The Retail Apocalypse

[AlbertC]

Nike's new retail strategy for the upcoming period:

Nike plans up to 200 small-format stores, despite 38% revenue drop

June 26, 2020

Dive Brief:

• Nike revenue declined 38% in the fourth quarter, falling to $6.3 billion, according to a company press release. The retailer swung to a loss of $790 million, from income of $989 million the year before. That represented a 180% decline.
• While revenues in Greater China were only down 3%, North America was down 46% to $2.2 billion. As stores reopen, revenues are expected to improve and for fiscal year 2021, the company expects revenue to be flat to up, CFO Matt Friend said on a conference call with analysts.
• In the wake of strong digital growth in the quarter (75%), the retailer announced a new phase of its consumer direct strategy, with three key areas of acceleration: the creation of a "marketplace of the future," the realignment of product categories for a new consumer construct and further investment in digital.
• In connection with its consumer direct offense, the retailer is planning to open between 150 and 200 new smaller footprint stores in North America, Europe, the Middle East and Africa, in the image of the Nike Live concept it's been testing for a few years now. Those stores will be opened in the next couple of years, according to executives. The retailer tested the concept in Melrose initially, but has expanded it to several more locations, and plans to shift two stores in New York to the Nike Live model.

Nike plans up to 200 small-format stores, despite 38% revenue drop

The retailer swung to a $790 million loss in Q4, but executives remained focused on the future, announcing a new phase of its consumer direct strategy.

www.retaildive.com

 

[Johnny Au]

Their stores makes no sense even prior to COVID - it's cluttered and doesn't work well as a Microsoft showroom at all.

AoD

The only thing Microsoft Store has that Apple Store doesn't have is video gaming.

Even the Sony Store shuttered (and they too also do video games).

Nintendo New York (one of two dedicated Nintendo stores outside a theme park in the Americas (the other being in Nintendo of America's HQ in Redmond, WA)) has been closed during the pandemic and was even broken into:

https://www.reddit.com/r/nintendo/comments/guworp

 

[AlvinofDiaspar]

The only thing Microsoft Store has that Apple Store doesn't have is video gaming.

Even the Sony Store shuttered (and they too also do video games).

Nintendo New York has been closed during the pandemic and was even broken into:

https://www.reddit.com/r/nintendo/comments/guworp

Yeah but how any people go to physical stores for gaming these days - and they aren't dedicated to it either, like EB.

AoD

 

[AlbertC]

Frank and Oak latest Canadian clothing retailer to file for creditor protection

June 29, 2020

MONTREAL — Frank and Oak is the latest clothier retailer to seek creditor protection as it faces challenges dealing with the COVID-19 pandemic

Parent company Modasuite Inc. last week filed a notice of intention that it plans to file a proposal under the Bankruptcy and Insolvency Act.

The Quebec-based company was launched by Ethan Song and Hicham Ratnani in 2012 as an online brand, but now has stores across the country.

KPMG Inc. will act as trustee.

Frank and Oak latest Canadian clothing retailer to file for creditor protection

MONTREAL — Frank and Oak is the latest clothier retailer to seek creditor protection as it faces challenges dealing with the COVID-19 pandemicParent company Modasuite Inc. last week filed a notice of intention that it plans to file a proposal under the Bankruptcy and Insolvency Act.The...

ca.finance.yahoo.com

 

[AlvinofDiaspar]

Frank and Oak latest Canadian clothing retailer to file for creditor protection

June 29, 2020

MONTREAL — Frank and Oak is the latest clothier retailer to seek creditor protection as it faces challenges dealing with the COVID-19 pandemic

Parent company Modasuite Inc. last week filed a notice of intention that it plans to file a proposal under the Bankruptcy and Insolvency Act.

The Quebec-based company was launched by Ethan Song and Hicham Ratnani in 2012 as an online brand, but now has stores across the country.

KPMG Inc. will act as trustee.

Frank and Oak latest Canadian clothing retailer to file for creditor protection

MONTREAL — Frank and Oak is the latest clothier retailer to seek creditor protection as it faces challenges dealing with the COVID-19 pandemicParent company Modasuite Inc. last week filed a notice of intention that it plans to file a proposal under the Bankruptcy and Insolvency Act.The...

ca.finance.yahoo.com

Their mistake is going brick and mortar.

AoD

 

[AlbertC]

Nike anticipates layoffs as it accelerates digital strategy

June 29, 2020

Dive Brief:

• In conjunction with its Consumer Direct Acceleration strategy, introduced on Thursday, Nike expects there to be a "net loss of jobs," the company confirmed to Retail Dive via email. Complex first reported the news.
• Although the company reported a $790 million loss for Q4, a company spokesperson said the layoffs were not related to losses incurred by the pandemic. Instead, any savings will be "reinvested into our priorities," the company said.
• Nike said it is committed to acting with "thoughtful and robust severance practices" toward any employees impacted by the reductions.

Nike anticipates layoffs as it accelerates digital strategy

The job cuts are not related to losses incurred by the pandemic, a company spokesperson said, and savings will be reinvested in the retailer's priorities.

www.retaildive.com

 

[AlbertC]

Macy's won't survive a second wave of COVID-19: top strategist

July 1, 2020

It could be lights out for Macy’s (M) if America goes through a second wave of the coronavirus.

“I think that the majority of retail is going to have a tough time surviving another major shutdown. I don’t know we’ll get one nationwide. If the consumer becomes fearful again of going into a mall or being in an enclosed space, you’re going to see the reaction that we saw in Texas. with the sales moderating. Again, even if we don’t there are a limited amount of bodies we’re allowed to have in stores going forward. It changes the dynamic of the holidays. So are we going to have Black Friday? Those big sales where people trample one another?,” said SW Retail Advisors founder Stacey Widlitz on Yahoo Finance’s The First Trade. “I don’t think we can have that this year. It does change the dynamic of shopping, particularly for a name like Macy’s.”

For its part, Macy’s has tossed almost the entire kitchen sink at trying to survive the pandemic.

The company has launched curbside pickup. It has raised close to $4.5 billion in new high interest rate debt to shore up its balance sheet. It’s in the process of closing more than 100 lagging stores. And more recently, Macy’s said it would fire 3,900 corporate workers in a bid to save $365 million in costs this year and more than $630 million annualized.

Macy's may not survive a second wave of COVID-19: top strategist

Is it bye-bye to Macy's if a COVID-19 second wave happens?

finance.yahoo.com

 

[Johnny Au]

Macy's won't survive a second wave of COVID-19: top strategist

July 1, 2020

It could be lights out for Macy’s (M) if America goes through a second wave of the coronavirus.

“I think that the majority of retail is going to have a tough time surviving another major shutdown. I don’t know we’ll get one nationwide. If the consumer becomes fearful again of going into a mall or being in an enclosed space, you’re going to see the reaction that we saw in Texas. with the sales moderating. Again, even if we don’t there are a limited amount of bodies we’re allowed to have in stores going forward. It changes the dynamic of the holidays. So are we going to have Black Friday? Those big sales where people trample one another?,” said SW Retail Advisors founder Stacey Widlitz on Yahoo Finance’s The First Trade. “I don’t think we can have that this year. It does change the dynamic of shopping, particularly for a name like Macy’s.”

For its part, Macy’s has tossed almost the entire kitchen sink at trying to survive the pandemic.

The company has launched curbside pickup. It has raised close to $4.5 billion in new high interest rate debt to shore up its balance sheet. It’s in the process of closing more than 100 lagging stores. And more recently, Macy’s said it would fire 3,900 corporate workers in a bid to save $365 million in costs this year and more than $630 million annualized.

Macy's may not survive a second wave of COVID-19: top strategist

Is it bye-bye to Macy's if a COVID-19 second wave happens?

finance.yahoo.com

Macy's: Our Black Friday sale will be the biggest Black Friday sale in our long history ever:

90% OFF EVERYTHING!!! NOTHING HELD BACK!!!

All sales final. No exchanges. No refunds.

 

[Northern Light]

Macy's won't survive a second wave of COVID-19: top strategist

July 1, 2020

It could be lights out for Macy’s (M) if America goes through a second wave of the coronavirus.

“I think that the majority of retail is going to have a tough time surviving another major shutdown. I don’t know we’ll get one nationwide. If the consumer becomes fearful again of going into a mall or being in an enclosed space, you’re going to see the reaction that we saw in Texas. with the sales moderating. Again, even if we don’t there are a limited amount of bodies we’re allowed to have in stores going forward. It changes the dynamic of the holidays. So are we going to have Black Friday? Those big sales where people trample one another?,” said SW Retail Advisors founder Stacey Widlitz on Yahoo Finance’s The First Trade. “I don’t think we can have that this year. It does change the dynamic of shopping, particularly for a name like Macy’s.”

For its part, Macy’s has tossed almost the entire kitchen sink at trying to survive the pandemic.

The company has launched curbside pickup. It has raised close to $4.5 billion in new high interest rate debt to shore up its balance sheet. It’s in the process of closing more than 100 lagging stores. And more recently, Macy’s said it would fire 3,900 corporate workers in a bid to save $365 million in costs this year and more than $630 million annualized.

Macy's may not survive a second wave of COVID-19: top strategist

Is it bye-bye to Macy's if a COVID-19 second wave happens?

finance.yahoo.com

In 2018, Macy's Inc (the parent company of Macy's and Bloomingdales) had less in total sales than it did in 2011.

The 2019 numbers showed ongoing decline.

This enterprise is not new to trouble.

The company's shares are currently worth less than they were 10 years ago.

The troubles are a product not only of a changing retail environment, but decisions to put too much square footage into the market, particularly of the higher-end name plates.

In the process of dealing w/the fact that the luxury market was never that wide or deep, they end up damaging the high end brands as they try to make them affordable to a larger group of customers.

What they managed is not that at all; but to alienate their core customers; while not becoming cost-competitive with cheaper alternatives.

Centralization also made them less nimble to the market and to regional variations in demand and taste.

Take all the bad decisions and layer Covid on top................

It is very real trouble.

I think there is a market for the 2 remaining big name plates in this company, but likely at less than 1/2 the current size.

 

[Jonny5]

‘Frustrating’: Old Navy customers say packages not delivered, missing amid COVID-19 - National | Globalnews.ca

Global News reached out to Old Navy for comment, but did not hear back by time of publication.

globalnews.ca

The Gap/Old Navy/Banana Republic are still openly taking online orders in Canada, billing customers immediately, but are evidently shipping out nothing. I saw a deep discounted pair of jeans on The Gap Canada website and ordered it on June 15. On June 16th my credit card was charged and I received an email which said "your order has shipped" with a UPS tracking number which indicated it should arrive by July 2.

It's now July 4 and UPS tracking shows they have yet to pick up the order. The problem is clearly not on the UPS side. They are refusing to pick up orders there specifically. There are rumours The Gap is so far behind on paying invoices to UPS that they were cut off totally, yet they are still taking new orders on their website like nothing is happening.

 

[deerparker]

They are still shipping but with long delays and orders that appear to be in limbo (with Gap blaming UPS). I received an order on 2 July that was placed on 6 June.

 

[AlbertC]

Ben Sherman are closing their Queen West and Vaughan Mills locations. The Square One store will remain open.

Ben Sherman closing stores in Toronto and Vaughan Mills

A menswear store with an international reputation is closing all of its Toronto stores except one at the end of the summer. Ben Sherman, the UK-bas...

www.blogto.com

 

[AndreaPalladio]

Their mistake is going brick and mortar.

AoD

They lost me as a customer when they were still online exclusively when they would accept payment but then never actually deliver.

 

[AlbertC]

Lucky Brand files for bankruptcy, lines up deal to sell company amid coronavirus

July 4, 2020 6:24 pm

Denim retailer Lucky Brand Dungarees has filed for bankruptcy protection, blaming its troubles in part on the coronavirus pandemic, and said it has a deal lined up to sell the company.

Lucky said it plans to close 13 stores and could shutter more during the bankruptcy process.

Los Angeles-based Lucky filed for Chapter 11 protection on Friday in federal bankruptcy court in Delaware.

In a court filing, chief restructuring officer Mark Renzi described a proposal to sell Lucky to buyers led by apparel retail operator SPARC Group for $140.1 million in cash and $51.5 million in credit. Lucky said the offer would preserve much or all of the company’s current network of stores.

SPARC operates under the Aeropostale and Nautica brands that that are owned by Authentic Brands Group and mall operator Simon Property Group, one of Lucky’s key landlords, according to the filing.

Renzi said the company has a backup bid, and Lucky asked the court to approve a bid process to see if there are better offers. The company anticipates a sale closing by mid-August.

Lucky Brand files for bankruptcy, lines up deal to sell company amid coronavirus - National | Globalnews.ca

Lucky said it plans to close 13 stores and could shutter more during the bankruptcy process.

globalnews.ca

 

[sixrings]

I guess I can assume this is really going to put that Yorkdale expansion on hold.