Weekly Retail Roundup: Amazon's NYC expansion, Belk's 135th anniversary, and Vince's challenges
Amazon sets up shop in old Lord & Taylor building; Belk marks 135 years of existence.
Get ready for some retail news that'll make your week! Let's dive into the latest happenings and our thoughts on the retail landscape.
Building Up in NYC
Amazon has taken over the iconic Lord & Taylor building in NYC, previously purchased from WeWork in 2020 for a whopping $1.15 billion. After an extensive renovation, the brick and limestone building now stands as Amazon's new headquarters, accommodating over 2,000 employees and featuring 35,000 square feet of retail space on the ground floor. John Schoettler, Amazon's vice president of Global Real Estate and Facilities, stated, "It's been 3 1⁄2 years since we first acquired the Lord & Taylor building, and we feel honored to be a part of the journey restoring and reimagining the next phase of life for this historic piece of the city."
Belk Celebrates 135 Years
Department store stalwart Belk marked its 135th anniversary with a bang this week! Owned by Sycamore Partners since 2015, Belk now boasts nearly 300 locations in 16 Southeastern states. To celebrate, they plan to add 150 new brands to their existing merchandise lineup, including partnerships with Polo Ralph Lauren and Estee Lauder. Stores themselves will also undergo refreshes complete with new signage, valet parking, gift wrapping, and concierge services. While the celebration may have begun, the retailer still faces strains in a tough economic environment, as Moody's Investors Service warned earlier this year.
Vince Wades Through Challenges
Apparel brand Vince reported a 22.1% drop in Q2 sales year-over-year, with income from operations nearly tripling from a year ago. Wholesale sales dropped 22%, while direct-to-consumer sales decreased 3.7%. On a call with analysts, CEO Jack Schwefel shared, "We continued to navigate a challenging macro environment during the second quarter, which impacted both our direct-to-consumer and wholesale channels." Highlights include the acquisition of Vince's intellectual property by Authentic Brands Group this spring.
Retail Therapy
Pumpkin Mania!
Build-A-Bear announced a limited release of its 2008 Pumpkin Kitty toy as part of its Vault Collection. Fans immediately began begging for a re-release, with Pumpkin Kitty selling for inflated prices on eBay, ranging from $155 to $210.
Apple v. Pumpkin Spice
As we head into the cooler months, fall flavors like apple and pumpkin spice have made their return. Brands are embracing the seasonal trend in unexpected ways, from Grove Collaborative's limited edition Harvest Apple detergent sheets to Dude Wipes' pumpkin-spice scented flushable wipes.
Keeping an Eye On
Walmart Express Delivery Expansion
Walmart now offers same-day delivery for customers until 10 p.m., an extension from their previous 8 p.m. cutoff. This change comes in response to growing customer expectations for speed and convenience.
Deloitte's Holiday Sales Predictions
Deloitte is predicting holiday sales will grow by 3.5% this year, reaching anywhere between $1.54 trillion and $1.56 trillion. Online sales are expected to rise between 10.3% and 12.8%.
Stay tuned for more retail updates and cast your eyes on the future of retail therapy!
- The pandemic has brought a renewed focus on the environmental impact of the fashion-and-beauty industry, leading to more sustainable practices among retailers.
- Space has become a growing area of interest for tech giants, with Amazon exploring the development of broadband from space to provide internet connectivity globally.
- The weather has become a concern for farmers in many regions due to extreme weather events, impacting food-and-drink industries and driving up food prices.
- Labor disputes continue to stir conflicts within various retail industries, as employees demand fair wages and better working conditions.
- The AI boom has caused a shift in the retail landscape, with retailers starting to rely on AI-powered systems for inventory management, personalized shopping experiences, and sales projections.
- Trade tensions between nations have had a direct impact on businesses, with tariff increases causing retail prices to rise and stifling growth in some sectors.
- Finance experts are warning about the potential for a double-dip recession as economic projections remain uncertain due to the pandemic's ongoing effects on the global economy.
- In the face of these challenges, retailers are turning to innovative solutions such as omnichannel strategies, curbside pickup, and virtual fitting rooms to stay competitive.
- The home-and-garden industry has seen a boom during the pandemic, as people invest in remodeling projects to make their homes more comfortable and functional.
- Sports leagues are also feeling the impact of the pandemic, with several events being postponed or canceled, causing inconvenience for fans and financial losses for retailers.
- The retailer Taylor quickly adapted to the pandemic-induced shift towards online shopping, seeing a surge in its e-commerce sales as a result.
- A billion-dollar deal between two major retailers has been announced, promising to shake up the industry and reshape the competitive landscape.
- The war on unnecessary waste has reached the retail world, with some companies promoting their products as "flushable" only for them to clog plumbing systems and contribute to sewage issues.
- Shopping habits have evolved during the pandemic, with a major shift towards online shopping, but many consumers still express a desire to return to brick-and-mortar stores once it's safe to do so.
