REI Enlarges Travel Services Portfolio; Amazon and iRobot Alter Merger Agreement Valuation

REI Enlarges Travel Services Portfolio; Amazon and iRobot Alter Merger Agreement Valuation

Here's your weekly retail roundup, breaking down the key happenings and keeping you in the loop:

Mark your calendars - Wacky snacks in the limelight!

1. Mustard mania strikes again with the launch of yellow, mustard-flavored Skittles to mark National Mustard Day (August 5). Keep your eyes peeled for a chance to win these unique treats through an online sweepstakes and pop-up events in select cities.
2. Popcorn, but make it more - the famous Orville Redenbacher is entering the seasonings game with six flavor partnerships like Cinnabon cinnamon roll, Buffalo Wild Wings buffalo, and movie theater butter. Fancy taking your kernels up a notch? This is your moment!

REI goes all-in on the Great Outdoors

As a nod to its co-op roots, REI's long-term strategy revolves around environmental preservation, circular economy initiatives, and community engagement. Here's a sneak peek at how they're growing their outdoor services business:

• Re/Supply Program Expansion: REI's resale program, Re/Supply, is booming. Since 2019, they've sold nearly 1.4 million used items, focusing on outdoor gear like backpacks, sleeping bags, and tents. This not only generates revenue but also supports the environment by reducing waste.
• Zero-Waste and Circular Economy Initiatives: REI aims to become a zero-waste operation by recycling difficult-to-process items and sourcing recycled materials for new products. They're even experimenting with innovative materials like yarn made from industrial waste gases.
• Focus on Sustainability and Climate Impact: REI is taking steps to minimize the carbon footprint of its operations and products by embracing sustainability and eco-friendly materials.
• Community and Cooperative Engagement: As a consumer co-op, REI fosters a loyal customer base, which fuels the growth of its outdoor services through member participation and shared values around sustainability and outdoor stewardship.

The resale market is burning bright

1. Mercari believes that the resale market is one of the fastest-growing segments for consumer spending, surging by around 87% to touch $325 billion by 2031.
2. Second-hand shopping is gaining traction, particularly among Gen Z and millennials, who are keen on sustainable practices and seeking unique items.

Beating expectations – but at a cost

• eBay reported higher-than-expected revenue in Q2, with $2.5 billion in earnings and a 5% increase. However, their margins took a hit, with the operating margin contracting to 20.4%. This change is attributed to investments in advertising, acquisitions, and other factors.

As always, don't forget to subscribe to our free daily newsletter, Retail Dive, to keep up with the latest trends and developments in the retail industry._

[1] Richardson, K. (2022, January 12). REI Expands Sustainability Efforts with New Takeback Program and Commitment to Carbon-Neutral Operations. Retail TouchPoints. https://www.retailtouchpoints.com/operations/rei-expands-sustainability-efforts-new-takeback-program-commitment-carbon-neutral-operations_[2] Donohue, I. (2022, November 17). REI's Reinvention: How the Co-op Is Embracing Inclusivity and Expanding Its Horizons. Outdoor Retailer + Snow Show. https://outdoorretailer.com/articles/rei-reinvention-inclusivity-expansion/

1. The interest in AI is evident in the retail sector, as a new valuation report projects that the global business-to-business (B2B) AI market could grow to $603 billion by 2028, representing a significant 285bps compound annual growth rate.
2. In the realm of policy, government officials are considering implementing new trade agreements to boost the economy, which could have a substantial impact on retail businesses and the flight of goods.
3. The environment is playing an increasingly important role in corporate decisions, with major executives across various industries pledging to reduce their carbon emissions by certain percentages in the coming years.
4. While the cost of living crisis continues to affect households in many developed countries, the positive side is the growing interest in sustainable living and minimizing food waste, as evidenced by the rise in popularity of food-and-drink delivery services that prioritize eco-friendly practices.
5. The travel industry is adapting to the changing consumer landscape, with more companies offering flexible booking options to accommodate travel disruptions due to wars or other unexpected events.
6. The sports world is seeing a surge in online NBC Sports coverage, making it easier for fans who want to follow their favorite teams and athletes from the comfort of their homes.
7. In the real estate market, home-and-garden suppliers are reporting a significant rise in sales due to the increase in home renovations and improvements, driven by remote work arrangements.
8. As part of their sustainability initiatives, some businesses are responding to consumer concerns about worker welfare by ensuring fair labor practices and ethical production processes for their merchandise.
9. The retail landscape is transforming with the rise of screen marketing, as more companies invest in digital signage and targeted TV ads to reach consumers and drive sales in stores.
10. In the fashion industry, luxury brands are increasingly leaning into experiential retail, providing unique and personalized shopping experiences for customers as they seek a more immersive lifestyle.
11. In a nod to consumer demand for customization, upscale retailers are rolling out bespoke trips for customers who want to personalize their travel experiences according to their preferences and interests.

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