Apr
 18
 2019



Caroline

Hello,

Welcome to this new edition of The Spin. Today we are looking at the e-commerce effect on bricks and mortar stores in Europe. The British fashion chain Monsoon Accessorize is poised to restructure itself, while the Dutch outfit, Miller & Monroe, will definitely be shutting down its 160 stores in Germany. Fortunately, other retailers have managed to forestall extinction by investing in the future. Neiman Marcus makes a venture onto a platform that sells pre-owned luxury items and Walmart is sampling the subscription business for kids' apparel. On this Good Friday and Easter, The Spin will take a recess, and we'll be back next Tuesday. Enjoy the read. Caroline.



markets

High street retreat. The British fashion chain Monsoon Accessorize is preparing to file for a CVA (Company Voluntary Arrangement) in anticipation of closing dozens of its stores and seeking rent reductions from its landlords. The company which operates 270 stores in the UK has retained Deloitte to restructure its organization. The German branch of Monsoon Accessorize has already filed (paywall, translated by Google) for insolvency: its 30 stores are closing and 190 staffs have been dismissed.



No future. The Dutch retailer Miller & Monroe has no future (paywall, translated by Google) in Germany. That's the conclusion of Jochen Sedlitz, the insolvency administrator. Their landlords refuse to cooperate. The 160 clothing stores will be shuttered in June. However another group is interested (in German) in acquiring them and could save a number of the 1800 jobs. The short lived Miller & Monroe enterprise began in Germany in March 2018 when the retailer bought all 200 branches of the Swiss Charles Vögele.





retail

Pre-loved. Neiman Marcus has taken (paywall) a minority stake in Fashionphile, a market place to sell pre-owned ultra luxury bags, jewelry and accessories. The purchase price was not disclosed. Neiman Marcus doesn't intend to intervene in the online operation or its website and its 4 showrooms, but certain Neiman Marcus stores will serve as drop off points for Fashionphile. The increasingly popular pre-owned apparel and accessories market is projected (paywall) to grow to $51 billion by 2023, according to GlobalData.



Pre-selected. Walmart.com is partnering with Kidbox, a children's clothing subscription service, to offer a $48 box, 6 times a year to busy parents. The box will contain 4 to 5 items from Betsey Johnson, Levi's, the Children's Place...If the buyer keeps everything, the family will have saved 50% on the retail cost of the items. Walmart.com tries to compensate for the big gap left by Gymboree and Toys'R'Us shuttering, but the competition from other retailers still remains fierce.





brands

Crazy rich Chinese. Four hundred twenty five million consumers spent (paywall) around €920 billion last year in luxury goods, according to the True luxury global consumer insight study, presented at the Altagamma conference in Milan by the Boston Consulting Group's analysts. They estimate that luxury goods will grow 4.6% each year between 2018 and 2025. Chinese consumers will represent 40% of the buyers by 2025. "Made in Italy" is (in Italian) the preferred reference (29%), ahead of "Made in France" (21%).



The not so crazy Hong Kongers. Italian luxury label Valentino is still growing albeit at a slower pace. Its CEO, Stefano Sassi revealed at the Altagamma conference in Milan that the brand, part of the Qatari investment fund Mayhoola, closed 2018 with a revenue of about €1.2 billion, which is 3,4% higher than the year before. Valentino has experienced a good start for the first quarter of 2019, in spite of disappointing Macao and Hong Kong markets.





people

Full moon mourning. French designer Corinne Cobson, daughter of Dorothee Bis founders, Jacqueline and Elie Jacobson, has died (paywall) at age 62 from cancer. She had created her own label back in 1987 and was renowned (in French) in the nineties for her rock'n'roll attitude. The "enfant terrible" liked to mix cotton, linen and leather to create looks that were appreciated on the music scene. She was also the costume designer of Eric Rohmer's movie "Full moon in Paris".



Parsons beware. Xavier Romated will take over (paywall) Institut Francais de la Mode. Beginning August 26, the veteran of the advertising industry who was head of Conde Nast France will become (in French) general manager of the fashion school, succeeding Dominique Jacomet. He arrives at the IFM at a crucial time, just after the merger of the Institute with the Ecole de la Chambre Syndicale de la Couture. Mission: create the world's best fashion school.







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