Hello, Retailist Roundup readers! As we conclude another dynamic week, the buzz in the retail and e-commerce sector is palpable. This week has been packed with game-changing updates, emerging trends, and cutting-edge innovations that are reshaping our industry. Are you ready to delve into the top stories? Join us as we uncover these developments and their far-reaching impacts!

New from Retailist

Merchants Are Spending 332 Hours Each Year On ‘Overwhelming” Admin

Polling over 1,000 businesses, the study found that US merchants dedicate 6 hours and 24 minutes weekly on manual admin tasks, 27 hours and 44 minutes per month, and 332 hours per year.

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In the news: Top headlines this week

Five Below CEO Joel Anderson resigns. Five Below CEO Joel Anderson has resigned to pursue other interests, with COO Ken Bull stepping in as interim CEO. Despite an 8% increase in net sales for 2023, the retailer saw a decline in comp sales and net income, which also dropped in the first quarter of 2024. Analyst Phillip Blee predicts that the company's ambitious growth plans to double its store count by 2030 may be scaled back under the new management team. [Retail Dive]

US online sales hit $7.2 bln on first day of Amazon Prime Day event, Adobe says. On the first day of Amazon's Prime Day event, U.S. online sales reached approximately $7.2 billion, according to Adobe Analytics. Competing retailers like Walmart and Target also launched sales events in July, offering deep discounts to attract customers. Amazon has been gaining market share from other retailers during Prime Day, which began a decade ago, by providing significant discounts and fast delivery options. [Reuters]

Self checkout boasts ‘record’ year: report. The U.S. self-checkout market experienced a record year, with increased activity led by supermarket chains like Aldi and convenience stores such as Refuel and Kwik Trip. Existing locations are expanding or upgrading their self-checkout terminals to keep up with demand. Retailers are adapting to changing consumer habits by introducing more digital payment options and making operational changes to address concerns about shrinkage, such as limiting basket sizes. [Payments Dive]

China's Zara rival is expanding — and it's setting its sights on London and NYC next. China's fast-fashion company Urban Revivo is planning a global expansion, targeting cities like London and New York, as other industry giants like Zara scale back their physical footprints to focus on e-commerce. Founded in 2006, Urban Revivo's parent company, Fashion Momentum Group (FMG), aims to increase its presence beyond Asia, where it currently operates over 400 stores in mainland China and several in Southeast Asia. So far, Urban Revivo's engagement with Western markets has primarily been through online shopping. [Business Insider]

New Balance partners with the WNBA as the brand looks to grow in women’s sports. New Balance has announced a multiyear partnership with the WNBA to enhance its presence in women's sports. As an official partner, New Balance will feature in broadcast, digital, and retail content, including promotions with Los Angeles Sparks rookie forward Cameron Brink. Joining other league partners like Adidas, Nike, Puma, and Under Armour, New Balance aims to expand its footprint in basketball and become a leader in women's sports. Jessica Vassall, New Balance's global head of partnerships, expressed excitement about contributing to the growth and progress towards parity in women's sports. Financial details of the deal were not disclosed. [CNBC]

Hugo Boss Stock Drops 10% on Lowered 2024 Outlook Due to China Demand. Hugo Boss shares dropped by 10% after lowering its 2024 sales outlook due to decreased demand in China, reflecting broader challenges in the luxury fashion sector. The revised annual sales forecast is between 4.20 billion and 4.35 billion euros, down from the previous estimate of 4.30 billion to 4.45 billion euros. Deutsche Bank analyst Michael Kuhn noted that the company's Q2 operating profit of 70 million euros missed market expectations by 33%. [Retail Wire]

Burberry shares drop 16% after the luxury giant issues profit warning and replaces CEO. Burberry shares plummeted 16% following a disappointing fiscal first-quarter performance, leading the company to issue a profit warning, replace its CEO, and suspend its dividend. If the current trading slowdown persists, Burberry anticipates an operating loss for the first half of the year and a full-year operating profit below current expectations. Joshua Schulman, formerly of Michael Kors and Coach, has been appointed as the new CEO, replacing Jonathan Akeroyd, who stepped down by mutual agreement. Burberry Chair Gerry Murphy described the first-quarter performance as "disappointing" and highlighted the deepening weakness in the company's outlook. [CNBC]

Adidas raises guidance again as Q2 sales surge 9%. Adidas has raised its guidance again as Q2 sales surged by 9%, driven by strong performance in non-Yeezy styles like the Samba. Excluding Yeezy sales, currency-neutral sales increased by 16% in Q2, highlighting the company's underlying business improvement. Despite releasing over 100 Yeezy styles this quarter, revenue from Yeezy dropped by nearly 50% year-over-year, indicating that most high-quality inventory has been sold, leaving less desirable items. [Retail Dive]

New Reports Show Inflation Easing. Recent reports indicate that inflation is easing, with the Consumer Price Index (CPI) falling by 0.1% from May, reducing the annual inflation rate to 3% from 3.3%, according to the U.S. Bureau of Labor Statistics. This decline, the first since May 2020, is largely due to decreasing gas and car prices. Additionally, the core CPI, which excludes energy and food, also saw a modest rise of 0.1% from May, bringing the annual core inflation rate down to 3.3%. Shelter costs have begun to ease, with the shelter index increasing by only 0.2% in June, the slowest rise in three years. Retailers are cutting prices in response to more cost-conscious consumers, a trend likely to continue as businesses compete on price to retain market share amid consumer financial strain. [Retail Wire]

Ray-Ban maker EssilorLuxottica taps streetwear audience with Supreme deal. EssilorLuxottica has agreed to buy streetwear brand Supreme from VF Corporation for $1.5 billion, marking its first acquisition of an apparel company. Additionally, EssilorLuxottica will acquire an 80% stake in Heidelberg Engineering, a German company specializing in ophthalmic diagnostic solutions, as part of its expansion into medical technology. VF Corp, which bought Supreme in 2020 for $2.1 billion, expects the sale to be dilutive to its earnings per share in fiscal 2025. Following the announcement, VF Corp shares rose over 8%, while EssilorLuxottica shares fell nearly 4% in Paris. [Reuters]

Weak China demand hurts sales at luxury goods firm Richemont. Luxury goods firm Richemont, owner of Cartier, reported almost flat sales for the three months through June, primarily due to weak demand in China, causing results to fall slightly below expectations. Despite a temporary rise, Richemont shares erased gains in early trading. The impact of the Chinese market was partially mitigated by a significant increase in business in Japan. This comes amid a challenging reporting season for European luxury goods companies, with Swatch experiencing falling sales, Burberry issuing a profit warning, and Hugo Boss reducing its sales guidance due to weak Chinese demand. [Reuters]

How AI and automation will reshape grocery stores and fast-food chains. AI and automation are significantly transforming grocery stores and fast-food chains, with technologies like self-checkout kiosks and AI-driven ordering systems in drive-thru lanes becoming increasingly common. These innovations aim to mitigate high labor costs and potentially lower prices for consumers amidst ongoing food inflation. Fast-food chains such as McDonald’s, Taco Bell, and Wendy’s have reintroduced value menus, while retailers like Walmart and Target have reduced prices on select grocery items. Neil Saunders, managing director at GlobalData, notes the challenge of balancing profitability, sales, and customer satisfaction in the current economic environment, suggesting that a full balance may not be achieved until economic conditions improve. [CNBC]

Indochino set to open 5 new stores this summer. Indochino is set to open five new stores this summer in Charleston, South Carolina; Fort Worth, Texas; Buffalo, New York; Murray, Utah; and Los Angeles. This expansion aims to enhance its footprint and apparel offerings, providing a unique showroom experience for local customers to create custom suits and shirts. The expansion follows a successful fiscal 2022 with a 40% revenue increase and record-setting quarterly revenue in Q1 2023. [Retail Dive]

Skechers sues LL Bean for copying shoe design. Skechers has filed a lawsuit against LL Bean, accusing the company of copying its shoe designs, which have sold millions. The complaint, filed in Manhattan federal court, claims that LL Bean's Freeport casual shoes infringe on two patented designs for "heel cups" that surround the back of the foot. Skechers describes its designs as "unique and eye-catching," featuring "graceful, sweeping, gently rolling lines and slopes" that mimic the shape of a heel, and alleges that LL Bean only introduced its infringing shoe after Skechers had invested heavily in developing and promoting the design. [Reuters]

US retail sales report showcases consumer, economic resilience. U.S. retail sales were unchanged in June, as declines in auto dealership receipts were balanced by strength in other areas, indicating consumer resilience and bolstering economic growth prospects for Q2. The Commerce Department's report also showed higher-than-expected sales in May, easing concerns of an economic slowdown and not altering expectations for potential Federal Reserve interest rate cuts in September. Bill Adams, chief economist at Comerica Bank, noted that while low- and moderate-income consumers are reducing spending, affluent consumers continue to drive economic momentum. [Reuters]

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

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