Melissa Gonzalez

🚨 Amazon’s Bold Move into Luxury Fashion: What It Means for the Industry 🚀 The retail landscape is buzzing with the news of Saks Fifth Avenue and Neiman Marcus Group merging, creating a luxury retail powerhouse backed by Amazon. This $2.65 billion deal, forming Saks Global, is set to revolutionize the luxury fashion industry in ways we’ve never seen before. Why This Matters: Amazon, a titan in e-commerce, logistics and technology, is now officially stepping into the luxury fashion arena. This move could drastically reshape their business model and the luxury market. Here’s why: 1️⃣ Logistics and Efficiency: Amazon’s logistical expertise is unparalleled. By integrating its advanced logistics with Saks Global’s operations, we can expect significant improvements in supply chain efficiency. Faster delivery times and better inventory management will enhance customer satisfaction and reduce costs. This synergy could mean that customers will soon be able to purchase luxury items like a Chanel bag with the same ease as everyday essentials. 2️⃣ The Power of AI and Data: Amazon and Salesforce bring cutting-edge AI and data analytics to the table. AI can personalize the shopping experience, predicting customer preferences and tailoring recommendations. This level of personalization is crucial in luxury retail, where customer experience is paramount. With Amazon’s data prowess, Saks Global can better understand their customers, optimize pricing strategies, and manage inventory more effectively, ensuring high-end pieces don’t end up in discount bins. 3️⃣ Technology Integration: Amazon’s involvement means more than just financial backing; it’s about leveraging technology to future-proof the luxury brands. As Marc Metrick, CEO of Saks Fifth Avenue’s online operations, mentioned, the aim is to gather high-quality customer data and offer more personalized options. Enhanced tech capabilities will streamline operations from the warehouse to the customer’s doorstep, making luxury shopping seamless. 4️⃣ Market Reach and Customer Base: Amazon’s vast customer base is a goldmine for Saks Global. This deal allows Amazon to penetrate the high-end market, catering to a demographic that values exclusivity and quality. For luxury brands, having access to Amazon’s broad customer reach means new growth opportunities and expanded market presence. Conclusion: This merger isn’t just about consolidating two luxury giants; it’s about transforming how luxury retail operates in the digital age. While some may fear that this could dilute the exclusivity of luxury brands, it’s an opportunity to innovate and adapt. The luxury sector has been cautious about embracing e-commerce fully, but this merger signals a shift towards a more tech-driven future. As consumers, we stand to benefit from improved services, personalized experiences, and greater accessibility to luxury products. #LuxuryFashion #Ecommerce #BusinessStrategy #Amazon #SaksGlobal #RetailInnovation

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Returns cost retailers an estimated $743 billion in revenue last year, according to the National Retail Federation. That was actually an improvement from 2022, when retailers lost $816 billion on returns. But there's a smarter way forward with returns. By integrating returned products into the resale market, we can simultaneously recover value and reduce waste. This approach does require some investment in: • meticulous inspection • refurbishment • repackaging Advanced tracking systems and data analytics can make all the difference here. Technological innovations like these make the process of putting returns back on the shelf swift and efficient. Fortunately, new third-party vendors offer turnkey resale platforms for retailers. One great example is Recurate (acquired by Trove Recommerce), a startup in XRC Ventures’ portfolio. They provide seamless resale solutions for top brands like Michael Kors, Steve Madden, and The Frye Company. It’s exciting to see the innovation and investment going into this space. By transforming returns into resale opportunities, we not only minimize waste but also maximize value. Which means shoppers, retailers and the planet come out ahead.

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Key EMARKETER stat: US ecommerce resale volume will hit $80.60 billion this year, a growth of 3.4% YoY, per our December 2023 forecast. Beyond the chart: Ecommerce resale volume is returning to growth after a 6.9% dip YoY in 2022 and a 2.5% one in 2023, per eMarketer forecast. But it still hasn’t returned to its pandemic high of $85.87 billion in 2021. Growth in the number of online fashion buyers has slowed, leading platforms to search for strategies to boost order values by offering luxury goods and courting wealthy shoppers. #ecommerce #resale #retailsales

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As we look toward the retail holiday season and planning for the year ahead, MOHR Retail will be hosting a panel discussion that explores the landscape of retail store environments today, focusing on a range of topics, including the dynamic roles of store teams, the rise and fall of self-checkout systems, how stores are increasingly becoming fulfillment centers, and how successful retailers are addressing issues related to mental health, safety, and burnout amid preparations for the holiday season. Here’s a quick overview of some of these hot-button retail store trends and issues and what we’ll be focusing on during the webinar: ↪The Evolution of Store Roles With the surge of Buy Online, Pick Up In-Store (BOPIS) options and stores doubling as fulfillment centers, retail teams are adapting to new responsibilities. The traditional role of a store employee has shifted from managing in-store tasks to balancing online orders and managing stock all while building loyalty by ensuring a seamless customer experience, both online and offline. ↪The Rise and Fall of Self-Checkout Self-checkout was once hailed as a revolutionary step forward in retail efficiency, offering customers a quicker way to check out while reducing the need for staff. However, recent concerns over security, increased theft, and the impersonal nature of the experience have led some retailers to reconsider their reliance on self-checkout systems. ↪Doing More with Less As staffing challenges continue to rise, retailers are finding themselves needing to do more with fewer employees. Retailers need to rethink scheduling, training, and multi-role positions while looking for best practices that help streamline operations. If you’re interested in joining this panel discussion, reach out to me! We’re looking for your experiences, insights, ideas, and/or other lessons you might be able to share to add to a lively, thought-provoking discussion #LearnMOHR #RetailTrends #Retail

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💡Amazon invests in consolidation of Saks Fifth Avenue & Neiman Marcus Group … Why? 💬 Lot of chatter in the last day about Amazon backing the consolidation of LUXURY retailers Saks and Neiman Marcus….theres a lot to be said about tech that helps traditional retailers win and I think Forbes and Suzanne Kapner at The Wall Street Journal have a great take. That being said, I think the crown jewel they are going after here is interesting…. I think the big nut to crack for Amazon is a CRM play of owning the super high end customers…dominating that top spender market. That luxury shopper. Not as a transactional relationship, but owning that luxury shopper segment—both online and offline. I think the crown jewel Amazon is going after here is…. 💵 Prime for the 0.1%ers. The big picture here is a massive opportunity for Amazon to unlock — think of the spending they could own. 💥 Amazon Ultra Prime. No wonder Salesforce also invested… CRM play. https://lnkd.in/gy_r7jMQ https://lnkd.in/gmk-ZqSU

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CEO's rarely admit when they are wrong. However, Kohl's outgoing CEO, Tom Kingsbury , this week acknowledged mistakes that caused a steep drop in the retailer’s quarterly sales.   Kohl’s scaled back popular private-label brands, fine jewelry, and petite clothing sizes—moves that turned off shoppers and contributed to a 9.3% drop in quarterly sales.   Without the lift from SEPHORA, which has shops inside Kohl’s stores, sales would have dropped even more.   While #inflation and other macroeconomic events played a role, many problems were self-inflicted. “It’s up to us to fix it,” Kingsbury said.   Or rather, it will be up to Kingsbury’s successor. A day before Kohl’s reported its disappointing earnings, the company announced a leadership change: Ashley Buchanan, a former Walmart executive currently the chief executive of Michaels Stores, will take over in January. Kingsbury will remain in an advisory role and retain his board seat until he retires in May.    Kohl’s was in trouble before Kingsbury, a retail veteran, took the reins, first as interim CEO in late 2022 and then as permanent CEO a couple of months later.   Sales have declined for 11 consecutive quarters, and more than half a billion in sales have evaporated. Kohl’s shares are down 52% over the past two years.    It is a surprising outcome given Kingsbury’s pedigree and the fact that he was installed on Kohl’s board at the behest of activist investors, who had pushed for the company to run itself more efficiently. A former May Department Stores executive, Kingsbury worked briefly at Kohl’s before becoming CEO at Burlington Stores, Inc., where he led a turnaround from 2008 to 2019.   His priorities at Kohl’s included making its stores and website better places to shop, offering clearer value, improving inventory management, and strengthening the balance sheet. Many of the moves backfired.    Kohl’s scaled back its fine jewelry departments to make room for Sephora shops in its stores, which upset customers. In an effort to carry less inventory, it reduced its selection of clothing in petite sizes—a decision Kingsbury called “shortsighted.”    And in another attempt at reducing inventory, it cut back on private label brands like Sonoma and FLX, as it stocked more national brands such as Nike and Eddie Bauer. The retailer’s private-label inventory dropped on average by more than 20% and even more sharply for several key brands.   “We thought, ‘We can do more with a lot less,’ and that didn’t work out for us,” Kingsbury said.    Now, Kohl’s is reversing those moves. It has reintroduced jewelry to 200 stores. It is expanding its petite offerings and is stocking more private-label goods. Kingsbury said he expects those efforts to translate into better sales late this year and early next year. Many of Kingsbury’s initiatives are works in progress and are gaining momentum.  https://lnkd.in/e6sRiukq

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Should DTC firms open physical stores? It’s a question that is much debated and discussed. There is, however, no one answer. For some brands, it makes perfect sense. For others, it’s an act of folly. And which bucket brands fit into depends, largely, on the strength of their propositions. Take Warby Parker as an example. It has a clear position in the optical market and is attracting new customers off the strength of its offer and services. By comparison, Allbirds has a very weak product that is not differentiated or all that interesting to consumers. It has been losing customers and sales, despite having opened new stores. And its financials are now unravelling so it is shutting shops to save money. Peloton is another example. It sells very few products and opening as many stores as it did was foolish. Especially so as they were in expensive locations. The lesson is that stores can help strengthen good DTC businesses and solid propositions. But they can be highly damaging to weak ones. I chatted to CoStar News about this. Link to article in the comments. #retail #retailnews #stores #DTC #directtoconsumer #brands

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Discount alert! In typical retail fashion I'm offering a discount - but the thought behind pre Black Friday - Cyber Monday sales period is so you can gain the retail strategies and insights before the Holidays. Plus, this discount is for annual subscriptions and will keep it at the discounted retail even if it changes in the future. Now is the time. Promotion ends Monday 10/21/24 Thank you to everyone's support with Retail Diary and I know you will want these insights. Earlier this week I wrote about ShopMy, Affiliate Marketing and how Retailers/Brands like La Ligne LLC are able to use for customer service, loyalty and data insights.

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Podcast: Powering Resale for Conscious Retailers with Continue 🎙️

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In today’s retail landscape, merchandisers are overwhelmed with data but often lack actionable insights. They face the challenge of making quick decisions on product selection, inventory, and more, all while navigating fragmented data systems. Traditional BI tools, while useful, can complicate this process with complex dashboards that don’t cater to individual needs. The good news? AI-powered analytics are stepping in to bridge this gap. By integrating generative AI with BI platforms, merchandisers can easily access insights using natural language, simplifying decision-making. For instance, instead of sifting through multiple dashboards, they can simply ask an AI for sales data on specific products across regions. This integration not only streamlines workflows but enhances data-driven decision-making, ultimately improving product assortments and customer satisfaction. As we embrace AI, the future of merchandising is set to become even more intuitive and responsive, giving retailers a competitive edge. Conversations On Retail, Chain Store Age

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Amazon is making waves in the luxury retail sector with its recent investment in the $2.65 billion Saks-Neiman Marcus merger. The fashion industry is buzzing as Saks Fifth Avenue and Neiman Marcus merge under Richard Baker's HBC to form Saks Global, with Salesforce also contributing to the deal. This strategic move by Amazon has sparked discussions on regulatory approval and the tech giant's intentions. Will Amazon approach this investment as a venture capitalist, or is it positioning itself to make a splash in the luxury market? Targeting affluent shoppers, Amazon aims to revolutionize high-end retail by blending exclusivity with its widespread accessibility. It is interesting to see how Amazon's entrance will disrupt and reshape the luxury retail landscape. 

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Get to $1MM in Sales for your Fashion Brand with Wholesale! Everyone wants to get into Saks, Anthro and Revolve and other large retailers, but one BIG question to ask is: Can you afford to do wholesale? It’s crucial to understand the margins for wholesaling your line. Typically, you'll need to give wholesale accounts a generous margin for them to make money. At Alala, we use aim for a 60-65% margin when pricing for wholesale and then a 2.25-2.5x markup from wholesale to retail. If you don’t have strong COGS, you might end up losing money going wholesale, especially when factoring in other costs like warehousing and shipping. Get your COGS under control before considering selling to other stores. At the very least, try to break even initially. More insights coming soon! Subscribe to my Substack for weekly newsletters about how to grow your fashion brand to $1MM in sales. #Wholesale101 #Margin #COGS #FashionBusiness

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Do you know what surprises me most about Hudson's Bay Company purchasing Neiman Marcus Group? It's not the fact that Amazon is involved... ... but that they only took a minority stake in the deal. Amazon is a $2 trillion company. They likely could have found the $2.65 billion for this entire deal in the couch cushions at their Seattle HQ. You may be familiar with Jeff Bezos' thinking on "one-way-door" and "two-way-door" decisions. (If you're not, watch this: https://lnkd.in/gxt5z9Sa) Perhaps taking a minority stake in the newly-formed Saks Global (versus outbidding HBC and buying Neiman Marcus outright) is Amazon's way of entering the world of high-end fashion retail in a "two-way-door decision" kind of way... ... what do you think? #BrickAndMortar #Fashion #Retail #Acquisition

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The idea of these brand attributes being seen as a 'status symbol' is genius. Here's the ones from Oliver's list that I can really relate to as a CX advocate - and would love my retail brand connections to think about: Password entry, Membership programs, Subscriptions, Resale market, Rental offering... Let your actual customers shop in new ways, let them create value and price accessibility and free up space in their wardrobe or house to buy from you at full price when they need to buy (rather than on discount when you need to sell) No 10% discount pop up... Please. Make this stop. Its not worth it. Flagship stores, Strategic retail partners... Retail grows Ecom - Ecom grows Retail - 1 + 1 = 3. Connect these 2 worlds and allow your customers to pickup where they left off. Remote first, Empty calendars, Well defined rituals, Email is not primary collaboration tool... Talk in open channels, collaborate and progress work efficiently and asynchronously. Separate Conversations (discovery) from Promises (tasks) so both can flourish. Don't confuse being at work (on prem, in a meeting) with doing work.

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We're thrilled to announce the GROW NY preliminary agenda 🗒 Packed with valuable lessons from retail leaders at the top of their game 🚀 Join us on Tuesday July 9 for a full day of panels, talks, workshops, roundtables and networking at Center415, Manhattan (between 37th & 38th St). https://lnkd.in/erT_6sJm 30+ sessions including: ⛵ Navigate the High Seas of High SKUs 🏪 How the very best online brands are evolving into brick-and-mortar retail Grow performance marketing returns by 3️⃣ 0️⃣ % & spending less while doing it 🤖 How the eCommerce experience is evolving with AI 📺 Strategies for brand excellence through linear and streaming TV  👓 Set clearer goals for your paid ads & track your spend more efficiently How we scaled a bootstrapped brand to 9️⃣ figures in 5️⃣ years   💾 The imperatives of a successful data-driven social strategy  📈 The importance of profit-focused growth in eCommerce The latest proven retention strategies & CAC reduction tactics  Back to basics on community building And much more...

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WHAT IT TAKES TO WIN AT DTC IN 2024 The Business of Fashion: The DTC bust of the past two years has cast a cloud on the sector, but emerging fashion brands with a better handle on supply, demand and customer retention are seeing profitable growth. 🐶 Early stage start-ups are determined to avoid the fate that’s befallen their predecessors, taking voracious steps to profitably grow sales in a market that demands nothing less. 🦁 One strategy is including consumers in the product development process to ensure they’re making what they know they can sell. 🐵 The brands seeing massive growth are developing subscription services that ensure recurring revenue for them and ongoing incentives for their customers. 🐹 Developing a Unit Obsession Today’s digitally-native brands want to make sure when they produce a product, they can sell it. That’s meant being vigilant about inventory management and taking a more careful approach to product development. One way emerging start-ups are doing this is by regularly including their customers in the ideation process. Bandit Running, for instance, has a “community-centred design process,” said Nick West, the brand’s co-founder and chief executive. It hosts monthly sessions with the brand’s chief design officer, where New York-based customers who are often local runners discuss features they want in their running gear. A women’s racing crop top with six pockets that was developed from feedback given during those sessions ended up selling out within 24 hours, West said. “We’ve been balancing supply and demand at a very fine level,” he added. “A bad or much too large inventory for an apparel company can cripple it. So we’ve tried to be really smart about that balance.” Iterating on what consumers are already buying is another tactic. Larroudé uses its factory to quickly update core styles instead of designing entirely new silhouettes that may not catch on with customers. 🐯 Keeping Your Audience Creating products a brand is confident their audience will buy helps with another key goal for young labels — to get existing customers to keep shopping. In doing so, they are better positioned to grow while spending less on acquiring new shoppers. Many DTC brands have historically attempted this through email and SMS marketing, but the brands seeing massive growth have subscription services that ensure recurring revenue for them and ongoing incentives for their customers. learn more: https://lnkd.in/d7dzM32r #metaverse #dtc #ai #btc #blockchain #fashion #investment

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Come for the treasure hunt, stay for the shareholder returns. Last year, The TJX Companies, Inc., owner of MARSHALLS LLC, TJ Maxx & HomeGoods, and TK MAXX (Europe), generated over $50 Billion in revenue, more than Macy's and Nordstrom combined. This success was not generated from online sales but based on #BehavioralEconomics and applied human psychology, e.g., "bargains and the treasure hunt." The latest quarter was further proof of this resilience. Both TJX Cos. and Ross Stores, Inc. reported this week that comparable-store sales rose 3% in their quarters ended May 4 compared with a year earlier as inflation-pinched consumers sought out deals. This marks the seventh consecutive quarter of comparable sales growth for TJX and the sixth for Ross. Ross, whose consumers skew low-to-middle income, has been lowering prices to drive sales. TJX, with a higher-income clientele, has been able to raise prices selectively without much pushback. Bad times aren’t required for good times at these retailers—they were growing in 2021 when consumers were feeling flush. TJX, Ross and Burlington Stores, Inc. collective share of the #apparel and #footwear specialist market ballooned from 25% in 2019 to 31% last year. Off-price is likely stealing market share from home retailers, too. TJX’s HomeGoods business saw comparable-store sales rise 4% last quarter, while Ross Stores said the home category outpaced overall company growth. That contrasts with anemic home-related sales at retailers like Target and Beyond, the company that took on Bed Bath & Beyond’s website. Can off-price retailers keep growing? Weakness at other apparel brands suggests that they can. Recognizable brands such as Nike, lululemon, and Coach owner Tapestry have hit speed bumps on sales growth. Where there is unsold inventory, there are buying opportunities for off-price retailers. There could be a big wave of inventory from recent bankruptcies at EXPRESS and teen-focused rue21, as they close hundreds of stores. The wave of store closures also should help boost foot traffic at off-price retailers. Off-price historically has been the biggest beneficiary of apparel store closures. In addition to bankrupt retailers, Macy’s has announced plans to close 150 stores. UBS analysts estimate that more than 16,000 apparel stores could close over the next five years. This hasn’t gone unnoticed. TJX and Ross shares have appreciated 92% and 40%, respectively, over the past five years. They are now among the most expensive U.S.-listed apparel-industry stocks. They trade at forward-12-month earnings multiples that rival Nike’s and recently outpaced Lululemon’s. Off-price retail stocks aren’t cheap, but premium products never are. Well covered by Jinjoo Lee for the The Wall Street Journal

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Can heritage brands remain relevant without losing their roots???? One of my favorite topic I covered at eTail™ West with Patricia Vekich Waldron from RetailWire This article beautifully summarizes how we successfully drive growth and innovation while maintaining Hanky Panky’s brand identity and appealing to both our loyal and new customers. ⭐️Understanding Customer Needs: It's essential to understand customer cohorts beyond demographics and focus on their feelings and aspirations to drive product innovation. ⭐️Investing in Innovation: Allocating a portion of the budget to experimental initiatives allows for the freedom to fail and scale successful actions, driving growth. ⭐️Creating Delightful Experiences: Expanding product offerings, enhancing existing items, and creating new experiences are crucial, like our last NYC pop up, for engaging both old and new customers. ⭐️Balancing Heritage and Innovation: Heritage brands must respect their roots while adapting to meet the expectations of today's customers to ensure continued growth and relevance.

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In my latest article for Sourcing Journal, I examine the growing influence of reverse logistics in the resale market. While the resale industry is growing slower than most headlines suggest, it's proving sticky (and profitable) for brands that master the complexity of the back end. Dive in to learn about the businesses and new best practices emerging in this space. A special thanks to TERSUS Solutions (Peter Whitcomb), Debrand (Wes B.), ACS (Advanced Clothing Solutions) (MICHAEL CUSACK), The Renewal Workshop / Bleckmann (Nicole Bassett), Recurate (Adam Siegel), COYUCHI (Marcus Chung), and The Return (Brian Adams) for their collaboration on this article. #SustainableFashion #ApparelIndustry #ResaleMarket #ReverseLogistics #CircularEconomy

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