Payless Does Chapter 22 and Farewell to Mr. Lagerfeld
Payless ShoeSource has filed for bankruptcy protection as the shoe retailer prepares to close down its 2,500 U.S. stores. In hopes of keeping a few stores open, the company sought a domestic real estate buyer, but no deals were ever struck.
"The challenges facing retailers today are well documented, and unfortunately Payless emerged from its prior reorganization ill-equipped to survive in today's retail environment," chief restructuring officer Stephen Marotta said in a statement.
The liquidation will not impact its franchised nor its Latin American stores. Nevertheless, all U.S stores are expected to remain open until at least the end of March, and potentially until May.
KARL LAGERFELD'S INIMITABLE LEGACY
As designer at Chanel for 35 years and Fendi for almost six decades, and creator of his eponymous line, Karl Lagerfeld passed this week at 85 years old. In remembering him, we must acknowledge his love only for the present, as he would revel in day-to-day moments. His fashion legacy will certainly go down in the history books.Read More
Amazon may be an e-commerce mammoth, but Walmart is right on its heels. After surpassing Wall Street estimates for earnings and revenue, the big box retailer's shares gained as much as 4 percent this week in comparison to Amazon's 14 percent drop. Walmart's online sales also grew 43 percent during the all-important holiday quarter.Read More
IS FAST FASHION ON A FAST DECLINE?
For $49.95 a month, customers at American Eagle can rent up to three items at a time and have an unlimited number of exchanges.
Analysts advocate the success of rental marketing and the opportunity to reconcile major conflicts in the younger generation's shopping habits. While Gen Z and Millennials crave newness, they are also more conscious about sustainable living and preserving the environment.
American Eagle covers round-trip shipping costs, and dry cleaning is free. If customers decide they like a piece, they are able to purchase it at a 25% or more discount. The rental model may allow consumers to stay updated with trends without purchasing clothes from fast-fashion retailers. So could this be the start of a decline in fast-fashion popularity?
VICTORIA SECRET'S WEAKNESS
ThirdLove is homing in on Victoria's Secret's biggest weakness: size inclusivity. The online lingerie brand rolled out eight new sizes and expanded its assortment of existing styles. While Victoria Secret has a collection ranging from 30AA to 40DDD, ThirdLove offers sizing between AA to I, a total of 78 sizes!
THIS WEEK'S BRIGHT SPOT
Serena Williams is joining the board of directors for the online resale marketplace Poshmark. Off the courts, she has also served on the board of SurveyMonkey, where she joined two years ago. Williams has said she's learned more about Silicon Valley since meeting her husband Alexis Ohanian. Congrats!