Blake Lively launches haircare line, Zulily's upcoming relaunch and social media’s role in product discovery. Plus, how brands are preparing for tariffs and Target helps consumers recycle denim.
In this week’s news, learn about Beyond’s plans to relaunch Zulily, how social media has become a critical commerce channel and why brands are storing excess stock. Plus, Target is recycling customers’ denim and Brooks Running has a strong Q2. Visit our blog every week for a roundup of the latest commerce news.
Blake Lively launches haircare brand, Blake Brown
Blake Lively has unveiled her new haircare line, Blake Brown, inspired by her personal hair regimen.1 The latest in a long line of celebrities to create brands, Lively is in collaboration with Give Back Beauty. The brand focuses on delivering salon-quality, clean and sustainable products. Blake Brown features eight products that alternate between strengthening and nourishing formulas, ensuring optimal hair health. Notably, the line does not include a traditional conditioner but offers nourishing and strengthening masks. Available exclusively at Target starting August 4th, the products range from $18.99 to $24.99. With scents crafted by top perfumers and clean, vegan ingredients, Blake Brown promises to revolutionize haircare routines.
Beyond set to relaunch Zulily brand in September
Beyond is preparing to relaunch the Zulily brand around September 10, according to Beyond Executive Chairman Marcus Lemonis during an earnings call.2 Following its March acquisition of Zulily for $4.5 million, Beyond has signed over 100 legacy vendors and has another 100 suppliers in the onboarding process. The site is currently in internal testing. Beyond President Dave Nielsen expressed optimism. Beyond brought on “a team of experienced merchants who were with legacy Zulily, know the Zulily customer and have established working relationships with important brand partners and their efforts are bearing fruit as we’ve made great progress on onboarding key legacy vendors, while also adding some new vendors to the mix,” Nielsen said.
Wedbush analysts, led by Michael Pachter, noted that Beyond’s turnaround will likely be gradual as the company focuses on rebuilding customer relationships and enhancing marketing strategies. Despite anticipating negative EBITDA margins for the remainder of the year, analysts predict Beyond could achieve positive EBITDA by next year. This optimism is driven by the expected growth in active customers and order value as Overstock.com revitalizes and Zulily relaunches. Management’s commitment to maintaining expense discipline is also seen as a critical factor in this potential turnaround.
Brooks Running achieves record Q2 revenue with strong growth across channels
Brooks Running set a new record for global quarterly revenue in Q2 2024, with a 15% year-over-year increase driven by robust growth in both wholesale and direct-to-consumer channels.3 In North America, revenue surged 19%, bolstered by the continued success of the Glycerin 21 super franchise, Ghost Max, and the introduction of the Ghost 16. Brooks maintained its No. 1 market share in adult performance running footwear at U.S. national retail for the 10th consecutive quarter and led the U.S. specialty footwear retail segment through the first half of 2024.
In the EMEA region, Brooks saw a 4% revenue increase, with notable sales growth in France and Germany. Brooks also expanded its presence in the Asia Pacific and Latin America regions, opening its first retail store in Shanghai with more stores planned in Beijing and Guangzhou.
CEO Dan Sheridan highlighted the company's focus on performance products and innovation as key drivers of its success. Effective August 1, Matt Dodge will become President and COO, and Josh Vaughan will take over as Managing Director for EMEA. Brooks continues to lead in product innovation, launching updated models like the Hyperion Max 2 and Ghost 16 and debuted a new global brand platform, "Let’s Run There," featuring a campaign with actor Jeremy Renner.
Rising shipping costs and early import rush challenge U.S. businesses
Business owners relying on Asian suppliers may need to expedite their import schedules as fast fashion sales and early shipping for seasonal products drive up freight costs.4 The current surge in ocean cargo volumes from Asia-Pacific to the U.S. is influenced by several factors, including Middle East conflicts disrupting Red Sea shipping lanes, potential strikes by East and Gulf Coast port workers, and increased tariffs on Chinese goods starting August 1. These concerns have led U.S. companies to place their annual product orders as early as April.
This early demand has significantly reduced available cargo space, pushing transport prices higher. According to Xeneta, mid-July spot rates for a 40-foot container from Pacific-Asia ports to U.S. East Coast destinations reached $10,078, a 382% increase since December. West Coast rates also saw a 300% rise to $7,917. Xeneta reports that the average spot rates for these major trades have increased over 140% since late April.
Businesses looking to mitigate potential supply chain disruptions may follow the trend of early ordering, but must consider the rising costs of offloading, handling, and storage at U.S. ports. Additionally, there is a risk of overestimating consumer demand as inflation affects household spending. While early importing could ensure stock availability, it also poses financial risks if consumer demand remains low. Xeneta highlights the dilemma businesses face in balancing costs and inventory needs. (To explore solutions for inventory management, excess inventory, warehouse storage and handling complex supply chain challenges, talk with the Cart.com team today.)
Social commerce dominates Gen Z shopping trends, Walmart survey reveals
More than half (55%) of Gen Z shoppers have made online purchases through social media in the past six months, according to a survey of 2,233 U.S. adults by Walmart and Morning Consult.5 This figure contrasts with 38% of shoppers overall. The survey also found that 44% of Gen Z shoppers start their shopping with online searches, while 42% begin in-store, 40% on retailer apps or websites, and 38% on social media.
The survey highlighted that 49% of respondents would buy more clothes if they had access to effective virtual try-on tools. Walmart’s report focuses on the Adaptive Retail era, which emphasizes highly personalized shopping experiences tailored to individual needs and contexts. Suresh Kumar, Walmart’s global CTO, stated that future retail success depends on predicting shoppers’ needs and providing personalized experiences.
Walmart is targeting younger consumers with innovative digital shopping platforms. In May, the company launched Walmart Realm, an immersive virtual shopping experience, and introduced a Walmart Discovered experience on Roblox last fall. Additionally, Walmart has added new brands like Plus Ultra, Zimba and Clean Age to appeal to millennials and Gen Z shoppers. Sam’s Club, owned by Walmart, has seen significant growth in Gen Z memberships, increasing by 63% over the past two years.
Target launches denim take back event for back-to-school shopping
Target is launching its first chain-wide Denim Take Back Event from August 4-10.6 Consumers can recycle up to five used denim items of any brand and condition at Target stores to receive a 20% promo code via Target Circle, redeemable for a one-time discount on new denim apparel. "Our new Denim Take Back Event is an easy way for families to give their used denim a new life," said Gena Fox, Target's senior vice president of merchandising for apparel and accessories. "With back-to-school and college shopping top of mind, we're offering this 20% off Target Circle deal to make it even more affordable for our guests to refresh their denim wardrobes while reducing waste."
To participate, consumers can drop their used denim in marked in-store boxes and receive the promo code, which can be used on brands like Universal Thread, Wild Fable, Goodfellow & Co, Cat & Jack and Levi's. The event aligns with Target’s commitment to sustainability, keeping used denim out of landfills and repurposing materials through partners. It complements Target’s Car Seat Trade-in Program, which has recycled 2.6 million car seats since 2016.
