Valerie van Ogtrop

I enjoyed chatting with Inside Retail US about the FTC’s attempts to block the Tapestry x Capri Holdings Limited merger. As I told them, the decision does a great disservice to the retail industry and to American companies trying to create brand houses to rival those in Europe – at least in terms of scale. More importantly, however, the case is based on extremely poor logic and a misreading of how the market works. The FTC is meddling in areas that it doesn’t adequately understand. It all too often operates in a theoretical bubble that is divorced from reality. More of my views in the article… https://lnkd.in/eqXTmefT #retail #retailnews #regulation #luxury #handbags

16

Here are some interesting stories from the world of retail for Saturday, June 15: 📦 Kohl's is introducing a Return Drop service to stores nationwide: in addition to its Amazon partnership, the department store will now accept returns from brands like Carhartt, Hanes and Levi’s. 🎯 Target's total US retail market share, including online and store sales, has shrunk in categories that generate over 60% of its revenue. An indication the chain needs to work harder to retain customers. 👖 Superdry has avoided insolvency after shareholders voted to approve a £10m equity raise underwritten by chief executive Julian Dunkerton. The fashion brand said the deal provides enough liquidity of a turnaround. 👚 Secondhand apparel marketplace ThredUp is continuing to experiment with charging sellers a fee to send in items, as part of a strategy to fill its marketplace with higher-quality items. 5️⃣ Five Below’s net sales surpassed $3.5 billion in 2023, more than double five years ago. Despite an impressive few years of growth, things have taken a turn for the worse in 2024 and stock fell to a year low in the first week of June. 👗 Torrid CEO Lisa Harper said during an earnings call that the company is evaluating its brick-and-mortar footprint and wants to move to a 50-50 split between mall-based and non-mall locations in the future. 🕹️ Over the past two years, Hasbro has suffered from weaker toy demand, leading to layoffs and declining sales. But analysts at BofA said Wall Street hasn’t appreciated the potential of the toy maker’s digital-gaming business. ⛽️ Exactly two years ago Friday, gasoline prices peaked at a record of $5.02 a gallon nationally. Gas prices today are not cheap – but they are miles away from that point with the he national average for regular gas at $3.46 a gallon. 🚙 Advance Auto Parts said a hacker had accessed and was selling certain data that may contain Social Security numbers of job applicants and employees. 📉 US consumer sentiment fell for the third consecutive month in June, as Americans expressed concerns about their finances and persistent inflation, as per a University of Michigan survey. 🚫 SHEIN has unexpectedly canceled its upcoming pop-up store in Perth, Australia, scheduled for June 21 at Lakeside Joondalup Shopping Centre, just weeks before a new tax on fast fashion items takes effect. 🇶🇦 With Eid al-Adha approaching, retailers in Qatar are offering a wide range of promotions and discounts to attract shoppers. Discounts of up to 50% are being offered on clothing, shoes, accessories, and watches. 🏬 Thai retailer Central Group has agreed to acquire the remaining assets of KaDeWe Group, a chain of landmark department stores in Germany. 🐖 American hog farmers are betting on cash-strapped consumers to drive demand for pork as beef prices surge. #retail #retailnews #economy #DailyRetailNews

38

2 Comments

Here are some interesting stories from the world of retail for Tuesday, May 7: 🛋️ Shares of Beyond, Inc. — the parent of Overstock and Bed Bath & Beyond — fell after it reported a deeper-than-expected loss and said it was trying to draw more committed customers amid weak home-goods demand. 🚛 Kohl's’s is now offering same-day delivery via the Instacart app. Using Instacart, customers can place orders for same-day or scheduled delivery from 1,172 Kohl’s locations nationwide. 🎯 Target is expanding its partnership with Hudson's Bay in Canada, broadening the sales of its in-house Cat & Jack children's brand to include swimwear, outerwear, and shoes. The move comes after positive feedback. 🚚 Wholesale remains most profitable investment channel for brands. The channel, which is expected to grow 51% this year, accounts for about 60% of companies’ total sales. 🏬 A fourth Bloomie’s location is set to open in New Jersey this fall, part of the parent company Macy's ongoing strategy to tap into more luxury sales with a new small format strategy. 👷🏼‍♂️ Kroger is planning to spend approximately $45 million in 2024 to remodel 15 stores in Ohio and Indiana. Kroger is highlighting investments in its stores as it presses ahead with the Albertsons merger. 🍓ALDI USA, the American arm of the German-owned discount supermarket chain, has urged its suppliers to cut costs, increase production, and focus on sustainability to stay competitive. ⬇️ More than four-in-five consumer respondents (81%) have noticed shrinkflation, with three-in-10 (29%) having seen it very often since 2020 - according to a survey by Clarify Capital. 💄 Amazon said Monday that its Summer Beauty Haul event is returning next week. Amazon noted the sales promotion starts at 12am PST on May 13 and runs through 11:59pm PST on May 19. 🥩 Shares of meatpacking giant Tyson Foods plunged more than 9% — the stock’s worst day since August — after the company said persistent inflation weakened consumer appetites for meat biting into profits in the second quarter. 🍺 The European boss of Budweiser has said the brewer has learned to “stay in our lane” following a backlash over Bud Light’s work with a transgender influencer. 🧴 Chinese-made skincare brands, such as Skintific, have gained popularity in Muslim-dominated markets like Indonesia and Malaysia. These brands downplay their origins and present themselves as local products. 🇦🇺 Australian supermarkets found to be overcharging customers could face criminal penalties if the government adopts the findings of a new review. #retail #retailnews #economy #DailyRetailNews

50

Here are some interesting stories from the world of retail for Saturday, May 11: 📉 Consumer sentiment plunged to the lowest level in six months as price increases reaccelerated, according to the latest University of Michigan survey of consumers, released Friday. 🏬 JCPenney remains profitable and could open new stores. Holiday and full-year sales fell, and net income plunged. But the CEO of one of the retailer’s owners says its ongoing profitability could merit an expansion. 🛍️ The retail industry is going through a tough time as it copes with inflation-weary consumers and a rash of bankruptcies, prompting chains to announce the closures of almost 3,200 brick-and-mortar stores so far in 2024. 💊 The Vitamin Shoppe  has announced that subscribers to its telehealth service will have access to weight-loss medications such as Ozempic, Mounjaro and Rybelsus. 🏪 99 Cents Only Stores in Texas may soon morph into Ollie's Bargain Outlet, Inc. or Dollar Tree Stores as competitors of the California-based retailer find discounted real estate in the bankruptcy liquidation. 👕 On average, Britons bought three items of clothing from secondhand retailers in 2023, with young adults buying 5.3 items on average, compared to 1.7 items for those aged 55 and over. 🥫 Weis Markets plans to begin construction on six new stores this year that will open in 2025, according to a company earnings release. This marks a significant uptick in openings for the company compared to the past few years. 👜 Hermès has asked a US judge to dismiss a "far-fetched" class-action lawsuit accusing it of forcing shoppers to spend thousands of dollars on goods before having a chance to buy one of its Birkin handbags. 🇨🇦 Canadian Tire Corporation Tire has reported a drop in first-quarter retail sales in its first quarter, citing a “challenging consumer demand environment” as Canadians continue to cut back on non-essential spending. 🥣 The outlook for yoghurt looks particularly sour as Americans’ love affair with the creamy, fermented dairy product is over. That's one reason General Mills is looking to sell its yoghurt business. 🍄 Meati Foods is set to add 2,000 retail locations within Kroger's family of stores by April, expanding its presence in the market. The company offers alternative protein products made from mycelium, or mushroom root. 🍍 A new variety of a rare, high-end pineapple is now available to purchase in the US. Del Monte is introducing Rubyglow pineapples, a new variety of the tropical fruit, to the US market. 🎌 Japan's consumer spending shrank for the 13th consecutive month in March, according to government data. This poses challenges for policymakers who are aiming for self-sustaining economic growth. 📦 The Commerce Department reported that US wholesale inventories fell 0.4% in March, having risen 0.2% in February. #retail #retailnews #economy #DailyRetailNews

42

2 Comments

The TJX Companies, Inc., Inc. plans to grow its off-price footprint as regular-price department stores close. Notably, TJX has a minimal e-commerce presence as it focuses on its "treasure hunt" experience in-store. I love the joy of discovery as well. Where TJX focuses on the discovery of apparel, shoes, and housewares, I love discovering new Funko Pop's, Hasbro action figures, and McFarlane Toys statues. But that doesn't mean #TJMaxx, #Marshalls, #HomeGoods, #Sierra, #HomeSense, #Winners et al. shouldn't use digital technology to funnel more people into their stores. 🥇 TJX could use "livestream" commerce to follow a brand ambassador around a store to preview new merchandise, and have viewers flock to the store afterwards. 🥈 TJX could provide digital communities on Reddit, Inc. or Discord to bring their communities together to share their finds and insights into when new merchandise hits the racks. 🥉 TJX could use digital mementos to track store visits and let shoppers display them as digital badges, showing their love and commitment to the brand. #ecommerce #treasurehunt #customerexperience #digitalsupportingphysical

2

1 Comment

Today's The Robin Report "undresses" the denim trends & consumers behaviors toward them... (so no more pinch rolled levi's? 😉 ) Takeaway: Retailers that have direct, conversational interactions with consumers and manufacturers will be better positioned to produce what consumers want. Read and Subscribe to get real opinions, insights & more delivered every day. ➡️ https://lnkd.in/eAkYa73Z

6

In partnership with Footwear Distributors and Retailers of America (FDRA), our AlixPartners Fall 2024 U.S. Consumer Footwear Survey dives into the changing behaviors of customers and seasonal trends. As kids prepare to head back to school, parents are faced with the challenge of juggling budgets and keeping their children in style. Our survey reveals how #footwear companies can meet consumers where they are today. Learn more: https://lnkd.in/eWrrCSmT

14

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

43

4 Comments

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

28

5 Comments

👟🌟 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

20

1 Comment

“Just Keep It” Nike decided several years ago to sever ties with some major retail partners such as DSW and Urban Outfitters and sell less merchandise through others such as Foot Locker and Macy’s. The theory, apparently first developed by previous management prior to COVID, was that the wholesale business should be phased out. This unforced error in Nike’s long and great history represents a teachable moment that helps explain two fundamental business truths. The first is that, in the words of the great University of Chicago Booth School of Business Professor James H. Lorie, “where money is concerned, more is preferred to less.” No business can afford to rationalize giving up hard-earned revenues with the expectation that it can be replaced with more desirable sales from a different channel. The second fundamental principle is that you don’t bet some or all of the farm on a theory. Yes, the world of great retail brands is moving clearly in the direction of D-T-C. The great brands need to be ready to sell exclusively through their own physical and digital channels should third-party partners disappear. There is no point in hastening this transition. They should just keep the third-party revenue flow as long as they can, and it is presumably in their interest to help their partners stay in business. (At times, it might make sense for a high-end brand to reduce wholesale accounts for the purpose of reducing supply and increasing the aura of exclusivity. That was not the playbook here). Ralph Lauren, for example, is purposefully working to increase both AOV and the percentage of total revenues from its own stores and on-line business. But they have not made the mis-step Nike made. Retail is in transition and great brands like Nike are destined ultimately to get all the marbles as third-party retailers increasingly find they can’t compete with many of their marquis brands’ omnichannel operations. But this is a long-term transition. Nike is absolutely correct to prioritize figuring out how to become more customer-centric and using their mono-brand stores and apps to strengthen customer communications and connectedness. The objective of course is to increase Customer Lifetime Value (CLV), which means focusing on relationships with the top 20% of retail customers and increasing the number of people in that cohort. Of course, D-T-C retail is more profitable and attractive than third-party wholesale sales to struggling multi-brand retailers. Obviously, you prefer to own and control the customer relationship and capture all the data it entails. But what were they thinking? It’s not like Nike was losing money on the wholesale business. The margins were obviously considerably lower than their retail profit but margins they were. It’s called marginal revenue for a reason. It is a big mistake to trade less profitable revenues for no revenues from the same source. Business is not always binary. A swoosh in the hand is worth two in the bush.

11

2 Comments

What's the headline from recent retail earnings transcripts from Walmart, DICK'S Sporting Goods, The TJX Companies, Inc., and more? Value wins. The macroeconomic environment played a role in crowning the season’s winners. Value is top of mind for consumers as they look to stretch their budgets. Read on below for more insights: https://lnkd.in/gCvZghbY

11

2 Comments

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

19

1 Comment

Retail design always is a meaningful part of the #retail experience, and I enjoyed sharing my insight with National Jeweler on how design is impacting store design and consumer engagement alike. What are your thoughts on how merchandising + design impact stores… jewelry focused like discussed here or any category of retail?

8

Here are some interesting stories from the world of retail for Thursday, June 6: 🧘🏽‍♀️ lululemon beat Wall Street’s earnings and revenue estimates, but issued weak second-quarter guidance as it contends with a slowdown in the Americas, its largest market. 👕 Hanesbrands Inc. will sell Champion to Authentic Brands Group in a deal worth up to $1.5 billion with performance incentives. Authentic owns brands such as Reebok, Forever 21 and Quiksilver. 5️⃣ Five Below cut its outlook for the year, warning that its core low-income shoppers were facing an outsized impact from years of inflationary pressures. It posted an unexpected decline in same-store sales for the first quarter. 👙 Victoria’s Secret & Co. said it was encouraged by demand for its bras, sleepwear and other clothing in May, but the company said it was exercising restraint amid continued caution more broadly among the US consumer. 🏪 Foxtrot intends to reopen several locations in Chicago in the Gold Coast and Old Town neighborhoods. The news comes after Foxtrot and Dom's Kitchen & Market closed on April 23. 🌳 Dollar Tree Stores Tree said that it had started a formal review of strategic alternatives for Family Dollar, which it said could include among others, a potential sale, spin off or other disposition of the business. 💵 Walmart is now offering bonuses to its hourly employees in the US., the company announced Wednesday. The longer an associate has been with the company, the higher the associate's bonus potential, to a maximum of $1,000. 📚 In a blow to publishers and authors, Costco Wholesale plans to stop selling books regularly at stores around the United States, four publishing executives who had been informed of the warehouse retailer’s plans said Wednesday. 🚚 Albertsons and Uber have launched a new food rescue initiative that aims to address food insecurity and food waste in several major US cities. The program donates surplus food from the grocer’s stores to local nonprofits. 📸The TJX Companies, Inc., parent of TJ Maxx, Marshalls and HomeGoods, said it’s equipping some store employees with body cameras to thwart shoplifting and keep customers and employees safe. 🍔 McDonald's lost a European Union trademark dispute over the Big Mac name after a top European Union court sided Wednesday with Irish fast-food rival Supermac's in a long-running legal battle. ���️ The Bank of Canada's decision on Wednesday to cut interest rates from 5% to 4.75% is expected to provide financial relief to Canadians and encourage consumer spending. 🧳 Shinola and Filson parent Bedrock Manufacturing Company has appointed Steve Katzman to the role of CEO and Kevin Wertz as chief marketing officer. 🇦🇺 ALDI Stores Australia is moving into the insurance sector, with the launch of a series of homes and contents, car, and landlord products. #retail #retailnews #economy #DailyRetailNews

67

4 Comments

Here are some interesting stories from the world of retail for Monday, May 6: 👟 Outdoor retailer REI is betting big on running. After pulling back on its own branded footwear, which the retailer will no longer make, REI is now expanding its footwear offerings with new partnerships with brands like On Running. 👗 Luxury ecommerce platform Mytheresa says it will be one of the few winners following the implosion of competitors including Farfetch and Matchesfashion. The company’s share price has gained c30% so far this year. 💰 After years of price increases, food companies say more consumers are pulling back and big brands are losing out. Fast food chains and snack makers plan new deals and flavors to compensate. 👕 Ralph Lauren has launched his Fall/Holiday 2024 collection in a minimal and intimate fashion show. The collection features designs in soothing neutral tones, Western accents, and occasional cowboy hats. 🏃🏽‍♂️ Dan Sheridan, the CEO of Brooks Running, the running shoe maker owned by Berkshire Hathaway, has said he views China and Europe as strong growth areas for the business. 🤖 AI will manage all Sam's Club exit checks by end of 2024 in an effort to slash bottlenecks at the door. The new tech has been rolled out at 20% of Sam's Club stores so far. 🥫 There’s a new retailer getting into the private-label food business, and it isn’t your local Walmart or Target. It’s Ace Hardware Corporation. The chain has debuted a line of own-brand barbecue sauces and seasonings. 🛍️ Retailers are feeling jittery. Consumers aren’t shopping like they used to. In a game of chicken between stores and shoppers, it’s the stores that appear to be yielding first, by dropping prices on thousands of products. 🎒Beach bag brand ALOHA Collection is riding the retail store wave. The company, which sells splash-proof travel bags and pouches, opened its fifth retail location in the US on Saturday. ☕️ Former Starbucks boss Howard Schultz said the coffee giant needs to renew its focus and own its shortcomings, especially in the US, after the chain delivered disappointing earnings results last week. 💪🏼 More than 80% of business leaders believe the U.S. economy is strong compared to just 40% of American consumers, according to a report from the Milken Institute and Harris Poll. 🚬 The Wall Street Journal suggests that many US cannabis companies could become profitable if the Biden administration follows through on its place to reclassify marijuana as a less dangerous drug. #retail #retailnews #economy #DailyRetailNews

63

5 Comments

Last week, Anne had to travel a little further than usual to go to the office 🇺🇸 Since ebp Global, whom we are a proud part of, has become a member of the American Apparel & Footwear Association (AAFA), we now have the opportunity to participate in their events and conferences. So, along with Keith and Nanda from ebp, she went to the AAFA Global Supply Chain & Trade Conference in Portland, Oregon. There were a bunch of different speakers and topics covered. While on the topic of sustainability, one speaker mentioned that in his company they have decided that the best way to be compliant in the USA is to meet EU regulations. There are two reasons for this: One, different states are doing different things, and two, they are mostly copying the EU. Very interesting to consider, we think! 💡 Check out the picture to see some of the other topics on the agenda ⬇ #GlobalSupplyChainandTrade #Sustainability #EUGreenDeal

10

2 Comments