after about a year, the business was selling out of products and ready to grow more. In 2022, it raised a seed round of funds to help it expand. As part of its growth, Sisterly Tribe moved its production from Bali to Portugal."It's in Europe, it's closer to home -- and I'm able to visit them more frequently," Hars said. "That was one of the reasons to move -- to be able to scale up the production because now I'm with a partner that has more capacity to scale up and they work with bigger brands."With all of this, Sisterly Tribe has big plans to grow its presence this year -- both in Europe and in the United States as well. Hars is also focused on building a profitable business (the startup, she said, isn't yet profitable)."When you have a profitable company, you can decide the destiny of where the company's going," she said. "You don't have to constantly be out raising funds. And you can focus on actually building the brand, building the community and doing what I'm actually excited about."

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Skandinavisk is trying to sell the experience of Scandinavia in a scent.The brand launched in 2012 with a line of candles that tried to embody different aspects of Scandinavian life. Current scents include "Skog" ("calm of the boreal forest"), "Fjord" ("carved from glaciers") and "Regn" ("after the rainfall"), among others. Some of these scents showcase literal things, like local trees, others try to give a sensory experience to more ephemeral attributes.Its founder, Shaun Russell, originally hailed from the U.K. but found himself in Denmark and Sweden around twenty years ago, and fell in love with the region."It kind of gets into your blood," he said. "I felt the secret of Scandinavia is in balance -- in the balance with nature, the domination of nature that surrounds the region; the balance within society, which it is famous for; but also the balance of the individual, balance of the self." This realization of what made Scandinavia different as a region was the starting point for his brand, Skandinavisk.Russell joined this week's Modern Retail Podcast and spoke about his brand's growth over the last decade.Since its founding, Skandinavisk has expanded beyond candles into diffusers as well as bath and body care. And it's also worked on becoming an international brand beyond its Copenhagen roots. The company has a thriving DTC presence, but has also expanded its wholesale presence into stores like Selfridges and Sephora U.K.Russell is proud of Skandinavisk's retail expansion, but still sees it as one of his biggest challenges. "Distribution is one of the hardest challenges for any business -- both creating it and then managing it," he said.But one thing that has helped Skandinavisk get in front of more eyeballs is its B Corp certification, which requires approved companies to prove they follow strict social and sustainability practices while maintaining the highest form of public transparency. Companies must go through a rigorous process to receive the certification. Skandinavisk sought B Corp approval in 2019 -- "it was one of the hardest things we've ever done," Russell said.And while Russell is happy to have received the B Corp stamp of approval, he said it hasn't led to a huge increase in sales. Instead, Russell said the certification is more of a B-to-B marketing tool. "It draws a different type of person to you," he said -- whether it's a candidate looking to work at a more socially responsible workplace or a retail seeking out more sustainable brands.Today, Russell said Skandinavisk has expanded in ways he didn't expect. But it led him to a useful entrepreneurial lesson. "If you're starting your own brand, you have to be open to opportunity," he said. "You have to have your ears open, and you have to catch chances if they pass you -- even if not necessarily what you were planning."