Matthew Fink

🚀 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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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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👟🌟 Exciting insights! Dive into the latest findings from the 2024 Spring U.S. Footwear Consumer Survey by AlixPartners & Footwear Distributors and Retailers of America (FDRA), showing a strong shift towards athletic shoes this season. As consumers prioritize branded stores and seek out promotional deals, the landscape of footwear spending is evolving dramatically. Discover how these trends are reshaping the industry and what it means for your brand. Full details in this insightful article by my colleagues Ryan Poole and Bryan Eshelman! #FootwearTrends #ConsumerBehavior #RetailInsights #AlixPartners #WhenItReallyMatters https://lnkd.in/evaHipdA

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Join us on July 25, 2024, for the RetailStat Footwear Retailers Webinar. We'll analyze key footwear retailers, focusing on comps, EBITDA margin, and credit ratings. Learn about trends and how leading companies navigate today's market challenges and opportunities. Register now: https://shorturl.at/I7FHI #RetailStat #FootwearRetail #Webinar #Finance #RetailTrends

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Shares of Abercrombie & Fitch Co. are up more than 500% over the last year. How? And can they keep it? The secret(s) to success: A new product line, a more body-positive rebrand, and a new #footprint strategy. #Abercrombie #AbercrombieAndFitch #RetailTrends #FashionRetail #RetailNews #RetailInsights #RetailAnalysis #MarketWatch #RetailStat

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Aloha Friday 🤙🏼 Here are some interesting stories from the world of retail for Friday, May 31: 👖 Gap shares rallied more than 20% in the extended session Thursday after the retailer reported first-quarter earnings and sales well above investors’ expectations, raised its guidance for the year and pared down its inventory. 🏬 Kohl's shares plunged as much as 25% on Thursday after the retailer reported a surprise first-quarter loss and lowered its forecast for the year. The department store chain saw a 5.3% drop in net sales. 🥫 Costco Wholesale reported fiscal third-quarter profit, revenue and same-store sales that all beat Wall Street forecasts, but shares of the membership-based warehouse retailer pulled back from a record high. 💄 Ulta Beauty earnings that showed the effects of a slowdown its CEO had previously warned about. Comparable sales increased 1.6% year over year, a stark slowdown from the same period a year earlier. 👗 Nordstrom shares fell 5.6% in extended trading Thursday after the company reported a wider-than-expected first-quarter loss of $39 million, although revenue topped analysts’ estimates. 📺 Best Buy has reported the 10th straight quarter of same-store sales declines, a reported 6.1% drop for February, March and April. Its total revenue of $8.85 billion was a little lower than Wall Street anticipated. 👟 Foot Locker’s turnaround is starting to bear some fruit.  The sneaker giant saw comparable sales decline 1.8% during its fiscal first quarter, far better than the 3.1% drop-off that analysts expected. 💵 Dollar General reported better-than-expected profit, sales and same-store sales for its first-quarter as more customers shopped its stores for groceries and other essentials. 🥡 Amazon customers in the US can now order takeaway deliveries from Grubhub without leaving the tech giant’s app. The deal is part of a deepening relationship between the tech giant and Grubhub. 🚫 Illinois set to end grocery tax. Legislators have approved a state budget for 2025 that eliminates the 1% tax, paving the way for Governor JB Pritzker to sign it into law. 👓 Innovative Eyewear has released an Eddie Bauer Smart Eyewear collection. The collection includes four styles and features voice access to ChatGPT. The glasses have built-in Bluetooth microphones and speakers for music and calls. 🥖 Subway, the restaurant chain with the most locations in the US, has sold $3.35 billion of asset-backed bonds to help fund its buyout by Roark Capital Group, in what is the largest securitization of its kind on record. 📦 The Federal Aviation Administration (FAA)is giving Prime Air additional permissions that allow it to operate drones for more deliveries in a wider area. 🇫🇷 Pharmacists in France have gone on strike for the first time in a decade, closing around 90% of pharmacies across the country. #retail #retailnews #economy #DailyRetailNews

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Here are some interesting stories from the world of retail for Thursday, May 30: 👖 Shares of Abercrombie & Fitch Co. continued their record run after the apparel retailer reported another quarterly earnings beat and raised its sales growth outlook, amid continued strength in the Abercrombie brand. 🏀 DICK'S Sporting Goods kicked off the year with net sales of more than $3 billion in Q1, an increase of 6.2%. Comparable sales in the quarter grew 5.3%, on top of 3.6% growth the year prior. 🦅 American Eagle said it’s making gains in boosting profitability as it works to improve its product assortment and tweak operations. Still, its fiscal first-quarter sales came in weaker than Wall Street expected. 🐹 Chewy smashed earnings estimates for its fiscal first quarter on Wednesday, announced its first share buyback program and signaled a recovering pet market. 🌳 Dollar Tree Stores announced it has acquired leases for 170 of 99 Cents Only Stores stores out of bankruptcy in Arizona, California, Nevada and Texas. Dollar Tree will reopen these stores with its own products under its brand. 🥾 Dr. Martens plc has announced a swathe of cost-cutting plans, after the bootmaker’s bottom line was hit by plummeting demand in the US last year. The London-listed firm hopes to save up to £25m in the coming financial year. 🏥 Walgreens said it will slash prices on 1,300 items across its drugstores — the latest big retailer to enact discounts as consumers grow increasingly picky about where they shop in an era of stubbornly high inflation. 🐶 Petco names a new chief stores officer as the COO exits. The pet retailer said it eliminated its chief merchandising and supply chain officer role and named five people to its executive leadership team. 👟Italian luxury sneaker brand Golden Goose, which was valued at €1.3bn when acquired by Perimia in 2020, said on Thursday it aims to list on Milan's Euronext next month. 💵 Cash register outages and internal system failures at Walmart have led to widespread mispricing, with customers being overcharged for certain items. The technical issues on March 19th affected 1,600 stores. 🌭 Americans are now prepared to spend nearly $6 for a hot dog. The summertime classic has climbed in price by 7.1% during the past year, according to the latest government figures. 🍔 A top McDonald's executive on Wednesday decried poorly sourced reports that the fast-food giant has hiked its prices faster than inflation. He also noted that an $18 Big Mac meal is exception not the rule. 💳 Visa and Mastercard have agreed to pay $197m to resolve a class action by millions of consumers accusing the financial payment companies of keeping cash access fees artificially high. 🍪 Subway’s footlong cookie is back. Following a four-month long disappearance, Subway announced Wednesday the “triumphant return” of the oversized chocolate chip cookie. #retail #retailnews #economy #DailyRetailNews

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What time do you wake up in the morning? CEOs and top execs from leading footwear brands tell us what time they start their days.

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With the takeover bid for Macy’s simmering away, there has been a lot of focus on the merits of public versus private ownership of retailers – especially legacy players like department stores. One of the big problems with public ownership is short-termism. Most investors want quick returns, and they expect fast progress on initiatives. This pressure isn’t always a bad thing, but it can drive short-term decision making where executives are so focused on the next quarter that they lose sight of longer-term goals. Capital investment can also be an issue, especially if it is directed to things that markets don’t hold in favor. The negative reaction of many when Target announced it was investing in stores is a case in point – although Target’s spending has now been thoroughly vindicated. Private ownership allows for more considered decision making, and it allows for longer term planning. But neither is it a savior. Without the pressure and scrutiny of markets it is very easy to become sluggish and complacent. The Nordstrom family is, no doubt, conscious of all these arguments as they finalize their bid for taking the iconic chain private. Their success hinges on convincing the committee assessing the privatization of the fair value of their bid, and that it beats any competing offers. My view is that the family will have to pay a fairly hefty price to make this deal go through. Ultimately, as a private company Nordstrom will face exactly the same issues as it does now. However, the response to those challenges may be different, and more flexible, and that’s what will ultimately determine whether or not privatization improves the fortunes of the chain. More of my thoughts are in this piece by Just Style... https://lnkd.in/gQCDhGa3 #retail #retailnews #departmentstores #Nordstrom

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What are some of the KEEN (Side) Effects of purchasing KEEN boots? Max Romey gives a quick overview. Check out our full 2023 Impact Report at: https://lnkd.in/gKDyjfm7 #KEEN #KEENEffect #ConsciouslyCreated

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“Our new store concept cements Foot Locker’s position as the leader in sneaker culture by offering an engaging, cutting-edge shopping experience for the sneaker passionate,” Foot Locker’s president and CEO Mary Dillon stated in a press release.  I spoke with Inside Retail US and Nicole Kirichanskaya and what this all means for the 👟 retailer. Some of my insights: Foot Locker is headed in the right direction with their ’store of the future’ strategy. In fact, it is long overdue. This strategy will put a spotlight on product obsessed sales associates, hyper-localized assortments as well as curated experiences. Rethinking the physical store will get Footlocker to take customer insights and inform product and store decisions based on location and community. This will make every store different and get customers excited about visiting the retailer. The sneaker industry has lost a lot of its luster. Brands like Nike and Under Armour are overstocked with SKUs, and adidas would have had a rough year if it wasn’t for the Samba. Additionally, there are more brands competing for market share. On and HOKA have taken the running community by storm. Brooks Running is focused on innovation and wholesale while PUMA Group and Reebok are relying on celebrities as creative directors to capture a new customer base. The hype around exclusivity and limited editions is not as exciting for consumers, and it will take a lot more than just the product to persuade shoppers to buy. Retailers like Footlocker have the upper hand if they reimagine the physical store as a destination for innovative and exciting experiences vs. focussing on pushing a handful of brands. It’s all about the customer and getting them to spend time in your store. Find the entire article here --> https://lnkd.in/ebzaEUam Shoutout to Neil Saunders and Marie Driscoll, CFA 🙌🏽 #retail #retailnews #footlocker #footwearnews #stores #cx #merchandising

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Saks parent company acquires Neiman Marcus, Amazon to be investor. Rachel Douglass for FashionUnited Key Takeaways: 🤝 In what has been a long-winded back-and-forth that has spanned multiple years, it is now believed that department store powerhouses Saks Fifth Avenue and Neiman Marcus Group are finally set to merge. 👨‍💻 It is further understood that marketplace giant Amazon is among the investors for the deal, alongside private equity firm Apollo and software company Salesforce. 🗣 Richard Baker, the executive chairman and chief executive officer of Hudson’s Bay, confirmed the news to WWD, to which he said: “I’m very excited. We’ve worked on this for over a decade. “We’ve had many discussions to buy Neiman’s at much larger numbers. It was too expensive before. It didn’t make sense. The pandemic happened. Neiman’s went bankrupt, but we finally got to a point where we were able to come to terms and do what we think is the right thing for everyone.” 📢 HBC has also confirmed the closing of a 1.15 billion dollar committed term loan financing from investment funds and accounts overseen by associates of Apollo, as well as a two billion dollar revolving asset based loan facility from a number of banks, including Bank of America. LEARN MORE: https://lnkd.in/dXUiEzcR #fashion #merging #amazon #saks

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What does the Saks x Neiman Marcus acquisition mean for retail? Hudson's Bay Company (HBC), the parent company of Saks Fifth Avenue, confirmed its acquisition of Neiman Marcus Group, including #NeimanMarcus and Bergdorf Goodman, for $2.65 billion. Interestingly, Amazon will invest in the merged company, SAKS GLOBAL, aiming to innovate in the luxury fashion space by leveraging its technology and logistics capabilities. The deal reflects the evolving retail landscape, where technological advancements and strategic mergers aim to enhance customer experience and drive value for stakeholders. What does this mean for retail? 🛒 Technological Integration: The partnership with Amazon and Salesforce will introduce advanced technology, such as #AI, to enhance the customer experience and operational efficiency. Amazon has been making strides into luxury fashion, including past efforts with the Council of Fashion Designers of America (CFDA), British Fashion Council, and luxury e-commerce, despite some setbacks with physical stores. 🛒 Luxury Retail Landscape Changes: The luxury fashion market has seen significant shifts, with larger brands focusing on direct-to-consumer (#DTC) sales and smaller brands diversifying through drop-shipping and retail media networks. DTC will be a key focus in our upcoming track for Re:Tech Disrupt, and we will certainly discuss this further. 🛒 Concerns about Market Competition: The consolidation positions Saks to compete primarily with Macy's. and raises potential anti-competitive concerns, particularly with the Federal Trade Commission (FTC). The merger could reduce bargaining power for brands, potentially leading to less favorable terms for smaller brands, as the consolidated entity might hold more leverage. 🔗 Read more in Vogue Business, link in comments. 🔗 Sign up for our upcoming Marketing & DTC Track coming up on July 16, link in comments. #Marketing #SaksNeimanMarcus #Saks #Amazon #LuxuryMarketing #DirecttoConsumer #RetailNews

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Rumors: Saks Fifth Avenue could be in talk with Neiman Marcus Group for a takeover. In this regards Saks’ flagship location in Manhattan (valued at 3.62Bn USD) could serve as a collateral to raise financial resources. Neiman CEO Geoffroy van Raemdonck firmly rejected such possibility: "no need” to sell the business. Both firms are leading retailers in United States for jewellery and luxury goods. #jewelry #jewellery #luxury https://lnkd.in/dP46VnM3

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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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Things are hotting up in the east vs west battle for global dominance of the premium department store space. Hudson's Bay Company owned Saks Fifth Avenue merging with Neiman Marcus Group further cements Richard Baker’s ambitions to create the ultimate global luxury department store conglomerate. How stable mates Hudson's Bay and GALERIA Karstadt Kaufhof GmbH will be involved in this is not yet clear but the involvement of tech behemoths Amazon and Salesforce in this move is the ultimate enabler for global consolidation in both the physical and digital space. Given the collapse of FARFETCH, the questionable future of NET-A-PORTER, and the resurrection of the department store as brand aggregator, there is a void here to be exploited for sure. Currently the Thai giant Central Group leads the field in this, linking Selfridges group, THE KADEWE GROUP, DeBijenkorf BV, Brown Thomas Arnotts , Rinascente ILLUM GLOBUS CRG and Robinsons Retail Holdings Inc. On a market by market basis there has been little cross over, other than Germany, but the digital space could see a direct battleground. Perhaps a purchase of YOOX NET-A-PORTER might be a logical place for one of them to go next? https://lnkd.in/eaxV8AXX

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Aloha Friday! 🤙🏼 Here are some interesting stories from the world of retail for Friday, June 28: 👟 Shares of Nike tumbled after hours on Thursday after the athletic-wear giant dimmed its expectations for the year as it grapples with wobbling consumer demand and cuts production on lower-selling classic sneakers. 🏥 Walgreens is planning to close more of its roughly 8,700 stores in the United States, its parent company said on Thursday, after the retail pharmacy giant reported third-quarter earnings that fell short of analyst expectations. 🚜 Tractor Supply Company said it is done with corporate diversity and many environmental efforts, a striking reversal as more companies face criticism of these initiatives from conservative activists. 🏬 Saks Fifth Avenue is expanding its luxury personal shopping and styling service through new standalone locations. The Fifth Avenue Club concept will expand the total number of standalone locations to 20 by the end of the year. 🎯 Target plans to crack down on retail theft by lowering the threshold for how much shoplifters can swipe before employees are allowed to finally step in. The threshold will come down to $50 from $100. 👨🏼‍⚖️ Kroger chief executive Rodney McMullen told shareholders on Thursday that he is prepared to defend the company's proposed $25bn takeover of Albertsons as it heads to court to face antitrust regulators. 🥫 As Sam's Club opens more locations, it is trying to raise the bar for its own brand, Member’s Mark. The label’s makeover has become critical for Sam’s Club as it aims to close the gap with Costco. 🍉 Grocery inflation has cooled substantially since its 2022 peak. Despite the cooldown, surveys show consumers are still struggling to come to terms with how much food costs today. 🌮 Taco Bell announced Thursday that it’s entering the food wars battle with one of its biggest deals ever - the Luxe Cravings Box, a collection of its four of its most popular foods plus a medium drink for $7. 🩺 The pay-per-visit Amazon Clinic telehealth service is now Amazon One Medical Pay-per-visit. Customers now have two options when seeking care from Amazon One Medical: Pay-per-visit or a membership option. 👰🏽‍♀️ Adding another product category to its business, David's Bridal has launched its first shapewear collection, dubbed Shapewear DB Studio. Priced between $24.95 and $49.95, the collection is available in sizes small to 2XL. 🥤 Arizona Iced Tea launched in 1992 at 99 cents for a 22-ounce can. It still costs the same amount in 2024. If the price had kept pace with inflation  it would cost 124% more than it does today. 🧸 A stuffed Mothman plush figure appeared to have sold out on Thursday within hours of its release on the Build-A-Bear Workshop website. ☕️ Gloria Jean Kvetko, who expanded a namesake chain of coffee shops across the country, has died aged 82. #retail #retailnews #economy #DailyRetailNews

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THE SAKS-NEIMAN MARCUS MEGA-DEAL AND AMAZON'S UNDERGROUND PATH TO LUXURY Maghan McDowell for Vogue Business 💥 HBC, the parent company of luxury retailer Saks Fifth Avenue, has confirmed reports that its long-awaited deal to acquire rival Neiman Marcus Group — owner of Neiman Marcus and Bergdorf Goodman — for $2.65 billion is finally here. And as a pending investor in the merged company, Amazon has found a new path (or underground tunnel) into luxury fashion. 💭 “We’re thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,” said Richard Baker, HBC executive chairman and CEO, in a statement. “For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees. This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees.” 💥 An interesting development is Amazon’s involvement. Amazon will be an investor in and work with Saks Global “to innovate on behalf of customers and brands partners following the close of the transaction”, a release issued by HBC reads. This will give Amazon discrete access to luxury products, stores, sales associates and data. At the same time, the retailers stand to gain access to more sophisticated technology and logistics; Salesforce, which has been steadily rolling out generative artificial intelligence tools for retailers, will also become an investor. 👔 Amazon, the largest clothing retailer in the US, has for years worked to expand into luxury fashion, which has higher margins but is somewhat at odds with Amazon’s efficiency-over-style ethos. During the pandemic in 2020, it brokered deals with the Council of Fashion Designers of America and the British Fashion Council to start a new luxury stores division, recruiting brands including Oscar de la Renta, Jonathan Cohen and Adam Lippes. In 2022, it expanded that effort to include Europe, with brands including Christopher Kane and Elie Saab. It sponsored the CFDA awards in 2023. LEARN MORE: https://lnkd.in/eau7A69j #fashion #metaverse #ai #metaversefashion #investment #web3

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What's New to The Street... 👟📉 Nike’s recent warning has shaken European footwear stocks. On Thursday, Nike announced it expects revenue to decline by mid-single digits for the year ending May 2025. How do you think this projection will impact the footwear market? Share your thoughts below! ⬇️ 👉🏻Follow New To The Street for more! #nike #footwearstocks #markettrends #financenews #businessnews #business #news #newtothestreet

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