Weekly Wrap-Up: Collaboration between Tommy Hilfiger and ThredUp, with speculations on whether inflation has reached its maximum point.
Update: Retail Developments and Trends
The retail sector continued to evolve this week, as various companies rolled out new initiatives and partnerships. Here's a roundup of significant news from the retail landscape.
Business Highlights
Victoria's Secret Introduces Charitable Undergarment Program
Victoria's Secret & Co announced on Wednesday the launch of VS&Co Essentials, a new program that aims to provide undergarments to women and young adults in need. The company partnered with I Support The Girls, a Maryland-based nonprofit organization, to initiate this nationwide donation program. Recipients will receive a one-week supply of panties, totaling seven pairs each.
Dana Marlowe, founder and executive director of I Support The Girls, stated, "The vital need for essential items has not diminished. The VS&Co Essentials program will reach more individuals in need and have a lasting impact." The nonprofit has witnessed a 35% increase in requests for essential products in recent times.
Conn's Opens Shop-in-Shops at Belk Stores
Southern department store Belk and regional retailer Conn's have implemented their announced partnership, with shop-in-shops now open at five Belk locations. Conn's merchandise, ranging from furniture to electronics, is now accessible to Belk customers. According to a joint press release, the partnership not only brings this merchandise to the designated spaces — which range in size from approximately 10,000 to 25,000 square feet — but also provides white-glove, next-day delivery. The first five shops are opening this summer and early fall, with more planned, and an online version will debut this fall.
Tommy Hilfiger Joins ThredUp's 'Resale-as-a-Service'
ThredUp, a leading resale platform, has added Tommy Hilfiger to its portfolio of 'Resale-as-a-Service' clients. This partnership enables Tommy Hilfiger's U.S. customers to generate a prepaid shipping label from tommy.thredup.com, fill a shippable box or bag with clothing (primarily women's and kid's items of any brand, and men's items must be Tommy Hilfiger), and ship it to ThredUp for free. Should any of the items sell or meet eligibility criteria, the customer will receive Tommy Hilfiger shopping credit for both online and in-store purchases.
Esther Verburg, Tommy Hilfiger Global executive vice president of sustainable business and innovation, remarked that the partnership is part of the brand's goal to become fully circular. Analysts from Wells Fargo consider ThredUp's partnerships with brands like Tommy Hilfiger potentially more lucrative than its consumer business.
Retail Insights
American Eagle's Jeanspan undies
In an interesting twist, American Eagle has released jorts-style boxer briefs, priced at just under $50. These underwear, designed to mimic the appearance of jean shorts, have sparked both confusion and curiosity among consumers. While American Eagle touts their versatility for gym, home, and travel use, some customers have used them as an underlayer for actual jean shorts. NJ, one reviewer, wrote, "I LOOK GREAT! I just look great in them … my wife loves them too!"
Pandemic-era Karen figurines
Namespace has introduced an action figure set, featuring a Karen character embodying pandemic-era behavior, alongside an overworked and underpaid store manager named Joe. Wearing a "live, laugh, love" shirt and refusing to wear a mask, the Karen figure mirrors the contentious customer interactions that became famous during the health crisis. Namespace Sales Manager Matt Jacquot stated that the purpose of the action figures is to promote positivity and tolerance.
Further Investigations
Sears Holdings settlement
Plaintiffs have settled with Sears Holdings and its former CEO Eddie Lampert for $175 million after years of litigation. The plaintiffs accused Lampert, alongside ESL Investments and other defendants, of stripping out billions of dollars in valuable assets for their own profit and rampant self-dealing leading up to the retailer's 2018 bankruptcy. The settlement could potentially mark the end of Sears' prolonged bankruptcy process, although it falls short of the amount plaintiffs originally claimed was taken from the company.
Warby Parker layoffs
Warby Parker announced layoffs this week, affecting 63 employees, or 15% of its corporate workforce and 2% of its total workforce. Co-CEOs Neil Blumenthal and Dave Gilboa attributed the job cuts to significant economic volatility and uncertainty. Warby Parker joins a list of retail-related companies that have recently laid off employees, including Glossier and Allbirds.
- The clothing industry is diversifying its strategies to promote sustainability, with Tommy Hilfiger partnering with ThredUp's 'Resale-as-a-Service'.
- In an unprecedented move, Victoria's Secret & Co launched a charity program, VS&Co Essentials, to provide undergarments to those in need, partnering with I Support The Girls.
- The retail landscape is undergoing transformations, as evidenced by Conn's opening shop-in-shops at Belk stores, offering a wide range of merchandise.
- The turn of events in the retail sector is capturing the attention of the general public, with news and updates widely reported on TV and other media platforms.
- Amidst the ongoing pandemic, even action figures are reflecting the societal changes, as Namespace introduces a Karen figure embodying pandemic-era behavior.
- The retail environment remains unpredictable, as Warby Parker announced layoffs affecting 63 employees, amidst economic volatility and uncertainty.
- As some retailers struggle, others are seizing opportunities, with American Eagle introducing jorts-style boxer briefs, priced at under $50, for a versatile travel, gym, and home wear option.
- The education and self-development industry is capitalizing on the digital shift, offering online courses, seminars, and workshops related to retail and fashion-and-beauty.
- The policy makers are closely monitoring inflation rates, its impact on the economy, and their role in shaping the business, technology, and finance sectors.
- In the food-and-drink industry, businesses are adapting to changing consumer preferences, exploring innovative options for lifestyle and health-conscious individuals.
- The economy continues to evolve, with businesses redefining their strategies,, exploring partnerships, and adapting to the changing market trends to thrive in the era of digital innovation and pandemic resilience.
