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To:Brew Readers
Retail Brew // Morning Brew // Update
Sydney Sweeney’s Syrn.

Hi hi, ICYMI the world of AI witnessed an awkward photo op in India this week, when OpenAI CEO Sam Altman didn’t exactly join hands with Anthropic CEO Dario Amodei during a group photo with Prime Minister Narendra Modi. With both companies racing to become the default brand of AI, any rivalry probably isn’t personal, and it remains to be seen which company retailers will pick for their AI shopping needs.

In today’s edition:

—Jeena Sharma, Erin Cabrey

MARKETING

Promotional image from Syrn

Syrn

From her American Eagle ad that polarized audiences to her new lingerie brand, Syrn (as in “siren”), Sydney Sweeney has become something of a case study for a long-standing marketing question: Is all publicity ultimately good publicity?

For Syrn, the launch strategy leaned straight into attention. A fiery campaign rollout and a Hollywood Sign stunt once again split the internet. According to one marketing professor, whether that’s good or bad for business is…complicated.

“She’s such a presence right now, even starting from the American Eagle ad, she's already kind of this flashpoint figure,” Wendy Zajack, adjunct faculty at Georgetown University’s McDonough School of Business, told Retail Brew. “So you could be like, ‘I hate her because of the American Eagle,’ or you love her because of the American Eagle, but no matter what, you’re talking about her. For a brand launch, that’s always a good thing. Controversy and craziness and all that kind of stuff is good for initial curiosity.”

Once the initial curiosity fades, however, even a celebrity-led brand needs to have a good product and an audience that buys into its messaging.

Keep reading here.—JS

Presented By The Bouqs Co.

STORES

Walmart shoppers

Scott Olson/Getty Images

As consumers’ financial stress rises, they’re increasingly turning to mass retailers like Walmart for their groceries, according to a new report by customer data science and analytics company Dunnhumby.

The company’s quarterly Consumer Trends Tracker—which interviews 8,500 consumers from the US, Canada, Brazil, Colombia, Mexico, and Chile—found that mass retailers (big-box stores like Walmart and Target) and traditional supermarkets (like Kroger, Albertsons, and regional banners) have hit the same grocery penetration, 79%, for the first time since the tracker began nearly four years ago.

Mass retailers’ grocery penetration has risen 5 percentage points over that time, marking millions of consumers’ behavior shifts. Walmart’s grocery penetration jumped 6 percentage points YoY, reaching a record 72%. The dollar channel, hitting 42% penetration, has surpassed club stores for the first time in over two years, with Dollar General, Dollar Tree, and Family Dollar all seeing their penetration jump 4–6 percentage points YoY. Discounter Aldi’s penetration also increased 2 percentage points YoY.

Keep reading here.—EC

FASHION

Still image of the Gucci Art of Style book

Gucci

After a surprising pop in its stock prices despite lackluster Q4 earnings, some analysts believe Kering may finally be entering the early stages of a turnaround.

The French group has had a bruising few years, with sales sliding and its crown jewel Gucci consistently underperforming. But under new CEO Luca de Meo, who officially came on board in September, and Demna taking over as creative director of Gucci in July, experts are hoping for a better year.

Keep reading here.—JS

Together With Netguru

SWAPPING SKUS

Today’s top retail reads.

Dethroned: After 17 years, Amazon has overtaken Walmart in revenue in the US, thanks to its AWS arm. (the Wall Street Journal)

Dad shoe: New Balance is one of the breakout brands growing faster than rival Nike. (CNBC)

Ring fencing: How Ring’s first Super Bowl commercial highlighted a privacy problem for the company. (the New York Times)

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