This week’s marketing winners, losers and newsmakers.
Marketing News & Strategy
Marketing winners and losers of the week
J.Crew makes a retro play and Flau’jae Johnson gets an NFL plug—plus, why it was a bad week for Shein, Temu, Subway and Dollar Tree
Gift Article
Gift Article.
10 Remaining
As a subscriber, you have 10 articles to gift each month. Gifting allows recipients to access the article for free.
Demi Moore fronts J.Crew’s catalog.
Credit:
J Crew
Winners
J.Crew: The clothier’s announcement that it is bringing back its paper catalog this fall earned it some positive buzz. Last appearing in mailboxes seven years ago, J.Crew’s style-laden catalog was formerly an important element of the brand’s marketing toolbox. The first return edition will feature the nostalgic choice of ’90s fashion favorite Demi Moore.
Dick’s Sporting Goods: The retailer scored a win with its results this week, reporting second-quarter net sales of $3.5 billion, a 7.8% rise over the year-earlier period. The strong performance prompted Dick’s to raise its annual same-store sales expectations slightly—it now expects 2.5% to 3.5% growth in fiscal 2024 versus its prior forecast of a 2% to 3% uptick. The positive outlook was no surprise to investment bank TD Cowen, which earlier in the week released a consumer tracking survey showcasing a rise in Dick’s share of the sporting goods category share to 37% in June, a new peak. The retailer is benefitting from stocking trendy brands including footwear sellers On and Hoka and water bottle maker Stanley.
Flau’jae Johnson: The college basketball star’s budding music career is getting a big boost from the NFL. The league is including her song “Came Out A Beast” (which features a collab with Lil Wayne) as part of its 13-track “Songs of the Season” promotion in partnership with Roc Nation. The songs will be featured on NFL platforms including NFL Network this season. The playlist is also available on Apple Music and other digital music providers. Roc Nation, which has a distribution deal with Johnson, since 2019 has been the NFL’s official “live music entertainment strategist,” including playing a big role in the Super Bowl halftime show. Miley Cyrus is rumored to be in contention for the 2025 Big Game performance.
Losers
Shein and Temu: The Chinese discounters have caught the eye of U.S. regulators regarding the safety of their baby and children’s products. Federal safety regulators said consumers could potentially buy products on both Shein and Temu’s websites that do not meet U.S. safety regulations. Consumer Product Safety Commission Commissioners Peter A. Feldman and Douglas Dziak called on commission staff to analyze products under the Consumer Product Safety Act. Media reports have cited banned items such as padded crib bumpers offered for sale on both sites.
Dollar Tree: The retailer’s second-quarter results and full-year guidance released Wednesday disappointed investors enough to send the company’s share price down 22%. Dollar Tree reported revenue and earnings that missed analyst expectations. It also lowered its fiscal 2024 net sales outlook range to $30.6 billion to $30.9 billion from $31 billion to $32 billion. Company executives cited the “effect of macro pressures on the purchasing behavior of Dollar Tree’s middle- and higher-income customers.”
Subway: The sandwich chain is fighting with some franchisees over plans to switch from Coca-Cola Co. to PepsiCo products. The North American Association of Subway Franchisees, which represents about half of the chain’s franchisees, “has balked at urging members to sign the deal because the financial details have been kept under wraps,” according to the New York Post, which notes that the skirmish comes as some franchisees are also in revolt over the chain’s new $6.99 footlong sandwich deal.
Quote of the week
“Advertisers have to stop thinking about exploiting group interests. We are no longer advertising ‘at’ audiences, rather inviting them to play.” —Catherine D. Henry, a Gen Z brand consultant, on how marketers can invite sustained interest with consumers on Roblox.
Social post of the week
Number of the week
75.7%: Percentage of LGBTQ+ adults who said they would have a less favorable opinion of a company that rolls back DEI initiatives, according to a new survey from the Human Rights Campaign Foundation.
More: Molson Coors joins other brands in diversity retreat
On the move
Puma appointed Tara McRae as senior VP of marketing and brand strategy for the North American market. She was most recently global chief marketing officer and digital officer at Clarks. McRae was previously the first CMO at TB12, a lifestyle brand co-founded by Tom Brady. She spent a decade at Puma earlier in her career.
Burberry hired Jonathan Kiman as CMO. He had been CMO of Gucci.
Michael Del Pozzo has been named president of U.S. confection at The Hershey Co., where he will oversee a portfolio of brands including Hershey’s, Reese’s and Jolly Rancher. Del Pozzo is a 23-year veteran of PepsiCo, serving most recently as president and general manager of Gatorade. PepsiCo is not naming a successor to Del Pozzo but instead will integrate Gatorade into its broader Pepsi Beverages North America business, a spokesperson confirmed.
Functional food maker NextFoods, whose brands include Cheribundi and GoodBelly, named Lella Rafferty CMO. She previously worked at Samsung, Gatorade and Noom.
Contributing: Jon Springer
