Unified Commerce Group’s Post

"The list of private-equity or VC takeovers of a retailer that translated into success is short," says Mark Ryski, Author, CEO & Founder of HeadCount Corporation. "The Body Shop is another example. And while private equity masters and retail operators rarely have alignment on objectives, I don’t think we can blame The Body Shop’s current situation all on private equity. Creating a concept like The Body Shop that achieves world-wide success is truly magical, and that’s what Anita Roddick did in the 70s. However, maintaining the magic is hard to do, and The Body Shop lost it’s magic. This sad outcome for The Body Shop is a good reminder that the market never sleeps, new competitors are around every corner and you’re only as good as your last success. The Body Shop rested on it’s laurels and the acquisitions/private equity just muddied the water." Check out more insights from one of the retail industry’s leading experts - https://buff.ly/3qRfPx2. More great comments on this topic by RetailWire's BrainTrust experts including: Neil Saunders, Rachelle King, Gene Detroyer, Jeff Sward, Mark Self, Carol Spieckerman, Brandon Rael, David Biernbaum, and Mohamed Amer, Ph.D.

🌿 The The Body Shop’s rescue: a testament to brand resilience and strategic turnaround Three days ago, a consortium led by British cosmetics tycoon Mike Jatania saved The Body Shop out of administration, securing 113 UK stores and more than 1,300 jobs. 🔑 Key highlights: 🌍 Global reach: The deal includes control over assets in Australia and North America, positioning the brand for a renewed global presence. 💼 Leadership team: With Jatania as executive chairman and Charles Denton (former chief exec of Molton Brown) as CEO, the experienced leadership duo is set to steer the brand toward recovery, leveraging their expertise in retail turnarounds. 🏪 No immediate store closures: While there are no immediate plans to close stores, the new owners will monitor the estate footprint to ensure operational efficiency. 💡 Focus on innovation: A strong commitment to product innovation and enhancing seamless customer experiences will be at the heart of the brand's revival. 💰 Financial challenges: The deal follows the administration filing in February 2024, with £276m owed to creditors. 🔮 Looking ahead: 🔄 Balancing The Body Shop's heritage with evolving consumer demands 🧪 Reclaiming leadership through product development 🌐 Harnessing the brand’s presence across 70+ global markets The Body Shop's post-administration future will hinge on balancing its iconic values with the demands of a competitive and rapidly evolving market—an ambitious journey for an iconic brand with deep consumer roots. #CorporateRescue #restructuring #CorporateCommunications #TheBodyShop

The comeback is always stronger than the setback… It was an absolute privilege to see that statement played out in the best possible way recently when Tatty Devine opened their new Neal Street store. Back in Summer 2023, Tatty Devine had to close their central London store. After 14 fabulous years (which included the decidedly unfriendly-to-bricks-and-mortar-stores pandemic years), with just 2 weeks notice, their Landlord refused to negotiate or renew their lease. Tatty Devine had been actively communicating with said Landlords since July 2022 to confirm a continuation of their lease. A new 5 year lease was agreed in principle in April and when the lease expired at the end of June 2023 a Tenancy at Will was issued under the proviso that the grant of a new lease of the premises was in play. However, Tatty Devine was then notified on 29 August that they were required to leave the premises by 14 September - despite the fact that they had been consistently led to believe that the lease would be renewed without any issues. A massive blow to this small, independent business on so many levels, it meant potentially missing out on sales in the crucial run up towards Christmas. Fast forward to late November and after pivoting admirably following the store closure (no jobs were lost!) Tatty opened in a fantastic new location on Neal Street, nestled in between Soho, Covent Garden and the Strand (footfall ahoy!). Last month they had their official opening party and as you can see by this picture, it was a huge success. Attended by their amazing community of loyal fans, customers, family, friends and staff (past and present), the store was brimming at the seams, to the extent where the crowd poured out across Neal Street. At one point a (somewhat-bewildered-by-the-scenes-but-lovely) Seven Dials security chap asked me what was happening. Cue a chat about Tatty Devine, and me encouraging him to pop in should he ever need an inspired gift for a female relation. Or just to say a friendly “Hello". What a night! Bustling? You better believe it. Fabulous female-founded independent British business 1 - Short-sighted landlords with arguably poor business sense 0 Well done Team Tatty 😘 👏

Activist investor Barington Capital, in partnership with Thor Equities, has acquired a stake in Macy’s and is urging the retailer to implement significant strategic changes. Their proposals include creating a separate real estate subsidiary to unlock the value of Macy’s properties—estimated between $5 billion and $9 billion, surpassing the company’s current market value. They also recommend exploring strategic alternatives for the Bloomingdale’s and Bluemercury brands, reducing capital expenditures from approximately 4% to between 1.5% and 2% of total sales, and initiating a stock repurchase program of $2 billion to $3 billion over the next three years. Additionally, Barington and Thor seek representation on Macy’s board to drive these initiatives. Macy’s has expressed confidence in its existing strategy and is open to engaging with shareholders, including Barington and Thor. The company’s stock has declined about 18% this year, reflecting ongoing challenges in the retail sector. This development follows previous activist investor engagements, including a terminated $6.9 billion acquisition proposal by Arkhouse Management and Brigade Capital Management earlier this year. Barington Capital, founded in 2000 by James Mitarotonda, has a history of advocating for changes in retail companies, such as the separation of Victoria’s Secret and Bath & Body Works at L Brands. Macy’s is scheduled to report its quarterly earnings and provide updates on an internal investigation into previously undisclosed expenses on Wednesday. #RetailIndustry #ActivistInvesting #CorporateStrategy #Macys #Bloomingdales #Bluemercury #RealEstate #ShareholderValue #StockRepurchase #BoardOfDirectors https://lnkd.in/e-n_V_hd

Aligned with my keen eye on brand expansion trends, it seems Buc-ee's is strategically planning to increase their presence in Tennessee. This move shows a renewed commitment to steadily bolster their statewide footprint and customer base. • Buc-ee's, the Texas-based convenience store giant, has its sights set on carving out more market share in the Volunteer State. • Look forward to another Buc-ee's location in Fayette County, joining two other establishments already delighting customers in Crossville and Sevierville. But this interesting development comes with an even vibrant subplot - the simultaneous move to develop another site. Buc-ee's, it seems, is keen on reaching more Tennesseans, fostering convenient connections with them. • While the specifics of this 'fourth approach' are still under wraps, an implicit signal is clear. Buc-ee's relentlessly prioritizes growth and customer accessibility across different territories. However, it's worth noting the company's willingness to re-strategize, as showcased by a move last year. The brand willingly reconsidered plans for another Tennessee location. • Demonstrating caution, insight, and adaptability, they opted to postpone development plans for a potential fourth outpost in Tennessee. • While at first glance, this could be perceived a drawback, it ultimately showcases the brand’s determination to be impeccable with their growth trajectory – striking a balance between expansion and sustainability. Going forward, one could anticipate a variety of possibilities: 1. Intensive Competition: As Buc-ee's continue expanding, they' will likely stiffen competition amongst retail convenience stores within the area. 2. Focus on Community Engagement: Anticipate a renewed focus on community engagement, as Buc-ee's seems poised to be more than just a pitstop for consumers - but a part of their local landscape. Judging from the dynamics at play, we are witnessing an artful blend of calculated risk, customer engagement, and responsive modification constructively shaping Buc-ee's expansion blueprint. Growth, strategy, adaptability. As industry observers, let's watch this exciting narrative unfold, while extracting valuable lessons for our contexts. Bravo Buc-ee's, you continue to inspire us with your brand resilience, eloquence in business strategy, and admirable commitment to serve consumers effectively. Over to you, Tennessee! #BusinessExpansion #BrandStrategy #Bucees #TennesseeGrowth

Is Party City on the Right Track Post-Bankruptcy? Party City has been on a tumultuous roller coaster in recent years that led it to file for Chapter 11 bankruptcy in January 2023. With Barry Litwin’s recent appointment as CEO and Party City's emergence from bankruptcy, what strategies should the company pursue to rebuild its market position and achieve sustainable growth? Read the article & panel discussion here: https://lnkd.in/etenTwHu Neil Saunders "Bankruptcy bought Party City some breathing space, mostly because it reduced the company’s enormous debt load and ditched a swathe of unprofitable stores." Paula Rosenblum "Our company had the merchandise arrayed in this “new” way. A consultant brought in said this was all wrong and changed it to the party city racetrack style. He also bankrupted us, but that’s clearly a story for another day." David Biernbaum "When a retail chain like Party City emerges from bankruptcy and earns a new lease on life, it is always a positive development. Having new leadership is also a good thing, especially when it comes from someone with successful turnaround experience such as Barry Litwin."

From intern to CEO.

In this post pandemic world Gen Z and other generations are finding themselves in more third places, seeking real-world experiences and engagements… and they’re open to brands participating if it feels authentic and shareable. Gone are the days of a one-day activation Times Square unless it has impact or value to add for your consumer. I am here for the bespoke, consumer-insight driven activations and pop-ups that function as awareness and engagement programs cultivating true relationships and surprise and delight with consumers. Cheers to you AMERICAN EAGLE OUTFITTERS INC. and Craig Brommers on this blue jeans era. 🤠 #experientialmarketing #consumeractivation #genz

After several months of back and forth, Macy's agreed to open its books to dissident investors trying to buy out the department store operator with an increased offer of $6.6 billion. That move means the activists are now getting a better idea of the value of the retailer's real estate. From the get-go back in December, some industry analysts have said Arkhouse Management and Brigade Capital Management, both based in New York, are more interested in Macy's real estate than its business as a merchant. The activists' unsolicited pursuit of Macy's — the parent of not only its namesake chain but also of upscale department-store operator Bloomingdale's and beauty-goods seller Bluemercury — is seen by some as an attempt to monetize the company's brick-and-mortar holdings, by selling off pieces, after taking it private. Wall Street and retail industry analysts who have studied Macy's holdings, spanning not only roughly 500 stores in its namesake chain but a network of distribution centers, have estimated their value at anywhere from $5 billion to as much as $14 billion. The high estimate was several years ago, in 2017, before Macy's embarked on a wave of store fleet reductions. The offer Arkhouse and Brigade have on the table is on the low end of that wide range of valuations. Their first offer for Macy's late last year was $5.8 billion, a sum that they've since increased by $800 million.

It’s not always doom and gloom on the high street. Some of you may recall Cath Kidston one of the early post COVID administrations in the retail sector. Well four years later Cath Kidston is making a return to the high street. The goodwill, stock and other intellectual property was sold as part of a pre pack administration sale to a connected party. It was then acquired by Hilco before eventually landing in the ownership of retailer Next in 2023, following a subsequent administration, who have been acquiring a number of retail brand out of administration processes. The brand is set to return to the physical high street with a store in Westfield White City. At this stage it is unclear whether this is the first of many. The challenge will be in avoiding the same mistakes the brand made that led to the previous administrations. Most notably this will be in the form of branding given Cath Kidston has been seen somewhat as ‘marmite’ as far as its brand identity is concerned. Next has a strong track record on the high street so arguably if there is a retailer than can bring Cath Kidston back to relevance it would be Next. The timing of it’s reopening and the run up to Christmas will no doubt have some impact on the success of the return to the high street. #insolvency #businessrecovery #restructuring #turnaround #business #finance #cathkidston #highstreet #accountant #london