The turnaround of Abercrombie & Fitch is finally here.

After moving away from controversial marketing

April 26, 2024

Hello Retailist family! 🌟 As the weekend draws near, the buzz in e-commerce, retail, and Direct-to-Consumer (DTC) is palpable. This past week was bustling with news, emerging trends, and innovations in our favorite industry. With a wealth of information available, are you excited to delve into the most captivating stories that have emerged? Let's explore these fascinating developments together and see what they mean for us!

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In the news: Top headlines this week

The latest in experiential retail. Retailers are actively exploring experiential retail strategies to re-engage consumers by blending interactive store models with innovative technologies and partnerships. Digital-first brands are venturing into physical retail spaces, and established retailers are expanding their concepts with new formats and collaborations. Notable developments include Claire's launching displays in thousands of Walgreens stores, Clinique opening an Amazon storefront, and Alo Yoga introducing an immersive shopping app compatible with Apple Vision Pro. [Retail Dive]

Prada outshines rivals. Prada has outperformed its rivals in the luxury fashion sector, with a 16% increase in first-quarter revenue, amounting to 1.19 billion euros, driven largely by robust demand for its Miu Miu brand and continued growth in Asia. While other luxury brands like Gucci's parent company Kering reported sharp declines, Prada saw significant growth, particularly in Europe and the Asia Pacific regions, with Japan being notably strong. The increase in revenue is also supported by Chinese shoppers spending more abroad, notably in Japan and Europe, even though this has led to reduced domestic sales during the holiday period. [Reuters]

Selena Gomez's makeup brand is worth $2 billion — but she has no plans to sell. Despite rumors and a Bloomberg report suggesting that Selena Gomez's makeup brand, Rare Beauty, was exploring potential sales or investments, Gomez has stated that she has no plans to sell the company. Rare Beauty, valued at $2 billion after generating $300 million in sales last year, was named a top merger and acquisition target by The Business of Fashion. However, Gomez emphasized her commitment to the brand's future during her appearance at the Time100 Summit in New York City, indicating her integral role in its ongoing development. [Business Insider]

Chipotle abandons Farmesa Fresh Eatery spinoff after ghost kitchen closes. Chipotle Mexican Grill is discontinuing its Farmesa Fresh Eatery concept after the closure of its partner Kitchen United's ghost kitchens. The spinoff, which began just over a year ago in Santa Monica, focused on customizable bowls with a farm-to-table ethos, reflected in its name, a blend of "farm" and "mesa" (Spanish for table). Although there are no plans for a standalone Farmesa restaurant, the brand will continue within Chipotle’s innovation lab for developing new menu items. [CNBC]

Foot Locker unveils new store concept in ‘critical year’. Foot Locker is introducing a new store concept as part of a significant overhaul aimed at addressing past criticisms, such as a male-dominated layout, and unifying the customer experience across its global chain. The revamped format, which recently debuted in Willowbrook Mall in New Jersey and is set to open in Paris and other international locations, emphasizes a more holistic approach to cater to men, women, and families. This initiative, described by Chief Commercial Officer Frank Bracken, represents a strategic move to synchronize the brand's retail presence and improve inclusivity. [Retail Dive]

Unilever beats sales forecast as customers return to brands. Unilever surpassed first-quarter sales expectations, witnessing a 4.4% rise in underlying sales growth as consumers returned to its brands like Dove and Hellmann's after previously opting for cheaper alternatives during a period of high inflation. The company experienced a 2.2% increase in sales volumes, marking the second consecutive quarter of growth following declines, and prices also rose by 2.2%. The boost in sales led to a more than 4% increase in Unilever's shares, as the company's CEO expressed confidence in achieving sustained volume growth and accelerating gross margin expansion. [Reuters]

Amazon just turned up the heat in the grocery wars with Walmart and Target. As summer approaches, Amazon intensifies the competition in the grocery sector against giants like Walmart and Target by launching a new subscription service. This service, available to Prime members, offers unlimited same-day delivery for orders over $35 from Whole Foods, Amazon Fresh, and local shops. Prime members can start with a free 30-day trial, and the service costs $9.99 per month thereafter, with a discounted rate of $4.99 for customers with a registered EBT card, even without a Prime membership. [Business Insider]

Starbucks resumes bargaining with union after two sides thaw relationship. Starbucks and Workers United, the union representing its baristas, will resume contract negotiations, ending a prolonged standoff. This development follows constructive mediation discussions that began in February, which helped thaw the relationship between the two parties, previously marred by disputes over the union's use of Starbucks branding. Despite approximately 500 U.S. Starbucks locations having voted to unionize since December 2021, no collective bargaining agreements have yet been finalized. [CNBC]

The turnaround of Abercrombie & Fitch is finally here. Abercrombie & Fitch has been experiencing a significant turnaround, leading S&P Global Ratings to upgrade the apparel retailer based on its robust performance in 2023 and strong forward momentum. After moving away from the controversial marketing strategies of its former CEO Mike Jeffries, the company appointed Fran Horowitz, a company veteran, who has revitalized the brand. Horowitz's focus on leveraging digital channels and data, alongside a strategy centered on improving inventory yield and cultivating lasting customer relationships, has been pivotal to the retailer's revival. [Retail Dive]

The handbag wars have begun after the US sued to block the merger of Coach and Michael Kors. The U.S. Federal Trade Commission (FTC) has filed a lawsuit to block the merger between Tapestry, Inc. and Capri Holdings, which would have united luxury brands like Coach, Kate Spade, Michael Kors, Jimmy Choo, and Versace under one corporate umbrella. While regulators in the European Union and Japan approved the merger, the FTC argues that the $8.5 billion acquisition would grant Tapestry a dominant position in the 'accessible luxury' handbag market, raising concerns over reduced competition. [Business Insider]

Fashion Retailer Express Files for US Bankruptcy Protection. Fashion retailer Express has filed for U.S. bankruptcy protection, potentially leading to the closure of nearly 100 stores across the country. The company, which also owns subsidiaries like Bonobos and UpWest, has received a non-binding letter of intent for the sale of most of its retail operations to a group including WHP Global and subsidiaries of Simon Property Group and Brookfield Properties. Following this, Express secured $35 million in new financing from its existing lenders, pending court approval. [Retail Wire]

Job Board: This week’s Top Openings in DTC, RetailTech, and more

Want to submit a role to our talent board? Email [email protected].

  • Software Development Manager, Web Applications (Remote) Spokeo - more here

  • Associate Director, CRM Marketing (Boston, MA) Chewy - more here

  • Media Director (New York, NY) Squarespace - more here

  • Head of Regulatory Legal (San Francisco, CA) Block - more here

  • Director, Compensation (Needham, MA) SharkNinja - more here

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