The Goods (U.S. Edition) – A Wholesale Whodunit
Welcome back to The Goods! This week we’re discussing returnless refunds, secret links in the grocery supply chain, and blind dates for book lovers this cuffing season.
Cup, cone, or cracker? Baskin-Robbins has taken inspiration from a cheeseboard for its newest Flavor of the Month, “Brie My Guest.”[1]Brie and burrata flavored ice creams are swirled together with almonds, pistachios, and a touch of apricot. This is one monthly special we will RSV-Brie for.
What’s in: this week’s trends
- IKEA Ave: Competition for retail space on New York City’s vibrant Fifth Avenue is intensifying, as luxury and affordable retailers alike are opting to purchase rather than rent prime storefronts.[2]With rising interest rates and fewer real estate investors in the market, companies like IKEA and Uniqlo are joining luxury fashion houses with permanent locations on the famous avenue. By buying rather than leasing, they’ll be able to keep overhead costs more predictable and continue providing accessible products.
- The Refundamentals: Major U.S. retailers including Amazon and Walmart are offering “returnless refunds,” allowing customers to keep unwanted items while still receiving a full reimbursement. Companies typically employ this strategy for low-cost or limited resale value products, which alleviates stress for online consumers and reduces shipping fees.[3]Algorithms are used to determine eligibility for refunds based on customer history and item demand.
- Woke-and-Dagger: As the holiday shopping season approaches, retailers are struggling to navigate diversity, equity, and inclusion (DEI) after a number of high-profile consumer companies walked back some of their policies in recent months. Companies are scaling back public commitments to DEI while trying to balance a wide consumer base – avoiding alienating customers who may deem a brand “too woke” or not woke enough.[4]
- A Wholesale Whodunit: Who really is to blame for rising grocery costs? Some food manufacturers claim they are not pocketing more profit, but instead raising prices due to a little-known link in the supply chain – grocery distributors.[5] Distributors are the middlemen of the grocery business that buy, store, sell and ship food products to supermarkets. They also levy fees for things like late shipments, new flavor launches, retail promotions and spoilage. This has led some manufacturers, especially smaller or specialty food makers, to raise prices.
Cash or card: consumer behavior
What’s going on with the consumer these days? This week we talk Travel Tuesday, slow shopping, and the consumer desire for less choices.
- You Choose, You Lose: The once exciting endless options of online shopping have become torturous for consumers, as they suffer from the “paradox of choice.”[6] The utterly vast variety of options is leaving consumers feeling stressed and with decision paralysis. As a result, consumers are flocking to brick-and-mortar stores that provide fewer options, a move away from the pandemic-fueled online shopping craze.
- Boarding for Bargains: While some bargain-hunting consumers get their holiday gifts on Black Friday and Cyber Monday, others are waiting until Travel Tuesday – the first Tuesday after Thanksgiving – to snag deals on trips.[7] Searches for “Travel Tuesday” jumped more than 500% from 2021 to 2023, and airline and cruise bookings spiked more than 50% on the day last year. Experts caution that Travel Tuesday may not reach the popularity level of Black Friday, as travel bookings are not conducive to impulsive purchases.
- Taking Things Slow: Shoppers looking to avoid impulse spending are trying out “slow shopping,” taking time to think through each purchase to make more mindful buying decisions.[8] This tactic gives consumers time to move past an emotion or desire, and monitor prices to ensure they are securing the best deal. According to a survey by Affirm, 73% of consumers are “slow shopping” this holiday season, with nearly half of shoppers using this strategy to capitalize on promotions.
Making moves: industry transformations & innovation
ICYMI, even industry icons need to reinvigorate their brand presence through unique and creative ways. Here are some new brand moves that you should know about:
- Soft (Drink) Launch: A few years since being discontinued, Coca-Cola is relaunching Mexican soft drink, Barrilitos.[9] The company says the fruity beverage appeals to multicultural Gen Z’ers, millennials and families, and the relaunch comes as Hispanics are fueling 16% of total CPG growth in the U.S. The product will first be available in California and Texas, with a (secret) reformulation. Barrilitos debuted in 1938 in Monterrey, Mexico and was purchased by Coca-Cola in 2008.
- Don’t Judge a Book by Its Cover: Some consumers are entering cuffing season with a more literary focus, by going on a blind date with a book.[10] Bookstores nationwide have started setting up tables with gift-wrapped books and vague descriptions for titles. A tradition that started on Valentine’s Day in NYC’s Strand bookstore, “Blind Date with a Book” is a fun way for shoppers to grab a new title and allows stores to promote often-overlooked books.[11]
- I’ll LacTOAST to That! In a big win for dairy-free coffee drinkers, starting on November 7th, Starbucks will stop charging an extra fee for nondairy milk options.[12] CEO Brian Niccol stated that customization is core to the “Starbucks Experience,” and this change will make it easier for customers to make a beverage their own. Behind an extra shot of espresso, non-dairy milk is the second-most requested customization.
For more information about FTI Strategic Communications Retail & Consumer Products sector service offerings and expertise, please contact [email protected]
[1] Sabrina Weiss, “Baskin-Robbins’ Newest Ice Cream Flavor Is Brie and Burrata Cheese,” People (November 1, 2024), https://people.com/baskin-robbins-releases-new-brie-and-burrata-cheese-ice-cream-flavor-8738365
[2] Celia Young, “Retailers Jump at the Chance to Invest in Fifth Avenue,” The New York Times (November 5, 2024), https://www.nytimes.com/2024/11/05/realestate/retailers-fifth-avenue.html?smid=nytcore-ios-share&referringSource=articleShare
[3] Haleluya Hadero, “Many retailers offer ‘returnless refunds.’ Just don’t expect them to talk much about it,” ABC News (November 4, 2024), https://abcnews.go.com/US/wireStory/retailers-offer-returnless-refunds-expect-talk-115465130
[4] Gabrielle Fonrouge, “Retailers brace for DEI blowback in lead-up to election, holiday shopping season,” CNBC (November 5, 2024), https://www.cnbc.com/2024/11/04/retailers-brace-for-dei-blowback-ahead-of-election-holiday.html
[5] Jesse Newman, “The Mysterious Fees Inflating Your Grocery Bill,” The Wall Street Journal (November 2, 2024), https://www.wsj.com/business/retail/food-inflation-mysterious-fees-distributors-ed17bb45?mod=retail_more_article_pos2
[6] Emilie Friedlander, “Paralyzed by Choice,” Business Insider (November 4, 2024), https://www.businessinsider.com/online-shopping-ecommerce-comparison-burnout-too-many-choices-overwhelming-decision-2024-11
[7] Monica Pitrelli, “Move over Black Friday: Consumer interest in ‘Travel Tuesday’ soars,” CNBC (November 4, 2024), https://www.cnbc.com/2024/11/04/travel-tuesday-2024-searches-soar-as-shoppers-want-travel-over-stuff-.html
[8] Jessica Dickler, “’Slow Shopping’ can save you money this holiday season. Here’s how it works,” CNBC (October 31, 2024), https://www.cnbc.com/2024/10/31/slow-shopping-can-save-you-money-this-holiday-season-how-it-works.html
[9] Christopher Doering, “Coca-Cola relaunches Mexican soft drink brand Barrilitos in California and Texas,” FoodDive (November 1, 2024), https://www.fooddive.com/news/coca-cola-relaunches-mexican-soft-drink-brand-barrilitos-california-texas/731646/
[10] “Cuffing Season,” Merriam-Webster Dictionary https://www.merriam-webster.com/wordplay/cuffing-season-meaning-origin (November 11, 2024),
[11] Hank Sanders, “Bookstores Are Setting Up Readers on ‘Blind Dates’ With Books,” The New York Times (November 3, 2024), https://www.nytimes.com/2024/11/03/books/blind-date-with-a-book.html
[12] Rebecca Cohen, “Starbucks will stop charging extra for nondairy milk,” NBC News (October 30, 2024), https://www.nbcnews.com/business/business-news/starbucks-will-stop-charging-extra-non-dairy-milk-rcna178129
The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates or its other professionals.
FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.
FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political and regulatory, reputational and transactional. FTI Consulting professionals, located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges and opportunities. ©2024 FTI Consulting, Inc.
All rights reserved. fticonsulting.com
