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 Babies R Us shop-in-shops at Kohl’s to Ikea’s Sleepeasy pop-up events in New York City, here’s our closeout for the week.
What You May have missed:
Foxtrot inches closer to a comeback
After abruptly ceasing operations, shuttering its stores and filing for bankruptcy this spring, Foxtrot on Tuesday took to its Instagram to announce its comeback.
“Three months after the unexpected closing of all the Foxtrot stores, a group of us former Foxtrot team members are banding together to bring back the original concept,” the post read, noting that the decision to shutter “was not ours.”
The company said it is returning to its roots — prioritizing the best products, serving coffee and connecting with small brands. Foxtrot in its post also said it is “welcoming” its team back.
“We can’t make everything right from the past, and we know there’s work to be done. But we also know opening our doors again is the best way to provide the most opportunities for all,” the post read. “This is the original Foxtrot and we look forward to serving you soon.”
Foxtrot Market in June said it was planning to reopen several locations in Chicago, Dallas and Austin this summer led by Foxtrot founder Mike LaVitola.
Winky Lux secures majority investment
Beauty brand Winky Lux on Tuesday announced it landed a majority investment from private equity firm Core Industrial Partners.
While specific terms of the deal were not disclosed, the brand said the investment will help it accelerate growth and expand its market reach. The deal will also help fund Winky Lux’s digital and physical expansion, according to a company press release.
“Joining forces with Core is an exciting next step for Winky Lux. This partnership enables us to meet customer demand, scale our operations, maximize existing retailer partnerships with Target, Ulta and Shoppers Drug, and reach new heights in product innovation,” Winky Lux CEO and co-founder Natalie Mackey said in a statement. “We’re confident Core’s experience and resources will help us achieve our long-term goals while staying true to our brand values of joy and creativity.”
Los Angeles fashion loses a retail icon as Fred Segal closes its last stores
Legendary Los Angeles apparel retailer Fred Segal has shuttered its remaining stores, Global Icons founder Jeff Lotman confirmed to Retail Dive Thursday. Brand management firm Global Icons acquired Fred Segal in 2019, and Lotman saw potential in the brand’s enduring L.A. vibe, believing it appealed to fashionistas of all ages and could grow via e-commerce and international expansion.
Lotman declined to answer further questions, including what led to the closures or whether Fred Segal’s intellectual property would be put up for sale. Global Icons was left to operate the retailer, which the Los Angeles Times reports was not the original plan. The idea may have been to follow the blueprint at brand management giant Authentic Brands Group, which outsources operations to other companies, a model Authentic founder Jamie Salter has pointed to as a major advantage.
Retail Therapy
Ikea to host ‘Sleepeasy’ pop-up in NYC
Ikea U.S. on Tuesday announced an immersive pop-up experience, dubbed the Ikea Sleepeasy, in New York City’s SoHo neighborhood to promote the company’s latest product line. The new assortment includes mattresses, comforters, temperature regulating bedding, air purifiers and more.
A play on the speakeasy concept, attendants enter the Ikea pop-up through a hidden door in a Swedish bodega. This door takes them to a multi-level exhibit that features the “six sleep essentials” of comfort — light, temperature, sound, air quality and decluttering. The immersive experience includes live music, Ikea food, silent discos and more.
The Ikea Sleepeasy is free and open to the public from Aug. 8 to Aug. 11 and then again from Aug. 15 to Aug. 18.
Skechers teams up with John Deere
Courtesy of Business Wire
For customers that want to feel rugged and comfortable at the same time, Skechers this week announced its new collection with John Deere.
The line is designed for everyone from agricultural and construction workers to “outdoor enthusiasts” and “fashion-minded individuals,” per a Thursday press release. The first capsule collection includes several styles for men and a children’s line which features tractor-inspired designs.
Skechers this week also announced Los Angeles Sparks forward Rickea Jackson would join as the brand’s first WNBA ambassador. Skechers last fall signed NBA players Julius Randle and Terance Mann as brand ambassadors. The company, known for its comfort footwear, entered the basketball space with the launch of two new shoes just a couple of months after entering the soccer cleats space.
What We’re Still Thinking About
200
Courtesy of Kohl’s
That’s how many Babies R Us shop-in-shops will open in Kohl’s by this fall. The department store this week gave a glimpse into the store layout, and stated that locations will have thousands of new products across 90 brands. Kohl’s existing baby assortment will be directly adjacent to Babies R Us, and while shop-in-shops will be in select locations items can be purchased online.
$400,000
That’s the amount of a retention bonus Joann’s Chief Financial Officer Scott Sekella received in March. The bonus was subject to repayment in the event Sekella’s employment with the company was terminated, either voluntarily or with cause, within six months of being awarded. That amount must now be repaid since the CFO left the company this week. The retailer said in a press release that Sekella’s departure was “not related to any disagreements with Joann regarding the company’s financial statements or accounting policies or practices.”
What We’re Watching
Tractor Supply breaks its silence
In the weeks since abruptly yanking its diversity team and scrapping its climate goals, Tractor Supply didn’t comment on social media or return reporters’ follow-up questions regarding the changes. The move, widely seen as appeasing an “anti-woke” protest, upset other constituencies within its customer base. But company executives last week did take questions from analysts regarding their decision during the company’s Q2 earnings call.
When asked about any fallout from the controversy, CEO Hal Lawton said the company “certainly heard a range of feedback,” but that “we have no evidence that it had a measurable impact on our business.”
Net sales in Q2 rose 1.5% to $4.25 billion, and comps declined. Those results don’t reveal much, though, as Tractor Supply’s statement withdrawing its corporate policies came two days before the quarter ended. The company continues to “monitor the situation and look at a variety of datasets,” Lawton said.
