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 Staples knocking down prices for small businesses to Guitar Center partnering with Shark Tank contestants, here’s our closeout for the week.
What you may have missed
Could Nike’s struggles boost Foot Locker?
Nike on Thursday reported Q2 earnings, with revenue falling 8% to $12.4 billion. Although the sportswear giant is struggling under the weight of a DTC strategy that went too far, Needham analyst Tom Nikic said in a client note earlier this week that the brand’s challenges could mean good things for Foot Locker in the long term.
“We don’t believe that NKE has turned the corner from a brand-heat perspective yet, but what we think is more important to FL is what NKE is doing strategically,” Nikic wrote. “Recognizing the mistake of over-emphasizing DTC and under-emphasizing Wholesale, NKE is now working more closely with FL, and we believe that NKE will speak positively about their strengthened relationship with their biggest wholesale partner, Foot Locker.”
Indeed, on a call with analysts Thursday, new CEO Elliott Hill called out Foot Locker specifically as one of the partners he had spoken directly with since taking over in October, and highlighted a broader strategy of rebuilding relationships with key wholesale partners.
Nikic also said that Nike’s efforts to clean up its distribution channels will benefit Foot Locker in the long term “to a greater extent than any other retailer.”
Foot Locker itself has been going through a host of challenges under its turnaround strategy, including from Nike’s pullback a few years ago, but sales fell just 1.4% in its latest quarter.
Toys R Us to debut in Latin America and the Caribbean
WHP Global, parent company of Toys R Us and Babies R Us, on Monday announced a partnership with Cotton Candy International to bring those brands to Latin America and the Caribbean for the first time.
Image courtesy of WHP Global
The first Toys R Us and Babies R Us flagship stores will open in Panama next year, with more stand-alone stores to soon follow across the region, according to a press release.
“Toys R Us continues to captivate consumers around the world, and we are thrilled to partner with a strong wholesale and retail operator like Cotton Candy International to introduce this beloved brand to families in Latin America for the very first time,” Stanley Silverstein, chief commercial officer at WHP Global, said in a statement.
Perfect Moment faces NYSE delisting
Luxury skiwear brand Perfect Moment on Tuesday received a warning from the New York Stock Exchange notifying it that it was no longer in compliance with its minimum stockholders’ equity requirements.
The stock market requires stockholders’ equity of at least $4 million if the company has reported operating losses or net losses in three of the past four fiscal years. Perfect Moment had a stockholders’ equity of $2.7 million as of Sept. 30.
The brand has until Jan. 10 to submit its plan to regain compliance and until June 11, 2026, to meet the market’s listing standards
Retail therapy
Beanie Babies get some bounce
Toy company Ty Warner launched a new spin on its iconic Beanie Babies ahead of the holidays. The four-inch Beanie Bouncers are plush toys that also act like a bouncing ball. Available in specialty stores nationwide, the new toy retails for $5.99.
The Beanie Bouncers come in 12 initial characters including Gilbert the giraffe, Purry the cat, Fins the shark, Buzzy the bee and Swish the axolotl, among others.
Beanie Bouncers toys will be featured in a snow globe display at the exterior of the Sphere in Las Vegas through Sunday.
Guitar Center strikes new chord with pick company partnership
The visibility afforded by an appearance on the TV show “Shark Tank” helped propel a new product into Guitar Center.
Nicholas George and Kevin Mack co-founded guitar pick company Tik Pik. Their design keeps picks, an essential and often ubiquitous accessory, attached to a guitar and within easy reach of the musician when playing the instrument. In partnership with Guitar Center, the product is now available in over 300 physical Guitar Center stores and online.
Guitar Center said in a press release that the Tik Pik features technology that allows them to adhere to your guitar without adhesive. They’re available in a variety of weights to suit various playing styles. Tik Pik and Guitar Center also worked together to develop and offer an exclusive SKU that features a six pack of Tik Piks.
What we’re still thinking about
600+
That’s how many items Staples will cut prices on in January, aimed at helping small businesses. The retailer’s Home and Office Sale will have deals across tech, office supplies, furniture and other categories, according to a Tuesday announcement.
“Staples is dedicated to helping small businesses grow by providing value and savings on the products and services that matter most,” Marshall Warkentin, president of Staples U.S. Retail, said in a statement. “With price reductions across a wide range of essentials, our Home and Office Sale is designed to help businesses start 2025 on the right foot and ensure they have what they need to succeed.”
Deals include up to $320 off select computers, up to $150 off select printers and $15 off print orders of $75 or more.
$1.3B
That’s how much Walmart is investing in Walmart Chile over the next five years, according to a Monday announcement. The investment includes opening 70 new stores, expanding into new regions of Chile and opening a ninth distribution center in the Southern part of the country.
“This is not just an investment in infrastructure and technology; it is an investment in people, in communities,” Walmart Chile President and CEO Cristián Barrientos said in a statement. “We are building a better future for everyone, for future generations and for our children. We trust in Chile. We trust in its people. We continue exploring together.”
What we’re watching
New NRF crime stat tracks with less established FBI database, a ‘coincidence’
This week the National Retail Federation released a survey of loss prevention officers at 164 retailers, focused solely on crime, in lieu of the annual National Retail Security Survey it had conducted for over 30 years.
The new study — the first on crime since the group retracted a statistic from a special report last year — contains some eye-watering numbers. That includes “a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019 and a 90% increase in dollar loss due to shoplifting during that same time period.” Those surveyed also noted a 26% increase in shoplifting from 2022 to 2023.
One statistic from the FBI tracks with the NRF’s finding on shoplifting, but there’s a major caveat.
An older crime database, the National Incident-Based Reporting System, or NIBRS, also shows shoplifting rates up 93% from 2019 to 2023. However, the law enforcement agency has another more established database (the Summary Reporting System) that shows those two years about even.
NIBRS’s spike is not entirely due to actual crime rates, but, rather, also reflects the ongoing addition of new sources of crime statistics. This makes the Summary more accurate for now, CCJ Senior Research Specialist Ernesto Lopez said last month.
When asked about the parallel between the NIBRS and NRF numbers, NRF spokesperson Mary McGinty said by email that the new report was “based on data provided by retailers” and that the similarity of the numbers “is a coincidence.”
