Lyne Castonguay

Here are some interesting stories from the world of retail for Thursday, June 6: 🧘🏽‍♀️ lululemon beat Wall Street’s earnings and revenue estimates, but issued weak second-quarter guidance as it contends with a slowdown in the Americas, its largest market. 👕 Hanesbrands Inc. will sell Champion to Authentic Brands Group in a deal worth up to $1.5 billion with performance incentives. Authentic owns brands such as Reebok, Forever 21 and Quiksilver. 5️⃣ Five Below cut its outlook for the year, warning that its core low-income shoppers were facing an outsized impact from years of inflationary pressures. It posted an unexpected decline in same-store sales for the first quarter. 👙 Victoria’s Secret & Co. said it was encouraged by demand for its bras, sleepwear and other clothing in May, but the company said it was exercising restraint amid continued caution more broadly among the US consumer. 🏪 Foxtrot intends to reopen several locations in Chicago in the Gold Coast and Old Town neighborhoods. The news comes after Foxtrot and Dom's Kitchen & Market closed on April 23. 🌳 Dollar Tree Stores Tree said that it had started a formal review of strategic alternatives for Family Dollar, which it said could include among others, a potential sale, spin off or other disposition of the business. 💵 Walmart is now offering bonuses to its hourly employees in the US., the company announced Wednesday. The longer an associate has been with the company, the higher the associate's bonus potential, to a maximum of $1,000. 📚 In a blow to publishers and authors, Costco Wholesale plans to stop selling books regularly at stores around the United States, four publishing executives who had been informed of the warehouse retailer’s plans said Wednesday. 🚚 Albertsons and Uber have launched a new food rescue initiative that aims to address food insecurity and food waste in several major US cities. The program donates surplus food from the grocer’s stores to local nonprofits. 📸The TJX Companies, Inc., parent of TJ Maxx, Marshalls and HomeGoods, said it’s equipping some store employees with body cameras to thwart shoplifting and keep customers and employees safe. 🍔 McDonald's lost a European Union trademark dispute over the Big Mac name after a top European Union court sided Wednesday with Irish fast-food rival Supermac's in a long-running legal battle. ✂️ The Bank of Canada's decision on Wednesday to cut interest rates from 5% to 4.75% is expected to provide financial relief to Canadians and encourage consumer spending. 🧳 Shinola and Filson parent Bedrock Manufacturing Company has appointed Steve Katzman to the role of CEO and Kevin Wertz as chief marketing officer. 🇦🇺 ALDI Stores Australia is moving into the insurance sector, with the launch of a series of homes and contents, car, and landlord products. #retail #retailnews #economy #DailyRetailNews

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US consumers are struggling to pay their bills, but that doesn’t mean they are pulling back on spending. Bank of America last week reported that net charge-offs, which are debts that a bank does not expect to be repaid, jumped to ~$1.5 billion in the first quarter, up from $807 million the year before, and they stemmed primarily from credit card losses, according to the bank in its latest earnings call. #consumerspending #retailsales #consumerinsights

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Foot Locker's newly redesigned store doesn’t solve all of its problems, but it is a very good start at remedying some of the ills that have plagued the brand.   Most of the estate looks tired and shops are not conducive to driving sales as they are too functional and don’t always allow Foot Locker to showcase product effectively. This deters customers, especially younger ones who like modern and exciting environments. However, it is also a turn-off for brands like Nike which are conscious about how their products are displayed.    The refresh also brings Foot Locker into line with other retailers. The bar for store design has been set far higher thanks to companies like Lululemon or Vuori, and even Dick’s is investing more in its stores – especially the new House of Sport locations. Its commitment to updating 900 shops shows that Foot Locker does not want to be left behind.    In my view, the plans will also help CEO Mary Dillon, as they are solid evidence to investors that things are changing. Foot Locker has had a string of very bad numbers so Wall Street is now keen to see signs of material change.   However, new stores also need to be accompanied by better sales numbers. This might be more difficult to deliver quickly in a sneaker market that is still very soft and where several brands are still trying to push direct to consumer sales. Thanks to Insider Retail for including more of my thoughts in this piece... https://lnkd.in/eYNiB5vM #retail #retailnews #sneakers #stores #design #sportinggoods

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#HotTake: Retail stores aren’t a shortcut to success. Retail offers bigger POs, visibility, and cash flow Yet, it doesn’t ensure brand sustainability Case in point: JLo Beauty Despite celeb status and prime placement at Sephora, She faced challenges resulting in a US exit Retail alone doesn’t secure loyalty or repeat sales Placement isn’t guaranteed forever For lasting success, think beyond the retail PO Some markers of a sustainable brand include: Authenticity, community, differentiated formulas, and true fans Building a lasting brand legacy requires more than a retail presence – 👋🏾 Hi, I’m Monique, a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale at big retail. If you are ready to scale and invest, book a discovery call, and let’s see if we can work together.

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No moat stands the test of time on its own. It can dry up, or bridges can be built across it. I know nothing about footwear. But I know Nike is floundering. Their last CEO got fired for (my summary) not driving innovation. Nike is losing market share. And other brands have scaled enough to actually encroach (Hoka, etc). On shoes are gaining ground with young teens. This is chipping away at future share too (some of their consumers are crossing that bridge). An interesting part of this story for me is the waffling on channel strategy that Nike made over the last 5 years - going all in on D2C, cutting some retail partnerships, and then reverse course when they realized their P&L (and sales) were not improving, and that partnerships help them reach their consumers where their consumers are at. Execution matters. Always be building. (Or you're crumbling). Brands need to be where their consumers are at.

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According to new data from Circana’s consumer tracking service, running shoes — one of the hottest categories in the U.S. footwear market in 2024 — is a $7.1 billion business, with the women’s segment growing even faster than men’s and has almost caught up to its size in the past 12 months. Running shoe sales have grown by $1.3 billion in the past three years, Circana noted, with running footwear dollar sales increasing by 12 percent in the 12 months ending April 2024. As for how consumers are wearing these shoes, it varies. Circana added that it found that 43 percent of consumers bought running shoes for sport and exercise, while over half of the dollars spent are attributed to non-athletic uses, including casual or everyday use (33 percent) and work (7 percent). “While performance is paramount in running footwear, the innovation in the category is also attracting casual wearers that are looking for everyday comfort,” Beth Goldstein, footwear industry analyst at Circana, said in a statement. “The visible functional elements have become fashion for both runners and non-runners alike, commanding premium price points." ”https://lnkd.in/eFdHvGbi

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DICK'S Sporting Goods Quarter 1 Results: ⚽ Delivers Net Sales of $3.02 Billion, Up 6.2% Versus the Prior Year ⚾ Delivers Double-Digit EBT Margin of 11.3% 🏀 Delivered 5.3% comparable sales growth, driven by growth in transactions and average ticket 🏈 Reported earnings per diluted share of $3.30 with 4% EBT growth 🎾 Raises full year 2024 guidance for comparable sales growth to a range of 2.0% to 3.0%, up from 1.0% to 2.0% previously 🏐 Raises full year 2024 earnings per diluted share guidance to a range of $13.35 to 13.75, up from $12.85 to 13.25 previously #dsglife #dickssportinggoods #results

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This will be a great supply chain strategy case for Consumer Goods companies shifting to DTC and e-commerce channels. With millions in new customers, profitability is shadowed by inefficiencies and complexity in running retail stores and the cost of omni-channels. How can you identify value creation opportunities by optimizing your current SC footprint and how can you pivot to drive better partnership with your retailers like Nike did with Dick’s

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Aggregate demand across a multitude of manufacturing markets are directly impacted by the state of retail demand. This article/interview of former US CEO for Walmart is confirming details of an "inferior market" situation in the US that is already evident in key markets like automotive. Arguably, entire demand markets like electronics are taking hits as well. For manufacturers tied directly to GDP value chain demand, or in the case we find ourselves "True GDP Demand", finding better ways to assess their immediate and intermediate demand will be critical. Those late to the intersections of market dynamics will be behind. A recommendation: stop focusing on dollar based demand and dollar based activity! Unless your fixed costs can be managed with high variability, watching dollars movements inflated by government spending will not result in volume demand to spread out those fixed costs. Worse you will be carrying capacity for which there is no need. #USEconomy #Market #B2B #B2Bmanufacturing #macroeconomics #fractionalmangement #materials #chemicals #paper #packaging

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Since 2019, Kohl's sales have shrunk by $2.3 billion. That’s a pretty terrible number given consumer spending on retail rose by a dramatic $1.3 trillion over the same period.     The Kohl’s losses are a combination of existing customers spending less and the complete defection of some shoppers. Over the past five years, Kohl’s has lost 1.3 million customers: people who used to visit Kohl’s, but now they don’t. Most of these folks still buy things so it’s interesting to see where they’re now shopping, or shopping more at, instead of Kohl’s. The diagram below traces the defections. The most notable thing is the gains being made by off-price retailers. TJX – with its TJMaxx, Marshalls, and HomeGoods banners – is picking up a lot of trade. Ross, Nordstrom Rack, and Burlington are also in the mix. It’s no wonder off-price is doing so well when it’s gaining so many customers from chains like Kohl’s. What’s also notable is that online specialists don’t dominate. Amazon has picked up some trade, as has Wayfair, but neither are the main beneficiaries of Kohl’s woes. This underscores that the very simplistic narrative of ‘online killed…” is often far from the truth. It is also significant that Costco makes an appearance. Costco is a silent assassin. Many retailers don’t have it on the radar for non-food; but the reality is that Costco has a formidable non-food business. Retailers like Kohl’s don’t underperform because one large enemy comes in and swoops away all the custom. Their substantial loss of trade comes from many players nibbling away at their sales and market share. #retail #retailnews #departmentstores #wholesale #shoppers

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July US Retail Sales were the most robust growth of the year, with Core Retail sales (Retail minus Gas, Auto, and Restaurants) up 5.2% over July 2023. Year to date, Core retail is up 3.4% over last year, which is a bit slower growth than the historical average of 3.9%. The bulk of this growth is going to a handful of retailers (Walmart, Amazon, Temu, Shein, and Tik Tok Marketplace), which means lean times for many other retailers.

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Letter to the toy industry: A headline in 10-20 years will read; “The magic has evaporated as indie toy stores melt away.” More closures are coming, less risks are taken, most young people do not want retail careers and Amazon is growing 5-10 percent squeezing out everyone. Yes, hot products extend the cycle for toy stores and The Covid effect was once in a century. But if you understand trends, the ending is clear. What a shame. However, I’m not about to stop trying and implementing new ideas and strategies to create a new local toy space, but it needs to be much different than the small incremental changes we all have made. We will fight to find ways that can increase our value proposition over low prices, same day delivery and millions of products at one’s fingertips. Can’t be done some say and I personally see no real strategic direction from any organization, so why even try? Well when you experience the “magic” for our children (and adults) 6 days a week it’s worth the fight. Our work has begun in earnest. #toys #toyindustry #retail #retailindustry #amazon #games #inventors #brickandmortar

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Consumer Confidence is Skyrocketing…But Are Retailers Really Ready for It? Just in: U.S. consumer confidence is up, and it’s not just a blip on the radar. We’re seeing consumer confidence levels that haven’t peaked like this in years and all while an election looms. But is this the “buyer’s high” retailers dreamed of, or a canary in the coal mine? Here’s what you need to know: 70%+ of Americans report being “confident” about their finances and, according to data from the Conference Board, consumer confidence index hit 109.7 this October. Not exactly “YOLO,” but enough to expect higher spends in categories like luxury and travel. Spending & Strategy: McKinsey’s latest found that 48% of consumers will splurge this holiday season, yet 50% will also hunt for discounts... aka, consumers want to “have it all” without paying for it all. Are we ready for the mental gymnastics this takes? Retail’s Moment of Truth: With supply chains stabilizing, consumers expect faster delivery and cheaper prices. But here’s the kicker, they’ll drop a brand at the first hiccup. Gartner notes a 63% abandonment rate for retailers that miss the mark on delivery. Amazon’s spoiling them all. Economic Caveat: With Fed rates staying high, credit card debt has skyrocketed to over $1 trillion, yet optimism holds. The disconnect? We’re riding a wave that economists say could “turn on a dime.” If consumer sentiment shifts, are brands agile enough to react? Takeaway: Retailers take note. The opportunity is here, but so are the risks. The days of “push product, watch it sell” are gone. Be bold, be fast, and be adaptable. #ecommerce #consumerconfidence #retailtrends #holiday2024 #electionyear #retail #Amazon #Ecommerce #Walmart #Target #Shopify

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Two Organizations dropped bombshells on the street last month. Two behemoths, Legacy organizations, Iconic Brands, clear “𝘊𝘶𝘭𝘵𝘴” in their categories that have stood the test of time. Both struggling on growth. Profits waning. Stock Prices de-rated. Both had relatively new Leaders at the helm. Illustrious backgrounds, handpicked to “𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮”. (Beware of the cliche!) Both organizations realised that the future would be markedly different & hence picked talent with radically different experiences to take them into the future. Organizations (& their Boards) have muscle-memory too. When faced with insurmountable challenges, they go back to their “tried & tested” playbooks. - 𝐒𝐭𝐚𝐫𝐛𝐮𝐜𝐤𝐬 resorted to getting a prized-catch from Chipotle amidst a lot of fanfare & criticism alike. - 𝐍𝐢𝐤𝐞 pulled an old-veteran out from retirement. As comfortable as the warm blanket in winter. What drove the difference in their approach? Didn’t Starbucks not have an internal bench to pull them from the current spot? - Didn’t 𝐍𝐢𝐤𝐞 feel the need to continue with their “Outside-in” transformative journey? - Does 𝐒𝐭𝐚𝐫𝐛𝐮𝐜𝐤𝐬 have a more assimilative culture than 𝐍𝐢𝐤𝐞 & hence more comfortable with an outsider? Or, is 𝐒𝐭𝐚𝐫𝐛𝐮𝐜𝐤𝐬 attempting to address the Wall street, before it addresses the market? - Both the new leaders have started-off a strikingly similar market. Both talk of restoring old glory. Both talk of “𝘞𝘪𝘯𝘯𝘪𝘯𝘨 𝘣𝘢𝘤𝘬 𝘵𝘩𝘦 𝘊𝘰𝘳𝘦”. (Remember - strengthening the "strengths" before you try to weaken the "weaknesses") - 𝐍𝐢𝐤𝐞’s back to talking to the 𝑨𝒕𝒉𝒍𝒆𝒕𝒆* (within) & Starbucks is back to celebrating “𝑪𝒐𝒇𝒇𝒆𝒆” & “𝑷𝒍𝒂𝒄𝒆”   Personally, I found the 𝐍𝐢𝐤𝐞 approach more relatable. When in trouble, go back to your strengths. Bring back the Old glory. The Best Practices from the Past, that got waylaid in pursuit of new ground. In times of ambiguity, put your faith in the guard that has your trust. The one who understands how stuff works. The one who understands & connects with the cultural values. And that nostalgic familiarity, shows in the chat with Elliott Hill. Go NIKE!! https://lnkd.in/d_tJdk_q #Nike #Starbucks #GoodtoGreat #OrganizationalCulture #Leadership #Futureproof #Futureready

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With the takeover bid for Macy’s simmering away, there has been a lot of focus on the merits of public versus private ownership of retailers – especially legacy players like department stores. One of the big problems with public ownership is short-termism. Most investors want quick returns, and they expect fast progress on initiatives. This pressure isn’t always a bad thing, but it can drive short-term decision making where executives are so focused on the next quarter that they lose sight of longer-term goals. Capital investment can also be an issue, especially if it is directed to things that markets don’t hold in favor. The negative reaction of many when Target announced it was investing in stores is a case in point – although Target’s spending has now been thoroughly vindicated. Private ownership allows for more considered decision making, and it allows for longer term planning. But neither is it a savior. Without the pressure and scrutiny of markets it is very easy to become sluggish and complacent. The Nordstrom family is, no doubt, conscious of all these arguments as they finalize their bid for taking the iconic chain private. Their success hinges on convincing the committee assessing the privatization of the fair value of their bid, and that it beats any competing offers. My view is that the family will have to pay a fairly hefty price to make this deal go through. Ultimately, as a private company Nordstrom will face exactly the same issues as it does now. However, the response to those challenges may be different, and more flexible, and that’s what will ultimately determine whether or not privatization improves the fortunes of the chain. More of my thoughts are in this piece by Just Style... https://lnkd.in/gQCDhGa3 #retail #retailnews #departmentstores #Nordstrom

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Bain & Company’s holiday forecast predicts 3% growth in retail sales this year, which is well below the 10-year average of 5.2% and down from last year’s 4.2%, but the recent Federal Reserve rate cut could give consumers a boost in the coming months. #retailsales #holiday2024

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Aloha Friday! 🤙🏼 Here are some interesting stories from the world of retail for Friday, May 10: 👨🏽‍⚖️ Former retailer Bed Bath & Beyond has filed a lawsuit against Hudson Bay Capital Management, seeking to recover over $300m in trading profits from the hedge fund. 🥕 Instacart reported strong first-quarter results, as the company’s total revenue, number of orders and gross transaction volume were all up sharply year over year. On the bottom line, net income came in at $130,000. 👜 Tapestry, the parent company of Coach, Kate Spade New York and Stuart Weitzman, has expanded its outlet strategy and overall marketing spending in response to evolving consumer behaviors. 👠 Salvatore Ferragamo booked lower revenue for the first quarter, weighed by a weak consumer environment in China and the soft performance of its wholesale channel. Revenues totaled €227m in the first three months. 👓 Warby Parker’s revenue jumped 16% in the first quarter of the year as other brands in the sector struggle to grow sales. The eyewear seller expects full year sales to climb as much as 13 percent to $761 million in 2024. 👨🏻‍💻 Online retail sales in the US have increased by 7% from January to April 2024, driven by strong demand for groceries and cheaper discretionary items, according to an Adobe Analytics report. 🏋🏼‍♂️ The Planet Fitness $10-a-month membership plan is a powerful marketing tool and a central part of its strategy. But the largest gym chain in the United States is hiking that monthly fee for the first time in more than two decades. 🌈 Target has Pride merchandise in fewer stores this year after backlash it received caused it to pull some items from last year's collection. Last year collections went into all stores; this year they will go into select locations. 🍷 More Americans are making lifestyle changes, consuming fewer alcoholic beverages and switching to non-alcoholic brands that resemble booze-filled cans and bottles. 🍏 Apple has apologised for an ad for the new iPad Pro, following criticism for its depiction of an industrial compressor flattening tools for art, music and creativity. 🍓 ALDI USA plans to pass along $100m in savings to customers by reducing prices on over 250 items. The company aims to help customers save money amid concerns of persistent inflation. 🍔 Many consumers are expressing frustration at the surge in fast-food prices, which are starting to scare off budget-conscious customers: about 25% of people who make under $50,000 are cutting back on fast food due to costs. 🧸 Funko taps former Hasbro executive as CEO: Cynthia Williams served as president of Hasbro’s Wizards of the Coast and Hasbro Gaming units until she resigned last month. 🚛 DoorDash and Uber are pushing back against measures that set a minimum pay standard for delivery drivers in Seattle. NYC and Seattle are the first two cities in the US to pass a minimum wage law for food gig delivery workers. #retail #retailnews #economy #DailyRetailNews

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Here are some interesting stories from the world of retail for Wednesday, November 27: 🏈 Dick's raised its full-year guidance on Tuesday after what CEO Lauren Hobart called an excellent back-to-school shopping season and better-than-expected comparable sales for its third quarter. 👕 Abercrombie & Fitch Co. reported its sixth consecutive quarter of double-digit gains, positioning the retailer for a healthy holiday season ahead. Net sales rose 14 percent to $1.2 billion from $1.06 billion in the year-ago quarter. 📺 Best Buy has cut its full-year sales forecast and missed Wall Street’s quarterly revenue expectations, as early holiday shopping and a fresh batch of iPhones and AI-enabled laptops weren’t enough to drive higher sales. 🏬 Kohl's shares fell sharply on Tuesday after the company's earnings missed Wall Street estimates and following its announcement that CEO Tom Kingsbury will step down in January. 🧥 Burlington Stores, Inc. posted higher sales in the latest quarter and said the holiday selling season has started strong, as the off-price retailer’s offerings resonate with consumers looking for deals. 🛍️ Nordstrom on Tuesday offered up a slightly more optimistic full-year sales forecast, but said there was a noticeable decline in sales trends at the end of last month. 👚 Urban Outfitters has said it doesn’t have to discount as aggressively, amid holiday-season optimism. In the latest quarter, revenue rose 6.3% to $1.36 billion, while same-store sales rose 1.5%. 📈 Economists are concerned that President-elect Trump's proposed blanket tariffs on imports would drive up food prices. Tariffs would not only impact food imports but would also push up costs for fertilizer and farm equipment. 👖 Guess trimmed its guidance for the year after swinging to a loss in its fiscal third quarter, citing slowed traffic at its stores in Asia and North America. Shares fell 10%, to $15.52, in after-hours trading. 🥦 Workers at a Whole Foods Market store in Philadelphia, Pennsylvania, have filed to hold a union election, the first union filing at the supermarket chain since Amazon acquired it in 2017. 🍊 Orange juice prices have surged close to record highs after Florida was hit by hurricanes. A future contract for a pound of frozen orange juice concentrate currently trades for $5.13, compared to $1.20 in 2021. 📦 More than one-in-10 Americans reported experiencing package theft in the past year. Among these victims, 28% encountered theft during Black Friday shopping and 11% on Cyber Monday. 👍🏼 Americans continue to feel more upbeat about the outlook for the economy. The latest reading from the Conference Board was 111.7 in November, above the 109.6 seen in October and the highest level in more than a year. 🥖 Subway announced Tuesday that its CEO, John Chidsey, will retire at the end of 2024. Executive Carrie Walsh will replace him as interim CEO. #retail #retailnews #economy #DailyRetailNews

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Two pieces of this puzzle in the latest Target announcement that one is expected, but the other not.. https://lnkd.in/dggcGST7 1). Adding another executive who believes Target has a "clear strategy", his words, when clearly they do not.....(grocery strategy is a mess, in stocks are an issue, in store morale and labor a problem, and no clear path to resolve the check out issues created last year). 2). This recent hire has absolutely no retail experience and they are looking forward to being immersed into retail....his words. Adding another CPG executive, this one from Pepsi, who will add 0 value to right sizing their retail strategy unless Target has found the one person who can quickly transition from CPG to retail. Historically that's an issue without existing strong retail leadership which Target already struggles with. "Expected", hiring another CPG person because of the current leaderships past behavior..... "Unexpected", due to their current woes lacking a sound retail strategy that will most likely now continue.....

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