The Unofficial Most Interesting Retailers List (May) | Reimagining Retail

Founded in 2013, GIPHY is the visual platform where creators and brand partners make everyday expression a little more moving. Now, GIPHY Ads enables brands to connect with audiences through ads people share, not just see. GIPHY reaches over 1+ billion users daily, serving 14+ billion pieces of short-form content every day. For more, head to ads.giphy.com.

Sara Lebow (00:00):

Want to reach your customers where they're already talking? Over the past decade, GIPHY has built a platform used daily by millions everywhere conversations are happening. Now, GIPHY Ads enables brands to connect with their audiences through ads people share, not just see. For more, head to ads.giphy.com. That's ads.G-I-P-H-Y.com.

(00:27):

Hello, listeners. Today is Wednesday, May 28th. Welcome to Behind the Numbers: Reimagining Retail, an e-marketer podcast made Possible by GIPHY. This is the show where we talk about how retail collides with all of our lives. I'm your host, Sara Lebo. Today's episode topic, it's another one, it's our May Unofficial Most Interesting Retailers of the Month List. Let's meet today's guests. First up for this episode is Arielle Fager. Hey, Arielle.

Arielle Feger (00:54):

Hello.

Sara Lebow (00:55):

Also with us in the studio is Rachel Wolff. Hi, Rachel.

Rachel Wolff (00:59):

Hey, Sara.

Sara Lebow (01:01):

And joining us from overseas, and by seas I mean Lake Michigan, is Zak Stanbor. Hey, Zak.

Zak Stambor (01:08):

Hey, everyone.

Sara Lebow (01:09):

Lake Michigan is a sea, it's so big.

Zak Stambor (01:12):

It is very big.

Sara Lebow (01:13):

It's so big! All right. Let's jump into our Unofficial Most Interesting Retailers of the Month List.

(01:24):

Arielle and I are the committee. We're going to present our list in the first half of this episode. In the second half, Zak and Rachel will have the opportunity to edit our list. Okay, before we get into today's list, I will be honest: we struggled this month. It's clear that retailers are cautious to make any crazy moves as tariffs take hold. And that was really evident in May. With that in mind, here is our list. Number 8, ThredUp. Arielle, why ThredUp?

Arielle Feger (01:54):

ThredUp is doing some things to help make it easier and more affordable for brands to join their resale as a service offering. So they're removing some upfront and monthly fees, introducing new services. And they're also going to launch their own peer-to-peer resale platform. And I think this is interesting, because as we just mentioned, as you just mentioned, tariffs are really high on the mind of a lot of retailers, and resale might be a beneficiary of higher prices, people might be seeking out lower-priced items, resale. So I think ThredUp doing this ahead of the tariffs taking effect is just a really smart move to get more people involved in resale.

Sara Lebow (02:41):

Yeah, I agree. For more on that, listen to last week's episode on resale and tariffs.

Arielle Feger (02:47):

We didn't do that on purpose.

Sara Lebow (02:49):

Yeah. I mean, this move is clearly related to tariffs, and for that reason it made the list.

Arielle Feger (02:55):

I also think ThredUp is probably, I think they've been trying to figure out their recipe for success, and I think this is just another of them rejiggering their business operations to try to set up for more success.

Rachel Wolff(03:10):

Yeah. I think one of the interesting parts too is that they're really going after brands. They're getting rid of fees for these branded resale shops. And I think that could be a huge boost for them as well, if they just get more companies to sell on their platform.

Sara Lebow (03:23):

Okay, Number 7: DoorDash, for bringing drone delivery to North Carolina. Okay, neither Arielle nor I actually think drone delivery is going to happen. Stop, try to make-

Rachel Wolff(03:36):

Tell that to Amazon.

Sara Lebow (03:37):

Stop trying to make drone delivery happen, it's not going to happen. Maybe it'll sound so crazy like five years from now. It's kind of weird, it's expensive. But it's interesting, having your packages fall down from the sky, is interesting. So, it's on the list.

Zak Stambor (03:53):

It's interesting, that's not why I thought you had it on the list.

Rachel Wolff(03:56):

Right.

Sara Lebow (03:56):

I do think, "What did I miss about DoorDash?"

Zak Stambor (04:02):

Deliveroo. You thought so as well. The DoorDash delivery acquisition, where it seems to make sense to me. It's a risky move, it is an expensive move to combine these two companies. But it is certainly an interesting move that may actually work out. I mean, both companies have been leaning into groceries, they've been beefing up their retail media businesses. So there are synergies there, and so it kind of makes sense.

Sara Lebow (04:39):

Okay. Let's say that's why we had them on the list.

Arielle Feger (04:44):

I think sometimes when we talk about mergers and acquisitions, interesting becomes a hard word to pin down, I think. To me, it seems a little par for the course that two delivery companies would be-

Sara Lebow (05:01):

Yeah, but Deliveroo is UK-based.

Arielle Feger (05:04):

That's true.

Sara Lebow (05:04):

It's clearly a global extension.

Arielle Feger (05:06):

All right.

Rachel Wolff(05:07):

Yeah, I think the international aspect of that, they also bought another company as part of that acquisition spree.

Sara Lebow (05:12):

Arielle, don't argue against our own list.

Arielle Feger (05:14):

I'm sorry. I stand corrected.

Sara Lebow (05:18):

Number 6: American Eagle. Arielle, why this?

Arielle Feger (05:22):

So, American Eagle has launched a Substack. I think it's interesting. It's called Off the Cuff. It's in collaboration with Casey Lewis, who has her own Substack called After School, which I actually subscribe to, and I really like. And so really, it's targeting Gen Z-ers. It's meant to be more of a dialog, less of a product catalog. And I think it's just an interesting way for a brand to try to reach Gen Z-ers in a different way.

Rachel Wolff(05:55):

I thought it was really interesting. But my question is, how many Gen Z-ers are on Substack?

Sara Lebow (05:58):

That's what I said. Now I'm arguing against our list. But I was like, Substack feels like a little more millennial to me. I don't know. I'm looking at Substack, but I'm not a Gen Z-er.

Arielle Feger (06:11):

I feel like it's a specific. I think there's a lot of fashion forward.

Sara Lebow (06:16):

There is a lot of fashion on Substack, yeah.

Arielle Feger (06:17):

Substack. And I think that that's where the Gen Z-ers, who are really interested in fashion, are going to be. I don't think it's meant to be reaching every Gen Z, it's just a way to cultivate kind of a niche audience.

Rachel Wolff(06:32):

Yeah, I mean it's interesting, right? Because Substack, so much of it is the personality writing the Substack. And if it's a brand, I don't know if you can sort of build that same level of trust that individual contributors like Casey Lewis have. So I think it's an interesting move. I was surprised to see how many brands are launching Substacks, Rare Beauty being one of them.

Sara Lebow (06:52):

Okay, Selena.

Rachel Wolff(06:55):

Maybe it could work for them

Sara Lebow (06:56):

Rare Beauty is Selena Gomez's beauty brand, if you didn't catch that. Look out Amateur Writers of Brooklyn, American Eagle's coming from your crowd on Substack.

(07:07):

All right. Number five: Walmart. Walmart launched a small business program called Grow With US, or Grow With US, depending on how you read the Capitalized US. This is interesting to me because like ThredUp, this is a clear post-tariff play to me. Walmart is positioning itself both in the eyes of its consumer and also the US government as an incubator of US business. Whether or not the actual products that are being sold are US manufactured, results may vary, but clearly they're trying to associate themselves with US small business.

Zak Stambor (07:49):

The one other thing about Walmart quite obviously, and prominently, is that they said they're raising prices. And I think that is a bold, very interesting move that attracted the eyes of the White House.

Sara Lebow (08:04):

Yeah, the president is not happy with Walmart for not eating their own costs. That actually brings up something that didn't make the list because it was a little too much of a slippery concept to make the list, but Amazon this month, maybe it leaked that they were going to add a tariff, what do you call it? Like a...

Arielle Feger (08:24):

Like a surcharge?

Sara Lebow (08:25):

Yeah, tariff like surcharge item on their website. Amazon claims that this was never the case, that this was an incorrect rumor. It's unclear if this ever was the case. The administration was also upset with Amazon, so yes.

Rachel Wolff(08:40):

Well, I think what they said was they were kicking it around as a suggestion, but it never would've made it. But I think that's up for debate. I think it would've probably made sense in that specific, well, specifically related to Hall.

Sara Lebow (08:55):

Yeah. I mean, the big companies are deciding how to position themselves to make themselves a friend to consumer and regulator alike. Number four: David's Bridal. Arielle, why them?

Arielle Feger (09:10):

So, David's Bridal has opened up a high-end boutique. It's called Diamonds and Pearls. Kind of like that name, I don't know why. And so basically-

Sara Lebow (09:21):

I don't.

Arielle Feger (09:21):

You don't like it? You don't like Diamonds and Pearls?

Sara Lebow (09:25):

It sounds like a 2012 Tumblr.

Arielle Feger (09:28):

Yeah, that's why I like it.

Sara Lebow (09:30):

Okay, keep going.

Arielle Feger (09:30):

You forget that I was famously on Tumblr in 2012, and still am. But anyway. So, this is like a smaller store, it's a more curated experience, a more curated assortment. It's also got touchscreens and customers can consult Pearl, the brand's AI powered wedding planner assistant. So, it's obviously definitely aiming at Gen Z brides, Gen Z weddings, and also just people who are looking for a little higher end assortment or a more curated store experience.

Sara Lebow (10:08):

I feel like they're trying to do a reformation. This is really similar to how Reformation stores operate. Reformation is a really popular higher end wedding guest dress destination. And regular listeners to this pod will know that I am currently trying to find a bridesmaids dress and can't find anything good. So, it's an interesting move to me.

Zak Stambor (10:32):

Yeah, I think there's a lot of space here for David's Bridal to grab between largely the mass retail David's Bridal space and the independent boutiques. And so if they can go slightly upscale, I don't think they're going to actually capture that high end space. But occupy that middle ground, there's a big space and big market opportunity for them.

Sara Lebow (10:59):

Okay, number three: Urban Outfitters. Also a Gen Z play. They did a few things. They did a cool out of home scavenger hunt in Manhattan. But the thing that I'm most excited about is Urban's new on rotation store program, which will feature installations from brands. The first one being Nike. I'm really promoting all our old episodes, Suzy and I did an episode a few months ago on the new print on store in the financial district in Manhattan, and they had something they called a Nike Residency in the store, which was kind of like a Nike shop and shop, but high end, similar function. Urban Outfitters has clearly chosen a one of Gen Z's favorite brands, and Nike is clearly finding new ways to be featured in store, which is definitely part of a years long now pivot away from a D2C push they made.

Arielle Feger (11:53):

A new drinking game, take a sip every time we say Gen Z in this episode.

Sara Lebow (11:59):

Do we sound like so old when we're like... They're doing it for Gen Z.

Arielle Feger (12:05):

Yeah. I also think it's true, they are doing it for Gen Z.

Rachel Wolff(12:09):

Well, I mean, I think a lot of what appeals to Gen Z also appeals to older shoppers as well.

Arielle Feger (12:14):

That is correct.

Zak Stambor (12:16):

I think explicitly called out that this is for Gen Z as well. So, I don't think we're going out on a limb or shoehorning this into a broader trend, this is what they're doing. It's interesting that they're partnering with Nike, because this is a rotating concept. Given the name on rotation, it's not just a clever name, it is going to rotate. Interesting to see them go with Nike first. Also, interesting to have this be a rotating concept, so that you do regularly visit the store and see what's happening in this space.

Sara Lebow (12:47):

That's a great point. Yeah. Okay, number two: Instacart. Arielle, you're particularly excited about this one. Why?

Arielle Feger (12:56):

I think I just wish that this was around when I was in college, so I think that's why I'm so excited about it. Som Instacart has launched a new standalone app called Fizz. And the whole idea is to help groups plan for parties, order party supplies, and pay for party supplies. But I think that one of the most interesting parts is that one person starts a cart, everyone throws in the drinks, they sell alcohol and party snacks, they throw in whatever they want, and each person pays for what they added. So, there's kind of no need to split payments afterwards, which I think is just kind a nice skipping a step. There's also something called snack bucks. So, brands can feature rewards for certain alcohols and consumers get money off snacks. I think it's just really fun. Again, something that I think is great to help you plan and throw a party.

Sara Lebow (13:54):

You can split the cost of rides on other similar intermediary-ish apps like Uber. So it makes sense to me that the next sort of move in that would be splitting the cost of delivery.

Rachel Wolff(14:08):

Yeah, I think the branding is fun. They partnered with Partyful, so that basically gives them a guaranteed audience right there. I just wonder, it is a standalone app, so I wonder what the benefits to Instacart will be. Will they be able to get those choppers to get to its main platform?

Arielle Feger (14:25):

I did have the chance to talk to them about this. And it is all connected, particularly when it comes to ads. Brands are still getting all of that data, which is kind of cool, that it's all connected.

Sara Lebow (14:38):

It may also be an entry point to Instacart for a younger audience. I don't know. Anecdotally, I feel like Instacart is maybe skews like it's not older, but not college kid age. And so this is an Instacart for beginners.

Rachel Wolff(14:58):

Yeah. I think they've said that their target demo tends to be families. So yeah, for sure, this is a way to get younger shoppers aware and using Instacart.

Sara Lebow (15:07):

Number one: Kraft Heinz. This one's controversial. Heinz teamed up with Uber Eats to launch Heinz Verified, which singles out restaurants that serve Heinz products. To me, this is a really cool top of funnel commerce media play, where Heinz gets its brand on people's minds, even if they're not actively shopping for ketchup, and restaurants may be incentivized to use Heinz products. So, also like a wholesale incentive. I also think this is a good idea, because Heinz does have the best ketchup product. I'm not like a Heinz loyalist, they just do have the best ketchup. So, it's helpful for customers from my perspective.

(15:47):

Also, a few hours before we started recording this, there was a rumor swirling that Heinz was looking at M&A opportunities after it announced it was considering "strategic transactions to unlock shareholder value."

Arielle Feger (16:00):

[inaudible 00:16:05].

Zak Stambor (16:09):

There's not been doing very well. They're just throwing a lot of spaghetti at the wall, including this endeavor.

Sara Lebow (16:14):

A lot of Kraft mac and cheese at the wall.

Zak Stambor (16:16):

Yeah, for sure. And offering that mac and cheese in different size packaging, trying to just find some way to drive consumers to buy their brands rather than trade down. And it's not going that well. I don't know. That's all I've got.

Rachel Wolff(16:37):

Cliffhanger.

Arielle Feger (16:39):

I mean, I'm a Heinz loyalist, Heinz ketchup forever.

Sara Lebow (16:43):

I just saw you earlier today put so much ketchup on your fries. I didn't say anything, it was so much ketchup.

Arielle Feger (16:48):

Honestly, I was holding back, Sara.

Sara Lebow (16:50):

I was like, "That's crazy."

Arielle Feger (16:53):

I could have put so much more on there.

Sara Lebow (16:54):

Wow.

Arielle Feger (16:55):

Yeah. I hide my ketchup consumption for until you really know me. But I mean, I think this is fun, it's cool. Do I think it's going to be... I will say, it must be a very hard thing for such an established brand to continue to get new customers and find new ways to get your brand in front of customers' eyes. So, I will give it that it's trying and...

Sara Lebow (17:30):

Okay, so that concludes our list. To recap, we have number eight, ThredUp; number seven, DoorDash; number six, American Eagle; number five, Walmart; number four, David's Bridal; number three, Urban Outfitters; number two, Instacart; and number one, Kraft Heinz.

(17:49):

Now it's time for the second half where Rachel and Zak get to tell us where we went wrong. And I'm guessing they have a lot to say about that.

(17:59):

Each of them will have a chance to move a brand up or down on our rankings list, and to add a new brand entirely. So Rachel, why don't you go first and make a move?

Rachel Wolff(18:07):

All right, I'm going to go for the obvious choice and move Kraft Heinz.

Arielle Feger (18:11):

That's not obvious to many of us.

Sara Lebow (18:14):

Where are you moving it?

Rachel Wolff(18:16):

Let's see. I will move it... I'll be generous and move it above Walmart.

Sara Lebow (18:20):

Okay, so to number five.

Rachel Wolff(18:24):

Yes. So, I think, as we kind of mentioned, I think it's a good move for them, it gets Heinz in front of a lot of people. But whether that's actually the thing that gets them to order from a restaurant, I don't know. So, for that reason, I'm going to downgrade them a bit.

Sara Lebow (18:44):

I know I'm going to lose this argument.

Arielle Feger (18:48):

I agree with Rachel. I think that it's a pretty standard play for a CPG brand. All right-

Rachel Wolff(19:00):

The betrayal. Sorry, Sara.

Sara Lebow (19:05):

All right, we will move them down. Zak, what is your move?

Zak Stambor (19:12):

I think I will move American Eagle down to just, well, at the very back of the list. I think it's interesting, ish, it's interesting ish. I just don't know that it'll work. We talked about how does this align with their customer base, and that's where I'm just not quite sure. And so for that reason, I'm going to move it to the back of the list.

Sara Lebow (19:39):

I wasn't sold on American Eagle either, and my reason was, it's interesting they're launching a Substack, but at the end of the day it's a brand launching a newsletter. Substack is fancy, but it's a newsletter. So, I'm fine with moving them back.

Zak Stambor (19:55):

I feel like you need to find the content medium that aligns with your brand. And I think Trader Joe's does this really well with their podcast. But the Substack align with American Eagle in any sort of way? I don't know.

Arielle Feger (20:09):

See, I think you guys are, I don't know, maybe I'm just like, I think because I really do like Casey Lewis, I don't know if you guys have ever, her after school Substack is really great. And I think she has a lot of knowledge about... I think it's backed, I think it's backed by facts. She has a lot of Gen Z knowledge. She's very in on what Gen Z is doing. So, I feel like with her kind of involved, it's going to be better than if it was just their marketing team doing it. I do think that there is at least some kind of research and thought going into it. Will it reach all of the Gen Z-ers? I don't know. But long story short, I will accept the move, but I think you're all wrong.

Rachel Wolff(20:58):

Under protest.

Sara Lebow (20:59):

All right, so we'll make some changes based on that. Now let's see who you all wanted to add to the list. I'm super curious because like we said, it was a slow month. So Zak, what is your wild card and where are you putting it?

Zak Stambor (21:16):

I am putting my wild card right at the top of the list, because I cannot believe that you left out Dix. Dix made such a bold, interesting move announcing plans to acquire Foot Locker. I know your apprehension, including merger and acquisition deals. But this is not just a merger and acquisition deal, this is a massive play. It will take Dix from about, I think it's about 850 stores to like 3000 locations. It will enable Dix to move into some urban locations, some international markets that it was not in previously. And that will more than double its total addressable market. It will enhance its position as a Nike partner. And it merges two very large loyalty programs together, which should provide a decent boost to its retail media network.

(22:16):

And then, that doesn't even factor in the M&A stuff of just the synergies there across merchandising, and marketing, and all of that sort of stuff. Now, I acknowledge that this deal is certainly not a sure thing, either in terms of actually going through, will it pass regulatory muster? Or will it actually work? I don't know. But this list is about being interesting, and this is certainly an interesting high stakes, high reward bet.

Sara Lebow (22:55):

I'm so convinced by Zak's tone of voice. I'm so convinced by Zak talking to me like a motivational speaker.

Zak Stambor (23:03):

There's just so much there. I thought this was such an interesting deal.

Arielle Feger (23:05):

I appreciate Zak's enthusiasm. I definitely will agree it can have a spot on the list. I would not put it first. Think about, if someone said to you, take Sporting Goods acquired Foot Locker. You'd be like, "Oh yeah, that makes sense." But...

Sara Lebow (23:20):

I'd be like... I don't know what it'd be like.

Arielle Feger (23:22):

It's not interesting to me evokes something a little bit surprising, something a little bit unexpected. I don't feel like neither... This is not unusual or unexpected. And so I'm not interested by it, I'm like, "Okay."

Sara Lebow (23:41):

What if we put them in number three right below Urban Outfitters and above David's Bridal?

Arielle Feger (23:49):

That's fine.

Zak Stambor (23:50):

Okay, here we go. I'll take it.

Sara Lebow (23:54):

All right. Rachel, what is your move? What is your wild card?

Rachel Wolff(23:59):

Okay. So my Wild Card is, I guess kind of two companies, but basically it's Family Dollar Beginning to sell on Uber Eats.

Sara Lebow (24:07):

Oh, I was really hoping it was going to be the Khloe Kardashian popcorn.

Rachel Wolff(24:11):

I was considering that, but I heard bad reviews. So I think this is interesting for a few reasons. One is that if you look at this list, a lot of these moves involve food delivery companies of some sort. And it's clear that that's where the growth is. So in that sense, it's not surprising that companies are rushing to jump on Uber Eats or the DoorDash bandwagon. But for Family Dollar to do it, I think it's interesting for a few reasons. One is that people who use these delivery platforms tend to skew a little more affluent. So this would be an opportunity for a struggling retailer to get in front of that customer base, especially when those customers are now looking for deals. And for Uber, it's kind of the opposite. It's a way to sort of make your offering more appealing to less affluent people who are looking for deals, and looking for ways to stretch their dollar.

Arielle Feger (25:04):

Yeah, I mean, I think similar, this isn't necessarily a surprising move, I think it's a smart move.

Sara Lebow (25:12):

But like a company selling on Uber, like a grocery and stuff company selling on Uber, I don't know, that's what there is there.

Arielle Feger (25:22):

Yeah, I feel like, I also have concerns about typically the Family Dollar consumer, the people who shop at Dollar stores are very focused on value in deals. And with Instacart comes extra fees, and maybe basket sizes. So, I do have a hesitancy of, is this really going to work for lower income consumers? I think to your point, more affluent consumers who are looking for really good deals, this could be a pretty big hit with. So, I don't know. I'm torn. What do you think, Sara?

Sara Lebow (26:03):

I don't think I'd add it to the list.

Arielle Feger (26:05):

Okay.

Rachel Wolff(26:06):

Fair enough.

Sara Lebow (26:07):

And our actual list is number eight, ThredUp; number seven, DoorDash; number six, Walmart; number five, Kraft Heinz; number four, David's Bridal; number three, Sporting Goods; number two, Urban Outfitters; and number one, Instacart. Congrats to the intermediaries, which really made their way onto that list. Okay. Well, thank you for being here today, Zak.

Zak Stambor (26:32):

Yeah, thanks for having me.

Sara Lebow (26:34):

Thank you, Rachel.

Rachel Wolff(26:35):

This was fun. Thanks.

Sara Lebow (26:36):

And thank you, Arielle.

Arielle Feger (26:38):

Thank you.

Sara Lebow (26:39):

Thanks to our listeners, and to our team that edits the podcast and always ranks high on our list. We'll be back next Wednesday with another episode of Reimagined Retail. And on Friday, join Marcus for another episode of The Behind the Numbers Daily, an eMarketer podcast made possible by GIPHY.