Ever since I heard the news that LVMH wanted out of its deal to acquire Tiffany and Company and the two companies' resulting suit and countersuits, George Harrison's "Sue Me, Sue You Blues" has been an earworm playing in my head: You serve me And I'll serve you Swing your partners, all get screwed. Bring your lawyer And I'll bring mine Get together, and we could have a bad time. Buyer's Remorse Speculation has swirled for months that LVMH has buyer's remorse after agreeing last November to pay $16.2 billion or $135 per share for …
Finally…The Death of Fast Fashion
Fast fashion was the trend that wouldn’t die. While consumers were concerned about product quality, as well as the environmental and ethical issues surrounding the apparel production process and lifespan of a single garment, the treasure hunt experience was still too enticing to for many to ignore. The pandemic has been called “The Great Accelerator.” This is especially true as it pertains to the fashion industry’s burgeoning moral compass, what consumers expect from the purchasing experience, and the attributes they look for from the products …
Shakespeare & Co. Is Out to Transform the Entire Book Industry Supply Chain
In 2019, bookstores’ revenues were a shade above what they were 25 years ago, only $10.6 billion, falling from a high of $17.2 billion in 2007, according to the Census data. Amazon doesn’t report its book sales, but Statista puts the U.S. book publishing industry at ~$26 billion. You do the math. Decline and Fall While Amazon was gobbling up market share in the book business, it also decimated the bookselling industry. The Census Bureau is not as generous with data on the number of retail businesses as it is in reporting revenues, but in …
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AEO: Laser-Focused on Gen Z…and Winning
Consumer-focused would be an understatement in describing American Eagle Outfitter's huge competitive advantage. It's the major reason they are doing so well, even in the malls and during the pandemic to boot. AEO is parent of American Eagle, Aerie and newbies Unsubscribed and Offline. Let's say laser-focused on the Gen Z cohort, the oldest of whom are in their mid-twenties, and whose spending power is estimated to increase by 70 percent by 2025, according to Boston Consulting Group. Overall apparel sales in the US tanked by 79 percent in …
Brands Masterfully Navigating the Social Issues of Our Time
The urban and suburban landscapes are becoming increasingly surreal. Thousands of retail store closures and Main Street vacancies are sweeping the nation, as coronavirus pulverizes the global economy. But the pandemic isn’t the only issue that will permanently alter the way we do business. With millions of Americans confined to their homes and a historic election underway, participation in social justice causes has skyrocketed. People are finally being forced to sit with themselves for an extended period of time without the constant demands …
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Opinion: Do Prestige Beauty Brands Need to Pivot?
As an industry observer for many decades, I believe the prestige sector of the $532 billion global beauty industry is desperately working to find new ways of retaining its best customers during the ongoing pandemic -- and beyond. Now, in addition to trying to acquire new customers -- a chief goal of the last 10 years -- luxury brands are struggling to retain their base, who, because of Covid-19 safety concerns, are even more department store-resistant than they already were. With the pandemic, the major lure of department stores -- that women …
Home Depot & Lowe’s: A Tale of Two Retailers…Two Really Good Retailers
In an age of luxury merchandising and technology-fueled e-commerce selling, who would have ever thought that two of the most successful and admired retailers in the business make their money selling 2x4s, plumbing fixtures and gardening tools? Home Depot and Lowe's are weathering the pandemic as well as any two companies in the country, building on the wave of success they've been riding for the past several years. Happily, situated in a very sweet spot in the marketplace right now -- the home improvement and remodeling sector -- they are also …
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Amazon and Walmart Go Deeper into Apparel: But Why?
While retail sales of apparel were getting hammered before Covid was even part of our common vocabulary, it soared to the rank of number-one loser during the pandemic (the Work From Home phenomenon as a big contributor). According to McKinsey & Co., apparel revenue for the year is expected to drop by 20 percent to 30 percent industry-wide, and by 10 percent to 25 percent in 2021 compared with last year. Also, a big contributor to declining apparel sales pre-pandemic was the emergence of the now dominant next-gen consumer culture with a …
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