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Uber Eats teams up with Family Dollar.

Hello, it’s Thursday. While tariffs and higher prices continue to present challenges for retailers and consumers alike, Kraft Heinz is investing $3 billion to upgrade its US factories to be more efficient, release more products, and lower costs. We can all take comfort in knowing that no matter what, we will never really run out of ketchup.

In today’s edition:

—Vidhi Choudhary, Jeena Sharma, Kristen Parisi

E-COMMERCE

An Uber Eats courier is seen in Bucharest, Romania on May 1, 2019. (Phot...

Nurphoto/Getty Images

Uber Eats, which says rural America is becoming a top priority, has tapped discount retailer Family Dollar to focus on serving shoppers with discounts and deals on everyday essentials.

“When you look at all the retailers that we’ve onboarded recently—like Home Depot, Lowe’s, Sprouts, and Costco—they’re very rural centric,” Hashim Amin, head of grocery and retail in North America at Uber, told Retail Brew. “We continue to make massive expansion into that space.”

The restaurant and grocery delivery platform said it has been actively reaching out to retailers and grocers to expand its selection of everyday essentials and affordable items for on-demand delivery. “Family Dollar is in a very unique position because they index very highly in value and they also have incredible trust amongst their consumers,” Amin said.

Uber’s focus on affordability comes amid fears of a looming recession. Uber’s deal is a play to potentially safeguard itself to some degree from macroeconomic uncertainty. Economic downturns generally boost discount retailers like Family Dollar as consumers prioritize budget-friendly shopping alternatives. Separately, as Retail Brew previously reported, even Amazon CEO Andy Jassy has said “there’s never been a more important time in recent memory” for keeping prices low, and that the e-commerce giant is “maniacally focused” on this goal.

Keep reading here.—VC

Presented By Wunderkind

MARKETING

A beauty loyalty card next to a generic customer loyalty card

Amelia Kinsinger

Brands have been on edge in recent years, worried by reports of consumer spending pullback and growing selectivity. But a new study from Zeno Group offers a surprising twist: 87% of American shoppers say they support the brands they love—even when it’s not the easiest option.

Meanwhile, 72% of those surveyed said they’d stay loyal to retailers they love even if it meant paying more for their products.

“People truly form relationships with brands—experiencing the highs, the lows, and the emotional stickiness of a real relationship,” Allison McClamroch, head of brand US at Zeno, told Retail Brew via email. “And even in price-sensitive environments, that loyalty can stretch a long way.”

Keep reading here.—JS

DEI

A flat screen with Johnson & Johnson's logo

Sopa Images/Getty Images

Johnson & Johnson (J&J) has quietly dismantled much of its public DEI information over the past several months.

What’s happening? With roughly 138,000 employees worldwide, J&J made a $100 million diversity pledge in 2020, but like many corporations that were previously committed to DEI, it appears to have backtracked. In April, J&J deleted its DEI landing page, and scrubbed several other indicators of the company’s diversity and health equality efforts.

The page, which stated, “Johnson & Johnson is an innovation-based company, and diversity is at the root of innovation,” now redirects visitors to a watered-down Inclusion landing site.

J&J also appears to have rebranded its employee resource groups (ERGs) to “employee business resource groups” earlier this year, removing language about wellness, hiring diverse talent, and employee leadership opportunities.

Keep reading here on HR Brew.—KP

SWAPPING SKUS

Today’s top retail reads.

Going up: Why Walmart might be raising prices. (the New York Times)

New liaisons: Dick’s Sporting Goods strikes a deal to buy rival Foot Locker for $2.4 billion. (the Wall Street Journal)

Close to home: Mulberry CEO Andrea Baldo is betting on local manufacturing to transform the luxury retailer. (Vogue Business)

Americans be shopping…less: With new international tariffs now in effect, consumers and marketers are switching things up. Download Wunderkind’s two-part report for a better understanding of how both groups adapt to price changes.*

*A message from our sponsor.

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