Blog: More changes in US retail landscape
Leonie Barrie | 18 August 2008
More changes will be seen soon in the US retail market after teen apparel retailer Tween Brands said it is to convert 560 of its Limited Too stores to its more value-oriented Justice brand. Both sell fashion basics and lifestyle items to 7-14 year-old girls, but after swinging to a second quarter loss of $7.6m, from a profit of $2.1m last time, the retailer believes its focus on one store brand will appeal to customers who are trading down to lower-priced goods.
The retailer says the change to the Justice format – which is priced around 20-25% lower than Limited Too – is supported by strong sales comps at Justice and weaker comps at Limited Too. But analysts ask whether the company is being a bit impulsive in its actions, they are concerned over the disappearance of the Limited Too nameplate altogether, and caution that bad economic times won’t last forever.
Also about to disappear is PreVu Inc, the company formed last month after Wilsons The Leather Experts sold its outlet store and e-commerce assets to AM Retail Group, a wholly owned subsidiary of G-III Apparel Group for US$23.3m. The retailer has begun an immediate liquidation of its stores after running short of finances.
Footwear retailer Skechers USA has made a second attempt to buy wheeled footwear specialist Heelys, with its bid of US$142.8m or $5.25 a share tabled last week beating the $4.75-5.10 per share which was offered – and rejected – at the end of May
Just two weeks ago Heelys, whose shoes are often dismissed as a passing fad, swung to a second quarter loss of $0.4m, from a profit of $12.8m in the same period a year earlier, as sales tumbled 75% to $18.2m. But a deal could help Heelys grow internationally as well as boosting Skechers’ children’s business.
Last week US retailer Gap Inc also confirmed to just-style it will split-up its London-based design team, shifting the workload to New York. Gap, which set up the European design unit less than three years ago, wants to focus its efforts on more American-styled clothing and will now dedicate a small team of New York designers to the European range, guided by new head of design Patrick Robinson.
And as this summer's Beijing Olympics gets underway, we have taken a look at how leading brands are tussling for marketing gold. The 2008 Games has take on extra significance given the economic momentum of host nation China, but will lucrative team deals, official partnerships and timed product releases enable apparel and footwear companies to stamp a lasting impression on the Chinese market?
Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....
As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
- Why collaboration is key to fashion supply chains
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- Industry groups reaffirm commitment to Bangladesh
- Using worker surveys to drive supply chain change
- Adidas to digitalise Speedfactory concept
- M&S extends sourcing deal with Lindsey brothers
- Nike filed patent for "reinforced denim"
- US Q1 in brief – Columbia Sportswear, Amazon
- Brandix rolls out Tukatech systems
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar