Today’s news in brief-7/2/24
Amazon’s Luxury Stores in Europe have partnered with resale platform Hardly Ever Worn It to offer pre-owned luxury items across various categories. This collaboration aims to provide customers in the UK, Germany, Spain, and Italy with access to high-quality, designer goods that have hardly been worn. Hardly Ever Worn It ensures the meticulous screening of each item to maintain the highest standards. Amazon Fashion sees this collaboration as an opportunity to expand its luxury offerings and cater to evolving customer preferences, while also promoting sustainability through a circular economy model.
Sainsbury’s has introduced its new strategic plan, “Next Level Sainsbury’s,” building upon its previous Food First Strategy launched in 2020. The company outlines eight commitments to achieve by March 2027, including food volume growth, profit leverage, customer satisfaction, and cost savings. This strategy aims to position Sainsbury’s as the top choice for food, enhance customer loyalty, further develop the Argos brand, and focus on cost-saving initiatives.
American fashion designer Zac Posen has been appointed as the executive vice president and creative director of Gap Inc., as well as the chief creative officer of Old Navy. Posen brings extensive experience in various areas of fashion, including couture, ready-to-wear, and accessories. His role involves leading design, merchandising, and marketing for Old Navy, the largest brand under Gap Inc. Posen’s appointment reflects Gap Inc.’s focus on creativity and brand revitalisation across its portfolio.
Estée Lauder has announced a restructuring program that will involve cutting up to 3,100 jobs globally due to a 7% decline in net sales for the second quarter of fiscal 2024. Challenges in Asia travel retail and disruptions in other regions have contributed to the decline. The company plans to expand its Profit Recovery Plan to address these challenges and restore profitability. Despite the sales decline, certain product categories and markets have shown organic growth, indicating potential for future recovery.
UK supermarket sales continue to grow, reflecting a slowdown in food inflation and normalised consumer behaviour post-Christmas. Reduced promotional activity and increased online shopping are notable trends, with shoppers prioritising cost-effective meal options and adopting flexitarian diets. Lidl, M&S, and Ocado are among the fastest-growing retailers, highlighting shifts in consumer preferences and spending habits.
The Co-op plans to install secure till kiosks, locked cabinets for spirits, and AI technology to address a 44% surge in retail crime. Incidents include theft, abuse, and harassment, with organised crime posing a significant challenge. The company emphasises the need for consequences for offenders and calls for collaboration between law enforcement and retailers to deter crime effectively. The Co-op’s proactive measures aim to create safer environments for both customers and staff.