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June 2024 | Newsletter No. 12
Baker Retail Rundown
Stay in the know with monthly retail challenges and our rundown of top retail industry news, curated by our talented team of Penn student analysts.
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Abercrombie & Fitch reported record first-quarter earnings with a 22% sales increase. CEO Fran Horowitz attributed this to enhanced marketing and improved omnichannel experiences. Abercrombie's same-store sales rose 29%, and Hollister's increased by 13%. The company's "Always Forward Plan" drove growth through data-driven strategies and digital marketing, leading to an increased 2024 sales growth forecast of 10%.
Amazon has delayed a new seller fee after backlash from its merchants. This fee charges merchants using Fulfillment by Amazon if they don't maintain sufficient inventory levels. CEO Andy Jassy's cost-cutting strategy aims to boost profits amid competition from platforms like Temu and TikTok Shop. Despite easing the fee implementation, merchants remain frustrated, citing lack of guidance on managing inventory from Amazon.
This week, the fashion world is buzzing with innovation. P180, a new rental-focused venture by Christine Hunsicker and Brendan Hoffman, aims to boost brand profitability through rentals. Luxury retailer Steven Dann is launching an exclusive members-only shopping club in NYC, offering personalized styling. Meanwhile, Mytheresa expands its resale program with Vestiaire Collective, allowing all customers to sell pre-loved luxury items for store credit. These moves highlight a shift towards creative business models and personalized shopping experiences.
Arkhouse Management and Brigade Capital have made a bold $5.8 billion bid to take Macy's private. However, Macy's recent success, with profits surpassing expectations and an optimistic full-year forecast, boosts CEO Tony Spring’s confidence in his turnaround plan. Macy’s is thriving, especially in women's shoes, men's tailored clothing, and beauty products, thanks to new products and improved customer experiences. With shares up 3.4% following the news, Macy's strong performance may outshine the buyout offer.
L’Oréal Group revealed its latest AI-driven personalization innovations and partnership with Meta at VivaTech. The New Codes of Beauty Creator Program will see L’Oréal Paris, Lancôme, and La Roche-Posay collaborating with 30 creators using 3D, VR, and AR. Highlights include the AI-powered Beauty Genius for personalized beauty advice, Kiehl’s Derma-Reader for tailored skincare, and YSL’s Scent-Sation for custom fragrances.
