No images? Click here January 2024 | Newsletter No. 8 | #retailrundownBaker Retail Rundownby Leo Contreras & Sophie Shao Stay in the know with our rundown of the previous month's top retail industry news, curated by our talented team of Penn student analysts. Walmart and Amazon showcased their tech innovations at CES, revealing distinct strategies. Amazon streamlined operations with job cuts, focusing on impactful initiatives, while Walmart expanded its physical presence and invested in AI and robotics. Both companies integrated AI into operations for improved customer experiences and are vying for dominance in healthcare. Mango, the Barcelona-based fashion company, is opening a virtual store on Roblox. Mango’s goal is to connect with its customers in every single platform possible. It is a significant milestone for Mango because it’s an expansion of fashion to the virtual space for the company. The brand said it is expecting to open 500 new stores by 2026 across the U.S., Spain, France, Italy, the U.K., India and Canada. Other brands are also planning to launch virtual stores on Roblox. One of the most popular viral fashion trends of the previous year was quiet luxury. This trend represents understated, subtle displays of opulence and popular shows like HBO series “Succession” have also played a part in boosting its popularity. Unlike other fads on TikTok or Instagram that came and went quickly, quiet luxury has demonstrated significant returns and found its way into investment portfolios. Some of the top companies that have benefited from this new wave are Hermes, Miu Miu, Brunello Cucinelli, Compagnie Financière Richemont and Swatch Group. Apparel retailers are facing new supply chain disruptions due to attacks on commercial ships in the Red Sea by Houthi rebels in Yemen. This situation has forced companies to reroute shipments, adding to transit times and costs, and raising the risk of out-of-season merchandise due to delays. The disruption particularly impacts European markets and U.S. companies importing from South Asia through the Suez Canal. The situation could lead to increased demand for air and land transportation, potentially affecting all retailers and increasing shipping costs. Macy's shares rose after the company rejected a $5.8 billion takeover bid from Arkhouse Management and Brigade Capital Management, who now plan to appeal directly to shareholders. Despite struggles with changing consumer habits and a debt-laden balance sheet post-pandemic, Macy's has improved its financial position under CEO Jeff Gennette through refinancing, inventory management, and reducing costs. The company's real estate assets, valued at around $8.5 billion, have drawn interest from private equity firms, with Macy's remaining open to opportunities that benefit the company and shareholders. Arkhouse and Brigade are considering increasing their offer, asserting that Macy's potential is best realized as a private company. |