Dec
 21
 2018



Christopher

Hello,

Welcome to a new edition of The Spin. Retail news dominates this Friday: Stores are eagerly anticipating so-called Super Saturday tomorrow, things are still rather bleak in the UK (but not in malls worldwide) and LVMH has probably just picked up another piece of prime real estate. Nike is celebrating and Puma is advocating. And please be sure to read and click on the final story for a special message and programming note. Happy weekend! Best, Christopher



retail

What tomorrow brings. Retailers have their fingers crossed that the positive forecasts will come true and that tomorrow, the last Saturday before Christmas aka Super Saturday, will bring robust results. Thanks to predicted good weather and the fact that most people will not have embarked on their holiday travels yet, tomorrow is expected to haul in $26 billion in sales in the US, which would be $2 billion more than this year's Black Friday. And in the UK, it is said that both physical and online retailers will rack up £1.65 billion in combined Super Saturday sales.


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False hope. Although November's retail sales in the UK managed to thoroughly beat analysts' expectations and rise 1.4 percent (instead of the predicted 0.4 percent) compared to October, experts are warning it's no reason to start popping the Champagne. For the quarter ending in November, sales growth was just 0.4 percent, the slowest since April, and November foot traffic was way down. In addition, the number may be revised, the clothing and footwear categories barely grew at all and department store sales decreased.



Vive la mall. Predictions about the impending death of the shopping mall as we know it appear to to have been greatly exaggerated. Despite losing anchor tenants, many malls are actually thriving and holiday foot traffic is up at malls by about 10 million according to the International Council of Shopping Centers. Another report (paywall) by Simon Property Group says that its roughly 200 malls in the US have created 316,870 jobs and generate about $6 billion in annual wages.



Drive buy. A two-story building on prestigious Rodeo Drive in Beverly Hills that up until recently housed a Brooks Brothers has been sold for $245 million – and the unnamed buyer is alleged to be LVMH, which already owns or leases eight buildings on the swank street. Just last March the luxury conglomerate bought 456 N. Rodeo Drive for $110 million and is currently working on opening a Celine store in that building.





markets

Downward dive. Prompted by fears of a government shutdown and the newly increased Federal interest rate, US stocks fell 2 percent yesterday and hit a 14-month low. And although fashion and retail stocks have been hit hard in the recent downturn, Wells Fargo is still bullish on five of them: Foot Locker, L Brands, Tapestry, Lululemon and Carter's Babies and Kids.





brands

In good shape. One fashion company that was an exception in yesterday's bad day on Wall Street was Nike, whose shares rose more than 7 percent in after hours trading after the athletic giant released its very positive Q2 results. Its total revenue rose nearly 10 percent to $9.37 billion and overall online sales were up 41 percent. The numbers easily beat analysts' expectations.



Shoes against shootings. Puma has joined the growing number of fashion brands that are no longer afraid to wear their politics on their sleeves. It released its "Clyde Court Peace on Earth" sneaker model yesterday which features details based on the symbolic white dove of peace. Additionally, Puma will donate $5 for every pair sold to the Trayvon Martin Foundation, an organization dedicated to stopping gun violence.





people

Hot Rod. Rod Manley, a veteran of Calvin Klein, Giorgio Armani and KCD, has been named the new chief marketing officer at Burberry. The new CMO will assume his London-based position on January 1 and will oversee Burberry's marketing, communications and creative media departments.





last

Season's Greetings. To those of you who celebrate it, The Spin's correspondents team – Ulrike, Caroline and I – want to wish you a very Merry Christmas from our New York news anchor's desk. (And the rest of the team at our home base in Frankfurt extends the same wish!) To celebrate the holidays we won't publish the first three days of next week but will return with a new edition the day after Boxing Day. Merry, merry all!







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