Saks Fifth Avenue’s Post

While the luxury market continues to navigate a downward spiral by trying to branch out, Macy's has chosen to take the opposite route by placing all its bets on its more premium counterparts by developing new strategies. In February, Macy’s announced it would be closing around 150 stores across the U.S. by 2027 as part of its restructuring plan after reporting concerning earnings that reflected little to no growth. Macy's executives said they would turn their focus to the company's more profitable brands, as their premium assortment has proven to be more resilient, which is why this latest development is an important yet viable extra investment that the company is willing to make for the sake of its future growth. More: https://trib.al/cZkbpeG

🚨🚨🚨Breaking News: Luxury retail in the United States continues to consolidate. International brands have more power than ever before. While the acquisition of Neiman Marcus and Bergdorf Goodman by the parent company of Saks Fifth Avenue is sure to streamline operations, one must wonder how much more homogeneous the stores and their offerings will become. Ultimately, the need for personalization and individualization will become more important than ever. This is a key benefit to working with private consultants who are skilled in the practice of image-making.

Saks and Neiman Marcus are merging, but the road ahead is anything but smooth. This opinion piece by Forbes Senior Contributor Steve Dennis explores how this deal could reshape the luxury retail landscape, but also highlights the significant challenges and uncertainties. Will it lead to growth, or are tough times still ahead for these iconic brands? 🌟 #RetailNews #LuxuryRetail #MergersAndAcquisitions #Saks #NeimanMarcus #BusinessStrategy

Macy’s to close 150 more stores in 3 years   As part of a transformation plan unveiled Tuesday, Macy’s said it will shutter 150 underperforming locations over the next three years, with 50 closing this year alone. At the same time, Macy’s Inc. will open 15 Bloomingdale’s stores, at least 30 Bluemercury stores and 30 small-format, off-mall stores.   The decision by Macy's to close 150 stores, even those that are currently profitable, marks a bold and potentially transformative strategy in the face of the retail sector's rapid evolution. From a business perspective, this approach reflects an understanding that long-term success requires more than immediate cash flow—it demands a sustainable model that aligns with shifting consumer preferences and the digital marketplace.    It seems that by reallocating resources to expand smaller formats and invest in luxury and beauty segments, Macy's is aiming to position itself more strategically in the market. Such moves, while ambitious, could pave the way for renewed growth and relevance in a highly competitive landscape. For businesses observing these changes, the lesson is clear: adaptability, informed by a deep understanding of market trends and consumer behavior, could be the key to success.   https://lnkd.in/eM4495_8   #PaletzAdvisor #stratgy #mentorship #enrtrepreneurship

Thanks Beauty Independent and Erica La Sala for sharing my thoughts on the Saks Fifth Avenue / Neiman Marcus Group deal and how it might impact the luxury beauty market and the department store channel overall. Some of my key takeaways: ▶ The Saks/Neimans merger is occurring amidst significant department store challenges as growth has shifted to specialty retailers like SEPHORA and Ulta Beauty. ▶ The declining department store channel has historically been key for luxury beauty brands which could face reduced retail options and leverage as a result of the merger. ▶ This further emphasizes the need for luxury beauty brands to pursue direct-to-consumer growth strategies leveraging their high AOV and gross margin profiles to support profitable new customer acquisition growth. ▶ Perhaps the combination of Saks and Neiman Marcus will allow for a more enhanced retail experience overall that is even better suited for luxury beauty in the future - only time will tell. Great insights also shared by Kelly St. John, Tina Henry Bou-Saba, Karen Hayes and other beauty industry colleagues! True Beauty Ventures #beautyinvesting #beauty #VC https://lnkd.in/eswm8YD3

I think the impact of these two industry luxury leaders will be very interesting to watch. This article focuses more on the beauty side, but there are many less obvious impacts this will have on multiple industries. Jewelry, apparel, accessories, marketing, the list goes on. When you take two known names and structure them to be more profitable and leverage the best of the branded and marketing teams, get ready for an explosion of growth potential. This will also add to an even further divide in the retail sector between department stores following the wealth division in the US. Naming the large department stores now, Saks Fifth Avenue/Neiman Marcus Group, Nordstrom, Dillard's Inc., Von Mauer, Macy's, JCPenney, Kohl's, then discounters.... not many national choices but they all have very focused demographic groups. Stay tuned!

$M Macy’s Q3 - The "First 50" strategy advances🏬 EPS: $0.04 (Est. $0.03) Revenue: $4.74B (Est. $4.72B) “We are encouraged by the consistent sales growth in our Macy's First 50 locations and the strong performance of Bloomingdale's and Bluemercury" - Tony Spring, CEO 📉-6% #Macys #StockMarket #InvestmentManagement

Burberry's recent leadership transition and strategic reevaluation underscore a crucial lesson: ambitious transformations can falter, necessitating swift pivots to adapt. In an interview with Glossy, my colleague Tricia Logan reflected on Burberry's ambitious efforts under CEO Jonathan Akeroyd, acknowledging that their grand plans had not delivered the expected outcomes. However, amidst these challenges, the experience serves as a reminder that while bold innovation carries risks, it remains indispensable for long-term success. #FashionIndustry #BusinessStrategy #transformation #layoffs

Q1 2024 marked an important milestone for Levi Strauss & Co., driven by the US & Canada team's resilience and creativity. This team's dedication and stellar performance have resulted in stellar back to back quarters. It's been a honour and privilege to lead this team. - Our Direct-to-Consumer (DTC) net revenues in the US grew by 10%, while e-commerce surged by 19%, showcasing a strong digital strategy. - Our wholesale strategy reset led to sequential growth and significant margin expansion for the second consecutive quarter. - Our market share increased by 2 percentage points in men’s and 1 percentage point in women’s categories, highlighting our brand's competitive edge. Especially, gaining momentum with Gen Z and millennials and reinforcing our place at the center of culture. - The US & Canada team set new growth benchmarks in driving new product innovation as well as scaling new product categories. The last 24 months of concerted effort in the US marketplace have culminated in a remarkable turnaround, there is always a 12-18 month lag to the strategy coming to life in the marketplace (which is simply co related to GTM timelines). A testimony to incredible execution of the strategy. This is just the beginning of stellar quarter after quarter results, for all the strategies that were put in place in the last 2 years and are now showing green shoots. As a team we are committed executing with excellence and to continuing our journey of growth, innovation, and success. https://lnkd.in/gkGCY8U2 #TeamLevis #ExcellenceInAction #Product #ProudLeader #Teamwork #Turnaround #Ecommerce #DTC #Wholesale #Millennials #Marketsharegains #Performance #Growth #Denim #Innovation #inspiration #Motivation #Retail #Stores #Icon #Brand https://lnkd.in/gkGCY8U2

Exciting times ahead for luxury retail! The integration of technology is transforming the industry, and it's clear that luxury can't thrive without it. Understanding customer needs in physical retail and leveraging technology to enhance their experience is crucial. From locating items and visualizing them on similar people to improving the roles of sales associates and upgrading fitting rooms, the possibilities are endless. I enjoyed this article sharing some details: 1. Acquisition Details: Hudson's Bay Company (HBC), owner of Saks Fifth Avenue, is acquiring Neiman Marcus Group for $2.65 billion. 2. Formation of Saks Global: The new entity, Saks Global, will encompass Saks Fifth Avenue, Saks OFF 5th, Neiman Marcus, and Bergdorf Goodman, along with substantial real estate assets. 3. Financial Backing: The deal is backed by equity and debt, with significant contributions from Amazon Salesforce and leading banks. 4. Retail Impact: This merger aims to stabilize and expand luxury retail amidst declining department store sales and traffic. 5. Future Operations: Each brand will retain its identity under the new conglomerate, which is projected to generate $10 billion in sales. Read more: https://lnkd.in/eGeT_wzs.