Scott Tannen

"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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Here are some interesting stories from the world of retail for Tuesday, June 4: 👕 Consortium Brand Partners is nearing a deal to acquire Outdoor Voices, the maker of athletic apparel. The deal is occurring through an assignment for the benefit of creditors, known as an ABC. 🧑🏼‍🦽 Anthropologie will introduce its first foray into adaptive apparel via a collection of eight of its existing bestsellers reworked to better fit the lives and needs of members of the disabled community. 👩🏼‍⚖️ Washington state has agreed to pay law firm Munger, Tolles & Olson LLP up to $2.5m for its work on the case to block Kroger's $25bn acquisition of rival grocer Albertsons. The state filed the lawsuit in January. 🥦 What many consumers don't usually associate with today's food co-ops are low prices. However, changing values and economic pressures have pushed natural food co-ops to focus much more on affordability. 🚚 Nordstrom has promoted Alexis DePree to chief operating officer. DePree joined Nordstrom four years ago as executive vice president and chief supply chain officer, after stints at Amazon and Target. 🍌 Banana Republic is debuting a more elevated look at its remodeled New York City flagship store. The 17,000-sq.-ft. two-story space has been redesigned in collaboration with architect and interior designer Noa Santos. 👨🏻‍💻 Retailers hate that you buy things on your laptop. People often prefer bigger screens and keyboards for pricier purchases—but merchants have more levers to pull on mobile, notes The Wall Street Journal. 🤖 Amazon is using artificial intelligence to scan items for defects before they are shipped. The tech uses a combination of generative AI and computer vision technologies to help uncover defects before products are dispatched. 🍞 Could that slice of Kroger brand carb-conscious bread really contain only 30 calories? The answer, according to a new lawsuit filed by a pair of California prosecutors, is no. 📉 SpartanNash sees weaker results as sales to Amazon plummet. The grocery wholesaler and retailer recorded declining net and comparable-store sales during Q1 for the second quarter in a row. 🇬🇧 The UK's retail sales inched higher in May, rising 0.7% according to the British Retail Consortium. Food sales boosted the headline improvement, while non-food sales were lower on year. 🎶 Spotify is testing the loyalty of its customer base by raising prices for the second time this year as it aims to become more consistently profitable, sending shares higher in early trading. 📈 Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, said consumers would rather see the economy fall into a recession than to continue to suffer the pain of soaring prices. 🍤 Rubio's Coastal Grill, citing rising business costs, abruptly shuts down 48 restaurants in California. The move came two months after the state’s $20 an hour minimum wage took effect for fast-food employees. #retail #retailnews #economy #DailyRetailNews

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The state of the Industry has obviously changed post pandemic. So has the demographic of toy consumers. 3 years ago when I entered the toy space, I not only heard No like it was going out of style, or had companies pretend to be interested in working with me while pilfering my ideas to apply to their products already on the market, yes you read that right, but I kept being told I had to have an outrageous following before they'd have a conversation. Do I agree that manufacturing is expensive? Absolutely. Do I think that a brand owner should have done the work necessary to establish their brand? You bet! Do I think you need 10s of thousands of followers on socials to have a successful brand? Heck No! I feel like this ideal is archaic. I say this as someone who had over 500 followers on fb during our first plush launch and sold 1,500 of the 2,000 made thru just that dtc sales channel. No paid marketing. No mass market exposure and less followers than units sold. Because I have experienced this first hand is why as I launch a new business venture I have the confidence to work with new AND established brands. Im confident in my decades of experience and knowledge in this area. We all start somewhere. And just because the audience for the Mattels of the world today, were not present when they started, these magnates also experienced the same thing all us noobs are now. Do not let those who will never be invested or have interest in your brand, make you think you're not enough. Show them who you are and watch your brand grow!

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I have suggestions to help fashion ecommerce: The demand for functional fashion is on the rise, and pockets are leading the charge. The Wall Street Journal's article, "Women’s Clothes Finally Have Pockets. What Took So Long," highlights the evolution of women's garments, now featuring pockets that offer both utility and style. This shift reflects broader societal changes, promoting equality and recognizing women's active roles in public and professional spheres. As an avid supporter of pockets, I appreciate how they can be designed to either stand out with a cargo style or blend seamlessly into the garment's design. For e-commerce retailers, this trend presents a significant opportunity to enhance the online shopping experience. Here are some actionable insights: 1. Add a "Pockets" Filter: Introduce a filter option specifically for pockets, allowing customers to easily find clothing items that meet their functional needs would improve navigation and discoverability. 2. Detailed Product Descriptions: Clearly indicate the presence and type of pockets in product descriptions. Don't rely solely on images; specify the functionality and design of the pockets. Added benefit of improving SEO. 3. Highlight Functional Fashion: In your marketing and product listings, emphasize the practical benefits of pockets, supporting the growing trend towards functional equality in fashion. By integrating these features, retailers can cater to the increasing demand for practical and stylish clothing, ensuring a better shopping experience for their customers. If you make these updates please let me know any data insights.

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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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#HotTake: Retail stores aren’t a shortcut to success. Retail offers bigger POs, visibility, and cash flow Yet, it doesn’t ensure brand sustainability Case in point: JLo Beauty Despite celeb status and prime placement at Sephora, She faced challenges resulting in a US exit Retail alone doesn’t secure loyalty or repeat sales Placement isn’t guaranteed forever For lasting success, think beyond the retail PO Some markers of a sustainable brand include: Authenticity, community, differentiated formulas, and true fans Building a lasting brand legacy requires more than a retail presence – 👋🏾 Hi, I’m Monique, a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale at big retail. If you are ready to scale and invest, book a discovery call, and let’s see if we can work together.

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The online apparel industry is grappling with a high return rate of 24.4%, a figure that has risen by over 50% since 2020. A significant portion of this returned inventory becomes unsellable and is often destined for landfills. Revive is a data-driven platform designed to convert this excess inventory into sellable assets. The company will undertake the necessary adjustments—be it repairs, cleaning, or repackaging—to restore the distressed inventory to a sellable condition, enabling it to be listed and sold through any channel preferred by the brand. This approach spares brands and retailers the hassle of processing, storing, and disposing of these items, allowing them to recover a portion of the original value that would otherwise be completely written off, thereby directly enhancing their profit margins and bottom line It is estimated that the total value of inventory poised for discard is nearly $1T. To date, Revive has processed merchandise with a total value of $23M. AlleyWatch caught up with Revive Founder and CEO Allison Lee to learn more about the business, the company's strategic plans, recent round of funding, and much, much more...

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Congratulations to StandUp Ventures portfolio company Max Retail on their $15M USD Series A led by Nosara Capital after an exceptional year of growth! Oh how I love optimization problems, and especially ones that support entrepreneurs 😭 Independent retail shops sit on an average of 22% excess inventory at any given time, representing ~$50K-$200K of financial losses each year. For small businesses that are often the pillars of their communities (& frequently women-owned!), these losses are HUGELY impactful. Before Max Retail, options to recuperate them were extremely limited (discounting items far below cost, sending to consignment, or donating for a tax write-off). Alone, a single store in a small town with one or two sizes of a SKU isn't meaningful enough to engage with for zero inventory marketplaces or online retailers, but in aggregate, Max Retail's network of 2,000+ retailers and real-time data acts seamlessly as a single source of new and often hard-to-find supply. Bringing these items online exponentially increases the pool of potential buyers, resulting in immediate cash relief and payouts 4-8x higher than the status quo of liquidation. And the proof is in the pudding. 89% of active sellers are selling inventory every single month, with some sellers making upwards of $250k per year. GMV has exploded 4x YoY, with an incredible 40% of new retailer leads coming from existing customers. The macro omnichannel opportunity for real-time, SKU-level, inventory, pricing, and sales data across the normally siloed brick-and-mortar independent retail market is limitless. Alongside AI-powered pricing and item allocation engines, Max Retail is able to pay sellers the maximum value possible for excess inventory, and help retailers understand live inventory performance and market value of every item they list. This ultimately underpins a foundation for a more efficient and productive market, getting the right products to the right buyers at the right time, place and price. We're so excited to continue supporting the INCREDIBLE Melodie van der Baan alongside the wonderful M13, The Artemis Fund , and Rethink Impact, LP. Onwards and upwards! 🚀 #fundingnews #seriesa #retaildata

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𝐑𝐞𝐭𝐚𝐢𝐥 𝐦𝐞𝐞𝐭𝐬 𝐫𝐞𝐚𝐥 𝐥𝐢𝐟𝐞... A recent RetailWire discussion ponders whether Walmart can take on Trader Joe's with its latest private brand launch, bettergoods. My take was that the brand seemed more Target-esque (shades of Good & Gather) and that it was about time Walmart upped the ante with a "better" private brand in grocery. This weekend, I headed to the freezer to grab my new favorite plant-based ice cream only to find I was out of it. Keep in mind that 1. I'm plant-based but wasn't always. I know the standards analogs need to meet. 2. I've been hitting this ice cream several times per week. It's rich, not too sweet, with a perfect consistency, even after days in the home freezer. 😋 I started backtracking to remember where I bought it. Was it Whole Foods? Fresh Market? I remembered the bright green packaging...very "Target" - that must be it (my more frequent jaunts to Target for plant-based goods still surprise me). I wasn't completely sure so I headed to the recycle bin. Mystery solved. It was - Walmart's "bettergoods" plant-based ice cream. 😯 Well played, Walmart. Well played! ✅ 👏

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🚨 Amazon’s Bold Move into Luxury Fashion: What It Means for the Industry 🚀 The retail landscape is buzzing with the news of Saks Fifth Avenue and Neiman Marcus Group merging, creating a luxury retail powerhouse backed by Amazon. This $2.65 billion deal, forming Saks Global, is set to revolutionize the luxury fashion industry in ways we’ve never seen before. Why This Matters: Amazon, a titan in e-commerce, logistics and technology, is now officially stepping into the luxury fashion arena. This move could drastically reshape their business model and the luxury market. Here’s why: 1️⃣ Logistics and Efficiency: Amazon’s logistical expertise is unparalleled. By integrating its advanced logistics with Saks Global’s operations, we can expect significant improvements in supply chain efficiency. Faster delivery times and better inventory management will enhance customer satisfaction and reduce costs. This synergy could mean that customers will soon be able to purchase luxury items like a Chanel bag with the same ease as everyday essentials. 2️⃣ The Power of AI and Data: Amazon and Salesforce bring cutting-edge AI and data analytics to the table. AI can personalize the shopping experience, predicting customer preferences and tailoring recommendations. This level of personalization is crucial in luxury retail, where customer experience is paramount. With Amazon’s data prowess, Saks Global can better understand their customers, optimize pricing strategies, and manage inventory more effectively, ensuring high-end pieces don’t end up in discount bins. 3️⃣ Technology Integration: Amazon’s involvement means more than just financial backing; it’s about leveraging technology to future-proof the luxury brands. As Marc Metrick, CEO of Saks Fifth Avenue’s online operations, mentioned, the aim is to gather high-quality customer data and offer more personalized options. Enhanced tech capabilities will streamline operations from the warehouse to the customer’s doorstep, making luxury shopping seamless. 4️⃣ Market Reach and Customer Base: Amazon’s vast customer base is a goldmine for Saks Global. This deal allows Amazon to penetrate the high-end market, catering to a demographic that values exclusivity and quality. For luxury brands, having access to Amazon’s broad customer reach means new growth opportunities and expanded market presence. Conclusion: This merger isn’t just about consolidating two luxury giants; it’s about transforming how luxury retail operates in the digital age. While some may fear that this could dilute the exclusivity of luxury brands, it’s an opportunity to innovate and adapt. The luxury sector has been cautious about embracing e-commerce fully, but this merger signals a shift towards a more tech-driven future. As consumers, we stand to benefit from improved services, personalized experiences, and greater accessibility to luxury products. #LuxuryFashion #Ecommerce #BusinessStrategy #Amazon #SaksGlobal #RetailInnovation

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Get to $1MM in Sales for your Fashion Brand with Wholesale! Everyone wants to get into Saks, Anthro and Revolve and other large retailers, but one BIG question to ask is: Can you afford to do wholesale? It’s crucial to understand the margins for wholesaling your line. Typically, you'll need to give wholesale accounts a generous margin for them to make money. At Alala, we use aim for a 60-65% margin when pricing for wholesale and then a 2.25-2.5x markup from wholesale to retail. If you don’t have strong COGS, you might end up losing money going wholesale, especially when factoring in other costs like warehousing and shipping. Get your COGS under control before considering selling to other stores. At the very least, try to break even initially. More insights coming soon! Subscribe to my Substack for weekly newsletters about how to grow your fashion brand to $1MM in sales. #Wholesale101 #Margin #COGS #FashionBusiness

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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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Foot Locker's newly redesigned store doesn’t solve all of its problems, but it is a very good start at remedying some of the ills that have plagued the brand.   Most of the estate looks tired and shops are not conducive to driving sales as they are too functional and don’t always allow Foot Locker to showcase product effectively. This deters customers, especially younger ones who like modern and exciting environments. However, it is also a turn-off for brands like Nike which are conscious about how their products are displayed.    The refresh also brings Foot Locker into line with other retailers. The bar for store design has been set far higher thanks to companies like Lululemon or Vuori, and even Dick’s is investing more in its stores – especially the new House of Sport locations. Its commitment to updating 900 shops shows that Foot Locker does not want to be left behind.    In my view, the plans will also help CEO Mary Dillon, as they are solid evidence to investors that things are changing. Foot Locker has had a string of very bad numbers so Wall Street is now keen to see signs of material change.   However, new stores also need to be accompanied by better sales numbers. This might be more difficult to deliver quickly in a sneaker market that is still very soft and where several brands are still trying to push direct to consumer sales. Thanks to Insider Retail for including more of my thoughts in this piece... https://lnkd.in/eYNiB5vM #retail #retailnews #sneakers #stores #design #sportinggoods

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**Has the FTC gone MAD??** The Federal Trade Commission looks to block Tapestry's acquisition of Michael Kors and Capri Holdings Limited. Are we afraid there will be a monopoly on affordable luxury handbags? 🤣 🤣 My 12 year old niece can get a handbag made and be in market in 60 days. There's no barrier to entry from Coach or kate spade new york or Michael Kors to create a anti-competitive environ for other accessories and apparel companies. The retail and CPG industry is a challenging place and they need economies of scale to compete, and heck survive. SURVIVE! Dear FTC: Learn a thing or two about retail before you do something silly like this. Can we get Neil Saunders, and Rick Watson or Jason Goldberg or Jeremy Horowitz' down to Capitol Hill to share with congress how HARD retail is? 🤣 The combined merged company under Tapestry would have $12B in total sales. Google makes $12B every 2 weeks. Here’s some advice for The FTC, how about focus on the real predators of retail. Amazon is doing so much anti-competitive nonsense. How about Chinese companies Temu and Shein and their loopholes to ship goods to the US circumventing tariffs?? Focus on Big Tech FTC, they're the ones swallowing up the economy and stymying competition. Google, Amazon, Meta, Microsoft, Apple. Focus there, stay there...maybe break them up, they are killing innovation and crushing smaller companies left and right. When the FAANG behemoths buy companies, they are generally high tech and proprietary, with huge moats. And then the FAANGs get predatory and work on crushing their competitors. Retail brands can't do that Brands cannot create moats They can't crush competition The FTC failed 3 times blocking Meta and Microsoft acquisitions last year. I guess they need a W so they're picking on some smaller who doesn't have 40 mega-lobbyists in DC Is there a petition we can sign somewhere?? I have no stake in this merger, but please Like, Reshare if you agree with me so maybe we can influence the FTC to stand down https://lnkd.in/g6b-rQts

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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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Somehow I missed this Roblox report on the state of digital fashion, but one finding really stood out to me. For someone like me who believes very strongly in the necessity of blockchain for ownership in the "metaverse," it's quite eye-opening to think about GenZ's perspective on digital ownership and how it's likely to be a driving force in digital fashion moving forward. From the report - "The launch of Limiteds this year highlighted Roblox users’ demand for exclusive and rare items, as evidenced by most Limiteds reselling for more than their original cost." The report highlighted some specific examples, like the Monstercat and WhoseTrade six single-edition necklaces. Each selling within minutes, including the Ruby Pendant, acquired for 1,000,001 Robux (approximately $10,000), the highest initial Limited sale to date. So, do you think this is Roblox specific or representative of a wider trend, where people are willing to buy limited editions without the underpinning of blockchain? https://lnkd.in/gWXq24Ju #web3fashion #metaversemarketing #retailmarketing

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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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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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