Local ShoppingGrove Collaborative doubles retail presence through CVS partnership

Grove Collaborative doubles retail presence through CVS partnership


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Dive Brief:

  • Adding another major retail partner to its lineup, Grove Collaborative has started selling its products at CVS, doubling its retail presence according to an announcement emailed to Retail Dive.
  • The brand is distributing its products in more than 2,000 CVS locations and on the pharmacy chain’s website, according to the announcement. Through the partnership, Grove Collaborative’s dish soaps, cleaner concentrates, detergent packs, hand soaps and other products will be available at CVS.
  • Following its launch in Target, Grove Collaborative was the No. 1 launch in the hand, dish and cleaners category last year. The company recently doubled its product assortment in Target locations and on the retailer’s website, per the email.

Dive Insight:

For Grove Collaborative, the partnership with CVS aims to make its products with sustainable packaging available to more shoppers. The company noted in its email that retail is a critical component of its omnichannel strategy, because it makes up 90% of purchases in the product categories in which Grove competes.

Grove Collaborative made its brick-and-mortar debut at Target last year. The brand launched its cleaning products in stores with educational displays explaining why consumers should use sustainable, plant-based products. In July, the brand further expanded its physical store footprint into Kohl’s, Meijer and Giant Eagle.

As it grew its roster of retail partners, the company has also been trying to raise brand awareness. In April, actress and entrepreneur Drew Barrymore became the company’s first global brand and sustainability advocate and invested in the brand. After initially appearing in the company’s Wish-cycling campaign, Barrymore appeared in another Grove Collaborative campaign with Sir Richard Branson to raise awareness about plastic waste. Branson said Virgin Red members in the U.S. could earn Virgin Points on their Grove purchases.

Though Grove Collaborative has enlisted celebrities and major retailers to reach more consumers, the company has faced challenges. The company reported Q1 net revenue declined 11% year over year to $90.5 million. The company also said it laid off 17% of its employees to cut operating expenses and focus on critical areas of its business. In Q2, the company saw its net revenue drop 12% from last year to $79.3 million.

Despite the revenue dip, Grove Collaborative CEO Stuart Landesberg said in the Q2 earnings statement that he was proud of the company’s “Wish-cycling” campaign with Barrymore and its entry into Target. Landesberg attributed the decline partly to consumers returning to their pre-pandemic shopping habits and the company’s inefficient advertising spending.

“As we look ahead, we see a clear path to sustainable, profitable growth despite near-term uncertainty in the macro environment. Change in the CPG industry is inevitable, and Grove is in pole position to lead that change,” Landesberg said in a statement. “Our disruptive and innovative brand has a tremendously loyal following, we are just beginning to bring our products to the retail channel where over 90% of purchases in our categories are made, and we are laser-focused on driving profitability.”



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