Retail News CRM

Category: Fashion

Retail News Asia is committed to providing both local and global retailers with the latest Fashion news throughout the Asian market. This on a daily base.

  • Abercrombie & Fitch sales continue to climb

    Abercrombie & Fitch sales continue to climb

    Abercrombie & Fitch sales rose for the second consecutive year as its restructure and new store format begins to pay off. Comparable sales rose by 3 per cent in the year to February 2, to US$3.6 billion and operating income, after excluding extraordinary items, was $138.6 million compared to $100.8 million last year. However fourth-quarter sales fell by 3 per cent.

    CEO Fran Horowitz said the fashion retailer achieved an improvement in gross profit and reduced operating expenses, resulting in a 77-per-cent improvement in net income.

    “We continue to keep the customer at the centre of everything we do and are excited about the future of our brands. Our transformation initiatives are gaining traction and keeping us on track to deliver our previously disclosed fiscal 2020 targets.”

    Neil Saunders, MD of GlobalData Retail, said while the sales decline during the fourth quarter looks poor on the surface, the dip is a function of a calendar shift and a shorter trading period compared to last year.

    “The comparable Abercrombie & Fitch sales figure, which strips out these negative influences, provides a more balanced assessment of performance and here we believe A&F continues to deliver good growth. The comparable growth rate of 3 per cent is particularly impressive when set against last year’s stellar 9 per cent uplift.”

    He said there was now a clearly evident divergence between the performance of the Abercrombie and Hollister brands. The former posted a 2 per cent decline in comparables with the latter recording an impressive 6 per cent uplift.

    “In our view, Hollister is a brand that is strongly connected to its core customer base, both through impressive marketing and an assortment that is attuned to their needs and tastes. Our own tracking shows that the brand has strong traction and is attracting and converting a core group of shoppers on a regular basis at the same time as adding some new shoppers into the mix. Provided Hollister remains on trend with its range – and we see no reason why this should not be the case – we believe it should continue to perform well as the company moves into its new fiscal year.”

    Saunders said that while Abercrombie’s performance was a little soft this time around, the brand was up against tougher prior year figures.

    “Nevertheless there has clearly been a loss of momentum. Our data show that affinity to the brand, although much improved, is a more tenuous than Hollister. This means that Abercrombie was more exposed to the loss of consumer momentum in the general economy after Thanksgiving and Black Friday.”

    But he said the brand continues to show good potential and there were a number of fashion wins over the period, including good traction in outerwear.

    “Despite the slowdown we remain confident that Abercrombie is on the right track and can improve its numbers as it fine-tunes both marketing and merchandising.”

    Lees ook:

    Lees ook:

    Lees ook:

  • Diesel files for bankruptcy

    Diesel files for bankruptcy

    Famed denim streetwear brand Diesel USA has collapsed, filing for bankruptcy protection in Delaware.

    According to papers filed with the court, the company has up to $100 million in assets and as much as $50 million in debts. The company filed for bankruptcy after unsuccessfully lobbying landlords for rent reductions.

    However under a three-year proposed restructuring program, Diesel says it does not plan to reduce its store network, rather to find more affordable locations.

    Diesel USA has 28 retail stores across the country and about 380 employees. It also wholesales through department stores and specialty retailers

    In the 1990s and early 2000s, Diesel USA, the North American unit of Italian-headquartered Diesel SpA, was at its peak, “dominating pop culture”. As a result it was commanding a high premium for its clothes and could justify seeking high-profile – and thus high-rent – locations in major cities across the US.

    Now those leases are no longer affordable and landlords seem reluctant to reduce rents to maintain a tenant no longer at its peak of popularity. The company has managed to get a reduction on only a single store despite a year of negotiations.

    Bloomberg reports the company had also been affected by several instances of cyber fraud and theft, costing it about $1.2 million.

    Lees ook:

    Lees ook:

    Lees ook:

  • H&M opening a Tauranga Crossing store

    H&M opening a Tauranga Crossing store

    Fast fashion retailer H&M announced it will open its fifth store in New Zealand on April 4 in Tauranga Crossing, Bay of Plenty. The new store, set in 1600sqm, will have two levels and will feature apparel and accessories for men, women, youth, kids and baby, and its home concept.

    “We are thrilled to finally be opening a store in the Bay of Plenty region and offer our customers an incredible fashion destination within a superb shopping centre” said Daniel Lattemann, country sales manager for H&M New Zealand.

    “We are also looking forward to introducing our H&M Home concept as we know it has been a customer favourite since making its New Zealand debut in 2017.”

    H&M entered the New Zealand market in 2016 and opened its first store at the Sylvia Park mall. The retailer’s other stores are located in Commercial Bay in Auckland, The Crossing in Christchurch and Queensgate in Wellington.

    The Swedish fashion retailer also announced recently it will open a third Auckland store which will be located at the Botany Town Centre and will be launched in autumn 2019.

    Last month, H&M posted a drop in profits for the year ending November 30, blaming the decline on its investment aimed at boosting its online business.

    The world’s second largest clothing retailer embarked on a transformation program last year, investing heavily in logistics and digital technology aiming to improve shopping experience and product selection. This includes an upgrade in its mobile app, faster deliveries and the rollout of click-and-collect.

    In the last three months of its financial year, the company spent around 450 million Swedish crowns on logistics and technology, including resolving problems it flagged earlier in 2018.

    H&M chief executive Karl-Johan Persson said the upgrade in their logistics systems inevitably resulted in increased costs but will lead to a range of improvements for their customers.

  • Manifesto opens first Mandarin Gallery flagship

    Manifesto opens first Mandarin Gallery flagship

    Multi-brand concept store Manifesto has opened a new flagship store on Singapore’s Orchard Road. Manifesto’s new space in Mandarin Gallery envelopes guests in “the stark and abstract beauty of the Saharan landscape”, featuring sand colours and organic rock-like contours.

    Inspired by North African architecture, the store uses natural desert hues to reflect the warmth and hospitality. The entrance recalls a nomadic tent, highlighted by LED lights.

    “The design direction reflects our philosophy. We want to welcome customers, wanderers, the same way Bedouins welcome strangers under their tent,” said Manifesto founder Walid Zaazaa.

    The new store offers more than 30 brands encompassing fashion, streetwear and lifestyle accessories, including a curation of hard-to-find brands in Southeast Asia: APC, Lemaire, and Axel Arigato.

    “The most important selling point of our product is scarcity. We have brands of different aesthetic, origin and prices. The common thread between them is how they express their identity through products that are easily wearable, made with outstanding quality, and have interesting stories,” Zaazaa added. The multi-use concrete cashier counter was cast on site and infused with red pigment.

  • Customer-first strategy turns out profitable for Myer

    Customer-first strategy turns out profitable for Myer

    Myer CEO John King’s turnaround plan passed its first real test on Wednesday when the retailer reported a 3.1 per cent year-on-year increase in net profit after tax in the first half of FY19 to $41.3 million.

    While total sales fell 2.8 per cent to $1.67 billion and like-for-like sales fell 2.3 per cent in the half, King told investors he was not concerned, since the company has stopped chasing sales growth for the sake of it and is focused on increasing store profitability and growing online moving forward.

    Online sales were up 18.6 per cent in the half to $151.2 million, buoyed by a strong Q2, in which Myer did over $10 million in online sales over Cyber Weekend and had its biggest online sales day ever on Boxing Day.

    Operating gross profit margin improved 99bps to 38.5 per cent in the half, thanks to a renewed focus on exclusive brands. The company revealed that it is in the process of introducing more than 20 exclusive-to-Myer brands, most of which are international brands.

    The department store noted a 1.3 per cent improvement in its cost of doing business in the half, which it attributed in part to the rollout of a new workforce management system, which has improved its ability to roster employees to meet customer demand.

    EBITDA improved 4.9 per cent to $113.6 million.

    “This result demonstrates the positive customer response to a number of initiatives from our Customer First Plan, particularly during the all-important Christmas and Myer sale periods,” King said in a statement on Wednesday.

    The turnaround plan, which King announced last September, is based on three key priorities: transforming the customer experience in-store, expanding the company’s ‘Only at Myer’ brands and categories and offering value for money and improving Myer’s online offering.

    The retailer implemented a number of customer-centric initiatives in the half, including improving store layouts and localising merchandise in 23 stores in the network, and relaunching Myer’s ‘MyStore’ campaign, which King said has been well received by customers.

    Myer also launched a new website in October, which King said performed well during the major online shopping events in the half. The retailer is now looking to increase the number of products it offers online, which will enable it to reduce its selling area in certain centres, and to move the fulfilment of online orders from stores to a centralised distribution centre.

    In a call to investors on Wednesday, King said there is still a lot of room to cut costs and improve profitability by reducing the size of certain bricks-and-mortar stores in the network and improving the range and service in stores.

    Lees ook:

    Lees ook:

    Lees ook:

  • LuLu Group opens first Build-A-Bear store in India

    LuLu Group opens first Build-A-Bear store in India

    LuLu Group International’s retail arm Tablez has launched the first Build-A-Bear store in India. The American personalised, experiential toy-retail brand is now available at Toys R Us in Phoenix Marketcity, Bangalore. Selling customised stuffed toys, the firm aims to reach 9 million sales in the top 15 cities in India within five years out of standalone stores and Toys R Us shop-in-shop formats.

    “The Build-A-Bear concept is a one-of-a-kind retail experience, and we are thrilled to open the first store in Bangalore,” said Tablez MD Adeeb Ahamed. “Build-A-Bear is synonymous with creativity and novelty for children. I am sure that each child that enters our store will cherish their experience and leave with an indelible memory.

    “From standalone stores to shop-in-shop formats, Build-A-Bear is ready to reach out to families and kids in India and help loved ones create memories and spend more time together. We plan to open 20 standalone stores of Build-A-Bear across key cities in India over the next 10 years, along with shop-in-shop formats across all our Toys R Us stores as well,” he said.

    The Build-A-Bear brand is best known for its “Choose Me” wall, from which each guest can choose an unstuffed animal to bring to life. It has close to 500 stores globally.

    Lees ook:

  • Adore Beauty to launch New Zealand before Summer

    Adore Beauty to launch New Zealand before Summer

    After putting international expansion plans on ice for the past few years to focus on growth in its home market of Australia, e-commerce business Adore Beauty is ready to go overseas again, and the first stop is New Zealand. According to Kate Morris, Adore Beauty’s founder and CEO, the Australian business will launch a localised website in New Zealand within the next six months. This will be accompanied by a local marketing campaign to increase awareness of the brand in the market.

    “The offering will be more competitive, and we’ll be looking to make ourselves a bit easier to find for New Zealand customers,” Morris told.

    Adore Beauty has shipped internationally since it launched in 1999, but in the past, the experience was less than ideal for overseas customers, since prices were in Australian dollars.

    In January 2017, the company partnered with Borderfree, a tech solution that enabled customers to see different currencies, payment methods and customs and taxes, depending on their location.

    This was always intended as a stop-gap solution to improve the international shopping experience until the business had capacity to think about international expansion again, according to Morris.

    “It wasn’t an area of focus; we weren’t spending any marketing dollars outside of our Australian consumers,” Morris said about international sales over the past few years.

    That has changed, as Adore Beauty recently completed a significant warehouse transformation project with HighJump, which saw its capacity triple to 4500sqm. This will enable the online beauty retailer to support its growing Australian business, while servicing new customers.

    “You’ve got to make sure you keep up your promises to the customers you already have before expanding out and trying to support new ones,” Morris said.

    “Part of our brand is the service level [we provide] and our reliability. Unless we can execute on that wherever we go, what’s our offering? We need to be consistent with our brand.”

    Morris said the New Zealand launch is just the first part of Adore Beauty’s expansion plans. It marks the “reopening of international generally”, she said.

    Lees ook:

    Lees ook:

    Lees ook:

  • Superdry opens the first New Zealand store

    Superdry opens the first New Zealand store

    Sports fashion brand Superdry will open its first store in New Zealand next month in the heart of Auckland’s Queen Street shopping district. The new store, which will feature Superdry’s iconic jackets, menswear, womenswear, accessories and snow gear categories, will be the 18th Superdry store opened by Brand Collective, which first secured the international licence in 2007.

    Coinciding with the store announcement, the brand on Wednesday launched an online offering in New Zealand, catering and shipping to local customers.

    Antony Hampson, brand general manager, said the expansion in New Zealand is a natural step for the brand.

    “With a population of 4.7 million, New Zealand offers a significant opportunity for the Superdry brand,” Hampson said.

    Superdry has over 500 stores worldwide in over 40 countries. New Zealand is the 47th country the brand has entered.

    Lees ook:

    Lees ook:

  • Gap spinning off Old Navy business

    Gap spinning off Old Navy business

    Gap plans to spin off and float its Old Navy business, creating two independent publicly traded companies. Old Navy will operate only its own brand, while the as yet unnamed company – dubbed NewCo for now – will own the Gap brand, Athleta, Banana Republic, Intermix and Hill City.

    “It is clear that Old Navy’s business model and customers have increasingly diverged from our specialty brands over time, and each company now requires a different strategy to thrive moving forward,” said Gap’s chairman Robert Fisher in a statement.

    “Recognising that, we determined that pursuing a separation is the most compelling path forward for our brands – creating two separate companies with distinct financial profiles, tailored operating priorities and unique capital allocation strategies, both well positioned to achieve their strategic goals and create significant value for our customers, employees and shareholders.”

    NewCo will launch with about $9 billion in annual revenue and a strong balance sheet.

    Old Navy, a value-focused brand which is currently one of the fastest-growing apparel labels in the US, will have annual revenue of about $8 billion.

    In a statement, Gap said separating Old Navy would allow it to capitalise on its scale, broad customer awareness and unique positioning to extend its category leadership and deliver profitable growth as an independent company.

    “Through this separation, Old Navy will have the flexibility, focus and control needed to increase customer access by further applying its strategic real estate strategy, evolving its omni-channel model and expanding its product categories to continue to successfully resonate with value-focused customers. Old Navy will be well positioned to invest in capabilities and initiatives that will continue to grow its market share.”

    After the split, Gap Inc’s current president and CEO Art Peck will hold the same position with NewCo.

    Sonia Syngal, current president and CEO of Old Navy, will continue to lead the brand as a standalone company.

    Lees ook:

  • H&M launches a new collection with gender-neutrality

    H&M launches a new collection with gender-neutrality

    Fashion giant H&M has teamed up with Swedish streetwear brand Eytys to launch a gender neutral fashion collection that will go on sale in selected stores worldwide on January 24. The new unisex collection, which is being designed in collaboration with H&M, will feature footwear, apparel and accessories for men, women and kids.

    The footwear collection will include new takes on a number of Eytys’ signature chunky-soled styles and will come in custom-designed boxes decorated by painter Zoe Barcza.

    “With this collaboration, we hope to introduce the H&M customer to our design philosophy of robust and fuss-free design where function triumphs embellishment and style spans genders,” said Max Schiller, creative director at Eytys.

    “The collection is all about proportions – creating a distinct unisex silhouette by playing around with loose silhouettes and chunky architectural footwear. It’s the Eytys idea of a ‘generic’ look, one that is meant to elevate integrity, attitude and confidence.”

    According to H&M, the Eytys design approach and overall ethos are rooted in the digital age, but also in freedom from restraints based on gender or age.

    “Together the brands have extracted the core of Eytys DNA and developed a unisex collection featuring a no- fuss and fashion-forward range of shoes and clothes.”

    Schiller said H&M admired Eytys’ distinct look and initially approached the company with the idea of creating a shoe collection.

    But after initial brainstorming, it was decided to create a full gender neutral fashion collection – shoes, clothes and accessories – and enable customers to experience the whole brand aesthetic and ethos, he said.

  • First Under Armour India store’s a Fact

    First Under Armour India store’s a Fact

    Under Armour India is about to open its first store after testing the market online. According to Jason Archer, MD at Under Armour’s Asia-Pacific region, the company has set up a wholly owned Indian subsidiary. It will be led by former Adidas veteran Tushar Goculdas as MD.

    “We are investing in Asia Pacific as there are long-term growth opportunities. We have been concentrating in China over the last few years. Over the next couple of weeks, we will be establishing our retail presence in India,” Archer told.

    Under Armour India will start operations by opening stores in metro locations after assessing the market potential online through partnerships with Amazon and Flipkart-owned Myntra.

    “We will start operations by selling our global portfolio of training and running products,” said Archer.

    Lees ook:

    Lees ook:

  • Luxury French brand Faure Le Page heading to Singapore

    Luxury French brand Faure Le Page heading to Singapore

    Luxury French brand Faure Le Page will open its first Singapore flagship store this June, at Takashimaya. The store will be the fashion brand’s first in Southeast Asia and its ninth worldwide.

    Designed to resemble a garden, the boutique will pre-launch a collection of bags and accessories, specially designed for the local market.

    Known for its handbags and accessories, the brand will be distributed exclusively under a franchise agreement with FJ Benjamin Holdings.

    “Fauré Le Page is a prestigious brand in France with more than 300 years of history and a grand tradition of craftsmanship,” said Nash Benjamin, FJ Benjamin CEO. “Although its gunsmith origin is legendary in France, in recent years, it has developed a cult following for its handbags, small leather goods and accessories.

    “We are confident that our discerning customers in Singapore and the rest of the region will fall in love with the brand’s exquisite design and superior quality,” he added.

    Lees ook:

    Lees ook:

    Lees ook:

  • H&M names first Philippine ambassador

    H&M names first Philippine ambassador

    H&M has named Nadine Lustre as its first Philippine ambassador.

    The endorsement deal comes with a special swimwear collection to be launched in the Philippines next week.

    Nadine Lustre has more than 5.9 million followers on Instagram, and is considered to have a highly visible presence among today’s youth.

    “It was a whole new experience working on the campaign. It didn’t feel like we were working at all. I felt creative the whole time, and that, for me, is one of the best feelings ever,” Lustre told.

    H&M has previously worked with some of the biggest names in pop culture including Beyonce, David Beckham, Diane Kruger and Namie Amuro.

    Lees ook:

  • Lancome Bangkok pop up store in a fantasy wonderland

    Lancome Bangkok pop up store in a fantasy wonderland

    Lancome’s fantasy wonderland pop‑up at Bangkok King Power Rangnam, featuring the brand’s first ever interactive LED projection, will come to a close on March 10.

    The Chinese New Year Lancome pop-up was launched on February 4 following the success of Lancome’s festivities at King Power Rangnam the previous year. In keeping with the brand’s stated commitment to “empower women to express their best selves”, Lancome’s “Wish Big” pop-up featured a state-of-the-art LED installation that went up to the atrium ceiling, surrounded by floating lanterns symbolising wishes rising into the heavens.

    Guests enjoy real-time interaction with the retail design as they walk around the 10‑metre-long LED installation. The wonderland-inspired design is fully integrated with the entire retail space, allowing Lancome to completely take over of the Rangnam atrium.

    Every single visible touchpoint and the six‑metre-high chateau structure is branded with Lancome’s signature shade of Parisian rouge, wishing visitors a good start to the New Year and contributing to the festive CNY atmosphere.

    The immersive experience in Lancome’s wonderland continues inside the pop-up with a custom “boomerang photo booth” that allows visitors to virtually interact with Lancome products. All photos and videos can be downloaded so visitors can share them on social media. On the other side of the pop‑up, a large LED installation displays a Parisian cityscape that doubles as an interactive game, giving customers  the chance to “catch” floating Lancome products on screen and exchange them for prizes in store.

    “King Power aims to elevate the experience of duty‑free shopping through the careful curation of our retail offerings,” said King Power Group’s senior executive VP Susan Whelan. “Particularly during this holiday season when more people will be travelling, we want to make our customers feel right at home here with us.”

    “We are committed to bringing greater happiness to each and every one of our customers, and we hope that their experience with Lancome here will create more happy moments and happy memories for a wonderful start to the year ahead,” said Lancome Travel Retail Asia Pacific GM Tao Zhang.

    The pop-up also offers travellers a range of exclusive gift-with-purchase, all styled to reflect the flying pig that Lancome has chosen as its symbol for the new year.

    Lees ook:

    Lees ook:

  • Victoria’s Secret parent to close stores as sales stagnate

    Victoria’s Secret parent to close stores as sales stagnate

    L Brands, the parent of Victoria’s Secret, saw its share price fall 8 per cent after releasing disappointing results and halving its dividend payout. The US-headquartered company is struggling to arrest declining revenue in its flagship lingerie network, where same-store sales fell 8 per cent in January, contributing to a 1 per cent drop in overall sales. Online sales, however, rose by 8 per cent.

    Overnight, subsequent to releasing its results, the company said it would close 53 stores in North America. Earlier this year it said it would reintroduce swimwear to its range after an absence of several years to increase foot traffic in stores.

    Net sales for the year to February 2 were US$13.237 billion compared to $12.632 billion for the 53 weeks ended February 3 last year. Adjusted to take account of the extra week, sales rose 3 per cent in the latest year.

    But after excluding significant one-off items, the company’s adjusted net income this year was $786.7 million compared to $919.5 million for the 53-week period last year.

    As a result of that decline, L Brands cut its quarterly dividend from 61 cents per share paid last year to just 30 cents.

    Analyst Randal Konik of Jefferies said L Brands’ banners “are not wanted anymore”.

    “Keep in mind that comps remain negative despite very high promos, which means true brand demand is even worse than reported as some consumers buy things when they are given away for free or marked down by more than 50-75 per cent,” he said.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook: