KRIZH - RETAIL Architect & Designer KRIZH - RETAIL Architect & Designer

Retail News flash vom 16.3.23

News aus dem Handel – fachkundig kommentiert

Quellen:
https://www.tagesschau.de/wirtschaft/galeria-filialen-schliessung-101.html
https://fashionunited.de/nachrichten/business/primark-waechst-im-ersten-halbjahr-staerker-als-erwartet/2023022750468
https://www.stonewars.de/news/lego-jahresergebnis-2022-veroeffentlicht/

https://fashionunited.de/nachrichten/business/trotz-umsatzplus-jahresverlust-von-allbirds-mehr-als-verdoppelt/2023031050640
https://ww.fashionnetwork.com/news/Under-pressure-superdry-names-advisors-to-help-it-cut-costs,1495515.html

https://fashionunited.de
https://www.prestigeonline.com/my/style/metaverse-fashion-week-takes-place-march/
https://www.oe24.at/businesslive/oesterreich/aus-fuer-oesterreichs-erstes-rein-veganes-burger-king-restaurant/548005017

English Version:

„Galeria Karstadt Kaufhof has been in crisis for years – in the current insolvency proceedings there will now be tough cuts: Germany’s last large department stores‘ group wants to close 52 of the remaining 129 department stores. This was announced by the group itself and its general works council. According to the group, the affected stores will be closed in two waves at the end of June this year and at the end of January next year. The workers‘ representatives previously spoke of „“well over 5000 workers““ who will lose their jobs.
It would not only be jobs in the closing branches that would be lost. There are also plans to reduce floor space and staff in the remaining stores and in the central functions. „“This is a pitch black day,““ the works council stressed.
In the decision to close shops, the company had cited various reasons, such as the rent burden, the condition of the buildings, the need for investment, the development of population and purchasing power at the locations and the economic development of a department store. For the loss of their jobs, the affected employees will receive a severance payment amounting to twice their monthly gross salary. In addition, according to the company, they will receive the offer to transfer to a transfer company in order to further qualify for a new job.
Two years ago, Galeria Karstadt Kaufhof had already closed more than 40 of its 172 shops in the insolvency proceedings and dismissed about 5000 employees. More than two billion euros in debts were also cancelled. However, this only relieved the group temporarily.
According to the plans of the department stores‘ group, the remaining 77 branches will all be comprehensively modernised in the next three years. In future, the group wants to concentrate its product range primarily on clothing, beauty care and home accessories. However, the creditors‘ meeting in Essen on 27 March still has to give the go-ahead for the new start. If the meeting rejects the insolvency plan, the company faces immediate closure. I am not at all sure that the 77 remaining branches have a CHANCE. People only ever talk about the economic data. Saving is necessary, but you can also save yourself to pieces. How exactly is it supposed to go on? They say local competences should be strengthened and stores first, instead of online. Is that really enough and, above all, is it the right measure? and who will lead the shrunken company into the profit zone? Insolvency administrator? the current management? 100 closures and job losses for 10,000 workers in 3 years. On top of that, the state, suppliers and landlords will incur huge losses. So a huge burden on the management team and employees. Aer the main question is the raison d’être. Luxury a la Selfridges and KaDeWe is fine, the verticals do it cheaply. So where do you want to find your place? The centre is currently being mercilessly torn apart. The cities are becoming emptier and less frequented. Galeria Kaufhof/Karstadt is gone, P&C and Görtz have gone bankrupt, many chain stores such as H&M, Zara and Douglas are being closed. The online trade in general, but also the lack of adaptability in recent decades, where the verticals have grown and eaten their way through the consumer cake like Packmann, making it smaller and smaller. It’s a pity, it’s unavoidable and leaves customers and employees perplexed. On the other hand, the world is moving on and other new concepts will find their way. That’s the way it has always been in trade and that’s the way it will continue. Maybe we should just stop trying to keep dead horses alive.“
„““The Irish textile discounter Primark was able to increase its sales surprisingly strongly in the first half of the 2022/23 financial year. The retailer now also expects a higher margin due to the recent easing of cost pressures. Primark’s sales in the first half of the year, which ends in mid-March, are expected to have risen by 19 per cent to 4.8 billion euros, not least thanks to a successful Christmas trading period, the company said in an interim statement. The main reason was strong growth in customer footfall in shops in the UK and the rest of Europe. In view of the surprisingly high sales growth, the management now expects an operating margin of over eight per cent for the first half of the year, adjusted for special effects. In the same period last year, the margin was 11.7 per cent, but since then, cost increases due to the strong US dollar, higher transport prices and general inflation in energy and personnel expenses have weighed on the result. For the second half of the year, the textile retailer expects lower like-for-like sales growth than in the previous months, but still expects to be able to exceed previous expectations.
Detailed results for the first half of the year will be published on 25 April, showing that it is possible to be successful in the low price segment and even without an online shop. It’s getting a bit emptier in the buildings around Primark, as I said earlier. Shopping centres excluded.“
“ Strong demand for Lego products ensured that the toy company from Billund, Denmark, posted a profit of 13.8 billion kroner – about 1.85 billion euros. This was announced by the company on Tuesday. This means a plus of four per cent compared to the previous year. Even then, the annual profit was a record for Lego.
„“We have continued the strong journey of the past years,““ said Lego CEO Niels B. Christiansen during the online presentation of the figures. Despite global challenges such as inflation-triggered pressures on material, supply and energy costs, he said the Lego Group had again delivered very strong results and exceeded expectations following exceptionally high growth years in 2021 and 2020 – and fittingly in the year of Lego’s 90th birthday. „“In our 90th anniversary year, we reached more children than ever before,““ Christiansen said.
Annual sales rose 17 per cent to (€8.7 billion) in 2022. In the past year, 155 new Lego shops were opened, it added, including in good locations such as in the centre of Munich as well as in Dublin and London. Despite the closure of all 81 shops in Russia, there were thus 904 Lego shops worldwide.
In view of the increasing online trade, it might seem a bit like a step against the trend to open new shops, Christiansen said. However, these shops are a great opportunity for customers to get their hands on the little building blocks. That is why they are also building new shops in China, for example. The exit from the Russian market has obviously been compensated, even if it has left its mark. Lego has not quantified the exact costs. This example also shows that it is possible to do good business. In their own stores with an experience factor, a seamlessly linked online shop and cooperation with other strong partners. I’m going to go down to the cellar right now and see if I still have some old vintage bricks. They should be worth something

The American brand Allbirds is able to increase turnover by 7,3% but loss is double as high as in 2021.
Superdry adapts their forecast for 2023 and hires advisor to help cut costs.

Louis Vuitton opened its new location at Graben 20 with a soft opening. This location over 3 floors is located only 30m from the old location. In 2024, Christian Dior will move in with a Parisian-style Maison. There are also other things happening in the first district: Tommy Hilfiger moved from Kohlmarkt to Graben, Moncler is moving into the former Zegna space. Zegna is next to the Campari Bar at the former Amicis location. Van Cleef is rebuilding, as is Von Köck – the latter now has a temporary store in the golden quarter near the Lederleitner exit. Hermes is also still rebuilding and there seems to be news at Fendi and YSL.

Tamaris launches new store concept „lifestyle“ as a test in Dortmund, Germany. The concept includes clothing as well.

„Renowned fashion labels such as Tommy Hilfiger, Dolce & Gabbana and DKNY, which were present at the first MVFW 2022, return, while new brands such as American jeweler Ben Bridge and Korean cosmetics brand Amorepacific join.
Adidas is the biggest among the new names, making its MVFW debut.
The second edition of MVFW will be held March 28-31, 2023, on Metaverse’s Decentraland platform.
The event will follow the real fashion weeks that take place around the globe from New York to Paris in February and March.
DKNY is coming up with DKNY.3 – a concept that includes an art gallery, pizzeria and rooftop lounge. Dundas‘ avatars are presented in partnership with UME and his wearables with DRESSX. Winning designs from Dolce & Gabbana’s Future Reward design competition will also be on display at MVFW 2023.
Other exhibitors at MVFW 2023 include digital fashion platform Altr and wearable startup Gaian. Meanwhile, Alo Yoga will offer yoga and meditation sessions on the platform. An interactive party will be co-hosted by Diesel and HAPE.

MVFW 2023 will also host Miami Fashion Week, the first fashion week recognized by the Council of Fashion Designers of America (CFDA) to participate in the event.“

„End for Austria’s first purely vegan Burger King restaurant.
It was only in July 2022 that the first Burger King with an exclusively vegan range opened at Vienna’s Westbahnhof station. Now the meatless branch is history again.
In the subway station at Westbahnhof, the vegan Burger King restaurant could not be overlooked: With green logo and branding as well as the slogan „“Schmeckt Pflanztastisch““ the „“100 percent vegan““ assortment was advertised. The popular burgers and Whoppers were made entirely without animal ingredients.
Expectations were high at the opening, but are unlikely to have been entirely fulfilled: After only eight months, the pilot project will be terminated again. The location would be converted back into a regular Burger King branch: In the future, the vegan products will be available alongside the regular meat burgers.“
A neverending story for Adidas and a loss that is hard to imagine is still about the end of the partnership with the controversial musician kaniye West, which Adidas had stopped at the end of last year after his repeated anti-Semitic statements. Adidas had made billions in sales with the Yeezy brand.Adidas had not specified in detail what should happen to the goods already produced and was still examining various options. The company warned, however, that it would lose about 1.2 billion euros in sales and about 500 million euros in operating profits this year alone if the stock was not sold. If the goods were not used at all, they would have to be written down by another half a billion euros. In addition, there would be further one-time costs of up to 200 million euros.Rumours that an agreement had been reached with West to sell the remaining stock were false, said CEO Björn Gulden. No decision has been made yet, he said, there are many possibilities, and there will be no rush to make a decision. Destroying the stock is not an option from a sustainability point of view, he said. Putting the product on the market without the Yeezy label is not honest. If Adidas decides to sell the shoes after all, the proceeds will go to those who were hurt by West’s comments. West would then also receive a share of the proceeds. Of course, they don’t want to do that either „The normal sale of the product involves a great reputational risk,“ Björn Gulden said at the presentation of the balance sheet. „The other side is that we burn it and it disappears, then we have another problem – that of sustainability. „the whole thing is a story worthy of a film and might end up in the cinemas one day.this is real retail gossip!
„Do you know the Reternity brand? You’re not the first ones. To change that, the company came up with something special, but it backfired. As a result, young people got into fights with the police in Hamburg’s city centre. The trigger was an announced giveaway campaign by Reternity. Hundreds of young people had followed a social media announcement: They were looking forward to free brand-name clothes that were to be given away at the Mönckebrunnen. When the police told the 300 to 400 people waiting that there would be no giveaway, the situation escalated, the Hamburg police said on Sunday. Instead of going home, young people harassed passers-by and taxi drivers. Up to 400 young people then blocked Mönckebergstraße, according to the police.
As the situation still did not calm down, two hundred riot police were called in. The officers then also used pepper spray and batons. It took almost five hours before calm returned to Hamburg’s city centre.
The company Reternity, which wanted to organise the giveaway, announced in a Tiktok video that they had been completely surprised by the rush of so many people. For this reason, the campaign was stopped. The situation had been misjudged and they wanted to apologise for this mistake. However, the company explicitly distanced itself from the riots and the misbehaviour of some of the youths. Initially, the police announced on Saturday that the announcement of the giveaway campaign on the internet was a fake post, i.e. a deliberate false report. The two founders Lauren Riedel and Tom Schmidt from Oldenburg, who have no background in fashion or marketing, have set themselves the goal of becoming the most successful streetwear brand in Germany. They started with simple T-shirts that they printed by hand in their room in Hamburg. Today, they focus on particularly high-quality products with minimalist lines for their looks. Mostly, the motifs play graphically with the name of the brand, which is supposed to stand for the longevity of the products. Well, now they are experiencing a setback for the time being. Let’s hope that the brand will not be permanently damaged. But sometimes bad news turns into good news. Will we see Reternity as brand of the month soon? Who knows…“