Today in Retail: Gorillas’ Deal for Frichti Continues Ultrafast Grocery Sector Consolidation; Katapult Upgrading Platform

Today in retail, a direct-to-consumer toothpaste startup finds its audience, while Macy’s is overhauling its website and focusing on customized shopping experiences. Plus, Walmart Global Tech team is adding more than 5,000 employees and hubs in Toronto and Atlanta and H&M Group reports 23% year-over-year increase in net sales in fiscal 2022 Q1.

Macy’s Will Revamp Website, Turn Employees Into Stylists

Macy’s is updating its website and will train some employees to become personal stylists as the retail giant tries to offer more customized shopping options with more one-on-one attention and an easier online experience for its customers, according to a CNBC report Tuesday (March 15).

The move comes in the wake of the review Macy’s conducted with consultant AlixPartners to decide whether the company should separate its eCommerce and brick-and-mortar operations. While Macy’s decided against the split, the company says the evaluation showed areas it could improve operations, both online and in stores.

Ultrafast Grocery Acquisitions Continue Amid Category’s Demand for Consolidation

German quick-commerce startup Gorillas this week closed its first acquisition deal for French delivery startup Frichti for undisclosed terms, continuing the consolidation of the ultrafast grocery market.

In 2021, on-demand essentials and food delivery service Gopuff acquired United Kingdom-based on-demand delivery startups Dija and Fancy. Also, Turkish 10-minute grocery delivery startup Getir agreed to acquire British rival Weezy and German food delivery giant Delivery Hero announced an acquisition agreement to become the majority shareholder of Barcelona-based quick-commerce startup Glovo.

A January report found that on-demand delivery services’ losses can amount to an average of $20 per order.

H&M Group Net Sales Up 23% in FY22 Q1

H&M Group on Tuesday (March 15) announced its net sales for the first quarter of fiscal 2022 were up 23% year over year, finishing the three-month period ending Feb. 28 at 49.166 million SEK ($5.12 million), although that number might change when the full earnings report comes out March 31.

The Stockholm, Sweden-based retailer’s net sales in local currencies was up 18% for the quarter, the company press release says.

H&M is one of the increasing number of retailers who have suspended all sales in Russia since the country attacked on Ukraine in late February. H&M stores in Ukraine have also been temporarily closed out of concerns for safety of employees and shoppers.

Katapult Says Strategic Investments, Pending Platform Upgrades Can Offset Eco Headwinds

Orlando Zayas, CEO of lease-purchase firm Katapult, told investors Tuesday (March 15) that the Texas-based FinTech — and the broader payment plan industry — will find a way forward as merchants and their customers shift to phase two.

So far, that hasn’t won the confidence of analysts who have shrunk the company’s stock by 50% this year alone, and by nearly 90% over the past 12 months, leaving it with a stock price under $2 and a market value that’s slipped below $200 million.

Katapult will make strategic product, technology and sales staff investments designed to capture market share, said Zayas, adding the company was in the “initial stages of creating a sizable, durable and scalable business.”

Walmart Global Tech Hiring 5,000+; Adding Hubs in Atlanta, Toronto

Walmart Global Tech on Tuesday (March 15) announced it is hiring more than 5,000 associates globally this fiscal year and adding hubs in Toronto and Atlanta, according to a blog post by Suresh Kumar, EVP, chief technology officer and chief development officer, Walmart Inc.

Global Tech is the fastest-growing corporate team at Walmart, wrote Kumar. The group “develops and manages the foundational technologies on which customer experiences are built,” he wrote, including cloud, data, enterprise architecture, DevOps, infrastructure and security.

Walmart Global Tech has more than 20,000 associates around the world. The division is looking to add cybersecurity professionals, architects, developers, software engineers, data scientists, data engineers, technical program managers and product managers.

Differentiation, Education, Amplification: Secrets of a D2C Toothpaste Startup

Like all direct-to-consumer (D2C) brands, Better & Better’s marketing strategy lives largely on social media, in this case Facebook and Instagram, and relies heavily on word-of-mouth testimonials, customer reviews, influencer traffic and paid search on Google.

But Better & Better Co-founder and CEO Vladimir Vukicevic told PYMNTS he also takes advantage of another little-known oddity of the oral care industry to help grow the business and brand.

Although at some point longer-term plans could include a full multimedia advertising and marketing campaign, the early days are focused on building up a loyal following before branching out to retail partners later this year.