David Gravet

What Retailers and Brands Need to Do to Address Challenges in the Footwear Market Interesting read ..

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Here are some interesting stories from the world of retail for Monday, July 15: 🧥 Burberry has replaced its CEO, Jonathan Akeroyd, with Joshua Schulman as it grapples with falling sales. The brand also expects earnings to suffer as a luxury industry downturn deepens. 📦 This year’s Prime Day comes as Amazon's investors already have a big cause to celebrate. Revived sales growth and an even more robust improvement to the bottom line have driven steady gains in the share price. 🚫 There were 346 companies that filed to either liquidate or re-organize through bankruptcy in the first six months of 2024. The majority of businesses that have gone belly up are in the consumer discretionary sector. 👗 Experts say SHEIN’s potential London listing puts the UK's Financial Conduct Authority under intense scrutiny as the Chinese firm has faced allegations of forced labour and questions over its environmental standards. 🔥 Gen Z heat seekers are leading a hot sauce boom. A majority of younger consumers count themselves as fans of the spicy condiments as food and beverage products embrace the heat. 🗽 Demand for prime retail space in Manhattan showed signs of slowing this spring, according to a recent CBRE report. The second quarter of 2024 saw a 9% decrease in leasing activity. 🖥️ Over the last few weeks, Dell, HP, Samsung, Lenovo and other PC makers released nearly a dozen new Windows laptops, all packing AI processors and features. 🌭 New York City’s minimum-wage hike has boosted pay for food-delivery workers who have managed to hang onto their jobs, but thousands have lost work. 👨🏻‍⚖️ A New York federal judge has ordered Amazon to comply with a subpoena from a US civil rights agency investigating claims that the online retailer discriminated against pregnant warehouse workers. 🚛  Sales of Kei trucks in the US have tripled in the last five years. Measuring about half the length of a Ford F-150, Kei trucks look almost like toys in comparison to a standard pickup truck. 👮🏽The UK government is expected to change the law to make assaulting retail workers a crime, with assaulting, threatening or abusing a retail worker set to be made a standalone statutory offense. 🚁 In a pioneering move, drones are now being used to transport Wushan crispy plums from remote farms to the local airport in Chongqing, significantly reducing delivery times to within 24 hours. 🧴 Haircare brand Olaplex hs named Katie Catherine Dunleavy as chief financial officer and operating chief, and Katie Gohman as chief marketing officer. #retail #retailnews #economy #DailyRetailNews

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The Saudi Arabian fashion sector is on the brink of a revolution, unlocking unprecedented opportunities for domestic brands. - The sector is expected to see a staggering 48% cumulative growth by 2025. 📈 - Saudi Arabia is emerging as a leading hub for venture capital investment in the MENA region, fueling entrepreneurial innovation. 💼 - Success stories like Princess Deemah bint Mansour bin Saud and Mohammed Khoja are paving the way for Saudi fashion to captivate a global audience. 🌍 - Support from key organizations like Monshaat and the Fashion Commission is instrumental in spurring growth and creativity in the sector. 🤝 This burgeoning growth not only showcases the vibrant potential of Saudi fashion on the international stage but also highlights the strategic foresight of its leadership in nurturing a flourishing entrepreneurial ecosystem. What do you think is the key factor behind the success of emerging fashion entrepreneurs in Saudi Arabia? Let's discuss! #entrepreneurship #venturecapital #fashionindustry #saudifashion

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In a world dominated by Nike and adidas, this company's revenue grew from $3 million $1 billion in 10 years. (Business Insider) Here’s all you should know about this fastest growing shoe brand. Let me introduce you to HOKA—a brand that has quietly but explosively made its mark in the footwear industry. 🔺The Beginning Hoka was founded in 2009 by French trail runners Nicolas Mermoud and Jean-Luc Diard. Their mission? To create shoes that made running downhill faster and more comfortable. With oversized, cushioned soles, Hoka shoes stood out immediately, but this uniqueness was met with skepticism. 🔺A Major Turnaround In 2013, Deckers Brands, known for Ugg and Teva, acquired Hoka. This was a game-changer. With solid financial backing, Hoka expanded its product line and market reach. What started as a niche product for trail runners began to catch on with road runners and casual wearers alike. 🔺The Challenges But the journey wasn't without its bumps. Initially, Hoka struggled with brand recognition outside the running community. Many traditional sports retailers were hesitant to stock their products due to their unconventional design. Rapid expansion also led to production challenges, including maintaining consistent quality. So how did Hoka turn things around? 1. Strategic Partnerships: By partnering with well-known athletes and sponsoring major running events, Hoka enhanced its visibility and credibility. 2. Innovative Marketing: Leveraging social media and influencer marketing, they reached a broader audience. Campaigns focused on the unique benefits such as enhanced cushioning and injury prevention. 3. Product Diversification: Expanding their product line to include hiking boots and casual footwear allowed Hoka to appeal to a wider audience. 🔺The Growth Sales Growth: Hoka’s revenue growth showed a CAGR of over 40%​ (Statista)​. 👉 In 2023 alone, Hoka opened several new stores in key markets, including Hong Kong and Tokyo​. 👉 The Hoka Cielo X1, launched in 2024, is hailed as one of the best running shoes for both performance and comfort​ (Arrow McLaren IndyCar)​. Hoka’s rise is due to the power of innovation and strategic growth. Here are some lessons we can all learn: → Collaborations can significantly boost brand credibility and recognition. →Creating unique products with clear benefits can set you apart in a crowded market. →Effective use of social media and influencer marketing can build a strong, engaged community. → Expanding your product line can help you reach a broader audience, fueling further growth. Hoka’s journey from a niche brand to a market leader shows that with the right mix of innovation, strategy, and perseverance, even the underdog can rise to the top. #brands #shoes #success #strategy #fashion

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A good and more or less accurate analysis of the current luxury sector.

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Here are some interesting stories from the world of retail for Thursday, April 18: 🚫 The Federal Trade Commission is preparing to sue to block a luxury fashion mega merger, Tapestry’s $8.5 billion takeover of Capri Holdings, two people with knowledge of the matter said. 👕 Esprit shares rose 24% after the Hong Kong-listed fashion retailer said it had signed a nonbinding deal with an unnamed investor to potentially acquire a stake in the company and help restructure its European businesses. 🛒 Amazon is going to offer third-party retailers the opportunity to use Dash Cart. A spokesman said the Just Walk Out remains a vital checkout technology for both Amazon and third-party retailers, especially in small-format stores. 💰 JCPenney on Wednesday launched a new loyalty program that could deliver half a billion dollars to its consumers. The free-to-join program guarantees $20 in CashPass rewards, with a $10 reward earned after each $200 of spending. 🧾 One Walmart in Missouri is ditching self-checkout kiosks, bringing employees back to work the register. The store in Shrewsbury, St. Louis, has begun converting the self-checkout lanes to traditional checkout lanes. 📦 Amazon staff went undercover on Walmart, eBay and other marketplaces as a third-party seller called ‘Big River.’ The mission: to scoop up information on pricing, logistics and other business practices. 🧶 Etsy has long marketed itself as a go-to destination for handmade and personalized goods. But some sellers say they’ve felt crowded out by accounts selling items in bulk, dropshipping products or offering items at low price points. 👓 Online prescription glasses company Eyebuydirect is venturing into physical retail. The company is opening a 140-square-foot kiosk in California. This marks the first official brick-and-mortar location for Eyebuydirect. 🥫 Hy-Vee, Inc. announced Wednesday that it is acquiring Strack & Van Til, a 22-store grocery chain in northwest Indiana. The companies did not disclose the terms of the deal. 🍋 A wave of branded fruits and vegetables are landing on e-commerce sites and in grocery stores across the country, using snazzy fonts and bright colors that promote their provenance and sustainable credentials. 📱 TikTok Shop is second only to Amazon in a key measure of customer loyalty: around 27% of TikTok shoppers came back to make another purchase after five months of their first buy. 🦞 Seafood restaurant chain Red Lobster is mulling a Chapter 11 bankruptcy filing as it looks to restructure its debt. The dining chain is considering shedding some long-term contracts and renegotiate a swath of leases. 🚚 Since the collapse of the Key Bridge, other East Coast ports have absorbed the cargo previously handled in Baltimore, but some parts of the supply chain like trucking are struggling. #retail #retailnews #economy #DailyRetailNews

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Louis Vuitton’s recent moves on the social media platform Little Red Book (Xiaohongshu) highlight two key trends that the luxury eCommerce ecosystem is battling with. Vertical Integration 🔻Louis Vuitton during their Voyager shows this April gave the mass market consumer a chance to rewatch the show, which also broke the RED livestream record with 470k unique viewers. 🔻Alongside the livestream, the brand also launched a pop-up mini program on RED, driving direct conversion from the livestream into commerce through a limited portfolio of items from the show. 🔻This itself is by no means revolutionary. In fact, they ran a livestream on RED in 2020, which was met with a much more muted response, but it is the latest in a string of interesting moves by the brand to flesh out its omnichannel digital ecosystem – mini-program on JD.COM, mini-program on Douyin (Tik Tok), now a pop-up mini-program on RED. 🔻These channels serve as a combination of direct connection to in-platform marketing (Douyin and RED), commerce generation (JD), as well as the drive toward the next trend. Private Domain Traffic 🔒There is a tension between luxury brands and eCommerce platforms – between a democratized experience and a tailored experience. 🔒Tmall was the first pond for brands to dip their toes in to expand eCommerce coverage with access to huge audiences and incremental revenues, the platform offered a (using slightly exaggerating wording) white-labelled brand experience to access these new consumers (some level of branding is of course still available). 🔒Now different models are being offered by platforms looking to attract brands to their ecosystems, conceding some ground when it comes to standardized experiences. 🔒In an overblown simplification, platforms offer brands a virtual billboard, exposing the platform’s audiences to a sign that points directly to the private domain of the brand. 🔒Depending on the platform this private domain can be a pseudo-one, looking, to all intents and purposes the same, but behaving slightly differently behind the scenes (different API integrations, data ownership, traffic management abilities), while others directly link to the WeChat store. 🔒Louis Vuitton’s moves appear to be focused on two desires – a consistent LV experience regardless of channel and ensuring all roads lead to WeChat (and WeCom for CRM). Questions for the future? ➡️Will LVMH’s big fashion brands make it onto TMall and in what capacity? Likely the group will focus on driving toward private domain, but the platform is unlikely to concede to this entirely. ➡️At what point will all brands demand integration into their private domain? With more platforms building their ecommerce capabilities they may look to gain brand market share by offering this, in turn putting pressure on other players to follow suit.

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The Luxury Conundrum: Redefining High-End Retail in China China's luxury goods market is undergoing a significant transformation. With middle-class consumers tightening their belts, high-end brands are slashing prices, offering discounts up to 50%. This shift highlights changes in consumer behavior and economic conditions. During the pandemic, local luxury sales soared as travel restrictions kept shoppers at home. Brands like Versace and Burberry thrived on e-commerce platforms. However, in 2024, economic slowdowns and low consumer confidence have led to overstocked inventories and aggressive discounting. Top-tier brands like Louis Vuitton and Hermès remain resilient, while mid-tier brands struggle. E-commerce, once a boon, now fuels the discount frenzy, risking brand equity. Heavy discounts can tarnish brand image, leading to a phenomenon known as "luxury shame." As economic uncertainties persist, luxury brands must balance clearing inventory with maintaining exclusivity to stay relevant. https://lnkd.in/gY_uagu7 #LuxuryGoods #ChinaMarket #ConsumerTrends #Ecommerce #LuxuryBrands #EconomicShift #RetailTrends #MiddleClass #BrandEquity #LuxuryDiscounts #MarketInsights

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Luxury Redefined: Métier In a world of fast fashion, Métier is rewriting the rules of luxury retail. Founded in 2017 by Melissa Morris, this brand is a masterclass in building a luxury accessories brand. Here's why: Quality First 🏆 • 3 years of meticulous product design • Partnered with Italian factories for durability testing • Customized leathers and suedes for optimal feel and function Form Meets Function 💼 • Interiors as important as exteriors • Designed for the modern, on-the-go customer • Travel-inspired, from everyday journeys to global adventures "Quiet Luxury" Approach 🤫 • No flashy logos or over-the-top marketing • Organic brand discovery by discerning customers Direct-to-Consumer Focus 📈 • 85% of business is DTC • Carefully chosen retail partnerships focused on local or regional boutiques vs large department stores ( Selfridges being the single exception) Strategic Collaborations 🤝 • Westman Atelier x Métier for luxury cosmetic travel cases • Partnership with Yolanda Edwards from Yolo Journal Sustainable Growth Model 🌱 • Investment pieces meant to last and be collected • Positioned for customer loyalty in a competitive market Expansion Plans 🗺️ • Raised funding in 2019 • Plans for 2-3 US locations What other elements are important in building a luxury brand? Share your thoughts below! #LuxuryRetail #BrandStrategy #RetailInsights

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Chinese consumer demand is like electricity – it finds the path of least resistance and finds it quickly. This demand has shifted rapidly and using an incredibly simple (and electronically useless) circuit diagram we can visualize this: 💡During COVID the domestic Chinese market was able to saturate consumer demand. Brands poured investment in to build their muscles through eCommerce, footprint expansion, and media spend. 💡The resilient, early-COVID economy fueled the battery of consumer demand, the consumer resistance did not matter as the demand only had one circuit to flow through – or did it? 💡The development of the grey market during COVID created another path for demand to travel, and the resistance to the channel has been decreasing. 💡A combination of factors including increased professionalization and platformization, coupled with a lack of global wholesale excellence from brands in terms of managing pricing made this path more and more attractive to consumers. Now, the Travel Switch returns to being on. 💡Travel has surpassed pre-COVID levels (in Asia) and the relative resistance in this channel has been driven down significantly by factors such as optimizations of the Chinese consumer experience in foreign markets, favorable currency fluctuations driving down relative price points, and the ease of obtaining tax refunds at point of purchase (with many others thrown in to the mix too). 💡With multiple routes available for demand to flow, it all becomes about the relative resistance of each path, and judging Chinese consumer demand by only looking at the Domestic route, likely leads to the conclusion that demand is drying up, when in fact it’s just taking a path with less resistance. 💡This may not be a bad thing – if you earn more margin from selling a bag in Japan than in China, revenues and net profitability can improve. Looking at Hermes’ performance in Japan vs Rest of Asia highlights this. 💡But with the grey market channel also in play, selling items at wholesale margins can severely limit profitability and undermine investments in the domestic market as well as foreign markets. 💡Alongside this whole picture is the question of whether consumer spending power has decreased? We have certainly seen this as an overall trend as the economy moves into a period of uncertainty and consumers tighten their belts. So what must brands do? ✔️Reevaluate cost structures in China. ✔️An understanding that the point of purchase and the point of influence may be occurring in very different places should lead to shifts in budgets in marketing, retail, and operations. Each brand will be different, and, in the end, it takes a global, top-down effort to ensure the current of Chinese consumer demand keeps flowing. #China #Luxury #business

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Not even mighty Nike can run alone. PUMA Group, adidas, and JD Sports Fashion shares fell 2.6%, 0.7%, and 5.4% respectively, on Friday after Nike warned that sales for fiscal 2025 are expected to fall, lagging the industry. Nike shares were down 20%, which was the worst day for Nike on record. The dramatic fall dragged down the Dow and S&P and caused collateral damage to the sector. Nike said it expects revenue to be down in the mid-single digits for the year ending May 2025, blaming uneven consumer trends in the European, Middle East and Africa region, and planned declines of classic footwear franchises given fourth-quarter trends. The gloomy outlook follows a guidance miss for the fiscal fourth quarter. The group saw sales of its lifestyle products—goods perceived by consumers as an expression of style, way of life, and social status—decline amid a subdued economic environment and weakness in China. Nike executives acknowledge they lost ground in the critical running category and say they are doubling efforts to regain a stronger grasp of the market. They are betting that a new line of shoes will boost it during the Paris Olympics this summer and recapture sales from On and HOKA. After pivoting toward reducing wholesale sales in favor of direct-to-consumer sales through its own stores and websites, Nike CEO John Donahoe said the sportswear brand “is not performing at our potential” and needs to lean back into wholesale and product innovation. Nike announced a $2 billion cost-savings plan in December. CFO Matt Friend said the consumer direct strategy had added “complexity and inefficiency” to the retailer’s operations. The brand has also steadily returned to wholesale partners it previously retracted from over the past year or so. Friend added, “The consumer is still clearly shopping in multibrand retail and we need to elevate our brand and our positioning to be able to serve the consumer and to have the maximum impact from the new innovations that we’re bringing to market.” Nike started 2024 by laying off more than 1,600 employees in an effort to right-size the organization and began streamlining support and operating functions, reducing management layers, and shifting resources to other areas. Specifically, Nike is investing more in departments like design, product creation, and merchandising to speed up innovation. #retailing #brands #missteps #strategy #businessmodels The Wall Street Journal , Retail Dive

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Hot take: How brands deploy Digital Product Passports will determine whether they take hold among the general population or just become a regulatory burden: • RIMOWA added NFC-powered Certificates of Ownership to their luggage. (Aleksija Vujicic had an interesting write-up last month about the opportunities they missed, though.) • Coach uses DPPs to facilitate access to end-of-life options (reuse/resell/recycle). • HUGO BOSS customers can use the digital ID embedded in their jackets to access IRL events, take ski lifts, and pay contactless. These are, in different shapes and forms, applications that have usefulness in the customer’s day-to-day. For the customer, they’re one more window into the brand’s universe; for brands, they’re a vehicle of customer engagement and a source of zero-party and first-party data. As DPPs become mandatory in Europe, I think players such as the Aura Blockchain Consortium, Seamm, and Arianee will play an increasingly important role in not simply enabling compliance, but showing brands how to use a regulatory shift to their advantage. More on this on the Nebulab blog in a couple of weeks! #retail #dpp #fashion #blockchain #luxury

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Another release from RetailX is covering the Luxury sector "2024 Global Luxury Report" that provides a comprehensive overview of the luxury goods market, showing a significant recovery and growth across various segments. Here are the crucial findings and projections from the report: 1. Market Growth and Regional Analysis:   - The global luxury goods market reached $354.81 billion in 2023, an increase from $312.63 billion in 2022.   - Asia leads in revenue generation with $135.2 billion, with significant contributions from Europe and the US. 2. Consumer Spending and Demographics:   - Luxury fashion remains the dominant segment, accounting for a third of the total expenditure.   - Millennials and Gen Z are prominent consumers, showing increased participation in luxury spending.   - Significant geographic variances in spending per consumer, with the highest spending in the US and Europe. 3. E-commerce vs. Physical Stores:   - Despite the growth of e-commerce, physical stores continue to be the preferred shopping channel, accounting for the majority of luxury purchases.   - Mobile shopping is particularly prevalent in Asia, indicating a trend towards digital platforms. 4. Sustainability and Ethical Consumption:   - Consumers are increasingly leaning towards sustainable and ethical luxury products, with nearly half expressing a preference for sustainable luxury clothing.   - The second-hand luxury market is also expanding, reflecting a shift towards more conscious consumption patterns. 5. Technological Innovations and Future Trends:   - The luxury sector is embracing digital innovations, including the use of social media, virtual reality, and the metaverse to engage consumers.   - Future trends indicate a continued increase in online shopping, with innovations in social commerce and live shopping experiences expected to gain traction. 6. Challenges and Opportunities:   - The luxury market faces challenges from economic fluctuations and changing consumer preferences.   - Opportunities for growth exist in tapping into emerging markets and enhancing digital engagement strategies. It underscores a dynamic industry that is adapting to technological advances and shifting consumer values, particularly towards sustainability and ethical practices. The luxury sector remains robust, driven by younger demographics and innovative marketing strategies. #trend #luxury #strategy #sustainability

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💡𝐃𝐢𝐝 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐭𝐡𝐚𝐭 𝐥𝐮𝐱𝐮𝐫𝐲 𝐠𝐫𝐨𝐮𝐩𝐬 𝐡𝐚𝐯𝐞 𝐛𝐢𝐥𝐥𝐢𝐨𝐧𝐬 𝐨𝐟 𝐝𝐨𝐥𝐥𝐚𝐫𝐬 𝐢𝐧 𝐞𝐱𝐜𝐞𝐬𝐬 𝐢𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲? Over the last decade, the value of excess inventory held by luxury fashion’s biggest groups has ballooned to €3.2 billion at LVMH and €1.5 billion at Kering. 🛍️ 𝐊𝐞𝐲 𝐏𝐨𝐢𝐧𝐭𝐬: 1️⃣ Overproduction is inherent in the fashion business model to maximize efficiency and sales prospects, and investors accept it because it represents a small portion of overall revenue. 2️⃣ Disposing of this excess inventory is challenging: regulators ban its destruction, and luxury brands are reluctant to use discount channels heavily. This article is a great summary on the delicate balance of maintaining "exclusivity," "non-discounting," and "sustainability." We all strive to produce less, consume less, and give clothes a second life, yet we also crave designer items that are never on sale, saving for months for that Chanel bag or Hermes belt. As an eCommerce leader, I see warehouses full of clothing items that can't be sold, discounted, or gifted due to brand restrictions. These items, often with minor defects or dirt from photoshoots, can't be sold at full price either. So, any good suggestions on how we can push the sustainability agenda while launching new collections and maintaining full-price sales? This is a super challenging issue that all brand leaders are keenly aware of and seeking solutions for. #LuxuryFashion #Sustainability #EmerceConsulting #eCommerce #RetailTrends #FashionIndustry #InventoryManagement #SustainableFashion

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Disruption is exposing the weak & vulnerable. The industry can either roll over and await their impending demise OR they can collaborate to refashion their shared value chains for mutually beneficial upside. SHEIN’s model is toxic, exploitative, and extractive, which will eventually be regulated, forcing the next evolution of the new paradigm. Unfortunately, many existing brands will not survive the transition. There is strength in collaboration. There is a moat in supporting your value chain / value creators. There is a better way being built today and if your company is not actively participating, you are just rearranging deck chairs on the Titanic. REFASHIOND OS is leading the orchestration for localized, collaborative value chains in the Americas. Reach out if you’d like to JOIN US. #industrialtransformation #fashion #apparel #fiberstofinishedgoods #advancedmaterials #advancedmanufacturing #data #ai #innovation #collaboration #valuechain Brian Laung Aoaeh, CFA Jeff King Mark Damschroder Hatun Aytug Sandra Campos Pilar V. Ceron Ankur Agarwal Jeff Spengler, MBA Arti Zeighami Elizabeth "Liz" Simonhoff Perez Stephanie Pierotti Chandra Roxanne Dan Conner, CFA, FSA Daniel Stanton Albert Wenger Zachary Smith Sheri R. Hinish Lisa Lehan Mitch Cahn Eric Henry Yuly Fuentes-Medel Ph.D. Tanya Menendez Enrique Perret Erhard Matt Rosenberger Melanie Hilton Anthony Perkins Cara Cranston Ginger Rothrock Kate Sheldon 🕊 CEO The Fashioneering Lab Lisa Lang Fredrik Timour Muchaneta ten Napel Constanza Gomez Willson Deng

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Here are some interesting stories from the world of retail for Sunday, May 12: 👚 Fast-fashion giant SHEIN is stepping up preparations for a record-breaking £53bn float in London. The Chinese-founded online retailer is reported to have picked London for a listing, after turning away from New York. 🏪 Retail spaces of less than 2,500 sq ft accounted for more than two-thirds of executed leases in the retail sector during the first quarter. These spaces also comprised the greatest footage signed during the quarter, says JLL. ☀️ REI has partnered with Intuit and carbon solutions provider Clearloop, a Silicon Ranch company, to develop a new 2.8 MW solar farm in White Pine, Tennessee. The solar farm will supply energy to REI's distribution center. 🇬🇧 Fashion designer Sir Paul Smith has warned the tourist tax is driving shoppers away from UK, saying the decision to scrap tax-free tourist shopping means the UK is effectively 20% more expensive than every EU country. 💎 De Beers Group slashed the price of its lab-grown rocks by nearly 40%, citing their plummeting wholesale prices. The man-made gems were reduced in price to $500 a carat from $800 — a 37% discount. 💳 A federal judge in Fort Worth, Texas blocked a new Biden administration rule that would prohibit credit card companies from charging customers late fees higher than $8. 🥫 Tesco CEO Ken Murphy predicts that food groups and consumer goods companies will use promotions to entice shoppers away from own-brand labels and regain lost volume. 🚢 The campaign by Houthi rebels in Yemen to terrorize western vessels using the Red Sea shipping route has caused a complete realignment of global trade. The Suez Canal has seen a significant drop in traffic. 🧀 Farewell, Chuck E. Cheese animatronic band! By the end of 2024, the animatronic performances will be phased out at all but two of the chain’s more than 400 locations in the United States. 🍔 McDonald's’s and other fast food chains are charging more. So much so that some sit down restaurants, like Applebee’s, are pitching customers to go for slower burgers that costs about the same. 🌽 B&G Foods Inc. is exploring a sale of its Green Giant frozen, canned vegetable businesses The Crisco and Ortega owner is considering divestitures to focus its operations and lower its debt. 🇨🇳 China's consumer inflation rose 0.3% in April, marking the third consecutive month above zero. However, industrial prices continued to decline, with the producer price index sliding 2.5% in April. 🧴 CJ OliveYoung is planning to enter the Japanese retail beauty products market, as Korean cosmetic products become increasingly popular in Japan. The beauty product arm of CJ Group will establish a subsidiary in Japan. #retail #retailnews #economy #DailyRetailNews

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Here are some deeper dive stories worth reading from the world of retail: 👜 Fixing a shabby luxury brand is hard: Fancy labels fray easily. Gucci hit the skids around 2022. Balenciaga, which like Gucci is owned by LVMH’s rival Kering, is also in the doldrums. Burberry and Salvatore Ferragamo have been in trouble for longer. Brands looking for a fix tend to reach for the same tools. They hire a new creative team to come up with a fresh look and then invest heavily in advertising and store refurbishments to catch shoppers’ attention. But most makeovers are disappointing, with lots of nasty snags for shareholders. 🔗 Link: https://bit.ly/3yyEvQN 🌍 Africa’s high fashion bets on global retail presence: When Kenya’s Vivo Fashion opened its first US store in Atlanta earlier this week it was the latest step in a push by African brands to expand the “high fashion” value chain on the global stage. Vivo, co-founded by Wandia Gichuru and Anne-Marie Burugu already has 26 stores spread across Kenya, Uganda and Rwanda. For its launch at Atlantic Station in Atlanta it brought along Kenya-made brands including Anjiru, Ikwetta, and Soko. Overall demand for African haute couture is projected to increase by 42% over the next decade. 🔗 Link: https://bit.ly/4bto2Mm 🦞 It wasn’t just the free shrimp that tanked Red Lobster: The bankruptcy came after a disastrous 2023 endless shrimp promotion in which, for around $20, patrons could order as much shrimp as they wanted. It put the chain $11 million in the red. But the saga of endless shrimp was just one in a long series of missteps going back a decade. Including the private equity sale of Red Lobster-owned real estate. 🔗 Link: https://bit.ly/3wOL7Ks (podcast) ✈️ The end of US revenge travel has arrived: Americans’ urge to splurge on pricey vacations is fading. After the pandemic put the brakes on the travel industry, leisure spending bounced back strongly over the past two years. All that pent-up demand from the pandemic is at risk of being tapped out. If “revenge travel” was the buzz word in 2023, then “normalised demand” is poised to be this year’s corporate catchphrase. Investors should adjust their expectations accordingly. 🔗 Link: https://bit.ly/3UWkhIj 🧴 The ‘asset stripper’ that tried to clean up on The Body Shop: Aurelius’s purchase of The Body Shop set one of the pioneers of kinder commerce on a collision course with the sharper end of capitalism. So far, the retailer’s collapse has led to 800 job losses and 82 store closures, and raised serious questions over the conduct of a firm that had pledged to reinvigorate The Body Shop and deliver its “next chapter of success”. In recent years, Aurelius has dismantled or pushed six other UK businesses into insolvency relatively soon after acquisition. 🔗 Link: https://bit.ly/4bwDFCV #retail #retailnews #economy #TopRetailExperts #RetailDeepDive 

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Here are some deeper dive stories worth reading from the world of retail: 👜 Is luxury set for a sustainability reckoning? The scrutiny on luxury’s supply chain is not a standalone issue, but one of several pressure points putting cracks in luxury’s marketing facade. Soaring prices for high-end handbags already have critics grumbling vocally on social media about sticker shock amid reports of declining quality. Layer on allegations of labour exploitation and the reputational risks are mounting. If luxury’s marketing mythology is indeed “broken,” the implications for the sector are serious. 🔗 Link: https://bit.ly/4fdW7SN 🛍️ Gen Z is embracing underconsumptioncore: TikTok is filled with young people showing off ways in which they’re choosing not to buy new products in favor of using the ones they have. From limiting themselves to one scuffed-up Stanley water bottle to opting out of doing one’s nails or buying art for their homes, Gen Z has eschewed buying new items in favor of trying to appreciate what they have. 🔗 Link: https://bit.ly/3SisZ2W 🥇 LVMH strikes Olympic gold: When the Paris Olympics open on July 26, the month-long spectacle will allow LVMH to use the spotlight on the city with which it has indelibly intertwined its image to showcase its brands ranging from Louis Vuitton, the world’s biggest luxury brand, to jeweller Chaumet and suiting specialist Berluti. The group’s stamp will be evident in many major moments of the competition, beginning with the torch relay, which included stops at LVMH’s Cheval Blanc hotel in the Saint-Émilion wine region and the Louis Vuitton Foundation art museum west of Paris. 🔗 Link: https://bit.ly/3Y81I7e 📦 The secret meaning of Prime Day: Black Friday celebrates (and laments) the commercialization of holiday gifts—things people want, and that people want to give. Prime Day, as a ritual observance, has a different focus: not the desirable, but the ordinary. It celebrates the stuff you buy for boring reasons, or for no particular reason at all.  🔗 Link: https://bit.ly/3SFdDGf 👁️ How extended reality is enhancing user engagement: There's no getting around it: User engagement is more important than ever. In fact, 86 percent of customers say they are willing to pay more for a great customer experience. Powerful technology tools like extended reality, or XR, have incredible potential to improve user experiences. In many cases, they are already busy reshaping the digital experience across the board -- whether consumers recognize it or not. 🔗 Link: https://bit.ly/3SgwkzN #retail #retailnews #economy #RetailDeepDive 

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