Javier Pérez Álvarez’s Post

No two brands are the same, no two strategies will work for everyone. No theory or instrument of technology works for every brand the same. No merchandising, marketing, buying or supply chain principles can help a brand that is not properly connected with the market. If you had a dollar for very idea chased because it looks good, feels good you would have millions. The biggest hurdle for a brand is to simply belong and have a place in the minds and hearts of consumers. It’s not easy and that’s why so few occupy the number one, two or three market positions in all industries. But there is room for a lot of retailers the key is to being trusted and consistent in product, service and communication. However, if it’s number 1,2 or 3 you want to play in you will have to work a lot harder. However, we all need to be aware it is going to get much tougher to stay in business, the 50-60% that live paycheck to paycheck and debt, they are looking for value. Another 20% are fundamentally able to live a little bit better and can spend more. The other 20% can be broken down into financially sound, wealthy and wealthier the latter being the top 1%. The numbers will change but not how you think. That 60% may become 70% you see what this last run with inflation has done its created a bigger gap with affordability. And it is a global phenomenon. I am former C level executive, current board chair, advisor, investor and public speaker. I enjoy helping businesses and leaders improve their potential to win in the marketplace. I bring real world experience to the table. #retailing #strategy #ceo #technology #innovaiton #economy

👖 Superdry Founder Julian Dunkerton in Talks with Davidson Kempner Capital Management for Potential Rescue - Julian Dunkerton, founder of Superdry, engages in early-stage talks with US private equity firm Davidson Kempner for a potential rescue of the struggling fashion retailer. - No firm commitment from Davidson Kempner at this point, as discussions are underway, according to reports from SkyNews Inc. - Davidson Kempner, owner of Oak Furnitureland, joins a list of potential suitors exploring Dunkerton's proposals as he seeks to rejuvenate Superdry. - Other interested parties include Retail Realisation, backed by the founder of turnaround investor Rcapital. - Superdry's confirmation of ongoing discussions with various parties earlier this month led to a 100% surge in shares. - The fashion brand contemplates a major restructuring, potentially involving store closures and job cuts, amid financial troubles. - Superdry collaborates with PwC to explore a turnaround plan, considering options like a company voluntary arrangement (CVA). - Established by Dunkerton in 2003, Superdry, with 98 stores across the UK, faces challenges with weak sales, blaming a 23.5% revenue drop on excessive rain in the previous half-year period. - The competitive market, coupled with consumer spending constraints due to high inflation, poses challenges for retailers like Superdry. - Dunkerton, who returned to Superdry in 2019 after being ousted, currently holds approximately 26% of the company's shares.

“Myer will transform from a department store to a $1 billion retailer owning the Just Jeans, Jay Jays and Dotti clothing brands after agreeing to merge with parts of billionaire Solomon Lew’s Premer Investments business. The deal will hand Mr Lew about 30 per cent of the bigger Myer, and leave Premier Investments focused on growing its Peter Alexander sleepwear and Smiggle stationery brands, which have been booming recently. The enlarged Myer group is expected to produce more than $4 billion in annual sales and $250 million in earnings.” I like the Morningstar appraiasal as follows “It's combining two mature low-growth businesses here. Myer benfits to some degree on scale efficiencies coming out of the overhead costs by having a larger scale and probably more bargaining with their suppliers and possibly the landlords as well. The other thing too is that it gives Myer a much larger network they will have to oversee. It's more complex network than their departmental network as it is now. And also, it gives them a foothold in New Zealand, which might be an opportunity, but also creates other sort of administrative challenges there. So, overall, it looks like something that's early stages. , it's quite hard to make a judgment” And my initail thoughts Oh and a 6.25 percent ebit with such a large proportion of specialty retail might not inspire investors delight - especially if these mature brands aren’t up for increasingly vigorous competition, Myer at 23 percent online and Premier probably half that in the older brands - is also interesting, Oh and Solly leaves his two rockets in the garage and controls Myer , and great faith in the Myer loyalty program, Watch the $1.00 Myer share price - can only increase under Solly, Oh and above all , this is the commencement in our opinion to the end of department stores as we have known them and this could be the ideal launch pad for the brand of Myer into a brave new retail world - elegantly and to the future evolving the brand away from classic Department store retail formats with little relative fanfare , Retail Doctor Group Brian Walker

United States $5.1 billion fashion retail & e-commerce group Macy’s rejects $5.8 billion cash offer by investment firms Arkhouse Management & Brigade Capital Management. Concerns over lack of compelling value in acquisition proposal and questions over Arkhouse & Brigade financing abilityto acquire Macy’s. Read - https://lnkd.in/gqZE62A7 follow Caproasia | Driving the future of Asia United States fashion retail & e-commerce group Macy’s (25/1/24: $5.1 billion market value) has rejected a $5.8 billion cash offer by investment firms Arkhouse Management & Brigade Capital Management received on 1st December 2023, with Macy’s citing concerns over lack of compelling value in acquisition proposal and questions over Arkhouse & Brigade financing abilityto acquire Macy’s.  Announcement: “After consultation with our advisors, the Board continues to have serious reservations about your ability to finance your non-binding proposal. As an initial matter, the proposed financing plan remains entirely uncommitted and your “highly confident letter” is subject to numerous non-standard preconditions. Even were it to be less conditional, based upon advice from our advisors, we have significant concerns about the viability of the structure of your financing plan. For example, the Board has been advised that your proposed cash equity contribution of only 25% of the required capital is well below current market levels for similar transactions, and consequently, your proposed overall leverage is well in excess of what could likely be achieved in today’s marketplace and sustainable for a company in our sector. Based upon advice the Board has received, we believe that this quantum of indebtedness, as well as your reliance on a large amount of payment-in-kind securities, make it highly unlikely that your proposed financing structure could be successfully executed.  Given our concerns, which have not been addressed since my December 14, 2023 letter, as well as the lack of compelling value in your non-binding proposal, the Board does not see a basis to enter into a non-disclosure agreement or provide any due diligence information in response to your proposal. Such an exercise would unnecessarily distract our management team as it continues to drive value for shareholders through execution of our business strategy and value creation levers.  Should you have anything new to share, we continue to be open to opportunities that are in the best interests of Macy’s, Inc. and all of our shareholders.”

🚀 Future of Retail Why 2023 was the year of the retail fire sale Aron Bohlig, Managing Partner, shared his deep dive and thoughts in a story on retail dealmaking in 2023, in Modern Retail. 💡 Key Insights: - Persistent trend of robust M&A across CPG and cosmetics brands can be attributed to their scalability and large addressable markets they cater to - In an environment characterized by high interest rates, D2C fashion brands, and consumer services have faced challenges - Investors in the equity market have exhibited reluctance towards discretionary non-consumable goods - These firms may go through bankruptcy and be sold at a discount #mergersandacquisitions #funding #retailsoftware Read the complete article here: https://lnkd.in/g_BG2Z3t

🌟 Celebrating Success: Next, a brand often described by many as "ordinary" with a Brilliant Business Model! 🌟 I've had the pleasure of working with Next for years, and their success story in these turbulent times is a testament to their unwavering vision and strategic investments. Here are some key takeaways from the Economist article that resonated with me: 🚚 Focus on operational excellence: Next has poured resources into logistics and technology, building a strong in-house infrastructure for its website, stock allocation, and other core operations (including some of the most efficient marketplace solutions for 3rd party Brands). This focus on efficiency has led to faster delivery times and a significant reduction in late deliveries. 🖥 Embracing digital transformation: Next's online sales have skyrocketed, with over half of their purchases now happening online. They've also invested heavily in automation, extending their next-day delivery cut-off time and streamlining fulfillment processes. By embracing new channels (their own and other marketplaces) and even collaborating with competitors to boost traffic and conversion rates, they've demonstrated a forward-thinking approach that sets them apart in the industry. 👨💻 Building a tech platform: Next's expertise extends beyond retail. They offer their back-end operations software to other retailers, similar to how Ocado provides fulfillment services for online grocers. Success isn't always about flashy headlines or overnight sensations. Next's story highlights the importance of a long-term vision, sticking to your vision, operational efficiency, and continuous digital investment. By focusing on these aspects, they've transformed themselves from a traditional retailer into a thriving conglomerate, all while staying true to their core customer base. HUGE CONGRATS! Here's to Next and their inspiring success story! 🚀 #Next #retail #ecommerce #businessstrategy #innovation #RetailExcellence

💡What is the ideal inventory for a brand? 🛒In the past year alone, I've written $20M in purchase orders across various apparel and home brands brands. Previously, I managed the P&L for $500M businesses. Wondering what constitutes the perfect inventory for your brand? 🔄Aim for a turnover rate of 2.5x annually. However, the ideal figure can hinge on factors like your supply chain's agility, lead times, and product assortment, product type, and lifespan of products. Remember: excess inventory isn't just bulky, it's also chipping away at your cash flow and your ability to invest in new product. 💸 How does your inventory measure up? #retail #ecommerce #dtc #d2cbrands #entrepreneurship #shopify

"It has been a long time since we started a year in a more positive frame of mind. Last year was much better than we anticipated.... and the Group has delivered its highest ever levels of revenue and profit... we enter the year with new avenues of growth.. with a cost base that feels under control".   Like a trade update from bygone times, but Next again bucks the market. Grp sls £5.84bn, PBT clearing £1bn and EPS at 606.3p +5%. Greater than any Management Consultancy, the Chief Executive's Annual Update is always a remarkably detailed insight into what should be being considered, planned and executed in any consumer facing business, providing insight into the forces that are dictating the scale, cadence and diversity of change in the industry.  But this years’ update feels different.  More introspective – looking at 20 “glorious” years up to 2017 and 7 “leaner”(!?) ones since, but also more confident, talking of the “strength” of the brand, the “exceptional” infrastructure, the “rigorous” financial discipline. It reflects a business at a major inflection point, where work to build a platform ecosystem is near complete and ready to accelerate the business. “We were ..contacted by a senior ‘strategy’ consultant, who explained to me that his (very grand) consultancy were experts in the specification and development of retail technology and software. I stopped him and said, “that this was an amazing coincidence, so were we, can we help you?”   Their big picture summary supports this:  - a product proposition that is rock solid (“It is hard to think of a year when we have delivered more consistently across all our product ranges”) and looking to elevate upwards; - their partnerships with other brands, in multifaceted ways, grows still greater. (Loving the “SmAllSaints collab).   - store base and occupancy costs now rebased (renewals saw a 30% cost reduction and with terms of only 3.9 years); - solid international growth: through international D2C sales, with a fulfilment centre now in UAE; strong aggregator partnerships; and the desire for wholesale and franchise partners in APAC, Australia and Americas (Nordstrom already penned). - their Total Platform (TP) for 3rd parties is, 3 years in, delivering 8% of total profit, with the infrastructure and synergies to grow exponentially beyond Reiss, FatFace etc, and now the new Total Enterprise Platform, all the power of TP with a PMS and accountancy tools with it! There are 1 or 2 bum notes, Joules is still losing money, but overall a remarkable and transparent update. Why so transparent? I think it's that they know that this has comes from decades of steady, incremental development, impossible for the competition to copy or emulate. It also reads as a prospectus for the rest of retail to get on board with them - and God knows there are quite a few brands waiting for that train. https://lnkd.in/eX2JeRgg

3 Traps on the Way to Becoming a Customer-Centric Company https://lnkd.in/gM6a9GbR #jobplex #dhr #retailleadership #consumerproducts #sales #customerfocused #market #customerexperience #retail #entrepreneurship #strategy #merchandising #globalbrands

The Emerging Brand CPG "Big Squeeze" is on. And it could get worse if brands are not proactive and prepared. Mapping realistic pathways to profitability, even pathways that are defensive in nature, given the tough shopping environment is a must.   If, for example, a CPG brand with typical gross margins, is currently exhibiting an operating margin of about 5%...volume would need to increase at nearly twice the rate of an equivalent price increase to achieve the same level of operating profit improvement. So what happens when you have to decrease your price on shelf by 15%? The brand would have to increase the amount of cases it sells by 40% to maintain the same level of profitability as before. Or if the brand can simultaneously reduce both COGS per case and operating expenses by 10%, then it only needs to be able to sell just over 12% more cases to maintain the same levels of profitability. Doable? Absolutely. But it also depends on the current levels of a brand's gross profit, contribution margin and operating expenses. A good start is to understand the specific unit economic and velocity dynamics within various channels so that the brand can make the best pricing, velocity, distribution and cost trade-offs. https://lnkd.in/gFCb3BwJ? #cpg #emergingbrands #entrepreneurship #pricing #margins #velocity