Mar
 05
 2019



Ulrike

Hello,

Welcome back to The Spin! Insiders expect the US and China to announce a new trade agreement soon. We also tell you, why top mall operators are not (yet) concerned about the next wave of store closures in the US - and which British designer label is up for sale. Enjoy the read and feel free to share! Best, Ulrike



markets

Coming together. Trade talks between the US and China seem (paywall) to be on a good trajectory, with Beijing offering to lower tariffs and other restrictions on a slew of American products, as Washington considers to lift most sanctions that were put on Chinese products since last year. Although some hurdles remain, a formal agreement could be reached at the next meeting of US President Donald Trump and Chinese President Xi Jinping, probably around March 27.



#WearNext. New York City discards about 200 million pounds of clothing in landfills per year. To promote apparel recycling, fashion brands, retailers, the Ellen MacArthur Foundation and the Department of Sanitation have created (paywall) the #WearNext initiative. Under the three-months long program, more than 1,100 stores and other participants across the city will act as drop-off points for used clothing.





retail

Fearless. As of March 2nd, more than 4,300 stores have already been scheduled to close in the US this year. Since most closures usually happen at lower quality malls, the impact on high-end shopping centers is expected to remain relatively small. Operators like Simon Property Group and Macerich are considered relatively immune to the crisis.



Taking off. Meanwhile, as airport retail expands, shopping corridors have been redesigned to lead consumers past stores on their way to the gates. Since 9/11, people arrive at airports earlier. Having extra time, they often treat themselves with luxury items, with US travelers currently spending about $1.7 billion at airport stores. By 2022, the global market could grow from $40 billion in 2017 to $58.4 billion. According to rumors, Amazon even considers opening Amazon Go airport stores.





brands

Child's play. Bankrupt US kidswear retailer Gymboree Group is going to sell its brands. The Children's Place, which operates 988 kids' clothing stores in the US, Puerto Rico and Canada, plans to buy the Gymboree and Crazy 8 children's fashion brands for $76 million. To further its expansion in the children’s category, Gap Inc is interested in the upmarket Janie and Jack kidswear business, which is valued at $35 million. All transactions have to be approved by the bankruptcy court.



Splitsville. Due to widening losses at Anya Hindmarch, the Qatari royal family’s investment fund, Mayhoola, has put the London-based designer label up for sale. Between 2012 and 2018, the fund had increased its share in Anya Hindmarch, which lost (paywall) £28.2 million on revenues of £37.2 million, to 75 percent.





people

Like a Virgil. Targeting girls who wear Celine and guys who wear Supreme - who all share closets mixing high and low, Off-White founder Virgil Abloh has his finger straight on the streetwear pulse. And he knows his power. Taking advantage of fashion’s broken gatekeeper system, he feels that he - and even kids half his age - can push traditional fashion guards over and make a brand uncool on a whim.



From GE to Bogner. German sports brand Bogner has named Gerrit Schneider CFO. The 45-year-old Austrian takes over the management of Finance, IT and Human Resources from Marcus Breyer, who has not extended (paywall; translated by Google) his contract. During her 20-year career, Schneider has worked in commercial and consumer finance as well as in corporate integration and investor relations. Most recently, she held the CFO position at the aviation division of General Electric’s GE Additive.







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