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Jivaro News

  • 20.11.2017

    As Athleisure Cools, Denim Heats Up

    LONDON, United Kingdom — It began at Paris Fashion Week two years ago, when Vetements sent its Autumn/Winter 2015 collection down the catwalk, full of its instantly familiar oversized silhouettes: grunge ditzy-print dresses, bulky bikers and bombers, thigh-high leather rodeo boots and those re-worked vintage Levi’s, now the brand’s signature jean. Net-a-Porter’s global buying director Elizabeth von der Goltz pi...Read More

    LONDON, United Kingdom — It began at Paris Fashion Week two years ago, when Vetements sent its Autumn/Winter 2015 collection down the catwalk, full of its instantly familiar oversized silhouettes: grunge ditzy-print dresses, bulky bikers and bombers, thigh-high leather rodeo boots and those re-worked vintage Levi’s, now the brand’s signature jean.

    Net-a-Porter’s global buying director Elizabeth von der Goltz pinpoints that as the moment when denim, which was on the outs for so many years, really became “cool” again. “Demna re-worked vintage rigid Levi’s in an almost couture way — everyone was vying for them,” she says. According to Von der Goltz, the £1,020 ($1,340) jeans “sold out immediately” on the luxury shopping site, and continue to do so season after season.

    Certainly, the denim market has been enjoying a long-awaited rebound. Sales in the $13.5 billion US women’s and men’s jeans market grew 4 percent in 2016, according to market research company the NPD Group — the category's best performance in years. Globally, following three years of declines, the jeans market, valued at $92.9 billion, is also expected to grow this year, with men's and women's categories forecast to rise this by 4.2 percent and 3.7 percent respectively, according to Euromonitor.

    And as the athleisure trend begins to cool — presenting challenges for gym-to-street brands like Lululemon, Sweaty Betty and others — it would seem denim is clawing sales away from the sportswear category. According to data from retail technology company Edited, the first half of 2017 saw the women’s jeans market grow by 79 percent compared to the first half of 2016. Athleisure leggings, by comparison, grew just 35 percent. “It’s not that athleisure is going away,” says Dio Kurazawa, denim director at WGSN. “It just means that folks are choosing not to have six different pairs of Lululemon tights and they’re opting to settle back into their denim.”

    “Millennials are driving the changes,” he notes.

    High-fashion brands such as Calvin Klein, Y/Project, Off-White, Balenciaga and, of course, Vetements, have helped along denim’s comeback, says Kurazawa, by catering to Millennial tastes, offering customisation and a move away from the typical five pocket. “These brands really started the denim revolution and a new trend for rigid and vintage denim," Von Der Goltz adds.

    Denim stalwart Levi’s is in a prime position to capitalise on consumer demand for vintage styles, given its 164-year heritage, recent collaborations with hot labels including Off-White, Gosha Rubchinskiy and Supreme, and a licensing agreement with luxury label Re/Done, which “up-cycles” vintage Levi’s denim, revamping old designs appeal to a younger generation. “We’re seeing a huge revival in ’90s-style fashion and ‘near-now nostalgia’ sentiment,” confirms Karyn Hillman, chief product officer at Levi’s, who points to the popular high-rise Wedgie model — inspired by the vintage 505, but updated with a little more stretch — as an example. “I think collaborations have really added some sort of equity to the brand,” adds chief marketing officer Jen Sey.

    In response to the success of re-worked styles, the heritage denim label is ramping up investment in customisation services. This includes expanding in-store “tailor shops,” where shoppers can customise purchases. (Currently, tailor shops are in 100 percent of Levi's UK doors with a heavy presence across Europe; the brand is now looking to recreate this success in the US.) Beyond stores, it has also installed customisation pop-ups at key music festivals, from Glastonbury to Coachella. Sey says the activation “brings value to the consumer,” who, more often than not, is already wearing a pair of Levi’s.

    This month, the company launched Levi’s Authorized Vintage, a collection of 50,000 pairs of dead-stock denim it bought back from the secondary market. “Levi’s has had the number one share of the vintage market forever,” Sey says. “We just haven’t actively participated in it [before], so we think it’s high time that we did.”

    Other denim brands are also capitalising on the demand for an authentic, vintage-style product. Frame, for example, launched a limited Rigid Re-Release collection that catered to the nostalgia aesthetic in February. While the limited-edition range will not continue into Spring/Summer 2018 due to limited availability, stiff fabrics will still be a key focus for next season’s denim collection.

    American brands Lee and Wrangler — both of which come under the umbrella of US apparel company VF Corp. — are also banking on reissues and archive-inspired designs to capture a younger consumer’s attention. “One of the latest capsules that we’ve done with Lee is we’ve gone into the archive to reproduce a retail product from 70, 80 years ago,” explains VF Corp’s jeanswear president Massimo Ferrucci. Wrangler’s Retro Glory collection boasts a similar missive; European stockists of the line include Asos, Urban Outfitters, De Bijenkorf and La Rinascente. “The younger consumer is attracted very much by Americana, by originality and authenticity, by product that comes from the archive.”

     

    But while retro silhouettes and rigid fabrics are on the rise in denim, it would seem that athleisure’s influence has had lasting impacts on the category’s basics, which account for the volume of the market.

    When the athleisure craze first blew up, many denim brands responded by investing heavily in stretch denims to try and compete with the fast-growing sector, a focus that continues to pay off. “Stretch is here to stay,” asserts Sey, who notes that Levi’s has actually seen an increase in demand for stretch denim as the fabric has transitioned into men’s lines.

    “Consumer preferences have changed — comfort has become much more important than in the past,” agrees Hillman. “Women generally wear their jeans a little tighter today compared to the past, so we’ve evolved the fits and fabrics to cater to these evolving tastes.” She notes that skinny jeans are still Levi’s best-selling style. “We don’t see that changing anytime soon,” she adds.

    Consumer desire for comfort has given birth to the rise of performance denim, another innovation that has become a growth driver for the denim sector. Brands that range from 7 For All Man Kind to Joe’s Jeans are utilising new technologies to enhance existing fabrics and styles.

    VF Corp’s Ferrucci says that growth of performance denim at Wrangler — which includes a range of technical fabrics that are water resistant, insulating, cooling, or extremely flexible — has been accelerating fast, “because it’s actually used as a workwear item.” Levi’s too has ramped up investment in similar initiatives, most notably its recent Commuter Trucker jacket, created in partnership with Google. “[It’s] about creating products that meet a consumer need,” says Hillman of the line that was originally created for cyclists in the noughts. “It’s about purposeful design and creative lifestyle solutions to improve people’s lives.”

    The casualisation of dress codes — not just in the workplace, but also for smarter occasions (one has four-figure jeans to thank for that) — has given denim a space to become an every-day go-to in a way that athleisure leggings may never be. “She might wear [leggings] to brunch with her friends on a Sunday, but she wasn’t going to wear them out on a date on a Saturday night, and she wasn’t going to wear them to work,” notes Sey. “Denim has a foothold in certain occasions that leggings never will.”

     

    https://www.businessoffashion.com/articles/intelligence/as-athleisure-cools-denim-heats-up?utm_source=Subscribers&utm_campaign=143ab5b4c4-ugly-fashion-is-big-business-ian-rogers-jose-neves&utm_medium=email&utm_term=0_d2191372b3-143ab5b4c4-417078017

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  • 20.11.2017

    Deloitte: Discount trend to reverse

    Australian retailers are less optimistic about their Christmas fare this year, with seventy per cent expecting sales in 2017 to exceed those in 2016, according to the 2017 Deloitte Retailers’ Christmas Survey. That’s down from 76 per cent last year and strikingly only 42 per cent expect growth over 2 per cent compared to 54 per cent in 2016. According to the services firm, despite, or perhaps because of the nervousness around sales, retailers are holding steady on ma...Read More

    Australian retailers are less optimistic about their Christmas fare this year, with seventy per cent expecting sales in 2017 to exceed those in 2016, according to the 2017 Deloitte Retailers’ Christmas Survey.

    That’s down from 76 per cent last year and strikingly only 42 per cent expect growth over 2 per cent compared to 54 per cent in 2016.

    According to the services firm, despite, or perhaps because of the nervousness around sales, retailers are holding steady on margins with 42 per cent expecting consistent margins to last year (39 per cent) while 15 per cent anticipate decreased margins, compared to 13 per cent.

    Around 43 per cent expect to see an increase in margins compared to 48 per cent in 2016.

    David White, national leader of Deloitte’s Retail, Wholesale & Distribution Group, said despite the relatively stable economic environment and consumer spending throughout the year, the competition for share of wallet has been intense.

    “A number of retailers haven’t survived the year and there is a concern amongst respondents that weakness may continue throughout Christmas 2017,” he said.

    “With so many new and expanding competitors in the market combined with price deflation and rising electricity costs, it will be a challenge for retailers in the apparel, footwear and department store sectors to maintain margins over Christmas in the face of these headwinds. Food and grocery may find the going easier with price inflation providing a boost to margins.”

    So…when will the sales start?

    The increasing trends over the past few years of retailers turning to discounting earlier and earlier in December may this year be reversed, with Deloitte’s report finding the percentage of retailers committed to no discounting (21 per cent) has increased back to 2015 levels. For those that will discount, post-Christmas sales look to be back in vogue with another 21 per cent planning to use this period to clear Christmas stock.

    “During Christmas 2016 we saw many retailers pay the price for heavy and early discounting, with first quarter sales in 2017 proving to be a challenge for many. There seems to be a clear determination not to fall into the same trap this year,” said White.

    “Traditionally, specialist retailers have taken their cues from the major department stores in hitting the discount button. With department stores rebuilding after a number of difficult years perhaps the hope is the trend of early and deep discounts will begin to reverse this year. Time will tell whether retailers stick to their guns.”

    Online share continues to grow

    According to Deloitte, the online share of sales has consistently increased in every survey since 2012, and 2017 is no different. The number of retailers expecting online sales above 6 per cent has increased from 36 per cent to 52 per cent, with 31 per cent of those respondents (versus 14 per cent in 2016) believing their online sales will be more than 10 per cent of their total sales for the period.

    “There is an ever increasing sales proportion made up of online,” said White.

    “The relationship between bricks-and-mortar operators and online is an ever strengthening one as the value of an effective digital strategy continues to bear fruit for traditional retailers. Retailers are getting it; over 80 per cent of respondents consider an effective digital strategy to be critical or very important to the performance of their businesses.

    “We see the market waking up to the digital tipping point, where digital becomes not just a complementary sales channel, but the core of the experience. Retailers are embracing true omnichannel, with the reinvention of the store experience, consolidation of store networks and shifting of large portions of sales onto digital storefronts.”

    More than a river

    As Amazon prepares to officially launch in Australia, there is both hope and trepidation for what the impact may be, with Deloitte finding 17 per cent of survey respondents citing Amazon as their biggest source of new competition.

    But it’s not all doom and gloom – despite 33 per cent of respondents believing Amazon will have a negative impact on their business, 39 per cent believe Amazon will be positive for them.

    “With the greater channels to market created by Amazon, together with opportunities for retailers to work with them, there are undoubtedly a number of retailers who will stand to benefit from the global retail giant’s arrival,” said White.

    “Amazon presents both a challenge and an opportunity for local operators. Overseas, its domination of online retail has forced many retailers to adapt and find innovative ways to connect and build two-way communication with customers. The Australian market is not isolated; retailers have been quietly innovating as the competition heats up locally.”

    Despite the cautious expectations for retailers this Christmas, they remain optimistic about their growth prospects in 2018.  Some 51 per cent expect to grow their earnings by more than 5 per cent next year which, while down from 60 per cent in last year’s survey, remains a lofty aspiration. With the total retail market forecast to grow at 3.6 per cent next year, White said the fight for market share looks set to be fiercer than ever.

    “The process for some may be painful, and we expect to see further consolidation throughout the year, but for those retailers that get the model right there is a big prize in store.”

    True to form, retailers expect new stores will again be the driving force behind sales growth in the next 12 months (43 per cent), followed by new products (24 per cent) and online offerings (15 per cent). By contrast and consistent with expectations of price inflation in 2018, just 3 per cent of retailers are expecting price increases to drive sales growth.

    “The recent increase in the Australian dollar will flow through into price deflation if levels remain elevated, requiring volume growth and new stores to drive sales,” said White.

    Overseas expansion has not been a major focus of local retailers over the past few years, and again this year 58 per cent of retailers do not consider a foray overseas as an opportunity next year.

    “It is important not to forget the longer term opportunities establishing a beachhead overseas can provide. The Australian market is competitive and largely saturated, and local brands will need to look offshore in order to continue growing and building global brand recognition,” added White.

     

    https://www.insideretail.com.au/blog/2017/11/20/deloitte-discount-trend-to-reverse/

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  • 20.11.2017

    Baby Bunting downgrades full-year guidance

    Baby Bunting has downgraded its full-year earnings guidance, after sector consolidation and clearance activity has driven short term pricing and margin deflation. The baby goods retailer on Monday said it expects 2017/18 earnings, excluding employee equity incentive expenses, to be similar to the $23 million it delivered in the previous year. Baby Bunting shares have slumped over 9 per cent after the retailer’s announcement. It had previously forec...Read More

    Baby Bunting has downgraded its full-year earnings guidance, after sector consolidation and clearance activity has driven short term pricing and margin deflation.

    The baby goods retailer on Monday said it expects 2017/18 earnings, excluding employee equity incentive expenses, to be similar to the $23 million it delivered in the previous year.

    Baby Bunting shares have slumped over 9 per cent after the retailer’s announcement.

    It had previously forecast earnings between $25.3 million and $27 million, but after prices and margins suffered amid challenging market conditions.

    Chief executive Matt Spencer said market pricing had not stabilised as industry consolidation and aggressive discounting continued.

    “Given the challenging conditions in the first four months, we think it appropriate to adjust our guidance,” Spencer said.

    “Nevertheless, the business is performing well and we believe our strategy is working.”

    Spencer said the introduction of ‘everyday low pricing’ on the company’s core range of car seats in late July had helped the baby goods retailer grow market share.

    Baby Bunting’s total sales for the four months to November 13 were up 11.4 per cent, Spencer said, but comparable store sales were flat.

    The company has experienced price deflation of 4.3 per cent in the current financial year, which began on June 26.

    As a result, gross margin is currently running about 170 basis points lower than the prior year’s level and this is likely to be reflected for the first half, Spencer told shareholders at the company’s annual general meeting on Monday.

    While gross margin will continue to improve over the year, the full-year margin is expected to be about 100 basis points below the prior year’s level, he said.

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  • 17.11.2017

    Bunnings says its losses in the UK are about to get even worse

    Bunnings' jaunt into the United Kingdom and Ireland is about to get tougher, with parent company Wesfarmers saying that the heavy losses the hardware chain is running up will get worse before they get better.  Wesfarmers bought the British chain Homebase for $705 million last year, and said it would spent up to a $1 billion re-branding and overhauling stores to the Bunnings brand and format.  Bunnings United Kingdom and Ireland [BUKI] ran at a $89 million los...Read More

    Bunnings' jaunt into the United Kingdom and Ireland is about to get tougher, with parent company Wesfarmers saying that the heavy losses the hardware chain is running up will get worse before they get better. 

    Wesfarmers bought the British chain Homebase for $705 million last year, and said it would spent up to a $1 billion re-branding and overhauling stores to the Bunnings brand and format. 

    Bunnings United Kingdom and Ireland [BUKI] ran at a $89 million loss in financial 2017, and the company had flagged that it would be loss-making for some time. 

    But on Thursday Wesfarmers' incoming chief executive Rob Scott told shareholders for the first time that he expected losses in 2018 would be even worse than in 2017. 

    "The customer and community response to the new Bunnings branded stores has been pleasing and they are delivering good sales growth," Mr Scott told Wesfarmer's annual general meeting in Perth. 

    "Losses are however expected to increase in the 2018 financial year as trading remains challenging for Homebase and as we progress the conversion from Homebase to Bunnings." 

    Mr Scott said the company would focus on improving BUKI's management team, and would "be disciplined with how we invest further capital". 

    Wesfarmers said at the time of the investment that its first overseas investment would achieve an 18 per cent return on capital within three to five years.  

    Company chairman Michael Chaney also said the company would be careful before investing any more money in the operations. 

    The losses were coming from the 242 legacy Homebase stores, Mr Chaney said, while the 10 stores converted to the Bunnings brand were enjoying sales growth.

    "I think it will be mid-next year before we get a good handle on how to roll these stores out – what sort of format, how different geographies and social economic areas vary – and how seasonality affects us," he told shareholders. 

    "What we're doing is making sure as we go forward that we evaluate the capital we need to put in." 

    In a research note released to clients on Thursday, Bank of America Merrill Lynch analyst David Errington said that BUKI was shackled by meeting financial returns and would struggle to improve its business without investment.  

    Same-store sales at BUKI fell 12 per cent in the first quarter compared to the same period last year. 

    At Coles, Wesfarmers' biggest business, Mr Scott said cost savings would not outweigh spending on customer service improvements and falling grocery prices.  

    "In the short term, margin pressures are expected to persist as investments in the customer offer are not expected to be fully offset by simplicity benefits," he said. 

    Same-store sales growth at Coles fell to the lowest rate in eight years last quarter, battered by price deflation and a resurgent competitor in Woolworths. 

    The AGM marked the official handing over of managing director from Richard Goyder to Mr Scott. Mr Goyder, who is retiring after more than 12 years in the role, has been appointed chairman of the Australian Football League Commission and Woodside Petroleum, and to the board of Qantas. 

    Mr Scott is Wesfarmer's eighth CEO in 103 years and most recently ran the conglomerate's industrials division. 

     

    http://www.theage.com.au/business/retail/bunnings-says-its-losses-in-the-uk-are-about-to-get-even-worse-20171116-gzmtnc.html?promote_channel=edmail&mbnr=MTA2OTg1MTg&eid=email:nnn-13omn658-ret_newsl-membereng:nnn-04%2F11%2F2013-business_news_am-dom-business-nnn-age-u&campaign_code=13IBU020&et_bid=29104689&list_name=2033_age_busnews_am&instance=2017-11-16--20-14--UTC

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  • 17.11.2017

    BOSS leadership summit: Atlassian opens up its paperwork in an effort to build trust among staff

    The biggest problems companies will face in the next 10 years will be about people not technology. Sherif Mansour, principal product manager at Atlassian, said his business will continue to break technical barriers but the underlying problems will be staff related and most of these were about building trust. He told the AFR Leadership ...Read More

    The biggest problems companies will face in the next 10 years will be about people not technology.

    Sherif Mansour, principal product manager at Atlassian, said his business will continue to break technical barriers but the underlying problems will be staff related and most of these were about building trust.

    He told the AFR Leadership Summit Atlassian had found "lack of trust" consistently ranked as the biggest issue among employees.

    This was backed up in a separate study from Google which found "psychological safety" was the attribute ranked most important by its staff, when asked what was holding the business back.

    "Making sure people have the opportunity to share and express their opinion without feeling they are going to get judged, or pulled down, or get fired even, for saying something silly, is the number one attribute people want." 

    Mr Mansour said the way to build trust was openness: in Altassian's San Francisco HQ there's a sign hanging over the main work area which says "open company, no bullshit".

    "There are three ways to get to this," Mr Mansour said.  

    "Firstly, an open way of working. How do we make sure teams have access to the information they need, as quickly as possible.

    "Secondly, an open way of thinking, how do we make sure we have created a safe place for people to have a conversation without feeling they're going to be dumped on for not being the smartest person in the room. And lastly - an open way of being. How do we create an environment where people can bring their their full selves to work?"

    He said Atlassian had gone a long way down this path by opening up its documentation. The company has a quarter of a million pieces of documentation of which only 10 per cent is restricted.

    "We need to shift our mindsets. Our default has always been, who has to have access to this. But the mindset we need to flip to is 'do we actually need to restrict this?'."

    Other things the company has done included weekly, "all-hands" meetings which all staff were meant to attend and were broadcast on an intranet; putting minutes of all meetings on internal chat; sharing videos of product demonstrations and getting managers to make company annoucenment on blogs - to encourage feedback.

    A year ago the company set up a "hack house" for new employees - which encouraged them to share all their work in open documents and blogs.

     

    http://www.afr.com/leadership/boss-leadership-summit-atlassian-opens-up-its-paperwork-in-an-effort-to-build-trust-among-staff-20171116-gzmj7a

     

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  • 17.11.2017

    Harvey Norman will be Amazon's most formidable competitor

    Harvey Norman narrowly avoided a first strike against its remuneration report after chairman Gerry Harvey mounted a spirited defence of the retailer's performance and outlaid plans to tackle Amazon head on. Mr Harvey dismissed reports that Amazon would "eat our lunch", saying Harvey Norman would leverage the strengths of its bricks and mortar showrooms and online stores and match or beat Amazon on price to remain N...Read More

    Harvey Norman narrowly avoided a first strike against its remuneration report after chairman Gerry Harvey mounted a spirited defence of the retailer's performance and outlaid plans to tackle Amazon head on.

    Mr Harvey dismissed reports that Amazon would "eat our lunch", saying Harvey Norman would leverage the strengths of its bricks and mortar showrooms and online stores and match or beat Amazon on price to remain No. 1 in its categories.

    "It's not a simple case of Amazon coming in and eating our lunch – we'll be the most formidable competitor they've ever seen," Mr Harvey told shareholders at the annual meeting in Sydney on Thursday as Harvey Norman shares rose 3.8 per cent to $3.91.

    "If it gets rough we have a war chest much greater than any of our competitors in this space and we will be the last man standing."

     

    Mr Harvey also said Amazon would be "idiots" to launch new retail products and services before Christmas, suggesting the e-commerce giant was running out of time given that most online retailers shut up shop by mid-December because shoppers were worried about getting deliveries on time.

    Amazon has refused to say exactly when it plans to launch its new offer in Australia but country manager Rocco Braeuniger said on Monday it was "really, really, really" close, while suppliers believe it will be before the end of November.

    "They should be opening in February or March," Mr Harvey said. "To get out there and open now shows how dumb they are – they will make so many mistakes if they do this.

    "It makes no sense, it's just crazy. Every time they do something wrong guess who will do something about it – they are our No. 1 target," he said, adding that many of Harvey Norman's suppliers would not supply Amazon at all.

    Capital management on the cards

    Mr Harvey also indicated that Harvey Norman was keen to distribute about $586 million in franking credits on its balance sheet, either through a special dividend or higher dividend.

    "We have to try to work out how to get rid of them," he said. "It's constantly on our minds. We will have to do some things about it but it's not easy as you know."

    About 81.2 million shares representing 23.4 per cent of shares voted at the annual meeting were against the adoption of Harvey Norman's remuneration report – slightly below the 25 per cent required to trigger a first strike.

    The Australian Shareholders Association, which accounted for about 65 million shares, voted against all resolutions, including the re-election of Mr Harvey, because of the lack of transparency in its accounts and the lack of independent directors on the board. 

    ASA monitor Alan Goldin told the AGM that Harvey Norman's accounts were more transparent than they had been in 2016, when the Australian Securities and Investments Commission intervened, but questions remained about loans to franchisees.

    Mr Harvey dismissed the ASA's concerns, saying: "We just made a record profit and you want to get rid of people who made that profit."

    Mr Harvey was comfortably re-elected, with only 15 per cent of shares voted against him. However, 28 per cent of shares were voted against the re-election of finance director Chris Mentis and 19.7 per cent against Graham Paton.

    Corporate governance weighing on shares

    Mr Harvey once again railed at the company's critics, saying Harvey Norman shares would be worth $6 instead of $4 if not for the negative commentary.

    However, long-term shareholder Robert Talbot-Stern, a professor of ethics and corporate governance at Cambridge University and Wharton Business School at the University of Pennsylvania, said Harvey Norman shares were suffering because of the company's "blind spot" on corporate governance.

    "This company is on the wrong side of history in terms of corporate governance," Professor Talbot-Stern told shareholders. "I submit the reason why your share price is $4 and not $6 is because of your board make up. The lack of an independent board is a negative symbol."

    Chief executive Katie Page said that while Harvey Norman did not have many women on the board the company was leading the way in its support for women coming up through management ranks, women in sport and women's education.

    "We are making sure we bring women through our business so you have greater participation in the future," Ms Page said.

    Flagships a 'game-changer'

    Ms Page also described Harvey Norman's flagship store strategy as a "game-changer", saying recently completed flagships were not only delivering strong sales growth but having a positive "halo effect" on nearby stores.

    "It's just been amazing," Ms Page said, citing early sales from flagships in Auburn in Sydney's west, which is due to be completed in June, Singapore, Malaysia and Tullagh in Ireland.

    "You can see that in the sales we announced [on Wednesday], the immediate effect we've had not just with that store but all our other stores as well, it's exceeding everything we could possibly have thought of."

     

     

    http://www.afr.com/business/retail/harvey-norman-will-be-amazons-most-formidable-competitor-20171115-gzlxs1

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  • 17.11.2017

    There are no price tags at Calvin Klein's Holiday Pop-Up

    Calvin Klein is teaming up with Amazon Fashion on holiday pop-ups in New York and Los Angeles and an exclusive online stop at Amazon.com/mycalvins. The brick-and-mortar stores will stock classic and exclusive ranges of Calvin Klein underwear and loungewear (all trimmed in logoed elastic ban...Read More

    Calvin Klein is teaming up with Amazon Fashion on holiday pop-ups in New York and Los Angeles and an exclusive online stop at Amazon.com/mycalvins. The brick-and-mortar stores will stock classic and exclusive ranges of Calvin Klein underwear and loungewear (all trimmed in logoed elastic bands), while the site will have an added Calvin Klein jeans offering. That’s the fashion component of this collaboration between our industry’s busiest brand and the online retail behemoth. But there’s a whole world of technological activations that will keep shoppers amused, too.

    The brick-and-mortar pop-ups are kitted out with Amazon’s latest technology. Each item has a barcode that can be scanned and bought directly on the Amazon app, and is accompanied by a real product review. The downside of this is that nothing has a price—Amazon prices change based on a proprietary algorithm or formula. Don’t ask them how it’s decided—they won’t tell you. I expect real shoppers might be frustrated by the lack of cost information; how will you know if the bralette you want is $30 or $50 without going through the hassle of scanning every tag?

    Both the New York and Los Angeles stores are also monitored by webcams that can be turned on via an Amazon Echo Look and allow shoppers across the country to communicate with each other. Fun or weird? You’ll have to experience it yourself to decide. What’s definitely amusing is the dressing room, where an Amazon Echo is set up to play a Bruno Mars track and change the lighting from simply glowing to a full club effect. You’ll never want to leave. What’s more, stores offer free embroidery in Calvin Klein’s proprietary font.

    The collaboration is Calvin Klein’s first foray into new technologies and Amazon Fashion’s highest-profile fashion project. Chances are, it won’t be Amazon’s last. The exposure both companies are getting from teaming up—and having a campaign fronted by Lilly Singh and Karlie Kloss—seems too good to be a one-time-only affair.

     

    The Calvin Klein x Amazon Fashion pop-ups are open at 545 Broadway, New York, New York, 10012 and 1444 Third Street Promenade, Santa Monica, California, 90401 and online at Amazon.com/mycalvins

     

    https://www.vogue.com/article/calvin-klein-amazon-fashion-pop-up-shop?mbid=nl_VogueRunway111617_vogue-runway&CNDID=32504923&spMailingID=17680752&spUserID=MTM2MzQ1MzE4MzUyS0&spJobID=1103671679&spReportId=MTEwMzY3MTY3OQS2

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  • 17.11.2017

    David Jones sales decline further ahead of Christmas

    Department store retailer David Jones has seen sales decline by 5.3 per cent and by 5.2 per cent in comparable stores in its latest trading update. Parent organisation, South African conglomerate Woolworths Holdings, said sales growth was impacted, but gross margin was protected, by the pull-forward of the end of seasonwinter sale into late June and a reduction in promotional activity throughout the period. Key conc...Read More

    Department store retailer David Jones has seen sales decline by 5.3 per cent and by 5.2 per cent in comparable stores in its latest trading update.

    Parent organisation, South African conglomerate Woolworths Holdings, said sales growth was impacted, but gross margin was protected, by the pull-forward of the end of seasonwinter sale into late June and a reduction in promotional activity throughout the period.

    Key concession brands also “reduced tactical campaign activity” in David Jones to reduce discounting.

    Retail rival, Myer, recently dropped its sales targets at the company’s AGM.

    Woolworths said David Jones was further disrupted by the refurbishments of the Bondi Junction Food Hall and the Elizabeth Street store, plus the implementation of a new inventory management system.

    “Sales in the last six weeks have shown an improving trend. Retail space reduced by a net 2.2 per cent as we continue to drive space optimisation,” the retailer said.

    In a more positive sign, Country Road Group sales increased by 8.3 per cent in Australian dollar terms.

    Sales in comparable stores (which excludes Politix stores acquired in November 2016) declined by 0.4 per cent, t hough “market share has improved” according to Woolworths.

    Trading space reduced by a net 2.0 per cent during the period (excluding Politix).

    Eight new Politix locations within David Jones stores during the period, which “are seeing positive results.

    Overall group sales for the first 20 weeks of the 2018 financial year increased by 2.6 per cent (3.1 per cent in constantcurrency terms) compared to the prior period.

    Recently, David Jones launched a premium technology category, a curated offer featuring premium brands focusing on audiovisual products.

    It will roll across eight stores in Australia including at Bourke Street and Chadstone in Melbourne, Bondi and Market Street in Sydney, Queens Plaza in Brisbane Adelaide Central and Hay Street in Perth.

     

    https://www.insideretail.com.au/blog/2017/11/16/david-jones-sales-decline-further-ahead-of-christmas/

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  • 17.11.2017

    Amazon Australia now has computers, monitors, and more listed on its website

    Amazon Australia is tipped to launch within days, but products have started to appear on the site. Eighty computer products from HP are now displaying in the search results. Even though on the front page Amazon.com...Read More

    Amazon Australia is tipped to launch within days, but products have started to appear on the site.

    Eighty computer products from HP are now displaying in the search results.

    Even though on the front page Amazon.com.au is still showing as a shopfront for just books, a search query, reported by esellercafe.com and verified by Business Insider, brings up five pages of HP products.

    The results include notebook computers, printers, printer refills, keyboards, dongles, networking equipment and monitors — although none can be clicked through to place into the shopping basket.

    Every item shows that one merchant is offering the product for sale, but the link to find out who the seller is leads nowhere. The items are also categorised as "any category", as opposed to a "Computers & Tablets" category.

     

    While the Amazon.com.au website has operated for years, it has been an online shopfront for the US parent company. Business Insider confirmed in April that Amazon was setting up a full-scale operation in Australia.

    On Monday, hundreds of Australian merchants attended a seminar in Sydney to hear from Amazon executives that both a third-party marketplace and Amazon-native platforms would be available upon launch – although the launch date was still kept a secret.

    Power boards, cables

    Australian retailers will pay $49.95 plus GST each month to sell on Amazon, plus 6 per cent to 15 per cent of each item sold.

     

    Industry analysts have predicted Amazon Australia would start trading before November 24, which is a big sales day known in the US as Black Friday. Business Insider reported last week that the sales system itself is ready to go, and the fulfillment centre in Melbourne has been welcoming employees at least since the end of October.

    Last week, Lifehacker reported Reddit users were finding power boards, cables and other electronic accessories listed on the Australian site.

    An Amazon spokesman told Business Insider last month that Dandenong South, in Melbourne's south-eastern suburbs, was selected as the location for the first fulfillment centre without any government funding or tax rebates.

    "The site is an excellent fit for Amazon's requirements – great location, good infrastructure, excellent source of talent – we are excited to be opening our first Australian fulfilment centre in this location," said the spokesperson.

     

    http://www.afr.com/business/retail/amazon-australia-now-has-computers-monitors-and-more-listed-on-its-website-20171116-gzn5m0

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  • 16.11.2017

    Sydney, Melbourne in top 20 most expensive retail streets in world

    The new retail and residential entrants and revamped stores has helped consolidate Sydney's Pitt Street Mall, Melbourne's Bourke Street Mall and Brisbane's Queen Street as some of the most expensive places in the world to rent a store. While the top spots are held by the likes of New York's Fifth Avenue, Paris' Avenue des Champs-Elysees and Hong Kong's Causeway Bay, Sydney, Melbourne and now Brisbane are holding their own, particularly in the Asia-Pacific ...Read More

    The new retail and residential entrants and revamped stores has helped consolidate Sydney's Pitt Street Mall, Melbourne's Bourke Street Mall and Brisbane's Queen Street as some of the most expensive places in the world to rent a store.

    While the top spots are held by the likes of New York's Fifth Avenue, Paris' Avenue des Champs-Elysees and Hong Kong's Causeway Bay, Sydney, Melbourne and now Brisbane are holding their own, particularly in the Asia-Pacific region.

    In the latest Cushman & Wakefield Main Streets Across the Worldreport, Pitt Street has cemented its place at no. 7 globally, while Melbourne's Bourke Street is no. 17 and Brisbane's Queen Street Mall is 32nd in the world. 

    The report is based on rent per capita – per square foot in American dollars and per square metre in euros – and tracks 462 of the top retail streets around the globe.

    In Sydney, the average rent per square metre per annum is about $12,000, Melbourne's is $6600/sqm and Brisbane is  $4050/sqm.

    Cushman & Wakefield's national director of research, John Sears, has said there is $62 billion of infrastructure development across Sydney's CBD due to the upgrades along George Street, Circular Quay and a swath of new apartments surrounding Hyde Park.

    Melbourne and Brisbane are also in the midst of CBD redevelopment and all three cities are seeing a rise in demand for an array of retail offerings. This is underpinning rental growth.

    "These developments will help drive economic growth by making it faster and easier to move around the CBD, promote Sydney as a destination and create the space to absorb future business growth," Mr Sears said.

    Cushman & Wakefield retail leasing directors Matt Hudson and Ben Tremellen said this rise in population, from new office developments, residential towers, hotel projects and student accommodation, is driving a change in tenancies across the cities.

    Where once Pitt Street and Bourke Street malls were dominated by department stores and the international fashion brands, banks, supermarkets, digital and electronic equipment and now cosmetics, are all vying for the prime retail sites.

    It is also putting pressure on landlords to up their game and freshen up their stores and merchandise, in order to achieve the sales necessary to pay the high rents.

    "Sydney is bursting at the seams," Mr Hudson said.

    if a retailer has not kept up its relevance to the consumer ... they will be caught in the rotation game.

    Cushman & Wakefield retail leasing director Ben Tremellen

    "With Pitt Street Mall having the house-full sign, and if a retail site is tired and losing customers, there is a long line of potential new players."

    Mr Tremellen said with the population growth rising in CBD living, banks in particular, are coming back from the suburbs and want prime CBD sites to service the expanded customer base.

    "These tenants want bigger footprints and are willing to pay for a spot in the prime, main streets across the country," Mr Tremellen said.

    "This trend will continue and if a retailer has not kept up its relevance to the consumer ... they will be caught in the rotation game."

    Main streets in Asia

    According to the report, food and beverage operators remain a key driver of demand, although health and beauty, fashion, sports and lifestyle brands have been equally prominent across much of the region.

    Technology is playing a major role, exemplified by Singapore's drive towards becoming a smart nation, with retailers increasingly turning it to their advantage to attract customers and drive store sales. 

    It says activity in the Australian retail market has been limited by the low levels of availability but with new developments and lease expiries on the horizon, there are an increasing number of opportunities for landlords to secure high-quality tenants.

    One of the most recent trends has been for domestic retailers to move to suburban shopping centre locations, which has freed up CBD space for major international operators.

    "With a maturing retail sector and a resurgence in inner city living, city centre streets and malls will continue to see strong retailer demand.  Extended trading hours will provide an additional boost to the market, with shops in some cities now open from 7am to 7pm and a further liberalisation possible in Melbourne and Sydney," the report says.

     

    http://www.smh.com.au/business/property/sydney-melbourne-enter-top-10-most-expensive-retail-strips-in-asia-20171114-gzlac5.html?promote_channel=edmail&mbnr=MTA2OTg1MTg&eid=email:nnn-13omn659-ret_newsl-membereng:nnn-04%2F11%2F2013-business_news_pm-dom-business-nnn-smh-u&campaign_code=13IBU021&et_bid=29104476&list_name=2032_smh_busnews_pm&instance=2017-11-15--05-58--UTC

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  • 16.11.2017

    How a designer collaboration transformed the business of Le Specs

    The once-sleepy Australian eyewear label is on track to become a $100 million brand, thanks, at least in part, to the blockbuster — and somewhat unexpected — success of its partnership with womenswear designer Adam Selman.   SYDNEY, Australia — The biggest name in eyewear may just be "Lolita." Pictured on everyone from ...Read More

    The once-sleepy Australian eyewear label is on track to become a $100 million brand, thanks, at least in part, to the blockbuster — and somewhat unexpected — success of its partnership with womenswear designer Adam Selman.

     

    SYDNEY, Australia — The biggest name in eyewear may just be "Lolita." Pictured on everyone from Rihanna to Kendall Jenner and Gigi Hadid, the sharply cat-eye-angled sunglasses — named for the Stanley Kubrick film that inspired them — are the standout success from a collaboration between Australian eyewear brand Le Specs and American womenswear designer Adam Selman. Such is the demand for the £75 ($119) style that it has spawned countless waiting lists and has generated resale margins on eBay of up to four times its retail price.

    “It’s been so crazy — to see that people are willing to bid and pay such a high inflation price for them, that was what was mind-blowing,” says Hamish Tame, creative director of Le Specs. “That one style is by far our highest-selling style across the board. It feels like they are a pair of Yeezy’s, or something from the Louis Vuitton x Supreme collaboration,” he jokes.

    Tame knew he was onto something when Gigi Hadid Instagrammed a picture of herself wearing the Last Lolita frames in black in July last year: Hadid had received one of 100 pairs of Lolita’s that the brand had set aside for gifting, but was not paid to endorse the product. The picture garnered over 1.6 million likes, and Le Specs sold out of all its inventory — over 1,000 pieces — overnight.

    Initially conceived in September 2016 as a one-collection collaboration, the Adam Selman partnership has been so successful that Le Specs has extended it to 2020. Tame sees it as one of Le Specs’ three key business pillars going forward, sitting alongside Le Specs Luxe — a more premium line — and the classic Le Specs range (priced from around £35, or $46). “It’s part of the family now,” he says.

    The Adam Selman collaboration is responsible for raising the company’s sales by 10 percent, putting the brand on track to become a $100 million label by 2020. Within 24 hours of launching, sales of the Lolita frame were equivalent to average monthly sales for the entire site. Since, the site’s total sales have grown 150 percent year-on-year.

    It was a success Le Specs never predicted. Selman — who had never designed sunglasses prior to the collab — was something of an unusual partner for the brand. Though Le Specs had previously collaborated with House of Holland in a similar capacity, Selman was far lesser known at the time and required a greater leap of faith.

    “Adam’s ready-to-wear label had a few cool stockists, but it was kind of [under-the-radar],” Tame says. “We walked out of [the] initial meeting and we thought, ‘It doesn’t make sense for us to do this and Adam isn’t known on a global scale’. But he had this energy and passion. We just had a feeling that we could do something interesting together. Never did we think it would become the 'It' frame, or that it would be sold for four times the price on eBay, with waiting lists and all that.”

     

    Tame attributes part of the collaboration’s success to the fact that both brands were still relatively unknown in certain circles. “It was a shrewd collaboration in a sense. It wasn't about a luxury brand doing a collaboration that went out to the masses, nor was it a brand that had tried to take a big property from a cartoon. We both just set out to do something different.” This allowed the pair the freedom to be more “creative” in their approach to product. “Not being afraid to take risks allowed us to design innovative new stuff.”

    Le Specs is now available in 70 countries — from 58 just a year ago — and is stocked in over 1,000 retailers. “I had a Skype meeting with Adam the morning the black Lolita got released,” says Tame. “We had just received 1,600 pieces. Over the duration of that hour that we were talking, I was like, ‘Ok, we’re up to 500 units sold, we’re up to 600 units…’ By the end of the Skype call we had totally sold out.”

    In the last three months alone, the brand’s social media audience has grown 30 percent, which Tame attributes to celebrity endorsement. (While celebrity seeding reaps lots of sales for the brand, no other style has become a phenomenon like the Lolita. When Gigi Hadid is pictured wearing other sunglasses from Le Specs, the brand notices nothing more than a momentary spike in sales.)

    Everyone tells you the formula of creating best sellers — you must do black or tortoiseshell — but no-one knows why the rule exists.

    It’s a long way away from Le Specs' humble beginnings. Founded in 1979 by the cosmetics company Australis, the brand enjoyed success in the mid-'80s after it was created to sit alongside a line of discount sunscreens. But the cosmetics firm, not knowing how to further develop the brand, eventually shelved it, and Le Specs sat gathering dust until the Australian eyewear distributor Sunshades acquired the license for the name in 2005.

    Appointing Sunshades’ creative director Tame to the helm, the brand was relaunched that same year, and quickly found popularity in Australia due to its accessible price point and its bold silhouettes. “We had a domestic business mostly, but outside Australia, we really only had business with Topshop, Asos and some other high street accounts, as well as some cool boutiques in Sweden,” says Tame.

    Today, the label is stocked at a range of department stores and e-commerce sites, including Net-a-Porter, MatchesFashion and Neiman Marcus. Le Specs is a rare exception in being one of the only brands stocked across such a high-low mix of retailers: it’s a bestseller on both Matches and Asos.

    It is also the cheapest brand to ever garner a Matches waiting list. “Le Specs resonates well with our customers globally — they are always ahead of the curve in a contemporary and exciting way,” says Chelsea Power, lifestyle buyer at MatchesFashion. “The Lolita style in particular has been popular — even in November we are selling out.” Typically, luxury retailers will buy 20 to 30 units of an eyewear. “But [Matches] now buy a couple of thousand units and they sell them within the day. We constantly have back orders for the Lolita,” says Tame.

    Scarcity is one of the reasons behind the style’s success, according to Tame. The brand’s eyewear is manufactured in China, and has a three or four month lead time on orders. In the beginning, neither Tame nor Selman expected uptake to be so strong, and so ordered small volumes of product. And while it was not a deliberate strategy initially, Tame says he has since kept production levels low because he believes it helps fuel demand. “We’ve been undercooking it each time, and that’s the reason we can’t keep it in stock.

    “It was always the traditional retail formula to be in stock of everything at all times, but maybe this is how people want to shop now — what they want to feel when they buy something, getting something from a wait list as soon as it arrives,” he continues, adding that the buyers he works with might disagree with him.

    Selman agrees: “I love hearing the stories of what people had to do to get their hands on a pair of Lolitas.”

    As such, the brand’s next drop — scheduled to retail from November 15 — and all future Adam Selman collections, will be kept tight in both style and quantity. “We’ve proven that you don’t need to have a huge collection to drive sales or to drive demand,” says Tame. “Everyone tells you about the formula of creating more bestsellers — you must make sure to do black or tortoiseshell — and it feels like everyone has these rules but when you ask them why, no-one really knows the answer or why the rule exists.”

    In that vein, the latest Lolita comes in hot pink: Selman was inspired by 60-year old escort and Los Angeles icon Angelyne, who, according to the designer, is a “vision and a true original. She wears hot-pink clothes all the time, wears hot-pink eyeshadow, drives a hot-pink Corvette. She just doesn’t care; she is so fabulous.” In other words, she’s a rule-breaker. Just like the Lolita.

     

    https://www.businessoffashion.com/articles/turning-point/how-a-designer-collaboration-transformed-the-business-of-le-specs?utm_source=Subscribers&utm_campaign=5a19246ccd-farfetch-revenues-surge-scaling-direct-to-consumer&utm_medium=email&utm_term=0_d2191372b3-5a19246ccd-417078017

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  • 16.11.2017

    Levi's uses its vintage past to revitalise its future

    To entice more women to buy its jeans, Levi’s is looking to the past and the future all at once. Following a 2015 update of its women’s collection, which included a refresh of fits and fabrications, Levi Strauss & Co is diving into the white-hot vintage jean market with the global launch of Levi’s Authorized Vintage. This collection of 50,000...Read More

    To entice more women to buy its jeans, Levi’s is looking to the past and the future all at once.

    Following a 2015 update of its women’s collection, which included a refresh of fits and fabrications, Levi Strauss & Co is diving into the white-hot vintage jean market with the global launch of Levi’s Authorized Vintage.

    This collection of 50,000 jeans from the 1960s, 70s and 80s, priced at $US300 ($393) a pair, aims to compete with purveyors who have made a killing selling archival denim — much of it Levi’s. Both moves are intended to catapult Levi’s out of several years of stagnation.

    “We were sitting on an aged icon,” says James Curleigh, who was hired as Levi’s president five years ago.

    Silhouettes were in need of updating and the overall collection was lacking in vitality, he says. He says Levi’s global businesses were idling, without a ­focused strategy, and it was slow to leverage the surge in online shopping.

    Levi’s revitalised its e-commerce business, investing more significantly in overseas markets, particularly Europe.

    It also put new emphasis on casual wear such as T-shirts, shorts and trucker jackets, which has boosted sales in that category by double digits. But ­enticing more women to buy Levi’s was critical.

    Blame it on yoga pants: once “athleisure” entered their vocabulary during the past decade, women weren’t about to slip back into stiff skinny jeans. In 2015, Levi’s started quizzing women about their favourite pair of jeans.

    “We learned how important fabric was and how important comfort was,” says Karyn Hillman, Levi’s chief product officer. The company began weaving stretch into the jeans’ cotton. Today, 80 per cent of Levi’s jeans contain stretch, including the 711, a 2 per cent stretch pair that has become the bedrock of a women’s line, which posted double-digit sales growth this past year.

    When Jen Sey, Levi’s chief marketing officer, joined the company 18 years ago, women made up 30 per cent of jeans customers. Today, that number is closer to 60 per cent.

    Levi’s is benefiting from the rise in female customers, racking up four straight years of growth; third-quarter sales were up another 7 per cent.

    Levi’s also has capitalised on the broader cultural focus on nostalgia. “Levi’s is the core, pioneer denim brand and people are really attracted to that,” says Bloomingdale fashion direction vice-president Heather Shimokawa.

    Millennial shoppers in particular are contributing to a growing vintage fashion trend, according to Ayako Homma, a senior research analyst at Euromonitor International, a market research firm. “Jean companies are using vintage styles to attract consumers who are new to the brand,” she says.

    Levi’s introduced the Wedgie, a high-rise jean reminiscent of Charlie’s Angels-era hip-huggers, and a revitalised 501, which has been in production since 1873, with tapered and skinny iterations that echo its iconic 70s and 80s style.

    Current ad campaigns feature jeans worn by classic male rockers but modelled by contemporary female musicians such as Alicia Keys, Haim and Solange.

    Indeed, Levi’s’ vintage appeal helped inspire ReDone, a three-year-old specialty denim label that tailors vintage men’s jeans to fit modern women and sells for upward of $US300 at 350 stores in 27 countries. But rather than send a cease and desist order, Levi’s saw an opportunity. It began its Authorized Vintage program in 2015, with ReDone as the first approved partner.

    Last week, Authorized Vintage went global: at a trade show last year, Curleigh was approached by a man claiming to have a collection of vintage Levi’s. Not just a few pairs but a stash of more than 50,000 mostly US-made jeans. Levi’s scooped them up and will sell and tailor them at Levi’s retail outlets nationwide. The jeans will also be available for designer partners such as Virgil Abloh of Off-White and Diane Von Furs­tenberg to recycle as part of future collaborations. Says Curleigh: “A pair of jeans that someone bought 30 years ago for $US30 can now be worth $US300 because there’s value in authenticity.”

     

    http://www.theaustralian.com.au/business/wall-street-journal/levis-uses-its-vintage-past-to-revitalise-its-future/news-story/ec75584aa67c21ab8c841c01bfca9eb1?utm_source=The%20Australian&utm_medium=email&utm_campaign=editorial&utm_content=KGBDossier

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  • 14.11.2017

    Amazon confirms launch plans, will open with retail and marketplace offering

    Global e-commerce giant Amazon has said it will launch in Australia with both an online retail and a "marketplace" offering, confirming for the first time its plan of attack for the local market. But Amazon's Australian country manager, Rocco Braeuniger, fell tantalisingly short of saying when the company would finally start trading here, telling a suppliers' summit in Sydney on Monday morning only that it was "getting really, really, really close". ...Read More

    Global e-commerce giant Amazon has said it will launch in Australia with both an online retail and a "marketplace" offering, confirming for the first time its plan of attack for the local market.

    But Amazon's Australian country manager, Rocco Braeuniger, fell tantalisingly short of saying when the company would finally start trading here, telling a suppliers' summit in Sydney on Monday morning only that it was "getting really, really, really close".

    Analysts expect the company to start taking orders before Christmas, with some predicting the launch will coincide with the Black Friday or Cyber Monday shopping events on November 24 and 27.

    Mr Braeuniger did confirm that when Amazon opens, it will be selling products itself out of its first Australian warehouse while also hosting third-party retailers on its online marketplace. 

    "We have the long-term ambition to be successful and to earn the trust of Australian companies and the Australian customer," Mr Braeuniger told a crowd of about 600 people, including hundreds of small business owners hoping to sell their products on the website. 

    "We will be focusing on listening to the Australian customer, inventing on behalf of the Australian customer, [and] delivering a great customer experience."

    Mr Braeuniger said Amazon's rollout in Australia would be similar to that in European markets, where the company launched with a wide range of products and delivery options, which was then built on over time. 

    While Amazon did not answer specific questions about its business plans, Mr Braeuniger's language suggests it might wait to establish a local customer base before it introduces products like its fast-delivery subscription service Prime Now or the fresh food delivery AmazonFresh. 

    Globally, about half of all Amazon 's sales - or 2 billion products - were through its Marketplace platform, and it was expected that Amazon would be heavily geared towards third-party sellers when it first launched in Australia as it built up its logistics and distribution network.

    Mr Braeuniger said there "thousands" of third-party sellers already registered, who will pay a $49.95 monthly fee to sell through Amazon plus a "referral fee" of between 6 and 15 per cent of each transaction depending on the product.

    On Monday Amazon was spruiking its "fulfillment by Amazon" service to potential third-party sellers. The service sees Amazon's store sellers' products in its warehouses and dispatch orders on their behalf. However, it would not say when this would be available to sellers. 

    The company is in the process of converting a 24,000-square-metre warehouse in Dandenong South, in Melbourne's outer east, into its first Australian fulfilment centre. 

    While many established players in the struggling retail market have been waiting for Amazons' arrival with trepidation, Australian Retailers Association executive director Russell Zimmerman said the platform was an exciting opportunity for small to medium retailers.

    "The biggest growth at the moment in retail sales is coming off online, so this is the right time to be putting out an Amazon," Mr Zimmerman said. 

    Amazon was tight-lipped about what products it would sell direct to customers, but analysts have said it has signed up a number of major product wholesalers. It is not known if Amazon Australia will sell any private label products when it launches, which is a major source of products in other markets. 

    The company has taken out local trademarks on private-label brands that sell electronics, home wares, baby products, and pantry staples. 

    It appears Amazon is also readying for a sizeable fashion offering locally, with the company this week booking out several photography studios around Melbourne for product shoots.

    Analysts say electronics retailers like JB Hi-Fi and department stores like Myer and David Jones are most likely to be hurt by Amazon's arrival, an event that has been weighing on the share prices of retail stocks this year.

    While it is not expected Amazon will steal significant market share initially, the Seattle-based giant will almost certainly undercut incumbent retailers on price, forcing them to drop prices and sacrifice profits to stay competitive.

     

    http://www.smh.com.au/business/retail/amazon-confirms-launch-plans-will-open-with-retail-and-marketplace-offering-20171112-gzjxjo.html?promote_channel=edmail&mbnr=MTA2OTg1MTg&eid=email:nnn-13omn659-ret_newsl-membereng:nnn-04%2F11%2F2013-business_news_pm-dom-business-nnn-smh-u&campaign_code=13IBU021&et_bid=29104054&list_name=2032_smh_busnews_pm&instance=2017-11-13--07-02--UTC

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  • 14.11.2017

    Aldi sales top $8 billion with Woolies, Amazon no worry

    Aldi Australia is generating sales growth of more than 10 per cent in 2017 as sales push through the $8 billion mark after a revamp of its strategy to devote more space to fresh foods. Chief executive Tom Daunt has signalled there is still room for another 100 stores in its local network. He said heavy price cutting by much larger rival ...Read More

    Aldi Australia is generating sales growth of more than 10 per cent in 2017 as sales push through the $8 billion mark after a revamp of its strategy to devote more space to fresh foods.

    Chief executive Tom Daunt has signalled there is still room for another 100 stores in its local network.

    He said heavy price cutting by much larger rival Woolworths, which had invested $1 billion in cutting prices in the past 18 months to regain momentum against Coles, had had little impact on the Aldi business, which was making strong gains as its value approach was embraced by cash-strapped shoppers.

    Mr Daunt also said the looming opening of a local distribution business by online giant Amazon would cause no problems for Aldi, which had a substantial general merchandise offering of clothing, outdoor products and tools in its stores with its "special buys", along with its core supermarket range of 1500 grocery product lines.

     

    "I think we'll trade just as well with them here, as not," Mr Daunt said. The arrival of rival German supermarket and general merchandise operator Kaufland, which last month acquired its first site in Australia for $25 million ahead of a local roll-out, would bring extra competition into Australia, which was welcome.

    No change of course

    Aldi's strategy in Australia wouldn't be changing course, although he acknowledged that, in the next few years, the company would be careful not to be too aggressive in opening new stores. Aldi was poised to open its 500th store in late November at Glenmore Park in outer Sydney after arriving in Australia in 2001.

    "If you go too far then the proposition can get compromised," he said.

    Mr Daunt said there were no set numbers or a timetable about when Aldi might hit a ceiling of expansion in Australia, but it was likely to finish up at about 600 stores in total. Aldi wasn't planning to enter Tasmania or the Northern Territory yet. "The answer is we'll wait and see," he said. The company had crunched the numbers on Tasmania but he pointed out it was small population and supply chain constraints made it harder to justify. 

    Mr Daunt said the sharper focus on fresh food had been a winner. The "Project Fresh" strategy, where fresh food was given more prominence and had been moved to the front of stores in a progressive revamp that would be completed by 2020, had been an important growth engine for Aldi's sales in 2017.

    "That's certainly underpinning some of the growth," he said.

    The retailer had also benefited from store roll-outs in South Australia and Western Australia.

    Aldi was generating "double-digit" sales growth. "We'll be comfortably up over $8 billion," Mr Daunt said of calendar 2017.

    Wedded to bricks and mortar

    His confidence that Aldi would be largely immune from Amazon's local distribution power when it started operating at full strength was based on limited overlap and the evidence from other countries in the northern hemisphere where the two operated in the same market.

    Aldi was firmly wedded to a bricks and mortar store approach and offering the best value. "We don't deliver, we don't get distracted by online," Mr Daunt said.

    He said Aldi had cut the prices of 500 of its own products in the past 12 months and households were enthusiastically responding at a time when spending power was under pressure from rising electricity bills and low wage growth.

    "What people are short of is cash," he said. "Discretionary income is under pressure."

    He said research by Deloitte Access Economics for Aldi had shown that, in the past year, 25 per cent of people had changed the grocery outlet at which they most frequently shopped, and that value for money was the main driver of those decisions.

    He said Australian shoppers were very discerning and, while they sought out low prices, the products also needed to be good value and high quality.

    "Australians are not silly. Australians will not buy cheap crap."

    http://www.afr.com/business/retail/aldi-sales-top-8-billion-with-woolies-amazon-no-worry-20171109-gzihql?eid=Email:nnn-16OMN00049-ret_newsl-membereng:nnn-06%2F09%2F2016-BeforeTheBell-dom-business-nnn-afr-u&et_cid=29104124&et_rid=1926129886&Channel=Email&EmailTypeCode=&LinkName=http%3a%2f%2fwww.afr.com%2fbusiness%2fretail%2faldi-sales-top-8-billion-with-woolies-amazon-no-worry-20171109-gzihql%3feid%3dEmail%3annn-16OMN00049-ret_newsl-membereng%3annn-06%252F09%252F2016-BeforeTheBell-dom-business-nnn-afr-u&Email_name=BTB-11-14&Day_Sent=14112017

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  • 14.11.2017

    Amazon invests $700M for long-term success in Australia

    Amazon has confirmed the fears of Australian retailers by claiming it is willing to sacrifice short-term returns to ensure long-term success as it prepares to invest $700 million in Australia over the next five years. Amazon's Australian country manager Rocco Braeuniger has left customers and consumers guessing about the exact date of the e-commerce giant's Australian lau...Read More

    Amazon has confirmed the fears of Australian retailers by claiming it is willing to sacrifice short-term returns to ensure long-term success as it prepares to invest $700 million in Australia over the next five years.

    Amazon's Australian country manager Rocco Braeuniger has left customers and consumers guessing about the exact date of the e-commerce giant's Australian launch but has removed any doubt about its ambitious plans for the $300 billion retail market.

    Speaking publicly for the first time since taking the helm in August, Mr Braeuniger revealed on Monday that Amazon would launch its retail platforms – its first party offer and Amazon Marketplace – simultaneously in Australia "very soon".

    "Let me tell you we are getting really, really really close," Mr Braeuniger told about 500 potential customers at Amazon's first seller summit in Sydney.

    Rollout similar to Spain's

    Mr Braeuniger also revealed that the rollout in Australia would be similar to that in Spain, where Amazon launched with several categories and services simultaneously and added more categories and features over time.

    This will be good news for small and medium-sized retailers and suppliers keen to list their wares on Amazon Marketplace and tap into a global market of 300 million consumers in more than 30 countries.

    However, it will come as a shock to retailers and analysts, many of whom expected Amazon's Australian expansion to mirror that in Canada, where it took the online retailer 10 years to build up to offering 50 per cent of the categories sold in other markets and to launch its subscription and free delivery service Prime.

    Mr Braeuniger, who joined Amazon in 2006 and has held several roles including director of consumables at Amazon.de in Germany, said Amazon wanted to be known as "the earth's most customer-centric company". Its focus in Australia would be no different to that overseas.

    "We have long-term ambitions to be successful and earn the trust of Australian companies and the Australian customer," Mr Braeuniger said.

    "We will be focusing on listening to the Australian customer, inventing on behalf of the Australian customer [and] delivering a great customer experience.

    "It takes time and commitment to do this but we are willing to invest," he said. "We do not sacrifice long-term success for short-term results.

    'Learn from our failures'

    "We learn from failures and develop things that work," he said, pointing to the fact that Marketplace, which accounts for half the products sold on Amazon sites globally, was the result of a failed experiment with online auctions.

    After originally anticipating a soft launch mid-November, suppliers now expect Amazon to kick off its expanded offer around November 24 to coincide with the Black Friday and Cyber Monday (November 27) online shopping promotions.

    Amazon will launch its first party offer – where it buys products on a wholesale basis directly from suppliers and brands owners and sets its own prices – and its Marketplace offer – where individual sellers list their wares on Amazon's site – simultaneously, offering hundreds of thousands of products products.

    "We want to do the very same here (as we did in Spain)," Mr Braeuniger said.

    "We'll bring thousands of jobs to Australia, we'll invest millions of dollars and help sellers grow their businesses and be successful."

    Products will be delivered from Amazon's fulfilment centre in Dandenong South in Melbourne, which was acquired in July and is already operational. The fulfilment centre has similar layouts and systems to other sites overseas to enable fast handling, picking and packing and has the capacity to distribute hundreds of thousands of products.

    It is understood Amazon is initially aiming for two-day deliveries until it can open fulfilment centres in other states and a series of small despatch centres to facilitate the launch of Prime.

    Mr Braeuniger said thousands of Australian sellers were already selling on Amazon sites overseas and thousands more had registered to sell on amazon.com.au since Amazon confirmed its launch plans in April.

    The summit featured a panel discussion with four Australian-based Amazon Marketplace sellers including Kevin Lippy of baby products company Hip Cub, which sells nappy bags on Amazon's and US and UK sites, Adam Mills, founder of KoalaSafe, which sells products that enable parents to control and track their children's online activity, Third Sigma's Liz Cassidy, who sells beauty and baby products and executive coaching services.

    Christian Gibson, founder of sustainable camera accessories business Gobe, said his sales had risen from $10,000 a month to $300,000 a month since the company started selling on Marketplace two years ago.

    Shipping news

    Amazon said the monthly fee for selling on Marketplace would be $49.95 plus GST for an unlimited number of product listings.

    Sellers will also pay a "referral fee" of between 6 and 15 per cent of completed sales, depending on the category, to cover payment processing. This is similar to other markets overseas.

    The cost of Fulfilment by Amazon was not revealed but sources indicated it would be similar to that in the US, where sellers pay between $US4 and $US7 per item for shipping and handling, customer service and returns.

    This is half the cost of shipping and handling in Australia.

    Until Fulfilment by Amazon is launched, Marketplace sellers will be responsible for delivering products to consumers.

    According to a report by UBS, Amazon is likely to snare only 2 per cent of retail sales within five years of entering Australia, growing revenues from more than $400 million to about $3.5 billion by 2023 and crimping retailers' sales about 2 per cent.

    However, Amazon will have a material impact on retailer profits by prompting more consumers to shop online, where margins are thinner, by driving retail prices down and by forcing retailers to invest heavily in e-commerce infrastructure that may take years to deliver returns.

     

    http://www.afr.com/business/retail/amazon-invests-700m-for-long-term-success-in-australia-20171113-gzkb44?eid=Email:nnn-16OMN00049-ret_newsl-membereng:nnn-06%2F09%2F2016-BeforeTheBell-dom-business-nnn-afr-u&et_cid=29104124&et_rid=1926129886&Channel=Email&EmailTypeCode=&LinkName=http%3a%2f%2fwww.afr.com%2fbusiness%2fretail%2famazon-invests-700m-for-long-term-success-in-australia-20171113-gzkb44%3feid%3dEmail%3annn-16OMN00049-ret_newsl-membereng%3annn-06%252F09%252F2016-BeforeTheBell-dom-business-nnn-afr-u&Email_name=BTB-11-14&Day_Sent=14112017

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  • 14.11.2017

    ARA: Christmas spend to top $50 billion

    Aussie consumers will spend over $50 billion during the upcoming Christmas trading period from November 15 to December 24, according to the annual pre-Christmas sales predictions from The Australian Retailers Association (ARA) and Roy Morgan Research. ARA and Roy Morgan have tipped Australian consumers to spend 2.8 per cent more on Christmas this year, compared to 2016. The figure is in contract to...Read More

    Aussie consumers will spend over $50 billion during the upcoming Christmas trading period from November 15 to December 24, according to the annual pre-Christmas sales predictions from The Australian Retailers Association (ARA) and Roy Morgan Research.

    ARA and Roy Morgan have tipped Australian consumers to spend 2.8 per cent more on Christmas this year, compared to 2016. The figure is in contract to last week’s prediction by the National Retailers Association who said spending will hit $48 billion.

    “While the latest retail trade figures have shown a considerable decline, our combined Christmas sales forecast with Roy Morgan demonstrate that Christmas sales will be a little bit better than recent figures,” said Russell Zimmerman, ARA executive director,

    “Unfortunately this estimate is still well below the 4-5 per cent growth that retailers would like to see this Christmas,” Zimmerman said.

    “As online retailing continues to grow, we predict online gift purchases to increase by 3.96 per cent, and expect Australian shoppers to purchase most of their gifts online this year.”

    Food and liquor retailers will also see a substantial trade this Christmas with the ARA and Roy Morgan predicting a 3.27 per cent increase from 2016 sales.

    Restaurant and cafe retailers are also tipped to see an increase in sales this year as the hospitality category is expected to grow by a modest 2.89 per cent.

    “Although we have seen retail sales slowly decline across all categories, we believe Christmas will see this year’s trade improve for many Australian retailers,” Zimmerman said.

    “There may have been a lot of change throughout the industry this year, but one thing is for sure, and that’s the fact that Australian’s love Christmas, as Christmas is the season of giving.”

     

    https://www.insideretail.com.au/blog/2017/11/14/ara-christmas-spend-to-top-50-billion/

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  • 14.11.2017

    At just 28, Michelle Aznavorian is a name to know

    Misha Collection creative director Michelle Aznavorian has been awarded a top honour from international financial firm Ernst & Young. She has taken first place in its prestigious Entrepreneur Of The Year Awards in the Emerging Category. She was crowned winner of the National Finals at Melbourne’s Crown Palladium in front of more than 300 attendees. At just 28 years old, Aznavorian was the youngest nominee in the category and the only commercial fashi...Read More

    Misha Collection creative director Michelle Aznavorian has been awarded a top honour from international financial firm Ernst & Young.

    She has taken first place in its prestigious Entrepreneur Of The Year Awards in the Emerging Category.

    She was crowned winner of the National Finals at Melbourne’s Crown Palladium in front of more than 300 attendees.

    At just 28 years old, Aznavorian was the youngest nominee in the category and the only commercial fashion label nominated for the award.

    In her acceptance speech, she thanked Ernst & Young for their recognition of her passion and dedication to Misha Collection over the past four years.

    She has taken the label from an online clothing store run out of her parent’s garage to a celebrity favourite, multi-million-dollar business with its sights set on global domination.

    Aznavorian was assessed by an independent panel of judges, who are captains of industry, leaders in their professions and academia, and previous Entrepreneur Of The Year winners.

    “Michelle is succeeding in a mature and highly competitive industry. She has strong business acumen, real sense of design trends and an in-depth understanding of her target markets, as shown through her leveraging of social media,” the judges said.

    Aznavorian said she was humbled by the win.

    “I am absolutely blown away by this award. Last night was one of my proudest moments as a business owner.”

    Her brand has over 80 stockists worldwide, such as Myer, Saks, Selfridges, ASOS and Shopbop.

     

    http://www.ragtrader.com.au/news/at-just-28-michelle-aznavorian-is-a-name-to-know?utm_medium=email&utm_campaign=Newsletter%20-%20141117&utm_content=Newsletter%20-%20141117+CID_008a1f7794b95ec93be4414d7dfdf77c&utm_source=Email%20marketing%20software&utm_term=At%20just%2028%20Michelle%20Aznavorian%20is%20a%20name%20to%20know

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  • 13.11.2017

    Aptamil and Bio Island win at Alibaba's $25 billion Singles Day

    New Zealand-made Aptamil is the new Chinese darling of milk powder after reaching the top five most traded products on China's biggest shopping day, e-commerce behemoth Alibaba Singles Day on Saturday. The annual shopping bonanza, China's version of Black Friday, broke its own sales record by snaring $US25.3 billion, 39 per cent higher than last year. Australia's vitamin brand Bio Island also joined Aptamil in the top five most purchased products by Chinese buyers. The ot...Read More

    New Zealand-made Aptamil is the new Chinese darling of milk powder after reaching the top five most traded products on China's biggest shopping day, e-commerce behemoth Alibaba Singles Day on Saturday.

    The annual shopping bonanza, China's version of Black Friday, broke its own sales record by snaring $US25.3 billion, 39 per cent higher than last year.

    Australia's vitamin brand Bio Island also joined Aptamil in the top five most purchased products by Chinese buyers.

    The others were Swisse vitamins and Japanese nappy brands Kao Merries and Moony.

    In the first hour, more than 60 brands generated more than $US15 million in sales including Apple, Estee Lauder, Gap, L'Oreal, Nike, Samsung, Uniqlo and Zara.

     

    Australia also rose up the ranks as the third-biggest selling country, although final sales value has not been released. It was in fourth place last year.

    The biggest selling country was Japan followed by the US, whereas South Korea and Germany ranked just below Australia.

    Up to 325,000 orders were processed online in the first hour of trade, which kicked off at midnight Saturday in China, with 90 per cent of transactions occurring through Alibaba's payment portal, Alipay.

    Often used as the barometer of China's e-commerce sector, Singles Day or 11/11, which resembles "bare branches", is a counter-cultural antidote to the sentimentality of Valentine's Day.

    Chemist Warehouse

    Australian pharmacy Chemist Warehouse was once again one of the most-loved Australian retailers, breaking its own record last year of $17 million seven hours after trading started, chief executive Damien Gance said. Final numbers have not been released.

    "We are happy with our Singles Day results. We exceeded last year, and enjoyed solid growth. Singles Day and China online retail remains a logistical challenge but one we are learning to manage," he said.

    Popular brands that sold on Chemist Warehouse's Tmall platform on Alibaba include Swisse, Bio Island, Cenovis, Ostelin, Goat and Lifespace, Mr Gance said.

    Piggybacking on Singles Day, Chemist Warehouse also rolled out 11 per cent website discounts locally in Australia.

    Interestingly, local Chinese-backed businesses, particularly residential developers, have also jumped on the bandwagon to flog off new off-the-plan apartments. New apartment sales have slowed locally on the back of slowing investor buying, forcing developers to apply occasional discounts.

    A wooden floor with your milk powder?

    Aoyuan offered a 5 per cent deposit special on Chinese social media WeChat as well as a free "wooden floor" upgrade for its Burwood, Gordon and Turramurra projects in Sydney.

      

    Yarra Valley's Rochford Winery represented Oceania during Singles Day celebrations in China. Since adopting Alipay as a payment processor, the winery's sales have soared 12 per cent.

    Despite the large numbers, there have been concerns about how Alibaba reports its Singles Day numbers with articles about fake sales and phoney discounts.

    Last year, even the official Xinhua news agency warned about the "hidden tricks" of Singles Day, while news website Sina ran an article showing just 40 per cent of 70 survey products were actually cheaper.

    This year, economists were concerned about China's sharp consumer borrowing on Singles Day.

    Alipay's own consumer finance service Huabei – whose name means "just spend" – have been offering Singles Day credit limit extensions.

    JD Finance, the lending arm of Alibaba rival JD.com, offered shoppers the opportunity to enter into a draw with 1111 chances to win prizes ranging from "red packets" of cash to having their shopping bills paid by the firm.

    http://www.afr.com/business/retail/aptamil-and-bio-island-win-at-alibabas-25-billion-singles-day-20171112-gzjj7b

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  • 13.11.2017

    Mon Purse pledges $10,000 from sales

    Handbag label Mon Purse will give away $10,000 from bag sales this Christmas as part of its latest charity partnership with the McGrath Foundation. All small, classic and large pouches sold across Australia (both online and in-store) will be part of the initiative, with $5 from every piece sold going directly to the foundation. The campaign will end on January 31, with Mon Purse pledging to make up any remaining funds. Mon Purse f...Read More

    Handbag label Mon Purse will give away $10,000 from bag sales this Christmas as part of its latest charity partnership with the McGrath Foundation.

    All small, classic and large pouches sold across Australia (both online and in-store) will be part of the initiative, with $5 from every piece sold going directly to the foundation.

    The campaign will end on January 31, with Mon Purse pledging to make up any remaining funds.

    Mon Purse founder Lana Hopkins said the ongoing work the foundation does in the fight against breast cancer was extremely important to the brand.

    “Breast cancer is the most common cancer affecting women in Australia with around 17,000 women being diagnosed every year.

    "It’s important to Mon Purse and the values we hold within the company to make a contribution to our community. We’re proud to be able to donate $5 from every pouch sold over the Christmas period online or in any of our stores to the McGrath Foundation.

    "Together with our customers we'll be making a minimum donation of $10,000 in January 2018 to the McGrath Foundation and we hope this is the beginning of a long partnership together."

    http://www.ragtrader.com.au/news/mon-purse-pledges-10-000-from-sales?utm_medium=email&utm_campaign=Newsletter%20-%20131117&utm_content=Newsletter%20-%20131117+CID_6b146b5515675354ea66998b8df95001&utm_source=Email%20marketing%20software&utm_term=Mon%20Purse%20pledges%2010000%20from%20sales

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  • 09.11.2017

    Sydney jobs boom puts pressure on transport and house prices

    Sydney has added nearly half a million jobs in the past decade but patterns of employment growth are putting the city's transport system under pressure and helping to drive up property prices. A yawning employment gap between city and country has also been revealed by analysis of the latest census data by the consultancy SGS Economics and Planning. This urban-rural jobs divide looms as a las...Read More

    Sydney has added nearly half a million jobs in the past decade but patterns of employment growth are putting the city's transport system under pressure and helping to drive up property prices.

    A yawning employment gap between city and country has also been revealed by analysis of the latest census data by the consultancy SGS Economics and Planning.

    This urban-rural jobs divide looms as a lasting economic challenge for the state.

    The report reveals Sydney's inner suburbs have accounted for a disproportionate share of employment growth.

    The proportion of the city's jobs in the "inner Sydney" statistical area, which includes the cental business district and its immediate surrounds, swelled from 20.6 per cent to 22.4 per cent between 2006 and 2016. That relatively small urban region alone added nearly 140,000 jobs in that period.

    While the increasing concentration of employment in Sydney's key jobs hub has generated economic benefits, it is also placing strain on the transport network.

    As more people choose to live close to high quality employment opportunities, demand for housing in inner city locations increases placing pressure on property prices and housing affordability.

    "Policy needs to respond to these challenges, such as through improving public transport capacity and infrastructure, or through increasing housing supply in inner areas," the report said.

    It also drew attention to a growing employment divide between city and country.

    While Sydney added 342,000 jobs between 2011 and 2016 the census figures showed employment in the remainder of NSW fell by 17,000 in that period.

    The report's author, economist Terry Rawnsley, said the economic gulf between Sydney and other parts of NSW was a growing policy problem.

    "The challenge for NSW is to connect the vibrant Sydney economy with the state's regional centres so you can help spread jobs growth," he said.

    High-speed intercity public transport would help.

    "If you could move people more quickly from places like Wollongong, Newcastle and Gosford into Sydney that would give people more access to jobs," Mr Rawnsley said.

    Nationally, the census showed over 900,000 jobs were created in five state capitals – Sydney, Melbourne, Brisbane, Adelaide and Perth – between 2011 and 2016. But the rest of Australia saw a net increase of only 5400 jobs in that period.

    "These numbers just reinforce the weakness in the jobs market across many regional areas, while the big cities, in particular Sydney and Melbourne, are booming," Mr Rawnsley said.

    Total employment in Greater Sydney reached 2.2 million by 2016.

    The construction industry contributed the biggest share of Greater Sydney's employment growth 2011 and 2016 (20 per cent) closely follow by health care and social assistance (up 19 per cent). Growth in knowledge industries jobs, especially professionals and financial services workers, was also robust especially in and around the CBD.

    In regional NSW solid employment growth in the heath and social assistance (+15,820), construction (+6963) and education (+4525) between 2011 and 2016 was more than offset by big falls in manufacturing (-29,892), wholesaling (11,097), and retail trade (14,671).

    When The Herald sought the state government's response to the gloomy census employment figures in regional NSW a spokeswoman for the Treasurer, Dominic Perrottet, cited alternative jobs data from the Bureau of Statistics' labour force survey which shows "more than 90,000 jobs" were added in the state's regional areas between September 2011 and September this year.

    "Regional NSW is a jobs powerhouse," the spokesperson said.

    But in a sign of concern about the economic performance in regional areas, the NSW Legislative Council's Standing Committee on Sate Development recently launched an inquiry into how Sydney's economic success can contribute more to the regions.

    A Labor member of the committee, John Graham, said the new census employment figures tell the economic story behind big swings against the government in a series of recent by-elections in regional NSW.

    "Voters outside of a growing, global Sydney feel like they are being left behind," he said.

    The strongest employment growth in regional areas was in the health and education sectors where many jobs require a relatively high level of educational attainment.

    The biggest losses were in manufacturing, wholesale trade and retail trade where required skill levels are often lower.

    Nationally, almost a quarter of new jobs added between 2011 and 2016 were in health care and social assistance assistance (153,900) making it the strongest contributor to employment growth across Australia in that period, including in most capital cities.

    The effects of population ageing were evident with more than 30,000 new jobs coming in residential care which includes nursing homes. There was also strong employment growth in the education and training sector.

     

    http://www.smh.com.au/business/the-economy/sydney-jobs-boom-puts-pressure-on-transport-and-house-prices-20171108-gzhitj.html?promote_channel=edmail&mbnr=MTA2OTg1MTg&eid=email:nnn-13omn660-ret_newsl-membereng:nnn-04%2F11%2F2013-business_news_am-dom-business-nnn-smh-u&campaign_code=13IBU022&et_bid=29103400&list_name=2031_smh_busnews_am&instance=2017-11-08--20-23--UTC

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  • 08.11.2017

    Hobbs sale is a bright spot on gloomy high street

    The sale of Hobbs to Phase Eight and Whistles owner TFG London provides a glimmer of light on an otherwise gloomy high street in the run-up to Christmas. Hobbs has turned a corner under Meg Lustman, who was appointed as chief executive in 2014 and tasked with improving its fortunes. Earlier that ...Read More

    The sale of Hobbs to Phase Eight and Whistles owner TFG London provides a glimmer of light on an otherwise gloomy high street in the run-up to Christmas.

    Hobbs has turned a corner under Meg Lustman, who was appointed as chief executive in 2014 and tasked with improving its fortunes. Earlier that year, former owner private equity firm 3i had been forced to write down the value of its investment in Hobbs by 40% following a period of poor trading.

    Lustman joined with more than 20 years of experience under her belt, including almost a decade as chief strategy officer for Mosaic Fashions (which later became Aurora), three years as managing director of Warehouse and a fixed-term stint as fashion buying director at John Lewis.

    She instigated a two-year turnaround programme at Hobbs, during which it shut some stores, streamlined its head office, improved its product and explored international expansion. It seems to have worked – last month, Hobbs posted a rise in sales and gross profit for the year to 28 January 2017. This is particularly notable given the tough climate for mainstream womenswear brands, as evidenced by the troubles of Jaeger, Jacques Vert Group and Basler.

    Before, Hobbs didn’t fully understand who its customer was, or what she was buying – now, it is making much better use of data to track the customer journey. It knows to focus on workwear, coats, footwear and good-quality casualwear with a touch of personality, rather than overtly trend-led items.

    Hobbs fits neatly into the TFG London portfolio. Since the start of 2015, the UK arm of South African retailer The Foschini Group has acquired occasionwear-focused Phase Eight, contemporary women’s and men’s wear retailer Whistles, and womenswear brand Damsel in a Dress. Hobbs sits comfortably alongside them as a well-known British retailer that specialises in classic womenswear.

    As Black Friday approaches, the mood on the high street is fairly glum. Non-food retail sales slumped in October, consumer confidence remains low, and even Next, which for so long bucked the trend of falling high street sales, has issued a worrying warning that its fourth-quarter performance is likely to disappoint. Meanwhile, over the past week Drapers has learned of looming redundancies at Arcadia Group and Mothercare.

    But for Hobbs at least, the future is looking rosier. TFG London appears willing to invest in UK high street retailers, and with its backing Hobbs will be able to pursue its international ambitions. TFG’s decision to welcome Hobbs into the fold should add a tailwind to Lustman’s turnaround.

     

    https://www.drapersonline.com/7027340.article?blocktitle=Comment&contentID=19577&mkt_tok=eyJpIjoiWVRrNVlUUm1aalEyWW1ZMCIsInQiOiIxZnBiMWIrZVJnV2JHOUtldzdMSlZjelpiS2oxKzNXSGhNSUJ6bURPcVRFVnkrYmRYOENLeXdxVnc3SUtcL3pBN3NGR3hZQlAwNE1ITlIwUHduekN0eUNXWEFNRzB6RVZreG4yMkV1MFwvSjdLTGNjV3dpVkJGUnFUZnp5UlJcL0U5QyJ9

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  • 08.11.2017

    Myer gets up close and personal

    Myer has unveiled a raft of new experiences across its stores recently, from the magical Santaland to a personal shopping service and several new beauty services, including in-store barbers and blowdry bars. “At Myer, customers can find all the brands they love in one convenient location. But increasingly, customers are looking for an experience – something that creates future memories and makes them want to come back in store again and again,” said...Read More

    Myer has unveiled a raft of new experiences across its stores recently, from the magical Santaland to a personal shopping service and several new beauty services, including in-store barbers and blowdry bars.

    “At Myer, customers can find all the brands they love in one convenient location. But increasingly, customers are looking for an experience – something that creates future memories and makes them want to come back in store again and again,” said Loucinda McCorry, general manager of Myer Melbourne.

    Launching in all five Myer flagship stores this week, Santaland features the Santaland Express, a life-sized old-school train carriage that whisks shoppers away on a virtual journey from Myer Central Station to Santaland.

    From there, customers can visit the Clauses’ residence for photos with Santa as well as Santa’s workshop, which will host a range of experiences including a Nerf toy testing area, Lego imagination centre, Santa’s crayola mailroom, a snow gaming zone and personalised Christmas photo wall.

    “We were inspired by the opportunity to bring the things we loved about the traditions of celebrating Christmas as children and pair that with the incredible innovations we experience through technology today,” said Danny Lattouf, head of retail at Y&R ANZ, who collaborated with Myer on the project.

    “Our aim was to create the ultimate Christmas adventure. A place where childhood Christmas never ends.”

    A curated shopping experience

    Myer’s glamorous personal shopping service has also relaunched as a complimentary offer to customers in a dedicated space featuring luxurious private suites.

    “The personal shopping service is accessible to all customers. Whether it’s the convenience of having your Christmas shopping co-ordinated for you, updating your summer wardrobe, or finding a perfect outfit for an upcoming event, Myer’s personal shoppers are able to curate and style for all customers,” McCorry told Inside Retail.

     

    “Myer’s personal shoppers carefully curate a shopping experience that is unique to each individual. From the pre-appointment consultation, to the appointment in our luxury suites, through to the personalised follow-up, our personal shoppers can make everyday shopping an extraordinary experience.”

    The new suites feature bespoke screening and flexible gathering spaces for both individual and group appointments, while the chic private rooms feature plush fabrics, integrated materials, lighting and bespoke interiors, creating a luxe and comfortable environment. Customers can book their appointments online.

    Lattouf believes the service offers a more human, personalised layer to the physical shopping experience, in comparison to online shopping.

    “It brings a whole collection of things together to make it better, more personal and more human all whilst being incredibly convenient,” he explained. 

    “If I need a new pair of jeans or an entire outfit for the races, I don’t have to cycle websites (and several returns), I don’t have to work my way through 4000m2 of brands on a shop floor – I simply book a time convenient for me, brief a personal shopper on my needs, turn up and get spoilt for (highly curated) choice by a specialist.”

    The personal shopping service is available at Myer stores in Sydney City, Melbourne City, Doncaster, Highpoint, Macquarie, Chatswood and Warringah.

    https://www.insideretail.com.au/blog/2017/11/08/myer-gets-up-close-and-personal/

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  • 08.11.2017

    Lanvin in Financial Trouble, Sales Expected to Slump 30 Percent

    Auditors for the fashion house have filed a warning with a commercial court in Paris over its financial situation, say sources. PARIS, France — Auditors for Lanvin, France's oldest fashion house, have filed a warning with a commercial court in Paris over financial troubles at the label as it struggles to stem slumping sales, two sources familiar with the company's performance said. The privately owned label, founded in 1889 and long...Read More

    Auditors for the fashion house have filed a warning with a commercial court in Paris over its financial situation, say sources.

    PARIS, France — Auditors for Lanvin, France's oldest fashion house, have filed a warning with a commercial court in Paris over financial troubles at the label as it struggles to stem slumping sales, two sources familiar with the company's performance said.

    The privately owned label, founded in 1889 and long synonymous with Parisian chic, does not publish its earnings. However, the sources said the company's provisional forecast for the year shows sales will fall 30 percent in 2017 after a 23 percent drop last year.

    Under French company law auditors have to inform managers and file court warnings when a firm's operations risk being compromised by its financial situation.

    Lanvin and the auditor did not respond to emailed requests for comment.

    Lanvin has had trouble inspiring buyers since it stunned the fashion industry two years ago by firing star designer Alber Elbaz. The label has changed artistic director twice since then.

    "The auditor has now alerted the Paris commercial court over the company's very worrying situation," one of the sources said.

    The sources said Lanvin needed an injection of cash to buy some breathing space or it may not be able to pay employees' salaries in January.

    However, they added that a recapitalisation originally discussed for September may yet happen by the end of the year.

    The company is majority held by Chinese-born businesswoman Shaw-Lan Wang. It made an €18.3 million loss in 2016, sources with knowledge of the situation had previously told Reuters. They forecast that losses were set to deepen to at least 27 million euros in 2017.

    Struggling for Orders

    Lanvin's financial struggles come as rivals including France's Louis Vuitton, part of LVMH, and Italy's Gucci, owned by Kering, enjoy a sales bounce driven by resurgent demand from China.

    New artistic chief Olivier Lapidus — who has designed menswear for Balmain as well as wedding dresses and furniture — has yet to make his mark. Industry analysts acknowledge brand reinventions can take several seasons before translating into an earnings boost.

    Lanvin unveiled its latest collection in September. Orders at the showroom, where designs are presented to department store buyers, were down about 50 percent on the previous year, a third source familiar with the matter said.

    Lapidus's collection — a sober array of skimpy mini-dresses, many in black or imprinted with an assortment of letters evoking the Lanvin brand — was put together in 42 days after his appointment in July.

    "The buyers are struggling to figure out Lanvin and were thrown by the sudden appearance of the logo on the clothes," the third source added.

     

    More ostentatious branding has worked well for other labels in recent years, including Christian Dior, although it was traditionally not an approach taken by Lanvin.

    Lapidus's predecessor, Bouchra Jarrar, had brought in a more tailored style — a shift from Elbaz's more exuberant, frilly designs — that also failed to reignite sales.

    Lanvin has been closing unprofitable stores and cutting advertising spending to control costs. Named after founding French couturière Jeanne Lanvin, the label employed some 300 staff at the end of 2016.

    Wang, a media magnate based in Taiwan, owns 75 percent of Lanvin, with the remainder held by Swiss businessman Ralph Bartel, who stepped down from the firm's board in July.

    Bartel has previously offered to inject extra capital into the label in exchange for majority control.

    Lanvin has shaken up its management in recent months with a series of board changes, including the appointment of Nicolas Druz, who was a close advisor to Wang and has just been appointed deputy managing director.

     

    https://www.businessoffashion.com/articles/news-analysis/report-lanvin-financial-trouble-sales-slump-30-percent?utm_source=Subscribers&utm_campaign=4e909a28b2-what-s-selling-in-trumpland-lanvin-s-financial-tro&utm_medium=email&utm_term=0_d2191372b3-4e909a28b2-417078017

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  • 08.11.2017

    This $390 million a year business is coming to Australia

    eCommerce business Shopback has secured $32 million in its latest funding round, as it prepares to take on Australia. Shopback will launch into the market in the first half of 2018. ShopBack is an online loyalty platform that allows consumers to take a percentage of their Cashback when they buy products through the platform. It also provides discount coupons and voucher codes for online shopping. It is currently ...Read More

    eCommerce business Shopback has secured $32 million in its latest funding round, as it prepares to take on Australia.

    Shopback will launch into the market in the first half of 2018.

    ShopBack is an online loyalty platform that allows consumers to take a percentage of their Cashback when they buy products through the platform.

    It also provides discount coupons and voucher codes for online shopping.

    It is currently affiliated with over 1,300 merchants globally and provides marketing solutions for these partners across the online retail, travel and lifestyle segments.

    ShopBack processes close to 1,000 orders per hour, with an annualised sales figure of over AU$390 million.

    Since its inception in 2014, over three and a half million consumers across six countries in South-East Asia have signed up to the platform.

    ShopBack regional expansion head Josephine Chow said the business model allows for significant growth in online shopping across South-East Asia.

    “While our online loyalty platform remains the same across countries, we will use specific marketing and product strategies to address the needs of Australian consumers.”

    The latest funding round for ShopBack was around AU$32 million, with Blue Sky Venture Capital among key investors.

     

    http://www.ragtrader.com.au/news/this-390-million-a-year-business-is-coming-to-australia?utm_medium=email&utm_campaign=Newsletter%20-%2081117&utm_content=Newsletter%20-%2081117+CID_6c615d74955fbc1e1f668cf4f491b48b&utm_source=Email%20marketing%20software&utm_term=This%20390%20million%20a%20year%20business%20is%20coming%20to%20Australia

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  • 07.11.2017

    Hard Luxury Awakening to E-Commerce Opportunity

    Many high-end watches and jewellery brands are still hesitant to sell online, but that’s slowly starting to change.   LONDON, United Kingdom — Even as luxury fashion’s last e-commerce holdouts, like Chanel and Céline, say they will start to sell core products online, some high-end watches and jewellery brands still believe consumers won’t spend on “hard luxury” items they can’t touc...Read More

    Many high-end watches and jewellery brands are still hesitant to sell online, but that’s slowly starting to change.

     

    LONDON, United Kingdom — Even as luxury fashion’s last e-commerce holdouts, like Chanel and Céline, say they will start to sell core products online, some high-end watches and jewellery brands still believe consumers won’t spend on “hard luxury” items they can’t touch and feel.

    But e-commerce is one of the few growth opportunities in a stagnant luxury market and there are signs that attitudes are shifting.

    “It is currently one of the big topics for hard luxury. We talk about 9 percent of luxury good sales are online, but for hard luxury its 4 or 4.5 percent and that includes jewellery, which is much bigger than watches,” said Rene Weber, a watch industry analyst at Swiss bank Vontobel. “If we talk about real high-end watches online, it is almost non-existent. A lot of people started last year — the first brands seen on Net-a-Porter and their own websites, but it’s really just a starting point.”

    Some luxury watch brands still view e-commerce as the home of counterfeit goods and unauthorised “grey market” sellers, who buy stock that authorised dealers can’t shift and sell at a discount.

    Hard luxury brands, particularly in watches, are also heavily reliant on wholesale and have relatively small direct-to-consumer businesses, despite the advantages of higher margins and greater control over customer experience. British watchmaker Bremont was the first luxury watch brand to sell on Yoox Net-a-Porter’s men’s site Mr Porter back in 2013. But the watchmaker has just four of its own boutiques versus 185 authorised dealers.

    “The thought of cutting those [wholesale] guys out is a big call to make. We feel our retailers are doing a very good job and I don’t want to be competing with those retailers [online] to some extent,” said Bremont co-founder Giles English. “But ultimately there comes a point where you want to give the client what he wants and if they want to buy direct from you online, you should offer it and I think a lot of brands will slowly go that way. But the big ones, we’re all waiting to see which way it goes.”

    High-end service has been key to luring big brands to online retailers.

    Indeed, some of the best-known brands in the watch industry, like Rolex, have a wide wholesale network and still do not sell online. Others are coming around, like IWC Schaffhausen, the luxury Swiss watchmaker owned by the luxury conglomerate Richemont, which launched on Net-a-Porter and Mr Porter last November but still doesn’t operate its own direct e-commerce business. Richemont, Yoox Net-a-Porter’s biggest investor, is testing e-commerce on Net-a-Porter and Mr Porter with many of its brands, including watchmaker Panerai and fine jeweller Piaget.

    “We have had great interest so far, with very promising sales,” Panerai chief executive Angelo Bonati said of its first-ever online offering: 25 timepieces for sale on Mr Porter. “The evolution of the international market in the digital segment is facing a new era where qualitative e-commerce platforms are growing fast and building their own reputation.”

    High-end service has been key to luring big brands to online retailers like Yoox Net-a-Porter (YNAP) and China’s JD.com. YNAP has made no secret of its intention to tap hard luxury with a target of €100 million (about $116 million) of jewellery and watch revenues by 2020. The appeal for brands lies in the company’s high-net-worth clients — just 2 percent of customers account for 40 percent of revenues — as well as the white-glove services like express delivery and personal shoppers that its sites offer.

    Earlier this year, luxury jeweller Chopard opened its first e-commerce offering in China on JD.com, which employs suited couriers driving electric cars to deliver purchases within hours. The move will “let the young clients who love online shopping know more about Chopard,” said Tasso von Berlepsch, general manager of Chopard China.

    By contrast, jewellery brands have been quicker to embrace digital sales and have prioritised their own websites. Cartier launched e-commerce in the US in 2010; Chopard followed in 2012; while Tiffany has been online since 2000, though the American jeweller’s online revenues have stagnated at 6 percent of net sales for the last three years.

    “While we find that more and more of our clients begin their journey online, most ultimately make their way in store for the luxury experience and guidance of a knowledgeable sales professional,” said Philippe Galtié, senior vice president of global sales at Tiffany.

    Jewellery brands have been quicker to embrace digital sales and have prioritised their own websites.

    Even among American millennials, who frequently shop online, department stores are the most favoured channel for buying diamond jewellery, followed by independents, specialised multi-brand chains and then e-commerce, according to consultancy Bain & Company. “Diamond jewellery is still a very emotional purchase, it requires personal touch points and a story behind it,” said Olya Linde, a partner at Bain.

    E-commerce has typically been popular for lower-priced products, but analysts say that’s shifting. British jeweller Boodles says five years ago the average price point online was about £1,000, while today it is £3,000. Yet the offline experience remains critical. “The excitement about a getting a real customer in a shop and our staff getting to know them will always win over e-commerce because it becomes a real relationship,” said James Amos, marketing director of Boodles, which does about £70 million in annual sales. Just over 1 percent of this come from e-commerce, thought Amos predicted this number could hit 2 or 3 percent.

    While not all brands are embracing e-commerce with vigour, many are starting to show prices online and which store holds their stock, as well as engaging people with live chat-based customer service representatives and social media. The highest end of the watches and jewellery market may never move online, but e-commerce could reach 20 percent of total hard luxury sales by 2025, said Vontobel Bank’s Weber.

    “It is still the case if you want to buy a 100,000 Swiss franc watch you probably will not buy it online, but we will see more prices directly on the internet and we will see more [transactional] websites available. We’re slowly seeing a change in the industry.”

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  • 07.11.2017

    Food helping, says Starbucks Corporation boss

    Food and digital innovation are helping attract customers into stores, says Starbucks Corporation CEO/president Kevin Johnson. He was commenting on the coffee giant’s growth during its fourth quarter and fiscal year ending October 1. For the quarter, net revenues for the China/Asia Pacific segment grew 2 per cent to US$859.9 million. Excluding $56.9 million for an extra week last year’s fourth quarter, net revenues grew 10 per cent, primarily driven by incremental re...Read More

    Food and digital innovation are helping attract customers into stores, says Starbucks Corporation CEO/president Kevin Johnson.

    He was commenting on the coffee giant’s growth during its fourth quarter and fiscal year ending October 1.

    For the quarter, net revenues for the China/Asia Pacific segment grew 2 per cent to US$859.9 million. Excluding $56.9 million for an extra week last year’s fourth quarter, net revenues grew 10 per cent, primarily driven by incremental revenues from 1036 store openings over the past 12 months and a 2 per cent growth in comparable store sales. The increase was partially offset by unfavourable foreign currency translation.

    China comparative-store sales increased 8 per cent, driven by a 7 per cent increase in transactions.

    Overall four-quarter operating income grew 5 per cent to $201.7 million, while the operating margin expanded 60 points to 23.5 per cent, primarily driven by higher income from joint ventures, and partially offset by the lapping of the 53rd week in fourth quarter.

    Consolidated net revenues were steady for the quarter at $5.7 billion, excluding $412.4 million for the extra week. Consolidated net revenues grew 8 per cent.

    GAAP operating income of $1 billion declined 16.7 per cent while non-GAAP operating income grew 2.8 per cent to $1.1 billion. GAAP operating margin of 17.9 per cent declined 360 points while the non-GAAP decline was 20 per cent, down 90 points.

    The increased operating loss was primarily because of restructuring and impairment costs related to the company’s strategy to close Teavana tea retail stores and focus on the brand within Starbucks stores.

    Global comparable store sales increased 2 per cent, driven by a 2 per cent increase in average ticket and a 1 per cent increase in transactions; but up 3 per cent excluding the impact from Hurricanes Harvey and Irma. The impact from the hurricanes affected consolidated and US comparative store growth by 1 per cent as more than 1000 stores were temporarily closed.

     

    Revenue growth

    For the year, global comparable-store sales increased 3 per cent while consolidated net revenues grew 5 per cent to $22.4 billion. Excluding $412.4 million for the extra week in the fourth quarter last year, consolidated net revenues grew 7 per cent year-on-year.

    GAAP operating income of $4.1 billion declined 0.9 per cent compared while non-GAAP operating income grew 7.8 per cent to $4.4 billion.GAAP operating margin of 18.5 per cent declined 110 points, but was up 10 points to 19.7 per cent non-GAAP.

    Starbucks opened 603 stores globally, taking its total to 27,339 across 75 countries.

    Johnson says system improvements are enabling the company to drive increased throughput, particularly in its busiest stores at peak times.

    In September, the company announced it had entered into an agreement with long-time strategic partner Maxim’s Caterers in Asia to fully licence Starbucks business in Singapore, including transitioning the more than 130 company-run Starbucks stores. The partnership started in Hong Kong in 2000, and together they run more than 210 outlets across Cambodia, Hong Kong, Macau and Vietnam.

     

    https://www.insideretail.com.au/blog/2017/11/07/food-helping-says-starbucks-corporation-boss/

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  • 07.11.2017

    Outstanding quarter for Alibaba sales

    In an “outstanding quarter” to September 30, Alibaba sales have grown 61 per cent to US$8.3 billion. That’s the tech and e-commerce giant’s strongest quarterly performance since its IPO and a result the company says reflects the strength of the business beyond its core activities. “We had an outstanding quarter,” said CEO Daniel Zhang. “Our consumer insights and technology innovation were the key drivers behind our customer value proposi...Read More

    In an “outstanding quarter” to September 30, Alibaba sales have grown 61 per cent to US$8.3 billion.

    That’s the tech and e-commerce giant’s strongest quarterly performance since its IPO and a result the company says reflects the strength of the business beyond its core activities.

    “We had an outstanding quarter,” said CEO Daniel Zhang. “Our consumer insights and technology innovation were the key drivers behind our customer value proposition across the Alibaba economy.

    “We are seeing the early results from our efforts to integrate online and offline with our New Retail strategy, and consumers have benefited from access to high quality products, improved customer experience and the tremendous convenience of shopping anytime, anywhere.”

    Maggie Wu, CFO, said the group generated about $3.4 billion in free cash flow during the quarter, “which enables us to invest in our future growth areas of core commerce, including logistics, cloud computing, digital entertainment and other innovation initiatives.”

    E-commerce remained the backbone of the business despite its rapidly growing diversification. Mobile monthly active users on China retail marketplaces reached 549 million in September, an increase of 20 million over June 2017. Annual active consumers on China retail marketplaces reached 488 million, up 22 million users from the 12 months to June 30.

    Cloud revenue grew 99 per cent year-on-year to $447 million, driven by robust growth in paying customers and an improving revenue mix of higher value-added services.

    Revenue from digital media and entertainment increased 33 per cent to $721 million and the daily average subscribers of Youku video increased by more than 180 per cent, attributed to a strategy of offering a mixture of licensed and original content.

     

    https://www.insideretail.com.au/blog/2017/11/07/outstanding-quarter-for-alibaba-sales/

     

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  • 07.11.2017

    PAS looks to e-commerce opportunities, Review gets new look

    Diversified fashion retailer PAS Group will explore listing on Amazon when it arrives in Australia, as the company looks to launch its Review brand on Alibaba’s T-mall platform over the coming year. In a year that has seen US firm Coliseum Capital increase its ownership interest in the company from 49 per cent to approximately 65 per cent, PAS Group has also battled a long list of macroeconomic factors that have weighed heavily on discretionary spending, leadin...Read More

    Diversified fashion retailer PAS Group will explore listing on Amazon when it arrives in Australia, as the company looks to launch its Review brand on Alibaba’s T-mall platform over the coming year.

    In a year that has seen US firm Coliseum Capital increase its ownership interest in the company from 49 per cent to approximately 65 per cent, PAS Group has also battled a long list of macroeconomic factors that have weighed heavily on discretionary spending, leading retailers across the sector to discount heavily for longer periods to remain competitive, and to aggressively manage stock positions.

    Despite the subdued retail environment, the company reported EBITDA from continuing operations of $18.8m at its recent AGM.

    Retail sales grew by 3.7 per cent while the group opened 16 new stores over and above 31 new stores opened in FY2016.

    Investments in its digital infrastructure and customer engagement resulted in online sales growing by 41 per cent over and above the 149 per cent growth achieved in FY2016. Online sales now represent over 12 per cent of retail sales.

    In its wholesale channel, the sports division in Designworks – which this year launched a centre of excellence that houses 105 graphic designers and designers – grew with strong performance in the Everlast boxing, footwear and fitness categories.

    There are also big plans for PAS’ extensive stable of brands including the development of a new Review website on a tier 1 web platform; a refresh of loyalty programs for Review, JETS and Black Pepper; plus the launch of Review into China with Alibaba and the launch of selected company brands on Amazon Marketplace. Review will also launch concessions in David Jones stores in a bid to diversify its customer base.

    Contrary to the fear spruiked by media on Amazon’s impact when it launches in Australia, PAS Group CEO Eric Morris said he views the US giant as a “great opportunity” with “very good operators…let’s get involved with it.”

    Drawing comparisons with local marketplaces already operating including The Iconic and its own dropships run through Myer, Morris said Amazon is an important far reaching marketplace opportunity. “We certainly will look at registering to get up another of our brands involved and I see that as a lot of good opportunities,” he told Inside Retail.

    Commenting on its launch of Review into Asia through Alibaba’s T-mall platform, Morris said there were several synergies with its value proposition and the Asian demographic.

    “We’ve always known that we’ve got quite a high Asian demographic in our loyalty base, and have a very loyal customer at Review – it’s about 75 per cent of our total sales of which we know the Asian demographic like our product,” he explained.

    Morris said it’s interesting to note “the amount of focus that the Australian media has on Amazon” while “not many people do talk about the “enormous size of Alibaba.”

    “We are starting to work on things like accepting Alipay in some of our stores which is part of the ecosystem…and starting to work on things like Wechat and Weibo [popular social media platforms in Asia]. “It’s something new for us but we’re excited about the opportunity there.”

    Review could potentially be followed by one of PAS’ swimwear brands, though the Morris cautioned the retailer thinks the venture is “going to take some time so I’m not expecting fabulous results in 6-12 months time – this is a process and if it makes sense for us to put some of our other brands on that we’ll look at that as well.”

    “The new stores, starting with Melbourne Central, are about truly reflecting the Review proposition and the amazing #reviewgirl customer, or dare I even call them a fan base,” explained Danny Lattouf, regional head of retail, Y&R ANZ who developed the concept for the new Review stores to Inside Retail.

    “A Review boutique or concession now embodies the spirit of the brand – it’s values and behaviours which are communicated via product and people,” he said. “This isn’t any different for what any retailer/brand should be doing, but for Review it’s essential because what is on offer here is a truly authentic proposition and one that should be celebrated. And with the #reviewgirl being so passionate about the brand, this space provides her with a better place to experience the exceptional product and service on offer.”

    “The most wonderful thing is that the current Review customer is an absolute fan of the brand. The fascinating thing about this is that they don’t know anything about the brand and its story, simply that they love the product and the service – herein lies the opportunity to tell that story and further connect with customers.”

    During the year PAS Grop also acquired Bondi Bather, a small swimwear business located in Sydney area to complement its JETS business. Morris commented the brand is well positioned and a “quintessential Bondi brand” that will offer room for expansion locally and internationally in the company’s swimwear division.

    Jessica Gomes has also been appointed as a brand ambassador for JETS, as PAS looks to leverage investment in its digital capabilities and a new store concept for the swimwear brand.

     

    https://www.insideretail.com.au/blog/2017/11/07/pas-looks-to-e-commerce-opportunities-review-gets-new-look/?year=2017&monthnum=11&day=07

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  • 06.11.2017

    Aussie sellers prepare for Amazon launch

    Among the over 500 sellers that have registered to sell through Amazon Marketplace in Australia are local online retailers Styletread and Costumes.com.au. In exclusive interviews with Internet Retailing, Lee Munro, managing director of Styletread, and Nathan Huppatz, co-founder of Costumes.com.au, revealed why they decided to partner with Amazon and how close they are to being ready for launch. They are some of the first Australian retailers to publicly confirm the...Read More

    Among the over 500 sellers that have registered to sell through Amazon Marketplace in Australia are local online retailers Styletread and Costumes.com.au.

    In exclusive interviews with Internet Retailing, Lee Munro, managing director of Styletread, and Nathan Huppatz, co-founder of Costumes.com.au, revealed why they decided to partner with Amazon and how close they are to being ready for launch.

    They are some of the first Australian retailers to publicly confirm their involvement with Amazon, although others, including Ruslan Kogan (Kogan.com) and Mark Coulter (Temple & Webster) have previously said they are willing to sell through Amazon in future.

    Others still have not confirmed but are reportedly gearing up to launch on Amazon in Australia, such as Beacon Lighting and PVH Brands Australia, the local licensee for Calvin Klein, Van Heusen and Tommy Hilfiger.

    Amazon remains tight-lipped about the progress of its Marketplace offering in Australia, with even registered sellers kept in the dark about the exact launch date, and those with access to the seller portal, Seller Central, urged not to disclose which categories are live.

    But sources told IR three weeks ago that the platform was rife with broken links and missing information, including which shipping options would be supported. And Amazon key account manager, Brittany Rinker, said in early October that the company was aiming for a late 2017, early 2018 launch.

    The million dollar question –  whether Amazon Marketplace will launch in time for Christmas – remains unclear. However, Munro and Huppatz both said they are still in the process of creating product listings.

    “We’re still in the early stages of registering on Seller Central. We’re in the process of creating product listings, but there’s still a way to go,” Munro said.

    Styletread is using the marketplace integrator Commerce Connect from Fusion Factory to automate the process of loading its large inventory on Amazon, but Munro said they are still working on connecting the integrator with Styletread’s fulfillment systems.

    This indicates the footwear retailer plans to self-fulfill its Amazon orders at launch, something that Huppatz and the other 500-plus sellers must also do, since Amazon has not said whether it’s signature warehousing and delivery service – Fulfillment by Amazon (FBA) – will be available in Australia.

    “Yes, we will be self-fulfilling. Amazon hasn’t announced any launch date or other details for FBA in Australia, but when they do we will investigate the opportunity,” Huppatz said.

    Costumes.com.au operates a 1,900sqm warehouse in Melbourne and uses Australia Post services for the majority of its outbound freight. But Huppatz is taking a “wait and see” approach to decide whether to use Amazon’s logistics, for which the e-commerce giant charges a fee. Depending on the product and category, it could be around 15 per cent of the sale.

    “It really depends on the pricing and processes required to use it. Initially, Amazon will not have the traffic and scale as other platforms in Australia so we also have to be mindful of any development and integration cost relative to the revenue that might generate. So I think like many businesses we will take it one step at a time,” he said.

     

    Huppatz said Costumes.com.au has only recently started to create product listings. Like Styletread, it is also using a third-party product that integrates with Amazon Australia.

    “It is still an ongoing process as there are some aspects of Seller Central that are still being tweaked prior to Marketplace launch. I think that whenever the marketplace launches we will be ready to transact,” he said.

    M2E Pro is one of those third-party products that helps businesses using the Magento e-commerce platform automatically upload and manage inventory on marketplaces, including Ebay and Amazon.

    Its software has been used by some 14,000 unique Amazon accounts around the world, and director Alex Podopryhora said it is currently helping more than 50 sellers list on Amazon in Australia.

    “Some of them are very well known brands – not only in Australia – some of them are less. We’re excited to see some New Zealand-based retailers to take part in this project too,” he said, declining to name any specifically.

    In addition, Podopryhora said hundreds of M2E Pro’s Ebay Australia users that have not yet been invited to sell through Marketplace, are updating their systems to become Amazon-ready.

     

    https://www.insideretail.com.au/blog/2017/11/03/aussie-sellers-prepare-for-amazon-launch/

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  • 06.11.2017

    JD Sports steps up Aussie expansion

    British sports chain JD Sports will opens its fifth Australian store at GPT’s Highpoint Shopping Centre in Melbourne next week. The retail chain, dubbed the ‘King of Trainers’ said the brand has experienced some of its largest opening days of trade globally within Australia and the new 450sqm space will be the second largest store locally. JD Sports will be home to over 50 store exclusives including sold out and limited edition styles across Adidas, Nike, Reebo...Read More

    British sports chain JD Sports will opens its fifth Australian store at GPT’s Highpoint Shopping Centre in Melbourne next week.

    The retail chain, dubbed the ‘King of Trainers’ said the brand has experienced some of its largest opening days of trade globally within Australia and the new 450sqm space will be the second largest store locally.

    JD Sports will be home to over 50 store exclusives including sold out and limited edition styles across Adidas, Nike, Reebok, PUMA and more. Cult styles like the Nike Sportswear Air Vapormax, Air Max 97 and adidas Originals NMD, including JD exclusives, will be launching on opening day.

    “After the phenomenal response to our Melbourne Central flagship launch, we are excited at JD to round out 2017 with another Melbourne location to satisfy consumer demand for JD Sports exclusive product,” said Hilton Seskin, head of JD Australia.

     

    https://www.insideretail.com.au/blog/2017/11/03/jd-sports-steps-up-aussie-expansion/

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  • 06.11.2017

    Cotton On Group launches first loyalty program

    Fashion chain Cotton On Group (COG) has launched its first ever loyalty program, with New Zealand debuting the program ahead of a global roll-out. Dubbed Cotton On & Co Perks, the multi-brand program allows members to earn and redeem rewards across the retailer’s seven brands – Cotton On, Cotton On Body, Cotton On Kids, Supre, Rubi, Typo, and Factorie. Part of COG’s omnichannel strategy, customers are rewarded through both in...Read More

    Fashion chain Cotton On Group (COG) has launched its first ever loyalty program, with New Zealand debuting the program ahead of a global roll-out.

    Dubbed Cotton On & Co Perks, the multi-brand program allows members to earn and redeem rewards across the retailer’s seven brands – Cotton On, Cotton On Body, Cotton On Kids, Supre, Rubi, Typo, and Factorie.

    Part of COG’s omnichannel strategy, customers are rewarded through both in-store and online spend, and are able to earn a voucher in one transaction or across numerous transactions. There are also no limits on how many shopping vouchers can be earnt, with a 90-day expiry. Customers also receive a $10 welcome voucher, a birthday gift and other perks throughout the year.

    The Perks program supports the group’s strategy of building a global multichannel business, according to Alex Haritou, head of CRM and loyalty at COG by “creating a more accessible shopping experience that, for the very first time, brings all seven of our brands together, while recognising and rewarding our most loyal customers on a regular basis”.

    “Perks will allow us to gain an even better understanding of our customers’ needs and shopping habits so that we can evolve our products and service offering to go above and beyond their expectations,” Haritou told IRW.

    “Customers want to feel like they matter and are not just a transaction, so this is another way of demonstrating how much we value them, and we hope this will allow us to continue to capture their hearts and minds.”

    Haritou said New Zealand has and continues to be a market of firsts for the Cotton On Group. 

    “It was the first country we launched into outside of Australia, the first country where we established an international support centre and the first country where we trialled the rollout of click-and-collect.”

    Since launching Perks late in September at Auckland’s Sylvia Park shopping centre, over 90,000 customers have signed up to the program in the first few weeks.

    “Our customers in New Zealand are retail-savvy and historically have given us a good read on how new programs and initiatives will fare globally, so we are really excited about what we are seeing with Perks,” she said.

     

     

    COG aims to have 300,000 members signed up to the program within the first 12 months.

    The retailer is also using the program as a tool to gather additional insights into how customers are choosing to shop.

    “Often consumers join a loyalty program because they already have some affinity and trust in the brand, so the role of the program has more to do with keeping the trust of the consumer as opposed to earning it,” said Haritou.

    “With any loyalty program, the key is to understand what your customer values most and design a program that delivers core benefits which are in line with their expectations, while offering surprise and delight moments along the way.”

    Structuring the program to ensure consumers feel like the benefits are attainable has been a critical component of the program so far according to Haritou.

    “If you have too many hurdles to obtaining the perks that a loyalty program has to offer, customers end up feeling disappointed and disillusioned, which can break their trust.

    “We have been really conscious of this and designed our program to deliver core benefits that are both appealing and easily attainable for our regular customers.”

    As part of the initiative, COG has integrated a philanthropic component, which sees 10 cents from every member purchase donated to the Cotton On Foundation.

    “As the lifeblood of our organisation, we’re continually looking for opportunities to support the Foundation’s mission to deliver 20,000 quality education places globally by 2020, and we are thrilled to have raised almost $10,000 already through Perks,” said Haritou.

    This article first appeared in Inside Retail Weekly magazine.

     

    https://www.insideretail.com.au/blog/2017/11/06/cotton-on-group-launches-first-loyalty-program/ 

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  • 03.11.2017

    Sales up at Oasis and Coast

    Oasis has revealed a jump in annual profits and online sales, as group stablemate Coast successfully completed the final stage of its three-year turnaround plan. Sales at Oasis for the year to 28 February were up 2.4% £160.1m, while EBITDA soared 36.8% to £11.9m. Online sales were up 17.5%, and now represent 21% of total sales. During the year Oasis launched product extensions in loungewear and athleisure and in...Read More

    Oasis has revealed a jump in annual profits and online sales, as group stablemate Coast successfully completed the final stage of its three-year turnaround plan.

    Sales at Oasis for the year to 28 February were up 2.4% £160.1m, while EBITDA soared 36.8% to £11.9m. Online sales were up 17.5%, and now represent 21% of total sales.

    During the year Oasis launched product extensions in loungewear and athleisure and increased its size offering to include size 6 and size 18. It also launched new dress lengths.

    The brand opened four new stores, two concessions and 23 franchise stores during the period, taking its total at year end to 84 stores, 200 concessions and 99 franchise stores.

    At Coast sales for the year were up 5.6% to £85.2m. EBITDA was £3.4m, this compares to a pre-tax profit of £1.3m in 2016 which was up from a loss of £10.8m in 2015.

    Online sales were up 12.1% year on year and now make up 30% of total sales.

    At Year End, Coast operated 24 stores, 194 concessions and 61 franchise stores.

    Warehouse relaunched half way through the financial year in September 2016 and the firm said investment was made across the brand and infrastructure “to lay the right foundations” for future growth.

    Sales for the period were down 12.9% on the prior year, and the retailer made an EBITDA loss of £5.8m. At Year End, Warehouse operated 49 stores, 217 concessions and 84 franchise stores.

    In current trading, like-for-like sales across the three brands were up 4.9% for the first half, fuelled by a strong performance at Oasis.

    Online sales across the group were up 18.5% for the first six months of this financial year.

    The group added it had experienced an “improved trading performance from Warehouse suggesting the transformation programme is starting to deliver.”

    The owner of Oasis, Warehouse and Coast, Icelandic bank Kaupthing, called off the sale of the high street womenswear chains last month saying the market did “not currently recognise the value” in the businesses. It added that it was under no pressure to sell.

     

    https://www.drapersonline.com/7027209.article?utm_source=newsletter&utm_medium=email&utm_campaign=DR_EditorialNewsletters.Reg:%20Send%20-%20Daily%20News&mkt_tok=eyJpIjoiTVRNek16VTNZekU1Wm1JMSIsInQiOiJ1VW9iWUhDOFVoc2FXcVhIazhJVitzMkZUTjRmcDF3bG9xYzUwV0ozTUNsZWo3R3lJeGkzcFJ2NDB5ekF4T0lvMkthaXhBcDlwN3ZwRHZScDBKVEo3ZDdvNlZrY2llejBsNHpGUDNCb3dNTGJNdTBtUWhmN0VYYmxJVEM1ekk1aiJ9

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  • 01.11.2017

    Christopher Bailey to Step Down From Burberry in 2018

    Burberry has announced that Christopher Bailey, the British brand’s chief creative officer and president, is stepping down. The label’s Spring 2018 show, to be presented next February, will be his last. “As Burberry begins the next decade of its journey, Christopher has concluded that after 17 years it will be the right time for him to pursue new creative projects. Christopher will remain president and chief creative officer until 31 March 2018, when he will step down...Read More

    Burberry has announced that Christopher Bailey, the British brand’s chief creative officer and president, is stepping down. The label’s Spring 2018 show, to be presented next February, will be his last.

    “As Burberry begins the next decade of its journey, Christopher has concluded that after 17 years it will be the right time for him to pursue new creative projects. Christopher will remain president and chief creative officer until 31 March 2018, when he will step down from the board. He will provide his full support to chief executive officer Marco Gobbetti and the team on the transition until 31 December 2018,” the brand said in a statement.

    Bailey arrived at Burberry in 2001 as design director under then-CEO Rose Marie Bravo. Previously, he had worked for Donna Karan in New York and at Gucciunder Tom Ford in Milan. In 2009 Bailey was appointed as Burberry’s chief creative officer, and he saw his duties expand in 2014 when he was also named chief executive. One of his key initiatives as CEO was moving Burberry to an in-season, see-now-buy-now runway show model in September 2016, delivering clothes and accessories to stores the day after they appeared on the catwalk and disrupting the fashion system as we know it. Bailey held the CEO title until Céline’s Marco Gobbetti assumed the role in July of this year. At the time of Gobbetti’s appointment, Bailey told Vogue’s Hamish Bowles, “I need to focus more on the things that a customer sees and feels and touches and smells. It’s trying to make what we do—which is about combining technology with beautiful craftsmanship—relevant for life that I’m excited about.”

    In his early days at the label, Bailey’s design savvy reversed the heritage company’s fortunes, turning its trademark checked-lined trench into an international fashion status symbol and expanding into many more categories besides. As the company grew under his guidance, so did his storytelling methods. Bailey’s Burberry shows became notable for their live musical performances, and he was also an early adopter of social media platforms: Burberry was the first brand to live-stream its show in 2009, and more recently he premiered a collection on Snapchat. (His purview even extended to the company’s London headquarters, where he oversaw the building of a corrugated plastic–topped atrium that amplified the sound of falling rain and thus connected all who work under it to the label’s roots as a maker of rain gear for the British army and beyond.)

    “It has been the great privilege of my working life to be at Burberry, working alongside and learning from such an extraordinary group of people over the last 17 years. Burberry encapsulates so much of what is great about Britain. As an organization, it is creative, innovative and outward looking. . . . I do truly believe, however, that Burberry’s best days are still ahead of her and that the company will go from strength to strength with the strategy we have developed and the exceptional talent we have in place led by Marco. . . . I am excited to pursue new creative projects but remain fully committed to the future success of this magnificent brand and to ensuring a smooth transition.”

    Bailey’s departure will mark the end of one of modern fashion’s longest designer tenures; few others, including Karl Lagerfeld (Chanel, Fendi), have outstayed Bailey at brands where their name isn’t part of the label. But at just 46, Bailey doubtless has more than one fashion life left in him.

    Watch the Burberry Spring 2017 Ready-to-Wear Show:

     

    https://www.vogue.com/article/burberry-christopher-bailey-exit?mbid=nl_VogueRunwayShorterDeks103117_vogue-runway&CNDID=32504923&spMailingID=17456574&spUserID=MTM2MzQ1MzE4MzUyS0&spJobID=1103000061&spReportId=MTEwMzAwMDA2MQS2

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  • 01.11.2017

    Ikea extends online shopping to Sydney

    Global Swedish furnishing retailer Ikea has made its online shopping service available to Sydney residents starting today. The new service, which follows the roll out of online shopping in Tasmania, the Australian Capital Territory, Northern Territory and most recently Queensland, offers customers the option to Click and Collect in-store at Ikea Tempe, Rhodes and Marsden Park; or they can choose to have their products delivered to their home. ...Read More

    Global Swedish furnishing retailer Ikea has made its online shopping service available to Sydney residents starting today.

    The new service, which follows the roll out of online shopping in Tasmania, the Australian Capital Territory, Northern Territory and most recently Queensland, offers customers the option to Click and Collect in-store at Ikea Tempe, Rhodes and Marsden Park; or they can choose to have their products delivered to their home. 

    The retailer has also opened last month a 70,000sqm distribution centre in Marsden Park.

    Michael Donath, multichannel manager at Ikea Australia, said the new service will make shopping at Ikea easier and more convenient for time-poor Sydney residents.

    “We are thrilled to be able to bring online shopping and Click and Collect to Sydney residents and surrounding suburbs, where shoppers will have easier access to our extensive range of 9,000 quality home furnishing products at the click of a button,” Donath said.

    “The service is great value for customers who are looking to create an entirely new look for their home, or for those who simply want to refresh with the changing seasons.”

    Donath said opening up online shopping for Sydney-siders is the next phase of their expansion, as they strive to make Ikea more widely available.

    The Swedish furniture retailer recently announced it will give its Richmond store in Melbourne a multi-million-dollar facelift to upgrade the store’s layout with new entrance points and better lift accessibility.

     

    https://www.insideretail.com.au/blog/2017/10/31/ikea-extends-online-shopping-to-sydney/

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  • 01.11.2017

    Myer to launch online marketplace

    Myer will launch an online marketplace in a bid to extend the range of its offering and bolster its digital credentials ahead of the launch of Amazon in Australia. Revealed publicly at its highly anticipated strategy day on Wednesday, the department store will onboard a strictly curated range of lifestyle and home brands as part of a beta-trial called Myer Market before looking to subsequently move into adjacent categories such as apparel. It has partnered with plat...Read More

    Myer will launch an online marketplace in a bid to extend the range of its offering and bolster its digital credentials ahead of the launch of Amazon in Australia.

    Revealed publicly at its highly anticipated strategy day on Wednesday, the department store will onboard a strictly curated range of lifestyle and home brands as part of a beta-trial called Myer Market before looking to subsequently move into adjacent categories such as apparel.

    It has partnered with platform vendor Marketplacer, which was responsible for cycling marketplace Bikeexchange, to facilitate the creation of the channel, due to launch when Myer is satisfied with the range on offer.

    Sellers have already started to come on board, with a campaign kicking off today to drastically increase the number of partners before launch, alongside the public announcement of the platform.

    Myer Market will exist separately to its existing e-commerce website myer.com.au as a complementary customer service that will be fulfilled by the vendors on the platform.

    Speaking to Inside Retail Weekly about the marketplace, Myer’s chief digital and data officer Mark Cripsey said that Myer isn’t looking to be the biggest marketplace, but will provide customers with a differentiated offer that leverages its curation expertise, loyalty program assets and physical store network.

    “We’re not trying to be the biggest marketplace in Australia, we want to bring the best of the best of sellers,” he said.

    Asked whether Myer intends to compete directly with Amazon, Cripsey said he believes there is room for a variety of players in the market.

    “Several marketplaces can happily co-exist, so long as they’ve got a different purpose and a different role,” he explained. “Our knowledge of the Australian customer, our brand and our expertise with product really allows us to have a point of difference that’s not replicable.”

    In opening a marketplace, Myer joins the likes of Ebay (which it currently sells through), Catch Group, Kogan, Mysale Group and Ozsale – all of whom have benefitted from rapid adoption of B2C online marketplaces in recent years.

    Myer will seek to set itself apart by leveraging its Myer One loyalty program to provide partners and customers with its points-based rewards program, while utilising its store network to facilitate the logistical requirements associated with product returns on behalf of sellers.

    Cripsey said the department store will be selecting partners “very carefully” to ensure they are able to stack-up to product quality, service and fulfilment requirements.

    Digital expansion

    Myer also hopes an expansion into marketplace will enable it to extend its range more broadly across the breadth of the business, while also looking to use the channel to increase sales within its private label business.

    “Our intent is to go into adjacent categories to where we usually trade. Who knows? It could be a great opportunity for us to become more aware of certain supplier strengths, which could lead to other conversations within Myer,” Cripsey explained.

    Myer Market is understood to be technically already operational through Marketplacer’s platform, which is touted to have more than 20 million annual users, 100,000 sellers and 340,000 products across a portfolio of 15 separate websites.

    Cripsey would not go into the specifics of Myer’s partnership with Marketplacer CEO Jason Wyatt, but said it represents more than just a deal for a technology platform.

    “Partnering allows us to reduce the amount of capital investment and man hours required to bring new things to market,” he said. “We’re not just buying a technology platform here. We recognise that running a marketplace online is a type of IP that we don’t, by definition, have experience with today.”

    Myer’s test-and-learn toe dip into the world of marketplace comes as the company looks to refine its New Myer strategy amid slower than expected progress on its turnaround.

    Myer’s bottom-line profit dropped 80 per cent in FY17, while average top line sales grew only 0.1 per cent, with CEO Richard Umbers conceding in August that it is “clearly taking longer” to achieve the core goals of the New Myer strategy than was originally anticipated.

    Digital, however, has been a bright spot for the business under the stewardship of Cripsey, alongside sustained investment since 2015, having grown by 41 per cent in FY17 to $177 million in revenue.

    The addition of the marketplace could stand to add millions to that figure if successful, with industry competitor Catch Group this week saying it is generating $1 million in sales per week through its own platform, which it launched in June.

    https://www.insideretail.com.au/blog/2017/11/01/myer-to-launch-online-marketplace/

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