How Moosejaw & Walmart Make Music

The Wall Street Journal: “Walmart is betting that even under its umbrella, Moosejaw and other brands like the feminist-leaning ModCloth and men’s fashion clothier Bonobos can remain convincingly hipster. But Walmart has such a distinct culture; will it be able to maintain an appropriate distance or will executives from Bentonville swoop in, forcing everyone to wear those iconic blue big-box vests? … Some suppliers of high-end gear abandoned Moosejaw’s shelves to avoid doing business with its new parent.”

Yet: “Moosejaw’s loyalist shoppers appear unfazed. While there have been reports of social-media backlash against Walmart ownership of firms like ModCloth, Walmart’s overall e-commerce sales have picked up … Moosejaw will soon have a rolling pop-up store pulled across the U.S. by a semi truck—another innovation private-equity backers may not have sponsored. With access to Walmart’s shipping rates, Moosejaw.com offers free two-day shipping, which is increasingly expected by online shoppers.”

“Then there is the beer cooler. Much has been made of alcohol policies at Walmart subsidiaries, and Moosejaw’s victory in this category is notable. Before the acquisition, Bentonville executives noticed a padlocked beer cooler at its Madison Heights, Mich., headquarters … Shortly after the deal … Chief Executive Doug McMillon concluded that because Moosejaw had responsible policies, the cooler could stay. At this month’s shareholder meeting Mr. McMillon gave analysts a glimpse of why he’s bending the rules. He carries a list with him of top retailers from decades gone by, a sobering list that includes struggling Kmart and Sears that reminds him of the fleeting nature of success. Yesterday’s retail kings die ‘because they don’t change,’ he said.”

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Lightbox Jewelry: Lab Diamonds via DeBeers

The Washington Post: “De Beers, the diamond giant that for years has promoted gemstones as pricey and precious, said it will begin selling man-made diamonds that cost about a tenth of the price of a mined gem. The line of pink, blue and white laboratory-grown diamonds, which De Beers will sell under a new brand, Lightbox Jewelry, is designed to persuade shoppers to think of synthetic diamonds as a ‘fun piece of fashion jewelry’ instead of a lifelong investment, executives said. Prices will start at as low as $200 to appeal to a new generation of shoppers.”

“The lower-priced jewelry is as much about changing consumer habits and preferences as it is about economics, industry experts say. Today’s 20- and 30-somethings — bogged down by heavy student debt loads and stagnant wages — have less spending power than their predecessors did, but they have different values, too: A recent study by De Beers found that millennials would rather splurge on overseas holidays, weekend getaways and electronics than on diamonds.”

“Lab-grown diamonds — which are created in hot, pressurized chambers over weeks, instead of a billion years underground — have been growing in popularity as Americans spend less on traditional diamonds. The stones are increasingly marketed to younger shoppers as a cheaper, ethically sourced alternative to mined diamonds. But their chemical makeup is the same (all diamonds are made of just one element: carbon), and experts say they are indistinguishable to the naked eye.”

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Lord & Taylor’s New ‘Flagship’: Walmart.com

The New York Times: “Lord & Taylor is teaming up with Walmart to create an online store on Walmart.com that will offer about 125 fashion brands, including Tommy Bahama, La La Anthony, H Halston and Effy. Billed by both companies as a ‘premium’ shopping destination, the new online store reflects Lord & Taylor’s desire to reach a wider audience and Walmart’s hope to attract a different type of customer.”

“For Walmart, the partnership is the latest attempt to reach a more urbane shopper. As part of that effort, Walmart has made a string of acquisitions over the past year, purchasing the clothing sites Bonobos and Modcloth and starting its own bedding and mattress line, sold exclusively online.”

“The Lord & Taylor online store on Walmart.com is expected to open in the coming weeks. Lord & Taylor will be responsible for shipping the clothing to customer’s homes. It will continue to sell the same brands in its stores and on its own website at the same prices as it does on Walmart.com … Lord & Taylor executives referred to their site on the Walmart website as a new kind of ‘flagship’ store.”

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Stadium Goods: Getting Kicks From Luxury

The New York Times</strong>: “To walk into the 3,000-square-foot Stadium Goods store in SoHo is to be confronted by rows and rows of pristine, shrink-wrapped athletic footwear. Look closely and you might be a little stunned by the price tags. On a recent afternoon, for instance, a pair of white Nike Jordan 1’s by the fashion designer Virgil Abloh (Off-White, Louis Vuitton) originally priced at $190, was selling for $2,750 … Nearby was a rare pair of Adidas PW Human Race NMD TR, designed by the musician Pharrell Williams. Price tag: $12,350.”

“Sneaker fanatics have been around for decades, with swaps and buys largely happening on eBay or as personal transactions. But it’s only in the last few years that the reseller market has accelerated and gone sharply upscale. John McPheters, who co-founded Stadium Goods with Jed Stiller, says the shift has been driven by ‘men who are now learning from childhood how to treat fashion as a sport — the way that women have always treated fashion’.”

“The partners believe the future of sneaker retail will be a hybrid model combining traditional channels and aftermarket selling. ‘We’re a microcosm of what’s hot,’ Mr. Stiller said, noting that in the sneaker world what’s trending is not necessarily the newest item. ‘Where a lot of retailers are dependent on what brands are releasing at the moment, we’re not. Ninety-five percent of our stock are styles that are no longer on the market’.”

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H&M Stores Buy Into Big Data

The Wall Street Journal: “H&M, like most retailers, relies on a team of designers to figure out what shoppers want to buy. Now, it’s using algorithms to analyze store receipts, returns and loyalty-card data to better align supply and demand, with the goal of reducing markdowns. As a result, some stores have started carrying more fashion and fewer basics such as T-shirts and leggings … H&M’s strategy of using granular data to tailor merchandise in each store to local tastes, rather than take a cookie-cutter approach that groups stores by location or size, is largely untested in the retail industry, consultants say.”

“The H&M store in Stockholm’s swanky residential Östermalm neighborhood hints at how data can help. The store used to focus on basics for men, women and children, with managers assuming that was what local customers wanted. But by analyzing purchases and returns in a more granular way, H&M found most of the store’s customers were women, and fashion-focused items like floral skirts in pastel colors for spring, along with higher-priced items, sold unexpectedly well.”

“With the help of about 200 data scientists, analysts and engineers—internal staff and external contractors—H&M also is using analytics to look back on purchasing patterns for every item in each of its stores. The data pool includes information collected from five billion visits last year to its stores and websites, along with what it buys or scrapes from external sources … The chain uses algorithms to take into account factors such as currency fluctuations and the cost of raw materials, to ensure goods are priced right when they arrive in stores.” Nils Vinge of H&M comments: “The algorithms work around the clock and adjust continuously to the customers’ ever-changing behavior and expectations.”

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Barber Shop Museum & ‘Comedy Club’

The New York Times: “Arthur Rubinoff, 43, opened the roll down gate on a storefront along Columbus Avenue in Manhattan … Inside the space was under construction but already Mr. Rubinoff’s signature décor — with all the subtlety of Versailles — could be seen in the six ornate chandeliers being hung on a small ceiling and the elaborate gilded trim along the edges … the museum, at Columbus Avenue, between 73rd and 74th Streets, will double as a shop.”

“Visitors can get a haircut and peruse displays of antique and vintage barber equipment, from chairs and striped poles to towel steamers and straight razors. In addition to the displays, the space will have sets of antique chairs and mirrors that will serve as functioning haircutting stations. Mr. Rubinoff said he plans to use one chair himself, for ‘my special clients,’ and to keep the others free for different guest barbers he will bring in every week or two.” He says: “I want to rotate them through, like a comedy club, to bring in fresh talent from California, Arizona — I have barbers from Moscow. These days, people want to try new hands, new energy.”

“In the museum space, he pointed out where he will put a souvenir counter selling barbershop-themed accessories like cuff links and tie clips of his own design. Speaking of his own design, Mr. Rubinoff pulled out a pair of diamond-encrusted gold scissors he had crafted. Gold scissors and combs will be used for the highest paying clients who opt for the $118 ’21st Century Cut, he said.” He adds: “We’re going to offer them Champagne and black caviar on a cracker. It’s all part of the business plan.”

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E-urope: Amazon Struggles With Apparel

The Wall Street Journal: “Amazon.com Inc. might look like it’s taking over the world. But it hasn’t conquered Europe. Two decades after the internet behemoth’s first international foray into the region, it’s still working to gain traction selling apparel and footwear. That weakness in a major, growing market illustrates Amazon’s challenge as it expands abroad and tries to replicate its U.S. dominance of e-commerce.”

“To explain Amazon’s struggles in conquering apparel in Europe, retail executives and analysts point to an absence of top fashion brands, a website they say isn’t conducive to browsing for clothes and a fragmented market full of plucky competitors.”

“They say Amazon is like a chaotic, online department store where there is little control over brand presentation. By contrast, Zalando, ASOS and other specialty apparel sites are like an upscale online mall where brands are given more control and presentation is sleek, retail executives say … Amazon’s philosophy is that a large customer base attracts brands, while executives at Zalando and other competitors try to attract brands that will bring customers, said Barbara E. Kahn, professor at the University of Pennsylvania’s Wharton School of Business.”

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Micromerch: Statements for Daily Life

The New York Times: Here comes micromerch:”personal merchandise for niche public figures and celebrities (or even not-yet celebrities) made possible by innovations in manufacturing and distribution, and with mechanisms greased by the ease of the internet. Consider it the modern-day equivalent of the private-press LP or the small-batch zine, amplified for social media and very late capitalism … small-batch merch — a couple dozen to a couple thousand items — can be made available for almost anyone, from emergent social media or reality TV demicelebrities to casual dadaists who toy with the dissemination of ideas in the modern marketplace. In an era when personal branding is presumed, no following is too small to monetize.”

“Want to show support for Sean Bryan, a.k.a. the Papal Ninja, an American Ninja Warrior contestant and lay minister? There’s a shirt (and laptop case) for that. Enthralled by the 1980s sunglasses worn by the rubber-legged teen social media star Roy Purdy in his absurdist dance videos? For a while, he sold them, too. Obsessed with Gordie, the French bulldog owned by Alex Tumay, who engineers Young Thug’s records? Buy a shirt.”

“Peloton, the home indoor cycling business, has a stable of a dozen instructors, and sells merch inspired by each. Jill Foley, Peloton’s director of boutique apparel, said the company has sold hundreds of T-shirts and tank tops with instructor catchphrases like ‘It’s Not That Deep’ (Cody Rigsby) and ‘Sweat Sing Repeat’ (Jenn Sherman).” She comments: “We’re getting messages to people in this micro way. We’re in people’s homes in their daily life.”

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Retail Politics: Is Fast Fashion Tone Deaf?

The New York Times: “Every once in a while, tucked into the stream of speedily made garments rushed into stores, designs with shockingly bad taste stand out: a shirt comparing women to dogs at Topman, symbols of the Holocaust on a top at Zara … Retail experts blame a heated competitive environment, where companies, many of them based in Europe, are spread thin trying to cater to a global customer base that is easily bored, is extremely demanding and can buy almost anything via e-commerce. Many brands develop a cavalier attitude: Churn out products now, ask forgiveness later.”

“Earlier this year, H&M, one of the largest clothing retailers in the world … was taken to task over a children’s hoodie emblazoned with the phrase ‘coolest monkey in the jungle’ and modeled in marketing materials by a young black boy. The description, which has been used to dehumanize black people, set off protests at South African stores that left mannequins toppled and racks overturned. In the aftermath, H&M chose a lawyer and company insider, Annie Wu, to lead a new four-person team at its Stockholm headquarters focused on global diversity and inclusiveness.” She comments: “We didn’t recognize that in this now new age of transparency, what the brand stands for is super important to people.”

“Fast fashion companies, which specialize in low-priced, quickly produced clothing and have grown faster than the apparel industry as a whole for years, are under pressure to be more prolific and provocative as they sell across more borders. H&M, which added 479 stores last year, now has more than 4,000 stores in dozens of countries … retail experts said that much of the creative process takes place in and around its European home office, far from many of its markets … Fast fashion has produced tone-deaf products for years, passing them off as a rounding error given the enormous volume of items the companies generate each year … Several companies have pledged to diversify hiring, retool corporate guidelines and initiate other measures to prevent mistakes from going out the door.”

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Boyd’s: Retail’s Past as Prologue?

The New York Times: “Like the Liberty Bell and the stone Rocky Steps, Boyds is a Philadelphia landmark, and one equally impervious to the shifting seasons. For 80 years, the family-owned business has outfitted lawyers, bankers, doctors, politicians and famous athletes … The store is where a young man goes to buy his wedding suit, and returns 30 years later, grayer, wealthier, thicker in the middle, this time bringing his son to buy his wedding suit … in this age of dressing down and click-and-buy, in an environment where the big chains have killed off the mom-and-pops and Amazon is killing off the chains, Boyds now feels like a shopping experience out of time … Out-of-towners who happen into this retail anachronism tend to react first with astonishment, followed by a sigh of pleasure.”

“It’s very possible that Boyds isn’t just one of a dying breed of old-fashioned retailers, however. Given its scale (50,000 square feet of selling space over four floors), and the level of service it provides, and the tailor shop and complimentary parking lot, and the near century of independent operation by the same family, it may be the only clothing store of its kind anywhere in the country … To understand how Boyds has avoided oblivion thus far, it’s instructive to spend an afternoon on the selling floors … The operation has a choreographed precision. Chris Phillips, the 43-year-old men’s tailored clothing manager, on this day stood near the elevator. It was his job to greet customers, determine their needs and spin them to the right salesperson.”

“Generally speaking, the men who come to Boyds aren’t there to browse. Overscheduled high earners, they view clothes shopping as one more task to be efficiently completed, an attitude to which every Boyds employee is attuned … Marc Brownstein, the president and chief executive of the Brownstein Group … dates his first Boyds shopping trip to high school, back in the ’80s, and now especially appreciates its delivery service to home or office, and the text messages he gets from the store when a brand is going on sale.” He comments: “The family just outthinks other retailers. They’ll deliver to your house, to your office. You park for free. You know what parking costs in the center of Philadelphia? They’re going to outwork and out-service everyone else.”

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