Today in retail, North Face is relying on customer loyalty and improving streetwear sales to drive results and Foot Locker is growing its profile, while digital and experiential shopping is changing the way retailers do business. Additionally, Ross Stores failed to benefit from shoppers’ bargain hunt as inflation hit record highs.
VFC’s North Face Leverages Loyalty and Streetwear to Top Sales
While sales of parent company VF Corp., as well as its three main sister brands (Vans, Timberland and Dickies) all recorded a decline of 10% to 25% in the Asia-Pacific region during the three months ended On April 2, North Face posted a 24% decline in APAC revenue growth for the quarter, alongside the brand’s global gains of 33% for the full year just ended.
Although outgoing North Face Global Brand President Steve Murray will be replaced next month by Nicole Otto, a 16-year Nike executive, the 30-year veteran of the apparel and footwear industry said that the brand’s current results had been set in motion years ago, long before things like COVID-Jan 19, inflation and supply chain bottlenecks were even on the map, but were also helped by external tailwinds, notably the general buoyancy of the outdoor sports category which has been growing for years.
North Face was acquired by VFC, the Denver-based apparel conglomerate, 22 years ago and has been a steady and growing mainstay of the company ever since.
Foot Locker strengthens its presence in the sports retail market
Foot Locker’s stock price rose more than 5% in early trading Friday (May 20) after the company reported its results for the first quarter of fiscal 2022.
The company’s total sales jumped 1% for the three months ending April 30, although same-store sales fell about 2% in the same period, meaning shoppers are likely satisfied. their clothing and footwear needs by buying them online more often.
Earlier this month, Foot Locker became Adidas’ premier basketball partner in a deal that will also accelerate so-called ‘energetic’ and ‘hype’ launches, and grow and expand the brand in the women’s, children’s and apparel sectors of the business.
Ross stores not profiting from shoppers’ bargain hunt
Shoppers’ inflation-fueled quest to maximize every dollar clearly hasn’t helped discount fashion retailer Ross Stores, which saw its stock plummet nearly 25% early Friday (May 20) following… a first-quarter earnings report filled with missed targets and revised future guidance.
Sales at Ross fell about 5% to $4.3 million for the three months ending April 30, the company said in a press release, adding that its inventory levels also rose sharply. 60% for the quarter.
Ross’ performance in the first quarter shows that not all retailers are feeling the “lower trade effect” that discount retailer Ollie’s said in March would come with escalating inflation rates.
AMZN vs. WMT Weekly: Retailers limp in normally sizzling summer heat days
With summer officially kicking off in a week, and our instinctive urge to get out, hang out, have fun and relax, this year’s hot season is shaping up to be different than we expected. over the past decades.
It’s not just Amazon and Walmart that are seeing the change, but every general merchandise, apparel, and durable goods retailer in the neighborhood. Recognizing this shift and accepting the reality that once-in-a-lifetime inflation, coupled with rising interest rates and the growing likelihood of a recession, is profoundly affecting consumer spending habits.
As demand for discount deli meats surges, Walmart’s U.S. CEO John Furner and his boss, CEO Doug McMillon, noted there are also pockets of strength in some big-ticket items like consoles. games and patio furniture sets.
Retailers rush to redesign stores amid shift to digital and experiential shopping
Andre Machicao, senior vice president, merchant solutions at Cybersource, a Visa solution, told PYMNTS CEO Karen Webster that the omnichannel movement has been “extremely catalyzed” by the global health crisis. Now it is part of everyday life.
COVID-19 seems to be in retreat, but the digital shift it has forced is going nowhere. What it did was create a whole new set of experiential challenges for traders.
Discussing key findings from “The 2022 Global Digital Shopping Playbook, US Edition,” a collaboration between PYMNTS and Cybersource, Machicao noted that only 28% of US consumers use smartphones to navigate physical experiences, calling it “relatively low compared to some of the other countries in the global study. However, where it does happen is in improving consumer satisfaction with the in-store shopping experience.