The Drum’s Daily Briefing: Store brands surge & Abercrombie’s comeback
Our quickfire analysis of the brand, marketing and media stories that might just crop up in your meetings and conversations today.
Abercrombie & Fitch’s CEO credited agile marketing and inventory management for its success / Adobe Stock
Store brands surge as inflation shifts buying habits in US
With inflation rising, Americans are now purchasing a quarter of their groceries from store brands, moving away from pricier national names.
Store brands, otherwise referred to as own brands, saw significant growth in deli, pet care and produce sales, while national brands still dominate overall with 78% of dollar shares.
Despite a slowdown in grocery price inflation, consumers remain cost-conscious, fueling nearly a 5% increase in store brand sales over the past year. This shift reflects ongoing economic pressures and changing consumer priorities as they seek affordable alternatives.
Notably, store brands are now positioning themselves to compete head-on with well-known national brands.
Does Abercrombie’s comeback signal revival for mall brands?
Abercrombie & Fitch is making a solid comeback, reporting $1bn in net sales for its best first quarter ever – a 22% increase from last year. Shares surged 20% to $187.
CEO Fran Horowitz credited agile marketing and inventory management for the success.
The brand’s resurgence reflects a broader trend of iconic mall brands like Hollister, American Eagle and Gap finding new life.
This revival is bolstered by shifts in post-pandemic culture and consumer preferences, with store transformations and strategic marketing playing key roles in their renewed appeal.
American Airlines boss ousts exec over sales strategy
American Airlines CEO Robert Isom has fired chief commercial officer Vasu Raja following a Bain & Co report highlighting issues with a controversial new marketing system that alienated corporate clients and led to revenue declines.
The strategy aimed to reduce reliance on booking agencies, pushing direct bookings instead. The backlash contributed to a 14% stock drop and a lowered profit outlook.
American announced Raja’s departure on Tuesday, acknowledging that corporate travel growth lagged behind competitors United and Delta.
Amazon MGM Studios expands Lauren Anderson’s advertising role
Amazon MGM Studios executive Lauren Anderson will now connect advertisers with ad-supported original content.
As the new head of brand and content innovation, Anderson will collaborate with brands to create engaging partnerships across Amazon’s Originals. She’ll work closely with Amazon Ads, Prime Video Ads and Studios Marketing teams to generate sponsorships, integrations and custom content for AVOD, Fast and SVOD customers.
The move aligns with Amazon’s push to increase ad sales on Prime Video and Freevee, leveraging Anderson’s expertise to boost advertising revenue.
Anderson retains oversight of her current teams developing original shows for Prime Video and Freevee.
Rakuten unveils AI-driven advancements in affiliate marketing
Rakuten Advertising has launched its Affiliate Intelligence initiative, integrating AI to enhance advertiser and publisher relationships.
CEO Nick Stamos emphasized the initiative’s goal of leveraging technology to strengthen industry connections.
Upcoming AI-driven upgrades include advanced audience analytics, performance reporting and automation tools. New partnerships with major publishers such as YouTube and Capital One Shopping highlight the initiative’s expansion.
Ben Cox, newly appointed VP of AI strategy & operations, will lead AI advancements alongside VP of data science Justin Smith.
The initiative aims to revolutionize affiliate marketing through predictive analytics, personalized matchmaking and real-time compliance monitoring.