James Romero

🚀 Big News Alert: Saks Buys Neiman Marcus with a Boost from Amazon! 🚀 Hey everyone! Just had to share this HUGE update in the luxury retail world. Saks Fifth Avenue’s parent company is dropping $2.65 billion to scoop up Neiman Marcus, and guess what? Amazon’s in on the action, bringing their tech and logistics game. 🛍️✨ Here’s the Tea: • Power Move: Merging two luxury legends to create a mega retail powerhouse. • Tech Boost: With Amazon on board, expect next-level tech integration for a seamless shopping experience, both online and offline. • Big Bucks: Financed by top-tier investors like Rhône Capital and the Abu Dhabi Investment Council, plus $1.15 billion in debt from Apollo Global Management. • Market Shakeup: The new combo will hit around $10 billion in annual sales, giving them major leverage with suppliers and streamlining costs. Why It’s a Big Deal: This merger shows how vital tech and partnerships are in today’s retail scene. It’s proof that luxury retail is evolving and adapting, even when times are tough. For investors, this move is a clear sign of confidence in the luxury sector’s future and the potential for new opportunities. Big things are coming, and I am excited to be part of this evolving industry. Stay tuned for more updates as we keep pushing the boundaries in luxury retail!

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Private label footwear is an interesting discussion. I was surprised to hear REI getting out of making their own footwear. It looked good and I think offered a well-branded, unique approach offering some good value and performance (Vibram outsoles, etc.). There seemed to be an authentic story and reason to exist. Often private label is synonymous with cheap. Footwear in particular can be hard to execute well when it's at a very competitive price point, often with a large SKU offering and has the realities of tooling costs and technical development. Most commonly private label footwear is pawned off to a trading company to stick a logo on "knock-off" designs with open tooling produced at a questionable quality and performance standard. But I think private labels can compete. My first experience in footwear was with Power Footwear, possibly the largest global private label - a "house brand" of Bata Group. It showed me it is possible to craft real performance with value in mind and we did so with design as a strength. Original tooling, original technology, original design. Decathlon is also doing it really well. Some of the latest KIPRUN products I think can go head to head with Nike, Adidas, etc. Amazing design and cutting edge performance and sponsored top athletes. They have turned in-house resources and brands into a showcase for products that bring consumers into the stores. The whole point of private label in the first place. What do you think? Can private label footwear exist in today's retail landscape where a brand is more than product and needs to be supported by marketing, social, and the full experience? Do consumers want private labels? Do they know/care they aren't "real" brands? --- I’m the owner of The Directive Collective footwear design consultancy. We make great footwear, not just great sketches. #design #footwear #footweardesign

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Selling on Amazon is a big question for many emerging outdoor brands. Some of the brands I work with have no Amazon presence, while others do a majority of their business on Amazon. Many major outdoor brands are on Amazon, though there are plenty of exceptions like Patagonia, BIRKENSTOCK, KÜHL Clothing Company, etc. So what's the right strategy? First of all, I would only ever recommend selling exclusively via your own storefront on Amazon, so you control how your brand and products are presented and priced. Never sell directly to Amazon or allow your wholesale partners to sell on Amazon; otherwise, you lose all price control and it becomes a race to the bottom. PROS of Selling on Amazon: 1.  Amazon accounts for ~40% of ecommerce sales, so it can be a huge volume channel. 2.  CACs are typically lower than Meta or Google (though not the deal they once were). 3.  Payment processing costs are included in the marketplace commission (typically 15%). CONS of Selling on Amazon: 1.  Success typically requires running sponsored listings, adding cost and complexity. 2.  Winning "the buy box" may require using FBA (Fulfilled by Amazon), also adding cost and complexity. 3.  You don't own the customer, so you can't remarket to them (though there are tactics to flip them). 4.  Amazon will bid against you on Google (Search/PLA), likely driving up your ad costs. 5.  Returns rates are typically much higher than on your DTC site. 6.  Competitors, fraudsters and knock-off companies can use services like  Jungle Scout to find your sales winners to exploit. 7.  Smaller retailers may be less likely to pick-up your brand if it's on Amazon. So that's seven cons to three pros... the cons have it, right? Unfortunately, it's not that easy because that first pro is pretty huge. My advice to brands is do your homework and use tools like Jungle Scout to assess the competition and the opportunity. Then try to throw out preconceptions and carefully weigh the pros and cons to determine the right course for YOUR brand. What are your Amazon experiences? #OutdoorIndustry #StartUps

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Nike has some amazing talent in product Innovation, so it begs the question- why have the rest of the Nike biz not been able to commercialize the newness or not even been able to consider to take it on as viable marketable products? I am sure the innovation team was not pushing over saturation of AF1’s as the sole product strategy! Firing people off the innovation team is the last place budget savings should be captured- and it is not the fact that creators have worked at home that has pinched new product flow- as pretty sure all the market growth brands nibbling at the Gorilla worked the same way and many still do!! Nike’s top senior management have been questioned for a decade over numerous issues- female rights/diversity issues/lack of innovative ideas/ongoing legal claims by athletes over AS abuse/ closing out pregnant athletes SO leaving them in charge to decimate the true talent in the Org, to try and make financial statements look better- is a crucial mistake! Plus tooling up other brands talent pools with wide product team cuts will certainly hamper the brand in the market share fight !! Thanks for posting Matt #creativetalent #time4change #nike #technicalfootwear @DougS888

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This story might sound familiar, but it's worth retelling again. And again. Marketing to customers directly can be expensive and unpredictable. Kizik Footwear's Monte Deere says, "Gross margin is really, really great at e-commerce. What's unpredictable is the marketing expense to sell your product." So why are so many brands stuck on rigid single-channel commercial strategies when they could reap the benefits of both worlds? Having a greater presence at wholesale, through select retail partnerships, gets the brand in front of new customers at a relatively lower cost of acquisition, making the cost of selling more predictable and freeing up marketing dollars that can be funneled away from performance marketing and into building brand awareness. Read more about Kizik's gradual expansion into wholesale brick-and-mortar at the link below. #footwear #omnichannel #dtc #wholesale #fashion #retail #salesstrategy #linkedinpostsbymariopace

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#HotTake: Retail stores aren’t a shortcut to success. Retail offers bigger POs, visibility, and cash flow Yet, it doesn’t ensure brand sustainability Case in point: JLo Beauty Despite celeb status and prime placement at Sephora, She faced challenges resulting in a US exit Retail alone doesn’t secure loyalty or repeat sales Placement isn’t guaranteed forever For lasting success, think beyond the retail PO Some markers of a sustainable brand include: Authenticity, community, differentiated formulas, and true fans Building a lasting brand legacy requires more than a retail presence – 👋🏾 Hi, I’m Monique, a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale at big retail. If you are ready to scale and invest, book a discovery call, and let’s see if we can work together.

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For brands looking to launch in mass retail, it’s worth considering some of the operational infrastructure that’ll get you there. That way, when you hire a sales team (either in house or fractional like Middlebox) they can focus on sales instead of ops. I’m not an expert on this stuff, but if you’re a brand doing $5m+ annually here’s a list: - Read about EDI: the process by which all mass retailers submit orders and expect invoices/ASN’s - Talk to SPS Commerce: the best vendor to manually process EDI orders - Look into an ERP solution: eventually you’ll want to migrate to a cloud solution like NetSuite, Cin7, instead of planning and processing everything manually. - Long term, deploy a solution like Tableau or Looker to help chop and understand your sales data. If you know retail ops systems like the back of your hand (or know someone who does), please lmk or tag them. I have several clients who could use your help. 👩‍💻👨‍🔧📟📠🖥️💾 #retail #retailoperations #cpg #fmcg #edi #erp

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Consumer insight and data is crucial for all of us as it helps us understand which brands mean the most (or least) to the consumer and how your brand stacks up with the competition. Anyone who is curious about which athletic, outdoor, casual and dress footwear brands are resonating with the consumer, read on...

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Looking for some visual merchandising tips? Here are some thoughts on the virtues of mass merchandising from the Specialty Shop Retailing blog. #independentretailers #shoplocal #visualmerchandising #retailing #smallbusiness

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Good article on Puma outlined by Ken Pucker on how they were able to decouple increased growth from lowering emissions. Impressive data that since 2017, Puma has doubled revenues to $9.3 billion, while cutting carbon emissions by 30%. On a per unit basis, that is a 66% reduction. At my last company, I created a model to show that the consolidation of markets, with a calendar adjustment could reduce emissions by 18% allowing a reduction in carbon emissions and creating a savings from air to sea freight alone. This is one of the highest impact adjustments companies can make to really lower emissions.

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"...The other good news is that there will always be a market for new, innovative and high performance product. Just look at the continued success of On, Arc'teryx and Vuori or the emergence of newer brands like Wild Rye, Gnara and LIVSN." This synopsis on the saga that has been the outdoor industry since I entered it, which recognizes that what we are doing at Gnara with our GoFly Technology is both important and working (from a PE-backed retail CEO with successful exits to Walmart and Dicks Sporting Goods, who also happens to be a personal mentor I look up to in this industry, no less) means a lot. #femalefounder #outdoorindustry #patentedtechnology #inclusivedesign #innovation #entrepreneurship #startup

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When will outdoor brands understand that their DTC business needs to be BETTER than the retailers to win customers? I ordered a new pair of running shoes from an outdoor brand’s DTC site on Sunday 5/5. When I hadn’t seen a shipping confirmation by the morning of Wednesday 5/8, I logged into the site to check the status. All it said was “PENDING”. Hmmm, so I took them up on their offer to “Chat with an Expert”… only to be connected to a Chat Bot [sigh]. It happily informed me, “Great news! I found your order that was placed on 05-05-2024. It is still getting ready for your outdoor adventure and should ship on 05-10-2024.” Five business days to get an order out? What decade are these people operating in? If I’d ordered on Amazon, I’d already be on run #2 (ok, walk #2). The challenge with many brands moving to DTC is that the advantages were all inwardly focused: We can own the customer! We can tell more complete brand stories! We can retain much more of the margin! What most of the brands missed is, “what’s in it for the CUSTOMER?” We’re asking them to give up their retail relationship, loyalty programs, in-store experience, rapid shipping, … for what, exactly? Of course, many brands have found out that the DTC channel is not the nirvana that they anticipated, so they’ve come crawling back to those same “retail partners” that they spurned as an unnecessary expense in their value chain. Brands are going to need retailers until they come up with a model that’s better for the customer.

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JVBswim is making waves! Our latest feature on The Interline takes you on a journey through JVBswim's commitment to redefining industry standards - integrating traditional practices and innovative methods to produce high-quality, eco-friendly products. Delve into the full article to understand our unwavering commitment to ethical practices and sustainability!

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Kohl’s Corp. has partnered with Instacart to offer same-day delivery from all of its 1,172 U.S. stores. Customers can now receive Kohl’s merchandise in as little as an hour through Instacart, with pricing matching in-store prices and the ability to accumulate Kohl’s Rewards. Kohl’s is categorized as an Apparel & Accessories retailer by Digital Commerce 360 and offers a variety of products, including home decor, skin care, and pet items, all available through Instacart. Kohl’s is No. 23 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers Kohl’s Corp. reported net sales declined in both its fourth quarter and fiscal 2023 ended Feb. 3, 2024. Q4 net sales declined 1.1% to $5.7 billion, despite an extra week of trading this year compared to Q4 2022. Kohl’s saw growth in net income. Online sales declined 10% in the quarter but improved as the quarter progressed, with December and January sales only down "mid-single digits" year over year. Instacart's partnership with Kohl’s is part of a series of agreements with retailers, including Hy-Vee and Associated Wholesale Grocers, Inc. (AWG), to offer same-day delivery and expand delivery capacity. Additionally, Instacart announced a partnership with Uber to deliver Uber Eats orders to Instacart customers. #kohl's #instacart #samedaydelivery

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Fashion Resale, Circularity & Government's onus is on the rise. Do you see it👇 Consider the Resale Market Size Figures - Global Market Value: Estimated at $197 billion in 2023. - Projected Growth: Expected to reach $350 billion by 2028. - Annual Growth Rate: CAGR of 12% from 2023 to 2028. Key Geographies North America - Market Size: Significant growth, with the U.S. market projected to reach $73 billion by 2028. - Drivers: Strong consumer demand for sustainable fashion and affordability. Europe - Market Size: Rapid growth driven by eco-conscious consumers. - Drivers: High awareness of environmental impact and preference for circular fashion. Asia - Market Size: Emerging as a key market with increasing adoption of resale fashion. - Amongst other Asian economies India stands a bit apart. - India with a young median age of 32, rising income levels, and a hyperconnected population builds aspirations, dreams, and the purchase quotient for resale as well as a good case for circularity. - Drivers: Growing middle class and digital adoption. South America - Market Size: Increasing interest in resale fashion. - Drivers: Economic factors and rising sustainability awareness. Reasons for the Rise Sustainability - Environmental Impact: Reducing waste and extending the lifecycle of fashion items. - Consumer Awareness: Growing concern for the planet among younger generations. Affordability - Cost Savings: Access to high-end brands at lower prices. - Economic Factors: Consumers seek value for money during economic uncertainty. Digital Platforms - Convenience: Online platforms like The RealReal, Vestiaire Collective, and ThredUp making resale accessible. - Technology: AI and AR enhancing the shopping experience. Changing Consumer Behavior - Conscious Consumerism: Preference for ethical and sustainable purchases. - Gen Z and Millennials: Leading the shift towards secondhand fashion. Brand Collaborations - Luxury Brands: Gucci, Burberry, and Stella McCartney partnering with resale platforms. - Fast Fashion Brands: H&M launching Sellpy and COS introducing "Resell." Government Regulations - Supportive Policies: EU's Corporate Sustainability Due Diligence Directive. - Incentives: Encouraging circular economy practices. The Carousel is a deep dive and covers the following topics: 1. The Rise of the Resale Fashion Market 2. Key Drivers 3. Luxury Brands Embracing Resale 4. E-commerce Platforms Leading the Way 5. Fast Fashion Brands Exploring Resale 6. Benefits for Brands 7. Challenges in the Resale Market 8. Consumer Behavior Trends 9. Technology's Role in Resale 10. The Future of Resale Fashion 11. Impact on Traditional Retail 12. Sustainability Implications The next 5 years are a prep to get into the mode of an organizational sustainable mindset and the actual change across the value chain, brands, consumers, and retail will come after. Would you agree? #management #luxury #fashion

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According to GlobalData, the U.S. secondhand apparel market grew 11%, or seven times faster than the broader retail apparel market, to $43 billion last year. The report estimates that resale sales online and at traditional thrift stores could reach $73 billion by 2028. #resale #retail #apparel #retailsales

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🧟‍♀️ It struck me that Modern Retail’s recent article on DTC Zombies references two brands (Feat and Outdoor Voices) situated within the athleisure apparel space. Just as retailers anticipated a permanent shift from in-store shopping to e-commerce after the pandemic it was expected everyone would continue wearing athleisure at the same frequency after lockdowns. 📈 Projecting market demand for athleisure is challenging because it sits in the in-between spaces. Athleisure blurs traditional clothing lines, raising questions: Are hoodies and sweatpants athleisure? What about t-shirts? Is loungewear indoor athleisure or a separate category? Is “Bad Sandy” wearing a leather jacket and leggings at the end of “Grease” athleisure? The definition is fluid, influenced more by styling and usage than by distinct categories. 👗 While many women still wear yoga pants beyond the mat, there’s also a resurgence in tailored bottoms, exemplified by Aritzia’s wide-leg trousers. Dresses and skirts have made a comeback with a return to more careerwear and occasion dressing. Women consumers are embracing a post-pandemic wardrobe era with more distinctive outfitting propositions than 4 years ago. 🧘🏻‍♀️Of the upstart DTC brands described as athleisure in recent years, only Alo Yoga is the major competitive threat to Lulu’s women’s business. Not even Nike or adidas have been able to pull that off with apparel, though they have tried. Alo is smaller in volume than Lulu, but growing 30% YoY with a higher proportion of women’s consumers. Gap Inc. has also successfully evolved Athleta from a catalog business (old-school DTC) into a growing omnichannel concept that exclusively serves women and girls. 🏃🏾‍♀️Lululemon may have popularized leggings as casual wear, but it remains rooted in its athletic heritage, evident in its partnerships with Team Canada at the Olympics. Alo Yoga and Athleta’s very names indicate that activewear is the core of their brand. The latter has even attracted high-profile former Nike athletes Allyson Felix and Simone Biles as brand partners. 🎽 While at first glance DTC athleisure may be seen as a fading opportunity, Lulu Lemon, Alo Yoga, and Athleta are all DTC brands leading in the space. This would suggest that winning in DTC athleisure is less about positioning a brand in the in-between spaces but rather winning with women’s performance apparel. #merchandising #sportswear #athleisure #trends #DTC #fashion

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