Beauty and chocolate keep growing, despite inflation

Author

Stephen Babcock
February 03, 2023

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In the fourth quarter of 2022, Amazon executives said shoppers pulled back on discretionary items and spent more on everyday essentials. That led to a decline in ecommerce sales. Still, third-party seller services and advertising continue to boom for the company. CEO Andy Jassy joined the earnings call to discuss the dynamics behind the company’s cost-cutting in 2022.

Owning fulfillment is a bigger priority for retailers at a time when customers are expecting a variety of omnichannel options across pickup and delivery. Sitting between custom software and SaaS, Nextuple’s software employs microservices to give retailers the control that enables them to adjust their operations, and compete with the large commerce companies that built logistics networks.

Sales at e.l.f. Beauty grew 49% in the holiday quarter. Key drivers included viral marketing such as a TikTok collaboration with Meghan Trainor and The Weather Channel, as well as increased retention thanks to new signups for the brand's loyalty program. The results underscore the continuing strength of beauty, despite current macro trends.

The labor market is a major indicator of consumer demand, and it shows no signs of cooling off. In fact, the December jobs report shows it is heating up. The 517,000 jobs added were far above the 188,000 expected, and represent a big jump over November. –Yahoo

Sweets and salty snacks aren’t essential, but that doesn’t mean consumers want to give them up during times of economic pullblack. For many, Hershey CEO Michele Buck said chocolate is tied to “emotional wellness.” Hershey is a primary beneficiary of this trend, as it posted 16% sales growth in 2022. The Reese's parent is looking to double down with an increase in advertising spend during 2023.

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