TJX Plans to Stay True to Hands-On Shopping Post COVID-19
E-Commerce is growing at an astounding rate and making brick-and-mortar retailers seem more and more like a thing of the past. What does TJX brand's decision to stay true to hands-on shopping mean for their future?
TJX, the parent company of TJ Maxx, Marshall’s, and Home Goods, claims it doesn’t need to rely on e-commerce. In regard to the company’s plans post-coronavirus, CEO Ernie Herrman was quoted in Forbes magazine, saying, “Strategically, nothing will change. We will not look to e-commerce as our major leverage point to get us through Covid and out the other side.”
Both before the COVID-19 pandemic and now, it is clear that TJX does not see e-commerce as a worthwhile path to pursue. Before the pandemic, TJX’s online revenue accounted for just 2% of their total sales. Compared to other retail stores whose online sales averaged closer to 15%, it’s clear that TJX stores present considerable strength in their brick and mortar settings. In fact, TJX’s websites were actually shut down for two weeks at the end of March, while it seemed every other retailer was scrambling to get their online sales up amid physical store closures. Even now, TJ Maxx’s website limits the number of orders placed per day in order to “get back up and running.”
TJX prides itself on being a bargain-hunting style of retail, where loyal customers explain the experience of excitedly searching through items and finding the best deal as central to the TJX brand. When stores reopened earlier this month, TJ Maxx and Marshall’s had lines out of their doors of eager shoppers looking to feel that sweet high of a major discount after months spent in quarantine. This “treasure-hunt experience” is why TJX executives are leaning away from rather than into the growing land of e-commerce.
While some experts say TJX’s decision to mostly steer clear of online sales will come back around to hurt them later, some say the opposite. The company’s sales are skyrocketing after their grand re-opening. It seems there is a built-up demand for lower priced items as many people try for financial caution during a time of economic crisis.
Photo Credits:
https://www.cincinnati.com/story/news/2019/11/27/t-j-maxx-homegoods-marshalls-sold-products-after-recalls-were-announced/4317120002/
https://seekingalpha.com/article/4073764-buy-tjx-companies-discount-price
https://www.heraldcourier.com/news/large-crowd-greets-marshalls-grand-opening-this-morning/article_4e555208-c8b7-11e4-a459-f3d74e9b807c.html
https://www.forbes.com/sites/stevendennis/2019/10/08/late-to-the-e-commerce-party-what-marshalls-at-home-and-others-got-wrong/#49615d812470
Report: Grace Carlos
This New Retail Store Sells Only Consciously-Made Clothes
American Eagle's newest brand, a brick-and-mortar store that sells only consciously-made clothes
As the world becomes more socially aware, brands are beginning to cater to an activism-centered consumer base. This past week, American Eagle Outfitters Inc. announced it was branching out from apparel brands by launching a retail store named Unsubscribed. Unsubscribed is set to be a brick-and-mortar apparel and accessories retail store with only one location: 73 Main Street, East Hampton, New York. Depending on Unsubscribed’s success, others may follow.
Unsubscribed promises to promote quality over quantity, unlike the fast fashion its sister brands use. Fast fashion is a term that describes companies who capture short-lasting fashion trends and quickly produce cheap, unsustainable clothing to match. Unsubscribed is the fourth company in the American Eagle Outfitters Inc. portfolio, following Aerie, Todd Snyder, and American Eagle.
Unsubscribed is branching out to feature consciously-made garments, many of which were created by third party retailers. Touting their “slow fashion” mission, the company plans to feature only two annual collections. Brands such as Indigo Africa, Boyish, Veja, and Melissa Joy Manning will also stock the store, in addition to Unsubscribed’s private label. It’s a remarkable switch from American Eagle Outfitters’ previous brands.
Though it has been rather elusive on social media thus far, Unsubscribed is creating a website that will be up shortly. The website, however, will not sell products online as part of its deviation from fast fashion. It will instead feature content and apparel from the brand. You can also find the company at @Unsubscribed on Instagram. Be sure to give them a follow!
Photo Credit: @Unsubscribed on Instagram and Women's Wear Daily
Report: Rachel Attar
Things Aren't so Glamorous for Neiman Marcus
Things for high-end fashion brand Neiman Marcus aren't looking so pretty right now.
Things for high-end fashion brand Neiman Marcus aren't looking so pretty right now. Last Thursday, it was revealed that the company had filed for Chapter 11 bankruptcy, after previous reports were rumored in mid-April. Prior to this, the brand was already four million dollars in debt. CEO Geoffroy Van Raemdonck made a statement to CNBC saying, "Like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business."
According to the Financial Post, the paperwork was filed in a Houston courthouse. Neiman Marcus and their creditors agreed to a $675 million dollar financial aid package to help the company restructure. In addition, they also agreed to a second package of $750 million dollars from creditors. This would not only help with their bankruptcy, but also supply extra liquidity for them, when they eventually recover from their struggles. Lastly, this deal completely puts the creditors in charge of the business, and will have them become the majority owners this fall, once the company is likely to recover.
Neiman Marcus is one of many major brands and companies struggling financially during 2020's COVID-19 pandemic. J-Crew also filed for Chapter 11 bankruptcy recently. However, Neiman Marcus was experiencing some struggles prior to the pandemic, which naturally increased once the pandemic hit. As per Bloomberg, Neiman Marcus had started closing outlet stores in March, and 500 jobs were cut within the operation.
Report: Corine Gauthier
Vogue And The CFDA Team Up to Make History.
Vogue and the CFDA, the Council of Fashion Designers of America, have teamed up to raise awareness and protect the future names in the retail business.
As the world feels like it may be crumbling, the fashion industry has been taking a stand to fight against the global pandemic, COVID-19. Vogue and the CFDA, the Council of Fashion Designers of America, have teamed up to raise awareness and protect the future names in the retail business. A Common Thread, the fashion fund originally created for relief efforts in regards to 9/11, is doing their part to keep the industry on its feet as the world fights COVID-19 together.
This relief effort is not only a way to expand the possible income of donations for those who cannot maintain their businesses, but an inside look on designers who want to be able to fulfill their dream. A Common Thread is giving these designers a chance to speak on a national platform and discuss their struggles throughout the craziness that is the world today. Designers are able to apply for this fund if they find that they are eligible and give a brief statement on how this charitable organization can impact their business.
Giving small designers the opportunity to represent themselves in collaboration with an iconic organization such as Vogue, adds a little positivity to the struggles we are all facing. Saks Fifth Avenue, Coach Foundation, Ralph Lauren Corporate Foundation, and Michael Kors are just some of the well established businesses that have come in to support this cause. Even though we all may be sporting our best pair of sweats as we wait this pandemic out at home, we all know how confident and radiant we feel when we throw on our favorite pair of jeans. In a time where fashion may not be our top priority, Vogue and the CFDA are asking for our help in support of those who really need it.
Look out for the June/July issue of Vogue featuring a Common Thread on its cover, you won’t want to miss it. If you’re looking to support a Common Thread or send in an application, you can reach the donation page at: https://cfda.com/programs/designers/cfdavogue-fashion-fund
Photo Credit: Vogue.com
Report: Kaitlin Gallagher
Retail Stores Face COVID-19
How retail stores are facing closures and surviving via e-commerce - barely.
As the infectious COVID-19 continues to spread throughout the world, millions are being affected including families, the stock market and businesses. Some of the most popular and famous retail stores such Macy’s, Kate Spade, Coach, Victoria’s Secret, Apple, Urban Outfitters and more. Facing closures, changing certain policies and suspending returns, have all been some of the consequences faced by these major companies due to the coronavirus. It may be weeks, or even several months before stores will be able to open up once again. This raises the question, how will these stores survive via online shopping during this?
Retailers have been offering free delivery fees and raising their online sales to increase the attention of everyone at home with nothing much to do. Companies have even made the most of this pandemic by creating positive headlines for these sales such as the multi-channel retailer Missguided, “Plans that aren’t cancelled: Taking selfies in new clothes.” For those who own small businesses who cannot move to ecommerce, are still offering pick-ups for customers, no restaurant dining, and home deliveries. No one is sure of how soon the public will be able to return back to their previous lives of going out. For now, this remains as the new “norm” as this pandemic continues to affect thousands.
(Photo Credit: RetailTouchPoints.com, WGNTV.com, ABCNews.go.com)
Report: Pamela Valdez
Fast Fashion: The Trend That Has Overtaken The Retail World
Fast Fashion Affects the Environment More Than You'd Think, So Here Are Some Tips For Making Your Clothes Last
Fast fashion is a term used to describe retailers who quickly produce inexpensive clothing to keep up with the runway’s latest trends. In theory, this process sounds flawless. You get to have the trendiest clothes as soon as styles come off the runway, without paying designer prices. Buying clothing from these stores is convenient, but it does come at a price. Fast fashion negatively impacts the environment in many ways, including carbon emissions, drying up water sources, and polluting rivers and streams. Also, according to business insider, “85% of all textiles go to the dump each year, and washing some types of clothes sends thousands of bits of plastic into the ocean.” Trends also change so quickly that consumers are buying more clothing than ever before, but only keeping the items for half as long. These kind of stores have taken over the fashion industry, making it almost impossible to buy affordable clothing from anywhere else.
That being said, you can help make a difference by taking steps to make your clothing last longer. One step to keep your clothes in their best condition is to keep them away from dust, heat, moisture, and light. This means storing them in your closet, and not in an attic or basement. You can also prolong your clothing by maintaining your closet’s cleanliness and keeping it free of dust. Another helpful, and probably the hardest step to abide by is to hang your clothing up carefully after taking it off instead of just tossing it on the floor. The final step is to get a little more wear out of your clothing before tossing it in the washing machine, as they can be quite damaging to the textiles used in producing these clothes. Fast fashion is a trend that has overtaken the retail world, but taking these steps to lengthen the lifespan of your clothing can help make a difference.
Report: Libby Ayers
At the rise of Covid-19 many of us first questioned the timeline of fashion week and would we see the regular calendar continue - the question weighed over many of us for months! It was refreshing to see design houses and designers across the globe take advantage of the uncertainty and plow into production mode - thus my interest in Jerri Reid New York - The Black Designer based in Brooklyn New York wow’d instagram with his latest collection paying homage to the Black Is King film which debuted earlier this year in July. I was taken aback at quick of a turn round the young designer produced and released his well crafted designs reflecting some of the films most memorable moments.