Bloomingdale's’ Post

WHO IS ROSS DRESS FOR LESS? WHY DO WE HAVE TO LEARN FROM ROSS DRESS FOR LESS? --- * WHO IS ROSS DRESS FOR LESS? Ross Dress for Less, often simply called "Ross," is an American chain of discount department stores. Founded in 1982 in Pacifica, California, it operates under the official name Ross Stores, Inc. The store specializes in offering apparel, accessories, footwear, and home fashion at prices generally lower than other major department stores. The business model of Ross is based on the "off-price" retail concept, which involves selling high-quality merchandise at significantly lower prices than traditional retail. This is achieved through purchasing overstock and out-of-season goods from high-end retail chains and manufacturers, and then offering these products to consumers at a reduced cost. Ross has experienced significant growth and success, becoming one of the largest off-price retail chains in the United States. With over 1,500 stores across the country, it appeals to a broad demographic looking for quality products at affordable prices. * WHY DO WE HAVE TO LEARN FROM ROSS DRESS FOR LESS? 1. Efficient Supply Chain and Inventory Management 2. Strategic Store Placement 3. Cost-Effective Business Model 4. Adaptability 5. Customer Focus 6. Risk Management 7. And more at: https://lnkd.in/gDtm7YMq -------- Subscribe for more information at https://www.bizinsider.co/ #Biz #BizInsider #Casestudy #Newsletter #Mindset #Strategy #OperationalExcellence #LeanSixSigma"

Our October cover star is Donald Finlay, executive chair of Douglas & Grahame, who was honoured with the Lifetime Achievement Award at Drapers Independents Awards 2024. Also in the issue we highlight N Brown Group's award-winning "Embrace" strategy and Kurt Geiger CEO Neil Clifford describes how a “big, hairy, audacious goal to build a school” has led to a pipeline of new talent for the footwear brand. Subscribe now to read the entire issue. #magazine #fashionretail #fashionnews #digitaledition #subscribe

How interesting to note the strategy of Frasers Group in buying up and promptly closing down long-established fashion businesses did not catch the attention of the mainstream media, the British Fashion Council and many others until it happened to MATCHES a high-profile, media-friendly womenswear-slanted company based in London. Good to see the southern, "upmarket", women's bias is still alive and well in fashion. More than a year ago I highlighted the negative effect the inexorable rise of Frasers' FLANNELS fascia was having on independents in the premium menswear sector, which you can read here: https://lnkd.in/ezN-z-7t dominance-of-the-branded-menswear-market-is-bad-news-for-brands-and-customers/ The full story of how Frasers operates is yet to revealed. I have been told plenty of "dirty tricks" stories from people I know and trust, but they are all too scared to go on the record, don't want to get into a legal battle with the deep pockets of Frasers, or have signed non-disclosure agreements to get a payoff from the group, or just want to get on with their lives. Some, it has to be said, think Mike Ashley has played a blinder to achieve such a stranglehold on a fashion market sector. I still believe, fundamentally, the Flannels bubble will burst - but it might take longer than some people would like. In the meantime, who is left for them to buy and close down?

This month Drapers exclusively revealed that Frasers Group acquired five-store premium menswear independent JOHN ANTHONY for an undisclosed sum. Here, Drapers looks back at how Frasers Group continues its land grab in the premium branded market, and considers what it means for competitors, customers and brands. Read more here. #FrasersGroup #independent #retailnews #fashionnews

Denim is iconic… You can’t go wrong with it – trendy denim comes and goes, denim has up and down cycles, but at the heart of it – Denim is Americana! Levi Strauss & Co. is coming off of a successful Q2 – net income hit $18M, compared to Q2 LY at a loss of $2M. Inventory is down, margin is up, and both DTC and wholesale saw healthy growth. Recipe for further success! Its 501 style is a front runner - +16% in DTC. My sad Millennial heart still holds on tight to my skinny jeans but seems like the rest of the world has moved on – “loose fits” are up +21%! Levi’s says they are seeing growth in non-denim apparel. 70 new stores will open in the back half of the year bringing the total store count to 2,600 globally. #purchasingpower Levi's has built trust with the consumer in their bottoms' business. I would love to see the non-denim assortment expand to help drive UPTs and the potential for customers to come back more frequently. They can continue to use their core denim as the anchor while making storefronts and their homepage look fresh with a new assortment of tops; a different POV – compelling visual experiences. DTC should be part of the growth focus, but not at the expense of wholesale. Do you believe Levi’s will heed the lessons learned from other retailers swinging the pendulum too far? P.S. Pictured below is a pair of “vintage” 501s from the 90s that are listed on ebay. Are the 90s really considered vintage? I need to hear your thoughts! #denim #lifestyle #brand #apparel #retail #sales #dtc #wholesale #balance #inventory

“Our new store concept cements Foot Locker’s position as the leader in sneaker culture by offering an engaging, cutting-edge shopping experience for the sneaker passionate,” Foot Locker’s president and CEO Mary Dillon stated in a press release.  I spoke with Inside Retail US and Nicole Kirichanskaya and what this all means for the 👟 retailer. Some of my insights: Foot Locker is headed in the right direction with their ’store of the future’ strategy. In fact, it is long overdue. This strategy will put a spotlight on product obsessed sales associates, hyper-localized assortments as well as curated experiences. Rethinking the physical store will get Footlocker to take customer insights and inform product and store decisions based on location and community. This will make every store different and get customers excited about visiting the retailer. The sneaker industry has lost a lot of its luster. Brands like Nike and Under Armour are overstocked with SKUs, and adidas would have had a rough year if it wasn’t for the Samba. Additionally, there are more brands competing for market share. On and HOKA have taken the running community by storm. Brooks Running is focused on innovation and wholesale while PUMA Group and Reebok are relying on celebrities as creative directors to capture a new customer base. The hype around exclusivity and limited editions is not as exciting for consumers, and it will take a lot more than just the product to persuade shoppers to buy. Retailers like Footlocker have the upper hand if they reimagine the physical store as a destination for innovative and exciting experiences vs. focussing on pushing a handful of brands. It’s all about the customer and getting them to spend time in your store. Find the entire article here --> https://lnkd.in/ebzaEUam Shoutout to Neil Saunders and Marie Driscoll, CFA 🙌🏽 #retail #retailnews #footlocker #footwearnews #stores #cx #merchandising

I am unimpressed and disappointed in Nordstrom’s relaunch of its namesake brand while others are celebrating it! Que the press releases and news articles, but on Nordstrom.com you don’t see anything about the new collection until you get to 4th position on desktop – below “the fold” and almost missed it on mobile. Is this signifying importance? Nordstrom relaunches its namesake brand with a focus on premium fabrics and design details in women’s and men’s. “Our goal is to create an assortment of well-designed, style-led essentials and trend right must haves our customers expect from us,” Nina Barjesteh, president of the Nordstrom product group Most of the pieces are considered foundational pieces or wardrobe essentials focused on function and fit. Colors and patterns are meant to be mixed and matched. Colors are earth tones – to me – this all sounds like – we are putting a focus on product that is seasonless and has less of a liability. The apparel is complimented by footwear with simple hardware and more of a focus on quality. Again, no risk – it’s SAFE! There is nothing that screams to me you must have this! Size range is XXS – XXL. Not going higher is a mistake. Plus size women have money to spend on well made clothes. At the minimum, extended sizes should be offered online to gauge commercial viability. This comes after a disappointing Q4 with the full-line side of the business falling 3% while Rack gained 14.6%. 22 new Rack stores will be opening this year, but what about the full-line stores? At a time when department stores are hurting, something drastic needs to be done to evolve. Is going private really the answer? What makes this time different? It’s not just about cost savings, but how are they going to fundamentally change operations to evolve? Can they? Nordstrom, I’m a fan. I enjoy the experience created in stores and the customer service is outstanding, but you need to do better. This isn’t going to be what moves the needle! Call me – I’m here!

As it launches with Marks and Spencer and a preloved trial in London after a year of record sales, Johan Munck, CEO of Swedish childrenswear brand POP – formerly known as Polarn O. Pyret – tells Drapers about building a profitable resale model. Read more below. #PolarnOPyret #kidswear #preloved #fashionnews #resale #retailnews

'Mitch Hughes: Marks and Spencer’s menswear maestro' ... The man with a master plan for dominance in the menswear category Marks & Spencer's Menswear Director, Mitch Hughes, is orchestrating a strategic revival for the brand, aiming to bolster its position in the menswear market. The company's impressive financial rebound, with an 11.5% surge in clothing and home sales to £3.72bn for the year to 1 April 2023, sets the stage for Hughes' initiatives. Having successfully reclaimed the top spot in summer womenswear market share, M&S is now turning its focus to dominate the menswear category. Hughes' strategies for the upcoming year include a concentration on the smart casual category and enhancing the men's footwear offering. Overcoming the challenge of attracting more male shoppers, especially in the 40-to-54 age bracket, is at the forefront of Hughes' agenda. The stylish AW23 campaign aims to resonate with the target age group by featuring on-trend tonal overshirts, premium outerwear, and a diverse cast of models. Hughes emphasises the importance of an omnichannel approach, quick customer service, and a store strategy rollout to entice new consumers. Acknowledging the change in consumer preferences post-COVID, Hughes envisions a shift towards smart casual wear and cleaner-looking garments. M&S seeks to expand its reach into everyday wardrobes by offering a versatile and considered product range with attention on fit and tight colour palette. Despite the challenges posed by the cost of living crisis, Hughes remains committed to delivering value for cost per wear and multi-use garment options. The introduction of third-party brands and focus on men’s footwear showcase M&S's dedication to diversification and meeting evolving consumer demands. Overall, Marks & Spencer's recent performance and strategic direction, under the leadership of Mitch Hughes, suggest a brand successfully navigating challenges, adapting to changing consumer demands, and strategically positioning itself for sustained growth in the competitive menswear market.

EssilorLuxottica bought Supreme for $1.5B cash, or 3x revenue. Down from $2.1B paid by VF Corporation in 2020. Let's break it down... ---SELLER: Supreme--- • Streetwear brand of apparel, footwear, and accessories • Founded by James Jebbia in 1994 • Started as home of NYC skate culture • Digital-first biz model • 17 retail stores in US, Asia, Europe • Known for drop model and limited-run inventory ---SUPREME CAP TABLE HISTORY--- • The Carlyle Group and Goode Partners bought 50% in 2017 for $1B • VF bought Supreme in 2020 for $2.1 billion • Sales were growing at single digits YoY —SUPREME FINANCIALS: LTM Mar 2023— • $523M revenue • Down $38M YoY, or 7% • Missed $600M forecast • 20% of parent co VF’s EBIT ---BUYER: EssilorLuxottica--- • Global maker and distributor of eyewear • Founded 2018 via merger of Italian Luxottica w/ French Essilor • 150 brands incl Ray-Ban, Oakley, Lenscrafters, Sunglass Hut • Public on Euronext Paris Market ---EL FINANCIALS (in Euros)--- Stock performance as of 7.22 at 10:40am ET... • 197.15 share price • Mkt cap of 90B • Down 1% since 7.17 deal news • Up 9% YTD • Up 12% YoY FY 2023 YoY results per public filings (PE 12.31.23)... • Revenue up 7.1% to $25.4B, from $24.5B • Operating profit of 4.2B, up from 4.1B or 7.7% YoY • EBITDA of 6.1B, up 21M YoY • 2.4B in free cash flow • 2.6B in cash • 11.7B total debt (incl 3.2B lease liabilities) ---PARENT CO OF SELLER: VF Corp--- • Global maker of branded lifestyle apparel, footwear, accessories • Owned brands: Vans, The North Face, Timberland, Dickies • In midst of turnaround plan due to declining revenue, high debt • Public on NYSE • Founded 1899 ---VF CORP FINANCIALS--- Stock performance as of 7.22 at 10:13am ET... • $16.02 share price • Mkt cap of $6B • 17% uptick since 7.17 deal news • Down 14% YTD • Down 18% YoY FY 2024 YoY results per SEC filings (PE 3.30.24)... • Total revenue decreased 11% to $10.5B, from $11.6B • Total operating loss of ($34M), down from $328M profit • $139M net loss in cash and equivalents • $674M in cash • $5.7B in LT debt (incl $1B current portion) ---DEAL DETAILS--- • $1.5 billion in cash • Expected close by CY 2024 • Dilutive to VF’s EPS in 2025 • 2.8-3x LTM revenue multiple • 9x LTM EBIT multiple ---DEAL VALUE PROP--- • EL's first foray into apparel, TBD synergies w/ eyewear sales • Help EL target Gen Z via Supreme ecom platform, customer targeting data • Position Supreme alongside higher-end brands (80% of EL sales are luxury) • Distinct brand model of Supreme had limited synergies w/ VF’s integrated model • Deal proceeds will help VF pay down debt as part of turnaround plan ---WHAT ELSE I FIND INTERESTING--- I'll write more about deal in my Friday newsletter. To incl: digital-first biz models and valuation comps, streetwear trends, pros/cons of combining apparel + eyewear. --- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.