Buoyed by the promise of new stimulus spending and the release of pent-up demand, retail posted impressive sales growth of 9.2% in January, excluding auto, gasoline, travel and lodging, according to the latest figures from MasterCard SpendingPulse. Not surprisingly, ecommerce continued to skyrocket, gaining 62% vs. January 2019.
It seems nearly all workers in retail had their job roles expanded in 2020 as the pandemic forced thousands of stores to close even more rapidly as ecommerce exploded, creating demand in new areas as the industry drastically reset, a new survey found. Despite a difficult year, there was a good deal of optimism about 2021.
Holiday retail sales in retail were up higher than expected, according to the National Retail Federation, exceeding expectations by increasing 8.3% to $789.4 billion, as shoppers seeking normalcy used what was left of stimulus funds and unused travel and leisure to purchase holiday gifts. Online and non-store sales were up a brisk 23%.
Loves Furniture, a Michigan startup that went into business in 2020 just as the pandemic was emerging, has filed for bankruptcy protection as bills piled up and inventory, fulfillment and logistics issues hamstrung its operations. The company claims that fulfillment issues caused by Penske, its contract logistics provider, led to the troubles.
Walmart and Target didn’t hesitate in responding to Amazon’s announcement of Prime Day on Oct. 13 and 14, an unusual occurrence in an extraordinary year, by rolling out their own deals and offers to try to steal some of the unusually early holiday thunder from the ecommerce leader.
In a familiar theme for omnichannel retailers who have gotten ahead of the curve in digital transformation, Macy’s reported store sales down 61% in the second quarter, while ecommerce increased 53%. Still brick-and-mortar news was not all bad, as stores reopened stronger than expected and luxury goods outpaced projections.
It was another eventful week in the ongoing saga of retail bankruptcies. Tailored Brands, parent of Jos. A. Bank and Men’s Wearhouse, plans to put a greater emphasis on casual apparel as part of its Chapter 11 filing, while the investment group REV is planning to snatch up assets from both Pier 1 and Modell’s out of bankruptcy court.
A partnership between mall giant Simon Property Group and apparel licensing firm Authentic Brands has made a $305 million bid to acquire the assets and intellectual property of Brooks Brothers out of bankruptcy court, according to various media reports. The partnership, named Sparc LLC, plans to keep at least 125 stores open.
Ascena Retail Group, parent of iconic women’s apparel brands Lane Bryant and Ann Taylor, has filed for chapter 11 bankruptcy protection and announced plans to shutter 1,600 of the 2,800 stores across its various chains in an effort to reduce its massive debt by $1 billion. The news comes weeks after an executive bonus windfall.
RTW Retailwinds, parent of apparel retailer New York & Co., filed for bankruptcy protection, adding it plans to close most if not all of its nearly 400 stores and seek a buyer for its ecommerce business. The company plans to continue operations, including re-openings where appropriate, paying vendors and suppliers and employees.