We’re starting the week with the news that some janitors and security officers in Minnesota reached tentative deals with subcontractors before March 4, when a strike would have started. The Service Employees International Union (SEIU) Local 26 voted last month “to approve an unfair labor practices strike on behalf of its 8,000 members,” CBS News reported, but many other workers plan on following through with the strike. In the meantime, let’s dive into what else is going on in retail this week.
In new hires: Rent the Runway’s new chief marketing officer starts her tenure today as the company ramps up its marketing efforts. Natalie McGrath most recently worked at Afterpay, where she was a VP of marketing.
During a December earnings call, “Chief Financial Officer Sid Thacker told analysts that the apparel rental company had been thriving despite cuts to its marketing budget,” Retail Dive reported.
Now, Rent the Runway is boosting that spend as part of a restructuring plan that also cut 10% of the company’s workforce and eliminated the COO role.
“The company…is now focused on investing more into areas of the business that reignite the growth funnel, including marketing, consumer product, customer experience and more, enabling RTR to capture more of the large and growing rental subscription market,” a Rent the Runway spokesperson previously told Fashion Dive.
In new partnerships: Starting Wednesday, DTC skin care brand Dieux will make its way into Sephora’s physical stores after launching online last month. It’s the brand’s first wholesale partnership, and its products will be in 714 Sephora locations.
Dieux sustainably sources its vegan ingredients, “and provides price transparency by including the cost of formulas, packaging, labor, payment processing and shipping,” according to Retail Dive. The partnership is equally beneficial for Sephora, which is looking to bring more brands under the clinical skincare umbrella.
In earnings: Target reports earnings tomorrow. It’s coming off a Q3 when, although it beat Wall Street’s expectations, revenue still dropped more than 4% YoY as customers eased spending ahead of the holidays. Analysts anticipate that Target will bring in higher YoY earnings and a revenue bump.
The company has been focused on its private label ventures, introducing Dealworthy—a private label aimed at price-conscious consumers—last month, and overhauling its up&up brand with a broader selection of products, new packaging, and updated formulas.