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jerryking : department_stores   18

Chasing Amazon, Retailers Are in a Never-Ending Arms Race
Nov. 25, 2019 | New York Times | By Sapna Maheshwari and Michael Corkery

Especially hard hit are the big sellers of apparel and accessories like Nordstrom, which are grappling with the dual costs of running fast and efficient e-commerce operations, while also keeping their stores inviting and relevant........While retailers are coming through with a “very, very competitive digital shopping experience,” said Kimberly Greenberger, a retail analyst at Morgan Stanley, they are pouring money into their e-commerce operations at the same time their stores are bringing in fewer sales. Just when they seem caught up, Amazon raises the bar again.
“It just continues this vicious cycle that retailers find themselves in,” .........And then, there are the dozens of buzzy e-commerce start-ups, built through savvy marketing on Instagram and Facebook, that have also been putting pressure on department stores. Often, these companies are built around one product, ship directly to consumers and have only a few stores, if any. They include Away for suitcases, Allbirds for shoes, Lively for bras, Everlane for clothing and Brooklinen for bedsheets.
Many of these companies, backed by venture capital, are focused on growth and not concerned with making money in the short term.
Amazon  Amazon_Prime  apparel  arms_race  contra-Amazon   department_stores  e-commerce  Kohl’s  Macy’s  Nordstrom  product_returns  retailers     same-day  start_ups  supply_chain_squeeze 
november 2019 by jerryking
Store wars: short sellers expect more pain in US retail
February 26, 2019 | Financial Times | by Alistair Gray in New York.

Short sellers who made big bets against US retailers a couple of years ago had hoped for carnage across the board. No one could compete with the rise and rise of Amazon...which would make life hard for every mall tenant across America.

But after a period in which internet shopping seemed to hit almost every brick-and-mortar retailer, the industry seems to be dividing into winners and losers. Casualties are still piling up: bankruptcies since the turn of the year....Payless Shoes ....Sears, the once dominant department store chain, narrowly avoided outright liquidation.

However, some of the biggest companies e.g. Walmart & Best Buy are reporting their healthiest metrics in years......For short sellers trying to profit from falling share prices, it makes for a perilous environment.

“It’s a slow death by a thousand paper cuts, and not the kind of ‘mall-mageddon’ originally anticipated by that trade,”.....“Retail has been much more volatile than many would have expected. It hasn’t been decidedly one way down.”....an over-reaction in 2017 and that led to pretty nice opportunities [for longs] in 2018,”.....Investors who put money on the demise of retail that summer have lost out in many cases......It was almost as if they [shorts] were acting like no retail real estate space can work,” ....overcapacity doesn’t mean retail real estate is dead.”...Shares in the sector have been volatile in part because investors have had to consider a series of seemingly contradictory data points about the health of both the US consumer and the retail business.....Traditional chains are also trying to take on Amazon by improving their online offerings and making their stores more enticing. Both require hefty investment, although successful examples include Lululemon, which offers yoga lessons in its stores. Shares in the company have tripled since a 2017 low.

“Those who are innovating and investing in ecommerce, marketing and social media tend to be doing well...“The US is still over-stored,” ...Ecommerce meant “more of the store base is not economic. That’s going be a secular pressure for years to come. For those retailers that don’t have a digital strategy, it’s just a matter of time before they fall.”
Amazon  apocalypses  bankruptcies  barbell_effect  bear_markets  bricks-and-mortar  commercial_real_estate  death_by_a_thousand_cuts  department_stores  digital_strategies  e-commerce  innovation  investors  investment_thesis  Lululemon  pain_points  overcapacity  retailers  shopping_malls  short_selling  structural_decline  Wal-Mart 
february 2019 by jerryking
Despite Amazon effect, not all mom and pops in trouble on Main St.
Chris Morris, special to CNBC.com Published 8:53 AM ET Fri, 11 Aug 2017

With so many major retailers struggling to stay afloat, it'd be easy to think smaller, mom-and-pop stores are doing even worse, or might be largely fading away. The recent demise of retail giants, however, has left a brick-and-mortar vacuum for local stores to fill.

And many experts say it might be best to stay small. Being a micro-sized business certainly isn't protection against big-box retailers or online competitors, but being a small business that's an integral part of a local community can help build a loyal customer base.

"The vast majority of mom-and-pop businesses are either neighborhood retail businesses or small service businesses," says Leonard Schlesinger, Baker Foundation professor at the Harvard Business School. "As neighborhood businesses, they play a significant role in neighborhood stabilization, [providing convenience for people living close by]."
Amazon  big-box  mom-and-pop  retailers  e-commerce  ethnic_communities  convenience_stores  local  customer_loyalty  small_business  department_stores  neighbourhoods 
january 2018 by jerryking
In the fashion industry, McShopping has gone global - The Globe and Mail
KONRAD YAKABUSKI
PUBLISHED AUGUST 7, 2017

invaded by the same global chains that have made the shopping streets of the world's great cities all start to look the same. In the main shopping districts of Paris, Madrid, London or Toronto, the invasion of the same global chains (e.g. Zara, H&M, Primark & Uniqlo) that have made the shopping streets of the world's great cities all start to look the same. It's destroying the visual identities of cities once visited for their unique charm.

The cheap-chic revolution has brought affordable fashion to the masses and, thanks to better monitoring of offshore factories, provided millions of decent jobs in developing countries. It also has its downsides. Massive amounts of "disposable" clothing end up in landfills each year. When clothes are this cheap, we don't think twice about chucking what we bought last month for something even trendier. Instead of four fashion seasons, we now have at least 12...... department stores are a dying breed. Those that survive will likely only do so by going global.
Konrad_Yakabuski  fast-fashion  fashion  apparel  retailers  department_stores  brands  globalization  concentration  identity  Uniqlo  H&M  HBC  Zara  Paris  Madrid  London  Toronto  disposability  Primark  uniqueness  J.Crew 
january 2018 by jerryking
From Swiss post to Swedish retail
26 August/27 August 2017 | FT | Tyler Brule

Q: I know you're a fan of Italy, so what do you think will happen to Alitalia [that went into administration in May]? Or do you even care?

A: First, I...
H&M  brands  retailers  Tyler_Brûlé  department_stores  Alitalia  Lufthansa  fast-fashion 
november 2017 by jerryking
Why traditional retail hasn’t hit rock bottom — yet
October 4, 2017 | The Globe and Mail | ERIC REGULY.
.....it's fashionable—and not wrong—to blame Amazon for most of the retailers' woes, other factors, from stale retail formats to the new anti-stuff movement, are at play too. Put together, the financial and cultural forces battering the retailers seem relentless.

The outlook is so grim that Bespoke Investment Group of Harrison, New York, invented a "Death by Amazon" list of 54 retail stocks that it thought would get whacked by Amazon and other forces conspiring against the sector......Traditional retailing, of course, is not entirely doomed because only the brave or bone-headed would buy some expensive items—diamond earrings, high-end suits, musical instruments, mattresses, Persian carpets, prescription sunglasses—without hands-on examination. And some shoppers, me among them, like the pleasure of propping up independent stores that sell high-quality goods.

But I don't shop much for general merchandise any more, because I am sick of clutter and, with university fees for my kids, don't have the spending power for non-essential items..... blamed shifting consumption patterns for much of the old-style retailers' distress........ blamed shifting consumption patterns for much of the old-style retailers' distress...money spent on smartphones and wireless services is unavailable to be spent on T-shirts and shoes.....middle-class incomes have stagnated, healthcare costs have climbed, and highly leveraged consumers are more interested in paying off debt than buying new TVs. Something had to give, and it was the department stores, whose shares are down by 40% or more in the last year or so (Macy's, J.C. Penney)......Amazon's endless virtual aisles sells Fiat cars in Italy, Nike shoes and and Sears' Kenmore appliances. Amazon recently bought Whole Foods and dropped its prices, which put the mainstream supermarkets into a panic........ 55% of product searches start on Amazon, far more than the 28% that start on search engines. The popularity of Amazon Prime (which provides free, two-day delivery as well as TV and movie video streaming) and the construction of massive warehouses have accelerated its growth. .....captures an estimated 40% of every shopping dollar spent online and is already the second-biggest apparel seller in the U.S., behind Wal-Mart. No wonder the traditional retail sector is in free fall.
And here's another question: As traditional retailers weaken or go out of business, and anchor stores disappear from North America's crazily over-malled shopping geography, can the real estate investment trusts be far behind? Betting against Amazon seems a fool's game.......
Eric_Reguly  retailers  decline  bricks-and-mortar  shifting_tastes  Amazon  REITs  shopping_malls  bankruptcies  department_stores  seismic_shifts  high-quality 
october 2017 by jerryking
Nordstrom Tries On a New Look: Stores Without Merchandise - WSJ
By Suzanne Kapner
Sept. 10, 2017

Nordstrom Local, doesn't stock clothes.....it's a new concept as retailers across the U.S. are wrestling with how to best to use their physical spaces and attract customers who are migrating to the web. For department-store chains like Macy’s Inc., J.C. Penney Co. , Kohl’s Corp. and Sears Holdings Corp. , one answer has been to shrink their footprint by closing stores or experimenting with smaller ones......consumer habits are changing.....“There aren’t store customers or online customers—there are just customers who are more empowered than ever to shop on their terms,”...Nordstrom Local, scheduled to open Oct. 3 in West Hollywood, Calif., will span 3,000 square feet, far less than the 140,000 square feet of one of Nordstrom’s standard department stores. It will contain eight dressing rooms, where shoppers can try on clothes and accessories, though the store won’t stock them. Instead, personal stylists will retrieve goods from nine Nordstrom locations in Los Angeles, or through its website. The stylists can also pull together looks for shoppers through a “style board” app.

“Shopping today may not always mean going to a store and looking at a vast amount of inventory,” said Shea Jensen, Nordstrom’s senior vice president of customer experience. “It can mean trusting an expert to pick out a selection of items.”..In addition to manicures, Nordstrom Local shoppers will be able to order wine, beer, coffee or juice from an in-store bar, and those who place orders on Nordstrom.com by 2 p.m. can pick them up there that day. They will also be able to return items at the store that they bought online or from other Nordstrom locations. Tailors will be available for alterations or to help members of Trunk Club, an online clothing service that Nordstrom acquired in 2014, select fabrics for custom garments.

Other retailers have experimented with inventory-free stores, including Bonobos, the men’s fashion brand bought by Wal-Mart Stores Inc. over the summer. Stores such as Pirch, a purveyor of high-end home appliances and decorative plumbing, have taken the experiential route, inviting shoppers to bring bathing suits to test their $1,000 showerheads....the traditional retail store hasn’t changed much over the years. One hindrance, according to Doug Stephens, founder of the consulting firm Retail Prophet, is that Wall Street measures success by sales per square foot and other metrics that are becoming outdated in a world where shoppers still visit stores but increasingly make their purchases online.
Nordstrom  Nordstrom_Local  Macy  personal_stylists  BOPIS  Doug_Stephens  retailers  sales_per_square_foot  physical_space  experiential_marketing  small_spaces  curation  department_stores  inventory-free  e-commerce  store_footprints  downsizing  Bonobos  metrics  in-store 
september 2017 by jerryking
European Mall Landlords Coping With Online Competition Better Than U.S. Owners - WSJ
Sept. 5, 2017 | WSJ | By Esther Fung.

Malls need to shift emphasis away from department stores and toward retailers that are less susceptible to competition from e-commerce........On average, department stores still occupy about 50% of the gross leasable area of shopping malls in the U.S., while similarly beleaguered apparel and accessory retailers take an additional 29%, said the CBRE report. Retail sectors that are growing, include restaurants, beauty and home furnishings, account for only a small percentage of the typical mall.

The traditional mall model, developed seven decades ago, is heavily dependent on categories that are no longer fast-growing or meeting today’s consumer demands,.....“Converting malls’ tenant bases to include more of the categories that in-person shoppers now favor won’t be an easy or quick fix,” ..... “But it is a necessary evolution for the mall industry to maintain its place as a cornerstone of American retail.”

One of potential obstacles is getting the buy-in of department stores, which usually hold contracts that hinder major changes to malls without their consent.

“Many department store chains gradually have become more accepting of change, but it isn’t a given. Those who reject change may do so at their own peril: There is a growing trend of mall owners buying out department store leases and redeveloping the space into restaurants and specialty stores,”
redevelopments  shopping_malls  landlords  Europe  restaurants  anchor_tenants  department_stores  CBRE 
september 2017 by jerryking
Diversification key for mall developers as retail landscape evolves
Feb. 7, 2017 | Retail Dive | by Kenneth A. Rosen and Eric S. Chafetz.

Traditional anchors like Sears/Kmart and Macy’s are beset by competition from all sides, from freestanding big-box outlets (think Home Depot and Bed Bath & Beyond), to stores attracting fashion-forward yet price-conscious consumers (Target and Kohl’s) to mounting online competition from Amazon and others.

This is leading to the loss of mall tenants, especially anchor tenants, which are major drivers of all-important foot traffic.....Mall owners are (or should be) rethinking the very definition of a mall. New tenants such as high-end restaurants, amusement parks, spas, health clubs, online pickup locations at traditional retailers and upscale movie theaters increasingly are essential components........Reshaping malls into mixed-used developments might run counter to a business model that worked for decades, where mall owners and developers could simply be mall owners and developers. However, these entities must realize that the need for new thinking and investment in new types of amenities and features is greater than ever to drive foot traffic......Technology is also key, with some mall owners now allowing customers to text them questions and get real-time answers. Other malls have implemented mobile apps to provide turn-by-turn navigation from store-to-store in a mall and directions to their parked cars. ........Consider a successful shopping center developer, in this case seeking opportunities for growth. The developer might look to acquire store leases at malls owned by competitors where an anchor has closed and redevelop the space into a cluster of smaller stores or into a mixed-use property (restaurants, movie theaters, urgent care centers, spas, etc.)......The transformation of malls will continue, and usher in changes that would have been unfathomable a decade ago. Last year, two mall owners — Simon Properties and General Growth Partners — teamed up with Authentic Brands and a few inventory liquidators to purchase hundreds of Aeropostale stores out of bankruptcy. The justification from the mall owners was that they were not merely trying to save a tenant, but based on the bargain basement price that they paid, believed they could make a profit. As 2017 unfolds with the expectation of additional retail Chapter 11s and store closures, mall developers and owners also may look at their competitors with an eye toward new opportunities.
diversification  redevelopments  shopping_malls  REITs  department_stores  big-box  cost-consciousness  e-commerce  Amazon  foot_traffic  reinvention  competitive_landscape  mapping  retailers  store_closings  offensive_tactics  transformational 
august 2017 by jerryking
Now at Saks: Salt Rooms, a Bootcamp and a Peek at Retail’s Future - The New York Times
By DAVID GELLES AUG. 4, 2017

Venerable department store was dealing with the upheavals throttling the retail industry. As stores around the country reckon with Amazon.com, discount chains and changing consumer habits, they are turning to “experiential” offerings that entice people to enter their doors..... “Selling stuff in stores is not the answer,” he said. “You have to build an emotional connection with them. Where else can you take a fitness class and buy a Chanel handbag?”

It isn’t clear how many of Saks’s discerning clientele are actually interested in getting a lemon scrub after purchasing a $5,100 Alexander McQueen dress. During multiple visits over the past week, The Wellery was sparsely populated.
retailers  Saks  shareholder_activism  future  department_stores  experiential_marketing  wellness  Nordstrom  Macy's  emotional_connections  experimentation  bootcamps  Amazon  shifting_tastes  contra-Amazon  dislocations 
august 2017 by jerryking
Has America Built Its Last Major Mall? - WSJ
By Esther Fung
June 27, 2017

Appetite for building enclosed malls of more than 800,000 square feet has dried up. Department stores, once dependable foot-traffic generators, are closing locations amid stiff competition from off-price retailers and the growth of online shopping.

A mall construction spree in the 1970s and 1980s has left in its wake aging properties at a time when there is little capital available for upgrades. As anchor stores close, more mall space sits idle and foot traffic wanes, hastening the march toward death.

In all, there are roughly 1,200 malls in the U.S., and some analysts see the figure bottoming out at 500 to 800.
shopping_malls  retailers  e-commerce  commercial_real_estate  Taubman  foot_traffic  department_stores 
june 2017 by jerryking
Sears Canada raises ‘significant doubt’ about its future - The Globe and Mail
MARINA STRAUSS - RETAILING REPORTER
The Globe and Mail
Published Tuesday, Jun. 13, 2017 .

a number of retailers stand to profit from Sears’s woes. One of them is archrival Hudson’s Bay Co., which announced last week it is letting go 2,000 employees in North America and revamping to generate $350-million in annual savings.

“When a competitor is out, more customers are looking for a substitute,” said Hugh Latif of Hugh Latif & Associates Management Consultants.

Other potential beneficiaries of Sears’s problems could be discount giant Wal-Mart Canada Corp., Quebec fashion specialist La Maison Simons and Canadian Tire Corp., all of which may look at buying some of the Sears leases, in some cases to nab a better location, Mr. Latif said. Simons is one of the few retailers in this country that is rapidly expanding.

“Probably landlords will sweeten the pie for them,” he said.

And retailers such as Canadian Tire and Wal-Mart have been interested in potentially picking up some parts of Sears, most notably its rights to prominent brand names such as Kenmore appliances, industry sources said......In its transformation efforts, Sears Canada has so far relaunched four stores under its more minimal redesign, with 10 more planned this summer. It has also installed new technology for its “Initium” digital strategy, although it has faced some setbacks in the rollout. And along with introducing off-price discounted designer lines in apparel and home goods – borrowing a page from retailer Winners’s playbook, it also has overhauled its private-label lines under the new Sears Label to offer more affordable, higher-margin fashions and home décor items.
Sears_Canada  retailers  shopping_malls  Marina_Strauss  landlords  rollouts  HBC  Target  digital_strategies  store_closings  department_stores  playbooks 
june 2017 by jerryking
Tills and skills: How to prepare America’s retail workers for technological change | The Economist
May 12th 2017

America’s retail industry is huge: it employs 15.9m workers, who represent one in nine American jobs. It is also undergoing wrenching change, as e-commerce eats into sales. There is no more pressing test of society’s ability to cope with technology’s impact on work....For all the benefits that online retailing brings to consumers, it is causing immense pain to offline rivals. Last year 4,000 American stores closed; this year more than twice that number may shutter. Standard & Poor’s, a rating agency, expects retail defaults this year to outnumber those in 2009, at the height of the global recession. Some formats—discount stores, groceries, high-end malls—will continue to thrive. But many will shrink. The industry has shed 50,000 net jobs since January. Department stores may need to close more than 800 stores to reach the productivity levels of 2006. Many outlets are looking for ways to cut labour costs by embracing automation....The problems faced by America’s retailers are particularly acute because there are so many of them: shopping centres eat up five times more space per person than in Britain. But the threat posed by technology is familiar to workers elsewhere. In Japan, online sales menace small, specialty shops that account for roughly half of sales. The Eurasia Group, a consultancy, reckons that 192m retail jobs around the world are vulnerable to automation.....A 21st-century approach to careers advice would see employers across industries identify transferable skills: rather than thinking of e-commerce as a natural move for shop assistants, their ability to handle customers might make them more suitable for roles in health care, for example. Armed with such advice, people in at-risk industries such as retailing could be given learning accounts, topped up by government, that can be used to pay for new skills. Benefits could be made more portable, making it easier for workers to switch between full-time employment and the gig economy as circumstances change.
job_destruction  job_displacement  job_loss  e-commerce  store_closings  retailers  Standard_&_Poor’s  grocery  shopping_malls  department_stores  oversaturation  safety_nets  automation  technological_change  market_saturation  transferable_skills 
may 2017 by jerryking
Internet’s creative destruction in retail just getting started - The Globe and Mail
ROBERT CYRAN

Published Monday, Apr. 29, 2013
the Web's creative-destructive powers are best seen in the overlay of the Internet on traditional industries. Online sales of shoes, furniture and fashion all made the list of rapidly-growing sectors. E-commerce giants like Amazon and Walmart.com usually offer lower prices than traditional retailers – and convenient home delivery. That's bad news for struggling retailers like Sears, Best Buy and J.C. Penney.

Specialty websites, like Zappos for shoes, also offer a wider selection than can be found in rival DSW's bricks-and-mortar shops. The shoe retailer warned that same-store sales are now falling. And the Web's ability to remove middlemen with high fixed costs means nimble startups can dislodge entrenched players. Warby Parker sells eyeglasses for a fraction of the price of the local optician. That also threatens the $25-billion business Luxottica has built in making and selling high-margin spectacles in its LensCrafters, Pearle Vision and Oliver Peoples shops.

The impact of electronic delivery of digital goods, from books to music to games, has long been evident. And it hasn't been pretty for the incumbents. If this latest survey is on the mark, traditional retailers will soon feel the same pain.
creative_destruction  digital_artifacts  retailers  e-commerce  bricks-and-mortar  Amazon  Warby_Parker  value_destruction  home-delivery  Sears  Best_Buy  department_stores  J.C._Penney  bad_news 
may 2013 by jerryking
J.C. Penney to Overhaul Department-Store Concept - WSJ.com
JANUARY 26, 2012 |WSJ| By DANA MATTIOLI.

J.C. Penney Chief Thinks Different
With Apple in His Head, New CEO Tosses Out Old Pricing Models and Formats at Department Store

Department stores increasingly are setting up "stores in a store" and carving out areas for specific brands. Mr. Johnson, however, wants to set up as many as 100 of them—including branded spaces like a new Nanette Lepore shop and "Martha Stewart's Kitchen," private-label stores for the company's Liz Claiborne line, and themed areas for seasons and trends.

Penney's plans to launch 10 new shops in the fall and add new stores monthly until it reaches its goal by 2015. ...Two things Mr. Johnson isn't interested in are celebrity lines and private label apparel. Mr. Johnson, a believer in brands, says in-house labels lack distinctiveness and pricing power
department_stores  retailers  J.C._Penney  CEOs  first90days  Dana_Mattioli  Apple  product_launches  think_differently 
january 2012 by jerryking

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