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Packaging might be doing more selling than you think. This week we're looking at what the numbers say about first impressions, plus the latest on tariff refunds, retail returns and AI on the shop floor.
But first, a quick note from The SKUpe’s new writer:
Hey readers! Breaking the fourth wall here for a second to introduce myself—my name’s Shefali and I’ll be your new writer of The SKUpe coming to your inbox each week. I’ve been writing about retail, CPG and supply chains for a decade, and I’m looking forward to curating the biggest news and most important business insights in retail to hopefully make running your company (a little) easier.
Any suggestions on what you’d like to see more or less of, I’m all ears. Just hit reply to this email and let me know what you’re thinking.
Alright, let’s get to it ➡️
[ FIRST GLANCE ]
Hot list. The National Retail Federation ranked the 25 fastest-growing retailers. See who made the list.
Inside Amazon. A reporter went behind the scenes of an automated Amazon warehouse in Washington state. Check out her photos + article on how the sausage is made.
Furniture drama. An Ethan Allen shareholder didn’t mince words in a critical letter about the furniture retailer. His take? Ethan Allen is like a “melting ice cube” that’s failing to grow because of an outdated strategy and stagnant leadership. Yikes …
From books to underwear. A candy bar and energy drink? Nope, consumers have way bigger visions for what they’d like to be able to purchase from vending machines.
Too soon?! Target’s shelves are stocked to the brim with pumpkin-spice products. Forget calendars and the autumnal equinox—this is the clearest sign that fall is imminent.
[ THE TOP LINE ]
Are small retailers overlooking the importance of packaging?
Despite being warned not to judge a book by its cover, most of us have definitely judged a product by its packaging. In a recent study by Adobe Express, 73% of consumers said premium packaging improves their perception of a brand. Meanwhile, 57% of shoppers who had a “memorable” packaging experience bought again from that same brand. And in today’s social media era, 42% of consumers watched an unboxing video and proceeded to search for or follow the brand.
Why this matters: If you’re still placing your product in a cardboard box and tossing those pesky packing peanuts on top, it may be time for a new strategy. When a consumer buys your product, packaging is the first thing they see, and the numbers clearly show that the right packaging has the potential to improve brand perception and loyalty. This is an area where small retailers, in particular, have a chance to shine with handwritten notes, eco-friendly materials or branded tissue paper. (RetailWire)
Gif by mootvideo on Giphy
[ THE LOWDOWN ]
MONEY BACK: Trump admin says $100B in tariffs have been refunded
COMING SOON: Health insurance premiums for small employers proposed to go up 14% in 2027
JOINED FORCES: Spencer Spirit acquires Hot Topic
TIME TO SHED: Canada Goose divests performance footwear brand Baffin Limited
SHIPPING PARTNER: UPS woos SMBs with new pickup dashboard, faster label creation
BUSINESS BOOM: 3.5M new companies launched in first half of the year—a 14% YOY increase
AN ICON: Mattel launches Whitney Houston collectable Barbie
[ POLL ]
Have you received any tariff refunds?
[ THE THINK TANK ]
Every return decision gets made on incomplete data. People who abuse return policies rely on exactly that blind spot.”
Retail returns keep growing, and they’re costing the industry billions of dollars. Compounding the problem: independent retailers don’t always have visibility into problematic customers and serial returners the way big-box chains do.
Check your email next Wednesday for our Q&A with Pedro Ramos of Appriss Retail, who shares how small retailers can alleviate return problems without sacrificing customer satisfaction.
[ THE DOWNLOAD ]
Michaels launches AI shopping assistant
Arts and craft retailer Michaels now has a feature called “Ask Mike,” built with Google Gemini. Shoppers describe, in natural language, the next art project they want to tackle, and the AI gives them product recommendations to bring their vision to reality.
Why this matters: Consumers increasingly expect a personalized, customized experience when they’re shopping. But something to ponder: is it really personal when a machine is the one giving out advice? (Chain Store Age)
Thanks for reading today's edition!
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The SKUpe is curated and written by Shefali Kapadia and edited by Bianca Prieto.
