Retail Brew // Morning Brew // Update

May 19, 2026

Hey there. Turns out video didn’t kill the radio star—it killed your cost center. The smartest retailers are turning play buttons into purchase buttons (no Hollywood budget required). Join us May 27 to see how video graduates from “nice content” to “actual revenue stream.”

In today’s edition:

—Andrew Adam Newman, Alex Vuocolo, Jeena Sharma

E-COMMERCE

I’ll sleep when I’m DedCool

A model wearing a Brooklinen robe holds the DedCool pillow fragrance.

Brooklinen/DedCool

DTC bedding brand Brooklinen was founded in 2014 with the promise of offering hotel-quality sateen sheets that you could afford without selling a kidney. The brand soon began offering sheets in other materials, too, including percale and linen, and crossed the bathroom threshold in 2019 with a line of bath towels and robes.

Those robes have—in every sense—taken center stage recently, thanks to some strategic partnerships. As “official robe partner” of Saturday Night Live, Brooklinen’s robes are worn by hosts and musical guests in the makeup chair. Celebs including Ariana Grande and Nikki Glaser have been photographed wearing its “SNL”-embroidered Super-Plush Robe. Actor Alexander Skarsgård apparently took such a liking to his when he hosted SNL in January that he wore the robe onstage both times he introduced the episode’s musical guest, Cardi B.

The robes were worn by KPop Demon Hunters musicians Audrey Nuna, Rei Ami, and Ejae in a February GRWM—that’s “get ready with me,” boomer—Vogue video, and recently by a bevvy of celebrities as they gussied up for the Met Gala.

Now Brooklinen is highlighting its robes in a collab with scent brand DedCool. They’re introducing a co-branded scent to spritz on pillows and bathrobes called Sleep Mode. On their e-commerce sites, both brands are selling a limited edition of the Super-Plush Robe and a 1-ounce bottle of the Sleep Mode scent for $150.

Keep reading here.—AAN

Sponsored By IBM

The AI stress test

As retailers scale AI across their business, customer experience is often where inconsistencies surface first.

Fragmented data, isolated agents, and limited coordination can undermine even well‑intentioned CX efforts. This guide explores why CX becomes a stress point at AI scale and what retail leaders can address to deliver consistency across the journey.

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STORES

Golden opportunity

Jetcityimage/Getty Images

Large-scale closings in the US drugstore industry have created a fresh supply of cheap properties, and discount chains such as Dollar Tree, Five Below, and Burlington are buying up leases at auction to fuel their growth plans, according to data from A&G Real Estate Partners.

“Many retailers, especially off-price and value-oriented operators, have made lease auctions and property sales a key component of their growth strategy,” A&G Co-President Emilio Amendola said in a statement. “We’re seeing disciplined operators turn other companies’ portfolio changes into strategic expansion opportunities as they seek high-traffic locations.”

In 2025, A&G handled a campaign for Rite Aid that attracted more than 1,700 interested parties and generated $95 million in recoveries from the likes of Ross, Burlington, and Ace Hardware. It also sold 50 former Rite Aid properties outright to specialty chains such as Barnes & Noble, Hobby Lobby, and Michaels. The interest from discounters came as rival pharmacy chains Walgreens and CVS also took over more than 1,000 Rite Aid locations.

Keep reading here.—AV

TECH

AI spy

Thai Liang Lim/Getty Images

Physical stores aren’t just shopping destinations anymore, but are actually transforming into fulfillment hubs and support systems for both digital and physical commerce. Or at least that’s what Collier’s new report on how AI is redefining retail and real estate in 2026 found.

Per the report, about 50% of consumers looked to AI for product recommendations while 75% said AI “significantly influences” their shopping decisions.

Moreover, the share of consumers using AI agents is expected to surge from 19% today to 46% by the end of 2026.

Keep reading here.—JS

Sponsored By Lebesgue

First time-flation. Some of your new customers may not be so new. According to Lebesgue, a significant number of “new customers” may be repeat buyers that retargeting efforts captured. Lebesgue Pixel can track customer journeys more accurately, helping brands spot the difference, reduce wasted acquisition spend, and make smarter growth decisions. Learn more here.

SWAPPING SKUS

Today’s top retail reads.

Some improvement: The Home Depot’s profits are falling, but the retailer still did better than expected in Q1 given all the economic headwinds. (the Associated Press)

No sandals: Investors are losing faith that Birkenstock will realize its ambitions of transforming from a legacy sandal maker into a luxury giant. (Reuters)

Standing still: How the economy and Americans cutting back on alcohol is dealing a blow to the Kentucky bourbon industry. (the Wall Street Journal)

So long, silos: If the customer experience journey spans retail, why is your AI stuck in silos? See how you can siloed AI agents into seamless customer journeys with three simple actions. Learn more.*

^{*A message from our sponsor.}

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