Neil Saunders’ Post

I am delighted to see that Macy's has terminated talks with Arkhouse and Brigade. The truth is that whatever problems Macy's has, they will not be solved by activist investors treating the business as an ATM and selling off real estate for short term gain. This sideshow has been a distraction for far too long and while Macy's has, quite rightly, participated and listened to the proposals, management must draw a line in the sand. I also think this action is taken from a position of growing confidence. No one should deny the amount of work Macy's still has to do (and the management team don't) but they have a much clearer vision and have taken some decisive actions to start putting things on the right track. Macy's deserves a chance to succeed and not be picked apart by those who do not have the company's retail interests at heart. #retail #retailnews #departmentstores #macys #investors

While the entire luxury market is soft, Burberry has been on a particularly painful losing streak. It is one of the few brands, along with Gucci, that has lost market share in luxury fashion compared to the pre-pandemic period. Burberry has tried to move itself upmarket, into a more exclusive position, but has done so in a rather schizophrenic and unconvincing way. It still relies heavily on mid-priced sales and discounting to drive volume, which is incompatible with the aspiration to move into a higher-priced space. There is also a sense that management is disconnected from the realities of consumer sentiment about the brand and its true position within the market. It is all very well having a new brand vision: but you need to take consumers with you on that journey. The result has been poor performance and a strategy that has failed to convince investors and wider stakeholders. Today’s change of management with Jonathan Akeroyd being replaced as CEO by Joshua Schulman is interesting. Schulman has an extremely firm grip on market realities and an intimate understanding of the luxury space. He also has experience in repositioning brands – such as Coach where, despite some painful moments, he delivered a successful turnaround. For the most part, Schulman’s playbook has been about accessible luxury: that fine middle-ground of avoiding ubiquity and cheapness while still allowing a broad base of consumers to buy into a brand. This is a strategy he is likely to use at Burberry and it marks a welcome step change from the unrealistic push to a more rarified and uber-luxury brand position.  I spoke to CNN about the change - link to article in the comments. #retail #retailnews #luxury #brands #management #fashion

Here are some interesting stories from the world of retail for Monday, July 15: 🧥 Burberry has replaced its CEO, Jonathan Akeroyd, with Joshua Schulman as it grapples with falling sales. The brand also expects earnings to suffer as a luxury industry downturn deepens. 📦 This year’s Prime Day comes as Amazon's investors already have a big cause to celebrate. Revived sales growth and an even more robust improvement to the bottom line have driven steady gains in the share price. 🚫 There were 346 companies that filed to either liquidate or re-organize through bankruptcy in the first six months of 2024. The majority of businesses that have gone belly up are in the consumer discretionary sector. 👗 Experts say SHEIN’s potential London listing puts the UK's Financial Conduct Authority under intense scrutiny as the Chinese firm has faced allegations of forced labour and questions over its environmental standards. 🔥 Gen Z heat seekers are leading a hot sauce boom. A majority of younger consumers count themselves as fans of the spicy condiments as food and beverage products embrace the heat. 🗽 Demand for prime retail space in Manhattan showed signs of slowing this spring, according to a recent CBRE report. The second quarter of 2024 saw a 9% decrease in leasing activity. 🖥️ Over the last few weeks, Dell, HP, Samsung, Lenovo and other PC makers released nearly a dozen new Windows laptops, all packing AI processors and features. 🌭 New York City’s minimum-wage hike has boosted pay for food-delivery workers who have managed to hang onto their jobs, but thousands have lost work. 👨🏻⚖️ A New York federal judge has ordered Amazon to comply with a subpoena from a US civil rights agency investigating claims that the online retailer discriminated against pregnant warehouse workers. 🚛  Sales of Kei trucks in the US have tripled in the last five years. Measuring about half the length of a Ford F-150, Kei trucks look almost like toys in comparison to a standard pickup truck. 👮🏽The UK government is expected to change the law to make assaulting retail workers a crime, with assaulting, threatening or abusing a retail worker set to be made a standalone statutory offense. 🚁 In a pioneering move, drones are now being used to transport Wushan crispy plums from remote farms to the local airport in Chongqing, significantly reducing delivery times to within 24 hours. 🧴 Haircare brand Olaplex hs named Katie Catherine Dunleavy as chief financial officer and operating chief, and Katie Gohman as chief marketing officer. #retail #retailnews #economy #DailyRetailNews