It’s in the Whole
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What Whole Foods looks for in new brands.
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May 13, 2024

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It’s Monday, and while Pop-Tarts have been a supermarket staple and getting great reviews from kids since they were introduced nationally in 1964, we are sad to report that the same can’t be said for reviews of Jerry Seinfeld’s movie about the toaster pastry’s origins, Unfrosted. The film currently has a rating of just 40% on Rotten Tomatoes.

In today’s edition:

—Erin Cabrey, Alex Vuocolo

STORES

Food for thought

Whole Foods Market Whole Foods Market

As SVP of merchandising, center store sourcing and product development at Whole Foods, Alyssa Vescio oversees the store’s grocery, general merchandise, and exclusive brand portfolio—from local products to national brands.

The role is equal parts “art and science,” Vescio told Retail Brew, as she leverages her 20 years of merchandising experience and a little risk-taking with data and insights to inform decision-making. To bring in new brands, she scours farmers markets, local co-ops, trade shows, other retailers, and even Instagram and TikTok and her friends’ shopping carts, and she shared what brands need to know about the journey to Whole Foods shelves and beyond.

What is your process when you’re looking at a brand and figuring out if it’s right for Whole Foods beyond that standard Whole Foods criteria?

One of the starting points is our quality standards, those are non-negotiable for us…The second thing we look for is innovation that is interesting. We have a finite amount of space on our shelves, and a lot of mature categories. So when we’re looking at new entrants to the space and emerging brands, we look to say, “What is the open space within that category? Is this innovation bringing something completely new to the category? Is it disrupting or waking up the category? Will our customers be excited about it?” In many ways, we’re looking not just for a flavor extension of something, but really meaningful innovation within a category.

Keep reading here.—EC

   

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E-COMMERCE

Clicking into place

A grocery cart attached to a computer mouse. The_burtons/Getty Images

E-commerce spend grew by 7% year over year to $331.6 billion in the first four months of the year, according to a report from Adobe Analytics.

The report—which spanned more than a trillion US retail sales site visits, 100 million SKUs, and 18 product categories—found that shoppers have been increasingly trading down to less expensive goods in several categories.

Category closeup: Online spend grew modestly for electronics (up 3.1% YoY to $61.8 billion), and apparel (which rose 2.6% YoY to $52.5 billion). Both categories made up 34.5% of e-commerce spend. Cosmetics, a category Adobe said it tracked for the first time, saw 8% YoY growth to $13.2 billion.

Grocery shopping online also continued to gain ground, raking in $38.8 billion, which represented 15.7% YoY growth.

Keep reading here.—EC

   

RETAIL

Big data

Walmart storefront Alexander Farnsworth/Getty Images

In collaboration with TalkShopLive and Rolling Stone magazine, actor Kate Hudson will host a special living room concert for her debut album this Friday, which will double as a shoppable simulcast featuring autographed CDs and themed merchandise. TalkShopLive calls it “social selling,” and like Hudson’s new musical career, it’s an attempt to become a crossover hit.

Here’s what else is going on in retail:

In data: It’s a big week for data releases. The Bureau of Labor Statistics will drop the Consumer Price Index (CPI) on Wednesday, and some are worried it won’t show enough cooling prices to spur the Fed to lower rates, while others are concerned that inflation could be settling at a higher rate than is healthy for the economy. The March report showed prices rose 3.5% year over year, a slight uptick from the previous month. Meanwhile, we’ll get to see how inflation is (or isn’t) influencing consumers, as the Census Bureau will release monthly retail sales numbers for April on the same day. The March report marked the second straight month of sales increases, rising 4% year over year.

In earnings: Some heavy hitters report this week, including Home Depot on Tuesday and Walmart on Thursday.

Keep reading here.—AV

   

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SWAPPING SKUS

Today’s top retail reads.

Strike different: Workers at an Apple Store in Maryland that was the first to unionize have now voted to authorize a strike over “unpredictable” scheduling and wages. (the Associated Press)

Supreme court: Nike will release a signature shoe with A’ja Wilson, marking only the 13th time a WNBA player has had that distinction. (ESPN)

Hot or not: Huy Fung Foods is pausing production of its popular sriracha sauce until September, explaining that its supply of chili peppers was “too green” for its famously red condiment. (CBS News)

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HOT TOPIC

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

Chuck E. Cheese is phasing out its animatronic band, Munch’s Make Believe Band, and by the end of 2024, they will be removed from all but two of the chain’s 400-plus locations. They’ll be replaced by huge TVs, digital dance floors, and more seating, the company told the New York Times.

You tell us: Are you in favor of Chuck E. Cheese’s decision to phase out its animatronic band? Cast your vote here.

Circling back: Last week, we told you about a report from WebPurify that indicated kids 8 years old and younger spend an average of 2.48 hours a week on e-commerce sites, either just browsing or making purchases. So we asked if you thought parents should permit children 8 and younger to shop online.

Nearly 8 out of 10 of you (79.2%) thought parents should not permit children 8 and younger even to visit e-commerce sites, while 18.2% thought kids that young should be allowed to visit online stores but not complete purchases. A scant 1.9% thought kids 8 and younger should be able to not only visit e-commerce sites but also complete purchases, while 0.6% did not know or weren’t sure.

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