Public Retailers on a Tightrope & Rethinking Retail Tech
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Retail’s Mixed Bag: It's been an intriguing week for retail, with several public companies’ earnings calls highlighting the ever-unpredictable nature of consumer sentiment. Levi Strauss dazzled with strong earnings, surpassing expectations through strategic cost-cutting and market share gains. The iconic denim brand's resilience and adaptability have kept them in the limelight, and The Beyoncé Effect certainly didn’t hurt. Meanwhile, Ulta Beauty hinted at a shift in the beauty sector, with executives suggesting the industry's explosive growth might be stabilizing back to pre-pandemic levels. This development has sent ripples through the market, signaling a possible cooling period for consumer demand in beauty. Adding to the mix, PVH Corp., the parent company of iconic brands like Tommy Hilfiger and Calvin Klein, presented a less-than-rosy outlook, reflecting the diverse challenges facing the apparel industry.
The Bottom Line: While Levi’s demonstrates the strength of strategic adaptation (and perhaps a touch of celebrity magic), Ulta and PVH remind us that, in consumer, one day you’re in and the next day you’re out. Brands, take note: agility and foresight are your best allies.
Cutting-Edge vs. Cutting Back: As retail continues to evolve, technology plays a pivotal role, both as a catalyst for growth and a harbinger of challenge. Walmart is leveraging its logistical prowess by marketing its route optimization tech, a move that underscores the growing importance of supply chain efficiencies. Meanwhile, Visa and Mastercard are in the spotlight for their swipe fees, highlighting the financial strains of transaction technologies. Amazon is also making headlines by scaling back its ambitious 'Just Walk Out' technology, signaling the hurdles in seamless retail innovation.
The Bottom Line: As retail technology continues to evolve, the adoption and refinement of technology remain crucial, balancing innovation's promises against its practical challenges and costs.
The Brief
Boardriders announces strategic layoffs in response to the shifting landscape of the surf and skate apparel market, aiming to streamline operations and refocus on core brands.
Boisson, the non-alcoholic beverage retailer, is closing stores amidst a broader restructuring effort, reflecting the challenges and recalibration within the non-alcoholic industry.
Slate Brands acquires Frontman, a skincare brand for Gen Z males, for an undisclosed amount, aiming to expand its reach and influence among younger consumers with targeted, effective products.
Full Glass Wine raises $14 million in a Series A funding round led by Insight Partners, to fuel its mission of consolidating the fragmented DTC wine marketplace, marking its ambition with the acquisition of Bright Cellars.
L'Occitane Group sells Grown Alchemist as part of its brand portfolio optimization strategy, aiming to concentrate on higher growth potential segments within its global beauty and wellness empire.
Monbake Group, one of Spain's leading bakery companies, is acquired by CVC Capital Partners in a deal aimed at bolstering the bakery's growth and expansion strategies, leveraging CVC's extensive resources and network.
Innocent Meat, the cultivated meat startup, secures €3 million in seed funding from a consortium of investors led by Agronomics, to advance its plug-and-produce technology for scalable, sustainable meat production.
Clean Food Group raises £25 million in a funding round from investors including Breakthrough Energy Ventures, to accelerate the development of sustainable oil and fat substitutes, addressing the urgent need for alternative food production technologies.
Allies of Skin, the premium skincare brand, receives a strategic investment from Meaningful Partners, fortifying its position in the global beauty market with enhanced product innovation and market expansion strategies.
One Group agrees to acquire Benihana and RA Sushi in a $365 million deal, signaling a significant expansion in the restaurant industry, with a focus on enhancing dining experiences and operational synergies across the portfolio.
FullBeauty Brands steps into a bold, inclusive future by acquiring Dia & Co, the leading online marketplace for plus-size fashion.
Thank you for tuning into this week's insights. Axcel's mission is to support the leaders of tomorrow's top consumer brands, and we're here for every step of your journey. Our team are not only experts in navigating the present market; we're dedicated to building lasting legacies, together. For partnership opportunities, strategic advice, or a simple chat about the market, don't hesitate to contact Patrick O'Quinn at patrick@axcelcp.com or Abigail Hitchcock at abigail@axcelcp.com.
Axcel is a boutique advisory firm focused exclusively on emerging consumer. Founded out of a leading consumer investment bank, Axcel specializes in advising founder-led, digital-first consumer brands, providing transaction and strategic advisory services to the world's most promising brands. For more information, please visit www.axcelcp.com.