Retail News CRM

Tag: Fashion

  • Uniqlo Singapore Switches to Eco-friendly Paper Bagsto Reduce Single-Use Plastic

    Uniqlo Singapore Switches to Eco-friendly Paper Bagsto Reduce Single-Use Plastic

    From 2 March onwards, UNIQLO Singapore will replace plastic shopping bags with eco-friendly paper bags, as part of the company’s global efforts to create a sustainable business that considers for the environment. To further promote reducing the use of traditional shopping bags and making effective use of resources, UNIQLO will be launching a new eco-friendly tote bag at SGD$2.90 and will price its eco-friendly paper shopping bag at SGD$0.10 each.
     
    This comes after the announcement by Fast Retailing Group, the parent company of UNIQLO, in July 2019 to eliminate the use of unnecessary plastic throughout its supply chain, and to reduce the amount of single-use plastic handed to customers, including shopping bags and product packaging. The aim is to reduce single-use plastic by 85% or around 7,800 tons annually by the end of 2020.

    “Respect the Environment” is one of UNIQLO’s six priorities for sustainability, and together with Fast Retailing, it is proceeding to eliminate all forms of waste and establish a business with minimal impact on the environment. Environmental pollution from plastic waste is a growing concern worldwide, and UNIQLO is taking action to reduce unnecessary single-use plastic from its operations. This will help minimise the environmental impact of its business, while offering products and services customers can use with confidence.

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  • Bossini profit down as protests hit Hong Kong sales

    Bossini profit down as protests hit Hong Kong sales

    Apparel retailer Bossini has revealed a loss of HK$93.7 million (US$12 million) during the six months to December – more than triple the $25.7 million loss of the same period a year earlier.

    Sales were down 20 percent from $875 million to $699 million ($89.9 million).

    The bleak results were not unexpected, after the company filed a profit warning last week estimating a deficit ranging between $85 million and $105 million.

    While 58 percent of Bossini’s revenue comes from Hong Kong and Macau, the group has a presence in 30 countries and regions around the world and 1086 stores in all, of which 287 are company-run the remainder franchised. China accounts for 23 percent, Taiwan 11 percent and Singapore 8 percent.

    Overall sales per square foot fell 18 percent from $4000 to $3300 across the Bossini network. In Hong Kong and Macau retail sales were down by 29 percent as protests and geopolitical issues decimated the number of inbound mainland Chinese tourists. Sales on the mainland fell by just 3 percent.

    Chairman Bess Tsin said in the interim results that Hong Kong is poised to recover from months of social activities with government stimulus plans long-awaited to ease social and economic hardship, “in spite of political turmoil that will likely continue weighing on domestic activity”.

    “Disastrously, the novel coronavirus infection threat is heavily weighing on inbound tourism and local consumption sentiment is expected to last months, bringing another blow to the fragile economy. The business environment for retail trade has become even more difficult.”

  • Calvin Klein and AllSaints Ban fur Acrross Ranges

    Calvin Klein and AllSaints Ban fur Acrross Ranges

    Hong Kong fashion brands management firm Global Brands Group says it will ban fur across its Calvin Klein and Allsaints clothing ranges.

    The ban is not the group’s first of its kind, according to a report by Livekindly. In recent years it has already moved to ban ostrich skin and angora wool.

    “Peta applauds Global Brands Group for its compassionate and business-savvy decision to ban fur,” said animal rights organization Peta (People for the Ethical Treatment of Animals) executive VP Tracy Reiman, “which shows that the future of fashion is vegan.”

    Other major clothing brands placing similar bans include Gucci, Burberry, Karl Lagerfeld, Prada, and Chanel, as has retail giant Macy’s, owner of Bloomingdales. Gucci’s president and CEO Marco Bizzarri has said publicly that animal fur is “outdated”.

    “Over the past two years, we have been closely following consumer and brand trends, listening to our customers and researching alternatives to fur,” said Macy’s CEO Jeff Gennette. “We’ve listened to our colleagues, including direct feedback from our Go Green Employee Resource Group, and we have met regularly on this topic with the Humane Society of the United States and other NGOs. Macy’s private brands are already fur-free so expanding this practice across all Macy’s, Inc. is the natural next step.”

  • Puma experiences its best year yet as sales soar globally

    Puma experiences its best year yet as sales soar globally

    Puma’s worldwide sales surged 18.4 percent last year, to €5.502 billion and its pre-tax profit rose 40 percent to €262 million.

    But the positive results were tempered by a warning from CEO Bjorn Gulden about the year ahead given the outbreak of coronavirus in China.

    “After a good start into 2020, February has of course been negatively affected by the outbreak of COVID-19. The business in China is currently heavily impacted due to the restrictions and safety measures implemented by the authorities.”

    He said businesses in other markets, especially in Asia, are suffering from lower numbers of Chinese tourists.

    “Given the current uncertainty around the virus, it is, of course, impossible to forecast its impact on the business. We will do everything we can in the short term to minimize the damage and remain very positive in the long term both for our industry and for Puma,” said Gulden.

    Puma’s year ended with a strong fourth-quarter result, with revenue up by 20.6 percent and pre-tax earnings up by 47 percent.

    “All regions and all product divisions were up by double-digits. This made 2019 the best year in Puma‘s history,” said Gulden. “I am very proud of what the team has achieved and thought this performance shows the global potential of the Puma brand.”

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  • Aditya Birla plans to open 500 stores this year

    Aditya Birla plans to open 500 stores this year

    India’s Aditya Birla Fashion and Retail is set to launch more than 500 stores by the end of the year.

    According to reporting in The Economic Times, the firm, which owns the Pantaloons fast-fashion brand, is counting on shifting buyer interest towards its branded clothing despite economic indicators of a lull in consumer spending – and its plans represent three times the company’s normal growth rate. Aditya Birla’s strategy seeks to invigorate spending while speeding up the expansion of exclusive brand outlets, including conversion of some large wholesalers into exclusive brand outlets.

    “The general consumption habits are changing, especially in a digitally connected network, when you are seeing a desire for brands and aspiration for better quality products,” said Aditya Birla MD Ashish Dikshit.

    “There is a very large movement to buy brands and the opportunity in a country like India will keep emerging from new markets.”

    The firm also currently plans to release a line of mass-market traditional ethnic wear, which represents an estimated 30 percent of the overall apparel market in India.

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  • Laura Ashley fighting to Survive

    Laura Ashley fighting to Survive

    Struggling fashion & homewares chain Laura Ashley is seeking to borrow additional funding to stay afloat in the midst of a dispute with its lender.

    The firm’s Malaysian owner MUI Group is renegotiating its access to a £20 million (US$26 million) fund put up by Wells Fargo last October. As an asset-backed loan, the amount made available to the chain by the lender has dropped along with its stock value.

    MUI has stated it needs the financing to “meet the group’s immediate funding requirements and to draw down additional amounts to meet ongoing working capital needs”.

    The firm has had a rough financial year, with figures showing a 10.8-per-cent drop in sales in the first half compared to last year’s results following a drop in consumer spending.

    “We acknowledge that recent trading conditions, in line with the overall UK retail market, have indeed been challenging,” said MUI chairman Andrew Khoo. “There is however a robust plan in place to turn the business around … The major shareholders have indicated their continued confidence in the business and are fully supportive of the management team and the execution of the transformation plan.”

    The firm will consider “all appropriate options” should talks regarding the funding break down.

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  • Fashion brands urged to ‘tread carefully’ over veganism claims

    Fashion brands urged to ‘tread carefully’ over veganism claims

    Brands and retailers have been warned to tread carefully when embracing the growing veganism trend.

    “Veganism is increasingly becoming a lifestyle choice for many people, with the number of vegans in Great Britain quadrupling between 2014 and 2019, according to The Vegan Society,” says Beth Wright, apparel correspondent at GlobalData. “With this rise comes a likely surge in demand for vegan-friendly clothing and footwear.”

    Wright says it should come as no surprise that apparel and footwear companies want to be seen to be embracing veganism. But she warns that there are many issues brands and retailers must consider before declaring products free from animal-derived materials or ingredients.

    “While there are a great many gains to be made from entering the vegan fashion market, industry players must do their homework and identify the risks before joining the fray.”

    Sourcing vegan fashion products goes further than simply bypassing wool, leather and natural silk as raw materials, says Wright. Retailers must also take care to guard against the use of a number of dyes, glues and chemicals that are derived from animals.

    To help address and tackle these complexities, the British Retail Consortium (BRC) has created new guidelines to help retailers and brands sourced vegan fashion products, setting out steps and questions to ask both internally and of suppliers. The ‘Voluntary Guideline on Veganism in Fashion’ sets out a sequence of steps brands and retailers should take to verify their raw material ingredients.

    It aligns with previous advice from testing, inspection and certification specialist SGS Softlines Services, which notes the materials used in the production of vegan products must be robust and maintain the qualities of the animal-based materials they are replacing.

    Among the companies that have launched vegan products are Topshop, Asos and New Look, which last summer became the first high-street fashion retailer to register ranges with The Vegan Society’s Vegan Trademark.

    “Fashion brands and retailers must heed the advice from industry bodies such as the BRC in sourcing vegan products and do their due diligence,” says Wright.

    “Building a relationship between internal sourcing and buying teams and suppliers is key in not only instilling confidence along the supply chain but among consumers too.”

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  • Tokyo builds its case to become the next key global city for fashion

    Tokyo builds its case to become the next key global city for fashion

    Tokyo is to host Japan’s largest fashion and art event next month – Tokyo Creative Salon – part of a plan to boost its case to become one of the world’s key fashion hubs.

    Supported by the Tokyo Metropolitan Government, Tokyo Creative Salon will be held from March 15 – 31. It will feature a variety of fashion and art initiatives across Tokyo’s five key districts: Nihonbashi, Marunouchi, Shibuya, Ginza, and Daikanyama.

    Each district will present a line-up of exhibitions and activations such as street runways, art installations, dance performances, and talk sessions. Tokyo Creative Salon will be attended by Japanese girl group Nogizaka46 together with Japanese solo artist Kavka Shishido.

    Tokyo Creative Salon Nihonbashi will feature the “Off to meet” theme, which advises visitors to turn off their mobile devices to fully experience the event. Some 10,000 Sacoche bags, which block smartphone reception, will be given out as gifts. The Nihonbashi venue will feature Sakura Menu Walk and Nihonbashi Art Gate where artists create works with the “Nihonbashi (that is) unrecognizable by the smartphone” theme.

    Tokyo Creative Salon Marunouchi will transform Marunouchi Nakadori into a red runway with full-scale fashion shows. The event also features an exhibition “Fun in the Life” by Hobonichi, allowing people to experience “Fun in the life” through valuable shops and specially prepared products and food.

    A Ginza Rooftop Project will be held on the rooftops of several landmarks including Matsuya Ginza, Ginza Mitsukoshi, Wako and Tokyo Plaza Ginza. The district will also present other fashion shows and art installations.

    Tokyo Creative Salon Shibuya will run a Shibuya Runway for a one-day-only show where up-and-coming designers present their latest styles.

    During the Tokyo Creative Salon at Daikanyama, visitors will get to try on vintage kimonos. The winning works of Fashion Koshien will also be exhibited here.

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  • Ralph Lauren fears coronavirus will cut sales by $70 million

    Ralph Lauren fears coronavirus will cut sales by $70 million

    Luxury group Ralph Lauren Corp fears the coronavirus will reduce its March-quarter sales by between US$55 million and $70 million, due to falling store footfalls in Mainland China, South Korea and Japan.

    The company says it expects “broader impact across its businesses in China and parts of Asia due to significantly reduced travel and retail traffic.” It also warned there may be some disruption to its supply chain due to the virus.

    In a bleak outlook, the company said the sales decline would reduce its operating income for Asia by between $35 million and $45 million, potentially resulting in a loss given the company reported a $38 million surplus in the same quarter a year ago.

    Asia drove $273 million in revenue this time last year

    Ralph Lauren has closed about two-thirds of its stores in Mainland China since the coronavirus broke out.

    “Our dedicated teams are operating with agility in a highly dynamic situation, and we will continue to assess the implications for our business across retail, corporate and our supply base,” said Patrice Louvet, president and CEO, in a statement.

    “While the health crisis creates near-term uncertainties, the fundamentals of our business are strong, and we continue to see significant long-term opportunities for growth in China and across Asia.”

    The company’s founder Ralph Lauren expressed sympathy for those affected by the outbreak.

    “Our hearts are with the many impacted by this virus. Our number one priority is keeping our teams, partners and consumers safe.”

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  • Bossini half-year loss could quadruple

    Bossini half-year loss could quadruple

    A week out from releasing its half-year results, apparel retailer Bossini has warned shareholders of a bleak performance.

    Chairman Bess Tsin said in a stock-exchange filing that the group expects to record a loss attributable to shareholders ranging between HK$85 million and $105 million for the six months ended December 31.

    That could be as much as four times the loss of $26 million it recorded in the same six months a year earlier.

    Tsin said the loss was “mainly due to a sharp decline in inbound visitors in Hong Kong, the Mainland China-US trade disputes, weakened consumer sentiment and the unseasonably warm winter weather in several core markets where the group operates”.

    Bossini is scheduled to release its half-year results in “mid-February”.

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  • Under Armour Asia-Pacific sales surge, but coronavirus impact looms

    Under Armour Asia-Pacific sales surge, but coronavirus impact looms

    Under Armour Asia-Pacific sales surged 9.8 percent in the December quarter – a far greater growth rate than the global 3.7 percent.

    The sportswear brand, which is struggling to turn around its sagging North American business, also suffered a $15 million net loss for the quarter, largely due to a $23 million tax expense.

    Under Armour Asia Pacific sales rose to $183 million and were up 11 percent on a currency-neutral basis, while global sales reached $1.44 billion, up 4.1 percent after currency adjustment.

    The company says the improved performance in Asia was due to growth in just wholesale volumes and direct-to-consumer (DTC) sales. However, the company noted that DTC performance was softer than expected due to poor performance in “key e-commerce moments” of 11.11 and 12.12 sales.

    CEO Patrik Frisk told an analyst conference call he was “not satisfied with where we are today” despite improvements in systems and infrastructure serving the wholesale and retail network.

    The company’s share price fell 17 percent after the results were released in the US yesterday, accompanied by an admission the company was considering closing its Fifth Avenue flagship store as part of further restructuring initiatives to boost performance.

    “As a brand, we see a paradox of two challenges in front of us,” Frisk said during the call. “Continued softer demand in North America, as we work through our elevated inventory and multiple years of discounting, and a highly committed cost structure which is taking longer to unpack and is limiting us from being able to spend as aggressively as we would like to increase brand consideration.”

    He also warned that the coronavirus crisis in China would significantly impact results in the current first-quarter and may cause supply-chain challenges for the full year. Some 600 stores – two-thirds of its Asia-Pacific network – are currently closed in China and Frisk expects Under Armour Asia-Pacific sales to fall by between $50 million and $60 million due to the virus.

    “Given the ongoing uncertainty, it is possible that this situation could have a significant material impact both financially and operationally on our full year, including the potential for additional top-line contraction for Under Armour.”

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  • Private equity tipped to privatise Victoria’s Secret

    Private equity tipped to privatise Victoria’s Secret

    L Brands is reportedly about to announce the sale of its troubled Victoria’s Secret lingerie business to private-equity company Sycamore Partners.

    The move would leave L Brands with just one retail business – the fast-growing Bath & Body Works, which in some US malls is reporting sales growth at 1000 basis points ahead of the shopping centers they are located in.

    Victoria’s Secret sales are down 8 percent year on year in the current fiscal year, while Bath & Body Works sales were up 9 percent in November and December.

    Whispers of a potential sale emerged in early January when it was widely reported that founder Les Wexner was planning to step down and cash up. Now, CNBC has reported that Sycamore Partners is the likely bidder with a deal to be announced as early as this week.

    The lingerie chain is losing market share to American Eagle Outfitters’ Aerie brand, along with Direct-to-consumer brands and one analyst, the Motley Fool described it as “losing relevance”. Last year the company discontinued its high-profile televised fashion show and the company is believed to be reviewing the future of its giant flagships as sales soften. The company’s heavy reliance on promoting sexy attire is missing its mark in a market where consumers are expecting more inclusive and diverse underwear styles.

    The future of L Brands is less certain, despite the success of Bath & Body Works, given that the Victoria’s Secret business currently accounts for the vast majority of its US$13 billion annual turnovers. Bath & Body Works may be sold to a different buyer or remain a standalone business under L Brands.

    In January last year, L Brands sold the La Senza lingerie chain to Californian private-equity company Regent.

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  • Sa Sa shuts stores after Lunar New Year sales plunge

    Sa Sa shuts stores after Lunar New Year sales plunge

    Sa Sa International has reported a massive 76.9-per-cent slump in Hong Kong and Macau sales during Lunar New Year as the coronavirus kept mainland Chinese tourists at home.

    As a result, the company has shut 21 stores and will “substantially strengthen control measures” in order to reduce losses.

    Besides the store closures, its executive directors have taken a 75-per-cent salary reduction for three months as the first in a series of cost-cutting initiatives. Inventory levels will be cut and the company is looking to reduce staff costs.

    With Hong Kong Immigration Department figures showing an 85.5-per-cent year-on-year decrease in mainland tourist arrivals, the impact on retailers across categories generally frequented by visitors, such as luxury goods and cosmetics, is expected to be severe for many retailers in the territory.

    Sa Sa International chairman Simon Kwok said that in Hong Kong, the company’s retail sales plummeted by 77.9 percent year on year.

    “Such decline was mainly attributable to the novel coronavirus outbreak, resulting in a further decline of mainland tourist arrivals and poor local consumer sentiment.”

    Falling store footfall saw a drop of 54.4 percent in the total transaction volume, with spending by mainland tourists down by 92.1 percent and that of local customers by 8 percent. The average sale per transaction among local customers fell by 25.6 percent.

    Kwok said Sa Sa International’s retail sales in Macau plunged by 73.4 percent, with an almost 70 percent drop in total transaction volume. Mainland tourist spending fell by 76.5 percent and spending by locals by 29.4 percent.

    Kwok said that with efforts to contain the coronavirus seriously affecting the mobility of mainlanders,

    Sa Sa International will “closely review the market condition and adjust its product strategies”. “Facing the severe shortage of masks and disinfection products, the group strives to support Hong Kong and Macau SARs citizens to combat the coronavirus outbreak by going all outsourcing such products globally and selling them at reasonable prices to cater for their needs.”

  • Vans skateboarding-themed community store opens in California

    Vans skateboarding-themed community store opens in California

    Vans skateboarding heritage is celebrated in a community-driven retail space just opened in Los Angeles.

    The 11,500sqft store is themed around the skateboard culture in the region and features event space and studio as well as its footwear range.

    “Our Downtown LA store opening signifies a new Vans chapter as we continue our mission and commitment to being community and experience focused,” said Van’s VP marketing Carly Gomez.

    “Downtown LA has a rich history of the skate culture and artistic freedom. Not only will we be opening our doors to the new space, but we will introduce Studio808, located on the second floor of the new store where the community can share their creative energy through workshops, exhibitions and more.”

    A dedicated skate shop within the space retails hard goods from local brands. The store also sells a range of curated publications.

    “For 54 years, Vans has called California home,” said Van’s regional VP/GM Mitch Whitaker. “We’re grateful to be reinforcing the brand’s Southern California roots and legacy through this new space that is both reflective of, and designed for, the community and unique experiences.”

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  • J Crew Hong Kong stores shutters after failed Asian foray

    J Crew Hong Kong stores shutters after failed Asian foray

    American fashion brand J Crew is to close its two Hong Kong stores later this month, six years after it chose the city as the launchpad for a failed Asian foray.

    Notices have been posted on the doors of the two J Crew Hong Kong stores – at Times Square in Causeway Bay and On Lan Street in Central – advising customers of the pending closure. At Times Square it is promoting 50 percent off remaining stock.

    A staff member of the Times Square store told the South China Morning Post the stores would close on February 23.

    Like other international retailers in Hong Kong, J Crew was battered by the social unrest which gripped Hong Kong from June to December last year and has now been impacted by a dearth of mainland Chinese visitors resulting from the growing coronavirus crisis which has all but closed the border with the mainland.

    J Crew is the headline brand of J Crew Group, which also operates the denim brand Madewell.

    Announcing its move into brick-and-mortar stores in Asia in early 2014, J Crew was expected to open in major cities across the region. However, a licensing agreement with Itochu in Japan, which at last count had about 76 stores, will soon be the only remaining physical presence in the region.

    The company designs and sells menswear, womenswear, and childrenswear including apparel, shoes, and accessories.

    The company has experienced turbulent times of late, avoiding bankruptcy protection in 2017 after reaching a debt-for-equity swap arrangement with bondholders. In November 2018 CEO James Brett stepped down and was replaced by a group of four senior executives sharing the role until in April last year when the president and COO Michael Nicholson assumed the title.

    Last month, the company announced Jane Singer, a previous CEO of Victoria’s Secret would replace Nicholson.

    Between 2016 and 2018, J Crew shuttered almost 100 stores in the US and as a further part of a restructure in November 2018, the company’s J Crew Home, Mercantile and Never even brands were shut down allowing the company to focus on its core fashion offer.

    After the Hong Kong store closures, J Crew will have about 450 retail stores trading in the US along with its Japanese license. It also sells online shipping globally.

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