Hailey Bieber's Rhode sells for $1 billion.
Trying something new today.
Good afternoon everyone.
Hailey Bieber will sell Rhode to e.l.f. in a deal worth up to $1 billion. It’s hard to put into words how impressive that is: when she launched the brand three years ago, the New York Times ran an article with the headline “Dear Celebrities: Please Stop Churning Out Beauty Brands,” dismissing these brands as all hype and no substance. Last year, the brand generated $212 million in net sales from just 10 products, including hits like its Pocket Blush and Glazing Milk essence. This month, Rhode announced it will launch in all Sephora US, Canada and U.K. stores by the end of the year.
I wonder who’s next?
Aside from that, we’re testing a longer format today. Let me know what you think.
BUSINESS / GROCERS
Discount grocers are everywhere. Is that a bad thing?
These days, it’s impossible to escape the distinct yellow branding of Canada’s largest discount grocery chain: Loblaw-owned No Frills recently hit 300 locations nationwide, and according to the company’s recent outlook there are dozens more on the way.
I had a lot of big, complicated feelings about this so I spoke to Ben Ryder Howe, who penned an incredible article for the New York Times last year about how Costco, the world’s largest discount retailer, has changed the shopping experience. He said this reminds him of when major pharmacy chains started expanding in New York City in the early 2000s, wiping out a large number of local delis and convenience stores: “I think my personal view is that it's really destructive [to the community].”
Unlike Costco, Loblaw has designed the format of its No Frills stores to get customers in and out as quickly as possible. It’s not meant to be an enjoyable experience. The company’s new ultra-discount concept, No Name, aims to strip away even more frills.
There’s no sense in resisting the shift or blaming large grocers, Bruce Winder, a retail analyst, tells me, because businesses match the market: Thirty years ago, when there was a larger share of people living in the middle class, we had nicer grocery stores. He says social media plays a role. It’s created a “tremendous” strain on young people who are perpetually poor from trying to keep up with what they see online. “They’ve lost the simple things in life and spend a lot of money trying to live like a Kardashian.”
Shoppers are torn between two sides: they want to buy high-end groceries, but can’t really afford to do it. So when executives at Loblaw consider whether a community is better served by a Loblaw or a No Frills, the answer is increasingly… no frills it is.
COFFEE CHAT / CHLOE BOW
Women are more single today than at any point in history
As women grow wealthier, more educated, and embrace progressive ideas around what life should look like in and out of the home, some of them look to @chlobow to for guidance on how to challenge societal norms about relationships and marriage.
Chloe speaks openly with her audience about her decision to call off her engagement to live life intentionally single: “Now I don’t rely on anyone for my financial security or happiness,” says the voiceover to a video that has been viewed over 1.6 million times.
She sat down with Milk Bag to talk about the broader shift towards singlehood.
Thanks for making the time, Chloe. You were the first person I thought of speaking with about this topic...
My dad says I’m a little radical, and maybe I am. But every day I think about how happy I am to not be in a relationship. People ask me all the time if I’m afraid, like don’t you want to find that person? I’m like, I’ve had that love. And I was unhappy.
You’ve connected to thousands of women who seem to resonate with your experience. What are they telling you?
A lot of women find dating to be super unsatisfactory. They struggle to find loving, supportive, and safe partnerships.
What drives your decision to stay single?
Dating for me was never super positive. It’s exhausting to constantly wonder if you’re doing enough or if you’ll be chosen. And when you put so much time into something you kind of expect to get something back. So I’m left wondering, what is the reward for this? Is my reward to teach a man about respect, and empathy?
What do you think women want?
I think what women want from men is maybe what they are not capable of giving them. What I’m seeing is a male skills gap: men are not measuring up to a women’s emotional intelligence, or even her life skills and experience. So for women who are bringing so much to the table, these are not fulfilling interactions or experiences. I feel so much more empowered and supported by my platonic friendships.
How do women in relationships respond to your message?
Some don’t find it empowering at all, because it might cause them to reflect on uncomfortable parts of their life or a narrative they’ve never questioned. This is really the first time women have really been able to have this sort of choice.
Do you think there are any men out there worth dating?
*15 second pause* …I'm sure. There are never absolutes.
NEWS
Confirming a new train to Muskoka will look just like every other train.
It could be game over for Zellers. Hudson’s Bay has not yet found a buyer or investor to continue operating the brand. The company did find buyers for 28 of its commercial leases and intellectual property. After ending liquidation sales on Sunday, more than 8,300 employees, or 86% of its workforce, will be laid off.
Maybe you’re not unemployed, maybe you’re just a stay-at-home son.
This is a diabolical design choice by Lululemon. A new knit tote bag ($168) features an “L” design that looks strikingly similar to the Goyardine canvas.
Apple operating systems will now reflect the year. This is helpful thank you.
BDC is asking domestic investors to put $11.5 billion of “dry powder” to work. Canada jumped to sixth among a sample of OECD nations for its share of VC investment to GDP last year, but a pullback in foreign investment is expected.
Every Equifax report is so depressing. People are missing credit payments.
I really enjoyed Sean Silcoff’s feature about the future of BlackBerry. Sean co-wrote Losing the Signal, the book about the rise and fall of the company that was later turned into a movie starring Glenn Howerton. BlackBerry’s current focus is on its QNX division, which most notably supplies a operating systems for cars.
Nutbar and Jaybird have partnered on an Erewhon-style smoothie collab.
Bell Canada will built six data centres to power AI models and applications.
Could be time to look at bank stocks again. TD, BMO, and National topped profit expectations last quarter. Scotiabank did not. RBC reports tomorrow.
We’ll be taking water taxis to the Islands for the foreseeable future. In a new report, City of Toronto staff estimates the cost of a building a bridge would be at least $100 million. About 18,000 people visit the Islands daily on weekends and holidays during the summer. A tunnel and cable car are also on the table.
Loblaw said the prices for thousands of items are set to rise. Because tariffs. In a May inflation report, the company said things would have been even worse if not for recent government exemptions and the recent strength of the loonie.