Jul
 02
 2019



Christopher

Hello,

Welcome to a new edition of The Spin. Yesterday many apparel and shoe brands rejoiced that President Trump has decided to talk trade again with China and Sweden's Fashion Council pulled the plug on Stockholm Fashion Week for the time being. And suddenly Costco has emerged a major fashion retailer. Enjoy the read and feel free to share it. Best, Christopher



markets

Sigh of relief. Yesterday was the first trading day since President Trump announced on Saturday that he was reopening trade talks with China and temporarily not raising tariffs. Wall Street responded positively at the news. The markets opened up and footwear stocks such as Nike, Crocs and Foot Locker all rose. The new tariffs were set to affect clothing, footwear and accessories and $300 billion worth of products.



Strike saga continues. The disagreement (paywall; translated by Google) over strikes between German department store group Galeria Karstadt Kaufhof and the trade union Verdi continues to simmer with former threatening the latter with a claim for damages due to strikes. Michael Müllenbach, head of human resources at Galeria Karsdadt Kaufof, recently told (in German) the German press that the strikes are a "poison" for the recently reorganized retailer and that it is considering seeking financial damages from Verdi. Last week the Labor Court of Berlin forbade Verdi from issuing an interim injunction to hold strikes at Karstadt stores.



Swedish stoppage. The Swedish Fashion Council has cancelled the next edition of Stockholm Fashion Week, which was scheduled to happen in August. The organization cited the changing fashion production schedule as the reason and said it would explore new options that embrace the future instead of the traditional fashion-calendar model. Rival Copenhagen Fashion Week, the most important fashion week in Scandinavia, will continue to take place and may absorb some of the Swedish brands who previously showed in Stockholm.





brands

More time to buy. A French court has given troubled brand Sonia Rykiel more time (paywall) to find a buyer. Potential investors now have until July 18 to make their bids for the knitwear label, which has been in receivership since April, and a decision will be rendered on July 25. A group of nine potential bidders has now been culled down to three – including a former Balmain executive, a French real estate family and a Chinese investor.



Killing Kimono. Kim Kardashian West has changed her mind about naming her new lingerie range Kimono. As we reported yesterday, she was accused of cultural appropriation for using the name and initially hoped to stick to her guns. However, she has now announced on Twitter and Instagram that she will come up with a new name "after careful thought and consideration."





retail

Through the roof. Although American member-only discount chain Costco is probably best known for its bulk non-fashion and food items, this retailer now boasts very impressive (paywall) figures when it comes to its clothing and footwear sales: $7 billion per year, which is more than Old Navy or Ralph Lauren. Annual revenue in those sectors has jumped about 9 percent each year since 2015, which is all the more surprising because the chain's 800 stores don't have dressing rooms or mannequins.



Evolving spaces. Physical store closures have become so plentiful that the local government of Akron, Ohio has issued a Vacant Building Registry and fines property owners if they don't plan to repair or reuse the buildings. However, the so-called retail apocalypse isn't entirely bleak. Some former department stores in the US are being transferred into innovative mixed-use centers that foster creativity and cutting-edge startups.





last

Museum quality. Paris' Pompidou Center wil soon add (paywall) fashion pieces to its permanent art collection – the first time this museum has done so. The announcement (in French) was made at a dinner at the museum over the weekend. However there is no word yet about what designs and designers will be included – or when.







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