It’s been another week filled with a lot more retail news than there is today. Below, we break down some of the things you may have missed during the week and what we’re still thinking about.
From Vince’s Q2 results to Deloitte’s holiday sales forecasts, here are our final results for the week.
What you may have missed
Amazon is moving into the old Lord & Taylor building
This summer, Amazon welcomed more than 2,000 employees into new office space, inside the iconic Lord & Taylor building in New York City. E-commerce giant I bought the building from WeWork In 2020.
After an “extensive restoration”, the building is now ready to house Amazon employees, and will also include 35,000 square feet of retail space on the first floor. Amazon said it refers to the building internally as “Hank,” a reference to the unit of measurement for yarn. This name “honors the building’s roots as a clothing department store,” according to the blog post.
“It’s been three and a half years since we first acquired the Lord & Taylor building, and we feel proud to be part of the journey to restore and reimagine the next phase of life for this historic piece of the city,” said John Schoettler, Amazon vice president. Global Real Estate and Facilities, in a statement. “Adaptive reuse and conversion of old buildings is always complex – and to do so with a specific landmark is a special undertaking.”
Belk is celebrating 135 years with 150 new brands and a party on Saturday
Belk Saturday is Celebrating 135 years Since founder William Henry Belk opened his first location in Charlotte, North Carolina in 1888. The department store, Owned by Sycamore Partners Since 2015, it now has nearly 300 locations in 16 Southeastern states. “Events will vary by location, but stores will celebrate throughout the day while activities and treats continue,” the company said in a press release. “Many locations will also have special photo moments and DJs to add to the festivities.”
To also celebrate the event, the company aimed to add 135 national brands to its roster, but has exceeded that by 150 brands so far. In addition to merchandise from longtime partners like Polo Ralph Lauren and Estee Lauder, Belk offers new brands in most departments. The stores themselves are also being updated with new signage and testing amenities such as valet parking, gift wrapping and concierge services.
However, like other retailers run by private equity firms, Belk is experiencing pressure in a difficult economic environment With a little financial cushionMoody’s Investors Service warned earlier this year. The company took A Spin for a day through bankruptcy In 2021.
Vince navigates a “challenging” environment.
Clothing brand Vince this week Reported second quarter sales It was $69.4 million, down 22.1% year over year. Income from operations was approximately $33 million, compared to a loss of $5.2 million in the same period last year. Vince’s wholesale sales were down 22% while direct-to-consumer sales were down 3.7% year over year.
“As expected, we continued to navigate a challenging macro environment during the second quarter, impacting both our direct-to-consumer and wholesale channels,” said CEO Jacques Scheufele. He said in a call With analysts regarding the quarter. “However, we are pleased with the sequential improvement achieved in our direct-to-consumer channel compared to the first quarter, while our wholesale channel came under greater pressure due to the strategic decision to withdraw off-price product penetration and enhance our service focus on the more profitable full-price business.“
This spring, authentic brands collection Make a deal To acquire Vince’s intellectual property.
People want Build-A-Bear’s pumpkin cat
What Build-A-Bear gives, it also takes away. the Stuffed Animal Company on September 5 It released a limited edition pumpkin-themed cat toy for 2008 as part of the Vault Collection.
the $35 Great orange The cat is now sold out and fans are begging for a re-release, according to comments on the company’s Instagram. Customers were limited to ordering a maximum of four products, but this appears to have enabled sellers to raise the price. Pumpkin Kitty can be found on eBay listings ranging from From $155 to $210.
On Build-A-Bear’s Latest Instagram post on Thursday Which isn’t related to the Pumpkin Cat, the comments section is full of comments like “Where is the Pumpkin Cat restocked?” and “Pumpkin Supremacy.”
Apple vs. Pumpkin Spice: The battle for premium fall flavor
As the holidays approach and the weather cools, fall flavors are back on shelves, marking the start of the season. Across many retailers and industries, companies are finding their own ways to participate in seasonal trends that go beyond basic desserts and beverages.
Pumpkin spice as a fall season trademark can be found in almost anything from rappers Ice Spice’s latest collaborative drink with Dunkin’ to Dude Wipes Pumpkin spice scented, washable wipes. Apple-flavored items come to the fore not only in the form of candy, but also with Grove Collaborative’s limited edition harvest apple cleaner leaves And Limited edition Harvest Apple products from Kroger Of snacks and food.
What we are still thinking about
This is how late Walmart Express Delivery customers can get same-day delivery if they place their order by 9:30 p.m. from the retailer He said this week. Walmart previously offered express delivery until 8 p.m
Walmart said the expanded delivery hours are in response to growing customer expectations for speed and convenience. Retailer e-commerce sales continue to rise, 24% rise In the second quarter, while Sam’s Club’s e-commerce rose 18%, led by curbside. Walmart’s online pickup and delivery service is available in more than 4,000 stores nationwide.
That’s the lower end of Deloitte’s forecast for holiday sales growth this year. The company said holiday sales could range between $1.54 trillion and $1.56 trillion, representing growth of up to 4.6% year over year.
The growth is more modest compared to last year when holiday sales increased 7.6% year over year to $1.49 trillion.
Online sales specifically are expected to rise between 10.3% and 12.8% compared to last year, Deloitte said.
What we watch
Birkenstock’s IPO shows what it takes to go public
Shoe brand Birkenstock has filed for an initial public offering on Tuesday, though the number of common shares to be sold and the price range were not determined.
The company’s filing with the US Securities and Exchange Commission revealed that it achieved revenues of 1.24 billion euros during fiscal year 2022 (about $1.33 billion) and achieved a net profit of 187.1 million euros.
Bottom line it has It wasn’t very important For brands, the shift away from growth at all costs is taking over the industry, and market volatility is upending consumer behavior. Accessories brand Claire put it off The company plans to go public in July “in light of general stock market conditions” just a few months later Mattress Firm decided to postpone Its own public plans “in light of the continuing fluctuations.”
Among the few consumer brands to go public this year is Oddity – the Consumer technology company She owns the makeup brand Il Makiage and the skincare brand SpoiledChild. Oddity’s SEC filing showed that it generated net income for the years ended Dec. 31, 2020, 2021 and 2022. In 2022, the company generated net income of $21.7 million.