Amazon’s Legal Win a Boon For Third Party sales
Third party sales, which makes up over half of Amazon’s volume, notched a major legal win this week out of Tennessee. During the “hoverboard” craze of holiday 2015, there were notably defective and dangerous products coming mainly from China. The less reliable of these were typically sold by hard to track and semi anonymous third party distributors. One of these caught on fire and burned down a million dollar Nashville home. The family sued Amazon as responsible for selling a dangerous product. The ruling was that Amazon is not directly responsible for third party products, thus giving them an additional layer of legal insulation going forward on third party products.
Macy’s Wants Every Location to Have a Backstage
Macy’s off price Backstage concept has been a success so far. By the conclusion of 2018, they’ll be in 100+ Macy’s. Currently sitting at 650 locations overall this would set a goal of ~550 more Backstages to reach every store, which is the corporate long term goal. In addition to standalone Backstage outlets, this rolling out of inline Backstages, the revamping of the loyalty program and trimming down underperforming Macy’s stores, the company has seemed to show it’s vision for the next few years.
Bearpaw picks up Flip Flop shops
California boots brand Bearpaw made some waves picking up speciality retailer Flip Flop shops and their 59 global locations. With a heavy dependence on Fall/Winter sales, Flip Flop Shops make a natural pairing to reduce the heavy dependence on Q3/Q4 deliveries. Since 2015 Flip Flop Shops has gone from 90 to 59 locations. The sales price was not disclosed.
Genesco’s Q1 Earnings a Let Down
Genesco was a story of volatility, it’s Schuh division experienced negative comps of 13% on top of LY’s 10% comp gains. Journey’s experienced an inverse with 6% comp gains on last years -5% comps. Johnston & Murphy posted a strong 7%, on the other hand Lid’s continues to get pummeled with -7% comp sales. On an aggregate level the company lost $2.3 million, however aggregate sales beat expectations by $9 million, posting at $645 million versus the anticipated $636 million.
Neiman Marcus’ Q3 a Mixed Bag
Growth of 4.8% in revenue which was driven by 6% comps would seem to portend great things for Neiman Marcus. Unfortunately for Neiman the servicing of their debt from past sins still dragged them to a net loss of $19.9 million. Looking forward Neiman is closing 3 more of their Last Call concepts, reducing the count to 24. On the upswing is their Idea Factory store which will be in 5 Neiman locations by the end of June. Online sales were up 17% and traffic up 15% somewhat comparable to what we have seen from other brick and mortar retailers.
Sarah Jessica Parker Hits NY’s South Street
Howard Hughes redevelopment of NYC’s South Street Seaport will contain Sarah Jessica Parker’s branded store, the third in the US and the fourth overall (one location in Dubai). The Midtown popup was such a success that her and business partner Manolo Blahnik wanted to plant their flag in the newest redevelopment in Manhattan.