MBS News
Friday
August 27, 2010
Moira’s Friday Column
I have just returned to the UK after nearly three weeks in the USA and, I must say, the trip was extremely enlightening. My sense is that the world's largest eceonomy is not yet out of recession and that business is tough for many, if not most, retailers. There seems to be a low level of consumer confidence, very little job growth and, depressingly, very little that was new and innovative - except, of course, for some amazing restaurants!
Stores like Walmart and Target, at the value end, are performing comparatively well and one-off, very up-market stores at the other end of the spectrum are also meeting budgets. It is those stores in the middle that are having a tough time.
I visited many retail parks and found them bland, samey, soulless and hard to differentiate, even from one city to another. Every store sells exactly the same merchandise and chains seldom, if ever, differentiate locally. Interestingly, Macy's has begun to reap the rewards of tailoring their merchandise to local markets, an initiative they started in 20 markets in 2008 and which last year they rolled out nationally. They have also targeted the teen market and their mothers with a new line called 'Material Girl', inspired by Madonna and her daughter. Macy's profits are up from $7m to $147m. Predictably, however, just as in the UK, there was a queue around the block outside the Apple store! They had just received a delivery of iPhone 4s which, by the afternoon, were completely sold out. Does it mean that consumers are happier indulging in consumer electronics than apparel?
Thanks to all of you for the emails with recommendations on restaurants in the USA. For me, the winner has to be The Spotted Pig in New York. Have a great week-end and do let me know what you think about buying locally, moira@thembsgroup.co.uk
Retail
Superdrug Set To Experiment With Virtual Make-Up
Superdrug is trialling virtual mirror technology in two of its stores to allow shoppers to experiment with different colours and shades of make-up.
Read more on www.retail-week.com »
Clas Ohlson Plans Store Acquisition Drive As It Aims To Go Nationwide
Swedish DIY, homewares and electricals retailer Clas Ohlson has laid out plans for a store acquisition drive to create a nationwide chain. There are currently seven UK branches, but there are plans for ten more in the current financial year.
Read more on www.retail-week.com »
Adams Bounces Back With New Concessions
Kidswear retailer Adams has made another attempt on the UK high street with the initial launch of its six concessions in independent department stores under its new ownership.
Read more on www.retail-week.com »
M&S Makes Tracks For Rail Distribution First
Marks & Spencer is to open its first distribution centre with a rail terminal as it proceeds with its 2020 business improvement strategy and Plan A sustainability programme.
Read more on www.retail-week.com »
Consumer Goods
Tic Tac Teams Up With The X Factor
Tic Tac is targeting the youth market with an on-pack promotion giving away tickets to The X Factor live shows and tour.
Read more on www.marketingweek.co.uk »
Hershey Appoints Importer And Distributor
American confectioner Hershey has appointed Euro Food Brands as its official importer and distributor in the UK to take advantage of significant growth opportunities in the country.
Read more on www.just-food.com »
Asahi Breweries To Acquire P&N Beverages
Japanese brewer Asahi has tabled a $323m (AUD364m) bid for Australia's third-largest soft drinks group, P&N Beverages, following its recent takeover of Schweppes operations in the country.
Read more on www.just-drinks.com »
Digital And Online
Gap Sites Go Live
Gap and Banana Republic have launched their long-awaited European transactional websites today.
Read more on www.retail-week.com »
Tesco Unwraps Party Brand To Rival Lipsy And Rare
Tesco is to take on young fashion partywear brands Rare and Lipsy with the launch of an exclusive collection created by east London designer DollHouse Fashions on its website.
Read more on www.drapersonline.com »
Fashion, Lifestyle And Luxury
American Apparel UK’s Future In The Balance Amid Liquidity Fears
Restructuring specialists Hilco and GA Asset advisors are circling the UK arm of US fashion retailer American Apparel as the future of the retailer hangs in the balance.
Read more on www.retail-week.com »
HMV Broadens Range With Fashion Brands Offer
Entertainment group HMV is expanding its fledgling fashion offer with the introduction of a raft of big-name brands next week. Although the brands have some music associations, their mainstream status represents an extension of the retailer’s clothing offer.
Read more on www.retail-week.com »
7 For All Mankind To Open Standalone London Store With Foray Into UK Retail
Popular US jeans brand 7 For All Mankind is expanding into retail in the UK with the launch of its first standalone store in London, in Notting Hill.
Read more on www.retail-week.com »
Kuyichi Opens First UK Store
Dutch ethical young fashion brand Kuyichi, has opened its first UK store in Manchester. The retailer plans to open up to ten franchise stores alongside a similar number of company-owned stores.
Read more on www.drapersonline.com »
Travel And Leisure
Record $24.2 Million Fine Proposed For American Airlines
American Airlines has been fined a record-breaking $24.2m by the American government, for maintenance violations which resulted in thousands of flight cancellations two years ago.
Prezzo Buys 11 Paramount Restaurants Sites
Casual dining chain Prezzo has bought 11 leashold sites and the Caffe Uno trademark from Paramount Restaurants for £3.1m.
Read more on www.caterersearch.com »
On The Move
Theo Paphitis Builds Team For DNA Lingerie Brand Launch
DNA Lingerie, the lingerie retail business being developed by entrepreneur Theo Paphitis, has appointed former Schuh head of ecommerce Dan Lumb as ecommerce director. Lumb has been replaced at Schuh by Sean McKee, who has been promoted from the role of divisional manager.
Read more on www.retail-week.com »
Andy Bond Gets A Wiggle On
Former Asda CEO and cycling enthusiast Andy Bond has taken a stake in fast-growing bikes etailer Wiggle and joined its board as a non-executive director.
Read more on www.retail-week.com »
M&Co Appoints Fashion Veteran As Buying Director
Value retailer M&Co has appointed fashion retail veteran Sim Scavazza as buying director. She replaces Louise Koser, who is leaving to become managing director of off-price furniture retailer HomeSense, sister chain to TK Maxx.
Read more on www.retail-week.com »
Bench Owner Hires e-Commerce Head
Americana International, owner of young fashion brand Bench, has appointed its first head of e-commerce in a bid to drive online sales. Nik Burton has joined from Thomas Cook-owned travel company Gold Medal Travel, where he held the same role.
Read more on www.drapersonline.com »
Findus Nabs Nestlé Man For New Nordic Role
Findus Group has established a dedicated Nordic business division and appointed Jari Lavanten, general manager of Nestlé in Sweden, as managing director of the Nordic team.
Read more on www.thegrocer.co.uk »
The Weatherman Says...
Watches - handbags for men? Many men love watches. Girls like 'em too but they can usually stop at one. Some girls have 27 handbags (and more). I know a guy with over one hundred watches. A watch is, for many men, their only serious piece of jewellery. Plus...it's a machine and we know what boys are like about machines. Watches combine fashion with functionality. It is very very very damp outside at the moment. Oh, for the days of childless entire days in bed!