The Modern Retail Podcast

A recent lawsuit by the FTC accuses Southern Glazer’s Wine and Spirits of unfairly favoring large retailers over independents, stirring debate on anti-competitive practices in the alcohol industry. Meanwhile, Walgreens is mulling a move to go private with Sycamore Partners amid troubling sales and stock struggles. The conversation also sheds light on Amazon's crackdown on paid reviews, as it faces challenges differentiating genuine feedback from fraudulent ones, highlighting a broader issue in online retail.

Pete Maldonado, co-founder and co-CEO of Chomps, shares his insights on the rise of better-for-you meat snacks. He discusses the brand's strategic shift from e-commerce to major retailers, emphasizing the pivotal partnership with Trader Joe's. Maldonado tackles the unique challenges of entering convenience stores like Wawa and Sheetz, highlighting the importance of packaging and quick consumer recognition. He also touches on data-driven growth strategies and targeting the health-conscious demographic, ensuring that Chomps stands out in the competitive snack market.

Mall traffic is on the rise, with a surprising 7.1% increase during Black Friday, driven by strategic marketing. Gen Z is reigniting interest in malls as social hubs, prompting operators to adapt their strategies. Meanwhile, Spindrift is catching attention due to a potential $650 million acquisition, showcasing its success in the beverage market. On a different note, Foot Locker faces challenges with disappointing earnings and a reliance on Nike, raising questions about its future strategies in a tough retail landscape.

Toussaint Wattinne, Co-founder and CEO of Upway, shares insights from his background at Uber to his efforts at optimizing the U.S. e-bike market. He discusses the unique challenges of introducing secondhand e-bikes to American consumers and how Upway tailors its marketing strategies based on regional differences. The conversation delves into the logistics of sourcing and trade-in solutions, the importance of consumer trust, and the potential impact of major events like the Olympics on e-bike adoption, highlighting the evolving landscape of urban commuting.

The discussion kicks off with the competition between big box retailers and online marketplaces, highlighting logistical challenges during the holiday season. Walmart's strong growth contrasts sharply with Target's struggles. Strategies to attract budget-conscious shoppers are examined, along with the rising significance of social commerce on platforms like TikTok. Additionally, there's a look at the resurgence of traditional marketing methods as retailers adapt to changing consumer engagement patterns amidst crowded digital spaces.

Lexi Lebsack, West Coast correspondent for Glossy, and Sara Spruch-Feiner, Senior reporter at Glossy, delve into holiday shopping trends. They forecast nearly a trillion dollars in consumer spending, highlighting the rise of chaotic shopping habits fueled by platforms like Temu and TikTok. The duo discusses brands adapting their marketing strategies for self-gifting, alongside the contrasting approaches of luxury versus value-driven retailers. They also explore how Gen Z is revolutionizing holiday shopping through social media integration.

This week, the discussion tackles Target's disappointing third-quarter earnings and the shifts in consumer behavior influencing retail strategies. REI's crackdown on serial returners highlights the growing issue of excessive returns in the industry. The conversation also touches on Starbucks' struggles in China, facing stiff competition and declining sales, prompting thoughts on possible business changes. Together, these topics illustrate the evolving challenges in the modern retail landscape.

The espresso martini has been having a moment for the last few years.According to NIQ CGA’s cocktail tracker, in 2023, orders for espresso martinis doubled in velocity and dethroned the Long Island Iced Tea as the sixth most popular cocktail. Riding this wave is the coffee liqueur Mr. Black, which, since its U.S. launch in 2017, has driven one-third of the total retail sales growth in the coffee liqueur category.Mr. Black launched in Australia but has become an international phenomenon; it was acquired by Diageo in 2022. According to the brand's co-founder and now-creative director, Tom Baker, though the espresso martini wasn't popular when it launched, he had a feeling a well-crafted coffee-based liqueur would be a global hit."I just had this sense that every bar in the world would one day want to buy this product from us," he said on the Modern Retail Podcast. "And that was all the strategy that went into it."There were a few elements that led to Mr. Black's growth. For one, it became a key ingredient in a popular cocktail. Additionally, Baker knew that the brand's success was predicated on key placements in New York City."It was sort of the hub of cocktail culture," he said. "All roads kind of lead there, especially in liquor." So, Baker and a friend went door to door to get some of the best bars and liquor stores to sell the product. From there, the company made sure to keep the right celebrities and influencers abreast with its growth.One thing led to another, and Mr. Black was able to reach the big time."All of a sudden, without you knowing, it's [Stephen] Colbert and [Hugh] Jackman drinking a Mr. Black Espresso Martini," he said. "So it definitely is equal parts an extraordinary amount of hard work and an extraordinary amount of luck."

Red Lobster is undergoing a major rebrand to attract younger diners after struggling with significant location closures and a dip in traffic. Meanwhile, Tapestry has scrapped its $8.5 billion merger with Capri due to antitrust challenges posed by the regulatory bodies. Amazon is making waves in the healthcare sector by rolling out telehealth services through One Medical, addressing everything from skin care to hair loss, and reshaping the competitive landscape for healthcare startups.

KiwiCo has built a profitable subscription business, but it sees retail expansion as key for this year's holiday sales."We're really excited about our retail efforts," KiwiCo founder and CEO Sandra Oh Lin said on this week's Modern Retail Podcast.Lin launched the children's education product company in 2011. KiwiCo sells themed packages -- what it calls crates -- to kids every month based on certain subjects. There are science crates, geography crates, art crates and more. It recently launched a revamped version of its subscription service, called Clubs, that is now more on interests.Over the years, the company has expanded its product lines to encompass more ages and topics. In 2014, it expanded beyond preschool-aged crates into three additional age bands. "You can really draw a line to our first month of profitability from that particular set of initiatives that we launched," Lin said.Now, KiwiCo offers products for kids age between the ages of 0 and 16, has sold over 50 million products and is profitable.Lin spoke about why subscription was right for her type of product. "I think the key thing for us is that we have been very thoughtful about what makes sense for those customers," she said. "And the subscription model happens to have worked really well."Now, the company is focused on expanding beyond that. Earlier this year it launched in both Target and Barnes & Noble. "I think there's a lot of different opportunities that are coming up thanks to the partnership with these with these retailers," Lin said.Specifically, she sees these retailers helping grow holiday sales. "it's been really great because we've seen a real willingness from these retailers to work with us and to partner with us during the holidays," she said.