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Inside Retail

Inside Retail (Oct 2nd, 2019)

1. A Holiday 2019 report on the U.S. Retail Outlook from Coresight Research is anticipating potentilally weak holiday retail sales. Coresight's study explained that there is an "ongoing trend of holiday shopping becoming less important to key retailers." Consumers instead shop online year-round on Amazon, Target, and Walmart. Coresight is predicting a 4 percent lift in November and December retail sales, which is actually a decline in growth compared to 4.1 percent from the previous three months. In historical context, holiday sales contributed to 24 percent of all annual retail sales 20 years ago. Coresight's research found holiday sales currently are 21 percent of annual sales and the number is declining. Jewelry sales have seen the largest drop in sales, followed by sporting goods. This holiday season also has six fewer calendar days than last year which will result in less sales for the season. - CNBC

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2. Jeremy Meeks, aka "the hot felon," scored a $15 million deal to collaborate on a "a high-end fashion label" with German textile brand Fashion Concept GmbH. According to an official statement, the "collaboration means a higher profile and a wider audience [for Meeks], because not only will he be a top model, but he will also be marketing his own fashion label." Fashion Concept intends to use the collection "set new standards for sustainability." Meeks was coined "the hot felon" stemming from his mug shot five years ago when he was arrested as part of a gang sweep in Stockton, CA. He was convicted of felony possession of a firearm and grand theft. He's modeled for Tommy Hilfiger, German designer Philip Plein, and has a child with model Chloe Green whose dad founded Topshop. - WWD

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3. The Auckland, New Zealand, Asics flagship store had its digital display monitors hacked causing the screens to play porn when the store was closed. A security guard said the video "ran for a long time, maybe two hours from 8 a.m. until the shop staff arrived at about 10 a.m. Some people were shocked, but others just stopped and watched." The store manager said, "clearly this [was] an embarassing situation." Asics apologized for the "objectionable content" and said it was working with software and security teams to make sure it didn't happen again. - CNN

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4. Vans will launch an apparel and footwear collection celebrating Tim Burton's (and Disney's) "The Nightmare Before Christmas" later this week. The collection centers around six iconic Vans footwear styles. It also includes t-shirts, jackets, socks, hats, and backpacks. The ten piece collection will be available beginning Oct. 4. If you can't wait for Friday for the Vans x Nightmare collection, Vans just also launched a collaboration with MoMa. - KICKS ON FIRE

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5. Rite Aid joined CVS and Walgreens which have stopped selling the over-the-counter heartburn medication Zantac because it may be carcinogenic. CVS said the decision to pull the drug was "taken out of an abundance of caution." The FDA released a statement about an ingredient in Zantac called NDMA that it called "a probable human carcinogen." The FDA is still investigating but tests found NDMA in Zantac "barely exceed amounts you might expect to find in common foods." The drug has not yet been recalled but all three retailers are offering refunds. - MARKETWATCH

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6. Coca-Cola is launching Coke Energy in the U.S. in January 2020. Coke Energy will target gamers and will compete with the second-largest energy drink brand, Monster, of which Coke owns an 18 percent interest. Coke initially tested its energy drink in the U.K. and Germany. Energy drinks are a $12 billion market in the U.S. alone. Bloomberg reports that Red Bull still owns the market and is the top brand in the space. Coke Energy has the same amount of sugar as a 12 ounce Coke and three times the caffiene. Rival Pepsi has used its Mountain Dew brand as its entry product to sell to gamers and launched "Game Fuel" last winter. - BLOOMBERG

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7. A study found the most important selling point for beauty customers in the UK is that the products be plastic-free. Curated cosmetics marketplace Cosmetify found that plastic-free products surpassed natural ingredients, vegan, fair-trade, and cruelty-free as the top concern for beauty shoppers. Plastic-free and reduced plastic trends are showing up in beauty in the form of shampoo bars and refills, and anywhere packaging can be reduced. - ELLE

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8. Surf brand Rip Curl was acquired by New Zealand-based outdoor retailer Kathmandu Holdings for approximately $234 million USD (A$350 million). Kathmandu's CEO said the brands have a "strong cultural alignment" Kathmandu expects Rip Curl to help it grow to a $1 billion surf and lifestyle company, combined with its footwear brand Oboz. Rip Curl was founded in 1969 in Australia and has 254 licensed stores and 7,000 global wholesale partners. - NZ HERALD

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9. Filipino fast food chain Jollibee plans to triple the number of restaurants in the U.S. in the next four years. Jollibee has outsold McDonald's in the Philppines for the past 35 years. The company bought California-based Coffee Bean & Tea Leaf for $350 million this summer, and previously bought Denver-based Smashburger for $210 million. Jollibee plans to derive 30 percent of its revenue from the U.S. in the next ten years. Jollibee opened a store in the Bay Area in Hayward last week and plans to open an LA-based store in Artesia next. - FOOD & WINE

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10. McDonald's teamed up with DoorDash to offer one cent Big Macs this week as part of a promotion. Customers can enter the promo code 1MBIGMAC on the DoorDash app or site, although delivery charges still apply. The code also enters customers in a chance to win $1 million cash from McDonald's. In other McDonald's news, this Michigan-based journalist drove her Prius to Canada to try McD's "P.L.T" (plant-based burger, lettuce, and tomato) and said it was "something that tasted like a fast food burger" and was "almost as tasty" as a regular cheeseburger.  - DELISH

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Written and curated by Cassidy Mantor, a brand storyteller with a decade of retail marketing experience including in-house at Nike and Oakley. Occasionally she writes a “think piece” about fashion law for the American Bar Association. She is happy to be based in coastal Virginia except when there’s a hurricane. She can be found on LinkedIn.

Editor: Bobby Cherry (senior editor at Inside, who’s always on social media).

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