Modern Retail

For five years now, I've written Modern Retail's DTC Briefing, a weekly newsletter for Modern Retail+ subscribers that covers the biggest news in the direct-to-consumer world. But, I have had a lot of qualms about using the term "DTC" for a while; after all, most of the brands we write about are no longer solely DTC Brands. There's a lot of names being thrown around now to refer to these brands: disruptor brands, challenger brands, digitally-native brands. But we're planting a flag and simply referring to these companies as brands. So, I am excited to introduce Modern Retail's newest product, the Brands Briefing. We'll be essentially covering the same things as we did in the DTC Briefing -- that is, the growth strategies of modern brands, just with a bigger focus on more types of brands. I'm including a link in the comments to explain our rationale, and to share more about what you can expect out of the Brands Briefing.

PepsiCo's proposed $1.95 billion acquisition of poppi was exciting for many in the beverage space. But dealmaking is off to a slow start in 2025 for other types of brands as uncertainty clouds the market. In this piece by Anna Hensel, we speak to David Shiffman & John LeVert of Solomon Partners, and Patrick O'Quinn of Axcel Partners.

The trade rule that fueled the rise of Chinese e-commerce giants like Temu and Shein is on its way out under new Trump-era tariffs. But some industry players say the factory-direct shipping model isn’t going anywhere —?even without a tariff loophole. In recent years, overseas e-commerce companies like SHEIN and Temu have become synonymous with the de minimis trade exemption, a nearly 100-year-old trade law originally crafted for U.S. tourists. The rule lets retailers bypass duties and taxes on imports under $800, enabling Shein and Temu to offer bargain prices on their wares, like $5 baseball caps and $8 Apple AirPod dupes. Still, both Shein and Temu have?previously told?Modern Retail their businesses are not dependent on the de minimis exemption. Read the full story here: https://lnkd.in/e_ARgDu4 In this piece by Allison Smith, we speak to Izzy Rosenzweig of Portless, Evan Hakalir of Andy & Evan, and Maggie Barnett, Esq. of LVK Logistics.

On the latest Modern Retail Rundown podcast, MR reporters?break?down the latest business news:?CVS has a new store concept, beauty's growth is slowing, and?apparel sales are on the decline.

American Eagle Outfitters Inc. is “getting out and about” this year as it looks to connect with its core demographic of Gen-Z shoppers in person and on platforms where they spend time, CMO Craig Brommers told Modern Retail. Pop-ups, for instance, will be a key component of the brand’s marketing mix in 2025, Brommers revealed. On March 21 and 22, American Eagle is hosting a Denim Deli in Nashville, Tennessee, complete with free sandwiches, customizable denim totes, an appearance from “Outer Banks” actor Chase Stokes and musical performances. American Eagle is also stepping up its presence and ad spending on apps popular with young people, such as TikTok, Snap Inc., Bluesky Social and?Pinterest. “Gen Z moves with speed, and we’ve tried to be in front of our competitors in testing and trying new places [to connect with them],” Brommers said. Brommers, who joined American Eagle in 2020 after stints at Gap, Abercrombie & Fitch Co. and Calvin Klein, spoke with Modern Retail about how the brand is updating its marketing playbook to better woo Gen Z at a tricky time for the retail industry. Story by Julia Waldow

Trump's tariff war has spiraled into a cycle of escalating countermeasures.?The costs are mounting for businesses caught in the middle as some are losing wholesale partners or being forced to turn off international shipping. In this piece by Allison Smith, we speak to Dawn Hilarczyk of Borghese, Inc., and Julie Longyear of Blissoma - Botanical Beauty.

Welcome to Modern Retail’s “The New Supply Chain,” a week-long series of daily stories on how retail executives are revamping their supply chains to succeed in 2025. For the past couple of months, many e-commerce brands have been in limbo as they consider whether to move fulfillment operations out of Mexico. No one wants to make too rash of a decision at a time when policies are changing left and right. ?? Read the full story here: https://lnkd.in/eUwdB5Gu In this piece by Anna Hensel, we speak to Matthew Hertz, Chad Carleton, Aman Advani of Ministry of Supply, Sean Henry of Stord, and Ben Yahalom of True Classic.

Data and intelligence provider SPINS has been tracking how AI tools are already changing the way people search for solutions and products.?This month, Spins?released?its 2025 Industry Trends and Predictions Report, which highlights a shift toward people searching for products through TikTok and AI assistants like ChatGPT. While advertising tools are?still being developed?for these engines, brands that have built out a deep database of content appear set up to benefit from the rise of generative AI search.

If you’re reading this newsletter, chances are you’re already keyed into the challenges brands and retailers are facing thanks to tariffs. You also might be thinking about the broader macroeconomic uncertainties amid dropping consumer confidence and the possibilities of customer-led boycotts. At Modern Retail, we’re consistently exploring these big-picture topics and what they mean for the retail industry. But we’re also zooming in a little farther and examining ways brands are trying new strategies to win with today’s consumer. Here’s a look at a few stories we’ve covered in that vein this week.?

Outdoor retailers are closing stores and pursuing layoffs as they adjust to changing consumer trends around recreational activities. In January,?REI closed its Experiences business, which included adventure travel, day trips, classes and other events, due to high costs and unprofitability. The retailer laid off more than 400 employees because of this, after laying off?more than 350 people a year before?while citing declines in outdoor specialty retail and facing a net loss of $311 million in 2023. DICK'S Sporting Goods also appears to be scaling back outdoor subsidiaries that had been a growth effort for the company; its subsidiary Public Lands recently reduced its store count from eight to three, and the company also shuttered three Moosejaw Mountaineering stores it acquired in 2023 from Walmart,?Retail Dive reported. Meanwhile, Patagonia laid off?90 customer service workers?in June and?41 people in October.