Aug
 09
 2019



Christopher

Hello,

Happy Friday and welcome to today's edition of The Spin. Once again, retail accounts for the bulk of the headlines. There are more outlet malls in Europe than ever before – and more are coming. Bloomingdale's is starting a new rental service, Debenhams is getting a new CEO and Nordstrom has fixed its salary imbalances. Meanwhile, Mango and Farfetch remain in the red. I hope the read is informative – and your weekend super fun! Best, Christopher



retail

Outlets are in. Outlet centers in Europe now cover more than 3 million sq. meters of space, a new record, according to a recently released research by ecostra GmbH. There are now 181 such centers there and six new ones opened in the last year alone. And the outlet building boom is set to continue with an additional 46 being planned or already under construction. In Germany, outlet market share is expected to more than double (paywall; translated by Google) from 2.3 percent to 5 percent in the coming years.


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Bloomingdale's new biz. Bloomingdale's has become the first major US department store to hop on the bandwagon and launch a clothing rental subscription service. Next month it will start offering (paywall) "My List at Bloomingdale's" for $149 per month. Each month subscribers will will receive four women's items from a selection of more than 60 brands and a new assortment of four more once the box's contents are returned.



Still in debt. Mango, which has just entered the Canadian market as part of its foreign expansion, released its annual earnings report (paywall; translated by Google) yesterday. Its EBITA was up 17 percent to €35 million and sales rose nearly 2 percent to €2.2 billion. However it still owes €315 million in debt as part of a refinancing agreement it signed last year.



Equal pay. After a careful review of its payroll, Nordstrom has announced that it has achieved pay equity for all of its employees across all genders and races, or that it pays equal pay for equal work. The store also said that it is nearing pay parity, or 100 percent equal gender representation, in all of its segments and levels. Its chief human resources officer noted that "equality and diversity make us all stronger."



Delivery divorce. Amazon building its own delivery service has cost it a business partner. FedEx announced on Wednesday that it will not renew its ground delivery contract with the online giant at the end of the month. The news comes two months after FedEx dropped Amazon from its air cargo services.





people

Duddy departs. Troubled high street retailer Debenhams is getting a new CEO. Executive chairman Terry Duddy, who came aboard last year, will leave next month and is being replaced by Stefaan Vansteenkiste, a turnaround specialist who was named chief restructuring officer in April. The board made the appointment in the hopes that the new chief can navigate the chain through the crucial holiday selling season. Debenhams plans to close 50 of its 166 stores starting early next year.





brands

China syndrome. Adidas released its Q2 earnings report yesterday and though the numbers were positive CEO Kasper Rorsted noted that if a currency war erupts between the US and China that it will negatively affect the brand's business as its revenue from China was up 14 percent compared to the same period last year. Overall profits were up 34 percent to €531 million and revenue rose nearly 5 percent to €5.5 billion.



New Guards' new owner. Milan-based New Guards Group, the parent company of brands such as Off-White, Palm Angels and Heron Preston, has been acquired for $675 million by Farfetch. The two companies' combined resources plan to create so-called "brands of the future" and further develop New Guards Group's current portfolio. And while it's an impressive purchase it did not impress Farfetch's investors who saw the company's stock price plunge almost 30 percent yesterday in the wake of the announcement and the news of a Q2 net loss of $89.6 million.







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