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The Unofficial Most Interesting Retailers List (August) | Reimagining Retail
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- [00:00]
A
Unlock more growth with awin. Tackle acquisition, conversions and retention by tapping into a network of over a million affiliate partners with everything from partner management to reporting and payments in one easy dashboard, AWIN helps brands drive real scalable results. Visit awin.comemarketer to learn more. Hello, listeners. Today is Wednesday, August 27th. Welcome to behind the Reimagining Retail, an E marketer podcast made possible by awin. This is the show where we talk about how retail collides with every part of our lives. I'm your host for this week, Ariel Fager. Today we're covering our unofficial most interesting retailer of the month list for August. But first, let's meet our guests. Joining me for for today's episode, we have Emmy Lederman, the newest member of our committee. Welcome, Emmy. Hello.
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B
Thanks for having me.
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A
Thanks for being here. We're also joined by Blake Drosch. Hi, Blake. Great to have you.
- [01:06]
C
It's good to be back.
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A
Awesome. And last but not least is Sky Canavas. Thanks for being here, Sky.
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D
Thanks for having me. And welcome, Emmy. Thank you.
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A
Yay. Okay, let's jump into the list. As most of you already know, the committee, AKA Emmy and myself, will present our list in the first half of the episode. Then in the second half, Blake and Sky will have the opportunity to make some changes. Here's what we've come up with this month. Number eight is Warby Parker for two reasons. First, as part of its ongoing expansion into brick and mortar, Warby has officially opened its Target shop and shops. Though Target is struggling to drum up foot traffic at the moment, it does give Warby and Parker another touch point to reach new and existing customers. The second reason is the company has ended its at home try on service, which I think is a little risky. It's one of the things that made Warby Parker so popular in the beginning and distinguished it from, from its competitors. I guess now that they're all in on physical storefronts, they're looking for a way to stir up traffic, which I think makes sense. But again, a little, a little interesting to go back on something that, that made you so popular in the first place.
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C
Yeah, I think that that was sort of like the most unique use case that they had as a business. And I don't know how many Target locations they're going to be operating inside of, but it would have to be a lot in order to really make up for the fact that they're eliminating that offering. Right. I mean, I think for me as like a Warby Parker customer, they, I don't I don't know if they have a Starbucks near. I mean it's a Starbucks I'm getting. My store in store is confused with Target. I don't know if they have a Target nearby that I'll actually like be able to replace that service for me personally.
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A
Yeah, and also, I mean there's just nothing more convenient than getting something delivered to your house. Like even if a Target is five minutes down the road, it's still not the same. So I don't, I don't know, I'm not sure how, how people are going to feel about it.
- [03:19]
D
Yeah, I'm a little worried about this because I get the, the, the try on at home can be very expensive because you have to build in all those reverse logistics costs into your business. But Target is really struggling. As we saw from the recent results, store sales are still falling. The Ulta beauty store in store partnership, which is probably the most prominent one that they have has now been announced will be no more as of next year. It's being wound down. And I think a big part of that is that the Ulta shop in shops just weren't bringing in enough business for Ulta. I've heard reports that they only accounted for about 4% of Ulta's sales. So ultimately not worth it. And Warby Parker may also struggle to find meaningful growth through a Target partnership. Now if they went into Starbucks, that would really be something. Fill some of those glass cases with glasses next to the croissants.
- [04:22]
A
Honestly, not a bad partnership idea. Let's, let's, let's keep that in mind. Number seven is Best Buy. This is another shop and shops brand play. Best Buy is going to launch Ikea shop and shops that feature products from both retailers. Apparently this is the first time Ikea's products going to be available through another US retailer. And I think it kind of makes sense. You know, you're shopping for a new washing machine, you look over, you see an IKEA display for like a laundry room and it gives you ideas of how to kind of update your space or organize it. So I think it makes sense. Also kind of note, Best Buy's third party marketplace has officially launched which more than doubles its products available online. So I think between those two things that earned it its spot on the list, it's interesting.
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C
I think, you know, consumer electronics sales have really struggled like and it's been going on a long time now. I think really, you know, you had this like really strong growth during the pandemic where everybody replenished all their big purchases. And even as demand has sort of come back a little bit, Best Buy has not really reaped the benefits of it. It's really gone primarily to Amazon, at least in terms of E commerce growth. So I think it makes sense to see Best Buy trying to branch out a little bit. But when you're a retailer, particularly a specialty retailer, you always want to be careful about how broad your reach becomes because you also run the risk of sort of losing your core identity as well.
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A
Number six is Anthropologie. Emmy, tell us, why does this make the list?
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B
So Anthropologie just decided to open up stores that exclusively carry its in house line clothing line called Maeve. I thought this was interesting because Anthropologie is owned by Urban, which is a holding company that owns its Urban Outfitters, Anthropologie, Free People and Nuuly, which if you're not familiar, is the wing of the company that does like clothing rentals. And I think because of Nuuly's popularity, it actually has given more of a spotlight onto the brands within Anthropologie. So maybe someone wouldn't have known Maeve by name if they were just shopping already at Anthropologie. But because you're using this app to rent clothing, people have become a little bit more familiar with the brands themselves. And I also thought like Anthropologie has such a wide range of products within their store, like you can buy puzzles, you can buy a lamp, like you can buy all these different types of furniture. So I think maybe to have more of a curated experience, like for a consumer that says, okay, I'm just going to shop for jeans today, it might be a smart move, but also it depends on whether it has like that brand recognition and connectivity.
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D
I think it really highlights the power of private label brands when done well and how far they can go. We've seen a couple of other private label brands have kind of been spun off into independent entities. The most prominent one is Boots, the UK pharmacy. They have a skincare brand, number seven. And it is no longer, it is now a separate company, a separate beauty brand. It's been very successful. Target took a first step with this with its kids wear brand, Cat and Jack. When Hudson's Bay in Canada was still around, it was going, it was starting to sell Cat and Jack clothing at Hudson's Bay and looking at that as a route to international expansion for the brand, because that's a very well known brand. It's good quality, affordable kids clothing. And so I thought another interesting part of this announcement was that they're kind of launching ma's brand identity on its own with social media accounts to capitalize on the following that it's already generated on social. And that's something I think other retailers can explore as well. Even if not launching private label brands as standalone brands, giving them more of an identity on social and digital.
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A
On to number five, which is Crocs. Emmy, tell us more.
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B
Yes. So Crocs decided to basically bring New York to New York by creating a 4,000 square foot store that's the length of a city block. And their whole concept here is to, I think they have like a bodega station, like all these things that kind of pay homage to New York in New York. And a lot of it is about like customization because they're leaning into Gibbitz and how they have very like high, high end Jibbitz with designer brands and also just like Disney themed, like everyday person Jibbitz. So I think they're trying to rebrand Crocs as something that can be adaptable to every consumer and every price point. And they're also trying to create a very interesting in store experience and, I don't know, keep people in for longer by making it 4,000 square feet, I guess. Yeah. I just thought the size and the fact that we were talking about the fact that it seems like something that's supposed to be like, oh, feel a piece of New York when you're not in New York, but you can go outside and be there. So that was fascinating to the committee.
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A
Yeah, the location's a bit interesting to me. I'm like, oh, maybe if you put this somewhere, maybe a Mall of America or somewhere where you're not able to directly step outside and be in New York City could have made a little more sense to me. But you know, also, you know, I like what they're doing with the customization and kind of getting people in and spending time with the brand.
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D
Yeah. And it sounds like SoHo is now becoming the mall of New York City with all of the teen brands and traditional like mall brands that are moving into the neighborhood. I think that's really interesting. I saw some photos of this Croc store or the concept, and it looks amazing. It's completely the opposite of my experience buying Crocs in store, which is tends to be outlet shops that are incredibly crowded and small and tiny and a little bit claustrophobic because there are too many colors and not enough space.
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B
I feel like we always hear that it's Dangerous to try to be a brand for everybody because you lose your identity. But I actually think that Crocs is an example of a brand that has sort of figured that out because they have, like, stylish wedges that I love. And I would never consider myself like a Crocs person for the, like the standard shoe. Yeah. So it seems like they've. They've kind of, they have a pretty good grasp on how to be the right fit for a lot of different consumers.
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C
It's a good brand to have a flagship store like in New York, if you think about. Because of the fact that it is a brand for everyone, it's a national brand. People who come here that want to really get a good retail experience in the same way that they go to the Eminem store in Times Square. Like, it's a great brand for that.
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A
I. I do. I think I did compare it to the Eminem store. So on to number four, Bath and Body Works. Emmy, once again, please take it away.
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B
Yes. So Bath and Body Works is expanding to over 600 college bookstores across the country. The I think this is interesting is I think that a lot of brands are figuring out how to become relevant among college consumers, particularly women. I think that a lot of brands that were going after, like the typical lifestyle influencer are realizing that these people are actually not relatable at all. And you want to go for a college student who's maybe going to recommend this product to all of their friends. And there's just this, like, tight knit community of people sharing recommendations. I saw an article a while ago about how college campuses need to expand the size of their mailrooms because so many people are getting like PR packages, which was really interesting. And I think, yeah, like Skims and Unwell, which is Alex Earle's drink brand, are both kind of leaning into that collegiate angle with their marketing. And I saw a quote that was just, college girls love sweatshirts, which is so true. College girls love going to their college store and getting a sweatshirt, a hat, sweatpants, et cetera. So I just think the bookstore is a good place to target.
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D
Yeah, I think this is such a great opportunity for more retailers like Bath and Body Works to move into the college bookstore space because those stores now have more shelf space available for different kinds of merchandise, like sweatshirts, like home goods, because they're not selling quite as many books as they used to do. Now that a lot of the textbooks are digital and at the same time they have a wide enough range of products in all sorts of different colors, they can tie their offerings very closely to the college colors on a school by school basis.
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B
Yeah. And I think one last thing is that because there's such declining foot traffic at malls, I think this is a good move for that reason because I think Bath and body works is. Was kind of like a quintessential mall brand and something that was like more social to go in with your friends and pick things out. So another reason why I think this was good.
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A
In spot number three, we have rare beauty. This is something you were really passionate about, Emmy. I'd love to hear more.
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B
Yes. Well, I just love Selena Gomez. I feel like she does no wrong in this life. But her beauty brand, rare beauty, they just came out with their first perfume. They did an out of home billboard that was like all scented billboards, which I thought was an interesting, like experiential choice. And they also launched a perfume that's designed to be adaptable for people that have like limited mobility and dexterity. It's a rounded bottle, so it's like easier to hold and use. And it just does like a twist to lock cap opposed to the whole like taking the cap off the bottle thing. So I think this is good because it was an example of a brand that is typically very values oriented. Like it's just a brand that's always donated to like mental health initiatives and different, like social initiatives. Doing something in house that actually proves that they care about it. Opposed to just going out and donating. They're actually like changing how they run their business. So I thought that was a cool alignment.
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C
When you said smellable out of home, I had this idea of just like, you know, a highway billboard and just every minute and a half just, it just releases like a giant cloud of perfume on the highway.
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A
Some brand did that, like with not a perfume brand, but what is it? McDonald's or something that did like a french fry scented. Like it wafted a french fries set.
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B
I. I was thinking that would be a great idea for something like McDonald's to do.
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A
I'm pretty sure they someone did it.
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D
Krispy Kreme. I know, they're donut smells always get you.
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A
They do have good smells. In spot number two, we have Walmart. What would our list be without a Walmart mention? And it made the list this month for the your FYP on wheels tour. So a fleet of Walmart delivery trucks is traveling around the country, parking at concerts, live events to offer photo ops, free merch, and opportunities to kind of shop a curated selection of goods. It's interesting. They've got a few different kind of experiences. There's a K Pop truck, there's one that's outfitted with iconic retro video games and there's like a rodeo truck where people can customize their own rodeo belt and purchase western themed accessories. I love the idea of like taking your FYP and bringing it to life. I think that's, you know, the FYP is such a notable TikTok thing and so I think, you know, kudos to Walmart for taking, you know, the trends off the app and bringing them to real life and kind of just getting the notoriety out there that they could be cool.
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B
I just hate this because they're not cool. But then again, I guess you have to like do these things to become cool.
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A
Yeah, yeah.
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D
And it's all relative. I think there is a Trend More on TikTok where younger Gen Zers and maybe even gen Alpha are seeing Walmart as cooler. Especially now that Target has lost some of its magic and is really struggling to get that back. I think Walmart is seizing on that opening. It's already winning at E commerce and winning at grocery. So the next step is to get customers or potential customers to come to it for more.
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A
Yeah, yeah, absolutely. Number one on our list is Dick's Sporting Goods for launching its own in house production studio. I thought this was really, really cool. Dick's has been creating content for a while. Its first feature documentary won an Emmy in 2014. And I think creating this in house studio just really doubles down on its content and enables the retailer to be kind of more efficient and agile. It also, like, I feel like has a really good tie in with its content creator and influencer program which I believe it launched earlier this year.
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C
Yeah, I think this is, this is one of our retail trends for 2025 in a report that we wrote back late last year and it was sort of coming off the heels of Starbucks doing the same thing. And just this idea that as brands and retailers have these owned and operated digital channels and access to reach an audience via social media, like the idea for creating your own content, whether it's something that is very, you know, easy, low budget stuff, going all the way up to like premium video or a documentary, like it seems like a no brainer to really build, help build your brand and produce your own content and just, you know, at a really high level, invest in the sort of ethos that you want to have associated with your, with your brand.
- [19:20]
A
Okay, so our list as it stands is number one, Dick's Sporting Goods, number two, Walmart Number three, Rare Beauty. Number four, Bath and Body Works. Number five, Crocs. Number six, Anthropology. Number seven, Best Buy. And number eight, Warby Parker. We also have two honorable mentions. At number nine, we have Trader Joe's for opening its first store in New Orleans. And at number 10, we have Amazon for launching same day Grocery of Fresh foods in over a thousand cities. Now it's time for our second half where Blake and Sky will tell us where we went wrong. Both of them will have a chance to move a brand up or down our rankings and to add a new company entirely. Blake, what's your move?
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C
I think want to get rid of Warby Parker, because I think we've sort of firmly established that that's a bad move. And I, I am going to run the risk of being really boring here, but I, I do want to put Amazon in that slot because I think that the same day delivery of fresh foods is a really big deal for Amazon, which has been struggling to figure out a way that they can sort of build their market, grow their market share in the digital grocery business for a long time. And it feels like they've really gone all in with this offering. It's like they've chalked up, like, what is the best possible way to increase our market share at all costs. And I think this is sort of the idea. But then again, you know, Amazon has tried and failed to make, make inroads into, into grocery as it competes with Walmart, as it competes with Instacart. So I'm not going to put them, like up at the top of the list. So I'll just swap them out with Target and Warby Parker.
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A
I'm leaning towards saying I agree. Emmy, what do you think? What are your thoughts?
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B
I guess I want to clarify the prompt because interesting could be bad.
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A
Every month I feel like we have this conversation where it is very hard to define. Interesting could be bad. For sure.
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B
Sometimes things are bad and also not that interesting, which I would say is probably the case with Warby Parker. So I agree. I approve of this change.
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A
Okay, so Blake's move is we're gonna take. We'll move Warby Parker to honorable mentions and then we'll put Amazon in number eight. All right, now, sky, what move will you make?
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D
Yeah, I'm glad Blake picked Amazon because I was struggling between moving Amazon and picking a new candidate for the list. So mine is going to be to take Best Buy off, because while the shop and shop is interesting, it's still pretty untested and limited. And I want to add a new brand to the list in best buys place, it would be this accessible quasi luxury fashion brand known as Quince. Their big news this month was that they raised nearly 200 million from VC private equity types and put their valuation at four and a half billion. And this is a lot because they've only raised around 250 million to date. They've been around since around 2018, but they're really capturing the mood of the moment, which is lux. That luxury is struggling, but consumers still want value. And I think of them a little like if Timu and Prada had a baby, it could be Quince. They're they, their claim to fame is a fifty dollar cashmere sweater that claims to be the same quality as a 500 cashmere sweater. They have a lot more to offer than that. They do their manufacturing in a Timushi and type of model where it's sourced from China. So they work direct with factories and the goods are shipped from China for the most part. But there and they follow similar digital marketing strategy, their ads are kind of inescapable. Like they know I have a daughter or Meta knows I have a daughter. So I see ads for their dresses for kids on Facebook and Instagram and probably only a matter of time before I, before I crumble because they are very pretty and very affordable.
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A
I do think it's interesting that that description you gave kind of this Temu and Prada, Prada. I think that's kind of, kind of the hit, right? Like that's gonna satisfy everyone, right? Everyone wants a high quality looking product for a low price. I have been hearing a lot about quints, so I'm likely to also add it, but I, I don't know.
- [24:07]
B
Emmy, what do you think now? I'm honestly just thinking about what it would be like to have Temu and Prada as parents. Would they get along? Would they ever see eye to eye? Like what would their parenting styles be like? I. Yeah, I like it, you like it. That's all I have to say.
- [24:25]
A
And so are we. How we feel about. So Skye wanted to take Best Buy off, which is okay. I think we'll put Quince in the same place, which is number seven. So our honorable mentions would still be Trader Joe's and Warby Parker. And then eight would be Amazon and seven would be quints. We feel good about that, Emmy?
- [24:47]
B
Yeah.
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A
Okay. Okay, so here's our final list. Our honorable mentions are 10 Trader Joe's and nine Warby Parker. Then for eight we have Amazon, seven quints, six Anthropologie five. Crocs, four. Bath and Body Works, three. Rare Beauty, two. Walmart. And number one is Dick's Sporting Goods. That's all the time we have for today. Thank you, sky. And thank you, Blake. And thank you, Emmy. Thank you.
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B
This was so fun.
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C
Thanks for having us.
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D
Thanks. I really enjoyed it.
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A
Yeah, me too. Thank you to our listeners, our studio team, and our podcast editors who are always making it count. Please leave a comment or review and remember to subscribe to behind the Numbers podcast. We'll be back next Wednesday with another episode of Reimagining Retailers. And on Friday, Jordan Marcus for another episode of behind the Numbers, an e marketer podcast made possible by Awin.