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 Native’s latest collaborations to Qurate’s possible CEO change, here’s our closeout for the week.
What you may have missed
Running store Fleet Feet acquires South Sound Running
Washington-based South Sound Running was acquired by Fleet Feet Puget Sound, which will take over its stores in Olympia and Puyallup, Washington, this month. After nearly 30 years, South Sound Running’s owners — and husband-and-wife team Greg Klein and Joan Marchioro — are retiring, according to their company’s website.
“We have always believed that we had the best customers in the world, and our success is due to their loyalty,” Klein said in a statement.
Rosita Missoni, co-founder of Italian fashion knitwear brand, dies at 93
Rosita Missoni, who with her husband Ottavio Missoni founded their eponymous knitwear brand in 1958, has died, according to the official page of Italy’s Lombardy region. She was 93, per a November Instagram post from her granddaughter Margherita Maccapani Missoni.
The company, whose signature multicolored chevron patterns have become iconic, maintained its headquarters in the town of Sumirago in Lombardy’s Varese province, according to a translation of an official statement from Lombardy President Attilio Fontana.
“The passing of Rosita Missoni, a world-famous Lombard designer and entrepreneur, saddens us,” Fontana said. “A great loss for Italy, Lombardy and the province of Varese where she was born and lived.”
Investment firm pushes Vera Bradley to sell
Fund 1 Investments on Monday sent an open letter to Vera Bradley’s board of directors encouraging the company to explore strategic alternatives, including selling to a larger company or going private through a financial buyer. The firm, which owns about 10% of Vera Bradley’s stock, is the retailer’s largest shareholder. Vera Bradley in October adopted a shareholder rights plan to prevent any one individual or entity from acquiring control of the company by buying up stock.
In the letter, which was addressed to Vera Bradley board chairman Robert Hall, Fund 1 Investments called out the retailer for “a history of value destruction and questionable capital allocation,” as well as poor performance and a failed turnaround. The investment firm also highlighted that Vera Bradley’s top-line revenue is relatively unchanged from when it IPO’d 15 years ago. The company made $80.6 million in net revenue in its most recent quarter and expects to finish the fiscal year with $385 million in revenue.
To remedy the brand’s challenges, Fund 1 suggested the company sell to a larger organization or a financial buyer, allowing it to exit the public spotlight and focus on reviving its brand rather than shareholder needs. The firm said it’s already spoken to Vera Bradley about these options and was “pleased to hear the Board of Directors believes everything is on the table to maximize shareholder value.”
Vera Bradley did not immediately respond to a request for comment from Retail Dive about the letter and whether it intends to pursue any of the suggestions. The retailer unveiled a transformation strategy over the summer, which includes a new logo, in-store renovations and a more “elevated” product assortment. The company tapped Zooey Deschanel as a brand ambassador and linked up with Urban Outfitters a month later for a limited-edition collection.
Fund 1 earlier in December offered to take Destination XL private for $3 per share and likewise said the apparel retailer would perform better as a private company.
Retail therapy
Draper James arrives at Petco, alongside other collections
Reese Witherspoon’s lifestyle brand Draper James launched at Petco alongside other new collections. Across Draper James’ pet offering, cat brand Jupiter’s assortment and Valentine’s Day products from Petco’s Youly brand, the new offerings include toys, apparel, accessories, beds, bowls, home decor and more.
With items starting at $2.99, Petco is the first national pet specialty retailer to carry Draper James. The collection offers apparel, accessories and other pet essentials. Jupiter is launching exclusively at Petco with toys, home decor and unique supplies starting at $3.99. For Valentine’s Day, Petco’s private label brand Youly debuted themed toys and apparel.
As the new year begins, Petco also announced updates to its in-store shopping experience. The retailer is adding an assortment of grab-and-go products under $10, a section dedicated to gifts for pet parents and curated in-store fixtures displaying new items.
Native announces 2 sweet collabs to kick off the New Year
As if we all didn’t have enough sugar over the holidays, Native is encouraging consumers to bathe in it. The personal care brand on Thursday announced two new collaborations, with Dunkin’ and Jarritos.
Through both collabs, Native will offer items like deodorant, body wash, shampoo and lotion in scents inspired by the doughnut company and soda brand.
“At Native, we’re passionate about scent exploration, continuously pushing boundaries to create truly craveable fragrances that resonate with our customers’ senses,” Chris Talbott, CEO of Native, said in a statement. “We believe in the power of scent to transport and connect people to unforgettable experiences.”
The Dunkin’ collection will be available to purchase on Native’s website and at Walmart, while the Jarritos collection will be available on the personal care brand’s website and at Target.
What we’re still thinking about
$2.7B
That was how much Saks Global spent to acquire Neiman Marcus Group in a deal that closed on Dec. 23. The agreement was first announced last summer.
The move brings several upscale department stores — including Saks Fifth Avenue, Saks Off Fifth, Neiman Marcus and Bergdorf Goodman — together under one roof.
Marc Metrick, Saks CEO, will become the CEO of Saks Global Operating Group. Ian Putnam, president and CEO of HBC Properties and Investments, will serve as Saks Global Properties & Investments’ CEO. Both executives will report to Saks Global Executive Chairman Richard Baker.
$6.25B
That’s how much Erik, Pete and Jamie Nordstrom (as well as other family members), and Mexican retail conglomerate El Puerto de Liverpool, paid in cash to take Nordstrom back under family control. The deal closed during the holiday season.
In 1901, Erik and Pete Nordstrom’s great-grandfather launched Nordstrom as a shoe store. Now, the family is the majority owner of the company again, while Liverpool owns 49.9%
The transaction was made possible due to both rollover equity by the Nordstrom family and cash commitments by Liverpool. The deal is expected to close in the first half of this year and still needs approval by relevant shareholders.
What we’re watching
Is Qurate going to start the new year with a CEO change?
At the end of December, Qurate Retail entered into an agreement with CEO David Rawlinson to extend the terms of his employment — which were first effective July 2021 through Feb. 28 of this year. A new employment arrangement is currently being negotiated, according to a filing with the Securities and Exchange Commission. However, if a new agreement or a mutually agreed extension is not made on or prior to Feb. 28, Rawlinson’s employment with the company will end.
Qurate Retail Group, owner of HSN and QVC, is going through a rebrand which includes expanding into a live social shopping company.
