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As consumer confidence feels the pinch of economic instability and geopolitical unrest, the reality check for local retailers has been hard to digest. The performance of e-commerce operations has been sluggish. Luxury brands’ direct retail strategies have reduced independent stores’ access to marquee names. The discount policies of online retailers have come at the detriment of small — and often brick-and-mortar — entrepreneurship. How can the multibrand retail formula forge ahead? 

#GodfreyPhillips Rumored to Sell #24Seven Stores: What Lies Ahead? In the world of business, rumors can often set the stage for significant shifts, and the recent buzz surrounding Godfrey Phillips India potentially selling its chain of 24Seven convenience stores has certainly caught the attention of many industry observers. While neither Godfrey Phillips nor 24Seven Stores have made any official announcements regarding this matter, the speculation alone raises questions about the future landscape of both companies and the broader retail sector. Godfrey Phillips India, known primarily for its #tobacco products, ventured into the retail sector with the launch of 24Seven Stores. These #convenience stores quickly gained popularity for their 24/7 #operations, offering a wide range of products, including #groceries, #snacks, #beverages, and more. The chain expanded steadily, becoming a familiar sight in several cities across India. The Rumors: Reports circulating in business circles suggest that Godfrey Phillips may be exploring options to divest its stake in 24Seven Stores. While the reasons behind this potential move remain speculative, industry analysts point to various factors that could be influencing the decision. Possible Reasons for the Sale: Strategic Focus: Godfrey Phillips might be looking to refocus its efforts and resources on its core tobacco business, which has been its primary revenue driver for years. Market Dynamics: The retail landscape in India is evolving rapidly, with increasing competition from both traditional brick-and-mortar stores and online retailers. Exiting the retail sector could be a strategic decision in response to these market dynamics. Financial Considerations: Selling off non-core assets like 24Seven Stores could provide Godfrey Phillips with additional liquidity, which could be reinvested in areas that offer higher growth potential or better returns. Potential Impact: If the rumors of Godfrey Phillips selling 24Seven Stores turn out to be true, the move could have several implications for both companies and the wider retail industry: New Ownership: A change in ownership could bring about strategic shifts in the direction and operations of 24Seven Stores. Depending on the buyer, we might see changes in store formats, product offerings, or expansion plans. Competitive Landscape: The sale of 24Seven Stores could reshape the competitive dynamics within the convenience store segment, potentially creating opportunities for other players to expand their footprint or gain market share. Employee Concerns: Uncertainty surrounding the future ownership of 24Seven Stores may lead to concerns among employees regarding job security and organizational stability. Source : https://lnkd.in/g83zVvuY

Here are some interesting stories from the world of retail for Thursday, August 8: 👔 Ralph Lauren shares rose 4.3% premarket Wednesday after the apparel and accessories maker reported better-than-expected first-quarter revenue and earnings, boosted by growth in Europe and Asia. 🏢 Over a million square feet of retail space is empty in vacant chain-drugstore locations across New York City. Ironclad leases and the difficulty of finding new tenants for the sprawling spaces makes the vacancies hard to fill. ⛰️ With an offer of $5 million, UK-based outdoor and sports gear retailer Mountain Warehouse has emerged as the stalking horse bidder for Eastern Mountain Sports’ intellectual property. 💵 US consumers are reining in spending on travel and leisure, hitting businesses including Disney theme parks, Airbnb home rentals and Hilton hotels as questions grow about the health of the economy. 🛒 Costco Wholesale sales for July came in at $19.26 billion, a 7.1% year-over-year gain. Same-store sales rose 5.3% in the U.S., 6.3% in Canada and 3.7% elsewhere internationally. E-commerce sales were up 20.2%. 🏥 CVS Health’s Medicare business continued to struggle in the second quarter, fueling yet another cut to its full-year earnings outlook, a new $2 billion cost-cutting plan and the departure of a top executive. 👗 “Wardrobing,” in which a shopper buys an expensive item, wears it with the tags on, and then returns the item for a refund, picks up as shoppers bolster their closets for summer vacations. 🐶 Fashion house Dolce & Gabbana has launched a new alcohol-free perfume for dogs called Fefé in honor of Domenico Dolce's poodle, but not all vets and pet owners agree it's safe or appropriate. 🧴 Indicating steady demand for high-end beauty products, US prestige beauty sales rose 8% year-over-year to $15.3 billion in the first half of this year. The strongest growth was in prestige fragrance, which saw sales rise 12%. 🚪 ThredUp will exit Europe and is exploring strategic alternatives for Bulgaria-based Remix, a secondhand apparel company it acquired in 2021 for around $28 million. 🗳️ As inflation fury lingers, politicians join customers in pushing companies to cut prices. Promising to tackle higher everyday costs is a safe bet during contentious times, particularly for politicians in swing states. 🥩 Beyond Meat on Wednesday reported better-than-expected sales in the second quarter despite continuing weak demand for its plant-based burgers, chicken and other products. 🚢 Retailers are urging parties to return to the negotiation table to avoid a potential strike that could disrupt operations at 36 ports on the US East and Gulf Coasts as the peak holiday season approaches. 🪪 Costco Wholesale is implementing stricter policies and cracking down on non-members using other people’s cards by requiring shoppers to scan their membership cards to enter stores. #retail #retailnews #economy #DailyRetailNews

Retailers have played an important role in the DAVID GOTLIB journey. And it’s an important lesson for new and upcoming luxury brands: When I first started the business we were mainly focused on our own online Webshop. Retail was more of an afterthought. We weren’t proactively looking to invest in it unless an opportunity came our way. But as I began to dive deeper into the industry and learn more about it, it became clear that as a luxury brand owner, you can’t ignore Retail. Not everyone will just go online and buy your products. Some people want to see your products in real-life. They want to feel your products. Try them on. See how they look in the mirror. Of course there are plenty of other benefits to partnering with Retailers - it will boost your Brand awareness and credibility which are key. But most importantly if you’re selling a luxury product you need to give your customers the opportunity to come and discover them in stores. My Retail partners have told me many times that when a customer asks one of the store assistants to try on one of our cufflink pairs on a shirt, nine times out of ten they go on to buy it because they fall in love with the pair when they see it on their sleeve. So my advice to anyone starting out on their own luxury brand journey, don’t neglect Retail. Look to invest in that channel early on as it will accelerate your brand’s growth. You can discover the DAVID GOTLIB cufflink collection in stores in Antwerp, Berlin, Tokyo,Geneva,Vegas,Houston,Paris,… as well as online at www.DavidGotlib.com

Dinesh Malpani Interesting insights on DMart - Avenue Supermarts Ltd. While there are areas for improvement, their success in building a profitable grocery business in India's modern trade is commendable. Their ability to crack the code of sourcing, pricing, and assortment in the FMCG category is admirable. However, I agree that there are opportunities for them to expand and improve in other categories. Calculative risks can indeed lead to growth and success, but it's important to strike a balance between being aggressive and ensuring long-term sustainability. It will be exciting to see how they evolve and seize opportunities for growth in the future.

What’s been happening in retail this week? · 👏 Well done Marks and Spencer's. The retailer saw total sales rise 9.4% to £13bn and a pre-tax profit increase to £672.5m YE 30 March. Food sales up 13%, and clothing & home sales grew by 5.3%. Despite an adjusted loss in the Ocado Retail venture of £37.3m, M&S's commitment to value and quality drove 12 consecutive quarters of growth. · Temu owner PDD Holdings reported a 131% revenue increase to ¥86bn (£9.3bn) and a 275% rise in operating profit to ¥26bn (£2.8bn) for the first quarter to 31 March. Marketing expenses grew 44% to ¥23bn (£2.5bn). · SHEIN is in talks to appoint former Chancellor Sajid Javid ahead of its potential London IPO. The IPO could value Shein at around £50bn, following regulatory challenges for a New York listing. · Hotel Chocolat will open 20 new stores in the next 18 months. Additionally, Hotel Chocolat plans to expand its online presence through TikTok Shop and launch an SMS marketing service in July to engage younger shoppers. · Sainsbury's partnered with Microsoft to enhance its AI and machine learning capabilities. This five-year strategic collaboration aims to boost efficiency and customer experience by integrating AI across store operations and digital platforms. This partnership is expected to drive growth, improve service, and deliver stronger returns for shareholders. · eBay returned as the headline sponsor for Love Island's latest season, marking its fifth series with ITV. The partnership includes a curated selection of pre-loved fashion, sneakers, and items from eBay’s Imperfects range. Viewers can shop villa looks via a dedicated Love Island fashion hub on eBay's website. · VictorianPlumbing.co.uk acquired rival Victoria Plum for £22.5m. The company plans to trade Victoria Plum as normal initially while finalising an integration plan. · Superdry is preparing for an emergency sale if creditors reject Julian Dunkerton's restructuring plan. The plan involves significant rent cuts, delisting from the London Stock Exchange, and Dunkerton investing between £8m and £10m of his own funds. If the plan is not approved, a four-week sale process could lead to pre-pack administration. · Kingfisher plc reported a 0.3% (reported basis) sales decline to £3.3bn in its first quarter to 30 April. UK and Ireland saw a 1.2% like-for-like sales increase, led by Screwfix's 2.4% rise. This was aligned to expectations against a very challenging home improvement market. CEO Thierry Garnier highlighted resilience in core categories and significant e-commerce growth, with plans to maintain full-year guidance. This is just a selection of news this week. Sign up below for more insight ⬇️ https://lnkd.in/d-z25aM · 🔊 WEBINAR ALERT - I'll be presenting at our webinar on 4 June at 12pm Outlook for 2024 & Beyond: Retail Prospects & Shifts in Consumer Affluence in partnership with beBettor Sign up here ➡ https://lnkd.in/eBfhA9Xb

Here are 9 brick-and-mortar retailers generating more than 20% ROIC: 1. Winmark (NASDAQ: WINA) Winmark is a franchisor of 5 different resale brands including Play It Again Sports, Plato's Closet, & Once Upon a Child. With minimal capital expenditures required, Winmark generates substantially higher margins than peers. 10-year Avg. ROIC = 101.8% 2. Lululemon (NASDAQ: LULU) Lululemon has been a pioneer of the "athleisure" space. By flexing its pricing power & successfully entering into new markets (men's), Lululemon has been able to consistently improve its per-store economics. 10-year Avg. ROIC = 42.1% 3. Ross Stores (NASDAQ: ROST) Ross acquires merchandise cheaply through department store overstocks & manufacturer's excess inventory then provides a no-frills, treasure hunt experience for customers. This enables Ross to earn operating margins above 10%. 10-year Avg. ROIC = 37% 4. Home Depot (NYSE: HD) Home Depot's economies of scale & warehouse-style shopping experience enables them to source & stock at a lower cost than peers. Its consistent improvement in store efficiency has driven increased profits while requiring little CapEx. 10-year Avg. ROIC = 31% 5. Autozone (NYSE: AZO) Autozone is the leading US retailer of auto parts & accessories. In addition to economies of scale, Autozone has experienced increased customer visits across its store-base thanks to the growing number of cars on the road. 10-year Avg. ROIC = 30% 6. O'Reilly Automotive (NASDAQ: ORLY) O'Reilly is the 2nd largest auto parts & accessories retailer. Beyond the same tailwinds that have helped Autozone, customer visits are often time-sensitive & critical. This has left them immune to online competition. 10-year Avg. ROIC = 26.1% 7. Ulta Beauty (NASDAQ: ULTA) Without any obvious advantage, Ulta has become the leading beauty retailer in the US. Between a combination of overall category growth, successful e-commerce offerings, & a growing rewards base, Ulta has grown its EPS rapidly. 10-year Avg. ROIC = 25.7% 8. Tractor Supply Co (NASDAQ: TSCO) Tractor Supply is the leading rural lifestyle retailer. Over the last decade, they've experienced a demographic tailwind. People are moving to rural areas at an increasing rate, providing a growing customer base for TSCO. 10-year Avg. ROIC = 23.8% 9. Hibbett (NASDAQ: HIBB) Hibbett operates small-box stores in underserved locations that primarily sell sneakers. Its small town model makes it difficult for partner brands like Nike to go direct-to-consumer in their markets. 10-year Avg. ROIC = 20.7%

https://lnkd.in/ewtgYWpE After leaving the B2B sector, Birkenstock embarked on a new path by introducing their exclusive stores and prioritizing their online retail channel, ultimately catapulting the company into the stock market. How successful has Birkenstock been since undergoing this transformation?

Digital Brands Group, which owns brands such as Stateside, Bailey 44, Sundry and others, is planning to move their business offline. Over the next several years, the company is slated to open 50 stores with the first opening this coming March. “We believe the best performing retail brands will have three legs to their growth story: wholesale, e-commerce and retail stores,” CEO Hil Davis said in a statement. The company said the stores will drive brand awareness, lead to higher average basket size and help with customer acquisition and retention. The company forecasts that each store will generate over $1.5 million annually with positive cash flow. With 50 stores within its fleet, the company expects to generate over $75 million annually in revenue and store-level cash flow. https://lnkd.in/eJrx5ebw #gettingdealsdone #retailrealestate #commercialproperties #realestatedevelopment #commercialrealestate #shoppingmall #retail #business #brand #brickandmortar #investing #malls ##retailnews #investing #malls #ai #retailnews #consumerinsights #DTCbrand

What’s been happening in retail this week? · boohoo reported group sales declined 17% YoY to £1.4bn in the year to 29 February, driven by “difficult market conditions”. The fashion retailer's pre-tax losses widened to £159.9m in the period from £90.7m last year, with gross profit falling 16% to £756m. UK sales declined by 16% to £921m, impacted by the macroeconomic environment, price investments, and changes in the sales mix due to the expansion of the Debenhams marketplace. · Zalando confirmed its full-year guidance for 2024, expecting revenue and gross merchandise volume to rise between 0% and 5% YoY, with adjusted EBIT projected between €380m (£326m) and €450m (£386m). The retailer reported a first-quarter adjusted EBIT of €28.3m (£24.3m) and a 1.3% increase in gross merchandise volume to €3.3bn (£2.8bn). Revenue reached €2.2bn (£1.9bn), down from €2.3bn (£2.0bn) in the previous year. · TALA entered its first physical retail partnership with Selfridges from 10 May across all four Selfridges locations. · JD Sports Fashion opened its first store in the Middle East at Bahrain’s Marassi Galleria Mall in collaboration with global retail partner GMG, spanning 5,422 sq ft. · Morrisons acquired 38 convenience stores from SandpiperCI on the Channel Islands, including shops already branded as Morrisons Daily. The stores, which reported a turnover of £124.5m last year, were part of a franchise agreement since 2018. The deal's terms were not disclosed, but approximately 520 SandpiperCI employees will transfer to Morrisons. · Asda launched LS Eleven Media Services in collaboration with SMG, utilising first-party customer data from Asda Rewards for enhanced retail media campaigns. · Frasers Group announced a partnership with developer AND Digital, innovation specialist Valtech and agency Lab Digital to overhaul its digital infrastructure across brands, enhance operational efficiencies and online experiences. The platform will feature hyper-personalisation and improved product discoverability. · Currys plc is partnering with Accenture and Microsoft to deliver its core cloud infrastructure and leverage the latest AI technologies. It aims to enhance operations, elevate the shopping experience and improve experiences for colleagues. · Amazon announced plans to build a £500m robotic warehouse in Northampton, projected to be fully operational by 2026. The facility, featuring three floors of robotics technology for stowing and picking customer orders, will initially create 1,400 jobs, ranging from engineers to HR, finance and IT staff. This is just a selection of news this week. Sign up below for more insight ⬇️ https://lnkd.in/d-z25aM