Berns Communications Group’s Post

SEPHORA TALES FROM THE CRYPT. EP 9. PARTNERSHIP IS A 2 WAY STREET. Principles. Are you prepared to stand up for them? Even if there is short-term pain. Partnership. In order to work it has to be a win-win. Otherwise it feels like going the wrong way down a 1- way street. In the early days SEPHORA desperately needed ‘dept store’ brands (read L'Oréal, The Estée Lauder Companies Inc.) to attract, well, dept store (read Macy's, Nordstrom) customers. To say the brands were reluctant is an understatement. More like they were highly resistant to our overtures. We succeeded in getting an important one to ‘try us’ (name withheld to protect the guilty). Roughly a dozen stores. After a few months we had a honcho meeting- their execs and ours. Felt like the OK corral. Good news- results were off the charts. Make that great news. They came in prepared to add more stores. Even better news. Looking at the list of their store adds there was only one problem- there were zero mall stores. Only street locations. They were tip-toeing around the dept stores. No malls-no conflict. This was a major problem for me and my concept of partnership. I said “I will give you a list of mall stores. Pick one. Any one. ONE! And we have a deal.” Cupla weeks later they came back and said…No. No mall stores. At which point we asked them to leave. Sephora. Altogether. As painful as that was we simply could not live with 100-0 partnership. 95/5 we’d tolerate. 100-0 no. They didn’t really believe it, but within 2-3 months they were gone. It cost us $. But the lesson for our teams was priceless. We are not helpless. We believe in winning together. And we practice it. These kinds of decisions ultimately define who you are as a leader. Being true to hugely important principles in the face of adversity is perhaps the ultimate test. You are your principles. Or you are not. There is no inbetween. #partnershipistwo #youareyourprinciples 

What's New to TheStreet... 👗 Abercrombie Won by Leaving Teens Behind. Hollister Sticks with Youth! 👕 While Abercrombie shifted focus, sibling brand Hollister is staying true to its teenage roots, adapting to post-pandemic trends and teen desires. 🌟🛍️ Do you think Hollister's strategy will pay off? Share your thoughts below! Share your thoughts!💬👇🏻 👉🏻Follow New To The Street for more! #fashionnews #abercrombie #hollister #teenfashion #businessnews #business #news #newtothestreet

Please see below for my comments published in CO (by US Chamber of Commerce) on the Stanley Tumbler phenomenon. In this article, I offer my consumer culture perspective on the Stanley Tumbler - a functional, authentic, and ascendant product. https://lnkd.in/eBVK_aQX

What can be learned from the come-back kids? Marks and Spencer, Abercrombie & Fitch Co., and AllSaints are three strong turnaround stories that have demonstrated retail/fashion turnarounds are possible. These three span the UK's broad appeal middle market, a famous global player, and a super-focused directional fashion brand. While Ted Baker and Superdry are on the ropes, these success stories offer valuable insights, although we see no common silver bullet 🤔 Here are three thoughts from TRP: ✅ M&S maximised and widened the appeal of Food while bringing third-party label credentials to help the perceptual change of own-label clothing (as own-label was developed too) )—all with operational efficiencies, digital development, and a re-energised team culture. ✅ Abercrombie was bold and brave, a significant change from the original model, in which customer feedback now plays a leading role in product development. The new CEO has created a highly customer focussed culture, rather than A&F knows best ;) They've also moved to attract an older customer than teens. ✅ All Saints strengthened its distinct brand DNA, found its tribes in global locations, and developed its DTC channels, avoiding an over-reliance on wholesale and marketplaces. It would be good to hear what others believe has contributed to these turnarounds... #Retail #Fashion #Brands Alexandra Legro RM Philip Mountford Jon Bennett Micha Medendorp Benjamin Philip Sarah L. Morris Helen Beebe Laura Supple Eva Pascoe Henrik Madsen Will Murray-Phillips Alex Pickering Kees Verkade

To turn around The Gap, Richard Dickson "must grapple with what might be the most fundamental question possible for a retail CEO: Why do his brands exist?" This is a tall order (I know from experience). Aside from the small sample of successful #fashion turnarounds (Coach and Abercrombie & Fitch Co. are notable examples), it requires consistency across multiple disciplines, time for consumers to adapt, and often. a few lucky breaks. Having visited several Gap stores this spring, I agree they've addressed some fundamentals and started to deliver on what Dickson believes is "the secret to building brands:" ... "to give them a strong point of view, make relevant products and then market them in a way that creates emotional connections with consumers." With all due respect (and I'm rooting for Gap Inc.), it will take multiple seasons to see if they can can translate a #linen campaign into brand #mojo. And it will take more than #PoV, #product, and #marketing. #Retail requires #execution and #engagement at a speed and scale: - Execution across the plan, buy, make, move, market, sell, and serve functions that results in customers being able to buy. - Engagement with customers during and across each interaction that collectively comprises their lifecycle with the brand. To deliver on its brand promise of "originality and self expression," Gap also needs clarity on the "who" -- which customers it's trying to win. On one hand, there are #Millennials and #GenXers with nostalgia for the Gap, who saw this spring's linen campaign and likely thought (as I did) "The Gap finally looks like the Gap again." That's probably the low-hanging fruit, but may not be sustainable for the long haul. On the other hand, there are the #GenZers and #Alphas, many of whom "wouldn’t set foot in a Gap store," but who have a longer spending runway ahead of them. Having a clear customer PoV (which requires more than just picking a generational cohort) will guide decisions on product (style, size, fit), marketing (message, media), go-to-market (stores, digital, wholesale), experience ("spa music" or "earsplitting" rock/pop), and many operational decisions. Equally as important is to "lean in" on new capabilities. Gap Inc. needs to build v4.0 of the specialty retail operating model; becoming an #AIFirstRetailer that enables agility at scale and cost. And with this is moving from a "cautious culture" to one that's action-oriented and moves "at pace." Not every idea will work, but fear of change is paralyzing; far worse than trying, learning, and moving forward. I agree with John Demsey that "I’m not sure Gap will ever be able to recapture what it once was." Luckily, it doesn't need to. The Gap needs to find its niche, build momentum, and start creating Gap Inc. 4.0. https://lnkd.in/et8rJyTN

Nordstrom: What Is the Future for Department Stores? Last week, Macy’s new CEO announced that the chain would close 150 department stores and invest more in its luxury-focused Bloomingdale’s locations, a drastic move aimed at ensuring the company could survive an assault from activist investors, as well as the wider retail apocalypse. Nordstrom’s product mix is closer to Bloomingdale’s than Macy’s, but it faces many of the same problems, including declining foot traffic in some malls and shrinking margins in the always tough wholesale business. The company has dabbled in fixes ranging from small-format stores to closing unprofitable businesses (RIP Nordstrom Canada), and the closure of Macy’s stores may send some customers to rival department stores. But if things don’t turn around soon, the company may need to contemplate some drastic moves of its own, or risk becoming another activist investor target. What do you think is the future for “large” department stores? #departmentstore #macys #nordstrom #luxuryfashion #retailnews #bigboxretail #luxuryretail #toronton #oakville #fashionnews #fashionindustry

Claire’s was in trouble. Big trouble. Mall traffic was declining, its core customer was aging out of its offerings, and it was in a financial mess. It filed for bankruptcy in 2018. After a nearly 50-year run, many thought the business had run its course and was destined to join an ever growing retail graveyard. But, they weren’t ready to give up. I’m 2021 they convinced a hotshot CMO from Pepsi to join the company, and they quickly learned the power of branding done well. Within a a few short years the business has recovered. Its revenues and relevance are increasing. Smarter distribution, product, and marketing strategies are working in concert to make meaningful improvements. I love to witness successful turnarounds. They are usually the exception, not the rule, so when they work, we should all take notice, and take notes, to see what principles and practices may apply to our situation as well. https://lnkd.in/d-cHcFry

The lack of funding for Black-owned beauty brands, despite their market potential, exposes a frustrating disconnect. Investors, now risk-averse, prioritize profitability over innovation, leaving these brands—often solving unique beauty concerns—struggling to scale without adequate financial backing. The demand for proven success and retail traction creates a catch-22, where Black founders face higher barriers and fewer resources. While grants help, they’re not enough. Investors need to reconsider their approach and recognize the long-term cultural and financial value these brands offer, rather than just focusing on immediate returns. https://lnkd.in/eTThfM2U

#BlackFriday happens differently in NYC; generally a bit later, and more focused on fashion and footwear than big box. And it happens outside - block by block. A few thoughts following the 10 miles (15,000 steps) I spent in most of Manhattan’s major shopping districts. Foot traffic was mixed. Core midtown / 5th Avenue (48-57th) was bustling (mostly with foreign tourists) and prime Soho (Broadway b/w Prince & Broome) was packed. But 1-2 blocks further and the crowds thinned out. The Flatiron to Union Square triangle (5th Ave & Broadway) was pretty sparse, as were its stores, and the Union Square Holiday Market, which is often gridlocked with people, was only moderately crowded. Further downtown, Westfield WTC was only moderately busy, with more people eating than shopping. Turning to retailers … for every store that was crowded, there were plenty that looked no busier than a typical weekend. Edikted wins the “longest line” award, with 100+ teen girls (and some parents and boyfriends) queuing. The North Face was one of the few other stores with a line. Abercrombie & Fitch Co. and UNIQLO were both packed (in Soho as well as 5th Ave). The biggest surprise was Macy's. The Herald Square flagship was #WallToWall on the main floor, and quite busy on many of the others. On the flipside, Nike and Apple were notably quieter than I expected (I’ve seen lines at each in years past), H&M and Zara both seemed pretty flat, and the Nordstrom flagship was downright empty (in fairness, I was there on the early side — 11:30am). On the whole, I would say we’re in for uneven performane. The macro sentiment is closer to #HoHum than #HoHoHo and you can see the brands that appear to be separating themselves from the pack. And as we all experienced, most of the Black Friday deals started long before the day itself, and a LOT of the shopping has shifted online.

"The consumer [is] being mindful about how they’re using their dollar and purchasing power, knowing they have so many choices." As the data comes in from #BlackFridayWeek, it's about as mixed as I saw on the streets of NYC. The quote above is from Michelle Meyer, Chief Economist at Mastercard, which reported spending growth of 3.4% (15% online and 0.7% in-store) on Black Friday. Adobe Analytics, which only tracks online spending, reported sales growth of 9%, driven by "bigger-than-expected" discounts. And it's important to remember that: (1) "Black Friday has transformed from a stand-alone day ... to a monthslong campaign of discounts;" and (2) "The ease of online shopping has meant fewer Americans go out to stores on Friday, even as it remains one of the busiest days of the year for retailers." https://lnkd.in/ehEA_9B3