Rundown: Nordstrom may go private, Unilever spins off ice cream biz & Shein's new revenue stream

03/23/24 • 29 min

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This week’s Modern Retail Rundown includes a check-in on Nordstrom, with news of the founding family allegedly looking to take the department store private. We also delve into Unilever's ice cream division -- which includes the Ben & Jerry's and Magnum brands -- which may be spun off into a separate company. Lastly, we discuss reports of Shein pivoting into supply chain services.

Previous Episode

Ridge CEO Sean Frank on trying to build a $1B accessory brand

Accessory brand Ridge, best known for its wallets, is getting closer and closer to a $1 billion exit.

CEO Sean Frank has been saying this for years but thinks the option may come sooner rather than later. "If I want to sell for $1 billion, you need $100 million in adjusted EBITA, or we need roughly $50 million in net income," he said. "I think next year, we'll probably get to $50 million in net income."

Frank joined the Modern Retail Podcast and spoke about the company's growth as well as the state of consumer brands. Frank thinks Ridge's trajectory has been different from that of many other direct-to-consumer brands. For one, it never took on venture capital and instead grew every year while remaining profitable. What's more, while Ridge does sell via its website, it's long been available in other channels like Amazon, Nordstrom and Best Buy.

"We've never touted a DTC flag. We were never like, we're not going to sell on Amazon," he said.

What's more, Ridge -- which just added YouTuber Marques Brownlee as a board member and chief creative partner -- figured out early on that it couldn't just rely on a hero product as a means to scale. "I don't want to pick on anybody, but if you look at, like, an Away -- they still sell luggage, and they've sold luggage for 15 years at this point," he said. "It's more or less the same piece of luggage." Conversely, Ridge has expanded into new products like phone cases and men's wedding bands.

"We have these cohorts that are like, 'Yeah, I love the product, it's great. But I don't need another wallet.' There's nothing we can do to get them to buy another wallet," he said. "So we were like, OK, let's figure out what other people want."

With all of this, Frank is trying to continue to grow the company while looking at future prospects. While Ridge may reach its goal for a billion-dollar valuation, he's still waiting and seeing.

"It's just if we want to sell or not, right?" he said. "Does it make sense for the brand with what's going on?"

Next Episode

How Sunday is trying to shake up the yard and garden industry

Sunday wants to be the DTC brand that powers everyone's backyard.

The company first launched in 2019 with lawn care products, but has since expanded to pest control and garden products. While it's available in major retailers like Costco, Walmart, Lowe's and Target, Sunday's business is still 75% direct-to-consumer.

"To be the outdoor home platform that we want to be, we really need to be able to be across these categories," founder and CEO Coulter Lewis said on the Modern Retail Podcast.

He joined and spoke about how the company has grown over the last five years -- as well as what its plans are for the future.

One way Sunday is able to keep such a large DTC base is by tailoring its online experience. For example, it has people send in soil samples, which then creates a report on the types of products they need for their outdoor spaces.

"We actually now have the largest soil database ever created," Lewis said.

And that type of program can't be replicated in a store like Walmart. And even the store experience itself isn't ideal -- especially the garden sections filled with 15-pound sacks of dirt and fertilizer where Sunday is usually sold. "When you walk in that part of the store, you smell it from 20 feet away -- it is legacy brands, legacy branding and incredibly confusing and intimidating."

With this, Sunday is trying to have its customers opt for a newer brand that looks different than the previous industry leaders. And, have them purchase differently than before. While the company has been growing every year, it still has ambitions to reach new heights.

"We're still brand new," Lewis said. "Our category, there's been nothing new in half a century -- fifty years of the same. And so, we're growing every year, expanding quickly."

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