Today in retail, restaurants and grocery stores use shrinkflation to get customers to pay the same amount for less of what they want, while Weber widens its reach to expand its customer base. Plus, Sephora and Kohl’s will have 850 shop-in-shops by the end of 2023.
Despite Attempts to Go Undetected, Shrinkflation Rankles Food Shoppers
On Thursday (Feb. 10), the United States Bureau of Labor Statistics (BLS) announced the January 2022 edition of its Consumer Price Index for All Urban Consumers (CPI-U), which looks at changes in prices across the U.S., noting that food prices had risen 7%, prices for food eaten at home (i.e., grocery purchases) had increased 7.4%, and prices for food eaten away from home (i.e., restaurants) had increased 6.4%.
The Index’s results also showed that, month over month, food prices had increased 0.9%, growing 1% for food consumed at home and 0.7% for food consumed away from home.
Some restaurants and grocery stores are using what’s known as shrinkflation, hoping consumers won’t notice their efforts to give them less while charging the same. In January, for instance, pizza quick-service restaurant (QSR) giant Domino’s announced that, in response to shortages and rising costs, it was modifying its $7.99 carryout chicken deal, making it available online only.
Grabango Adding Checkout-Free Tech to MAPCO Stores
Checkout-free technology platform Grabango is teaming up with convenience store chain MAPCO to add checkout-free operation to a pair of Tennessee locations as part of a southeastern U.S. expansion.
Grabango’s checkout-free services will be available by this fall in two Tennessee MAPCO stores, one of which will feature MAPCO’s “store of the future” experience. MAPCO has more than 330 convenience and fuel retail stores across Tennessee, Alabama, Georgia, Arkansas, Virginia, Kentucky and Mississippi.
Kohl’s Reveals 400 New Sephora Store-in-Store Locations Amid Pressure to Transform
Department store chain Kohl’s on Tuesday (Feb. 15) revealed plans to triple its Sephora shop-in-shop partnership with 400 additional locations this year and another 250 slated to open in 2023, bringing the total to 850.
The store-in-store concept is a 2,500-square-foot Sephora location that looks and feels like a freestanding location. Besides shopping for familiar signature makeup, skincare, hair and fragrance brands, customers can also consult with Sephora-trained beauty advisers and use testing and discovery zones.
Louis Vuitton Shows Pricing Power Amid Strong Demand for Luxury Goods
Fashion brand Louis Vuitton is joining other high-fashion competitors in raising its prices Wednesday (Feb. 16) because of increased manufacturing and transportation costs, a spokesperson for French luxury goods company LVMH in China told Reuters Tuesday (Feb. 15).
LV’s price increases will include leather goods, fashion accessories and perfumes, the spokesperson told Reuters, adding the increases will vary depending on the product. LVMH CEO Bernard Arnault said last month that the company would have to be “reasonable” if it were to raise its prices.
From Grill Academies to New Stores and More D2C, Weber Moves to Dampen Inflation Headwinds
Outdoor grill maker Weber has 10 celebrity chefs backing its new Ambassadors program and has increased its digital tutorials and social outreach, such as its Burning Questions blog.
The company is also deepening its ties with existing retailers in related vertical markets, including outdoor recreation chain REI, local hardware stores and major appliance dealers including Best Buy and large multi-category sellers like Canadian Tire, Amazon and Costco.
Weber’s D2C and digital businesses account for about 12% of its sales.
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