Posts Tagged ‘retail’

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More Men Wearing Makeup

Thursday, September 2nd, 2010

In the old days, men used wax and powder to perfect their complexions. But today’s man is going for something a little more understated…

  • Despite a social norm that categorizes makeup as “for women only,” men are becoming more comfortable shopping for concealers, tinted moisturizers, and specialized cleansers and lotions.
  • Instead of playing up their features to enhance beauty the way women do, men are mostly interested in hiding dark under-eye circles and evening out their complexions.
  • There are many new cosmetics companies specifically targeting men, though some customers are confident enough to shop at Sephora or other woman-centric beauty shops. The term “makeup” still has an effeminate stigma, so retailers and customers tend to refer to men’s beauty products as “cosmetics.”

Facts & Figures

  • In 1997, Americans spent $2.4 billion on men’s grooming products; in 2009, that number rose to $4.8 billion.
  • In skin care alone, sales rose from $40.9 million to $217 million in the same period.
  • 4Voo sells “Confidence Corrector” for $34, and “Lash and Brow Styling Glaze” for $23. KenMen sells “guy-liner” for $22, and tinted lip balm for $25.

Best Quote

“There is a little bit of that stealth makeup thing going on, where you’re not slapping foundation onto your face but as part of your other routines — it sort of creeps in.” – Jason Chen, Grooming Editor at GQ

Luxury Sites Replace Luxury Stores

Friday, July 16th, 2010

In a struggling economy, online shopping might replace even the highest high-end stores.

  • In the wake of the recession, luxury stores are forced to sell merchandise on the web.
  • Selling clothes online, though less atmospheric than a downtown boutique, allows profits to go directly to the company by cutting out the costs of a store.
  • Technology’s infinite possibilities has increased the number of high-end online stores, allowing boutiques to make their websites seem as impressive and exclusive as their boutique.

Facts & Figures

  • In 2009, when the worldwide luxury-goods industry fell 8%, luxury sales online were forecast to grow 20%

Best Quote

“These brands are finally taking the plunge to establish an online retail presence. The recession forced these manufacturers to realize they needed to look for revenue wherever they could.” – Jeffrey Max, Chief Executive, Venda E-Commerce Sites

Best Buy Not So Hot First Quarter

Monday, June 21st, 2010
Best Buy quarterly results show that Best Buy sales fell short of predictions.
  • Best Buy’s stock fell 6% after disappointing quarterly results were released on Tuesday.
  • While sales of notebook computers, cell phones, and appliances were strong, sales of games, music, movies, and televisions fell short.
  • Executives are optimistic that customers will continue spending, though, and pull the company out of this rut.

Facts and Figures

  • First quarter net earnings were 36 cents per share (less than predicted 50 cents per share)
  • Reported sales for this quarter were $10.8 billion (less than predicted $10.9 billion)
  • Retail sales fell by 1.2% in May 2010 (they were expected to rise 0.2%)

Your Clickable Drugstore, Complete With Robots

Monday, June 14th, 2010

Soap.com will revolutionize, digitize your drugstore experience.

  • The owners of Diapers.com, a company that turns an impressive profit selling, yes, diapers, have decided to take on all commonplace household products digitally by launching Soap.com this summer.
  • Although big sites like Drugstore.com and Amazon.com already offer online drugstore products, Soap.com believes its strong grasp on logistics will set it apart.
  • Soap.com possesses a unique warehouse technology that includes robots which determine the most efficient way to pack products. They also physically retrieve the items from the warehouse shelves.
  • Orders arrive within two days, and shipping is free.

Facts & Figures

  • Diapers.com sold $182 million worth of diapers and baby products in 2009 and anticipate $300 million in 2010.
  • Soap.com expects to carry 40,000 products by the end of the year.
  • Currently, the offline drugstore market generates $125 billion. The online market makes $8 billion.

Best Quote

“These are products you bought a thousand times before and don’t need to see or touch them again.  These are chores.” - Vinit Bharara, Cofounder of Quidsi, which owns Diapers.com

Black Friday 2009 In Review

Monday, November 30th, 2009

Shoppers showed up the day after Thanksgiving, but their cash went to bargains, sales and less expensive items.

  • More shoppers hit the stores this holiday weekend than last year, but this time they were in search of sales and small appliances.
  • Department stores were a big hit, with just over half of all shoppers visiting at least one during the weekend (a 13% increase from last year!)
  • Cyber Monday, the Monday after Thanksgiving weekend, attracts many shoppers to the Internet for large sales on items that did not sell as well during the weekend. Cyber Monday is an important day in sales for many e-commerce sites, but projections are lower based on the fact that many people who would normally shop during their lunch hours at work are too worried about job security to do so.

Facts & Figures

  • 195 million shoppers ventured into stores during the holiday weekend, as compared with 172 million last year.
  • Average spending, per consumer, dropped to $343.31 per person, down from $372.57 a year ago.
  • 63.8% of shoppers shopped for themselves this year (though Black Friday is traditionally popular among gift shoppers). Also, 31.2% of shoppers were in line for stores at or before 5:00 am.

Best Quote

“During a more robust economy, people may be inclined to hit the snooze button on Black Friday, but high unemployment and a focus on price caused shoppers to visit stores early in anticipation of the best deals.” – Phil Rist, Executive Vice President for Strategic Initiatives at BIGresearch

Discount Fever Breaks at High-End Retailers

Tuesday, November 24th, 2009

Expensive retail stores such as Saks Fifth Avenue and Neiman Marcus are retraining customers to paying high prices for exclusive goods this holiday season…

  • Retailers have driven prices up and maintained sales during this fall by keeping inventory low and promoting a sense of exclusivity.
  • Over the past year, consumers became accustomed to seeing large discounts not only at “big-box retailers” such as Walmart, but also at high-end stores such as Saks.
  • Earnings are improving for large stores because they are selling more items at full price, as opposed to same amount of items at discounted prices (as in Fall / Winter 2008).

Facts & Figures

  • In the fall and winter of 2008, merchandise in luxury stores was discounded as much as 50-70% off full price
  • Inventory at Saks is down by double digit percentage points compared to last year
  • By keeping inventory low this holiday season and playing up the exclusivity factor, retailers can keep items at their full price

Best Quote

“What’s luxury retailing about? It is about a scarcity of supply.” – Stephen I. Sadove, Chairman and Chief Executive of Saks Fifth Avenue

David Beckham May Be the King of Retail… In Madrid Anyway

Thursday, November 19th, 2009

Cristiano Ronaldo, soccer’s most expensive athlete, did not trigger a merchandising monster sale on the same scale as David Beckham did when he started playing for Real Madrid.

  • David Beckham, former English soccer team captain and Manchester United star, came to Real Madrid in 2003 with a large contract in hand and with high merchandising expectations. Basically, he sold a lot of jerseys!
  • Cristiano Ronaldo, the Portugese star forward, was the 2008 FIFA world player of the year and also came from Manchester United to Real Madrid.
  • The lack of jersey sales is somewhat being blamed on the economy, but perhaps it also indicates that Ronaldo is just not as popular as Beckham.

Facts & Figures

  • Ronaldo signed a new $133 million contract with Real Madrid in June, which is approximately three times more than Beckham received when he joined the club.
  • When Beckham joined Real Madrid, team income soared 27%. With the addition of Ronaldo in 2010, team income is expected to rise 3.5%.
  • Real Madrid jersey sales are roughly 20% lower now than they were during the Beckham era.

Best Quote

“There was a spike when Cristiano Ronaldo signed in the summer but there’s not such a big demand now. The economic crisis is taking its toll.” – Eugino Martinez, Shop Owner in Madrid, Spain

Black Friday Calls for Heightened Security This Year

Tuesday, November 17th, 2009

Retailers are stepping up the security and optimizing purchase flow in hopes of improving shopper experiences for the biggest shopping day of the year: the day after Thanksgiving.

  • After the death of an employee who was trampled at a Wal-Mart store last year, stores are gearing up for a big day of retail sales and traffic at all locations by applying strategies used by the Super Bowl and the Olympics.
  • Wal-Mart for example, will have a customized plan for each store, with a flow for each potential buyer that will hopefully improve sales and reduce accidents.
  • Some stores will enforce special rules like, “no running,” and, “wait in line,” but according to experts, anything is possible.

Facts & Figures

  • Wal-Mart stores will open on time at either 5 or 6 a.m depending on the store, but customers will have to wait on a line until a salesperson is available to supervise their shopping.
  • The National Retail Federation created a comprehensive set of guidelines for crowd control at stores, and say that large markdowns and huge discounts create larger crowds and more chaos.
  • Most stores hold dress rehearsals and simulations with their staff in preparation for Black Friday.

Best Quote

“No matter how seamless and airtight you think this [Black Friday] is, the unexpected can happen,” – Ellen Davis, Spokeswoman for the National Retail Federation

Punk Rock Pearls

Thursday, November 12th, 2009
Jewelry designer Tom Binns opens his first boutique mixing goth and glam and making it work…
  • When designers bring old styles back into fashion, they usually miss the mark – like bringing back daisies and bell-bottoms from the ’60s without any mention of Vietnam.
  • Tom Binns doesn’t white-wash his ’80s inspiration: studded leather cuffs with heavy sterling fasteners and emerald-cut crystals, sterling slave collars and spiked bangles, and a silver bullet necklace, to name a few. It’s rock n’ roll jewelry ready for the red carpet.
  • Binns was trained as a fine artist and welder, and signed up for jewelry classes to get girls, which is probably what makes his jewelry such obscene fun.

Facts and Figures

  • Michelle Obama has been seen sporting pieces by Tom Binns.
  • A big silver heart pendant held together by safety pins and bent nails, hung on long strings of tiny pearls goes for $325.

Best Quote

“Here’s the thing: It’s, like, $30,000, so if you feel comfortable with that responsibility, that’s fine.” – Boutique Manager(in response to the journalist’s request to try on a unique necklace)

A Second British Invasion… But With Retail Stores?

Wednesday, November 4th, 2009

With retail sales dropping, U.K. fashion chain Top Shop takes a transatlantic risk.

  • Philip Green is one of Britain’s wealthiest citizens, with a personal fortune estimated in excess of 3.8 billion pounds. He also owns the women’s retail clothing store Top Shop, among other business ventures.
  • After successful runs in the U.K. and across Europe, Green has opened a flagship American Top Shop in SoHo in New York City.
  • Green hopes that associating the Top Shop brand with star power (such as supermodel Kate Moss) will help bring the store acceptance in the U.S.

Facts & Figures

  • Top Shop’s largest global competitor is H&M, which opened its first store in New York in 2000 and operates 175 stores in the U.S.
  • Arcada Group Ltd., of which Green is CEO, made a profit of £164.7 million (in the currency of Great Britain, pounds sterling) and total sales of £1.9 billion in the year ending Aug. 29, 2009. Revenue from Top Shop and Top Man contributed to at least a third of both figures.
  • The Top Shop emporium in Soho cost $25 million to prepare.

Best Quote

“Green’s New York store is a statement of his intent that Topshop will become a global fashion brand,” –  Greg Hodge, Analyst at Planet Retail Ltd. (a London-based industry research firm)

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