When the first 400-square-foot Taco Bell opened in 1962, the concept of a two-story, four-lane drive-thru would’ve likely seemed like a fantasy. A three-part musical on TikTok celebrating its Mexican Pizza, probably even more so. But these were just a few of several major moves the chain made in its 60th anniversary year—which all came under the leadership of Mark King, who took the helm in 2019 and has led Taco Bell through a tricky few years.

Despite issues across supply chain, labor, and inflation, “we’re positioned better today than we were three years ago,” he told us. Speaking with Retail Brew, King broke down Taco Bell’s biggest moves of the year and previewed what’s to come in 2023.

This is the first of a two-part interview. It has been edited and condensed for clarity.

It’s been a big year for Taco Bell. What do you feel is the main move or accomplishment that stands out to you? I guess if you were going to just pick one, it was the relaunch of the Mexican Pizza, for a lot of reasons. It was a product that had been around for 30+ years, that had kind of a cult-like following, but certainly wasn’t a main menu item. And because of the genius way the marketing team relaunched it all on TikTok, with Doja Cat and Dolly Parton, with the musical, and all of the things that made Mexican Pizza come to life, I think it was just a great example of what we call “restless creativity”—take something and do it in a completely new way and create a new life for it. And it not only had big sales impact, but I think it had amazing brand impact.

Keep reading here.—EC

E-retailer Overstock has had quite the year. At the end of Q2, it completed a years-long shift away from general merchandise, transitioning to its new form as a home goods-only retailer. In Q3, Overstock was profitable for its 10th consecutive quarter, despite reporting a 30% revenue decline.

We sat down with CEO Jonathan Johnson this month to recap 2022 for Overstock and the broader retail industry. Johnson, who has spent 20 years at Overstock, in roles ranging from general counsel to president, said the rebound from pandemic-era challenges posed strong headwinds for the home furnishings industry this year.

“There was a lot of inventory, and we saw as early as Q2 and continuing through Q3 and today, retailers being highly promotional,” Johnson explained. “There was this pent-up demand for experiences, for travel…combine a glut of inventory and a lessening of demand—it was not a good place to be,” he told Retail Brew.

Overstock’s asset-light business model (the company doesn’t own any inventory) has helped it weather a stormy economic climate, and escape the trend of liquidation its competitors have fallen victim to, Johnson said.

But despite the challenges, Johnson is optimistic about the retail world as we round out 2022, and shared the key themes he’s taking with him into the new year:

Supply chains + inventory: Moving inventory from abroad to the US is cheaper and easier than this time last year, but getting products to a customer’s door is still an expensive undertaking, due in part to high gas prices, Johnson explained.

Keep reading here.—MA

“New York Gov. Kathy Hochul signed legislation yesterday that bans the sale of dogs, cats, and rabbits in physical pet stores in the state. In doing so, New York joins California, Illinois, Maryland, and a handful of other states trying to stamp out unsafe and inhumane pet breeders,” writes Morning Brew’s Matty Merritt:

There are roughly 80 pet stores in the state, and shop owners argued the ban would put them out of business. To give pet stores some time to figure out their next move, Hochul agreed to push the implementation of the ban to December 2024.

Read the whole story here on Morning Brew.

Today’s top retail reads.

Meeting of the minds: Fashion and beauty are making appearances at COP15, the United Nations’s biodiversity conference. L’Occitane and Kering committed 140 million euros ($149 million) to a climate fund, while LVMH is helping develop a framework for companies to measure their environmental footprint. (Vogue Business)

Above the influence: Fashion retailer Revolve attributes its success to an influencer marketing strategy that involves sponsored festivals and influencer trips. But some influencers are criticizing the company’s “gifting” programs. (Insider)

A new leaf: Inside Amazon’s antitrust settlement with the European Union, which will reportedly require the platform to “give makers of rival products equal access to valuable real estate on its website.” (the New York Times)

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

1. A Brooklyn art collective introduced a massive Kellogg’s Froot Loop that weighs half a pound and is worth nearly a thousand calories.
2. In-N-Out is teaming up with cult-favorite ice cream brand Salt & Straw on a line of festive milkshake flavors including Peppermint Cocoa and Gingerbread Cookie Dough.
3. Snickers is entering the fitness world: A candy bar before hitting the gym is A-OK with the new high-protein candy bar from Mars.
4. A seasonal edition of Spam includes cinnamon, cloves, nutmeg, ginger, and allspice, in addition to the salt and pork we all know and love.

Keep reading for the answer.

Catch up on the Retail Brew stories you may have missed.

• This holiday season, retail is looking to the future
• Some of the strangest food (and food-related) products of 2022
• What we learned about sustainability in fashion in 2022