CONSUMER BEHAVIOR & TRENDS

Francis Scialabba

Consumers happily spending more for a brand’s products and continuing to ask for more? In this economy? Sounds like a retailer’s dream, but that’s where Ralph Lauren finds itself after another blockbuster quarter.

Its Q1 revenue jumped 14% YoY to about $2 billion, outpacing Wall Street’s expectations, while DTC comparable sales grew by low double digits.

Perhaps more notable, though, was what shoppers were paying. Average unit retail (AUR) across Ralph Lauren’s DTC network was up 15%, as the company continued to cut promotions and lean into full price. At the same time, Ralph Lauren added 1.5 million new DTC consumers, per the brand.

For Michael Prendergast, managing director in the consumer and retail group at global consulting firm Alvarez & Marsal, the results are the payoff of a strategy years in the making.

“They’ve had this long-term elevation strategy that they’ve had the fortitude and conviction to stick with, and it’s really paid off for them,” he told Retail Brew. “You take one of the most iconic American brands in all of branded history, and you manage it appropriately, and the results are spectacular.”

Keep reading here.—JS

      

Sponsored By Yelp

It’s a known fact that Yelpers like to eat. But they love to shop, too.

Search demand spikes when back-to-school season hits, Black Friday drops, and holiday shopping begins. That’s when buyers make their moves.

Yelp got the receipts, and they totally check out: 82% of users buy within a week of viewing a business on Yelp. These are high-intent customers who are ready to pull the trigger.

With Q4 planning around the corner, Yelp’s full-funnel solutions help get brands in front of users in those surge-to-splurge moments. From brand awareness to increasing in-store shoppers to driving online orders, you can show up for 74m monthly visitors shopping for their next purchase.

Make sure you’re ready for ’em.

STORES

Illustration: Morning Brew Inc., Photos: Unsplash, Adobe Stock

Target’s turnaround is gaining traction, with big bets in categories like beauty and grocery driving strong sales in the retailer’s second quarter.

The retailer reported its second straight quarter of improving results this week, with net sales up 5.3% YoY, and comparable sales rising 3.8% thanks to a 3.6% bump in traffic. It also recorded a nearly $1 billion boost from tariff refunds.

“Our results show that our strategic choices, combined with the hard work of our team, are delivering change that is resonating with guests,” CEO Michael Fiddelke said on its earnings call.

Merchandise sales jumped 5%, with its six core categories all notching growth. Food and beverage and beauty were notable standouts, each seeing sales climb about 7% YoY.

Target just completed its “largest food transition in more than a decade,” Chief Merchandising Officer Cara Sylvester said. The retailer updated half its locations’ center-store grocery assortments, with new products along with refreshed end caps and in-aisle merchandising. It added additional fresh produce, more space for categories like snacks and global foods, she said.

Keep reading here.—EC

      

MARKETING

Spotify/Depop

Secondhand fashion may be going mainstream, but Depop is betting that music can give shoppers another reason to dig through someone else’s closet, especially when that closet belongs to an artist they love.

Depop and Spotify have rolled out their first partnership, bringing together six artists—Eve, Amira Elfeky, Estevie, Frost Children, House of Protection, and Lily Meola—to connect music discovery with secondhand shopping. Each artist is opening a Depop storefront featuring pieces from their own wardrobe, while an accompanying Spotify playlist features their music alongside songs that have inspired them.

The partnership also included a Los Angeles activation spread over two days that featured performances and genre-inspired fashion experiences.

For Depop, the collaboration comes as the resale platform looks to tap into the long-existing relationship between what shoppers listen to and what they wear.

Keep reading here.—JS

      

Sponsored By WooCommerce

Is your SaaS platform holding you back? An IDC study notes that 65% of digital leaders cite legacy platform rigidity as a top barrier to scaling AI in commerce. This means their vendor isn’t moving fast enough—and that could be where open source wins. Download IDC’s latest study to discover the trends shaping the next decade of commerce.

swapping skus

Today’s top retail reads.

Slow not steady: Walmart sales took their biggest hit in six years as consumers remain cautious. (the New York Times)

Go your own way: Why Target and Ulta Beauty are splitting up. (Retail Dive)

Be for real: France has fined British fast fashion retailer Boohoo ~$2.7 million in fines for fake discounts on its website. (Reuters)

^{*A message from our sponsor.}

Jobs

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• Senior Retail Media Account Executive, Orange Apron Media at Home Depot
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• Senior Director, Marketing Customer Intelligence at Home Depot

Quiz

Amelia Kinsinger

The week’s biggest Retail Brew stories, now in quiz form. Test yourself on the latest headlines in e-commerce, shopping trends, retail marketing, and more in a quick, competitive challenge built for retail pros. Challenge your coworkers and see how your score stacks up!