One of the core issues in international marketing is whether the luxury fashion sector can be truly sustainable. And if so, are there luxury product development and manufacturing business models that are weaving ESG/CSR objectives into their daily operations? When entering new global markets, are they committed to presenting their business model in a way that avoids the perception of self-promotional sustainable marketing? Unique Services Italian luxury and premium leather goods producers are known for their craftsmanship and highest …
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The New Retail Space Race
All you contrarians unite: Store-based retail is very much alive -- even on fire. In fact, according to real estate services firm CBRE, the rate of available retail real estate fell to 4.8 percent in the second quarter, the lowest level in 18 years. And as store-based retailing evolves to become less transactional, more experiential, with higher efficiency, and more environmentally sustainable, other forces are also at play in reshaping the retail landscape. Space’s Down, Rent’s Up Real-estate investment trust Macerich notched its …
Aldi: The Little Store That Could
When it opened its first American store in March of 1976, both shoppers and the grocery industry, in general, must have been a bit befuddled by this unknown import from Germany called Aldi. Consumers who ventured into the store in the local Kmart-anchored strip center in Iowa City, IA had to be confused by the odd assortment of private label brands and severely restricted offering of just 450 items. Where was the Hellmann’s, where were the Oreos? Competing supermarkets were also trying to figure out how this store at around …
Reverse Engineering Is the Future of Retail Planning
For decades retailers have been managing their merchandise assortment, planning, and allocations based on prior sales numbers, emerging trends, store profiling, and overall demand. With continued access to richer data, retailers have never been more informed about their business. But more data doesn’t necessarily mean it’s the right data. What if retailers could more accurately pinpoint by location not only what sold, but also what is most likely to sell in the future using variables including predictive triggers? And all that before the …
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Fashion Specialty Stores Caught in a Squeeze Play
Fashion specialty stores are caught in a squeeze play. Blame it on the democratization of fashion. But there’s also the proliferation of ecommerce with over $208 billion in online fashion retail sales each year. But there’s more at play here including a shift in consumer behavior post-pandemic, the rise of stylish goods in discount stores, hotter-than-ever fast fashion, and a dressed-down consumer opting into athleisure wear. As consumers work remotely (globally, 37 percent of workers have reported back to the office five days a week …
They Paved Paradise and Put Up a Retail Parking Lot
This might come as a surprise to New Yorkers who are constantly on the prowl for a choice parking spot – an aspect of Big Apple life that, at times, can even turn bloody and violent – but the truth of the matter is that for vast swathes of the country, there is simply too much parking. Vacant Space Although some of us might cringe at the idea of trying to find a parking spot at the supermarket the day before Thanksgiving, at Best Buy on Black Friday, or at the mall on Christmas Eve Day, these instances are the exception rather than the rule. …
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AI and the Law Team Up Against Organized Crime
Shoplifting, shrink, or shrinkage in retail is not new, however, the insurgence of organized crime is. Fueled by the large-scale, untraceable “fencing” of stolen goods over the internet, combined with a new level of unprecedented criminal brazenness, the safety of both shoppers and retail employees is being undermined. It is also causing a catastrophic hit to the bottom line of retailers, both large and small. Taking Aim at Organized Retail Crime (ORC) After a considerable congressional lobbying effort on the part of retail trade …
Recurate Builds a Sustainable Bridge
“Climate change is literally an existential threat to our nation and to the world,” declared President Biden in an address about a year ago at a power station in Massachusetts. Parse the statement as you will, but philosophically, there isn’t anything literal when talking about existential anything. “Existential threat” is scary and ominous, but it doesn’t translate into simple terms and ideas that will ultimately lead folks to take action. Sustainability Gap The fashion industry and its consumers – every one of us – have a critical role …