It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
From layoffs at Affirm to Jennifer Coolidge’s Superbowl debut for E.l.f Cosmetics, here’s our closeout for the week.
What you may have missed
Update on Dollar General’s alleged pricing discrepancy lawsuit
Dollar General this week reached an agreement in an Ohio price discrepancy lawsuit.
In a November lawsuit, Attorney General Dave Yost accused the discount retailer of declining to correct ongoing pricing discrepancies between prices advertised on shelves and what customers were charged at the register. The agreement averts the imposition of a temporary restraining order.
Among other conditions, the court order requires district managers to perform price checks for at least 25 items in each Ohio store every 45 days. If more than five items show discrepancies, the corporate office must be notified.
Employees must also charge a product’s shelf price if customers claim that they are being charged more at checkout. In cases when a price override is necessary, the store must take steps to correct the discrepancy. Finally, The company is also required to educate all employees about the policy and must post signs in its Ohio stores informing customers of the policy.
Layoffs at Affirm
Buy now, pay later service provider Affirm this week announced that it is cutting 19% of its workforce, or around 500 employees. For Q2, the company reported a net loss of over $322 million, compared to $159.7 million in the year-ago quarter.
“A key operational misstep contributing to these results is that we began increasing prices for our merchants and consumers later in the year than we should have,” CEO Max Levchin said in a letter to Affirm shareholders. “This had a negative impact on both our ability to approve more consumers and improve our margin.”
BNPL played a large role in the success of this past holiday retail season, specifically during Cyber Week.
David’s Bridal says “I do” to Something Borrowed Blooms
David’s Bridal this week announced it has partnered with silk floral rental company Something Borrowed Blooms.
Image courtesy of Davdi’s Bridal
Something Borrowed Blooms offers pre-arranged collections that emulate the look and scent of real flowers, but for over 70% less cost than traditional florists.
“Florals are an incredibly important component to the wedding day — they tell a story, elevate the ambiance, and bring joy to the big day,” Jim Marcum, CEO of David’s Bridal, said in a statement. “Their core belief that your budget shouldn’t limit your big moments as well as their thirst for innovation runs parallel with our foundational values in service.”
Retail therapy
Panera debuts a baguette bag
Panera, in celebration of its newest menu item of toasted baguettes, released a BAGuette purse in the restaurant’s staple green color. Matching the size of the sandwiches at 12’’, the purse features an embossed letter P pattern all over and opens from a gold metal buckle in the same signature initial. While the caprese, buffalo chicken and pepperoni mozzarella baguettes start at $9.99 each, the coordinating purse retailed at $39.50, and is already sold out.
Before running out, 500 purses were available for pre-sale in honor of New York Fashion Week. MyPanera rewards members who purchase all three sandwiches from the toasted baguettes collection will be entered for a chance to win a BAGuette purse.
Jennifer Coolidge debuts “dolphin-like” skin with E.l.f. Cosmetics for Super Bowl ad
Marking the brand’s first television commercial, beauty company E.l.f. Cosmetics has brought on “White Lotus” powerhouse duo Jennifer Coolidge and Mike White for its Super Bowl ad, per a company press release Thursday.
Image courtesy of E.l.f.
The 30-second spot is focused on the brand’s Power Grip makeup primer, with actress Collidge intending to bring viewers through a series of “sticky” situations showcasing the product’s grip capabilities. The ad is co-written by White, who created the hit HBO show Coolidge starred in for two seasons.
What we are still thinking about
480
That’s how big Bed Bath & Beyond envisions its store fleet will be after it completes its store closures. The company this week said it plans to reduce its footprint even more, aiming for a total of 120 BuyBuy Baby stores and 360 Bed Bath & Beyond stores, the latter representing about half as many locations the banner had at the start of 2022.
The retailer has been working to reduce its footprint since last year, and in January the company announced it would close all 50 stores within its Harmon beauty chain.
The beleaguered home retailer has been dancing around a bankruptcy filing as it runs out of cash to repay its debts. Earlier this week it moved to secure $1 billion through an investor deal; it has since received $225 million of that through a stock offering.
$3B
That’s how much Canada Goose hopes to make in revenue by fiscal 2028, with 80% of that revenue coming from its direct-to-consumer channel. The apparel brand, known for its outerwear, is making a big bet on its DTC operations. Canada Goose hopes to double its store footprint — which currently sits at 51 locations globally — over the next five years.
The brand’s stand-alone stores serve as a “pinnacle” experience for consumers looking for an immersive experience, President Carrie Baker said during the company’s investor day earlier this week.
Late last year Canada Goose opened two permanent stores in Denver and Las Vegas and opened two pop-up stores in Detroit and Aspen, Colorado.
What we’re watching
Adidas’ troubled celebrity partnerships
It hasn’t been a good week for Adidas’ celebrity-based product lines. The Wall Street Journal on Wednesday reported that sales of the Ivy Park brand, a partnership between Adidas and superstar Beyoncé, fell more than 50% in 2022. The publication cited people familiar with the matter, who said Ivy Park was expected to generate $250 million in 2022 and instead made just $40 million. As a result of the poor sales, Adidas could choose to end the partnership when the contract is up this year, but the company is also considering “revamping” it, according to that report.
Meanwhile, Adidas’ Yeezy product line — a popular collaboration with Kanye West (also known as Ye) — continues to cause problems for the sportswear giant months after the two ended their relationship. Adidas on Thursday released its outlook for 2023, which included an impact of 1.2 billion euros ($1.3 billion) if the brand chooses not to sell its existing stock of Yeezy inventory. Operating profit is also expected to take a 500 million euro hit, leaving the company at a break-even profit level for the year.
As new CEO Bjørn Gulden takes over, 2023 might be a year to start fresh for the sportswear giant. In some ways, it already has. The retailer last week announced Jenna Ortega as the face of its first new label in 50 years.
