Apr
 23
 2019



Ulrike

Hello,

Welcome back to a new issue of The Spin! The French government plans a law to ban the destruction of unsold clothes, potentially creating a benchmark for new international industry standards. Meanwhile, Amazon is going to close its third-party marketplace in China, while Aéropostale is on track to open 60 stores in Turkey this year. Enjoy the read and feel free to share! Ulrike



markets

Waste not, want not. Following reports of fashion brands like Louis Vuitton, Burberry and H&M routinely destroying unsold items, the French government plans a law to ban the practice. Apparently, junior ecology minister Brune Poirson was inspired to take action after seeing a TV report about merchandise being flagged for destruction by Amazon. She hopes to help integrate unsold merchandise into the circular economy and envisions punishment in form of fines, sanctions and imprisonment.



Trouble in China. Amazon will close its third-party seller marketplace in China on July 18, effectively ending sales of goods from domestic vendors. However, the online giant continues selling products from its global stores and will also keep its web services and Kindle business in China as it continues to discuss the merger of its cross-border eCommerce with its Chinese competitor Kaola.





tech

Saving face. Amazon now requires Amazon Flex delivery drivers to verify their identities by sharing selfies in their Flex app. The move is intended to protect these independent contractors from the unauthorized usage of their accounts. Images are for internal verification and are not shown to customers.





retail

Trip to Turkey. US fashion chain Aéropostale, which is co-owned by Authentic Brands Group, has partnered with Turkey’s Boyner Department Store to open 60 retail locations in Turkey this year, and another 95 stores by 2023. Under the agreement, Boyner will order from Aéropostale’s global collection and locally source additional product specific to the Turkish market.



Closing time. To improve its financial performance, ailing US fashion chain Francesca is aggressively working to downsize its real estate portfolio of more than 700 stores. The Houston-based company, which is not able to timely complete its annual report, also confirmed an undisclosed number of layoffs in late February. Due to lower traffic during the holiday season, Q4 estimated sales fell (press release) 14 percent to $119 million.





people

Leaving Schiaparelli. Bertrand Guyon is leaving French couture house Maison Schiaparelli, where he held the position of creative director for almost four years. After a 50-year hiatus following Schiaparelli’s closure in 1954, Diego Della Valle bought the label’s rights and archives in 2006 and created a collection with Christian Lacroix, which was not for sale. Regular business resumed under designer Marco Zanini, who arrived in 2013 for three seasons and was replaced by Guyon in 2015.





brands

Taking a chance. Cash-strapped US contemporary label Milly, which skipped (paywall) its NYFW show in February, and was sued by HL Group over unpaid bills in March, has been sold (paywall) to MMJ LLC, a subsidiary of the New York-based fashion company S. Rothschild. Milly was founded in 2000 by Michelle Smith and Andrew Oshrin. The label sold online and through luxury retailers including Neiman Marcus, Harrods and Shopbop.com.





last

Mourning Ira Neimark. Between 1975 and 1992, the former CEO of Bergdorf Goodman transformed a previously dull, expensive and intimidating store into one of New York’s top luxury retail destinations. The 35-year retail veteran started his career in his teens at Bonwit Teller and also worked for B. Altman before moving to Bergdorf Goodman. He died last Thursday at his home (paywall) in Harrison, NY. Neimark was 97 years old.







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