Category Archives: #international
Continuing its global expansion, Canadian winter clothing specialist Canada Goose Holdings has announced it will open two flagship stores this autumn, in London and Chicago. The company has also announced the expansion of its e-commerce channel to seven new markets including Germany, Sweden, Netherlands, Ireland, Belgium, Luxembourg and Austria.
Marking the company’s first location in Europe, the Canada Goose London flagship store, the brand’s largest retail space to date, will be located on Regent Street. In Chicago, the brand will open its doors on Magnificent Mile on Michigan Avenue. Both stores will feature inspired Canadian design elements, including marble quarried in British Columbia, as well as the broadest assortment of seasonal collections and exclusive collaborations, and will provide an opportunity for consumers to engage and learn more about the company’s 60-year history.
‘Opening our first European store is not only a milestone for Canada Goose, but it’s turning a dream into reality. London and Chicago are world-renowned shopping destinations and I’m proud to bring our Canadian heritage, experience and unparalleled product to their historic streets,’ says Dani Reiss, president & CEO of Canada Goose.
In 2016, Canada Goose opened its first two flagship stores in Toronto and New York, showcasing the spirit of Canada Goose. The stores weave together the brand’s authentic heritage and commitment to craftsmanship with modern design in an Arctic-inspired environment.
Footwear and apparel retailer Geox has unveiled its newest store concept in Milan, Italy which aims to bring together technology, design, sustainability, and well-being.
Known as the ‘X Store’ concept, the new design preserves and enhances existing architectural features in the building, such as glass windows, columns, ceilings and exposed brickwork and works them seamlessly into the new concept.
In line with Geox focus on sustainability the new store concept, which has been unveiled in Geox flagship stores in Rome, London, Toronto Kuala Lumpur, uses only green materials. In fact, all materials used in Geox X Store concept, ranging from the terracotta tiles to the natural wood, are compliant with Leed Certification, in line with the company’s commitment to the environment.
The new concept also features a range of digital touchpoints to offer consumers a multi-sensorial shopping experience. These range from integrated digital screens and interactive displays where customers can learn more about an item, to charging stations in the fitting rooms. X Store is said to offer further proof of how important technology is to the Veneto-based company.
“This is a brand-new approach to retail. As soon as customers cross the threshold of a Geox store, they breathe, see and absorb the values which inspire our corporate design philosophy and mission day by day, gaining insight into our immense motivation to constantly improve quality and performance,” said the company in a statement.
COACH left Russia in 2011, where it was only distributed via multibrand stores, is returning to the country with a new partnership. Coach has just signed an exclusive agreement with BNS Group, a distributor in the region for labels including Calvin Klein, Michael Kors and Topshop.
The agreement has a duration of five years, with the possibility of renewal. The opening of four Coach boutiques in Russia is forecast between 2018 and 2023.
Currently, Coach is sold in Russia via two multibrand stores through Tsum. The brand entered the Russian market in 2008, partnering with local usiness Jamilco. At the time, it planned to open 15 stores. Finally, it only opened a handful, which have been closed since 2011.
Over the past 2 years, Coach has seen its stores in esteemed shopping destinations multiply: in Paris in 2015; then on London’s Regent Street in November; its flagship opening in New York in December on 5th Avenue; followed by its very first Italian boutique in the upscale Milanese Via Montenapoleone. Coach now operates over 450 stores in North America, 520 in Asia and 40 in Europe.
Coach recorded revenue of $4.147 billion (3.946 billion euros) for its fiscal year 2015-6 ended last July, of which women’s handbag sales accounted for 53%.
Apple reveals its plans for a flagship retail store in Milan, where you walk through a fountain to enter
It was back in January that we first heard that Apple was planning a new flagship retail store in Milan, Italy, with an outdoor amphitheater – and the company has now confirmed those plans.
It will be a square full of ideas. We are incredibly happy to be in the center of Milan, a town that for centuries combines creativity and innovation. In the coming months we will work to give you a new Liberty Square: an open space for everyone to take a break, meet with friends, discover new interests.
The store will sit beneath the amphitheater, and you’ll enter it using a staircase that descends through the middle of a fountain …
The store is there but you do not see it. Thanks to an original architectural solution, it is hidden beneath the cozy outdoor amphitheater. It will be the perfect place to share your passions, discover new ones and deepen your skills.
You enter the store passing through two tall walls of water forming a great fountain, a tribute to traditional Italian squares.
The store will be named Apple Piazza Liberty and will be located at Piazza del Liberty, 1–20121 Milano. Apple is reportedly paying the city around €768k ($843k) to cover the cost of reconstructing the square after the store is completed, as well as an annual rent of €127k ($140k) for the use of the square. The opening date has not yet been announced.
This is the first store I’ve seen that really makes sense of the idea of Apple Store becoming a new place to meet friends. With usually crowded interiors and no tea or coffee, that aspect of the Today at Apple initiative seemed a bit of a stretch, but where the roof of your store is a piazza, the idea clearly works. Apple is also expanding both the scope and the profile of its workshop program.
Apple has been rather active on the retail store front of late, removing the iconic glass cube at NYC’s 5th Avenue store as part of a major development, preparing to open its first store in Singapore, revealing plans for a Carnegie Library store in DC and ensuring that older stores unsuitable for a complete makeover don’t get completely left out.
Check out a couple more photos below.
Coach is being seen as the most likely buyer to win up-for-sale British luxury footwear brand Jimmy Choo as the American giant forges ahead with its plan to become a multibrand luxury player.
Jimmy Choo was put on the block last month after its majority own JAB Holdings decided to focus on its coffee shop and café interests leafing to its other British brand Belstaff and its Swiss luxury label Bally also being up for sale.
It is thought less likely that one of the big European luxury houses would target a Jimmy Choo buy with Coach’s rivals more likely to be wealthy private equity investors from Asia or the Middle East.
Buying Jimmy Choo would instantly strengthen Coach’s presence in the growing footwear sector and take it even into more upmarket territory than its existing premium-to-luxury Stuart Weitzman label.
Industry sources told the Sunday Telegraph they see $11bn market-cap Coach as having the resources to beat off competition for Coach, as well as the investment cash to expand it fast. The company also benefits from the Coach brand’s new president and CEO, Joshua Schulman, having been CEO of Jimmy Choo until 2012.
After buying Stuart Weitzman for almost $600m in early 2015, Coach continued its won turnaround and drove Weitzman’s sales upwards. It now seems determined to convert itself into a much bigger multibrand player and in recent months an audacious approach to buy Burberry was turned down by the UK firm. Coach is still among the big names linked to a potential Kate Spade buy, however.
Whether it eventually wins Spade, Kors or any other giant brand, with Jimmy Choo potentially having a £700m-plus prince tag, buying it would be an affordable way to give Coach a label with massive growth potential and an as-yet-under-exploited presence in the key Chinese market. It’s also a brand that’s growing fast in the men’s sector and has a thriving perfumes portfolio, two crucial growth areas.
Fashion brand Guess has opened its largest UK store outside London, with a 465 sq m (5,000 sq ft) store in the Liverpool ONE development.
The store, designed in-house, is arranged over two floors. It features a clean, white interior, high-tech lighting and contrasting materials, in line with the chain’s recently updated branding and layout plans.
Merchandise is presented to offer ‘total looks,’ with accessories displayed in the centre of the store to maximise visibility.
“We are delighted to have opened this store and started trading during the busy Bank Holiday weekend. It has been a great opportunity for us to introduce the new store concept and branding to Liverpool ONE’s stylish shoppers and we have received very positive feedback in addition to strong sales already,” says Guess CEO Victor Herrero.
“The brand has created a great store, bringing the best of London to Liverpool,” says Miles Dunnett of property group Grosvenor Europe.
Boasting unobstructed views of the world’s tallest skyscraper, the Burj Khalifa, via a 180-foot wide, artistically designed carbon fiber array of motorized windows, Apple’s latest upscale retail store will be opening tomorrow, April 27th, 2017, at the swanky Dubai Mall in the United Arab Emirates.
Designed in collaborating with Foster + Partners — the same design team behind Cupertino’s brand-new Apple Park headquarters — the Dubai Mall Apple Store features an ever-changing array of 37.5-foot tall windows, overlain with super-strong carbon fiber panels that are capable of meticulously shifting orientation based on the fluctuations of external temperature in Dubai.
“To mitigate Dubai’s climate, Foster + Parters designed eighteen 37.5-foot-high motorized ‘Solar Wings’ that respond to the ever-changing environmental conditions,” the company wrote in its official press release about the grand-opening. “When the sun is at its hottest they cool the store, and in the evenings they open to welcome everyone to the public terrace. Inspired by the the traditional Arabic Mashrabiya, each ‘Solar Wing’ is locally fabricated from 340 carbon fiber reinforced polymer rods, and at 180 feet wide, the 18 panels make up one of the world’s largest kinetic art installations.”
These magnificent carbon fiber windows will also provide visitors an unobstructed view of one of Dubai’s greatest attractions: the Sama Dubai — a spectacular water fountain show that takes place every evening, and is conveniently located right below the Apple Store terrace at Dubai Mall.
Appropriately, Apple in its press release has invited visitors of the new location to enjoy the beautiful fountain array, which can be seen taking place in the first of two YouTube videos below. Also be sure to check out the second YouTube video, which gives us a glimpse of the Dubai Mall Apple Store, itself, and the surrounding area.
The company was sure to emphasize in its press release that the grand-opening of the Dubai Mall Apple Store is a way to draw more attention to its recently announced workshop series — dubbed Today at Apple — which will essentially embody a series of free education courses, focusing on a variety of topics including art, design, photography, and software coding, among other concepts.
“At the heart of every Apple Store is the drive to educate and inspire,” the company said, while adding that “Today at Apple will launch at Apple Dubai Mall and in all 495 Apple stores next month with new sessions across photo and video, music, coding, art and design, and more, led by highly-trained team members.”
The Dubai Mall Apple Store will also host a variety of high-profile events, many boasting live music, conversations with film-makers and photographers, and additional live workshops hosted by some of the world’s leading talent on the subject at hand.
London – Although Juicy Couture has seen somewhat of a revival recently, it seems as if parent company’s Authentic Brands Group best efforts were not enough to keep the brand afloat in the UK. The fashion brand, best known for its bling velour tracksuits favoured by the likes of Paris Hilton over a decade ago, is set to pull out of the UK market.
At the moment the label currently counts two stores in the London – one on Regent Street and another in Westfield White City, in addition to an outlet in Bicester and a store in Bluewater. But a report from the Telegraph states Juicy Couture is set to close its UK stores and will only retain an online presence in the UK.
Juicy Couture also counts a number of concessions in Harrods, Selfridges and Topshop in the UK, but it remains unclear what Authentic Brands Group aims to do with its concessions. The move follows on from fellow US brand Banana Republic’s withdrawal from the UK amid increasing difficult trading conditions.
ABG acquired Juicy Couture four years ago for 195 million dollars. The licensing company is best known for its celebrity brands, such as Elvis Presley and Marilyn Monroe. FashionUnited has contacted Authentic Brands Group for additional commentary.
The beauty retailer, which L’Oreal acquired in 2014 for $500m (£403.6m) rolled out its first standalone store in the UK in the London shopping centre this month.
The 2,100 sq ft outlet carries 1800 SKUs and a statement from the retailer said its product range caters to “16-34 year old make-up enthusiasts.”
Founded in 1999 by Toni Ko, Nyx Professional Makeup aims to offer shoppers professional quality make-up at an affordable price point.
Since then, the retailer has established itself a cult beauty brand amongst millennial shoppers in the US, amassing 10.7m Instagram followers.
When L’Oreal snapped up Nyx Professional Makeup in 2014, US president and chief executive Frédéric Rozé said the retailer had done a “tremendous job of harnessing the power of social media, digital marketing and multichannel distribution”, which had made it stand out to the beauty giant.
The specialist retailer operates through an ecommerce website as well as a variety of concessions and a growing standalone bricks-and-mortar store estate.
Nyx Professional Makeup is part of L’Oreal’s slew of specialist health and beauty brands including Urban Decay, Kiehl’s and The Body Shop, which the cosmetics giant put up for sale earlier this year and has piqued the interest of potential bidders including Advent International and CJ Group.
Not long after opening its first Mexico City retail location, Apple is planning a new flagship retail store in the city. Apple currently intends on the store being “flagship” in nature, with a design akin to that of Apple’s World Trade Center location in New York City…
The new details come via a report from AppleInsider, which cites a “person familiar with the matter.” Apple is said to be taking over large retail space in Antara Fashion Hall, which was most recently occupied by Crate & Barrel. The location is twice the size of Apple’s current Mexico City store in Centro Santa Fe mall’s high-end Via Santa Fe wing.
The design of the new Ciudad de Mexico store is said to be similar to that of the new World Trade Center store in New York City, which just opened last August. The store features high-end design traits such as a high ceilings, a 37-foot custom-built TV screen, and much more. Apple’s new Ciudad de Mexico store is also expected to be multi-level, meaning the Genius Bar and retail space might be split from one another, similar to other multi-level Apple Stores around the world.
The Antara Fashion Hall first opened its doors in 2006 and comes in at over half a million square feet. It features 3 floors of retail space, restaurants, and a movie theater. It’s located three blocks north of Avenida Presidente Masaryk, which is known for its high-end, luxury shopping amenities.
Specific details about when Apple plans to open its new flagship retail location remain unclear, but it’s likely a long way away at this point. The news of Apple’s newest Mexico City location comes as its first retail space in the city, opened last September, is experiencing unusually high sales and struggling to keep up with demand.
Today’s report also adds details such that Apple is mulling an expansion in Brazil. Company officials are reportedly in the process of determining whether or not Apple will open two additional stores in the country, including one new flagship location in Sao Paulo. As of now, Apple operates two retail locations in Brazil.
H&M is opening a new Westfield Stratford store on 21 April. The retailer is relocating from its current location and expanding its offering to become the largest store in the UK and IE portfolio and one of the largest H&Ms in the world.
Situated over three floors and covering 5,074 sq m of sales space, Westfield Stratford City will offer fashion-forward collections across ladieswear, menswear, Divided and kidswear. The store will also stock the brand’s homeware and beauty ranges.
‘H&M is delighted to be expanding in Westfield Stratford. The new store will become our largest in the UK and IE, as well as a global flagship store. Westfield Stratford gives the brand an exciting opportunity to showcase our entire fashion offering to both new and existing customers,’ says Carlos Duarte, H&M’s country manager UK & IE.
To celebrate the recent opening of the new Prada women’s ready-to-wear boutique in Saks Fifth Avenue, the prestigious department store has dedicated the six store windows on Fifth Avenue to the Prada Spring/Summer 2017 collection.
The unique setting features a sequence of three different scenarios, using rubberized elements in alternating color shades with soft forms that suggest a natural, abstract landscape.
At approximately 100 square metres, located on the third floor of the store, the new store reflects Prada’s aesthetic principles and strong brand identity.
The Prada Spring/Summer 2017 collections are displayed on different levels in front of the dynamic background for a relaxed, comfortable and dreamy atmosphere.
London – Reebok is set to expand its presence in China by opening 500 FitHub stores across the country by 2020, as part of its wider strategy to become the leading sportswear brand in the region.
The move sees the footwear and fitness label, held by Adidas Group, go head to head with US rival Nike which is currently viewed as the marker leader in the country. The expansion push sees Reebok team up with Belle International Holdings, one of China’s leading footwear retailers, who will assist the brand in rolling our its FitHub concept stores across the region. At the moment Reebok counts seven FitHub stores in China, with stores in key cities such as Beijing, Hangzhou and Qingdao as the sportswear label aims to open an additional 50 stores in the region this year.
Reebok’s FitHub concept store was designed to compliment the labels new positioning within the sportswear market and features in-store classes, events and fitness experts in store to offer customers tailored advice on products. As the sportswear and fitness market continues to rapidly expand in China, the region has become a key sector for international players like Adidas and Nike to expand in. “For a fitness brand, there is no better country to invest in right now than China,” said Chad Wittman, general manager of Reebok Greater China to China Daily.
“We’ve spent a lot of time and energy putting together a China strategy that meets the specific needs of Chinese consumers in terms of product, messaging and experiences.” In addition to offering Reebok’s global range of apparel, footwear and fitness equipment, the label is set to offer custom-made products targeted specifically at Chinese consumers. At the moment the brand is focusing on three main categories: running, training and classics. The former is set to become a key focus in China for the brand this year, as running has seen a surge in popularity in China over the past few years.
The retailer’s sales increased 39% in rand terms from the nine stores it has in operation
Swedish retailer H&M has continued on its winning streak in SA, dodging the malaise to which domestic retail players have succumbed.
In the first quarter of its 2017 financial year, H&M’s sales increased 39% in rand terms to about R356m from the nine stores it has in operation.
H&M SA opened its 10th store in Nelspruit last week. Its 11th store will be opened in Polokwane at the Mall of the North on April 8. Europe’s second-largest retailer is one of many global players who have moved to SA in a bid to increase market share and search for untapped markets in the hopes of bolstering performance.
Mergence equity analyst Peter Takaendesa said H&M was growing faster than bigger local retailers due to a combination of strong investment into new stores, effective marketing and “possibly better-positioned product offering”. H&M’s results have come at the expense of Woolworths, Truworths and Mr Price who released less than stellar trading updates and results earlier in 2017.
“We estimate that their [H&M] revenue market share in the South African market is only about 1% now and believe they will continue to gain market share off this low base as well as the factors identified above,” said Takaendesa.
The analyst said the accelerated levels of new store roll-outs were not only taking place in SA but also across some of their operating countries, so “this is a deliberate strategy driven at the group level”.
The World Retail Congress (WRC) begins on Tuesday in Dubai amid weak consumer demand, caused by a strong dollar and job concerns. Brick-and-mortar retail has also suffered as ecommerce begins to grow in popularity across the region.
The 11th edition of the event, being held at the Madinat Jumeirah from April 4 to April 8 under the patronage of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, will see over 1,500 delegates in attendance.
With opening remarks from Sultan Al Mansouri, the UAE’s Minister of Economy, and Majid Saif Al Ghurair, chairman of the Dubai Chamber of Commerce & Industry, attendees are expected to be addressed over the course of the four day event by industry leaders such as Jo Malone, founder of Jo Malone, Ravi Thakran, group president of LVMH for South & South East Asia and Middle East, and Robert Welanetz, CEO of Majid Al Futtaim Properties.
Developers in the UAE are currently hoping to capitalise on the growing number of visitors to the country in the run up to Expo 2020.
Dubai hopes to attract 20 million tourists that year, an increase of around five million in the next three years.
Retailers are currently focusing on delivering unique experiences to differentiate their product, whilst utilising insight into consumer behaviours and attitudes to stay agile and retain customers.
A government emphasis on the tourism sector, competitive deals, and tax-free salaries spurred a decade-long boom in the retail sector in Dubai.
However, in an Abu Dhabi Commercial Bank (ADCB) economic report released at the end of 2016, Monica Malek, Chief Economist at ADCB, said, “The rise in inflation over our forecast horizon should continue to contribute to the soft consumer-spending backdrop. Wider consumer sentiment is expected to remain weak due to job uncertainties.”
Hamad Bu Amim, president and CEO, Dubai Chamber, said in a statement: “After the tremendous success of the 10th World Retail Congress in Dubai, the chamber is very pleased to host the 11th edition here again. This year’s theme is very topical and reflects the changes in the retail sector, especially the growing trend of ecommerce. More so, Dubai’s retail market is forecasted to surpass $52 billion in sales by 2020 with average annual growth of more than 8 per cent.”
Questions about the future of Agent Provocateur have been raised again after the retailer confirmed it would close down all of its Australian stores and concessions.
Three out of the four Agent Provocateur retail locations in Australia have already closed, with the last location in Westfield, Sydney, poised to shutter its doors.
According to reports in News Corp Australia media outlets, the last store is selling its remaining stock and would shut once it was sold, or by mid-May, as Agent Provocateur’s new owners aims to focus on the European market.
The now-closed locations include a store in Little Collins Street, Melbourne, and two concessions in department store chain David Jones.
The store closure affects a total of 20 employees in Australia, with 15 workers holding a full-time contract.
However, Agent Provocateur will retain an online presence in Australia through its international website.
The news comes less than a month after the British lingerie retailer’s fall into administration and subsequent sale to Four Holdings Ltd – in which Sports Directs holds a 25 percent stake – in a pre-pack administration deal.
The deal saw Four Holdings acquire the brand’s UK division and Agent Provocateur global branding rights, but not its international portfolio, leaving 100 retail outlets at risk.
Agent Provocateur was offloaded by private equity firm 3i for around £27.5 million.
A pre-pack administration is when a business is placed into insolvency proceedings and its assets are immediately acquired by a new owner.
They are often criticised as businesses are able to shed its debts to creditors, and the details of Agent Provocateur’s debts have not been disclosed.
The retail chain’s co-founder, Joe Corré said the sale of the lingerie retailer to a firm backed by Ashley was “a disgrace to British business” and a “phenomenal stitch-up”.
He also said the “preposterous” transaction between private equity firm 3i and Four Holdings would “face a phenomenal swath of litigation actions”.
Since the sale, Sports Direct has clarified in a statement that it was not the new owner of Agent Provocateur, stressing its 25 percent stake in Four Holdings, which is also the parent company of fashion agency Four Marketing.
Apple shares latest vision for new Chicago River retail store as roof and curved glass put in placeWe’ve known for a while now that Apple is planning a new flagship waterfront retail store along the Chicago River, and now Apple has shared a new render of what the location will look like after construction wraps up. We also get a look at progress at the site with a new video walkthrough this week.
Apple was granted approval for the project back in November 2015, and 9to5Mac reported that demolition of the previous site and new construction for the upcoming flagship Apple Store was underway last December.
Today the Chicago Tribune has the latest renderings from Apple of what the upcoming retail space is expected to look like when the project is complete. The photo at the top shows the street level view of the glass structure with a massive rooftop centered in an open public space.
Foster + Partners, the same firm behind the new Apple Park campus design, is also responsible for what the Tribune says is a $27 million project, although the store still has no target opening date.
New photos included in the report do show further progress since we last checked in including the curved glass edges in place and the roof being installed this week. The Tribune even says construction workers signed the final support beam used for the new Apple Store.
The move follows the signing of a new business agreement with Challice Limited.
Mulberry Asia will begin trading in Hong Kong from 3 April. In addition, a subsidiary in China and a branch office in Taiwan are expected to be operational this year once the business secures relevant business licences for the territories.
The Mulberry Group owns 60% of the share capital of Mulberry Asia while Challice holds the remaining 40%. Mulberry Asia will initially operate two stores in China, one in Hong Kong and one in Taiwan. It will also manage regional wholesale operations.
These are supported by the group’s Chinese language mulberry.com site and omnichannel platform throughout the region.
In addition to local marketing initiatives, Mulberry plans to invest around £3 million in additional support in North Asia over the next two years to build brand awareness in the region and capitalise on international tourist flows to the UK, Europe and North America. In the near term, the brand’s store network will be enhanced with a new store in Shanghai as well as relocation of its existing stores in Hong Kong and Beijing.
Thierry Andretta, Mulberry chief executive, said: “We are delighted to launch Mulberry Asia, which enables us to advance our international strategy of developing the brand’s retail and omnichannel model in a key luxury market. We see significant growth opportunity in the region and look forward to taking this major step forward in fulfilling Mulberry’s global potential.”
Swedish home furniture store IKEA announced its own affordable smart lighting system today called Trådfri, which means “wireless” in Swedish.
The Smart Lighting range of products includes Trådfri LED bulbs, a remote dimmer switch puck, a gateway kit, a motion sensor kit, and dimming lights. IKEA is also introducing a selection of LED light panels and doors that can be built into cabinets for the bedroom and kitchen.
The Gateway starter kit will cost around $80 and includes two bulbs, a remote, and a gateway hub to connect everything to the app. The Trådfri bulbs have three white color temperature options (2200K, 2700K, and 4000K) that IKEA claims each last around 25,000 hours.
“The Ikea vision is to bring affordable home furnishing solutions to the many people. We know from research that existing smart lighting technology is perceived to be too expensive and difficult to understand, so we have worked to remove those barriers to make smart lighting more accessible,” IKEA Home Furnishing expert Helen Longford said in a statement.
Like the Philips Hue series, IKEA’s first range of automated lighting products is based on the ZigBee Light Link standard that got released in a number European countries late last year and should see a larger rollout at the end of this month.
IKEA gives a March 31 availability date for the lighting range in Sweden, with the range expected to arrive in the U.K in April, making them likely to roll out to other countries soon. The IKEA website makes no mention of compatibility with existing smart home platforms like Apple HomeKit, but support for other standards seems likely at some point down the line.
Emaar said the acquisition would be in line with the strategy to align e-commerce with physical shopping
Emaar said the acquisition would be in line with the strategy to align e-commerce with physical shopping
Emaar Malls has submitted an $800 million bid to take over e-commerce giant Souq.com, the company has confirmed.
In a bourse statement, Emaar Malls confirmed that it lodged the offer with Souq.com’s shareholders “in line with the strategy to align e-commerce with physical shopping”.
The statement, signed by Ahmad Thani Al Matrooshi, said the bid has not been accepted as yet.
“If the bid is approved, the impact on Emaar Mall’s profit for the quarter in which the acquisition is completed and for the year 2017, will not be material,” the statement added.
Quoting sources familiar to the bid, Arabian Business reported at the weekend that Emaar Malls, a unit of Emaar Properties, had lodged the bid to take over Souq.com, which is thought to have included a $500 million convertible deposit.
Last week Amazon agreed in principle to a 100 percent takeover of Souq.com, in a deal believed be worth around $580m.
However, it is understood that Souq has an “exclusivity” clause as part of its negotiations with Amazon – meaning it would not be able to accept a counter offer while still in sale talks.
Sources suggest the Amazon deal is being driven by New York based Tiger Global Management which has a substantial stake in Souq.
However, other small shareholders in Souq are yet to commit to a sale that could see Souq undervalued by almost $220 million, in comparison to the offer from Emaar Malls.
Souq’s smaller shareholder include South Africa’s Naspers Ltd, Standard Chartered Private Equity, IFC (a member of the World Bank Group) and Baillie Gifford.
Souq.com raised $75 million from Cape Town-based Naspers in March 2014, in a deal it said at the time was the largest for an Internet-based business in the region. But it is not clear whether Naspers is now backing the Amazon deal.
As expected, Apple today opened three new retail stores around the globe. The company opened a new location in Cologne, Germany, another one in Miami, Florida, and last but not least one in Nanjing Jinmao.
We’ve rounded up some images of the grand opening experiences at all three locations, so head below to check them out..
The new Cologne, Germany location at Schildergasse has been in the works for quite a while now, but it’s now open to the public. We shared photos of the construction process a few months ago, showing the store start to take shape. Original photos of Apple’s signature wooden tables from the store can be dated back all the way to April of 2015, though.
Images and video of the Schildergasse grand opening come courtesy of Macerkopf. The first visitors to the store this morning received a free Apple t-shirt. The new (RED) iPhone 7, 9.7-inch iPad, and iPhone cases + Apple Watch bands were also all available to purchase this morning.
As for the new Miami store, reports of its existence first began last year when it was rumored that the Apple Store would be the ‘largest retail store’ in a new Miami shopping center. A variety of customers shared images from the Miami opening on Twitter. Customers were lined up out front for hours in advance of the opening.
Lastly, Apple today also opened a new retail store in Nanjing Jinmao Place. There aren’t as many images of this opening, but it appears that it too opened in typical Apple celebratory style.
Head of marketing Leane Adolph said on Wednesday all free-standing stores under both these brands would close by the end of March.
“The company regularly reviews the portfolio’s performance and relevance to market and decided to move the Mango business into the store-in-store concept within Edgars. Similarly, with Nine West, we will keep a wholesale presence [for handbags] in the SA market through Edgars,” she said.
The House of Busby owns the exclusive rights to both Mango and Nine West. The Nine West licence was acquired in 1999 and, until recently, had 13 stand-alone stores throughout the country. Nine West sells footwear, handbags, eyewear and accessories.
The Mango licence was acquired in 2006 and there were nine stand-alone stores in SA. Mango now has 35 store-in-stores in Edgars stores nationwide. Mango sells apparel and accessories. Adolph said that rumours of Busby coming under business rescue were untrue, adding it was not expected that there would be any job losses as a result of the decision to close shop for the brands as affected staff would be accommodated within the group’s structures.
The House of Busby was delisted from the JSE in May 2008, when management, together with Ethos Private Equity, acquired control. The Busby enterprise is valued at about R1.3bn. Busby also owns exclusive rights to many other well-known international brands in SA including Aldo, Forever New, Guess, Steve Madden and Call it Spring.
In the past year, it has acquired the master licences for two new brands, Women’secret and 3INA, which further diversified its portfolio from footwear, apparel and luggage to include intimate apparel and cosmetics.
Adolph said the group was confident that the rejigging of the portfolio would allow it to focus on the growth of the newly acquired brands and to optimise its existing portfolio, “re-emphasising the importance of great customer service and a commitment to delivering consistent, quality, international product at prices that reflect customer value”.
Independent analyst Syd Vianello said it was possible that the group’s pricing model had made Mango and Nine West uncompetitive in a market that was under stress and searching for lower price points.
Hermès has recently opened a new store in London on the corner of Cadogan Place and Sloane Street. The new store which covers 400 sqm 0n two floors houses every one of Hermès’ 16 métiers.
The interior, which took just under a year to design and build, was presented to the studio as a blank canvas. Upon visiting it for the fist time, Montel says one thing was immediately clear: ‘Here, the star of the shop is not the shop itself, it’s the garden,’ he says gesturing to the store’s leafy view of Cadogan Square Gardens where a bright yellow mimosa tree is currently in full bloom.
The new London store will showcase a range of exclusive products including the re-issued London Bag in four limited-edition colourways. The bag, first created in 1962 features a clasp reminiscent of the epaulettes on the London Police Officers uniforms. In addition, a Yamaha Virago motorbike, which was covered in Hermès leather, is on display for the first time in the UK as an example of le sur-mesure services available at the store.
London – Fashion and homeware retailer Matalan has expanded its international footprint with the opening of two new stores in Malta.
The new stores, located in the centre of Sliema and Fgura, Malta, offer Matalan full range of products, including menswear, womenswear, childrenswear and accessories as well as homeware. The two new stores, which employ 60 members of staff, follow on from Matalan previous stores openings at The Strand in Sliema and Zabbar Road, Fgura. All of Matalan stores in Malta are operated by the retailer’s local franchise partner, the Camilleri Group.
Matalan expands its global footprint with new store openings in Malta
“We are thrilled to be opening our first stores in Malta, trading has been very strong in both of our new stores exceeding our expectations; we have been delighted by the local customers’ reactions to our product ranges and our competitive price position,” commented *Damian Hopkins, International Director at Matalan. *The new stores build on Matalan’s international portfolio, which counts 23 stores.
Matalan opened its first international franchise store in Dubai in 2010 and has developed a strong international presence throughout the Middle East region since then. At the moment Matalan is currently looking to expand in other Eastern Europe countries, following its debut store opening in Armenia in October 2016. Matalan currently operates 227 stores throughout the UK in addition to its e-commerce platform and 25 overseas franchise stores.
Sales fell 6.7% to £178.6m for the year to 30 June 2016, while operating profit before exceptional items dropped 63% year on year to £4m, accounts filed at Companies House show.
The exceptional items include restructuring costs from the firm’s reorganisation of design teams, products and collections. Paul Smith consolidated seven lines into two last year: Paul Smith and the more contemporary collection PS by Paul Smith.
Operating profit after exceptional items was up 20% on the previous year to £11m and profit for the year was £7.9m compared to £6.1m in 2015. The firm paid out £4.4m in dividends, up from £3.7m in 2015.
“Retail sales are expected to overtake wholesale as our biggest channel for the first time in the coming year,” said director Ashley Long, pointing to a move towards strategically placed stores and key wholesale accounts, which support a comprehensive omnichannel service.
Wholesale remained its largest channel in the year but, due to weak demand in core markets of the UK, France, Russia and parts of Asia, sales fell 13% year on year.
Retail sales increased by 2.2%, and fell 2% on a like-for-like basis, reflecting a mixed performance across its core markets and the closure of the Fifth Avenue store in New York in January 2016.
During the year, the firm opened new stores in Glasgow and Dover Street Market in London. It has since relocated on Rue St Honore in Paris and opened in Birmingham and Sydney.
Online sales increased by 11% during the year, representing 16% of sales – up from 13% in 2015.
“While the wholesale market is in a period of rapid change, we do anticipate sales stabilising in the future,” said Long.
“Geographically we saw many challenges in the year. In Europe our traditional independent wholesale customer base continued to shrink. In Asia, outside of Japan, we saw a general slowdown in the ready to wear markets. In the Middle East our partners experienced low customer confidence brought about by the unsettled political situation. However, the US, Australia and South Africa all saw positive growth in the year.”
The firm said it continued to reduce overheads and had sought to become more agile in response to the market conditions and uncertainties following the Brexit vote and other external factors.
But Long added: “We expect the current challenging trading conditions to continue for the foreseeable future.”
The company said its new collections have been well received, with like-for-like retail sales up 1% on last year and overall retail sales up 7% since the year end.
Paul Smith launched his first collection for men in 1970 and for women in 1994.
Target Corp. is bringing its small-format store to the heart of Manhattan.
The discounter plans to open its first location in midtown Manhattan, a 43,000-sq.-ft. store in Herald Square, just west of the 34th Street and Broadway intersection, and one block from Penn Station — and across the street from the Macy’s flagship.
The two-level store will have two entrances, one off of 34th Street, and the other off of 33rd Street, and will feature modern décor elements, including concrete floors, wood plank walls and ceilings, pendant and LED lighting and elevated merchandise assortment displays.
Projected to open in October 2017, the Herald Square store will be one of 30 stores Target plans to open this year, and will be the company’s third location in Manhattan, joining the Harlem and Tribeca stores.
Additionally, Target has previously announced future plans to open small-format stores in Manhattan, including sites in East Village (projected to open summer 2018) and Hell’s Kitchen (projected to open in 2019).
“The addition of the Herald Square store location is exciting for Target as we expand our footprint with small-format stores in Manhattan,” said Mark Schindele, senior VP, properties, Target. “Not only will we be able to serve the thousands of working professionals that travel through Herald Square each day, but we’ll have the opportunity to showcase Target’s exclusive brands and compelling offers for the many tourists from around the world who shop in this vibrant neighborhood in Manhattan.”
Target has signed a lease for the Herald Square location with Empire State Realty Trust.
“Target’s new 34th Street location concludes ESRT’s plans for the successful redevelopment of storage space, office, and retail into 90,000 sq. ft. of retail,” said Thomas P. Durels, executive VP and director of leasing and operations for ESRT. “Target joins Sephora and Foot Locker at the best location on the 34th Street retail corridor, which spans from the Empire State Building to 7th Avenue.”
EBay Inc. EBAY, +0.33% said Monday it will roll out “Guaranteed Delivery” in the U.S. this summer, which will guarantee delivery in three days or less on 20 million items. The online auction company will also provider shoppers to search for items available for 1-day and 2-day delivery. The service will be provided at no additional cost, the company said. “While the majority of items on eBay already ship within 3 days or less, as well as for free, Guaranteed Delivery will give shoppers even faster delivery options and the confidence that their items will arrive on time,” said Senior Vice President of North America Hal Lawton. The stock, which was still inactive in premarket trade, has climbed 13.5% year to date, while shares of rival e-commerce giant Amazon.com Inc. AMZN, +0.55% has run up 13.6% and the S&P 500 SPX, -0.20% has gained 6.2%.
There are plans to open more stores in malls across New York state, New Jersey and Connecticut.
The retailer reported “significant growth” in the second year of its US ecommerce business in its last full-year.
It unveiled surging profits against strong comparables despite a “difficult trading environment”.
Pre-tax profits, excluding exceptional items, were up 50% to £17.2m in its full-year to March 26.
Sales rose 12.6% to £184.3m in the 12 months, during which the retailer opened two new stores in Meadowhall, Sheffield, and Birmingham. It now has 56 stores across the UK.
Boss Will Kernan departed last month, following five years at The White Company, to join specialist sports retailer Wiggle, replacing Stefan Barden at the helm.
UK Retail Sales for Amazon Approaching 10 Billion Dollars
March 19, 2017
The United Kingdom is the world’s sixth largest economy, with a retail market estimated at $358 billion for 2016. As one of the world’s oldest and most mature economies, the UK will not grow at a rapid pace, certainly not with Brexit waiting to become a huge spanner in the works of the UK’s future growth prospects.
Nevertheless, it is a multi-hundred-billion-dollar economy that will, at least, grow in low single digits over the next few years. The UK’s e-commerce market has been growing steadily over the years, and should continue to help the economy’s growth engine chug along over the next several years.
Arguably the most famous retailer to invade England, Amazon recorded 6.3 billion pounds ($9.03 billion) in sales from Britain in 2015, an increase of 8 percent over the year before. Amazon’s international sales were $35.418 billion in 2015, which means UK retail has been contributing nearly a fourth of Amazon’s entire overseas sales.
Source: Tesco 2016 Annual Report
On the ground, Tesco, the UK’s largest retailer, reported nearly $43 billion in sales from their home market in 2016, and the company is struggling to keep sales growing. With more than 6.3 billion pounds from the UK to its name, Amazon is slowly inching up in the UK market.
Amazon is a relative weakling compared to big box retailers like Wal-Mart and Tesco, especially when it comes to grocery retail. And that’s fortunate for the likes of Tesco and Sainsbury’s in the UK, and Wal-Mart, Costco, Target et al back in the U.S.
That makes Amazon’s success and ongoing progress in the UK retail segment even more significant.
According to data from Kantar.com, Amazon is not even in the picture as far as the UK’s grocery retail segment is concerned. It is one of Amazon’s known achilles points, and it will take years for their grocery efforts to bear fruit, in a manner of speaking.
On the positive side (for Amazon), the bulk of their growth in the UK is coming from the non-grocery segment, which means they’re eating into that market – consumer electronics, books, digital products, smart devices and so on – much faster. Too fast for the comfort of companies like Tesco, in fact.
And Amazon is not about to stop pushing in the UK retail market. The more Amazon’s gross merchandise value grows in a particular region, the higher Amazon’s investment in fulfillment centers, logistics and other capital expenses in the region. As investments increase in lockstep with the size of Amazon’s business in that region, margins will slowly keep improving, as they’ve already shown in the United States.
The high-end winter clothing retailer and brand, which trades in around 50 countries worldwide through hundreds of concessions and an ecommerce platform, will move into 244 Regent Street – the unit formerly occupied by Armani Exchange.
Sources close to the situation told Retail Week that the deal for Canada Goose to acquire the lease on the Crown Estate-owned unit was “a done deal”.
It is understood that Canada Goose plans to open its doors in the autumn, in time to capitalise on the busy Christmas trading period.
The shop will be Canada Goose’s third standalone store anywhere in the world, having opened its doors in Toronto and New York to much fanfare late last year.
Retail Week understands the business is pursuing a strategy to open a number of other flagships in key cities across the globe over the next few years as part of its rapid growth plans.
Canada Goose’s revenues have rocketed by more than 450% in the past five years alone.
London’s shoppers can expect an experience-focused shopping trip when the store opens later this year.
When it revealed plans to open its first two stores in Canada and the US a year ago, Canada Goose said the shops would “deliver unparalleled service, putting experience at the forefront of every interaction”.
It invested in training to ensure its shop-floor staff became “not only product experts, but true brand ambassadors”.
Canada Goose also boasted that the stores would stock “a full assortment of every seasonal collection with the largest variety of colours and sizes anywhere in the world”.
Retail property consultancy Harper Dennis Hobbs, which advised Canada Goose on its search for a UK store, declined to comment.
Details of the premium parka-maker’s plans to launch a bricks-and-mortar presence in London emerged just a day after it floated on the New York Stock Exchange.
After setting its IPO at $12.78 (£10.35) per share, the price surged 26% to $16.08 (£13) on the first day of trading.
The successful stock market debut valued the company at $1.7bn (£1.37bn).
The business was founded in Toronto by Sam Tick 60 years ago, under the name Metro Sportswear, which initially specialised in woollen vests, raincoats and snowmobile suits.
In the 1970s, Tick’s son-in-law David Reiss – no relation to his namesake who founded British fashion retailer Reiss – joined the company and established the label Snow Goose, which later became Canada Goose, branching out into Arctic and mountain expedition coats.
The label made its on-screen film debut in 2004 when its jackets appeared in two Hollywood blockbusters, The Day After Tomorrow and National Treasure.
Private-equity group Bain Capital bought Canada Goose in 2013 and last year it opened its first two flagship stores, at Yorkdale Shopping Centre in Toronto, in October, and Wooster Street in New York City, in November.
Zara’s is trying an unusual strategy as brick-and-mortar retailers are desperate for more foot traffic – bigger stores.
Zara’s newest store in La Coruna, Spain, which opened in September, is five stories with more than 54,000 square feet and is serving as a model for other flagship stores. Meanwhile, the women’s clothing and accessories retailer, owned by Inditex SA, is shuttering smaller stores, although it hasn’t said how many, according to the Wall Street Journal.
The idea is that the larger stores will encourage customers to browse more, and therefore buy more. The move is one answer to retailers’ urgent question of how to stop plunging sales being lost to online shopping channels. Zara’s strategy to set itself apart also includes faster clothing production so that its products are cycled in and out of its stores faster than its competitors’ apparel. (See also: Retail Deathwatch Continues.)
So far this year, several retailers have already succumbed to dour retail trends. Retailers that have filed for bankruptcy in 2017 include Gordman Stores (GMAN), HHGregg Inc., RadioShack, The Limited Stores and Wet Seal. (See also: Year of Retail Bankruptcies Looms.)
This past earnings season, a slew of retailers, especially mall-based and women’s apparel retailers, reported disappointing losses and sales declines. Most recently, Guess Inc. (GES) on Wednesday reported fourth-quarter revenue growth of 3 percent year over year, although that was driven by an 11 percent increase in Europe and a 27 percent increase in Asia. In the U.S., revenue declined 6.5 percent. (See also: Guess Drops to a Multi-Year Low on Downgrade.)
“In the Americas retail, where the retail environment remains challenging, we are focused on profitability improvements,” Guess CEO Victor Herrero said in a statement. “We will continue to negotiate rent reductions whenever possible and plan to close 60 stores in fiscal 2018. And finally, we will remain focused on implementing supply chain initiatives that should drive profit improvement in fiscal 2018.”
Zara’s is aiming to avoid Guess-type losses with its plan for larger flagship stores and rapid inventory turnover.
Banana Republic appoints new chief executive
16 March 2017 | by The Retail Bulletin
Breitbard will report to Art Peck, president and chief executive of Gap, who will continue to directly oversee Banana Republic until Breitbard joins the company in early May.
Peck said: “Mark brings significant retail leadership experience to Gap Inc., along with deep knowledge of the company and our customer. We know what Banana Republic is capable of, and Mark’s ability to drive transformation and innovation will help revitalize the brand and position it to achieve its long-term potential.”
Breitbard’s was chief executive of The Gymboree Corporation from 2013 until early 2017. From 2010 to 2013, he held leadership positions across Gap North America where he was instrumental in delivering the product-led resurgence of Gap’s North America business.
He also served as chief merchandising and creative officer of Old Navy from 2009 to early 2010. Other previous positions include leadership roles at Levi Strauss and Abercrombie & Fitch.
The internationally renowned Parisians’ favourite department store ‘Le BHV Marais is set to open its first flagship store in the United Arab Emirates on the 13th of March 2017 in the buzzing City Walk, Dubai as part of its international expansion in franchising with MEDS.
An exclusive media visit to discover Le BHV Marais was hosted today by Mr. Pascal Abchee, General Manager, MEDS and attended by Home dcor, gastronomy, style and fashion experts.
Established in 1856 in Paris, Le BHV Marais is a subsidiary department store from the Galeries Lafayette group and celebrates this year its 160 years anniversary.
‘Le BHV Marais first Emirati branch reflects the strong partnership between Galeries Lafayette Group’ and MEDS and is a confirmation on the trust in our company and the fast growing UAE retail market ‘ said Mr. Abchee.
Spread over two floors totalling 6,000 sqm, the store was designed by the renowned architect Kristina Zanic who ensured preserving its Parisian flagship store atmosphere and identity by using wood and stone finishing.
Shopping sprees become an exciting journey within the different departments of fashion, beauty, home and gourmet.
On the ground floor, the beauty department is a haven with over 30 of the world’s top names. The same floor houses the trendiest bags, jewellery nd timepieces to be matched with the latest fashion collections for women, men and kids by emerging talented designers and renowned brands.
The first floor is dedicated to exquisite home accessories from French cookery to living rooms and bedroom designs, cutlery, table decorations and home appliances.
The gastronomy segment is a foodies’ destination, where kitchen variety is abundant with a large choice of high standard restaurants.
Led by the famous Executive Chef Russell Impiazzi, the famous Galeries Lafayette Le Gourmet satisfies its loyal fans and food lovers at its second branch at Le BHV Marais. Mastering a multitude of international cuisines, ranging from Italian to Indian, in addition to delicious pastries and a unique retail section, Le Gourmet is the perfect place to indulge your cravings.
Le Gourmet also introduces ‘Le Grill a new concept specialized in rotisserie and grill created to tantalize meat lovers’ taste buds.
Le BHV Marais’s Dubai branch mirrors the steady growth of the UAE retail industry which now accounts for 11% of the country’s GDP. Dubai’s dominantly young and vibrant market demands sophistication, which Le BHV Marais caters to with accessible and high-end brands targeting a customer base ranging mainly between 25 and 45 years old.
Sean Madden, senior director of service and experiences for Nike’s direct-to-consumer division, says the tech inside the store isn’t meant to be the main attraction. Instead, he says these features are designed to make the shopping experience more personal. With the hoop, for example, the Kinect sensors are there to capture movements from your body and display those on a massive screen in front of you. That being said, the idea is obviously that you’ll use that area to try on shoes you’re interested in.
I went inside the store, which happens to be near Engadget’s NYC office. Here’s what else I came across during my tour.
Whether it’s a brand’s first store, largest store or just the most prominently located, flagship retail stores come in all sorts of different shapes and sizes. One thing they universally are is the lead store for a brand or retail chain, which means they typically have the best in products, design and technology. And that means there’s a lot that can be learnt from them.
Here’s our pick of the top 50 flagship retail stores in the world (in no particular order and excluding department stores) – the stores that we think act as a true showcase for the brand, that draw customers in, that create an experience and are a destination in their own right.
Many brands have multiple flagship stores around the world, each with their own unique traits, so the rule is that each brand or retailer can only appear once on the list.
Apple (New York)
Open all day, every day of the year, Apple’s New York flagship is the store that never sleeps. It’s not your typical store though – the main building is underground with the entrance marked by a stunning 30-foot square glass cube. It could be a piece of art aside from the Apple logo.
Inside there is a 45ft Genius Bar for troubleshooting, with the rest of the space given over to product display. Staff are on-hand to help with queries, while the store also runs a programme of events to help customers get the best out of their products.
A new flagship opening is fashion company H&M’s giant Barcelona store, which is the brand’s first-ever space to have a food offering, courtesy of Flax & Kale. Inside there’s a mix of materials from marble to wood to glass, and a design that is sympathetic to the building itself, which add up to a more luxurious feel for the brand. With all of H&M’s clothing, kids, home and beauty ranges available under one roof, it’s the complete brand experience.
At 133,000 sq ft in size, clothing and homeware retailer Primark’s Madrid flagship almost feels like its own shopping centre. The design marries the historic details of the building with neon lighting and new technology, including 11 interconnected transparent screens in the atrium that create a 360 degree experience. Throughout the store there are striking design details, with each area having its own unique style and identity, which help customers lose themselves in the experience.
Another new opening is the biggest LEGO store in the world in London’s Leicester Square. The space is full of life-sized models, including a replica London Underground carriage that you can sit in, making it experiential and aspirational in terms of what is possible. It’s the perfect brand showcase, with customers even able to buy a personalised LEGO mosaic of their face. The digital endless aisle makes it easy for customers to view all of the sets available in the store, and staff can better serve shoppers by receiving requests for help to their smart watches.
Louis Vuitton (Singapore)
Louis Vuitton’s Island Maison in Singapore is a one-of-a-kind concept for the brand. The glass façade makes the store look more like a museum or art gallery or other cultural building, particularly given the position on the waterside. Inside the nautical theme extends to the design, and serves to underline the luxury nature of the brand, conjuring up the idea of private yachts. With lots to explore, and terrace spaces to relax on, it’s more of a lifestyle destination than shop.
Billed as a ‘global’ flagship store, fashion retailer Uniqlo reopened its London space last year, which boasts six floors, including a rooftop terrace for events. Two floors are given over to the new concept space Life WearHouse, which acts as a cultural hub with its own entrance from the street. It’s used to showcase Uniqlo’s LifeWear range with regularly changing themes, which gives shoppers a chance to interact with new products and ideas early on.
Samsung 837 (New York)
The ultimate experience space, to the extent that nothing is for sale, Samsung 837 is dominated by a huge screen that spans all three storey’s, which together with theatre-style seating, enables it to be used for events and livestreaming. As a space focused on experience, Samsung 837 let’s shoppers find out about everything the brand has to offer from VR to smart home products. A focal point is the gallery space that showcases collaborative projects with artists, such as the ‘Social Galaxy’ that combined screens and mirrors to surround shoppers with images from their Instagram feeds.
Miu Miu (Tokyo)
Looking a little like an open box on its side, fashion brand Miu Miu’s striking Tokyo flagship is made of steel. Inside metal copper walls continue the look, while also reflecting the products on display. It’s a unique space that has a minimal amount of products on display, which encourages customers to interact with individual items, while every design detail has been carefully thought out, down to the hangers. For those that don’t know the brand it’s an enticing space, but those that do also want to spend time there.
Out of all the Burberry stores, the Regent Street flagship is perhaps the greatest example of the blending of the brand’s digital and physical offerings. The store mirrors the different sections of the website to create a consistent experience, but is enhanced through the use of top tech like interactive mirrors. There’s also a focus on events with livestreaming and in-store experiences, which makes for more than your average shopping trip.
Microsoft (New York)
For its first flagship retail store, Microsoft opted for the wow factor with a glass façade that allows passerbys to see inside, and five floors of different offerings. A two-storey digital ‘culture wall’ oversees Microsoft’s various product ranges, while Dell has its own floor space. There’s also a community theatre for training workshops for staff, and other events. The store is also home to offices for Microsoft itself which keeps employees as close to the customer as possible.
11. Lululemon (New York)
Located in the Flatiron district, atheleticwear brand Lululemon’s New York flagship is its largest to date at 11,500 sq ft. It’s specifically designed to bring in customers, and keep them there, by offering more than just clothing. The Concierge is a hangout space within the store that looks like a trendy kitchen and boasts a community board to discover new places to go and eat, as well as the ability to find and book local classes. In keeping with Lululemon’s community ethos, the top floor is home to Hub Seventeen, a space where nothing is for sale, but hosts classes, events, dinners and more.
At the heart of Oxford Circus is the iconic Topshop and Topman flagship store. Three different floors have everything you need to spend a day out, including a café, hairdressers, nail bar, barbers, and various pop-up services. Particularly successful is the extension of the personal shopping service to include men, with a specific lounge style space for customers to chill out in. While Topshop may be known throughout the UK, the flagship store lives up to its role of figurehead for the brand.
Homeware specialist Habitat reopened its newly revamped London flagship last year which puts the focus on experience. From the outside, the windows look onto room sets within the store giving it an open feel, while the dark floors let all of the design flair and colour used throughout the space pop. It’s an aspirational space, which also has interactive touchscreens throughout to link up the experience with Habitat’s website.
Tiffany & Co (New York)
Luxury jeweller Tiffany & Co’s flagship store on 5th Avenue is known throughout the world. The iconic store is a beacon for tourists and shoppers alike having been in the same spot for more than 75 years. As well as selling jewellery, the store tells the brand story, which includes being the home of the famous yellow Tiffany Diamond. For those who want the next level of service can book an appointment in the Tiffany salon to discuss custom designs.
Prada’s Tokyo flagship, Japan’s largest flagship store at the time of opening, is another store making the most of glass for impact. The diagonal grid design makes it possible to see inside the entire store, which is enticing for visitors, but it also acts to make the walls feel thin, as though there is no barrier to entry. Inside there are six floors of Prada products from menswear to womenswear to fragrances meaning brand enthusiasts and new visitors can find anything they desire.
It’s the biggest Lush store worldwide with three whole floors dedicated to exploration and experimentation. Customers can visit the ground-floor spa, try out the brand’s ethical bath and beauty products, and even test hair care products in the Hair Lab. As with all Lush stores, staff are hugely knowledgeable about what’s on offer and the ingredients in each product, so they can provide customers with advice and recommendations. The store is also home to exclusive products which adds to its draw as the place for Lush fans to visit.
You can’t mistake Gucci’s Shanghai flagship store as being anything else. The gold façade with Gucci branding dominates the surrounding area, with the gold theme carried over to the interior design. Despite being one of 28 Gucci stores in China at the time of opening, the store still manages to have the wow factor, with wood and marble adding to the luxurious feel. With a full range of Gucci fashion and accessories available, it’s a brand showcase first, shopping space second.
Charlotte Tilbury (London)
As the first standalone Charlotte Tilbury store, the design of the brand’s Coven Garden flagship is suitably glamorous with its art deco and old school Hollywood vibe. It offers two different shopping experiences to customers – Fast and Fabulous. Fast is for those in a hurry with the products needed to create 10 of the brand’s top looks laid out together, alongside visual and digital examples of how to recreate. Downstairs is the Fabulous concept aimed at those who want more of an experience, including having their make-up done at one of seven vanity tables that are inspired by icons like Marilyn Monroe.
More than 7,000 products are housed in this five-storey flagship from cosmetics chain Sephora. Even ‘Spehora University’ training centre. Design-wise there’s a visually impressive black-and-white striped theme that runs through the inside and outside of the store, with a number of different interactive nail and make-up areas for customers to explore. The best of these is the perfume selection counter, which has a selection of suggested perfumes for different occasions. Each perfume has a corresponding flower-like horn which customers can use to see what they smell like. For extra guidance, they can complete a quick quiz on an iPad which will tell them which perfume they might like best.
Nike (New York)
New York’s Soho district has recently gained a new 50,000 sq ft, five floor, Nike flagship store. It’s the ultimate example of immersive shopping with customers able to try out Nike products on treadmills, basketball court and playing football. Cameras track their movements and record them on the Nike+ app where they can be analysed, and help with decision-making. Staff can also see when customers last tried out the experiences and what products they were using, which improves product suggestions. While the design offers the wow factor, it’s the experiential elements that elevate this over other Nike stores.
Another amazing beauty flagship is Mac Cosmetics’ Paris store. Located on the famous Champs-Élysées, the store feels almost futuristic thanks to the curved interior design and use of mirrors and black tiles. Big and bright graphics give it a young and edgy feel, with products spread out over two floors to give customers as much of the brand’s range as possible. Being a flagship store is also has more experiential elements including a VIP area for special events, presentations and VIP appointments.
Located on London’s Regent Street, this four-floor Superdry flagship uses dark and light throughout its design for dramatic effect. The store uses a lot of dark wood for its displays, walls and floors, with metal, glass and exposed brick adding an industrial vibe to the space. There’s a lot of lights at work, but they’re focused on stock and mannequins, which gives the space as a whole a closer feel. Down in the basement is the Premium Lounge, which retains the original art-deco design of the building and is used for personal shopping and styling. Separating it in this way gives it a more exclusive feel, with the space also used to show off latest collections and exclusive collaborations.
Ralph Lauren (New York)
There’s a few to pick from, but we think Ralph Lauren’s mansions, which sees men and womenswear sitting across the road from each other in their own luxurious mansions, pip the others for top flagship. Each has its own elegant design, which is sympathetic to the original architecture, which makes the spaces feel more like luxurious homes than normal stores, and are perfectly tailored to their target audiences, right down to the services offered. As a flagship concept, the mansions are a perfect figurehead for the Ralph Lauren brand.
With it clear and blue glass design, which cleverly mimics the Gap logo, the clothing brand’s Tokyo flagship is impressive before you even go inside. Four floors mean that all elements of Gap’s offering can be found inside, from menswear to womenswear and children’s, with the first floor dedicated to new and special seasonal products. The colour theme continues inside, cleverly using bright blue fluorescents to highlight signage and products to great effect against the store’s white background. Plus the bright blue lit-up elevators are a stunning focal point.
Located in Tokyo’s Yurakucho, this is MUJI’s largest store worldwide. It may not look like it from the outside, the store has three floors and every single product MUJI offers available to buy. In keeping with the brand ethos, the design is fairly simple, but effective – all wood and glass. Although there’s some quirky display ideas throughout, the wow factor comes from the two-storey sheet metal MUJI house, which sits inside the store and let’s customer explore the company’s offerings in room sets. There’s also an in-store café, which helps to keep customers in the space for longer.
Restoration Hardware (Boston)
Home furnishings company Restoration Hardware has turned a former museum in Boston into an iconic flagship space. Chandeliers, pillars, huge windows and a central glass elevator allude to the building’s previous use, but also make Restoration Hardware’s homewares and room sets look as high-end as possible. You can almost imagine the store as some luxurious living space. The third floor has a huge Eiffel Tower replica, as well as an in-store wine bar and olive trees, plus a cinema room showing old films on TV screens.
Puma House (Tokyo)
Looking more like an art exhibition than our obvious store, Puma House in Tokyo is a great example of a flagship store doing something different, but showcasing what the brand has to offer. The whole is quite stark with plenty of exposed concrete and white paint. Wrapping around all of this is dark wooden stairs on which the different shoes are displayed – there’s no traditional shelves or units anywhere. The space also has a press and events space for product launches, exhibitions, events and more.
As you might expect from Dior, The House of Dior on New Bond Street is a super luxurious space. The focus is on customer experience, rather than technology, which is why the store is full of sofas for shoppers to sit on, beautiful artwork and sculptures and VIP shopping areas. It’s all about having space to engage with the brand and its products. With grey as the main colour, which means all of the products pop against it, the space is more akin to walking around a beautifully designed house than a store.
Victoria’s Secret (New York)
The world’s largest Victoria’s Secret in New York defines many of the design elements seen in the brand’s other flagships and stores. The black walls and pink display details, marble floors and chandeliers add up to a glamorous and luxurious shopping space that perfectly ties in with the brand and its products. With different areas and rooms on each floor, rather than one open shopping space, the store feels more intimate and experiential.
Adidas Originals (Berlin)
Also going for the industrial feel, but a very different atmosphere is the Adidas Originals flagship in Berlin, the first of these Adidas Original stores. Grey and blue are the highlight colours here, from the shop exterior to the inside displays. There’s a lot of metal and concrete at work, but the bright lighting (apparently inspired by Berlin itself), especially the blue neon used on the shoe displays, gives it a cool vibe. The space is designed to fit into the local neighbourhood and runs a series of events and product launches to connect with customers. Plus, in-store stations for customising products add an element of personalisation.
Last year luxury leather goods brand Longchamp revamped its rue Saint-Honoré flagship in Paris. While the works went on the store chose to cover them with a façade of beautiful bright coloured artwork by artist Ryan McGinness, which kept all eyes on the space. Although the now reopened store doesn’t have that same eye-catching colourful look, it’s still a fabulous example of the best-of-the-best flagship experience. There are a lot of natural textures within the space, as well as light, which combined with the layout creates a lot of space for customers to move through and explore the products on offer.
It’s the first Disney store in China and the biggest of its type in the world. From the air you can see the iconic Mickey Mouse shape, which at night is lit up by LEDs, while inside the focus is all on fun and experience for kids and their families. There’s a 19 foot high replica of Disney’s Magic Kingdom castle which hosts a musical and projection show, a talking Magic Mirror, huge Marvel models and other magical elements aimed at selling the Disney ethos to customers.
Sonos (New York)
For wireless speaker brand Sonos it’s all about experience translating into sales and the New York flagship reflects that. The focus is on seven sound-proof pods that are shaped like houses, and each have their own design, where customers can test out the different speaker types. Lounge areas are spread out throughout the store to encourage people to chill and chat, while the ‘Wall of Sound’ feature wall of Sonos products shows the extent of what is on offer. It’s a much more exciting space than your average electronics store, which helps bring new customers to the brand.
Dr Martens (New York)
Dr Martens New York flagship shows how you can still create that brand experience in a smaller store. There’s a British vibe to the décor with its leather seating for shoppers and coffee table style product displays. The store also uses Dr Martens’ iconic boots as part of the design aesthetic as well with large glass-fronted cases of different products and memorabilia set into the walls like mirrors. As a dedicated local space for customers to get closer to the brand it’s a great concept.
35. Moncler (New York)
The Moncler Madison Avenue flagship celebrates both its location and the brand’s well-known jackets. Home to the most extensive array of Moncler products in North America, the launch of the store was marked by a short musical film by Spike Lee and a special American flag display made up of 28 one-off jackets designed by Thom Browne. The store balances light and dark marble with specially-designed pieces of artwork, including a kinetic light sculpture from Belgian artist Bardula.
O2’s Berlin flagship is a great space because it doesn’t look like your typical phone shop. The design is light and bright, using wood and chalkboard effects to create an inviting space. While there are some products and accessories on display, it’s more about encouraging shoppers to spend time in the place. This means there’s lots of cool and comfy places for people to just sit and hang-out, as well as a coffee shop and lockers for customers to charge their phones.
Valentino (New York)
Although fashion brand Valentino’s New York flagship has just three floors, the exterior glass façade actually covers eight storeys making it a stunning reflection of Fifth Avenue. The main interior design feature is grey Terrazzo against which Valentino uses brass, wood and marble to display its products. With menswear, womenswear and accessories all on offer, it’s the grand scale of the space that elevates this flagship.
Kirk Originals (London)
For innovative design look no further than British eyewear brand Kirk Originals’ London flagship store. It captivates even from the outside as cut-outs of eyes hang in the windows and customers can see inside the dark-painted space. Inside though, the wow factor is ramped up by an art-like display of glasses on faces popping out from the walls, which lead customers through to a kaleidoscope projection of the brand’s logo.
UGG’s flagship Sydney store is actually its second in the city, as well as its largest in Australia. While UGG is well known for its boots, the two-floor store is also home to its clothing, accessories and homewares ranges. The design reflects the classic UGG colours of brown and cream, with comfortable sofas and seating throughout the space for weary shoppers. It’s a beautiful, warm space that invites you in – useful in introducing those who might only be familiar with one part of UGG to the rest of the offering.
The building design of fashion brand Zara’s flagship store in Rome is incredible in its own right, but inside the space takes your breath away. There are five square-shaped floors, all centered around a middle opening which is strung with lighting, which makes the space feel more impressive. The design feels faithful to the exterior as well with its use of marble and columns, while the use of greenery and trees on each floor adds a little something extra. As a flagship it feels a long way from Zara’s high street stores, perhaps showing a different side to the brand.
Missguided’s first-ever physical store is a brilliant flag-bearer for the brand. The design perfectly encapsulates the brand ethos, from the bright pink truck and motorcycle set pieces to the hang-out style fitting rooms and numerous selfie opportunities. The store has been designed with textures and materials that can be quickly changed out to later the look and feel as new ranges come in. It also links into the brand’s website to showcase the same content and products as online for a more cohesive experience.
Last year Hermes reopened its Singapore flagship at Liat Towers after 15-months of renovation. The revamped space now has a stunning blue façade with window space for artist exhibitions. Inside the top floor is also a dedicated art exhibition space. The rest of the store has everything from the usual clothing and accessories to writing and stationery products and the brand’s equestrian range, allowing shoppers to immerse themselves in the Hermes lifestyle.
Another store that has been revamped in recent years is luxury goods brand Bulgari’s Rome flagship. The work was aimed at enhancing the already beautiful building and its history, including adding back in the VIP door used by stars in the past and sliding doors to the room Elizabeth Taylor spent time in. The space feels suitably luxurious with its marble and dark wood features, and the gallery-style layout of individual rooms makes it easy to move about and see everything.
44. Axel Arigato (London)
Designer trainer brand Axel Arigato’s first London flagship is a minimal design statement. All black, white and grey in design, even looking in from the outside you can’t see a lot, which may well intrigue those unfamiliar with brand. Products are displayed on simple concrete tables or wall screen-like dividers, which conjures up feelings of an art gallery. With nothing to distract customers though it means all of the focus is on the shoes.
Acne Studios (New York)
Minimal in terms of products on sale, but maximum when it comes to impactful design, Acne Studios’ New York flagship is another space pushing the boundaries of what we expect stores to look like. With just a small, curated array of items on them it’s the gold metal of the shelves, hangers and walls themselves that do the talking. They’re offset by black asphalt floors and pillars, flecked with semi-precious stones, which makes it feel like a special and luxurious space.
Charlotte Olympia (London)
As the first UK flagship for footwear brand Charlotte Olympia, the Maddox Street store has similar hallmarks to many of the brand’s other spaces. From the outside the store looks quite understated, aside from the leopard statue with a shoe in its mouth in the window, but inside gold dominates. Shoes are displayed like art pieces or jewellery, each on their own stand and lit from above with spotlights, and the space has plenty of spaces for customers to sit down and talk to staff about their purchases.
Guerlain’s store at 68 Champs-Elysées is an iconic flagship space. Gold and glass dominate the design with the brand’s fragrance line displayed on all sort of uniquely shaped units and holders. The space is geared up for interaction and exploration, with room also given over to Guerlain’s make-up and skincare ranges. Customers can also go deeper into the Guerlain world through the in-store restaurant and spa facilities.
Dyson’s store in London is yet another first-ever physical space for a brand in Britain. Created to let customers play with and experience Dyson products, the space showcases just one of each item on a plinth, with no other stock on display. Customers can test out the products, particularly vacuum cleaners on different types of floor, and even dirt. There is also an in-store hair salon where customers can have their hair blow-dried with Dyson’s new hairdryer.
A tourist attraction in its own right, Hamley’s seven-floor Regent Street flagship is the biggest and oldest toy shop in the world. As such, it’s a mecca for toy fans, kids and adults alike. Like the products it sells, the store design is all about play and fun, from the big red London bus that houses the stairs/escalators to the staff demonstrating products on the shop floor. When it comes to living and breathing a brand, Hamley’s is a genuine experience.
Opening Ceremony (Tokyo)
Replacing the original Opening Ceremony flagship in Tokyo, the fashion company’s Omotesando store covers four floors, each with their own theme. Bright colours and quirky graphic patterns add interest throughout, as do the display cases set in life-sized animal models. It’s an inspiring space that encourages people to take photos and share their experience, which in turn draws others in.
Fat Face has posted a rise in sales but its profits have been hit by the devalued sterling.
As a result, the retail chain successfully negotiated a “convenant reset” with lenders over its £149 million debt.
In its full year report, released last Friday, Fat Face’s pre-tax profits dropped by nine per cent to £22 million while its sales went up by 7.2 per cent to £220.2 million.
The sales were boosted by a 20.6 per cent jump in ecommerce sales, which made up 18.2 per cent of the retailer’s overall revenue.
Meanwhile, international revenue was flat, coming in at £4.9 million for the year.
Fat Face also opened eight new stores in its estate last year, bringing its total estate to 225 stores across the UK and Ireland.
Despite the post-Brexit decline in the pound taking its toll on profits thanks to rising costs associated with currency pressures, Fat Face had plans to open more new stores this year.
Footwear retailer Aldo has appointed David Bensadoun as its new chief executive, to replace current boss Patrick Frisk.
Bensadoun first joined the Montreal-based retailer – which has several stores in the UK – in 1995 as a project manager before working his way up to president of the Aldo Group in North America.
He is also the eldest son of founder Aldo Bensadoun, and he is slated to start his new role on April 3.
The news comes amid other senior management changes at the global retail chain, including the appointment of Norman Jaskolka as deputy chairman of Aldo Group.
Frisk was thanked by the new management team for his work at Aldo.
“Frisk has been instrumental in helping the Aldo Group reach new heights as we continue to build our business and culture around the world,” Aldo Bensadoun said.
Feb 28: Forever 21, a leading fast fashion brand from Aditya Birla Fashion and Retail Ltd (ABFRL), part of the Aditya Birla group, is further strengthening its foothold in Mumbai with the launch of its 4th store, taking the total count to 15 stores in India.
Forever 21 is a California-based fast fashion brand that entered the Indian market in 2010. In July 2016, ABFRL acquired the exclusive online and offline rights to Forever 21’s India network from Diana Retail Pvt Ltd.
“Having established a strong affinity with fashionable Indians in Mumbai, Delhi, Bangalore, Chennai, Pune and Hyderabad, Forever 21 creates a new fashion destination for the uber-stylish Mumbaikars with its 4th store at Phoenix Market City. Bringing global trends and runway fashion closer to the fashionistas, Forever 21 promises to provide a fashion journey with the latest looks and Spring Summer 17 collection,” said a company statement on Tuesday.
Complementing Forever 21 apparel and accessories, the new store will feature the retailer’s other brands, including 21MEN-a line of fresh, fast fashion for men of all ages, Love & Beauty-a cosmetics line and Forever 21’s lingerie and shoe line.
Abhinav Zutshi, India Business Head, Forever 21, said, “we are proud to say that Forever 21 is the most loved fashion brand by Mumbaikars and our 4th store launch is a testimony to the love and support we get from our consumers. Forever 21 brings the latest global runway trends to India and we aspire to make them accessible for fashion conscious millennials.”
Based in Mumbai, Aditya Birla Fashion and Retail Ltd manufactures and retails clothing, footwear, and leather products. ABFRL was formed after the consolidation of the branded apparel businesses of Aditya Birla Group comprising Aditya Birla Nuvo Ltd’s (ABNL) Madura Fashion division and ABNL’s subsidiaries Pantaloons Fashion and Retail Ltd (PFRL) and Madura Garments Lifestyle Retail Company Ltd (MGLRCL) in May 201 Post the consolidation, PFRL was renamed as Aditya Birla Fashion and Retail Ltd.
ABFRL shares were trading at Rs 159.65, up 1.40% from the previous closing of Rs 157.45, on BSE at 11.43 am today.
Starbucks is closing its two remaining Evolution Fresh juice stores.
Seattle Met first reported that the two Seattle-located stores will close this spring — a move that officially removes the coffee-chain from the fresh juice bar market, notes Consumerist. However, the company is still slated to sell the juices at its coffee storefronts.
Starbucks (sbux, -0.28%) bought the Evolution Fresh in 2011 for a reported $30 million. Before, the juice company was a wholesaler, selling its products to high-end grocery stores like Whole Foods (wfm, +1.32%). Its first stand-alone stores were opened near Bellevue, Wa., according to Consumerist.
Saks Fifth Avenue is coming to India
Contributor2 days ago
Saks-building – retail in asia
Saks Fifth avenue is set to enter India with two new stores following a yet-to-sealed distribution deal between the American department store and Aditya Birla Fashion Retail Ltd.
The first Saks Fifth Avenue store looks to open in Aerocity near the Delhi airport followed by a second in Mumbai’s Bandra Kurla Complex (BKC), sources told Livemint, but not until late 2017 or early 2018.
“Aditya Birla Group is in a late stage of discussions” to lease 100,000 square foot of space in Worldmark 2, where the first Saks outlet in India will open, a sourced also revealed to the Economic Times.
Saks Fifth Avenue corporate personnel have visited India twice in the past three months, ahead of a return trip planed for March, said the sources. Both firms have reached an understanding and are in the process of finalising their plans, a person told local media. It is also believed CBRE is acting as a real-estate consultant, according to sources.
SEE ALSO: New CEO of FlipKart in India to compete Amazon
Both Saks and Aditya Birla were unavailable to comment.
The partnership between Aditya Birla Fashion and Saks Fifth Avenue is expected to take form as a long-term licensing agreement. The department store sells cosmetics, apparel and accessories from luxury brands. It is also expected to introduce brands like Ralph Lauren that are not present in India, said sources.
Owned by Hudson’s Bay Co., Saks Fifth Avenue has about 60 stores worldwide. The parent form has been looking to expand its fold – which includes Saks Fifth Avenue and Lord & Taylor in the United States, as well as Galeria Kaufhof in Europe — to reduce the impact of consumer spending in North America.
In early January, Hudson cut its full-year revenue forecast for the second time, citing a challenging retail environment in the United States and Europe.
According to Reuters, Hudson’s Bay made a takeover approach for retail chain Macy’s in February, in a deal that would push the Canadian department store operator deeper into the U.S. market.
Aditya Birla Fashion Retail operates the Madura Fashion division. It distributed brands including Van Heusen, Louis Phillipe, Peter England and Allen Solly. In 2012, it acquired Pantaloons department retail chain, India’s largest fashion and apparel retailer, with a revenue of over Rs6,060 crore in 2016.
Victoria’s Secret’s comparable sales are likely to fall about 20% this month parent company L Brands said on Wednesday, igniting fear among investors that the brand’s turnaround attempt is unraveling. Shares in the company, which also owns Bath & Body Works, fell 12% in after hours trading.
Victoria’s Secret has been in turmoil for more than a year now as it looks to reinvent itself in an ever more crowded apparel field. Last February, star executive Sharen Turney was ousted as the brand’s CEO, and Victoria’s Secret dropped some categories like swimwear and discontinued its print catalogs. (Without those moves, the February drop would be more like 14%.) At the time, L Brands warned investors that results would be bumpy until it found its legs again.
The brand, though far from a high-end name, is part of pop culture thanks to an annual lingerie show that is broadcast on national television and attracts some of the biggest names in pop, including Taylor Swift and Nicki Minaj. On Turney’s watch, Victoria’s Secret’s annual revenue rose to nearly $8 billion in the fiscal year that ended in February 2016. But more recently it has been battling with the emergence of athleisure and better bra offerings from the like of American Eagle Outfitters’ Aerie and Gap Body.
And the parent company’s 2017 forecast suggested little relief was coming for a brand that not long ago could do no wrong.
L Brands expects to earn between 20 cents and 25 cents per share in the first quarter, compared with the 49 cents per share expected by Wall Street analysts, according to Thomson Reuters. For the full year, the retailer forecast a profit of $3.05 and $3.35 a share, below analysts’ projection of $3.70 a share.
The company forecast comparable sales will have fallen a mid-to-high-teens decline in February, which includes the crucial Valentine’s Day occasion for the lingerie industry, well below its prior forecast of a mid-single digit decrease, largely because of Victoria’s Secret’s problems. The brand generates 70% of L Brands’ total revenue.
AO CEO and founder, John Roberts, will be replaced by COO, Steve Caunce.
AO World has announced its CEO and founder, John Roberts, is stepping down after nearly 17 years.
Roberts created the online electricals retailer in 2000 and will now move to a new executive role.
Effective immediately, COO, Steve Caunce, will step up to become CEO.
Roberts has always been a big believer of technology innovation, which saw the business quickly launch same- and next-day delivery options as well as develop a significant social media following, thanks to its team of over 100 IT professionals and substantial marketing team.
Guess focuses on international markets
American clothing brand Guess has decided to venture off into expansion on an international level. Chief executive officer Victor Herrero just confirmed plans to broaden the company’s reach in both Europe and Asia.
The company has done well in both North America and South America, expanding in the past couple of years. Guess hasn’t done as well in Europe and Asia in terms of performance in its third quarter, as reported by WWD. The quarter, which ended October 29, resulted in a total of 9.1 million dollars in net earnings, which is 3.3 million dollars less than previously. However, the company’s revenue rose three percent, totalling 536.3 million dollars. Due to these results, Herrero has confirmed that Guess is expecting to increase its sales in Europe and Asia in the future. According to the publication, projected sales for Europe and Asia would grow, while its sales in America may decline.
Currently, the company has done well in the Americas, as the brand originated in Los Angeles. Known for its iconic, quality jeans, Guess has grown as a staple, iconic brand in America. After recently launching a 35th Anniversary collection, the brand has been able to continue creating unique, high-caliber products. Moving forward,it seems that Guess has plans of increasing sales in all areas on a more global scale, focusing more on international countries.
Woolworths says it is beginning to see some “green shoots” in its Australian operations, with significant changes in store for David Jones and Country Road Group.
However, the retailer warned that despite this encouraging trend, trading conditions in that market would remain difficult for the rest of the year.
CEO Ian Moir said Country Road Group had gone through “a really tough three years”.
“We’ve spent a lot of time in the business. It’s really beginning to make a difference.
“We are starting to see green shoots and that’s not in just Country Road itself, but also within Witchery. Those two businesses are the biggest and were also the problem children and they are beginning to behave,” said Moir.
The Country Road Group houses Country Road, Trenery, Trenery and Mimco.
In the 26 weeks ended December 25, David Jones’ sales grew 4% and comparable sales 0.5% in Australian dollars. Country Road Group sales were 0.9% lower than the prior period due to high levels of promotional activity, Woolworths said.
Anchor Capital investment analyst Liam Hechter said Country Road’s results were largely expected and were likely to have been more seasonal than structural.
“Management made the point that the performance in the second quarter was stronger than the first, so the disappointing operational performance could possibly be short-lived, although we would have to give the numbers and prospects a thorough interrogation over the coming months before forming a strong conviction on that view,” Hechter said.
Management had executed well on some of the guided changes at David Jones, while the big source of synergies — the cross-selling of private label products in David Jones stores — seemed to have disappointed.
“Not enough has passed to make a definitive call on whether the cross-sell of private label will deliver the expected synergies. When Woolworths bought David Jones, investors expected the guided synergies to be delivered in a linear fashion. While this was always unlikely to be the case, we remain cautiously optimistic that management are on the right track in delivering on the guided synergies although it is likely going to take longer than initially anticipated,” he said.
Moir said the second half of the year would be similar to the first. “In Australia, consumer confidence is a bit muted. Australians are by nature a bit of a miserable bunch, but their confidence has been dampened by economic events.”
To get bigger, The Wendy’s Co. is getting smaller.
The Dublin, Ohio-based burger chain wants to add another 1,000 locations by 2020, executives told investors on Thursday. One strategy the company plans to use to encourage that growth is a new, more flexible design that will enable Wendy’s to go into smaller spaces.
Traditionally, the quick-service chain needed at least an acre of real estate to build its traditional, standalone units. But its new “smart design” can go into much smaller spaces, said Abigail Pringle, Wendy’s chief development officer.
“The new designs enable the company to build on half an acre or even a quarter of an acre if needed,” Pringle said.
Wendy’s currently has just more than 6,500 locations worldwide. It wants to grow to 7,500 units by 2020. The locations would be both in North America, where the brand has commitments from operators to build at least 500 locations, and internationally — where Wendy’s wants to grow from 439 locations now to 850 units.
Traditional sites are more difficult to open because real estate is more challenged today than it was a decade ago. One-acre sites in high-traffic areas don’t exactly grow on trees. And when they come along, they can be expensive.
The new design, executives said, is $300,000 cheaper than a traditional site.
That’s not the only strategy the company is using to expand add locations. Wendy’s is also adapting to urban areas.
“We are looking far beyond suburban markets,” Pringle said.
And the company is also looking at co-developing with convenience stores and other real estate opportunities, such as inline sites and strip-center end caps. And the company wants to convert vacated buildings — and not just restaurants.
One conversion opportunity, Pringle said, is banks.
“The real estate marketing is changing,” she said. “Banks are going less with bricks and mortar. And they already have a drive-thru.”
Wendy’s discussed its long-term strategy with investors on the same day it preannounced earnings for the fourth quarter ended Jan. 1. The company said same-store sales increased 0.8 percent in the quarter and 1.6 percent for the full year in North America.
Revenue in the quarter fell 33 percent, to $309.9 million, in the quarter, from $464.4 million, due to lost sales from the sale of restaurants to franchisees. Net income also fell, to $28.9 million, or 11 cents per share, from $85.9 million, or 31 cents per share.
Executives at the presentation said they want to increase profitability in addition to adding new locations. Some profitability will come from reductions in general and administrative spending. Wendy’s said it wants to cut another $35 million from G&A spending by 2020.
“We’re committed to accelerating savings,” Penegor said, although he noted that the company is currently developing plans to cut those costs.
Wendy’s said Thursday that it added 58 new restaurants worldwide in 2016.
“That was the highest global total since 2005,” Penegor said.
To get operators to build new locations, Wendy’s isn’t just using a smaller design. It’s also offering incentives.
In past years, Wendy’s would give operators building new units a 2-percent royalty abatement for the new unit for three years. Now the company will reduce costs by 5.5 percent in the first year the location is open, including a 2-percent royalty discount and a 3.5-percent ad fund discount
The abatement is reduced to 4 percent in the second year, including 1 percent on royalty payments and 3 percent on ad fund payments.
“This is about driving net new incremental growth,” Pringle said, noting that the company is leveraging its ad fund payments to drive growth. “After year two, there’s more money into the ad budget that was not there before.”
Wendy’s has also used its refranchising deals, and even franchisee-to-franchisee sales, to convince operators to add locations.
The chain has sold more than 1,000 locations to franchisees since 2013, following the sale of 537 locations in the third phase of that effort. Wendy’s has reduced its company-owned unit count from 1,427 locations in 2012, or 22 percent of the system, to 330 units now, or 5 percent.
The company has sold many of these locations to operators willing to build new locations.
“We wanted to focus on growth,” Wendy’s CEO Todd Penegor said. “We’re bringing in strong operators with strong balance sheets and with commitments to grow the system.”
Wendy’s also has a “buy-and-flip” strategy, in which it directs the transfer of franchisee-owned locations to preapproved operators willing to remodel locations and build new units.
“We are the ones playing matchmaker,” Pringle said. “We’re evaluating existing franchisees interested in leading the system. We want to work with them to find the right buyers.”
As part of these strategies, Wendy’s now has fewer, larger franchisees. In 2012, the company had 440 franchise companies. Today it has 375. The average size of a franchisee has increased from 11 locations to 15 units.
“Some larger franchise operators have used the opportunity to consolidate the market,” Penegor said. “They wanted to control pricing, advertising, they wanted to control development and they didn’t want to encroach on someone else. We have a healthier franchise community.”
Italian womenswear brand Stefanel is looking to open up to 15 franchise stores across the UK and Ireland.
Love Brands, the brand’s distributor in the UK and Ireland, has teamed up with franchise consultant Peter Danby to recruit potential franchisees. They will work alongside John Lane from London-based retail property advisors Tienda to select locations.
The brand is looking at market towns including Canterbury, Windsor, Tunbridge Wells, Cambridge, York, Harrogate, Dublin and Bath.
Hugo Deane, director of Love Brands, said: “We want aspirational areas that will suit the mid to premium offer. We believe there are 10 to 15 store opportunities across the UK and Ireland but we’ll have to see how it goes. We plan on opening three or four stores within the next 12 months.”
In the UK, the brand has eight House of Fraser concessions and stores on Regent Street and Covent Garden in London.
It launched wholesale in the UK for spring 17 and has secured 25 doors. Wholesale launched in Ireland for autumn 17 with agent Nuala Henshaw.
Stefanel has 400 retail and franchise stores worldwide.
Zara China has shuttered its giant three-story, 3000 sqm Chengdu flagship store in what a retail commentator describes a “fine-tuning” of its retail network.
The store, at Lesen Shopping Center, No.31, Zongfu Road, was previously occupied by luxury brands Louis Vuitton and Dior. It opened at the end of 2011 as Zara China’s single largest store and closed last weekend.
Pascal Martin, partner with OC&C Strategy Consultants in Hong Kong, said the flagship was “probably a lower performing site”.
“Zara recently opened another front nearby, in a trendier part of the city, which seems to be doing well. This move is probably just part of Zara’s ongoing normal fine-tuning of its store network strategy in China.”
Martin said Zara has already built a strong brand in China and is thus now less dependent on large and expensive brick-and-mortar flagship stores to maintain their brand.
“Also, Zara has built a powerful eCommerce capability in China. Therefore they can continue to be successful with fewer retail outlets than competitors H&M and Uniqlo.
“The resulting lower fixed costs should serve them well during the continued retail slowdown and market saturation. We may see them selectively further reduce the size of their 190-store network or relocate some outlets to stronger locations,” he said.
Zara China opened its first store in Hong Kong in 2004, before expanding onto the mainland two years later. It now has more than 190 stores in the country.
H&M stores have been spreading across the world like a fast-growing mold. For at least a decade, the fast-fashion retailer has increased stores by 10% to 15% annually, sometimes squeezing them in at a preposterous density: In New York in 2015, the chain opened a 63,000-square-foot behemoth that was literally across the street from another H&M (and just down the street from still another).
But the company says it’s finally time to ease off. Sales are slowing, and those physical stores no longer serve as the profit machines that turned the chain’s chairman into Sweden’s richest person.
In reporting its 2016 earnings, which saw sales rise 6% for the year, the company yesterday said it is replacing its brick-and-mortar expansion target with a new sales target of 10% to 15% annual growth. This new bullseye includes in-store and—importantly—online sales. Like pretty much every other retailer, H&M acknowledges that more dollars are moving to e-commerce, and that it already has plenty of stores selling its ultra-cheap clothes.
The world’s largest H&M (for now) at Herald Square
The world’s largest H&M at Herald Square, seen from an H&M across the street. (Marc Bain)
While physical stores are far from dead, their value is changing as the retail landscape shifts. Increasingly they have to offer customers experiences to be worthwhile, because if all shoppers want is a place to buy things, they can do that on the internet. Zara, which is H&M’s big fast-fashion rival, said last year that it would pull back on store expansion to focus more on its online sales.
And H&M’s physical stores aren’t bringing in the profits they used to. A report by analysts at Morgan Stanley last year pointed out that the profit H&M stores bring in isn’t keeping pace with their rapid proliferation. The analysts worried H&M was reaching a “mathematical tipping point,” which could cause profits to fall sharply by 2020.
Clothing retailers with less healthy businesses have been shuttering their physical stores like crazy: See Macy’s and other department stores that analysts think need to shut hundreds of locations to restore their sales-per-square-foot productivity.
H&M, which operates more than 4,300 stores worldwide, has evidently gotten the message that populating the earth with more stores isn’t going to keep adding more profit. Still, it’s not slamming the brakes on entirely: In the year ahead, the company plans to open around 430 new stores, entering new markets in Kazakhstan, Colombia, Iceland, Vietnam, and Georgia, among others. That’s about the same number of stores it opened in 2016, and represents roughly 10% growth of its current portfolio—in line with its former target.
But the indication is that sort of brick-and-mortar expansion won’t continue for much longer. H&M also plans to enter six new markets online in 2017, focusing on Asia. Shoppers in 35 of the 64 markets H&M serves could already browse and purchase clothes online by the end of 2016.
H&M is fighting many of the same challenges as other fashion retailers, including a shift in consumer spending to experiences and away from stuff. More stores, it has finally acknowledged, aren’t the solution.
In the six months to 27 November, retail revenue was up 15.8% as ecommerce sales rose by 30.3% and store sales grew by 11.2%.
The company also saw an uplift in wholesale revenue which climbed by 17.1%. International revenue increased by 39.3% and now represents 10.6% of group revenue.
Meanwhile, underlying pre-tax profit rose by 19.9% to £7.5 million.
Colin Porter, Joules chief executive, said: “Joules has continued to perform well during the first half of the financial year with strong growth delivered across the brand’s distribution channels and target markets. This significant progress reflects the quality and design of our products and the growing demand for the Joules brand, both in the UK and internationally.”
The company said group trading over the Christmas period and in the second half of the year to date has been strong and in line with expectations.
H&M posts 7 percent rise in FY16 sales, plans foray into five new markets
For the full-year as well as fourth quarter ending November 30, 2016 H&M group’s sales including VAT increased by 7 percent in local currencies. The company has said in a statement that it aims to achieve a sales growth target of 10-15 percent per year and will continue its offline and online expansion in the existing and new markets.
Commenting on the company’s annual performance, Karl-Johan Persson, CEO of H&M said, “2016 was an eventful year which included many positive things but also challenges for us as well as for the industry. For fashion retail in general, 2016 was at the same time a challenging year in which various external factors – including geopolitical events – had a negative impact on retail trade in many markets. This was particularly visible in France, Germany, Switzerland and Italy as well as in the US and in China. Since these markets represent a large share of our sales, this consequently had a great impact on our overall sales development.”
Full year and fourth quarter highlights
Converted into SEK, sales for the year, including VAT increased by 6 percent to 222,865 million Swedish krona (25,229 million dollars), while sales excluding VAT amounted to 192,267 million Swedish krona (21,765 million dollars). Gross profit increased to 106,177 million Swedish krona (12,018 million dollars) against 103,167 million Swedish krona (11,678 million dollars), corresponding to a gross margin of 55.2 percent.
Profit after financial items amounted to 24,039 million Swedish krona (2,721 million dollars) compared to 27,242 million Swedish krona (3,083 million dollars) last year. The group’s profit after tax amounted to 18,636 million Swedish krona (2,109 million dollars) against 20,898 million Swedish krona (2,365 million dollars), corresponding to11.26 Swedish krona (1.27 dollars) per share. The company said, profits during the year were negatively affected by increased mark-downs but also by higher purchasing costs from the strengthened US dollar.
The company reported continued strong online development for all brands both as regards sales and profitability and witnessed strong sales growth for COS, & Other Stories, Monki, Weekday and H&M Home during the year.
For the fourth quarter, H&M group’s sales including VAT increased by 7 percent in local currencies. Converted into SEK, sales including VAT increased by 8 percent to 61,098 million Swedish krona (6,922 million dollars). Gross profit increased to 30,027 million Swedish krona (3,398 million dollars), corresponding to a gross margin of 57 percent. Profit after financial items increased to 7,409 million Swedish krona (838 million dollars). The group’s profit after tax increased to 5,914 million Swedish krona (669 million dollars), corresponding to 3.57 Swedish krona (0.40 dollar) per share.
H&M ventures into new markets
H&M carried out a strong expansion during the year with a total net addition of 427 new stores and 11 new H&M online markets. At the end of the financial year H&M had 35 online markets and the number of stores amounted to 4,351 in 64 markets.
During the fourth quarter, the company ventured into new markets – Cyprus and New Zealand, as well as rolled out H&M online platforms in Canada and South Korea.
The Board of Directors proposes a dividend of 9.75 Swedish krona (1.10 dollars) per share for the 2015/2016 financial year.
Aims to grow sales by 10-15 percent per year
The group has announced a new growth target and aims to increase the sales by 10 – 15 percent in local currencies per year with continued high profitability.
The H&M group’s sales including VAT in December 2016 increased by 6 percent in local currencies compared to the same month the previous year. Converted into SEK the increase was 10 percent. The H&M group’s sales including VAT in the period January 1 to January 29, 2017 increased by 11 percent in local currencies compared to the same period the previous year.
The H&M group plans to open approximately 430 new stores net in the 2016/2017 financial year. Kazakhstan, Colombia, Iceland, Vietnam and Georgia are planned to become new H&M markets. In addition, H&M plans to continue its online roll-out into six new markets: Turkey, Taiwan, Hong Kong, Macau, Singapore and Malaysia. The company also plans to launch one or two new brands in 2017.
FY16 sales rise 222,865 mn SEK
Q4 sales up 61,098 mn SEK