Richard Lim’s Post

What’s been happening in retail this week? ·      JD Sports Fashion secured a deal to purchase US sportswear brand Hibbett for £899m. The retailer announced plans to finance the acquisition and refinance Hibbett’s debt using its US cash reserves of $300m (£243.1m) and a $1bn (£810m) extension to its American banking facility. ·      JD Sports Fashion also expanded its flagship store in London's Westfield Stratford City, adding 4,000 sq ft and enhancing its digital features, with immersive shopping experience from brands such as Nike and adidas. ·      Poundland & Dealz closed nine former wilko stores shortly after reopening them, as part of an ongoing review of its estate. Workers were offered positions in nearby shops. This followed Pepco Group's last-minute agreement in September to acquire up to 71 Wilko leases from PwC administrators. ·      TikTok Shop UK expanded into preowned luxury fashion, joining existing offerings such as flowers and wellness, partnering with Luxe Collective Fashion, Sellier Knightsbridge, Sign of the Times, and Break. Archive. ·      Marks and Spencer is trialling a free postal donation service with Oxfam. Shoppers can recycle clothing by ordering a pre-paid postal bag from Oxfam's website. ·      The Cotswold Company announced the expansion of its online presence in Northern Ireland. Following a small-scale trial last year, the retailer is rolling out a specialised delivery service offering the delivery of furniture to designated rooms in shoppers’ homes, with packaging removed and recycled. ·      Getir is seeking a cash injection of "tens of millions" as it exits the UK, Germany, and the Netherlands to refocus on Turkey. Investors Mubadala, Sequoia Capital and Tiger Global Management reportedly support the move. Valued at £10bn previously, the etailer plans to invest in Turkish operations and withdraw from European markets due to rapid expansion.   ·      Sainsbury's’s reported group sales rose 3.4% to £36.3bn in the year to 31 March, with retail sales (excluding fuel) up 6.8% to £30.6bn. Retail operating profit increased 4.3% to £966m, driven by grocery profit growth. Despite this, group pre-tax profit fell 15.8% to £277m due to financial services restructuring. Grocery sales surged 9.4%, while general merchandise rose 1.2% and clothing dropped 6.4%. ·      Asda recorded a profit in the full year ending 31 December. Underlying profit exceeded £1bn, with like-for-like sales up 5.4%. Excluding fuel, sales rose 7.1% to £21.8bn. Adjusted EBITDA after rent surged 24% to £1.07bn. The grocer attributed sales growth to ongoing investment in value during the cost-of-living crisis. George clothing brand sales increased by 3.4% to £1.5bn.   This is just a selection of news this week. Sign up below for more insight ⬇️ https://lnkd.in/d-z25aM

From garden shed to flagship Hollywood store! Represent, the British streetwear/athleisure brand, has moved to retail. You’ve seen their clothing everywhere And now they’ve opened their first brick-and-mortar store in West Hollywood. How did Represent stick the landing and go retail? Let's get into it 👇 Represent was founded by two Manchester natives, George and Mike Heaton. Influenced by L.A.'s skate and rock scene, the brothers wanted to create a British/California hybrid. And in 2014, they did just that. In 2023, their brand turned over £50 million in revenue. And they've primarily just been focused on eCom. But they've also sprinkled in a powerful tactic: Pop-up stores. This isn't uncommon for brands to do. Doing so gauges how hot a brand is and gives a small preview of the world of retail. Plus, it's low-cost and flexible. But profit isn't the main objective. The featured store will take, market, and sell the product. Leaving the brand offsetting its profits with the increased expenses. It's similar to when a brand pushes its inventory into other retailers. But what they gain is exposure and branding to a larger audience. And once a few of those go well, it's time for a flagship store. Represent chose L.A. for their first location. Why? Because the city inspired the brand and its giant appeal for fashion. U.S. sales have been 20% of Represent's revenue so far. And with this store, they hope to pump that number up. The Heaton brothers project £250 million annual revenue by 2025. If you're looking to make your way into retail. Here's what you should know: 1. Pop up and pop out Pop-up stores are a great way to drive hype and showcase your products. You'll be able to tap into new markets while giving your customers a feel of your brand. Doing this helps to create loyalty and momentum as well. Bring out the red carpet with social media callouts and plenty of buzz. Use this experience to learn what it'll take to enter retail. 2. Understand the best time to transition You may be eager to make the switch to retail. But is it the right time? Having the right infrastructure in place is crucial. This means product, personnel, and revenue. Represent hired a new CEO to take over the operation side of the business. Doing so created a solid workforce and understanding of their priorities. 3. Know your consumer base Where do they shop? What do they like? Would placing a retail store in L.A., NYC, or London make sense? A brick-and-mortar store might not make sense if there isn't a large demand in the area. Take a step back and analyse the best location for your community. That's it from me today. Hit the follow button for more eCom news!

In the latest edition of All Consuming, we unpack the downfall of EXPRESS, and reflect on what Foxtrot's sudden closure - the latest in a series of similar concepts that have shuttered this year - might mean for brands who relied on small-brand-friendly retail concepts to enter brick-and-mortar. Here are the highlights: 📈 ShipBob plans IPO with $4B valuation, expansion ahead 👞 Luxury footwear brand, Zvelle, pivots to men's-only brand 🧵 INDOCHINO unveils its first ready-to-wear suit collection 🏙️ Hands free shoe brand, Kizik eyes nationwide expansion with NYC pop-up store opening ⛺ RTIC Outdoors, leading DTC outdoor goods brand, boosts expansion with Walmart partnership 💰 Hibbett to be acquired in $1.1B deal 🍗 WILDE CHIPS, known for high-protein chicken chips, secures $20M funding to boost its growth 🏃 Bullish invests in Bandit, community-centric running apparel brand ☀️ Sunnie secures Strategic Investment from SWAT Equity Partners Read more here: https://lnkd.in/gNFG3Ph2

What’s been happening in retail this week? ·     Bershka teamed up with AI-powered virtual fitting room platform 3DLOOK to “eliminate the fit and sizing guesswork” typical of online shopping and reduce rising return rates. ·     THG acquired skincare brand Biossance from Amyris for $20m (£15.8m), expecting to close the deal by mid-December and complete integration of the brand by the first quarter of next year. ·     Fenwick was named the official luxury retail store partner for Newcastle United Football Club, seeing the department store takeover the club’s The Rooftops bar. ·     Poundstretcher Ltd. promoted its finance director Tristan Phillips to chief executive. He succeeds Derek Lawlor, who stepped down in May. ·     MATCHES is working with Teneo to explore its options to raise around £50m, including an equity raise in a bid to support its business turnaround strategy. ·     Sainsbury's’s is set to move its head office to the sustainable JJ Mack Building in London’s Farringdon when the lease at its location in Chancery Lane expires in 2025. ·     Marks and Spencer announced 400 of its stores will be open from 6am to 10pm during 18 to 22 December to make it easier for customers to shop at a time that’s convenient. ·     Sainsbury's’s and Just Eat Takeaway.com teamed up to trial the first ever Christmas Picky Bits delivery store in London, open between 8 and 10 December. ·     John Lewis & Partners opened its first pre-loved luxury fashion pop-up at Peter Jones on Sloane Square and will run until 31 January. ·      House of CB is set to open a new store on Oxford Street later in December, making it the brand’s third store in the UK. ·     Boots UK opened the doors to its first Boots Beauty store at Battersea Power Station in London, housing 250 curated beauty brands catering to all budgets.  ·     Dunelm opened the doors to its first shopping centre store in Atria Watford. ·     EE boss Marc Allera is planning to take on Amazon and Currys plc as one of the UK’s biggest sellers of electricals, wanting customers to buy items through the telco network “every day and every week”. ·     MINISO UK launched its budget beauty and self-care collection in selected UK stores following a successful rollout across its international stores. ·     QUIZ Clothing announced it expected revenue to be 6%-8% lower than the £86.4m predicted in the year ending 31 March 2024 as shoppers cut spending. ·     Watches of Switzerland Group PLC of Switzerland posted a 2% increase in group revenue to £761m in the 26 weeks to 29 October on a constant currency basis, strengthened by trading in the US. ·     Frasers Group reported an 8% increase in pre-tax profit to £310.2m in the 26 weeks to 29 October, as the group’s elevation strategy continues to “drive strong trading performance”.   This is just a selection of news this week. Sign up below for more insight ⬇️ https://lnkd.in/d-z25aM

JD Sports Fashion Targets 200 New Stores This Year JD Sports is planning to open 200 new stores globally this financial year, despite recording a drop in profits. During the last financial year, the sportswear retailer opened 249 stores, closed 248, and disposed of 74 across all its fascias globally, bringing its total store estate to 3,317 stores. In the UK and Republic of Ireland, JD Sports opened 21 new stores and closed 13, increasing its store portfolio by a net eight stores. This included the relocation and expansion of its Birmingham Bullring store, as well as new stores in Coventry and Bedford. After the period ended – at which point the retailer operated 454 stores – JD Sports also opened a flagship store at Westfield Stratford. The group also expanded its JD Gyms estate, opening in eight locations during the period. JD now operates 85 gyms in its principal UK market. This comes as the group releases its results for the 2024 financial year, during which its revenue increased by 2.7% to £10.4 billion. However, growth was negatively impacted by a number of disposals made during the period, which comprised the 52-week period ending 27 January. However, profit before tax and adjusting items fell by 8% to £912.4 million, which JD Sports attributed to increased investment. Régis Schultz, chief executive officer of JD Sports, said the strong revenue performance was “delivered in a challenging market.” He https://lnkd.in/euhr5w7P

Here are some interesting stories from the world of retail for Tuesday, November 21: 📈 Investors in America’s retail sector would probably prefer to forget 2023. The S&P Retail Select Industry Index has climbed about 5 per cent, less than a third of the S&P 500’s gain. 🛏 One of the grandest RH locations to date has opened in Indianapolis. The luxe home furnishings retailer has opened a “gallery” at the 151-acre DeHaan Estate. The new RH features 62,000 sq. ft. of space. 🚪 Kohl's announced in a Securities and Exchange Commission filing that Dave Alves, president and chief operating officer, has left the company. Alves was appointed by the retailer in February and started work in April. 🎬 Sony Pictures Entertainment is launching its first Wonderverse at Oakbrook Center next month, an elaborate 45,000-square-foot space stocked with immersive experiences based on hits like “Zombieland” and “Jumanji”. 🚚 Carriers like the United States Postal Service, FedEx and UPS have capacity to meet projected demand this holiday season, which is cheery news for shippers and shoppers alike. 🍑 Peaches, plums and nectarines distributed by HMC Farms and sold nationwide as recently as last week are being recalled due to an outbreak of listeria that has resulted in 11 illnesses, including one death. 🥧 Costco Wholesale reportedly sees pumpkin pies fly off shelves during holiday season. In the brief time frame between September and December, people buy some 6 million of Costco’s well-known pumpkin pies. 👠 The Australian, podiatrist-founded women's footwear brand FRANKIE4 has opened a flagship at The Bellevue Collection in Bellevue, Washington., just outside of Seattle. 🍽 Crate and Barrel on Thursday opened a New York City flagship store in the city’s Flatiron District, according to a company announcement. The 23,000-square-foot, two-level location is the company’s first immersive design store. 🎮 The video game industry boomed during the pandemic. Now thousands are being laid off, notes the Los Angeles Times. 🇦🇺 Kmart, Australia’s largest fashion retailer, says a planned four cent levy on all garments to fund a recycling scheme is badly designed and could cost up to $500m a year to run. 🚗 Tie-up talks between Redde Northgate plc and the UK's Halfords have stalled due to disagreements over price. Redde Northgate, which owns 130,000 vans and corporate cars, made a £1.4bn merger approach to Halfords. #retail #retailnews #economy 

Japanese-branded British Retailer SUPERDRY Faces Bankruptcy as Business Prospects 'Dry Up' 📉🇯🇵🇬🇧 Considered a 'status symbol high-street fashion' brand. Superdry's journey seems to have reached a dead end Superdry's modest origins can be traced back to 2003 when Julian Dunkerton and James Holder founded the company to bridge a significant gap in the UK men's fashion market. It all started with an inspirational trip to Tokyo At its peak in 2018, Superdry clocked £1.604 billion in revenue, owned 248 retail stores, franchised over 500 branded stores, had a presence in more than 100 countries, and partnered with the likes of David Beckham, Neymar, and Idris Elba Today, Superdry's shares are down 98% and reduced to a penny stock. Revenues have steadily dwindled to £622.5 million, with a loss of £21.7 million(it was profitable the previous year), and layoffs and store closures for cost-cutting have become a common theme. It's also planning to delist from the London Stock Exchange What led to this woeful situation for a brand once emblematic of high-street fashion? ⌲ Co-founder Julian Dunkerton left Superdry in 2018 due to disagreements with CEO Euan Sutherland's strategy, believing the company had become misguided. Once out, Dunkerton staged the ultimate coup by building an 18% stake, becoming the largest shareholder. He won a board vote for his return, prompting the entire board's resignation and paving the way for restructuring ⌲ Global warming(no kidding): Primarily known for its outerwear and cold-weather clothing, they suffered from unseasonably warm weather in key markets, which negatively impacted sales of these high-margin items ⌲ Erosion of brand equity: Superdry's brand identity has been diluted over time due to various factors such as over-expansion, discounting, and a lack of focus on its core products. A 2019 survey saw Superdry's brand impression score fall from 18.5 to 11.3 ⌲ Stayed offline: Failed at capitalizing on the e-commerce boom, particularly during the pandemic when it surged. In 2021, Superdry's online sales grew by 33.1% but still only accounted for 29.6% of total revenue Do you think SUPERDRY can make a comeback? Comment below! . . . . Please note that the aforementioned factors are not exhaustive, and various other elements played a role in the situation

Next plc seems to be on a bit of a roll right now. But it seems that’s good news for all of us. Why? Because the High Street brand is normally considered a good indicator of how UK consumers are faring. This week the retailer issued it’s fourth profit upgrade in 6 months. Recent unusual weather did have an impact on retail. A cool August, a boiling September, and a back to normal Autumn in late October meant consumers weren’t always dressed for the season, or buying what was expected for the time of year. That would have been a challenge for some fashion retailers but Next coped well, with full price sales rising 4.0% in the quarter ahead of guidance for a 2% rise and online sales up 6.5%. Its shares were up 2.6% in early trading, extending 2023 gains to 21.4%. All great news for Next, which operates 460 of its own stores and continues to expand its retail empire at a pace. In October it acquired fellow High Street clothing brand FatFace for £115.2 million, adding to investments that include Reiss, JoJo Maman Bébé, Gap UK, MADE.COM, Joules, Lipsy London, Victoria’s Secret & Co. UK and Cath Kidston. Commentators suggest Next’s success is down to following in the tried and tested footsteps of some of the best in the business, the brand being today’s equivalent of The Burton Group/Arcadia pre-2002, pioneering, highly strategic, investing in great systems and technology and highly customer focused. It seems that's certainly the case, but is changing consumer behaviour also helping? Russ Mould, from AJ Bell said “One of Next’s key attractions is that its clothes are considered to be decent quality. While they may cost more than you might find with ASOS.com or H&M Group, there is a perception that the items will last longer and so it is worth paying a bit more.” If Next is seeing a shift towards more full-price sales as against clearance events could that demonstrate increasing consumer preferences for quality over quantity. A strength of the Next brand and the antithesis of fast fashion? The rallying share price of quality High Street rival Marks and Spencer suggests this could be the case. A common thread in all of Next’s recent acquisitions and investments is the strength of the brands they are buying in to. All are known for being high quality. Not the cheapest but worth paying a bit more for. And all have a significant bricks and mortar High Street presence where that 'quality' can easily be demonstrated. And now thanks to Next's investments, each brand is also supported by great e-commerce capabilities. The perfect combination for success in 2023? We think so. What about you? #retail #fashion #marketing

Japanese clothing giant exits Russia Vedomosti - https://lnkd.in/gXkwvf8j outlets have reportedly been occupied by local brandsJapanese casual wear retailer Uniqlo has ceased operations in Russia and offloaded all of its stores in the country, the Vedomosti newspaper reported this week, citing a company partner.The information was confirmed by the owners of Russian shopping malls where Uniqlo outlets were previously located."Uniqlo has refused to lease premises for all its stores in Russia," a Vedomosti source was quoted as saying.Most of Uniqlo's former outlets have already been occupied by Russian clothing brands such as Lime and Gloria Jeans, according to the report.Uniqlo halted operations at all of its 50 Russian stores last year and ceased online sales following the outbreak of hostilities in Ukraine. The company appeared reluctant to leave, and Uniqlo owner Tadashi Yanai defended the initial decision last March to keep Russian stores open, saying that clothing is a "necessity of life.""The people of Russia have the same right to live as we do," he said at the time, before the decision was reversed.Over the past year, the retailer has been offloading its online stock to compensate for losses of over 10 billion rubles ($106 million), generated by the necessity to pay rent for closed stores. According to data from Uniqlo Rus, the company earned 12 billion rubles ($127 million) last year.Although the legal entity of the retailer has ceased all activities in Russia, Uniqlo does not plan to liquidate it and hopes to someday resume business, the unnamed partner told Vedomosti. However, they claimed it would be difficult to do so as the brand's premises have been transferred to other firms. Uniqlo has also lost the trust of the owners of shopping malls, so it will not be able to receive preferential lease terms, the source stated.Nevertheless, Uniqlo products continue to be sold on some Russian marketplaces, most likely under the current parallel import program, experts interviewed by Vedomosti explained.For more stories on economy & finance visit RT's business section(RT.com) Source

I've been really enjoying the Business Strategy Course I'm taking at the University of Calgary. And this recent article from Levi's caught my eye (link below). 👖 Levi’s stores aren’t new. It opened its first retail shop in 1983 in Spain; the first one in the United States opened in Columbus, Ohio, in 1991. Most of the company’s sales came through chains like Macy’s or Nordstrom. Macy's itself dates back to 1858, and in 1924 it had become the world’s largest department store. Fast forward to 2020 when Macy's announced it was cutting about 2,000 corporate jobs, about 10% of corporate and support staff, and they shut down Cincinnati headquarters; they projected to save about 1.5 billion dollars annually by the end of 2026. Tony Spring, CEO of Macy’s, recently said another 150 Macy’s stores will close over the next three years. By 2026, just 350 Macy's will be operating nationwide. They will however, be upgrading their remaining 350 stores, and are signalling a pivot to luxury brands. 👚 Not giving up on brick and mortar though, Macy’s is maneuvering to shore up sales by accelerating the expansion of small-format stores that can provide more convenience to its customers. It announced plans in October to add up to 30 small-format locations through the fall of 2025. 🏬 Post-COVID, many malls that formerly existed as third spaces are now ghost towns, and prime locations for videographers capturing the now eerie, desolate spaces that exist within Canada. Unless you're a mega mall boasting other attractions to get people circulating, I'm watching closely to see what Canada's decline in shopping malls means for third social spaces, and what will become of these empty blocks of commercial real estate. 👖 But back to Levi's. Michelle Gass, CEO, wants to make Levi’s not only a brand you think of when you want jeans, but also a place you go to first when shopping for shirts, jumpsuits and puffer jackets. Her goal is to get customers back more often — and to bring them to Levi’s stores, its website and its mobile app. The approach is a key element in turning the 171-year-old clothier into a true retailer rather than a brand that sells its wares primarily in other companies’ stores. 💹 In January, the denim company told Wall Street it planned to increase total sales to $9 billion to $10 billion eventually. Levi’s now has nearly 2,300 stores across the world, including 244 in the United States. Last year, it had a record number of store openings: 105. Gass says there’s an overarching consumer trend that’s gravitating to really wanting a direct-to-consumer experience, and they intend on increasing their footprint in this area. ❓ Macy’s is often viewed as a barometer for the health of department stores, malls, and American consumers. Is smaller better? Time will tell if Levi's strategy will be successful.