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Archive for August 8th, 2023

After Reporting a Strong Fiscal Year, L.L. Bean Is Focused on Opening Stores and Key Retailers

An exterior view of the L.L.Bean store in Salem, N.H.
An exterior view of the L.L.Bean store in Salem, N.H.
COURTESY OF L.L.BEAN

After closing its 2022 fiscal year in March with net revenue of $1.8 billion — the company’s second-strongest revenue performance in history — L.L.Bean is focused on its omnichannel growth strategy.

This effort, L.L. Bean said in a statement, will have its products in more than 70 new storefronts, in addition to e-commerce platforms.

“Our omnichannel growth strategy continues to be an effective framework for our business, ensuring we’re able to meet customers where they are through a unique mix of channels and locations,” L.L.Bean president and CEO Stephen Smith said in a statement. “We’re grateful to be in a position to expand our retail presence and build new wholesale relationships in order to serve more customers. Everything we do is in support of our company purpose to enable people to experience the restorative power of being outside, and these new ventures will ensure we’re able to fulfill that purpose for years to come.”

L.L. Bean announced in a statement that it is set to debut four stores in North America, including two in Canada and two in the U.S. The Canada doors will be in Quebec, located in the greater Montreal region — Saint-Bruno-de-Montarville opening Aug. 25 and Boisbriand opening Sept. 29. These mark the brand’s first retail stores in Quebec. What’s more, L.L. Bean confirmed it will launch a French-language e-commerce site to coincide with the store openings.

After closing its 2022 fiscal year in March with net revenue of $1.8 billion — the company’s second-strongest revenue performance in history — L.L.Bean is focused on its omnichannel growth strategy.

This effort, L.L. Bean said in a statement, will have its products in more than 70 new storefronts, in addition to e-commerce platforms.

“Our omnichannel growth strategy continues to be an effective framework for our business, ensuring we’re able to meet customers where they are through a unique mix of channels and locations,” L.L.Bean president and CEO Stephen Smith said in a statement. “We’re grateful to be in a position to expand our retail presence and build new wholesale relationships in order to serve more customers. Everything we do is in support of our company purpose to enable people to experience the restorative power of being outside, and these new ventures will ensure we’re able to fulfill that purpose for years to come.”

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L.L. Bean announced in a statement that it is set to debut four stores in North America, including two in Canada and two in the U.S. The Canada doors will be in Quebec, located in the greater Montreal region — Saint-Bruno-de-Montarville opening Aug. 25 and Boisbriand opening Sept. 29. These mark the brand’s first retail stores in Quebec. What’s more, L.L. Bean confirmed it will launch a French-language e-commerce site to coincide with the store openings.

L.L. Bran’s stores in the U.S. will both be located in Massachusetts. Hanover will debut first, opening Sept. 8, followed by Peabody on Oct. 6.

At the moment, L.L. Bean has 56 stores in the U.S, another 25 stores in Japan and has 13 licensed retail store locations in Canada that are operated by Jaytex Group.

Aside from brick-and-mortar expansion, L.L. Bean confirmed it will add two key wholesale accounts to its U.S. roster: Dillard’s and Moosejaw. Also, the company will add 10 independent specialty retailers in the southeastern U.S.

“As a 110-year-old company, we have taken great care in ensuring we deliver exemplary customer service to everyone who visits an L.L. Bean store, shops with us online, orders through our famed catalog, or via any other touchpoint,” L.L. Bean chief retail officer Greg Elder said in a statement. “We are honored to be in a period of growth as a company, and that is a credit to our customers, employees and partners. We look forward to continuing to deliver industry-leading customer service and offer everyone who shops with us the goods they need for life, home, and any adventure that awaits.”

2023
08/08
CATEGORY
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L.L. BEAN
MOOSEJAW
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Superdry Secures New Financing as It Continues Turnaround Plan

SuperDry, store, NYC
Outside a SuperDry store in New York City.

Superdry has secured new financing as it hopes to continue to improve its business.

On Monday, the U.K.-based retail chain said in a regulatory filing that it had obtained a secondary lending facility of up to 25 million British pounds ($32 million, based on current exchange) with Hilco Capital Ltd., a subsidiary of the U.S.-based group Hilco Global.

In the filing, Superdry said that the new funds will improve its liquidity and will help accelerate the implementation of its turnaround plan and cost-reduction program.

The company added that the facility with Hilco is for a 12-month term with the option to extend and is at an interest rate of 10.5 percent plus the Bank of England base rate on the drawn element.

The agreement follows multiple initiatives from the retailer to strengthen its balance sheet.

In December, the company inked an 80 million pound ($102 million) asset-backed lending facility with Bantry Bay Capital Ltd. This facility replaced the existing 70 million pound ($89 million) asset-based lending facility obtained in 2020, which was due to expire at the end of January 2023.

In March, the company went a step further, agreeing to sell its intellectual property assets in certain countries within the Asia Pacific (APAC) region for $50 million. Shortly after this move, Superdry issued a trading update on its fiscal 2023 outlook in April, which included the announcement of its turnaround plan.

In the plan, the company said it had identified initial cost savings of over 35 million pounds ($45 million). These will be achieved through estate optimization, logistics and distribution savings, better procurement and continued range reduction, Superdry noted in the plan.

The company expects these savings to be fully realized by the end of fiscal 2024, with the costs to achieve them primarily incurred in calendar year 2023.

“The Superdry brand continues to evolve, but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and are working to address in wholesale,” founder and CEO Julian Dunkerton said in a statement in April. “As a result, while we continue to deliver like-for-like growth in retail sales, we need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base.”

In May, Superdry completed a 12 million pound ($15 million) equity raise to help fund its turnaround plan. As part of the raise, 11.1 million ($14.2 million) came through the sale of 15.7 million new shares, equating to 19.1 percent of the company’s equity.

In its most recent guidance, Superdry expects fiscal 2023 revenue to be in the range of 615 million pounds ($786 million) to 635 million pounds ($812 million), up from 609 million pounds ($779 million) last year.

2023
08/08
CATEGORY
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Zappos Is Employing Nostalgia to Win Over Consumers This Back-to-School Season

 

This back-to-school season, Zappos is kicking it old-school.

The online shoe retailer has rolled out a ’90s-style catalog to advertise its kids’ and teen merchandise. The catalog, which was sent out in mid-July to about 700,000 customers who typically purchase shoes for kids, includes product images, games and a shoe sizer.

The catalog is designed to pull on the heartstrings of parents who likely remember growing up in a simpler time before e-commerce reigned supreme, when shopping from catalogs was the norm and an exciting part of the back-to-school experience.

“This is kind of our ode to that nostalgia,” explained Zappos’ chief merchandising and marketing officer Joe Cano in an interview with FN. “We want to make sure that as these elder millennial parents are having their kids go to school, they actually have some fun and have something that they can share with their kids and can create that moment versus being stuck to the screen the entire time.”

Zappos rolled out its first back-to-school catalog in 2019, but put it on pause throughout the pandemic. Now, the shoe retailer has brought back its successful initiative and has already seen a bump in traffic, according to early reads from the company.

zappos catalog
Zappos’ catalog includes an assortment of adaptive footwear products.ZAPPOS

In line with Zappos’ commitment to the adaptive category, the catalog also includes adaptive products from brands such as Billy Footwear.

“Adaptive will always be at the core of Zappos,” Cano said. “We want to make sure that someone can find the most amazing pair of shoes on our site, no matter what age or stage they’re at.”

The shoe retailer has utilized nostalgia for other campaigns in the past as well. For its 20th anniversary in 2019, Zappos turned its website back to what it looked like when it launched in 1999 for one day. And next year, Zappos plans to launch a similar series of nostalgia-focused campaigns for its 25th anniversary and is currently in talks with vendors to highlight and bring back shoes that were popular in the 1990s.

“Some of this nostalgia, as you’re seeing across the board, I think it’s resonating not only with parents, but with kids,” Cano said. “If you look at the current trends right now, they’re very much coming back to that ’90s nostalgia, which plays in perfectly with what this catalog represents.”

Other brands have also seen recent success with throwback campaigns. McDonald’s saw a surge in engagement when it offered a Grimace Birthday Meal special in honor of the purple mascot’s 52nd anniversary. Among footwear brands, consumers are increasingly opting for ‘90’s retro styles like the Adidas Samba.

For Zappos, the key is balancing this nostalgia factor with modern elements for shopping ease. For example, the catalogs include QR codes for people to be able to quickly make their way to the Zappos website.

“I want to make it fun and nostalgic, but I don’t want us to try to reinvent what ordering was back in 1999,” Cano said. “I want to make it very seamless.”

The catalog campaign is a part of Zappos’ continued push in the kids category, which involves a broader emphasis on the growing back-to-school business.

“Back-to-school is becoming a bigger and bigger portion for us,” Cano said. “For us, we want to make this a bigger portion of our business as we go forward.”

2023
08/08
CATEGORY
BUSINESS
TAGS
back
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employing
nostalgia
over
school
season
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zappos
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