Hey Friends,
What’s the saying…..Everything old is new again? J.Crew is reviving its iconic catalog this fall, hoping to capitalize on nostalgia as the retailer rebounds from a difficult decade, including a 2020 bankruptcy. The catalog, which was a staple for 30 years before being discontinued in 2017, will return with added editorial content, including an interview with actress Demi Moore about her vintage J.Crew collection. The company is on track for $3 billion in sales this year. J.Crew joins other brands, like Amazon, in adopting old-school marketing strategies, such as mailing catalogs.
We’ll start with some technology news….Allbirds, a global footwear brand, recently expanded its RFID technology deployment to four UK stores, following a successful rollout across 40 U.S. stores in 2023. This initiative, in collaboration with Sensormatic Solutions, significantly improved inventory accuracy from 60% to 98%, enabling Allbirds to offer omnichannel sales and ship-from-store services. The technology enhances the shopping experience, reduces excess inventory, and simplifies the work of store associates. RFID tags are applied to shoes during manufacturing, making inventory counts more efficient. Looking ahead, Allbirds plans to explore further RFID applications, such as loss prevention and material tracking for sustainability purposes.
Target recently launched its Drive Up service through Apple CarPlay. This allows customers to place orders via the Target app and get notified when they are near the store, making order pickups easier without leaving the vehicle. The service simplifies the curbside experience directly through the in-dash display. McDonald’s and Starbucks are also part of the broader connected-car ecosystem, enabling easy access to their services through CarPlay. Users can locate restaurants, place orders, and navigate effortlessly from their car’s dashboard.
Nvidia's market value plummeted by $279 billion in a single session, marking the largest one-day loss in U.S. history, following reports that the company received subpoenas from the Justice Department as part of an antitrust investigation. The probe, which includes other tech companies, is examining whether Nvidia is restricting competition by making it difficult for buyers to switch to other suppliers and penalizing those that don't exclusively use its chips. The investigation comes as AI technology faces increased government scrutiny. Nvidia's recent quarterly forecast also fell short of investors' high expectations, contributing to the broader market selloff.
Alphabet Inc.’s Google is returning to court to face allegations from the U.S. Department of Justice (DOJ) that it manipulates the $677 billion display advertising market, violating antitrust laws. This comes shortly after a separate ruling found that Google dominates online search illegally. The DOJ, along with eight states, accuses Google of acquiring key tools for buying, selling, and serving internet ads, giving it control over ad technologies and harming both publishers and advertisers.
Amazon is expanding its Just Walk Out frictionless checkout technology to 10 more on-campus convenience stores, bringing the global total to over 30 stores across three countries. This technology allows customers to scan a credit card upon entry, select items, and leave, with charges automatically applied and a receipt emailed. This expansion includes updates to Amazon's AI model, improving its ability to track customer actions. Although broader adoption in convenience stores is slow, campus stores, which can operate 24/7, are increasingly using the technology.
The Nordstrom family, led by CEO Erik Nordstrom and Executive VP Pete Nordstrom, has offered $3.8 billion to take the company private at $23 per share. This move comes as department stores face challenges from changing shopping trends, inflation, and declining mall traffic. Despite its strong reputation and premium locations, Nordstrom has struggled, particularly with its off-price business, Nordstrom Rack. The offer, which requires shareholder approval, reflects broader industry pressures, with other major retailers like Macy's and Saks Fifth Avenue also adjusting through consolidations and store closures.
NFL opening weekend was this past weekend, including a game between the Eagles and Packers in Brazil, where Fanatics is setting up six pop-up "NFL Shop" stores in São Paulo and Rio de Janeiro, including four in airports. The stores will offer event-specific merchandise and items from various NFL teams and licensees, remaining open until October. Additionally, there will be an apparel collaboration with Brazilian pop star Anitta, the game's halftime performer. Five merch stores will be at Corinthians Arena, where the game will be held, along with another store at the NFL Fan Fest in Parque Villa Lobos.
The Kansas City vs. Baltimore opening night game on Thursday, drew 28.9M viewers (up 5% from the year prior) and drew a 37 share on NBC. The share is the percentage of all television sets at a given time watching the program.
Rite Aid has emerged from bankruptcy, reducing its debt by approximately $2 billion and securing $2.5 billion in exit financing. The company will now operate as a private entity under new CEO Matt Schroeder, who has been with Rite Aid for over 20 years and previously served as CFO. Schroeder is the fourth CEO since early 2023, following leadership changes during the company's Chapter 11 process. Rite Aid, which filed for bankruptcy last October after failed merger attempts, has closed hundreds of stores and aims to move forward with a more efficient operating model, reduced debt, and additional financial resources.
Mango is expanding its e-commerce operations to 12 new countries, increasing its global presence to over 120 markets. The new countries include Angola, Belize, Brunei, New Zealand, and others. Additionally, Mango has appointed Marlies Hersbach as its new e-commerce executive director. Hersbach, previously the international retail director for France, will oversee the company's online business strategy. This expansion and leadership change are part of Mango's broader plan to reach over 4 billion euros in revenue by 2026. According to Retail Dive, last year the company’s e-commerce arm brought in more than 1 billion euros for the first time, comprising 33% of Mango’s overall revenue.
Walmart is partnering with StockX to expand its marketplace offerings by including coveted, pre-verified sneakers. This marks StockX’s first strategic sales channel on a marketplace, as confirmed by Walmart. The initial product lineup on Walmart.com, launching next week, will feature popular sneakers like Nike Jordan 1s, Jordan 4s, Travis Scott Jordans, New Balance, and Asics. StockX, known for its real-time bidding platform for shoes, apparel, electronics, and collectibles, allows anonymous buyer-seller transactions, with products verified as new. Walmart executive Manish Joneja expects the broadened assortment to attract more buyers. The partnership will officially launch on Tuesday.
Grand openings, grand closing……
LL Flooring, formerly known as Lumber Liquidators, is closing all its stores after three decades in business. The flooring retailer, one of the largest in the U.S., filed for bankruptcy and sought a buyer but was unsuccessful. Earlier this year, it operated 442 stores and closed nearly 100 in an effort to cut costs and attract investors. In a letter to customers, the company announced the decision to wind down operations and close all locations. Remaining stores will hold closing sales for about 12 weeks, with around 2,000 employees losing their jobs.
Academy Sports + Outdoors will continue its robust retail expansion plan with the opening of nine new store locations across eight states this fall. The store openings are in line with Academy’s goal to open between 15 and 17 new stores by the end of fiscal 2024. Thus far this year, Academy has opened three new stores.
Macy's announced during its second-quarter earnings call that it plans to close 150 stores over the next few years. For 2024, the retailer will shutter 55 stores, slightly more than the 50 originally projected. CEO Tony Spring expressed satisfaction with the progress of store closures, stating the company is on track to meet its goals.
Arc'teryx has opened its largest store, a 14,164-square-foot, two-level flagship location at 580 Broadway in New York City. This flagship store offers the most comprehensive range of both new and refurbished products, including the brand's first in-store offering of pre-owned items under the Regear program. To mark the opening, special events include free coffee at the store's A-Frame café and a one-day customization experience at the Rebird service center, which is modeled after the company’s Canadian manufacturing facility and provides repair services, product education, and technical washing. Arc’teryx opened 23 stores last year with plans for 30 in 2024.
New York has enacted the Retail Worker Safety Act, requiring major retail stores to install "panic buttons" to enhance employee safety. The law, signed by Governor Kathy Hochul, takes effect on March 1, 2025, and mandates that panic buttons be operational by January 1, 2027. This requirement targets large retailers, including Walmart, Target, and Costco. It follows a rise in violence and threats against retail workers, including mass shootings like the 2022 Buffalo supermarket attack. While California also has a similar law, New York's version specifically requires panic buttons for worker protection.
That’s all folks…Have a great week.