Ali Kole

Kudos to Macy's for their navigation of this challenge to how the company should operate in the future benefitting Shareholders and satisfying Stakeholders, including customers, during "A Bold New Chapter”. Excerpts: Dive Brief: Macy’s Inc.’s board of directors has unanimously voted to end talks with Arkhouse Management and Brigade Capital Management, which in March had offered $6.6 billion or $24 per share to take over the company, the department store said on Monday. The firms in June raised their bid to $24.80 per share but failed to deliver “a definitive, fully financed and actionable proposal,” the department store also said. Macy’s had requested the best price the firms were willing to pay, plus “fully negotiated commitment papers for all the debt and equity needed to finance the revised proposal.” Dive Insight: Given Arkhouse’s focus on real estate, its bid in conjunction with Brigade Capital — now close to $6.9 billion — was widely seen as a play to monetize Macy’s property assets rather than transform its retail operations. For many analysts that called to mind the slow deterioration of Sears. More recently, since Arkhouse’s overture, Macy’s has fortified its board’s real estate expertise — including adding nominees favored by Arkhouse — and said that property value will be a factor in deciding which 150 stores will shutter over the next three years. “Macy’s has played a good game in patiently furnishing the activist investors with information and allowing their nominees to take some seats on the board,” GlobalData Managing Director Neil Saunders said in emailed comments. “As such, it has shown itself to be a willing participant in discussions and has taken the bid seriously, which it must do in the interests of shareholders. However, Macy’s is also right to terminate dealings that were not proving to be fruitful or serious in terms of financing.” Meanwhile, the firms didn’t offer much beyond squeezing money from Macy’s real estate, according to GlobalData’s Saunders. “Indeed, many of the activist investor proposals would have significantly weakened Macy’s and hampered its ability to survive as a retail operation,” he said. On Monday Macy’s made clear that, with these negotiations in its rear-view mirror, its turnaround, dubbed “A Bold New Chapter,” is now sharply in focus. The turnaround is helmed by Macy’s Inc. CEO Tony Spring, previously Bloomingdale’s CEO, who took over from Jeff Gennette in February. Saunders credited Spring with having “a much clearer sense of vision and purpose in working to turn the business around.” “While Macy’s has a lot of work to do, it must be allowed the breathing space and time to enact changes that will put it on a path to growth and add value for investors,” he said. “Arkhouse and Brigade were never part of that long-term vision and the distraction of a sideshow they created must now end.” #macys #retail #takeover #realestate

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Great comments Sean! Conventional wisdom often focuses on the logistics and process problem of handling a retail customer return - store and online returns. This "problem" focus often masks and obscures the business opportunity hiding in plain sight - the customer experience associated with merchandise returns. We are all shoppers and we know we are loyal and flock to a shopping experience that delights. We will come back and buy more every time. The returns experience is an opportunity to delight your customer and do more business with most valuable customers. It seems the lesson here for retailers and brands is to understand differential customer value, understand the reasons for this customer's return, present returns options that are convenient and responsive to this customer, and use the transaction as an opportunity to delight and do more business with that customer. Sending a return shipping label to someone you know doesn't have a printer isn't convenient or a delight.

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Highlights from last week's NYC #RetailSafari -- focus was the intersection of #technology, #customers, and #operations, primarily in specialty apparel and fashion. Key themes: 1. Technology goes backstage – Brand new formats / concepts at H&M, Banana Republic, Zara, AMERICAN EAGLE OUTFITTERS INC., lululemon, and J.Crew and none come across as tech-forward w/ regard to customers. On the other hand, associates were all mobile enabled and doing most of their work leveraging phones / tablets. 2. Old tech; new tricks – Widespread use of #RFID and #QR codes (both generally on the price ticket), with a mix of internal and external use cases -- self-checkout, RFID-assisted full-service checkout, inventory counts, inventory finding, #BOPIS, etc. 3. Apps are an entry point – #Retailers without a clienteling / selling culture are using apps to drive customer capture. #Lulu uses app-based membership to enable exchanges on sale items; UNIQLO offers special discounts to app members. 4. Unified is still a unicorn – Despite a decade of focus on #omnichannel and unified commerce, many gaps exist. Very few #retail apps recognize when you’re in store, send a notification, and/or assist in the shopping experience. Many didn’t even have their newest stores listed as an option for #BOPIS (despite in-store signage).  5. Video is the new visual – ultra-large format (8-10ft x 12-16ft) video screens were a common feature of many new stores, and really helped to bring the brand lifestyle to life.  6. It’s hard to (re)teach people how to shop – Across all stores except Bonobos, Glossier, Inc., and Reformation, the shopping process is the same as it’s been for the past 50+ years. The ones that don't are focused on a niche customer with a unique product offering. IMO, the product is the driver and consumers "accept" the experience. 7. The "future" is not here yet, but you can start to see the shape of it – Demoing the Apple #VisionPro, we could think of multiple use cases (mostly internal / operational), and while it’s too early (and too expensive) to fully commit, it’s certainly worth considering a pilot as part of an #innovation lab. It's also worth noting there was no apparent use of #AI by customers or associates. Curious to hear comments, feedback from other markets. #ibmretail

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In my experience as a buyer, I viewed brand-buyer relationships as collaborative, but it's crucial to recognize that not all collaborations are equal. When you seek a retail partner for growth - look for a retailer that is collaborative Understand that the retailer still operates as a for-profit business But, know that you play a role in helping them achieve their goals Here are some areas to consider when looking at collaboration with retailers Door Count Bigger does not necessarily mean better. If your original doors aren’t “ALL” that’s ok. Discuss a tiered plan for growth and expansion. Placement Every brand wants to be seen. Your shelf placement, or location in the store can determine how many consumer eyes see your product. Ask where you’re being placed. Marketing Yes, ask for support from the retailer in their advertising vehicles. But know this is the place where the brand does the heavy lifting. Be ready to shout to the rooftops where you are. Forecasts Work closely with buyers, planners, and your ops team to understand projections. Have a reserve stock to plan for overperformance. Sales Expectations Ask upfront about the retailer’s benchmarks. Consider how the category performs too. Check-Ins As a new brand, having regular check-ins with your buying teams is great. This could be quarterly, or monthly depending on the projected sales volume. A lot to cover, and I know you might not be there, yet. So save this for that future retail meeting - cheers! – 👋🏾 Hi, I’m Monique, your bridge from niche market to major retail. I’m a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale. Ready to expand your reach? Book a discovery call and let’s explore how we can elevate your brand together.

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🚀 Big News Alert: Saks Buys Neiman Marcus with a Boost from Amazon! 🚀 Hey everyone! Just had to share this HUGE update in the luxury retail world. Saks Fifth Avenue’s parent company is dropping $2.65 billion to scoop up Neiman Marcus, and guess what? Amazon’s in on the action, bringing their tech and logistics game. 🛍️✨ Here’s the Tea: • Power Move: Merging two luxury legends to create a mega retail powerhouse. • Tech Boost: With Amazon on board, expect next-level tech integration for a seamless shopping experience, both online and offline. • Big Bucks: Financed by top-tier investors like Rhône Capital and the Abu Dhabi Investment Council, plus $1.15 billion in debt from Apollo Global Management. • Market Shakeup: The new combo will hit around $10 billion in annual sales, giving them major leverage with suppliers and streamlining costs. Why It’s a Big Deal: This merger shows how vital tech and partnerships are in today’s retail scene. It’s proof that luxury retail is evolving and adapting, even when times are tough. For investors, this move is a clear sign of confidence in the luxury sector’s future and the potential for new opportunities. Big things are coming, and I am excited to be part of this evolving industry. Stay tuned for more updates as we keep pushing the boundaries in luxury retail!

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Do you know what surprises me most about Hudson's Bay Company purchasing Neiman Marcus Group? It's not the fact that Amazon is involved... ... but that they only took a minority stake in the deal. Amazon is a $2 trillion company. They likely could have found the $2.65 billion for this entire deal in the couch cushions at their Seattle HQ. You may be familiar with Jeff Bezos' thinking on "one-way-door" and "two-way-door" decisions. (If you're not, watch this: https://lnkd.in/gxt5z9Sa) Perhaps taking a minority stake in the newly-formed Saks Global (versus outbidding HBC and buying Neiman Marcus outright) is Amazon's way of entering the world of high-end fashion retail in a "two-way-door decision" kind of way... ... what do you think? #BrickAndMortar #Fashion #Retail #Acquisition

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"It’s about extending our ability to find incredible brands we believe our customers will love and introducing them to those brands at a bigger scale, without the cost of a #wholesale model.” A lot to applaud in Nordstrom's #marketplace launch (#TLDR their vision is to become "The Spotify of #Fashion") ... enabling broader, deeper assortments; building out extended sizes; making marketplace items accessible to in-store #stylists; offering tailoring and alterations; and perhaps most importantly, allowing in-store #returns for marketplace purchases. In addition, I think they should use this as an opportunity to extend beyond "#gifting, #home, and #outdoor" and build share of wallet across a broader range of products and services. For some retailers, a marketplace is a chance to try and become #TheEverythingStore. For most, however, it's an opportunity to curate a range of goods and services that are tailored to your target customer(s), without the requisite costs of setting up #fullstack teams., processes, and #OTB to support. https://lnkd.in/g9aR6sjE

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BRILLIANT RESEARCH: Five 2024 Holiday Shopping Predictions https://lnkd.in/emwXStw7  Holiday shopping will look different for retailers this year.  After remaining largely resilient throughout four years of economic uncertainty, consumers are finally feeling the pinch.  Nearly a third of global shoppers (32%) reported using alternative credit services like buy now, pay later (BNPL) more frequently this year #retail Digital Commerce 360

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I enjoyed this recent article in The Wall Street Journal, which reflects on the social and economic shifts that have made shopping at off-price retailers a badge of honor. Do some millionaires shop at TJMaxx? You bet they do! Do they hide the fact. No, increasingly not! For fashion enthusiasts and bargain hunters alike, off-price is more than just about discounts and deals. It's about a treasure trove where luxury meets affordability. And it's fueling a growing social media phenomenon and redefining how and where high fashion is discovered and shared. More in the article linked in the comments... #retail #retailnews #offprice #discounts #luxury #apparel

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🚀 So interesting to see Amazon's rapid ascent in beauty and how this will continue to shape the dynamic, ever evolving beauty landscape. For beauty retailers specifically, the Amazon threat is real, but they can still find ways to win by leaning into their beauty specialty superpower. From brand curation to product discovery to premium and indie brand offerings, beauty retailers can leverage their omnichannel strategies as most beauty purchases still happen in store. Sephora and Ulta have the advantage of being able to engage deeply with their millions of beauty loyalists and enthusiasts and better target messaging to their customers. There is also an opportunity to further elevate their customer experience online, from virtual try-ons, skin diagnostics, product education and more. Thanks to Erica La Sala and Beauty Independent for including me. Check out the full article to read more from others - Joël Palix, Tina Henry Bou-Saba, Aaron Chatterley, Karen Hayes and more! https://lnkd.in/eusxEKSd True Beauty Ventures #beautyinvesting #beauty #ecommerce

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We've heard a lot about Chinese sellers in the e-commerce marketplace, such as Temu and SHEIN. Now Walmart is helping Indian sellers be introduced to the global e-commerce market. How long before an Indian seller as big as Temu or SHEIN unveils itself on the global stage? How are you competing against these global sellers in an increasingly competitive market? #ecommerce #worldcompetition #itsaglobalmarket

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Kohl's is partnering with Instacart to enable super fast delivery. Now, being on the Instacart platform gives Kohl’s more visibility and might win it some new customers who want things in a hurry. So, it's not a bad initiative. The but part is that most of the things Kohl’s sells are discretionary and are not always needed within hours, so this caters to something of a niche audience. The even bigger but is that while this doesn't harm Kohl's, it does not address the core issues of a lack of investment in stores, mundane ranges, and weak pricing compared to retailers like Target. Kohl’s is working on these things, but it needs to fix them if it wants to compete and win market share. In other words, it will take more than fast delivery to revive Kohl’s. Thank you to Inside Retail US for including my thoughts in this article... https://lnkd.in/ePjPfFFh #retail #retailnews #fastdelivery #ecommerce #shipping

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According to GlobalData, the U.S. secondhand apparel market grew 11%, or seven times faster than the broader retail apparel market, to $43 billion last year. The report estimates that resale sales online and at traditional thrift stores could reach $73 billion by 2028. #resale #retail #apparel #retailsales

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Complex and major initiatives often require an increased focus on initial expectation setting and managing expectations during the change. Also, a potential reminder that Wholesale can be an important channel and that many times a Both/And solution can surpass an Either/Or. Meeting a wide variety of customers using the Reach of E-commerce and Wholesale partners AND including the touch/experience at Nike Stores as well as stores in areas that may not easily be served by existing Nike Stores ( ~300 in the USA and ~1,000 globally). Your thoughts? Excerpts: Dive Insight: Nike’s Consumer Direct Offense and Acceleration plans are coming under attack in a new class action lawsuit that alleges two of the brand’s top executives misled investors about how successful the strategy was. “Throughout the Class Period, Defendants repeatedly touted the purported strength of Nike’s business model, and in particular, the claimed success of its digital and direct-to-consumer strategies to produce sustainable growth, while downplaying the significant competitive pressures facing the Company,” the lawsuit reads. The lawsuit recounted Nike’s efforts to ditch wholesale partners in 2020, which continued into 2022 in a much-discussed shift away from Foot Locker, as well as the retailer’s subsequent return to many of those partners when its DTC strategy didn’t deliver as intended. Indeed, on the back of disappointing sales results, Nike late last year rolled out a cost-savings plan aimed at driving growth and profitability. The plan included layoffs, as well as a simplification of its product portfolio, with executives referencing its shift to a DTC model as a reason for the cuts. “Since fiscal ’19, our investments in accelerating Nike’s consumer direct vision have created new operating capabilities, added tens of millions of new members to our member base and delivered a return of more than $12 billion of incremental revenue,” Friend said on a call with analysts at the time. “However, we have also added complexity and inefficiency. In this competitive environment, we need to accelerate our pace of innovation, elevate our marketplace experiences, maximize the impact of our storytelling, and increase our speed and responsiveness.” Donahoe followed that up in March by acknowledging that the company needed to make some “important adjustments” to its Consumer Direct Acceleration strategy, as Nike was not “performing at our potential.” #Nike #DTC #Retail

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Check out this insightful assessment by Dan Berthiaume on the state of Just-Walk-Out/Grab-and-Go models. Rich McMahon and I came to similar conclusions in a recent LinkedIn discussion. With years of experience in the industry, we see things not just as they are, but as they can and should be. Keep up with the latest developments in the industry by following our posts. #JustWalkOut #GrabAndGo #RetailTech

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🚀 Insights from Walmart CEO Doug McMillon on eCommerce and Omnichannel Retail. Brilliant interview, thanks Stratechery. Here are some key takeaways from our conversation: 🔹 𝐖𝐚𝐥𝐦𝐚𝐫𝐭’𝐬 𝐞𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐞 𝐄𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧: Initially, the potential of eCommerce was underestimated, but the acquisition of Jet.com was a game-changer. It brought in essential expertise and new perspectives, enabling Walmart to aggressively pursue and integrate digital retail. 🔹 𝐎𝐦𝐧𝐢𝐜𝐡𝐚𝐧𝐧𝐞𝐥 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐚𝐧𝐝 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧: Leveraging its vast network of physical stores, Walmart has created a seamless omnichannel experience. With stores in close proximity to customers, especially for groceries, Walmart has a unique competitive edge. Integrating supply chain and technology across channels has enhanced both customer experience and operational efficiency. 🔹 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐢𝐜𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧: The transition to a tech-savvy retailer required adopting agile methodologies and fostering cross-functional collaboration. Significant investments in automation and AI are optimizing Walmart’s supply chains and inventory management, showcasing a forward-thinking approach to retail technology. 🔹 𝐆𝐫𝐨𝐜𝐞𝐫𝐲 𝐚𝐬 𝐚 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞: Integrating grocery with eCommerce has been a major advantage for Walmart. The grocery business drives frequent customer visits and supports the broader eCommerce strategy, solidifying Walmart’s market position by offering a comprehensive shopping experience both online and in-store. 🔹 𝐌𝐚𝐫𝐤𝐞𝐭𝐩𝐥𝐚𝐜𝐞 𝐚𝐧𝐝 𝐀𝐝𝐯𝐞𝐫𝐭𝐢𝐬𝐢𝐧𝐠 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬: Walmart’s marketplace and its advertising platform, Walmart Connect, are crucial areas of focus. These initiatives aim to diversify revenue streams, enhance customer acquisition, and leverage Walmart's scale in both physical and digital retail. Do you follow Walmart's journey? #EmerceConsulting #Ecommerce #RetailInnovation #Omnichannel #Walmart #Leadership #TechnologyInRetail

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Kohl's is partnering with Instacart for same day delivery. This latest initiative is part of a wider pattern at Kohl’s of doing things with third parties. Amazon returns came first. Then Sephora. Then Babies-R-Us. Now same day delivery with Instacart. The partnerships don’t hurt Kohl’s in any way and some, like Sephora, do help generate revenue. But they also don’t fix the many issues with the core business. In the case of same day delivery, I doubt it will move the dial much at all. Why? Well, from our data, among Kohl’s existing customers fast online delivery currently ranks 20th in the list of reasons why people opt to shop at Kohl’s. Kohl’s doesn’t score badly here, it’s just not that important to shoppers. This is most likely because a lot of the things Kohl’s sells are not needed urgently, and people are broadly satisfied with current delivery speeds. Among those who do not use Kohl’s, online delivery being too slow is 26th in the list of reasons people don’t shop the chain. Only 5% of non-shoppers identify it as a reason for not shopping at Kohl’s; and less than 1% say it is the main reason. In other words, faster delivery will not activate many new customers and will not drive existing ones to spend more. It's a distraction - albeit not a deeply unhelpful one - from the main problems. Thanks to Modern Retail for including my thoughts in the article linked in the comments. #retail #retailnews #fastdelivery #samedaydelivery #ecommerce

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The Chronicles of Four Marketplace Maestros at the NORA ~ National Online Retailers Association Marketplace Summit. Meet the "Bureau of Marketplaces": Paul Greenberg Gabby Leibovich Jethro Marks and Mark Mansour a quartet of digital titans who've transformed the e-commerce landscape. Known for their cheeky banter and profound insights, each has carved a niche in the bustling world of online marketplaces. Paul, "The Grandfather," is a seasoned strategist whose early advice to "fish where the fish are" is now legendary. He emphasizes the need for presence across multiple channels, ensuring opportunities are never missed. Gabby, affectionately termed "The Oracle," journeyed from family-owned retail to founding Catch, a behemoth in the online retail world. His transition from physical to digital sales embodies the quintessential entrepreneurial spirit, adapting swiftly to changing consumer behaviors. Jethro, with his deep operational knowledge, tackles the complexities of marketplace dynamics. His expertise in scalable systems and tech-driven solutions like robotic warehouse automation underscores the critical role of efficient operations in growth. Mark, the "steady hand" at Woolworths’ MarketPlus, champions the extension of brand reach through marketplaces. His initiatives illustrate how established brands can innovate and connect with broader audiences, proving the importance of evolution in retail. Together, these mavens blend serious strategy with "marketplace psychotherapy," navigating the emotional landscape of business with humor and wisdom. Their collective story is not just about individual success but about fostering a legacy of innovation and customer commitment in the digital age. As they continue to lead and inspire, their journey offers invaluable lessons for the future architects of the e-commerce world.

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Amazon continuing its test & learn strategy to expand its grocery business. Also noteworthy is that it includes grocery retailers on Amazon.com, not just its own grocery ( continuing to build an ecosystem and offer more to customers) Excerpts: Dive Brief: Amazon announced Tuesday a new grocery subscription available to Prime members and customers using EBT. The subscription, which costs $9.99 per month for Prime members and $4.99 per month for non-Prime members with an EBT card, provides free grocery delivery on orders over $35 across Amazon Fresh, Whole Foods Market and grocery retailers on Amazon.com such as Cardenas Markets and Save Mart.   The subscription adds to the string of changes Amazon is making to its grocery offerings as it looks to sharpen its presence as a grocer as well as bolster its Prime membership. Dive Insight: Amazon is positioning its new grocery subscription as a “low, monthly fee” that “pays for itself” after one delivery per month. “Our goal is to build a best-in-class grocery shopping experience — whether shopping in-store or online — where Amazon is the first choice for selection, value, and convenience,” Tony Hoggett, senior vice president of worldwide grocery stores at Amazon, said in an emailed statement. “We have many different customers with many different needs, and we want to save them time and money every time they shop for groceries.” Grocery delivery has been one area in particular that Amazon has grappled with recently. In January 2023, Amazon Fresh raised its threshold for free delivery to $150 but then 10 months later lowered that minimum to $100. A month later, Amazon said it started offering grocery delivery and free pickup to non-Prime members in all markets where its Amazon Fresh stores and online services operate, with plans to expand grocery delivery and free pickup from Whole Foods to shoppers who aren’t Prime members. #amazon #grocery #ecosystem

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