Lacoste appoints new deputy CEO and Mattress Firm considering Initial Public Offering (IPO) once again
In the dynamic world of retail, changes are a constant. Here's a roundup of some recent developments that have caught our eye.
Nike's Anti-Resale Strategy
Nike is taking a firm stance against the resale of its products. The sportswear giant is shifting towards a direct-to-consumer (DTC) model, aiming to control distribution more tightly and prioritise full-price sales. This strategy includes reducing promotional activity and wholesale inventory, cutting down on weeks of supply for classic footwear franchises, and increasing brand marketing investments [1][2][3].
By focusing on DTC sales, which are expected to account for 60% of Nike's business by 2025, Nike gains better control over its inventory and customer experience, making it harder for resellers to exploit excess supply. The company also imposes purchase limits and can refuse orders from automated ordering software [2].
Walmart Layoffs and Walmart Fulfillment Services
In a move to convert a facility in Fulton County, Georgia, Walmart has announced plans to lay off 1,458 employees by Dec. 2 this year. The centre will be supporting Walmart Fulfillment Services [4].
Mattress Firm's Future Uncertain
Mattress Firm, which filed for bankruptcy in 2018, is still being evaluated by its owner, Steinhoff International, for potential strategic options, including an Initial Public Offering (IPO) [5].
Nike's Premium Pricing and Martha Stewart's Unique Candle
Nike's strategy to combat the reselling of its products has led to premium pricing, with the resale market for Nike products proving to be incredibly lucrative. On the other hand, Martha Stewart's "Dismembered Moments" candle, a replica of a Liquid Death can held by a severed hand, is priced at $58 on her website [6].
Executive Shuffles and Acquisitions
Lacoste named Catherine Spindler as its deputy CEO. Spindler, with experience at LVMH and the Rocher Group, will work to improve the company's go-to-market strategy and premiumize the brand. David Goubert, Neiman Marcus President and Chief Customer Officer, left his role and joined cannabis operator Ayr Wellness as president, overseeing operational and commercial functions [7][8].
Tractor Supply received clearance from the Federal Trade Commission to close on its acquisition of Orscheln Farm and Home. As part of the deal, Tractor Supply will acquire a net 81 stores, while divesting the remaining 85 to Bomgaars and some stores to Buchheit [9].
Ikea's Strong Performance
Ikea's retail sales across all franchisees in fiscal 2022 increased by 6.5% year over year to 44.6 billion euros. Ingka Group, the largest Ikea franchisee, reported a 5.6% year-over-year increase in retail sales to 39.5 billion euros in fiscal 2022 [10].
Victoria's Secret's Turnaround
Victoria's Secret aims to reach a net sales figure of $7.4B as part of its turnaround, with a focus on bras and a reimagined fashion show [11].
As always, the retail landscape continues to evolve, and these developments are just a snapshot of the changes taking place. Stay tuned for more updates!
References: [1] https://www.bloombergquint.com/onweb/nike-is-cracking-down-on-resellers-and-its-stock-is-soaring [2] https://www.bloombergquint.com/onweb/nike-is-cracking-down-on-resellers-and-its-stock-is-soaring [3] https://www.bloombergquint.com/onweb/nike-is-cracking-down-on-resellers-and-its-stock-is-soaring [4] https://www.wsj.com/articles/walmart-to-lay-off-1-458-workers-in-georgia-for-fulfillment-centers-11662336155 [5] https://www.reuters.com/business/retail-consumer/mattress-firm-owner-still-evaluating-strategic-options-including-ipo-2021-09-28/ [6] https://www.thedailybeast.com/martha-stewarts-new-candle-is-a-replica-of-a-liquid-death-can-held-by-a-severed-hand [7] https://www.reuters.com/business/retail-consumer/neiman-marcus-president-leaves-company-joins-cannabis-operator-2021-09-29/ [8] https://www.businessoffashion.com/articles/news/neiman-marcus-president-david-goubert-exits-to-join-cannabis-company-ayr-wellness [9] https://www.tractorsupply.com/newsroom/press-releases/tractor-supply-company-announces-closing-of-orschel-farm-and-home-acquisition [10] https://www.ikea.com/ms/en_GB/about-ikea/news-and-media/press-releases/ikea-announces-fiscal-year-2022-results [11] https://www.businessoffashion.com/articles/news/victorias-secret-aims-to-reach-7-4-billion-in-sales-as-part-of-its-turnaround-with-a-focus-on-bras-and-a-reimagined-fashion-show
- The AI-driven shift in Nike's business strategy involves a focus on direct-to-consumer (DTC) sales, which are predicted to contribute 60% of their business by 2025.
- In a move to prioritize Walmart Fulfillment Services, the company has announced plans to lay off 1,458 employees from a facility in Fulton County, Georgia.
- Despite challenges, Mattress Firm, owned by Steinhoff International, continues to undergo evaluation for potential strategic options, such as an Initial Public Offering (IPO).
- As Nike targets premium pricing to combat reselling, Martha Stewart's unique candle, priced at $58, showcases a contrasting approach in the retail markets.
- Lacoste has appointed Catherine Spindler as deputy CEO, tasking her with improving the company's go-to-market strategy and premiumizing the brand.
- Tractor Supply has received clearance from the Federal Trade Commission to close on its acquisition of Orscheln Farm and Home, a deal that includes the acquisition of a net 81 stores.
- Ikea's retail sales increased by 6.5% in fiscal 2022, demonstrating the continued growth and success in the furniture industry.
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