Retail analysts and executives have long known that the U.S. is "overstored," with far more retail space per capita than other countries. More specifically, one could say the U.S. is "overmalled," with roughly 1,200 malls (depending on exactly how you count). So-called "A" malls have generally remained quite healthy, with high occupancy rates and strong sales per square-foot. Despite representing only about a quarter of the U.S. mall universe, those properties hold around 80 percent of the total value of all U.S. malls. Of the remaining 75 …
A Radical Visionary Envisions Nike’s Dominant Future
When you see the image of a swoosh and hear or read the words “there is no finish line” or “just do it,” what brand immediately comes to mind? If your answer is “I don’t know,” then you have been living on another planet. Nike has been just doing it, over and over again, as if there were no finish line. Doing what? Continuously innovating new products to maximize performance; advances in technology that elevate the efficiency and productivity of operations and inventory optimization and distribution to over-deliver to their insanely loyal …
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NRF Holiday Forecast at Risk
For the last 25 years, the National Retail Federation (NRF) has kicked off the holiday shopping season in early October with its forecast for holiday retail spending, covering the critical November-December retail sales. This year, however, it waited until the end of November to make its prediction, and as per usual, it was exceedingly optimistic. NRF’s Retail View According to NRF, retail sales will rise between 3.6 percent to 5.2 percent this year for the last two months of the year, excluding automobile dealers, gasoline stations and …
Beauty’s Shifting M&A Landscape
As a beauty journalist who came of age in the 1990s, I was shocked and a little sad to see that Perricone MD, a proto "doctor brand" that made its debut during that era, recently changed hands for a mere $60M. When unicorns and "near-unicorns" (my very unofficial term for brands approaching the billion-dollar mark) like Morphe, Charlotte Tilbury and Drunk Elephant are fetching $2.2B, $1B and $845M, respectively, it's easy to feel like any majority stake or outright acquisition that doesn't reach at least the $100M mark has fallen …
Grey Is the New Black
An increasing number of major brick-and-mortar retailers-led by Walmart, Target, Best Buy, and The Home Depot-will not open their doors on Thanksgiving, giving employees the day off and pushing more spending to digital channels. What's more, fewer promotions have been targeted specifically for the day after Thanksgiving, today, traditionally known as Black Friday. Over the past few years, our ramped-up consumer culture has expanded Black Friday from a one-day, to a weekend-long, to a week-long event. However, in the year of pandemic, Black …
The Quest to Nest
The home furnishings industry finds itself in the ultimate Venn Diagram (a graphic representation of circles that shows the sweet spot where different datasets overlap): the confluence of Americans spending much more time at home, much less time traveling and going out to restaurants, theaters and events -- and all of us having a general feeling that where you live should be the nicest, most comforting place on the planet. It is Home Sweet Home to the max. While certain sectors of the American economy like airlines and restaurants are in …
Reimagining JCPenney
Several weeks ago, a colleague asked me which retailer(s) I thought were genuinely innovative. For me, "innovative" and "retailer" rarely fit in the same sentence, but, my immediate response: Carvana. Disruption for Detroit The world of used, or previously owned cars will never be the same. It has now been transformed into a fascinating, fun and, dare one say, festive shopping experience. Carvana is a totally reimagined catalytic wonder-what-it-would-be-like moment of new car ownership all the way through to the thrill of delivery and …
Pandemic Fashion: We May Never Wear Real Clothes Again
Not much of coronavirus’ impact on the fashion industry was predictable. Sure, sweatpants did eclipse evening gown sales and lipstick took a nosedive, as expected; but some of the more lasting effects of Covid-19 on the fashion industry could not have been foreseen. I’m talking about a scarcity aesthetic the likes of which we haven’t seen since the Great Depression. A “scarcity aesthetic” comes into play in times of economic hardship, when the divide between the haves and have-nots makes consumers reluctant to flaunt their wealth through …
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