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It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week, and what we’re still thinking about.
From a new CVS private label to Under Armour’s future with Kevin Plank back at the helm, here’s our closeout for the week.
What you may have missed
Dollar General, Guitar Center name ops execs
Dollar General and Guitar Center named new operations leaders this week.
Lee DeVille joined Dollar General as senior vice president of store operations, the company said in a Wednesday announcement. DeVille will lead operations for three of Dollar General’s retail divisions, comprising nearly 7,000 stores in the U.S.
DeVille previously served as vice president of operations for Save-a-Lot and led field operations for all corporate stores, along with the company’s retail support and continuous improvement teams. He also served in roles of increasing responsibility at Walmart, including field store operations, fresh implementation, innovations, safety and asset protection for nearly 20 years.
At Guitar Center, Michael Martin will serve as executive vice president of retail sales and operations. The musical instrument retailer said Tuesday that Martin will oversee and manage store operations and customer service.
Martin will also oversee strategic initiatives across the company’s 300-plus stores and lead a team of 6,000 employees, including retail store operations associates, musical instrument repair technicians and music teachers. Before joining Guitar Center, Martin held leadership roles at major retailers including Staples, Fanatics, and Wayfair.
GU flagship to open in NYC
Uniqlo sister brand GU is ready for the Big Apple. The company on Monday announced the opening of a new store, GU NY SoHo, scheduled for this fall. It will be the Japanese retailer’s first overseas flagship location.
The store will offer women’s and men’s apparel, along with shoes, bags and accessories. The launch of an online store with the same product lineup will coincide with the brick-and-mortar opening.
The company currently has a pop-up store in New York, which is scheduled to close this summer. “We have applied what we learned from the pop-up store to establish a framework for product development and business operations at a global level, and we are extremely pleased to be officially opening a store in the United States this fall,” GU CEO Osamu Yunoki said in a statement.
CVS adds ‘crave-worthy’ snacks under private label Well Market
CVS Pharmacy, the retail division of CVS Health, is expanding its food and beverage repertoire. The chain launched the new Well Market brand comprised of healthy snack foods, groceries and beverages on Thursday.
The Well Market line has around 40 products and is now available in over 9,000 CVS Pharmacy locations nationwide and on CVS.com, according to the press release.
“Our goal at CVS Health is to be the most consumer-centric health care solutions company,” Musab Balbale, chief merchandising officer for CVS Health, said in a statement. “Through this repositioning and expansion of our food and beverage portfolio, we are doing more by providing new nutritious options our customers crave.”
The options include items like probiotic-boosted dried prunes, jalapeno roasted in-shell pistachios, vanilla-flavored honey roasted pecans, salt and vinegar flavor-infused almonds, and peanut butter and caramel probiotic-boosted popcorn.
The brand rollout will continue through the end of 2024. Meanwhile, existing Gold Emblem, Gold Emblem abound and Big Chill product lines that are already in CVS will be brought under the Well Market umbrella gradually.
Retail therapy
Dolly’s doughnuts
On Saturday, Dolly Parton fans have an excuse to dress like the beloved country icon in exchange for her favorite southern flavors.
Parton collaborated with Krispy Kreme for her limited-edition Dolly Southern Sweets Doughnut Collection of four donuts, the partners announced Tuesday in a press release. The dozen box features signature flavors like banana puddin’ pie, chocolate creme pie, peachy keen cobbler and the Dolly dazzler.
To celebrate the donuts, Krispy Kreme is inviting fans to visit stores Saturday “Dolly’d Up.” Whether decked out in a Dolly Parton wig or simply wearing her merch, customers will receive a free glazed doughnut. Not “Dolly’d Up”? Just sing your favorite Parton song to an employee for the free item.
The collaboration also consists of a limited-time six-pack of doughnuts with select flavors from the partnership, available at grocery stores.
PetSmart awaits the next chief toy tester
There’s only one dog and one cat out there who truly have what it takes to fulfill the coveted role of chief toy tester, and PetSmart is on the hunt to find out who. The retailer announced the return of its toy tester search on Tuesday in a press release.
Pet parents can submit an application for their furry friend to review products from PetSmart and give feedback on upcoming collections for a year.
Each quarter of the year, the winners will be shipped the latest toys, treats, costumes and apparel. They’ll post product reviews to social media and be official PetSmart models. Each chief toy tester also receives $10,000. Applications close May 29.
What we're still thinking about
$2.2M
That’s how much holding company Further Point Enterprises paid to acquire Foxtrot’s assets during a foreclosure sale earlier this month. The assets of Foxtrot’s sister company Dom’s Kitchen & Market were not sold at the time.
Both companies late last month abruptly ceased operationsjust months after announcing a merger to form Outfox Hospitality.
Outfox earlier this week filed for Chapter 7 bankruptcy protection.
25.2%
That’s how much Grove Collaborative’s revenue slid in the first quarter, to reach $53.5 million. The cleaning company said the decline was largely driven by a decrease in DTC sales as a result of lower advertising spend during the period. Total DTC orders fell 29.5% from the year-ago period to 773,000, as its DTC customer base narrowed 35% year over year to 807,000.
Grove, however, was able to narrow its losses during the quarter: Operating loss improved 96% to $533,000, while net loss contracted 74% to $3.4 million.
What we're watching
Under Armour’s next move
Under Armour founder Kevin Plank had strong words for the brand — and its stakeholders — in his first earnings call back as CEO, after the surprise exit of Stephanie Linnartz in March. The executive announced a restructuring plan, including layoffs, and laid out sweeping changes he plans to make at the athletics company.
Among them, Under Armour will cut its SKU count by 25% in the next 18 months, reprioritize its men’s apparel business (women’s and footwear had been focus points previously) and reduce the now “unacceptable levels” of outside agencies and experts working with the brand. Plank envisions the brand selling fewer products going forward and reducing sitewide discounts on its website by more than 50% in the year ahead.
With persistent declines, change is sorely needed at Under Armour, but the success of Plank’s roadmap won’t begin to be clear until at least late 2025, when the first new product is expected to hit shelves. And it’s not just product that’s under the microscope: Plank blasted the retailer for becoming “overly siloed and bureaucratic” and developing competing internal agendas.
For better or worse, things at Under Armour will change this year.
