Introducing The SKUpe: A weekly newsletter for retail leaders
Welcome to the inaugural edition of The SKUpe! We’re excited you’re here for our new retail roundup, where we curate the most essential news, insights and thought leadership along with a dose of fun each week. If you’ve been craving “the SKUpe” with your morning coffee, consider us your go-to resource for all things retail-relevant. We can’t wait to become your inbox bestie.
What’s in store
- Economy “firing on all cylinders" as 2024 ends
- Why world’s biggest brewers are drowning their sorrows
- “Slow shopping,” impulse buying’s sensible sister
- Adore Me director talks authentic connections
- Peloton shifts marketing to target millennial men
The game-changing trends that will define 2025
The retail industry is on the cusp of its most dramatic transformation yet, where science fiction will meet shopping reality, according to one renowned futurist. Think generative AI that can create packing lists and meal plans based on your past purchase history, or dynamic pricing that adapts to individual budgets. And while hardly new, practices like supply chain transparency and sustainability will also benefit from technology.
For instance, get ready for climate-responsive pricing, where products’ costs reflect their environmental impact. Meanwhile, social commerce will continue to reshape the retail landscape and the resale market will become a bigger factor for vintage, luxury and mass brands alike.
Why this matters: The future is not only about sci-fi-like technology, but rather how innovation can enhance every aspect of retail, from in-store experiences to climate-conscious initiatives. Equally important is employees at all levels retooling their skill sets. As AI handles routine tasks, retail workers are evolving into experience orchestrators armed with digital tool and data insights. (Forbes)
The economy is “firing on all cylinders” and here’s why
Let’s start with the good news: the Commerce Department’s latest report shows the U.S. economy grew solidly in the third quarter, with consumer spending increasing at its fastest pace in one-and-a-half years and inflation slowing sharply.
Both continue to defy forecasts of a recession. The health of the economy is a top priority for all who are discontent about high food and housing costs, but the economy has stayed resilient despite 5.25 percentage points of interest rate increases from the Fed in 2022 and 2023 to tame inflation.
Consumer spending, which accounts for more than two-thirds of economic activity, grew at a 3.7% pace, up from 2.8% in the second quarter. Spending was boosted by outlays on both goods and services, including prescription medications, doctor visits, motor vehicles, dining out and hotel stays.
Why this matters: The slowdown in inflation has allowed the central bank to make an unusually large half-percentage point rate cut, the first reduction in borrowing costs since 2020. Economists do not expect the strength in domestic demand to deter the Fed from cutting rates in November and December, but the reduction may not be as large if the trend continues. And while consumption is being underpinned by a resilient labor market and a rise in household net worth, there was moderation in income growth and a slowdown in spending is expected. (Fast Company)
Peloton shifts marketing focus to men
Meatballs, anyone? IKEA opens restaurant on UK’s high street
Hold my beer: Brewers’ volumes down as people spend, drink less
More consumers “slow shopping” vs. impulse buying for holidays
Lights out: Store closures to continue into 2025
Paula Angelucci: Genuine connections shape retail’s future
“Learning about people isn’t a chore for me, it’s something I enjoy. I ask, ‘How are your grandkids? How was your vacation?’ You’re not going to remember every detail but really try and remember a key few. I learned that early on in my career.” -Paula Angelucci, Adore Me
On a recent episode of iHeart’s Rethink Retail podcast, “The Heart of Retail: Authentic Connections With Paula Angelucci,” the Adore Me District Director of Retail Stores describes how she took stock of her life this year, from embarking on a wellness journey to becoming a transformational leader.
“As I’ve gone through my career, I talk less and listen to my team more. What are their goals? How can you help them scale personally and professionally? Coming from a place of kindness and empathy will never get old,” she said.
Her best advice?
“Stay curious, ask questions, assume positive intent. That lends itself to encouraging a growth mindset.” Her people-first approach works: she says 20% of the team in every store were customers first.
Why this matters: Angelucci is all in on brick-and-mortar stores. Her personal approach ranges from creating customer experiences that redefine the shopping journey to implementing multiple programs to grow leaders within the company. Listen to the podcast here.
Beyond ChatGPT: The many ways AI can help businesses scale
Much has been made of the rise of artificial intelligence — Robots! Self-driving cars! — but not so much about how, specifically, it can help drive growth and optimize business processes. The tech recruiting and networking platform BuiltIn (think of it as LinkedIn’s nerdy sibling) compiled 51 companies offering AI-powered products to aid critical business functions like customer service, cybersecurity, HR, marketing and sales. You’ve probably heard of Klaviyo and Salesforce, but what about Contentful, Smartly and Textio? They’re snappy monikers, but what we really need are summaries of what each company actually does in order to decide if they can help us. Thankfully, this roundup provides just that.
Why this matters: We’re familiar with chatbots and virtual assistants, but a deeper dive reveals the many ways they can be used to enhance the customer experience, from training and coaching employees to providing trip recommendations based on real-time travel and spending data. In marketing, AI solutions that identify product attributes and accurately describe them using customer-centric language can improve product recommendations and messaging materials. (BuiltIn)
What we’re reading
Lauren Sherman and Chantal Fernandez’s juicy business chronicle, Selling Sexy: Victoria’s Secret and the Unraveling of an American Icon. The veteran fashion journalists delve into how the once-niche intimates chain grew into a retail juggernaut, and detail owner Les Wexner’s swift fall from grace, along with the brand’s own cultural reckoning. A thoroughly reported and equally glossy read.
What we’re watching
Instagram comedians Vincent Marcus and Manon Mathews’ hilarious spoof on Erewhon, the Los Angeles health food emporium that gained national fame with Hailey Bieber’s $20 Strawberry Skin Glaze Smoothie. It’s not inaccurate, and it may leave you craving organic almond butter.
What we’re doing
The Foundermade Innovation Show L.A. is on Nov.7 at Santa Monica’s Barker Hangar. The one-day experiential tradeshow features nearly 100 innovative consumer brands spanning beauty, wellness, F&B and home for buyers and retailers to discover in a relaxed, up-close-and-personal environment (admission is complimentary for accredited retailers). There’s also a packed speaker agenda, including brand founders Miranda Kerr, Christine Teigen, Rachel Zoe and Laird Hamilton.
Thanks for reading today's edition!
You can reach the newsletter team at theskupe@mynewsletter.co. We enjoy hearing from you.
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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto
