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Harbin to acquire GNC; how Costco keeps members; retail sales grew 0.6% in August

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GMDC SmartBrief
GNC to be acquired by Chinese pharmaceutical company | Why Costco shoppers keep renewing their memberships | SpartanNash expands free COVID-19 testing
Created for |  Web Version
September 16, 2020
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Retail Updates
GNC to be acquired by Chinese pharmaceutical company
(Cindy Ord/Getty Images)
GNC Holdings has canceled a bankruptcy auction after no new suitors emerged and will instead proceed with a sale to China-based Harbin Pharmaceutical Group, which already owns a stake of around 40% in the vitamin retailer. Sen. Marco Rubio, R.-Fla., has raised concerns about the deal, saying it could give the Chinese government access to health data on US consumers.
Full Story: The Wall Street Journal (tiered subscription model) (9/14) 
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Charging consumers a fee to shop might seem counter-intuitive, but the membership model has been key to Costco's growth and success. About 90% of Costco members paid the $60 annual fee to renew their memberships last year, and the combination of low prices, value-added services and attractive inventory keep members coming back to stores even in the age of e-commerce.
Full Story: CNBC (9/15) 
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SpartanNash, which introduced free COVID-19 tests last month for workers and shoppers at five of its corporate-owned stores in Michigan, has now expanded the service to six more stores, including one in Minnesota and another in Indiana. The free screenings, which require an appointment and completion of a short survey, are conducted at SpartanNash's drive-thru pharmacies.
Full Story: Supermarket News (free registration) (9/15) 
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The Chicago-area towns of Carol Stream, Park Forest and Des Plaines will soon be getting new grocers as Jet Foods begins making an aggressive push into the area with a plan to offer discount prices and prepared meals for customer convenience. The company said hiring in Park Forest and Carol Stream should start within the next several weeks, and also unveiled plans for additional stores in Rockford and Harvey.
Full Story: Daily Herald (Arlington Heights, Ill.) (9/14) 
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Health & Well-being is more important than ever. Learn more.
General Merchandise and Health Beauty Wellness News
Ulta Beauty campaign explores "Where Dreams Begin"
(Ulta Beauty/YouTube)
McCann New York's "Where Dreams Begin" spot for Ulta Beauty is set to a version of "This Is Where Dreams Begin," performed by Esabalu, and features a diverse array of women and girls who, alone or with others, project a sense of confidence and hope. The ad ends with the copy "Welcome to the place where beauty lives" and is running across TV, social and digital.
Full Story: Muse by Clio (9/14) 
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Unilever's Dove Men+Care brand and the National Basketball Players Association are launching the Commit to C.A.R.E Now initiative. The partnership will advocate for an end to racial profiling by law enforcement, changes in the way Black men are portrayed in media and increased voter registration.
Full Story: HAPPI online (9/15) 
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Companies help solve the problem of inequality by recruiting a more diverse workforce, especially for the roles responsible for advertising, said Marc Pritchard, Procter & Gamble's chief brand officer. Marketers need to increase multicultural outreach with campaigns that challenge bias and include more people of color, he said.
Full Story: Adweek (tiered subscription model) (9/14) 
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Head & Shoulders brings NFL stars back in 100% campaign
(Head & Shoulders/YouTube)
Head & Shoulders is reuniting NFL stars Patrick Mahomes and Troy Polamalu for an extension of its "Take It Up To 100" campaign. Pro Football Hall of Famer Polamalu and Kansas City Chief quarterback Mahomes challenge each other in a 30-second ad over doing tasks to an absurd extreme, such as catching "100% of kids who fall off their bikes."
Full Story: Drug Store News (9/14) 
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Innovation and Retail Technology
SmartGift is a startup that lets users shop for gifts from brand partners and send recipients virtual versions of the presents, allowing them to either accept the item or exchange it without having to do an actual return. Partners using the service include 1-800-Flowers, Theory, Tumi and Movado.
Full Story: Forbes (9/13) 
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Industry and Consumer trends
Report: Retail sales continued to rebound in Aug.
(Spencer Platt/Getty Images)
US retail sales grew 0.6% in August from the previous month, marking the fourth consecutive month of growth, according to the Commerce Department. Overall growth slowed from 1.2% in July as some consumers' additional unemployment benefits ended, but sales of clothing, furniture and electronics rose as families prepared for a back-to-school season that for many meant remote learning.
Full Story: Business Insider (9/16),  The Wall Street Journal (tiered subscription model) (9/16) 
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GMDC|Retail Tomorrow Announces Programming for Virtual GM20 and SS20 Events
GMDC|Retail Tomorrow Announces Programming for Virtual GM20 and SS20 Events
GMDC|Retail Tomorrow has announced programming for its virtual General Merchandise Conference and Selfcare Summit. Over a three-week period in October, members will benefit from networking meetings; engage in live and recorded learning track sessions focused on general merchandise, selfcare and Retail Tomorrow trends; and enjoy the Preview Box program that delivers participating suppliers' products into the hands of retail and wholesale buyers prior to the events. Read more.

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