Retail Brew // Morning Brew // Update
Ikea and Best Buy’s shop-in-shop concept.

Hey there. If you’ve ever thought to yourself, “My outfit needs a taco holster,” well, Taco Bell and Venmo have got you covered with the launch of their limited-edition handcrafted leather Taco Bellt, which comes with a built-in Cantina Chicken Taco holder. Yes, it’s real. No, we don’t know why.

In today’s edition:

—Alex Vuocolo, Jeena Sharma, Beck Salgado

STORES

A Best Buy storefront

Refrina/Adobe Stock

In what the companies are calling a “first-of-its-kind” collaboration, Ikea US is opening shop-in-shops within select Best Buy locations.

At 10 stores throughout Florida and Texas, Ikea will set up 1,000-square-foot shop-in-shops, showcasing kitchen and laundry room furnishings. Ikea associates will be available to help customers plan and order their items, while Best Buy “blue shirts” will be nearby to provide assistance with the purchase of electronics that fit into their new kitchen or storage area.

The partnership marks the first time Ikea products and services will be available in another US retailer, in this case a fellow big-box store and category killer. It’s also the first time Best Buy has partnered in this capacity with another major retailer, as opposed to one of its vendors or brands.

So what made the two titans reach across the aisle? According to executives from both companies, it was a combination of shared values and a clear value proposition for customers, which led to a speedy implementation.

Keep reading here.—AV

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E-COMMERCE

A bundle from Urban Stems and Drinks collaboration

Urban Stems/Drinks

What happens when flowers meet alcohol? Well, they make the perfect gifting bundle, at least according to Meenakshi Lala, CEO of floral delivery service UrbanStems, which has struck up a partnership with Drinks, the AI-powered e-commerce alcohol platform.

To kick off the collaboration, UrbanStems will offer its editorial floral arrangements paired with organic wines from Avaline (co-founded by Cameron Diaz)—all shipped together through Drinks’s decentralized fulfillment network.

The move comes as UrbanStems continues to scale its business. Bloomberg reported the company’s valuation at more than $100 million in 2021, and it went on to raise another $5 million in a Series C extension in 2024.

For UrbanStems, the partnership represents its first step toward becoming a broader premium gifting platform. For Drinks, it’s “the first major move into the gifting vertical,” per the company.

Keep reading here.—JS

PAYMENTS

A portrait of Affirm's Chief Revenue Officer, Wayne Pommen

Wayne Pommen

Buy now, pay later contender Affirm is riding high after its latest earnings report showed strong growth in the competitive market.

The company saw a 34% revenue increase to $933 million, with gross merchandise volume (GMV), the total dollar amount of all transactions on the Affirm platform, growing 42% YoY to a record $10.8 billion. Notably, it also reported a net income of $81 million.

Affirm’s CRO Wayne Pommen took a victory lap with Revenue Brew as he spoke about what worked well with the company’s revenue strategy and his focus for 2026.

Keep reading here on Revenue Brew.—BS

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SWAPPING SKUS

Today’s top retail reads.

Big business: Unilever is contemplating sales of iconic UK brands like Marmite, Colman’s, and Bovril. (Reuters)

Quarter crunch: Why Williams-Sonoma’s CEO predicts a harsher impact from tariffs in Q4. (CNBC)

Big box bucks: Target will invest a whopping $1 billion in store remodels and tech. (Retail Dive)

Build trust: AI only recommends brands that people trust—backed by data, of course. Get Novi’s white paper to learn what you can do to get more eyes on your brand in the age of AI shopping.*

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