KC Tolliver

Come for the treasure hunt, stay for the shareholder returns. Last year, The TJX Companies, Inc., owner of MARSHALLS LLC, TJ Maxx & HomeGoods, and TK MAXX (Europe), generated over $50 Billion in revenue, more than Macy's and Nordstrom combined. This success was not generated from online sales but based on #BehavioralEconomics and applied human psychology, e.g., "bargains and the treasure hunt." The latest quarter was further proof of this resilience. Both TJX Cos. and Ross Stores, Inc. reported this week that comparable-store sales rose 3% in their quarters ended May 4 compared with a year earlier as inflation-pinched consumers sought out deals. This marks the seventh consecutive quarter of comparable sales growth for TJX and the sixth for Ross. Ross, whose consumers skew low-to-middle income, has been lowering prices to drive sales. TJX, with a higher-income clientele, has been able to raise prices selectively without much pushback. Bad times aren’t required for good times at these retailers—they were growing in 2021 when consumers were feeling flush. TJX, Ross and Burlington Stores, Inc. collective share of the #apparel and #footwear specialist market ballooned from 25% in 2019 to 31% last year. Off-price is likely stealing market share from home retailers, too. TJX’s HomeGoods business saw comparable-store sales rise 4% last quarter, while Ross Stores said the home category outpaced overall company growth. That contrasts with anemic home-related sales at retailers like Target and Beyond, the company that took on Bed Bath & Beyond’s website. Can off-price retailers keep growing? Weakness at other apparel brands suggests that they can. Recognizable brands such as Nike, lululemon, and Coach owner Tapestry have hit speed bumps on sales growth. Where there is unsold inventory, there are buying opportunities for off-price retailers. There could be a big wave of inventory from recent bankruptcies at EXPRESS and teen-focused rue21, as they close hundreds of stores. The wave of store closures also should help boost foot traffic at off-price retailers. Off-price historically has been the biggest beneficiary of apparel store closures. In addition to bankrupt retailers, Macy’s has announced plans to close 150 stores. UBS analysts estimate that more than 16,000 apparel stores could close over the next five years. This hasn’t gone unnoticed. TJX and Ross shares have appreciated 92% and 40%, respectively, over the past five years. They are now among the most expensive U.S.-listed apparel-industry stocks. They trade at forward-12-month earnings multiples that rival Nike’s and recently outpaced Lululemon’s. Off-price retail stocks aren’t cheap, but premium products never are. Well covered by Jinjoo Lee for the The Wall Street Journal

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Great post Matt- good to see numbers for Run! The price issue is not all brand margin related, new polymers and processes are really expensive and factories are mostly left to do all development and pre-production as brands lack qualified talent and are mostly staffed by those looking to avoid adding risk or attachable decisions to their daily- to try and keep the desk! Nike’s well chronicled layoffs (also your posts!) have further spooked the industry creative/engineering and Production players! I do not see prices coming down any time soon, due to China avoidance and Vietnam capacity tightening ( plus the political footballs in Cambodia/Myanmar) - so those walls will need to be climbed to grow the category and capture market share from the big brands! Well spotted on womens as the fastest growth market - which will hopefully drive investment capital and we continue to see better technical/well fitting products come to the segment! #mattpowell #runningshoes #femalerunners

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In a step towards further consolidating luxury retail, the involvement of Amazon and Salesforce in this acquisition, coupled with a substantial technology investment, raises the question: could this initiative rescue the luxury retail market? #retail #saksfifthavenue #amazon #salesforce #neimanmarcus #retailtechnology

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This should be interesting post the Supreme VF Corporation transaction. Look at what Ray-Ban, Google, etc, are doing. Who will come out as the winner is anyone's guess, but going up channel never hurts as it's all downhill from there. Always good stuff, Richard Kestenbaum #VFcorporation #Supreme #RayBan #Google #businessstrategy #ForbesInsights Read more insights from Richard Kestenbaum: [Link to the article]

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Mercury Free Mining’s Toby Pomeroy is featured in INSTORE Magazine's recent profile of 10 people who are changing the jewelry industry for the better. The article is a probing snapshot of the "movers and shakers" whose works dare to elevate and improve every aspect of the field. It's a remarkable list of women and men who are not afraid to #bethechange. 👏👏👏 Preview: THE MERCURY VANQUISHER Toby Pomeroy’s mission is to ban mercury from artisanal gold mining. It’s a charge he took up in 2004 after reading the No Dirty Gold website; contents of it revealed the harmful impacts of mercury and cyanide in artisanal and small-scale gold mining (ASM) communities. Some use mercury to collect gold and occasionally mishandle tailings, harming ecosystems and displacing indigenous people. “Mercury in the environment is absorbed by creatures up the food chain,” Pomeroy explains. “From the waters around the mining area to the people who raise food, mercury contaminates everything.” At that point, Pomeroy was entrenched in a career as a jewelry designer known for forged hoop earrings, among other offerings, but decided he could no longer make jewelry unless this toxic influence was addressed. Read the full story from the May 2024 issue here https://lnkd.in/eDiskGv7 #mercuryfreemining

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From sketching sneakers as a kid to revolutionizing footwear design, Omar Bailey is forging paths and breaking molds with FCTRY LAb. This founder is reshaping the industry from LA, championing diversity and creating opportunities for minority designers. Omar's ethos? Don't wait for permission—create your own opportunities. Check out this article by Essence to get an in-depth look into his world of design and how he’s transforming the future of footwear, one shoe at a time: https://lnkd.in/gYccRXWB 

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Is the Neiman Marcus Group acquisition by Saks Fifth Avenue a Luxury Shopping game-changer? Saks Fifth Avenue's parent company, Hudson's Bay Company, is acquiring Neiman Marcus Group for an impressive $2.65 billion! This landmark deal, partially funded by Amazon, along with Rhône Capital and Insight Partners, is set to reshape luxury retail. For those who love #luxury shopping, this is a game-changer. Combining forces means expanded market reach and streamlined operations, enhancing our shopping experiences. With technological advancements redefining retail, this #merger promises exciting innovations. The inclusion of valuable U.S. real estate assets, worth approximately $7 billion, adds a significant financial boost. #Amazon's involvement is particularly intriguing. As an e-commerce leader, Amazon's participation signals a strategic move to strengthen its luxury retail presence. I’m excited to see potential collaborations combining Amazon's tech prowess with Saks and Neiman Marcus's retail expertise. HBC plans to establish Saks Global, encompassing Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, with each brand operating independently. Additionally, HBC’s Canadian business will be spun off as a standalone entity, focusing on different markets. The luxury retail sector is entering a transformative phase, and I'm eager to see how this deal unfolds and impacts our shopping experiences. What do you think? Will this acquisition bring more luxury and innovation to our shopping experiences, or do you foresee challenges ahead? Share your thoughts in the comments! ⬇ #RetailNews #LuxuryRetail #BusinessAcquisition #acquisition #SaksFifthAvenue #NeimanMarcus #Innovation #CustomerExperience

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I’m been meaning to ask Jewelers Vigilance Committee what’s the best practice for disclosing “used” diamonds. Because as we all know, some of the diamonds that we sell were previously worn. With traceability and provenance in diamond sourcing becoming a “thing” because no one wants to buy or sell a conflict diamond or a banned Russian diamond, I started wondering about our responsibility relative to diamonds that are reused after a melt or return. On the one hand, I don’t believe a consumer has the expectation that we throw away diamonds or gold when they return or trade-in an item. While some of that merchandise gets resold as “estate” jewelry with full disclosure that it was previously owned, most of it ends up getting melted and the gold and diamonds are reused to make new merchandise (generally upstream in the supply chain). For the most part, we as retailers have no knowledge of used or new and frankly neither do many of the manufacturers. For certain larger stones perhaps there’s a lab certification, but for the most part, the diamonds and gold are simply reused and no one is the wiser. Diamonds don’t decay or lose their sparkle like a transistor. Do we have a duty to disclose this, legal or ethical? What if the last person to own that diamond died with it on their finger? Or was killed because it was on their finger? Or they killed someone to get it on their finger? Can a diamond be “stigmatized”? In certain states (California and Texas for example), you are required to disclose if someone died in a property you are selling. I call this the Ghostbuster rule. But it’s on the books. While I’m not aware of such a thing for jewelry, and we all like to tell the beautiful stories about how great grandmas diamond is passed on through generations, we also know of the “curse of the Hope Diamond (https://lnkd.in/gEvTHnYA). While I’m not personally a believer in inanimate objects having bad juju, some people certainly are. And, if there ever were to be an object that absorbed bad karma, probably a diamond would be the most likely target. Perhaps we should add a new disclosure: "This diamond may have a bit of history and may come with its very own friendly ghost. Don't worry, though—our ghosts are known for their excellent taste and sparkling company!"

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Aloha Friday! 🤙🏼 Here are some interesting stories from the world of retail for Friday, June 14: 💍 Shares of diamond seller Signet Jewelers tumbled Thursday, after the parent of the Kay, Zales and Jared jewelry-store chains missed quarterly sales expectations, as engagements continued to decline. 🛋️ Shares of RH fell after the upscale furniture chain reported a bigger-than-expected Q1 loss and forecast second-quarter sales below expectations. The company continues to grapple with a slowdown in the housing market. 👖 Walmart is squarely targeting young consumers with a total revamp of its No Boundaries private label assortment of fashion items. New fabrication, shapes and styles will be introduced; prices will remain the same. 🏬 In coming months, JCPenney will shutter four stores across as many states. The department store remains profitable, though net income plummeted nearly 90% last year and sales continued to slide. 🥦 The UK's Tesco has reported total retail revenue of £15.3bn in the 13 weeks to May 25th, up 3.4% compared with the same period last year, with food sales up 5% and online sales rising 12.5%. 📱 Poshmark is ramping up its bet on livestream shopping with a new offering called Posh Party Live. This allows real-time shopping events where sellers and shoppers get together and share items. 🥼 FIGS taps Lululemon exec for CFO. Sarah Oughtred spent almost 17 years at the activewear brand, where she helped scale the business from $270 million in revenue to about $10 billion. 📦 Canada's Competition Bureau has been given approval for a court order to compel Amazon to hand over documents related to a probe focused on "potentially false or misleading claims". 🫙 Tupperware is closing its US manufacturing plant in South Carolina and laying off 148 workers, per a WARN notice dated June 11. The layoffs are part of a multi-year strategy to simplify Tupperware’s supply chain. 🏭 The math is looking good for Walmart's automated warehouses. The company shared that an automated DC sees roughly twice the throughput with half the head count. 🎮 GameStop's annual shareholder meeting was cut short after high interest from shareholders led to a technical issue. The meeting will be reconvened at 12:30pm EDT on Monday. ☕️ The Supreme Court ruled Thursday to restrict the National Labor Relations Board’s authority to obtain relief for fired union activists, in a win for Starbucks that could deal a blow to labor organizing efforts. 📺 Albertsons Media Collective retail media network is debuting Collective TV, a solution that enables participating advertisers to target, measure and optimize campaigns across streaming, digital video, and soon, linear TV. 📉 US wholesale prices fell in May for the second time in three months — thanks partly to lower gas prices — in perhaps another sign an upturn in inflation earlier this year is fading. #retail #retailnews #economy #DailyRetailNews

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Report: Blank Apparel Market Will Be Worth $21.91 Billion By 2032: https://bit.ly/3RuwVNP Increased wealth and fashion trends are major drivers for the blank apparel industry.

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Department Stores Ranked by Sales According to the U.S. Census Bureau, the share of department store sales of advance retail sales was about 14 percent in 1993. Today, that number has dropped to less than 3 percent. While retail analysts cite several factors for this change — such as the rise of Walmart and Amazon — one thing is clear: the department store channel is unrecognizable today. Through consolidation, acquisition and bankruptcy, the nameplates of high-end, regional and discount department stores in the U.S. that have vanished include Abraham & Straus, Ames Department Stores Inc., Bradlees, The Bon Marché, Filene’s, Hecht’s, Kaufmann’s, E. J. Korvette, Lord & Taylor, Marshall Field’s, Mervyn’s and Robinsons-May, among many others. Globally, however, the department store format is doing well. In #China, for example, the channel has seen sales double in the past five years, with 30 percent of urban shoppers visiting department stores at least once a week, according to Mintel. (Although department stores in the #UK have declined, Debenhams, House of Fraser, John Lewis Partnership) In Asia, though, many department stores are different than what shoppers would find in the U.S. Smaller and more experiential formats are all the rage. WWD culled data from S&P Capital IQ to create a list of the top 50 publicly traded (or with public debt) global department stores — as categorized by the firm. The ranking is by sales for the trailing 12 months as of May 22, 2024. Market capitalization is also listed. Topping the list was Macy's with $23.7 billion in sales. Taking second place was Arcandor AG with $22 billion. Arcandor is a German holding company formed from the merger of Karstadt Warenhaus AG with Quelle AG. Kohl's came in third with $17.5 billion. Thank you to WWD and Arthur Zaczkiewicz, MSW for publishing this list. The image shows the top 25 #departmentstores; for the rest... read WWD. #retailing #brands

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🧟‍♀️ It struck me that Modern Retail’s recent article on DTC Zombies references two brands (Feat and Outdoor Voices) situated within the athleisure apparel space. Just as retailers anticipated a permanent shift from in-store shopping to e-commerce after the pandemic it was expected everyone would continue wearing athleisure at the same frequency after lockdowns. 📈 Projecting market demand for athleisure is challenging because it sits in the in-between spaces. Athleisure blurs traditional clothing lines, raising questions: Are hoodies and sweatpants athleisure? What about t-shirts? Is loungewear indoor athleisure or a separate category? Is “Bad Sandy” wearing a leather jacket and leggings at the end of “Grease” athleisure? The definition is fluid, influenced more by styling and usage than by distinct categories. 👗 While many women still wear yoga pants beyond the mat, there’s also a resurgence in tailored bottoms, exemplified by Aritzia’s wide-leg trousers. Dresses and skirts have made a comeback with a return to more careerwear and occasion dressing. Women consumers are embracing a post-pandemic wardrobe era with more distinctive outfitting propositions than 4 years ago. 🧘🏻‍♀️Of the upstart DTC brands described as athleisure in recent years, only Alo Yoga is the major competitive threat to Lulu’s women’s business. Not even Nike or adidas have been able to pull that off with apparel, though they have tried. Alo is smaller in volume than Lulu, but growing 30% YoY with a higher proportion of women’s consumers. Gap Inc. has also successfully evolved Athleta from a catalog business (old-school DTC) into a growing omnichannel concept that exclusively serves women and girls. 🏃🏾‍♀️Lululemon may have popularized leggings as casual wear, but it remains rooted in its athletic heritage, evident in its partnerships with Team Canada at the Olympics. Alo Yoga and Athleta’s very names indicate that activewear is the core of their brand. The latter has even attracted high-profile former Nike athletes Allyson Felix and Simone Biles as brand partners. 🎽 While at first glance DTC athleisure may be seen as a fading opportunity, Lulu Lemon, Alo Yoga, and Athleta are all DTC brands leading in the space. This would suggest that winning in DTC athleisure is less about positioning a brand in the in-between spaces but rather winning with women’s performance apparel. #merchandising #sportswear #athleisure #trends #DTC #fashion

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The average return rate for online apparel stores stands at 24.4%.

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Private label footwear is an interesting discussion. I was surprised to hear REI getting out of making their own footwear. It looked good and I think offered a well-branded, unique approach offering some good value and performance (Vibram outsoles, etc.). There seemed to be an authentic story and reason to exist. Often private label is synonymous with cheap. Footwear in particular can be hard to execute well when it's at a very competitive price point, often with a large SKU offering and has the realities of tooling costs and technical development. Most commonly private label footwear is pawned off to a trading company to stick a logo on "knock-off" designs with open tooling produced at a questionable quality and performance standard. But I think private labels can compete. My first experience in footwear was with Power Footwear, possibly the largest global private label - a "house brand" of Bata Group. It showed me it is possible to craft real performance with value in mind and we did so with design as a strength. Original tooling, original technology, original design. Decathlon is also doing it really well. Some of the latest KIPRUN products I think can go head to head with Nike, Adidas, etc. Amazing design and cutting edge performance and sponsored top athletes. They have turned in-house resources and brands into a showcase for products that bring consumers into the stores. The whole point of private label in the first place. What do you think? Can private label footwear exist in today's retail landscape where a brand is more than product and needs to be supported by marketing, social, and the full experience? Do consumers want private labels? Do they know/care they aren't "real" brands? --- I’m the owner of The Directive Collective footwear design consultancy. We make great footwear, not just great sketches. #design #footwear #footweardesign

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🔥 Hot Off the Press! 🔥 Dive into my latest column in TJC's Summer Issue! "9 Strategies to Elevate Your Customers' In-Store Experience." Running a successful jewelry retail business requires continuous innovation and strategic approaches to attract and retain customers. Here are effective ways to expand your business by enhancing your overall customer experience: 1. EMBRACE VIRTUAL SELLING: Explore virtual selling options by offering virtual appointments and creating sales videos. Even post-COVID, virtual selling remains a successful method to connect with customers. 2. PROVIDE FREE WATCH BATTERIES WITH A TWIST: Offer free watch battery replacements while customers wait. This low-cost service allows customers to explore other items in your store while their watch is being serviced. This simple gesture can lead to additional sales. 3. COLLABORATE WITH INFLUENCERS: Partner with social media influencers or local celebrities who align with your brand. Hosting influencer events generates free content for your store and expands your reach to their followers. Influencers can help promote your products authentically and engagingly. 4. HOST EVENTS STRATEGICALLY: Hosting events can contribute up to 10% of your annual sales. Collaborate with local businesses, offer targeted marketing based on past purchases, and invite vendors to showcase their full lines or pieces created exclusively for your store. 5. DEVELOP A LOYALTY PROGRAM: Implement a loyalty program to reward customers for their ongoing support. Exclusive discounts, early access to collections, and special perks create incentives for repeat purchases and build long-term customer relationships. 6. EXPAND INTO CUSTOM JEWELRY DESIGN: Differentiate your store by expanding into custom jewelry design. Find a supplier that offers unique customization options and set yourself apart in the market. 7. PARTNER WITH WEDDING AND EVENT PLANNERS: Establish partnerships with wedding and event planners to become their preferred jewelry provider. Offer promotional discounts for their clients, provide custom jewelry for special occasions, and collaborate with florists to display fresh flowers in your store. 8. COLLABORATE WITH LOCAL PHOTOGRAPHERS: Partner with local photographers to offer free or discounted engagement sessions. This collaboration not only attracts potential customers but also positions your store as the go-to destination for wedding-related jewelry. 9. ENHANCE THE IN-STORE EXPERIENCE: Focus on personalized service, knowledgeable staff, and aesthetically pleasing displays. A positive in-store experience encourages customer loyalty and word-of-mouth referrals. Stay innovative and adapt to your target audience’s evolving needs and preferences. Creating memorable experiences will contribute to building a strong and loyal customer base. Ready to take your jewelry retail business to the next level? Let's elevate your customer experience together! 🌟

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Happy Hump Day LinkedIn Network Perfect example on distancing your core audience by portraying yourself as been cool ! VF Corporation purchased Supreme with the objective of tapping into the GenZ & Millennials and lost $600 Million in the process because it deviated from its core DNA. (Canalization of Vans was a major factor) Not understanding your audience has always been the largest nail in the coffin for several M & A post covid. EssilorLuxottica is plunging into street wear with a clear understanding of its audience which includes Oakley , Rayban Sun Optics (I) Ltd , etc. One thing which is clear, James Jebbia remains the driving force behind the brand and could potentially use Luxottica resources & technology to tap into new markets, new designs, etc. The big question remains whether Luxottica will create a bridge to further the growth of Supreme and share its technology & resources. Because, If they don’t, then this could potentially be another shareholder disappointment and a costly venture. #vf #supreme #luxottica #audienceunderstanding #sharingresources

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Are we in the relaunch era? Walmart relaunches No Boundaries Kohl's relaunches Limited Too Macy's relaunches Epic Threads The timing of all of this on one hand makes perfect sense – parents are shopping earlier than ever for Back-to-School. …but why are these billion-dollar brands reviving private labels? Why now? Walmart $642.6 B Net Sales Macys $23.1 B Net Sales Kohls $16.6 B Net Sales Is it because they want to ride the private-label wave? Is it the nostalgia wave of Millennial parents shopping for their children? Is it a creativity issue? Similar to movies, we are seeing remakes to classics or sequels to hits more and more… What makes now different than 20 years ago? Regardless of the reason, consumers and retailers are at an inflection point. Social commerce is here. Small communities tied together by a common hobby or fandom are here sharing secrets. Competition is coming from so many angles. Retailers need to clean-up shop, and refocus on value (of course, value being relative). Walmart relaunches No Boundaries at unbeatable prices. They win the price game at a time when shoppers are trading down, and off-price retailers are winning. Macy’s and Kohl’s… we are watching closely! #retail #apparel #privatelabel #relaunch #value #pricegame

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