Welcome back! Retail news dominate today's issue of The Spin. As Neiman Marcus struggles with shrinking revenues and growing losses, Nordstrom adapts to new market conditions by putting six restaurants in its planned New York flagship. Meanwhile, liquidators continue to profit from the retail gloom - and from the effects of tougher US bankruptcy laws, which were implemented in 2005. Enjoy the read and feel free to share! Best, Ulrike


Dead or Alive! The continuous flow of failing retail companies, which is partially due to a change in US bankruptcy law in 2005, continues to be great fodder for liquidators who specialize in the winding down of large chains. The new code dramatically reduced the time frame for restructuring efforts, forcing more retailers into liquidation. Liquidators usually operate quickly, often putting less emphasis on retaining reasonable margins.

Fashion missteps. Due to (paywall) its massive debt levels, new tech investments, a lack of compelling fashion products, and a rise in promotions, US luxury retailer Neiman Marcus recorded lower Q3 sales and a bigger loss. Total revenues of the group, which includes Bergdorf Goodman, MyTheresa, Cusp, Horchow and Last Call, fell 9.4 percent to $1.06 billion, as net loss grew from about $20 million to over 31 million.


Selfies vs Service. Brands and physical retailers across the globe currently strive to bring in more traffic by creating more immersive, experiential shopping environments. While this approach keeps generating massive social media attention, some question its ability to actually generate significant sales increases. Especially, if silly experiences come at the expense of meaningful service…

Reversal of Fashion. Fostered by social media and TV shows like Rupaul’s Drag Race, drag has become increasingly popular among mainstream consumers. As the movement to “not fit in” goes mainstream, there is a danger of over stimulation, and a reversal of the meaning of the once so rebellious message.


Delta Galil. Delta Galil is going to buy Hong Kong-based lingerie company The Bogart Group, which makes intimate apparel and swimsuits for brands like Victoria’s Secret, Jockey and Hanes, as well as its subsidiaries, lace manufacturer Brunet and padding maker B&B. Under the purchasing agreement, Delta Galil will not pay anything up front but take over $105 million in debt including a $26 million loan it made to Bogart itself.

Closing the Open. Insolvent Gerry Weber Group is withdrawing (paywall; translated by Google) as the main sponsor of Germany’s Gerry Weber Open tennis tournament. The event has been renamed Noventi Open, reflecting the new title sponsor, German health service provider Noventi. The tournament was launched in 1993 by Gerry Weber founders Gerhard Weber and Udo Hardieck, who built a stadium near the company's Halle-based headquarters.


Movin' on up! Cheryl Abel-Hodges has been named (press release) CEO at Calvin Klein, making the brand's long-time executive its first female CEO. Abel-Hodges most recently held the position of group president, Calvin Klein North America and Underwear Group. She succeeds Steve Shiffman, and reports to Stefan Larsson, the president of Calvin Klein's holding company, PVH Corp.


Buon apetit! Nordstrom's New York women's flagship, due to open in October, will have six restaurants - the highest number ever featured in a Nordstrom store. For this, Nordstrom is working (paywall) with well-known chefs from its home base of Seattle, including Ethan Stowell and Tom Douglas. In addition, the store's shoe floor will have a shoe bar offering cocktails and food.


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