Virtua’s Post

#eCommerce Some headlines to think about: Conair names new president, CEO What’s the path forward for Nike? New CEO at Solo Brands as Q4 sales disappoint Returns are the last, but not least, component of a holiday CX strategy Amer Sports files for IPO Rent the Runway to cut 10% of its corporate workforce, COO resigns Fitch: ‘Rising headwinds’ are rushing toward consumers in 2024 Leadership challenges are enormous right now. Maybe more than ever. Pace of change and requirement to think short term over long term mean decisions are made too quickly or in vaccuum or not made at all. Another factor here is where investors are involved. What impact does this have, not on decision making but the desired outcome. Leadership lifespan looks to be decreasing too which then asks, does real strategy exist. Has there been enough scrutiny of the business model and are the objectives dead before they even start. Looking at Rent the Runway above - is the business underperforming or is the business model even workable? Consider the CAC associated with grabbing a customer and then squeezing them on subscription before they churn. Brands are already managing inventory "second life" with greater emphasis and also the customer base, in my opinion, is not there to support their wider objectives. There are numbler competitors sitting prettier in this space. ASOS in the UK another. Jose Calamonte is doing a decent job in trying to turn them around - agreed great funding restructuring and has made cost cuts but maybe not enough of the bigger, tougher decisions. The biggest problem they face is a brand strategy. Maybe his role was to prime them for acquisition at the best price available at the time. With them not implementing a brand strategy, this is most likely for me. But leadership is getting tougher and tougher. Some questions to think through: Are we truly strategic - can we afford to be? What does my future operating model look like? Who/How will it be funded? Have I allocated enough to tech investment for the next 3 years? Do brands have a life span? If so, what is ours? (Not LTV) Is what you do more important than why? Partnerships will be an asset as valuable as capital over the next decade. How do you stay nimble but plan strategically What are the other challenges we face into? #retail #strategy #brandstrategy #usretail #ukretail #leadership

Interesting read from Erica La Sala from Beauty Independent related to the Saks and Nieman merger. The question asked: What do you make of the Saks Fifth Avenue/Neiman Marcus deal? How will it impact the luxury beauty market? Will it strengthen the declining department store sector?  According to Cristina Nuñez, "... the department store channel is a challenging one. Historically, it has been the main retail channel for luxury beauty brands given it is more suited for a higher price point. But with continued declines in traffic at department stores, the channel has proven to be a difficult place for luxury brands to rely upon for growth. Instead, growth is being driven at specialty retailers such as SEPHORA and Ulta Beauty, whose dominance has largely been at the expense of department stores". "At the end of the day, consumers will continue to shop for beauty at retailers offering best-in-class in-store experiences optimized for brand discovery. Brands should seek out these partners offering the best brand building support and a path to achieving scale. Perhaps the combination of Saks and Neiman Marcus will allow for a more enhanced retail experience overall that is even better suited for luxury beauty. Time will tell." True Beauty Ventures

When it comes to emerging retail brands, DICK'S Sporting Goods is taking it to the next level. With 75 years of retail experience, Dick’s is reimagining shopping in a customer-centric manner. They are creating emotional connections with shoppers by offering sports driven activities across retail concepts like House of Sport and Galaxy Golf. In fact, they plan to open 75 -100 House of Sport stores by 2027. 🚀 Experiential Retail Concepts - Dick’s is reshaping retail with House of Sport, offering experiences like rock climbing and yoga. Testing concepts like Public Lands, Going Going Gone, and transforming Golf Galaxy with high-tech features. 💼 Strategic Acquisitions & Digital Growth - In March 2023, Dick’s acquired Moosejaw, expanding its digital reach. Simultaneously, they sold Field & Stream stores, converting them to House of Sport, showcasing a customer-centric strategy. 🛠️ Adaptability and Innovation - Dick’s Sporting Goods thrives by embracing change, innovating, and meeting evolving customer needs. Hit the 🔔 to follow along for weekly segments on Emerging Retail Concepts you need to know. #retail #emergingbrands #retailrealestate #CRE

Clarkston's Sarah Covill Broyd commented on the recent new that Saks Fifth Avenue parent company Hudson's Bay Company is acquiring Neiman Marcus Group. "With the rise of #luxury brands and the decline of #departmentstores, the #merger between Saks and Neiman Marcus will create greater power on their side for negotiations across brands and products. Consolidating two stores with high level of overlap in #brands, offerings and consumers will increase their strength in negotiating against brands. Given their similar #consumer sets and stores, I suspect they will consolidate their real estate and corporate functions. Beauty companies should expect increased pressure from the retailer, but likely less storefronts to sell into. In most department stores, the #beauty counter typically brings in a significant portion of the foot traffic, so brands have leverage. Luxury department stores also understand they also contending with prestige brands being sold at other retailers like Ulta and Sephora ..." Continue reading in the Beauty Independent article here: https://hubs.ly/Q02GsH8T0

The future is bright…

ParentInc's Strategic Move: A Majority Stake Acquisition in Luxury Retailer Motherswork" In a strategic maneuver poised to reshape the landscape of the luxury retail sector, ParentInc, a prominent player in the parenting and lifestyle industry, has successfully sealed the acquisition of a majority stake in Motherswork, a renowned luxury retailer catering to discerning mothers. This bold move not only expands ParentInc's market presence but also signifies a significant synergy between two industry leaders, setting the stage for enhanced offerings and a broader footprint in the evolving parenting and luxury retail landscape. Read More :- https://lnkd.in/gjbB9Hqq #ParentIncMothersworkDeal #LuxuryRetailRevolution #StrategicAcquisition #ParentingLifestyleInnovation #IndustrySynergy #MothersworkLuxury #PremiumParenting #RetailLandscapeTransformation #BrandPartnership #ElevatingParentingExperience #BusinessExpansion #IndustryLeadership #ParentIncGrowth #LuxuryRetailExperience #SynergisticSuccess #BoldBusinessMoves

The end of the CMO role? Starbucks’ move to ditch the CMO position comes as many brands are rethinking where the sometimes-nebulous role sits within their business, changing the title to reflect a broader range of responsibilities, hiring “fractional” CMOs in consulting-style positions and, in some cases, cutting it entirely. The restructure forms part of Starbucks’ “Triple Shot with Two Pumps” transformation plan, which is dedicated to three things: strengthening the Starbucks brand; upgrading its digital offering; and helping the chain become “a truly” global business. #cmo #marketing #brand #branding #leadership #retail #starbucks #technology #global #digital #executiveleadership

Thanks Beauty Independent and Erica La Sala for sharing my thoughts on the Saks Fifth Avenue / Neiman Marcus Group deal and how it might impact the luxury beauty market and the department store channel overall. Some of my key takeaways: ▶ The Saks/Neimans merger is occurring amidst significant department store challenges as growth has shifted to specialty retailers like SEPHORA and Ulta Beauty. ▶ The declining department store channel has historically been key for luxury beauty brands which could face reduced retail options and leverage as a result of the merger. ▶ This further emphasizes the need for luxury beauty brands to pursue direct-to-consumer growth strategies leveraging their high AOV and gross margin profiles to support profitable new customer acquisition growth. ▶ Perhaps the combination of Saks and Neiman Marcus will allow for a more enhanced retail experience overall that is even better suited for luxury beauty in the future - only time will tell. Great insights also shared by Kelly St. John, Tina Henry Bou-Saba, Karen Hayes and other beauty industry colleagues! True Beauty Ventures #beautyinvesting #beauty #VC https://lnkd.in/eswm8YD3

Macy’s to close 150 more stores in 3 years   As part of a transformation plan unveiled Tuesday, Macy’s said it will shutter 150 underperforming locations over the next three years, with 50 closing this year alone. At the same time, Macy’s Inc. will open 15 Bloomingdale’s stores, at least 30 Bluemercury stores and 30 small-format, off-mall stores.   The decision by Macy's to close 150 stores, even those that are currently profitable, marks a bold and potentially transformative strategy in the face of the retail sector's rapid evolution. From a business perspective, this approach reflects an understanding that long-term success requires more than immediate cash flow—it demands a sustainable model that aligns with shifting consumer preferences and the digital marketplace.    It seems that by reallocating resources to expand smaller formats and invest in luxury and beauty segments, Macy's is aiming to position itself more strategically in the market. Such moves, while ambitious, could pave the way for renewed growth and relevance in a highly competitive landscape. For businesses observing these changes, the lesson is clear: adaptability, informed by a deep understanding of market trends and consumer behavior, could be the key to success.   https://lnkd.in/eM4495_8   #PaletzAdvisor #stratgy #mentorship #enrtrepreneurship

Starbucks and other companies are dropping their CMO role, and it's got me thinking... I’m a firm believer that to be successful, companies need to put their brand at the heart of everything they do. Could this shift in leadership move us towards a model where “traditional” marketing is woven into the fabric of the business given its direct impact on the P&L, while brand strategy takes on a more holistic, guiding role? With the brand as the nucleus, your purpose and customer needs drive decisions across ALL functions – from product development and design to engineering and customer experience. This is where the magic happens. But this kind of shift is no small feat. It requires a deep commitment to brand-centric thinking and a willingness to break down silos. Hmmm I can see a blog post brewing in here somewhere 🤔🤔 #brandstrategy #brandcentricity