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Gen Alpha and brick and mortar.

It’s Monday, and if you were planning on cutting down on carbs this week, avert your eyes, because today is a big day for dough in its most irresistible forms: It’s National Pizza Day and National Bagel and Lox Day. If only these items weren’t so hard to find here in New York…

In today’s edition:

—Erin Cabrey, Jeena Sharma, Alex Vuocolo

STORES

Gen alpha friends shopping at the mall.

Fly View Productions/Getty Images

Just when it felt like we finally had a firm grip on what Gen Z consumers are looking for, Gen Alpha has entered the chat as the latest generation shaping retail and, well, making us feel old.

The generation, roughly spanning those born between 2010 and 2024, doesn’t have much of its own money to spend quite yet. But we already know their impact on culture (who among us didn’t reluctantly Google what “6-7” meant last year?), and as they enter their teens, they’ve become “influencers in the household,” too, Melissa Gonzalez, principal and founder of retail consultancy MG2 Advisory and author of a new report on Gen Alpha’s impact on retail that surveyed 500 children between ages 8 and 14, told Retail Brew.

Gen Alpha has over $100 billion in spending power, which is nearly half of household spending, per an August report by DKC—and Mintel expects this spending power to balloon to $5.5 trillion by 2029.

Gen Alpha shares some similarities with their generational neighbors, Gen Z. They both prefer to “have a seat at the table” when it comes to brands, Gonzalez said, and enjoy in-person retail experiences. But while other generations turned to Google or even TikTok for information, Gen Alpha is adept with AI and the use of ChatGPT, and has grown up in the virtual universe of Roblox. At the same time, 73% prefer to shop in stores, per MG2—a stat that aligns with previous study from Numerator last fall.

“With the Alphas, there’s fluency in interacting, whether it’s digital, physical, all of it—they’re the most fluid generation with all of it,” Gonzalez said. She shared with Retail Brew how brands and retailers can engage with this increasingly influential generation.

Keep reading here.—EC

From The Crew

MARKETING

promotional image for exclusive Levis® x Starter team jackets

Levi Strauss & Co

While tennis and fashion have strengthened their union over the past few years, another strong frontier for retailers has been the Super Bowl.

From Thom Browne to Abercrombie & Fitch, the annual championship has invited collaborations from fashion brands across the board.

For Levi’s, however—which ran a week-long immersive pop-up titled “Home Turf” in San Francisco last week—the connection this year was deeper.

Keep reading here.—JS

RETAIL

Valentine's Day purchase

Ozgurcankaya/Getty Images

If the post-holiday blues and inclement weather were affecting your mood or your retail business, the combination of Valentine’s Day on Saturday and President’s Day the following Monday could offer a reprieve. The National Retail Federation is predicting consumers will spend a record $29.1 billion on Valentine’s Day, with gifts for platonic relationships such as friends and co-workers driving the uptick.

Here’s what else is going on in retail this week:

In industry events: The semiannual New York Fashion Week is kicking off on Friday. The event features more than 50 runway shows with dozens of brands on display, such as Ralph Lauren and Coach, both of which have reportedly defied the slowdown in luxury spending by focusing on more affordable options while competitors hiked prices. The show comes just weeks after luxury retailer Saks Global declared Chapter 11 bankruptcy and pulled out of its partnership with Amazon due to a lack of participation from brands.

Keep reading here.—AV

Together With StackAdapt

SWAPPING SKUS

Today’s top retail reads.

Grocer and closer: Former Walmart exec Greg Foran is set to become Kroger’s next CEO. (the Wall Street Journal)

Keep on Luckin: China’s Luckin Coffee chain is taking on Starbucks with new upscale stores. (CNBC)

Game plan: Why Raising Cane’s has a long tradition of dismissing employees early on Super Bowl Sunday. (Benzinga)

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