Posted by Mark J. Miller on April 19, 2013 03:46 PM
Gap has had rough times in recent years, with hundreds of store closures and executive swaps. But the clothing company is hedging a unique plan that it hopes will help it continue growing market share worldwide under the helm of its new, more focused Creative Director Rebekka Bay.
Glenn Murphy, the company’s chairman and CEO, rolled out the blueprint Thursday, noting that the brand aims to franchise Old Navy locations internationally, add Old Navy and Banana Republic stores to the brand’s presence in China and have a stronger push across all channels for all of its brands, including Athleta, Piperlime and Intermix, Mediapost reports.
"We see [the opportunity for global growth] particularly in some countries where in our category, you're talking about double-digit growth just to keep up with the market," an exec said during the call, according to Fool.com, which named China, Indonesia, Vietnam and Cambodia as a few of the countries in question. Old Navy is expected to be the first of the Gap brands that goes into Asian markets that it hasn’t entered just yet. Up to 85 stores are expected to be opened before year’s end and 10 of those will be outlets.Continue reading...
brands under fire
Posted by Sheila Shayon on March 21, 2013 03:18 PM
Lululemon Athletica revealed Monday that it expects earnings to drop this quarter due to a dud batch of its popular yoga pants made with its proprietary luon fabric, which its store managers indicated were being returned by customers who found them too sheer for wearing. “Some of our bottoms were made with a batch of black luon that doesn’t meet our standards so we’ve pulled them from our floors and our website.”
After being downgraded by Credit Suisse and others after the news, an earnings call today meant to detail the company's fourth quarter and full year 2012 results along with 2013 developments such as a move into golf and tennis apparel was instead taken up with answering analysts' questions about how it was handling the crisis—and offering more (ahem) transparency about the situation than has been offered to customers.Continue reading...
Posted by Sheila Shayon on March 19, 2013 03:49 PM
Is this a sign of things to come for Canada's retail darling? Lululemon, the Vancouver-based lifestyle brand and highly successful global retailer, over the weekend pulled its Luon black yoga pants from store shelves after discovering the sheer material was just too sheer, a result, some say, of poor quality control on the company's part. On Monday, the retailer announced it would be pulling various—but unnamed—styles of its popular (and pricey) yoga pants, explaining, “Some of our bottoms were made with a batch of black luon that doesn’t meet our standards so we’ve pulled them from our floors and our website.”
“At lululemon, our most important relationship is with our communities and our guests. We recently learned some information about some product that arrived in our stores and we wanted you to know right away,” according to the retailer's blog post. “We are working with our supplier to replace this fabric and other manufacturers to replenish the affected core items as fast as we can. What that means is there will be a shortage of these styles in our stores and online until our new stock arrives. We are also in conversation with our manufacturing partner to understand what happened during the period this fabric was made.”
The brand said it will offer refunds or exchanges to customers who bought the affected item in March, either online or in stores. Lululemon—which was just named Canada's top retail brand by Interbrand's 2013 Best Retail Brands report—is known for turning around products on short order. "Our guest knows that there's a limited supply, and it creates these fanatical shoppers," CEO Christine Day, a former Starbucks executive, told the Wall Street Journal. But the reported pants issue isn't a calculated sales strategy to boost demand and drive sales.Continue reading...
Posted by Sheila Shayon on February 1, 2013 06:43 PM
Best Buy Canada will lay off 900 employees and close 15 of its stores including eight Future Shop locations, while Sears Canada will lay off 700 of its workers as both retailers brace for the arrival of Target next month and the expansion of Walmart there. Nordstrom is also launching in Canada with four stores in major cities.
“The retail landscape continues to change, and our success is dependent upon our ability to evolve along with it,” said Mike Pratt, president of Best Buy Canada. “By taking a proactive approach in transforming our operations now, I have no doubt we will be in the best position to continue innovating our store experience for consumers and grow into the next decade.”
Sears spokesman Vince Power in a statement that the imminent layoffs across Canada are “part of our initiative to right-size the organization, which is working in concert with other initiatives to make Sears successful."
Best Buy Canada, like its American parent, faces stiff competition from online electronics retailers such as Amazon and Apple and is replicating a U.S. strategy of switching to smaller stores, which are less expensive to operate. Meanwhile, Sears Canada — which has suffered for years from falling sales and profits — is shrinking its overhead from its 360 department stores and 300 distribution centers.
While Canada's retail sector has been wobbling ever since Walmart arrived in the mid-90s, this latest round of market rumbling is spurred by Target’s immiment expansion plans, as the cheap chic retailer gets ready to open the first of its 124 stores in Canada next month.Continue reading...
Posted by Dale Buss on December 10, 2012 09:05 AM
Apple joins Google in $500M+ bid for Kodak patents; smacked by USPTO as 'Steve Jobs Patent' for iPhones and iPads deemed invalid and Siri secrets revealed.
Diageo seen as unlikely to bid for Beam following UK report that drinks giant talked to Suntory about joint bid.
Barnes & Noble cuts Nook price from $99 to $79.
Michael Bloomberg weighs making bid for The Financial Times, which includes the paper and a half-interest in The Economist.
Caribou Coffee celebrates 20th anniversary.
Carlos Slim brings Telcel brand to U.S. for Mexico calls.
CVS Caremark reportedly aims to acquire drug-store chain in Brazil.
Chili's begins soft rollout of new menu items.
Darden Restaurants looks to retool value proposition for its Olive Garden and Red Lobster restaurants.Continue reading...
Posted by Shirley Brady on October 25, 2012 11:29 AM
Old Navy debuted its latest commercial Wednesday night, featuring Joan Rivers and Mario Cantone. The pitch: "Old Navy is bringing bold color back with Little Bold Dresses. They come in so many colors, your go-to dress this fall might be green, pink, blue, red or purple. Starting at $19 for women and just $15 for girls, even critics Mario Cantone and Joan Rivers can't help but agree that bold is the new black."
Posted by Sheila Shayon on October 16, 2012 05:16 PM
Gap Inc. chairman and CEO Glenn Murphy announced today that it has created a new global brand management structure so that its flagship Gap, Banana Republic and Old Navy brands will each be led by a single executive with global purview beginning in fiscal year 2013. The move also creates a global innovation and digital strategy group, a first for the apparel company.
With more than 3,200 stores across its brands, the move consolidates North American, international, online, outlet and franchise divisions in an effort to improve market share. Gap has been expanding abroad and now has stores in more than 40 countries (compared with eight in 2006), but a word of caution from NASDAQ: “The company would be following the path of other apparel retailers, like Abercrombie & Fitch Co. But the road is a tricky one, especially right now due to economic conditions around the globe. Gap would do well to take a steady-as-she-goes approach.”Continue reading...
Posted by Shirley Brady on October 10, 2012 10:37 AM
Old Navy hit five million "likes" on Facebook on Tuesday, and as promised, they're saying thanks with its biggest promotion ever: a "human coupon" that offers 30 percent off an entire purchase from Oct. 12-14. Download it at OldNavy.com/5million, and check out the making of video below.Continue reading...