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 KFC’s latest merch to the continued success of Lands’ End’s tote bags, here’s our closeout for the week.
What you may have missed
Qurate gets bumped to another market
Qurate Retail on Tuesday announced that it transferred from the Nasdaq Global Select Market to the Nasdaq Capital Market. This follows a warning in June that the company faced delisting because its series A common stock had been below the $1.00 minimum bid price requirement for 30 straight business days.
The company will be listed and traded on the Nasdaq Capital Market through Monday. Nasdaq may then grant the company an additional 180-day extension to comply with the minimum bid price requirement. Qurate Retail said that it may enact a reverse stock split to regain compliance.
Qurate Retail runs home shopping channels HSN and QVC, among other brands.
Abercrombie & Fitch heads to India for growth
Abercrombie & Fitch Co. this week announced a multi-year franchise deal with business-to-business and wholesale company Myntra Jabong India Private, Ltd., to grow its Abercrombie & Fitch and Hollister brands. Myntra Jabong, owned by Flipkart, will establish brick-and-mortar stores and regional e-commerce sites, to be operated by licensed and independent third parties, according to a company press release.
In a statement, Abercrombie CEO Fran Horowitz called the country “an incredibly dynamic and diverse market, and one where we see tremendous long-term potential as we continue to pursue global brand growth.”
Walmart owns a majority stake in Flipkart.
Lands’ End is Totes excited
Lands’ End CEO Andrew McLean on a Thursday call regarding the company’s Q3 performance said that sales of its Tote Bag are up “substantially” year-over year. Sales of the bag drove new customer acquisition and also brought a younger clientele to the company during the quarter.
Also on the call McLean stated that Kym Maas was appointed to the position of chief creative officer. Maas previously was the retailer’s senior vice president of products and merchandising.
For the quarter, net revenue was down 1.9% year over year to $318.6 million, while operating income was $9.2 million compared to a $101 million loss in the year-ago quarter. The company narrowed its net loss to $593 million, compared to $112.4 million year over year.
Retail therapy
KFC releases holiday collection
KFC on Tuesday released a streetwear-inspired holiday collection of sweatshirts, T-shirts, a beanie, socks, Croc charms and more. The limited-edition designs are by illustrator duo Yeye Weller, and reflect this year’s seasonal bucket.
Let White Claw send you home for the holidays
White Claw and social media star Brittany Broski are partnering to send five winners home for the holidays in a new campaign. To enter the “Home for a Claw” contest, fans can submit to White Claw why they want to travel for a chance to win a travel experience worth up to $10,000.
The campaign comes from a recent survey the drink brand conducted. Per a White Claw survey of U.S. adults 21 and older, over half (58%) report wanting more time during the holidays to spend with friends.
What we’re still thinking about
$22 billion
That’s how much U.S. consumers spent at independent retailers and restaurants on Small Business Saturday, according to a survey by American Express. Eighty-five percent of consumers who shopped at independently owned retailers on Nov. 30 shopped in stores.
This year marked the 15th anniversary of the event, which takes place the day after Black Friday. In total, it is estimated that the U.S. has spent $223 billion since tracking the event began.
$1
That’s about what ThredUp got for most of its stake in European resale site Remix, after buying it in 2021 for more than $28 million. At that time, ThredUp Co-founder and CEO James Reinhart said the company was “bullish about the massive opportunity in the European resale market.” But this week, amid evidence that online resale is tough to operate profitably, ThredUp closed on a deal to divest it, in a management buyout led by Remix General Manager Florin Filote.
Just ahead of the closing, ThredUp furnished Remix with a final cash investment of $2 million to help fund operations; ThredUp also has retained a 9% stake in Remix, per financial filings.
What we’re watching
Who really won Black Friday?
Some winners from the holiday event were clear early on, like e-commerce — and mobile specifically — but as the days have worn on, more has become clear about how individual brands performed. Early reports from analyst firms including Needham and TD Cowen have called out several athletic-leaning companies as winners, including the likes of On, Hoka, Dick’s Sporting Goods and Amer Sports.
Off-pricers like T.J. Maxx and Burlington also made the list for TD Cowen. BMO Capital Markets saw strength at Anthropologie, Ulta and Sephora, but that firm also noted a few laggards compared to last year, including Macy’s and Athleta. William Blair noted strong demand at Aritzia, Abercrombie, Warby Parker and On, and weakening demand for Stitch Fix, Torrid and Designer Brands.
One major winner may have been Amazon. With the strength of e-commerce, Numerator said Amazon netted 86% of shoppers over the course of the weekend. The e-commerce giant itself said little other than that the shopping weekend was “its biggest ever,” with record sales and a record number of items sold.
The results could have big implications for the rest of the holiday season, especially with a smaller number of days between Thanksgiving and Christmas this year.
