Ashley Schapiro

Interesting read from Erica La Sala from Beauty Independent related to the Saks and Nieman merger. The question asked: What do you make of the Saks Fifth Avenue/Neiman Marcus deal? How will it impact the luxury beauty market? Will it strengthen the declining department store sector?  According to Cristina Nuñez, "... the department store channel is a challenging one. Historically, it has been the main retail channel for luxury beauty brands given it is more suited for a higher price point. But with continued declines in traffic at department stores, the channel has proven to be a difficult place for luxury brands to rely upon for growth. Instead, growth is being driven at specialty retailers such as SEPHORA and Ulta Beauty, whose dominance has largely been at the expense of department stores". "At the end of the day, consumers will continue to shop for beauty at retailers offering best-in-class in-store experiences optimized for brand discovery. Brands should seek out these partners offering the best brand building support and a path to achieving scale. Perhaps the combination of Saks and Neiman Marcus will allow for a more enhanced retail experience overall that is even better suited for luxury beauty. Time will tell." True Beauty Ventures

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Victoria’s Secret & Co. has been on the decline for the last few years. Reviving the fashion show may be grasping at straws but I think this could be exactly the thing that puts VS back on the map. 🙋🏽‍♀️Customers are craving reasons to engage with a brand, online and offline. Victoria Secret could offer exactly this if they lure customers into the stores with activations, promotions, and interesting experiences. 🔹They could also get it very wrong but either way, they will get the customers talking. Low sales, low engagement, decrease in brand loyalty etc. - time will tell. 🦋Net sales peaked in 2016 with another jump in revenue before the pandemic. Many will disagree with bringing back this dated view of looking at scantily clad women in wings on the runway but I beg to differ. The consumer has evolved and there may be a new VS customer on the horizon. 👙With weight loss injections flooding the market and retailers struggling with excess inventory, the lingerie and swim world could be categories that will save retail brands. With more women trading in cover ups for bikinis, there will be a new customer empowered with body positivity. This customer could save Victoria Secret from extinction. Thanks Nicole Kirichanskaya and Inside Retail US for including my POV. Shoutout to Marie Driscoll, CFA also quoted in this discussion. Find the link to the full article in the comments. #retail #retailnews #victoriasecret #TRE #TopRetailExpert #TheMerchantLife #stores #fashion

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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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Since 2019, Kohl's sales have shrunk by $2.3 billion. That’s a pretty terrible number given consumer spending on retail rose by a dramatic $1.3 trillion over the same period.     The Kohl’s losses are a combination of existing customers spending less and the complete defection of some shoppers. Over the past five years, Kohl’s has lost 1.3 million customers: people who used to visit Kohl’s, but now they don’t. Most of these folks still buy things so it’s interesting to see where they’re now shopping, or shopping more at, instead of Kohl’s. The diagram below traces the defections. The most notable thing is the gains being made by off-price retailers. TJX – with its TJMaxx, Marshalls, and HomeGoods banners – is picking up a lot of trade. Ross, Nordstrom Rack, and Burlington are also in the mix. It’s no wonder off-price is doing so well when it’s gaining so many customers from chains like Kohl’s. What’s also notable is that online specialists don’t dominate. Amazon has picked up some trade, as has Wayfair, but neither are the main beneficiaries of Kohl’s woes. This underscores that the very simplistic narrative of ‘online killed…” is often far from the truth. It is also significant that Costco makes an appearance. Costco is a silent assassin. Many retailers don’t have it on the radar for non-food; but the reality is that Costco has a formidable non-food business. Retailers like Kohl’s don’t underperform because one large enemy comes in and swoops away all the custom. Their substantial loss of trade comes from many players nibbling away at their sales and market share. #retail #retailnews #departmentstores #wholesale #shoppers

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“We saw an opportunity in the market to really lean into the #GenZ customer with incredible style at an extraordinary price point that only someone like Walmart can bring given our scale.” Good move by Walmart as part of their larger revamp of #apparel. But product is only one piece of the equation. For #NoBoundaries to compete head-to-head against Abercrombie & Fitch Co., AMERICAN EAGLE OUTFITTERS INC., or any of the other brands targeting Gen-Z, it will take a more holistic effort across #stores, #digital, and #marketing (content and medium) to create real #brand momentum. https://lnkd.in/eudxA2bF

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From Macro to Micro: The Ripple Effects of the Saks-Neiman Marcus Merger 💡 As a brand strategist, technologist, and President of the Chicago Fashion Coalition, my perspective will focus on how this merger represents broader shifts in the retail landscape and what it means for both national and local markets. My Key Takeaways: ➡️Merger Impact: The $2.65 billion merger between Saks Fifth Avenue and Neiman Marcus, backed by Amazon and Salesforce, aims to revitalize the department store model through technology and scale. ➡️Retail Transformation: Nationally and globally, the merger sets a precedent for integrating online and offline retail experiences, driven by data analytics and AI to meet consumer demands for personalization and convenience. ➡️Local Strategies: Locally, the merger presents both, opportunities and challenges for retailers in Chicago, emphasizing the need for unique experiences, technology adoption, and a balanced approach to online and offline retail channels. Take a Deeper Dive 🔑 Post-COVID market shifts indicate that consumers prioritize convenience and low costs, as evidenced by the popularity of platforms like Amazon Prime, Shein, and Temu. With a struggling economy, discretionary spending on non-essential items like fashion has decreased. To counter this trend, retailers must focus on providing experiential shopping experiences that entice customers to leave their homes. Chicago boutiques like Congruent Space excel by combining art, fashion, and interactive events, making shopping a unique experience. The strategic integration of scale and technology is crucial for revitalizing the department store model. Retailers must utilize trend forecasting, social listening, and AI tools for sentiment analysis to make informed buying decisions and optimize customer engagement. Balancing online and offline retail channels is essential for future success, as relying solely on e-commerce or physical stores presents significant trade-offs. A diversified approach to revenue generation will be key to thriving in the evolving retail landscape. Join the Conversation 🗣️ What are your thoughts on… How will the Saks and Neiman Marcus merger affect the retail industry? What are the benefits of retail mergers? How can local retailers compete with large department stores? #RetailRevolution #LuxuryMarket #AmazonInvests #Saks #NeimanMarcus #FashionIndustry #RetailInnovation #SupplyChain #TechnologyInRetail #Ecommerce #BusinessStrategy #LuxuryStores

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🔔 Big news coming out of the retail sector as the Nordstrom family explores taking their *iconic* department store private. CEO Erik Nordstrom and President Pete Nordstrom are looking to transition the 123-year-old(!) retailer from public to private ownership, setting up a special committee to weigh all potential bids. 🤔 Why does this matter to us? Any shifts in Nordstrom’s strategy - especially towards more online and direct-to-consumer sales - could seriously change our industry's landscape. 💡 This could be the start of a trend where big retailers seek more control over their operations by going private. Read more at CNBC: https://lnkd.in/gJg5HaZy #logistics #retailtrends #nordstrom #businessstrategy

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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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Opportunity

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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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Thanks to The Business of Fashion for including my thoughts in this article on the potential acquisition of Neiman Marcus by the parent of Saks Fifth Avenue. The merger of the two companies will create some benefits, but it still leaves lots of questions as to their future place in the luxury retail sector. In my view, corporate dealmaking is always exciting and generates a lot of promises. However, the real challenge is actually delivering on those promises. More in the article: https://lnkd.in/eny9tJzC #retail #retailnews #luxury #departmentstores #fashion #apparel

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Today, we announced our first-quarter earnings which show the positive traction of our “A Bold New Chapter” strategy. The hard work and dedication of our colleagues helped us deliver a solid first quarter. Here are the key takeaways: ◾Our First 50 Macy’s locations, which serve as test stores for merchandise, visual and staffing initiatives, showed that when we provide our customers with the right product, experience and value, we deliver sales growth. The Macy’s team is focused on newness in market brands and the reimagination of our Private Brand portfolio.  ◾Bloomingdale's and Bluemercury continued to foster brand love and loyalty.   ◽ Exciting to see the growth at Bloomingdale’s in advanced contemporary. The DNA of this brand gives it the ability to compete for share of wallet across a range of categories. Expansion of Bloomie’s and Outlet stores continues with three new stores this year.  ◽ Bluemercury achieved its 13th consecutive quarter of sales growth, driven by continued strength in skincare and expansion of key brand partners. Our plans to open at least 30 new locations and remodel roughly 30 locations are underway, with one new location and three remodels slated for the second quarter. Read our full earnings results below.

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Retail Today / Retail Renaissance: Last week Wayfair opened their new store in the Chicago suburbs, creating a stunning physical store, focused on the experience of furniture/home shopping. #wayfair Not just any store but a spectacular two story 150,000 sq ft destination place, creating an emotional, entertaining atmosphere. With 19 departments from home decor, housewares, appliances, furniture and home improvement. #homedecor #furniture #appliances #homeimprovement Wayfair’s joins many E-commerce retailers, now becoming a omnichannel retailer but offering value, selection, service , fast shipping in an physical store. #ecommerce #omnichannelretail #brickmortar This $12 Billion Dollar Furniture Industry disruptor has been on a roller coaster ride for years, obviously a Wall Street darling and a personal “piñata” for me. Many questions remain but are rarely asked. What happens after the ballon drop and the excitement of opening? #sales #profitability #wallstreet What does Wayfair’s hope to accomplish with this fantastic store? What is your sales projection for the first year? 5-year? What is the projected ROI of this project? What are your expectations for customers in Chicago relative to the digital experience? How do you see them blending? How many locations could support a store of this magnitude? How will this effect your total company expenses and profitability? Again congratulations!! #retail #retailtrends #retailindustry #shoppingexperience #brandexperience #furnitureindustry #TopRetailExperts

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Here at Ulta Beauty, we believe that beauty is a force for good, for all. So in a world where beauty standards are always changing, our brand new Ulta Beauty study revealed and confimred that every generation shares a deep emotional connection to beauty starting as early as Gen Alpha that is deeply rooted in self care and joy! Introducing our “Generation Joy: Defined by Beauty Enthusiasts of All Ages, United by Joy” report, uncovering a new generation of beauty enthusiasts who are bonded by beauty and united by JOY. We dug deep to discover how consumers across generations, including #GenAlpha, perceive, experience, and are influenced by beauty – and how joy is at the heart of beauty rituals, no matter your age. Among the topline “Generation Joy” insights: ✨Universal Joy from Beauty Routines: All generations look to self-care to increase joy in their lives - with 77% agreeing that maintaining a beauty or wellness routine helps them feel more joyful on a day-to-day basis. ✨Early Beauty Experimentation: Gen Alpha females and males are starting to experiment with beauty products at an average age of 8, five years earlier than Gen Z females. ✨Holistic Beauty Definition: 91% of Gen Alpha believes beauty is about looking and feeling good beyond physical appearance, with a focus on holistic self-care. ✨Parental Guidance: 77% of Ulta Beauty Rewards members who are parents to Gen Alpha actively encourage their child’s interest in beauty, with 70% using beauty routines as a bonding activity. And over two-thirds of these Gen Alpha parents agree that it is healthy and “normal” for their child to want to explore beauty at their age. ✨Natural Preferences: 92% of Gen Alpha prefers a more natural look, 87% prioritize skincare over makeup, and 97% believe skincare is self-care, reflecting their beauty goals – cleanliness, hydration, and enhancing natural beauty. Check out the report to explore how joy and beauty unite us! 👇🏻 https://lnkd.in/gSFpqYXu #UltaBeauty #TheJoyProject #JoyForward

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Will Kohl's benefit from its latest third-party venture with Babies"R"Us? On the plus side, adding Babies R Us is more of a help than a hinderance to Kohl's. It bolsters the proposition in an important area of the market and gives Kohl’s more credibility in the space. This should help drive some incremental revenue into the business. There is also a view that if Kohl’s can pull in younger family and family formation shoppers for baby products it can, hopefully, convert them into buying other categories like toys or homewares.    However, for this to work properly, Kohl’s really needs to improve the look and feel of its stores and make its own assortments and pricing more compelling. If it fails to tackle these things, this will be a reasonable venture but one that cannot throw a halo over the rest of the business – much as has been the case with Sephora.   The bottom line is that Kohl’s can add in as many third-party brands and ventures as it wants, but there is a tactic admission here that its own core proposition isn’t good enough. It still needs to work to dispel this view. Great to chat with Inside Retail US about this, link to article in comments. #retail #retailnews #departmentstores #babies #parents

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The #future is here and the future is Omnichannel. Wayfair is venturing into brick-and-mortar retail with its inaugural physical store. This move highlights the growing recognition among eCommerce giants of the significance of physical presence in enhancing the customer experience. Following in the footsteps of brands like Bonobos and Amazon, Wayfair's expansion into the physical realm underscores the synergy between online and offline channels in today's retail environment. Even in the age of eCommerce dominance, the allure of physical stores remains strong, offering opportunities for immersive experiences and personalized interactions with customers. By embracing this omnichannel approach, retailers can deepen their connection with consumers and serve different uses. #retail #innovation #ecommerce #digitalmarketing #shopping #cx

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