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CPGs fight declining volumes.

It’s Monday, and it’s starting to smell a lot like Easter. We’re referring, of course, to the new collab between Bath & Body Works and Peeps. Bath & Body Works has released a collection of Peeps-inspired body care and home care products with what the retailer describes as a “marshmallow gourmand fragrance.” The fragrance is called, naturally, Peepin’ It Real.

In today’s edition:

—Erin Cabrey, Alex Vuocolo

SUPPLY CHAIN

General Mills Cheerios cereal boxes on grocery store shelf

Justin Sullivan/Getty Images

Many CPGs started 2025 aware that they couldn’t keep banking on price hikes to achieve revenue growth. Now, after a year of tariff-related uncertainty and declining volumes, even in non-discretionary categories, CPGs are realizing they need to quickly figure out a way to get alienated shoppers to buy more of their products.

At this year’s CAGNY conference, and on recent earnings calls, CPGs have harped on their aim to drive volume growth as consumers have made the strain of price increases clear with smaller basket sizes and waning loyalty.

PepsiCo is a clear leader in this effort, last month slashing prices for its popular snacks like Lay’s and Doritos, which it said was a response to consumers’ financial pressures. The move, CEO Ramon LaGuarta said at CAGNY last month, comes as the company is feeling “friction” from low- and middle-income shoppers and wants to “reignite the volume of the category” and increase household penetration.

So far, it’s paying off.

“The consumer clearly is telling us it was the right thing to do,” LaGuarta said.

Other CPGs have similar goals: Kraft Heinz and Mondelez were among those that spoke of a need to crank up their volumes at CAGNY, too. It’s a necessary change for CPGs, John Mercer, head of global research at Coresight Research, told Retail Brew.

“After multiple years of really underwhelming unit growth overall and really quite aggressive price increases, the CPGs need to fight back for unit growth,” he said.

Keep reading here.—EC

Presented By Bloomreach

STORES

Walmart's digital shelf labels

Photo courtesy of Walmart

Digital shelf labels (DSL) are coming to a Walmart near you, as a debate rages over whether the technology will allow retailers and grocers to drive up prices.

The retail giant is expanding the tech to its entire US footprint this year, building on the 2,300 locations that already use the promising, yet controversial technology.

DSLs will allow the company to manage prices through a centralized system, which it says is improving the accuracy of pricing and making sure what’s on shelves is aligned with what customers are paying at checkout. In the past, adjusting prices could take days. Now it takes hours, which frees up time for associates to better serve customers, according to Walmart.

Keep reading here.—AV

RETAIL

Spring shopping

Tatsiana Volkava/Getty Images

Spring is not quite sprung, but seasonal sales are kicking off this week with Amazon Spring Deal Days running from March 10–16. During that period, the e-commerce giant will offer discounts on a range of products and categories from everyday essentials to home and kitchen. The Home Depot is also rolling out some spring deals this month, and while Walmart has yet to announce a spring sales event, last year it held one in the last week of March.

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

In earnings: There is another batch of retail earnings coming this week, and it’s a nice cross section of the industry spanning discounters and department stores to CPG brands and sporting goods. Here’s the rundown: The convenience store chain Casey’s is reporting on Monday; Kohl’s on Tuesday; Campbell’s on Wednesday; and then Ulta Beauty, Dick’s Sporting Goods, Ollie’s Bargain Outlet, and Dollar General on Thursday.

Keep reading here.—AV

Together With PwC

SWAPPING SKUS

Today’s top retail reads.

Rain check: A plan for refunding more than $166 billion in tariffs that were struck down by the Supreme Court is expected in 45 days, but the refunds could be tied up in the courts for years. (CNN)

Mall aboard: How Gen Z is rediscovering malls. (the Wall Street Journal)

Club scene: BJ’s Wholesale is opening new stores aggressively to take on Costco and Sam’s Club. (The Street)

Greener grass: See what better email looks like in Bloomreach’s latest guide. It lays out a concrete framework for using email to drive revenue and includes real-world examples to back it up. Check it out.*

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