Tariff Delay Leaves Retailers Relieved and Marshalls Turns to E-Commerce
TARIFF DELAYS = GOOD NEWS FOR NOW
Retailers applaud the recent Trump administration's decision to delay a tariff increase on Chinese goods. Originally set to go into effect this week, the delay holds off 25 percent of tariffs being applied to food and consumer products.
In a series of posts on Twitter, Trump cited "substantial progress" in communications between the U.S. and China. As a result, the president said he would suspend the new levies, but didn't announce a new deadline.
In a White House press release, Trump said there could be "very big news over the next week or two" if trade talks go well.
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GAP SPLITS FROM OLD NAVY Gap Inc. will separate Old Navy into its own company and create a new entity to house the remaining brands in its portfolio, including Gap and Banana Republic. The move will better position the company to “leverage the power of our brands,” CEO Art Peck said. “The remaining specialty fleet will serve as a more appropriate foundation for future growth of the brand across the specialty, outlet, and online channels,” the company says. Read More |
THIS WEEK'S SHUTTERINGS This week two retailers have announced the shuttering of over 20 stores. In a fourth-quarter earnings commentary, Victoria's Secret announced that it would be closing as many as 53 stores this year, citing a "decline in performance, " and with that, a 3% decline in North America square footage. After revealing a 4% decline in same-store sales, J.C. Penney plans to close 27 stores this year, including 18 full-line department stores and nine home and furniture stores. Read More |
MARSHALLS GOES ONLINE
Retail's off-price sweetheart is tired of being left out of the e-commerce chatter. Marshalls, owned by TJX, enjoys its reputation for being a treasure hunt consumer experience but wants to replicate this online.
While the company's digital store provides a store locator, gift cards, photos, and other features, it has yet to offer merchandise for sale. It's still a debate as to whether or not the TJX chains need eCommerce, as both Marshalls and T.J. Maxx have maintained their popularity amongst shoppers through the thrill of finding unbeatable steals inside their stores.
REWARDS ARE IMPORTANT
Gen Z and young millennials are much more sensitive to price and hold lower brand loyalty than previous generations, according to a new study released Tuesday by Swift Prepaid Solutions, a payments solutions provider. 83% said value-added rewards and surprises inspire greater loyalty and 82% said when earned rewards come paired with a special offer, it can encourage them to spend the reward.
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THIS WEEK'S BRIGHT SPOT
Last week we talked about ThirdLove honing in on Victoria's Secret's biggest weakness, size inclusivity, and further proof that they're on the right path? The online lingerie brand has raised $55 million in its latest funding round. On ThirdLove.com, shoppers can fill out a Fit Finder quiz to find their perfect bra size. More than 12 million shoppers have used the Fit Finder since its launch, finding a bra match among the 78 bra sizes ThirdLove offers.
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