Meet the Spuglies: Walmart Attacks Food Waste

Quartz: “Shoppers tooling down Walmart grocery aisles now encounter brands that package and sell ugly produce. The ‘Spuglies’ brand markets misshapen potatoes and the ‘I’m Perfect’ brand offers apples that have gone askew. These companies pushing misfit fruits and veggies into the mainstream give consumers a way to fight food waste with their wallets.”

“Since it began tackling food waste within its own system in 2013, the retailer says it has diverted 82% of food that would have otherwise gone to landfills. That amounts to about 2 billion meals. According to ReFED, a food waste advocacy group, a 20% reduction in waste would reclaim the 1,250 calories per capita that goes into landfills each year. That’s enough to feed America’s food-insecure population three times over.”

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Naughty But Nice: Food & Morality

The Guardian: “Anything that tastes good has got to be bad for your body, soul or both. The marketing department of Magnum knew this when it called its 2002 limited edition range the Seven Deadly Sins. Nothing makes a product more enticing than its being naughty, or even better, wicked.”

“In recent years, however, the moralistic lexicon of food seems to have expanded. One recent fad has been for ‘dirty’ American food, a term that revels in the idea that fatty burgers and messy pulled pork buns are so right because they’re so wrong … Perhaps the clearest proof that the way we talk about food is saturated with moralism is the ubiquity of the term ‘guilt.’ Marketing departments have seen the power of this and promoted ‘guilt-free’ snacks and treats.”

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Cover Story: Fashion That’s Fast But Not Loose

The Wall Street Journal: “In India, consumers want their fashion fast, but not so racy. So, for Cover Story—India’s first domestic fast-fashion chain—that often means censoring international looks … Many Indian women aren’t comfortable showing their midriffs, for example, so Cover Story began layering crop tops … Dresses with deep necks were deemed too daring, so the company’s designers added netting along the neckline.”

“Color is another point of difference: Indian consumers tend to favor brighter colors than Western apparel shoppers. When the Cover Story designers saw black, white and gray striped clothes on the runways they swapped out the shades for blue and red.”

“Cover Story plans to bring fresh styles to its shelves every week. It expects to open 100 outlets in the next five years, particularly in smaller towns where consumers are more likely to find the unedited international styles too provocative. Competing global chains say they don’t plan to open even half that number of stores.”

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Michaels: The Art & Craft of The Retail Experience

“We’re not Apple. We don’t make the new iPhone that people will line up in advance for. We need products that people want in an environment they want to shop in,” says Chuck Rubin, CEO of Michaels, in Forbes.

“Michaels is one of the most surprising retail successes of recent years. It has stuck to transforming its brick-and-mortar stores while almost completely ignoring e-commerce … While the company’s core hasn’t changed–it sells cheap craft supplies–Rubin has modified its stores to make it easier for novice crafters to find items. They’re bringing in more of those types of customers by moving beyond sewing-room basics, adding cooler items, like those coloring books, and Michaels-exclusive products, such as Isaac Mizrahi-branded yarn.”

“The most striking part of Michaels’ success is how it contradicts the digital era’s implied mandate for retailers–that survival hinges on selling online. But Michaels hasn’t wasted millions competing with Amazon.com on e-commerce. It’s grown while focusing squarely on improving what’s within its stores’ four walls … The Web remains a no-man’s-land for Michaels … Rubin knows all that stands between Michaels and Bezos is the in-store experience.”

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Chipotle: Too Cold to be Cool?

Business Insider: “Chipotle is hardly the first big company to screw up, but the reason it’s now struggling to woo customers might have to do with … placing too much focus on food and not enough on connections with customers. That’s according to Chris Malone … coauthor, with the psychologist Susan Fiske, of The Human Brand.”

“Malone said he doesn’t have concrete data, but before the outbreaks, he’d personally observed minimal interaction between customers and servers, almost no managerial supervision, and employees unfazed by long wait times. Then the outbreaks — and the fact that the company couldn’t pinpoint their source — called into question Chipotle’s core competency. Suddenly the company had nothing going for it.”

“If Chipotle wants to bolster its image among consumers, it needs to ‘put more of a human face on the company,’ Malone said. But he’s skeptical that it would be able to do that.”

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Direct Disruption: The Tide Wash Club

The Wall Street Journal: “Blindsided by the success of the upstart Dollar Shave Club, an online subscription service that chipped away at the dominance of Gillette razors, P&G executives say they are focusing not only on what consumers buy but on how they buy … P&G is experimenting with … the Tide Wash Club, an online subscription service for the dissolvable Tide Pods capsules that are the company’s highest-priced laundry detergent. The company offers free shipping at regular intervals.”

“Another new offering: Tide Spin, an undertaking P&G is calling the ‘uberization of laundry,’ in which customers in parts of Chicago can use a smartphone app to order laundry pickup and delivery from Tide-branded couriers. With the ventures, P&G is delving deeper into the business of connecting consumers directly with the products it makes, especially a new generation less loyal to the company’s big brands.”

“Privately, P&G executives acknowledge the company was caught off guard by the success of Dollar Shave Club, which started in 2011 and says it now has 3.2 million subscribers. ‘It was probably on the radar but we weren’t necessarily having the right conversation around what might disrupt us,’ said a person familiar with the company’s thinking.”

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Big-Bang Retail: Hershey Chocolate World To Triple Size

“Hershey said it would open a new New York City flagship location triple the size of its existing Times Square store,” The Wall Street Journal reports. “At a little more than 2,200-square feet, Hershey’s Chocolate World store at West 48th Street and Broadway is popular, but its size limits the number of brands and experience the company can offer, a Hershey spokeswoman said.”

“Hershey will join other Times Square tenants creating more interactive or engaging retail environments … Last month, the National Football League, Cirque du Soleil and the National Football League Players Association announced they would open an NFL Times Square experience, a four-story, 40,000-square foot permanent exhibit also at 20 Times Square. The exhibit will include an NFL store, a 350-seat theater, and high-tech, interactive displays designed to re-create an immersive experience of a football game for fans.”

Andrew S. Goldberg of CBRE Group comments: “If you look at all the stores now [in Times Square], it’s not traditional retail being done in the old format way. Everyone is looking at how to keep the customers engaged longer and having them stay and be more involved in the store.”

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Macy’s: Putting the ‘AI’ Into Retail

The Washington Post: “Macy’s … has teamed up with IBM Watson to use artificial intelligence as a customer service tool in 10 of its stores. The retailer dubbed the pilot program ‘Macy’s On Call,’ and it will allow customers to type in questions on their phones and receive answers. Unlike some chatbots that can only regurgitate pre-programmed responses based on keywords, IBM Watson will learn over time to give better answers that are customized to individual stores.”

“Macy’s move is an acknowledgment of what a habit it has become for consumers to swipe and tap on their smartphones while they’re on the go. And it’s a bid to figure out how to channel that behavior into an advantage — not a threat — to in-store shopping.”

“Macy’s is not the only retailer that is experimenting with some use of artificial intelligence. IBM Watson has already dabbled in using its tools to power other shopping experiences such as a collaboration with outdoor apparel brand North Face on a website that helps shoppers find the right jacket.”

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Baseball: These Are The Good Old Days

The Wall Street Journal: “Baseball’s nostalgia is often seen as a virtue when it’s more accurately a disease. Baseball is the one business—outside of perhaps politics—that considers it good strategy to tell you its product is less than what it used to be. Baseball is currently watched by more people than at any other time in human history, and played at a higher level that we have ever seen before.”

“If Mickey Mantle ever saw a Noah Syndergaard fastball, he would never stop crying. If Babe Ruth faced Clayton Kershaw, he would call the Dodgers lefty a witch and want him burned for black magic. There were no good old days. The good old days are now.” – Will Leitch, reviewing The Baseball Whisperer by Michael Tackett.

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Luxury: It’s Not What It Used To Be

USA Today: “People around the world who usually flock to luxury goods are worried about events that threaten global stability including terrorism fears, the United Kingdom’s withdrawal from the European Union and China’s slowdown. At the same time, luxury retailers are losing share to online sellers, the same issue bedeviling mainstream store chains. They’re also suffering at the hands of discounters and fast-fashion luxury lookalikes.”

Milton Pedraza, CEO of The Luxury Institute, comments: “The story with luxury is it’s just not as a exclusive and it doesn’t justify the price like it used to. Too many of them are discounting and there’s not enough consumer demand.”

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