Anna Esrov

“TJX Companies raised its full-year guidance on Wednesday after posting another quarter of strong sales, but its outlook still fell just short of Wall Street’s expectations.” “So far this earnings season, retailers that disappoint with guidance haven’t seen much negative impact to their shares, suggesting investors are prepared for uncertainty in the second half of the year ahead of the U.S. presidential election and a potential rate cut from the Federal Reserve. Shares of TJX rose about 4% in premarket trading.” “The company’s reported net income for the three-month period that ended August 3 was $1.1 billion, or 96 cents per share, compared with $989 million, or 85 cents per share, a year earlier.” “Sales rose to $13.47 billion, up from $12.76 billion a year earlier.” “Throughout TJX’s fiscal 2024 year, which ended in February, the company posted strong sales gains and robust guidance, but investors have been keen to see how it will lap those numbers in the quarters ahead and if it can keep growing.” “The company has looked abroad as a primary growth avenue and on Wednesday, it announced that it was taking 35% ownership stake in the Dubai-based retailer Brands for Less for $360 million. The privately-held brand is the region’s only major off-price player and operates more than 100 stores, primarily in the United Arab Emirates and Saudi Arabia, along with an e-commerce business, TJX said in a news release.” “During the quarter, consolidated comparable store sales increased by 4% and were “entirely driven by an increase in customer transactions,” indicating more shoppers are coming to its stores, TJX said. That jump is ahead of the 2.8% uptick that analysts had expected, according to StreetAccount.” “The retailer has been taking market share from competitors like Target and Macy’s and has become a haven for price-sensitive consumers who may be watching their dollars but still want to spring for new clothes.” “In May, Herrman said the company is winning in part because it’s “become a cooler place to shop” and has made inroads with younger Gen Z customers, who tend to be more concerned with snagging good, high-quality deals than shopping at high-end names.” “Some analysts say the nature of TJX’s business model means it does well in any economic environment. In good times, its core lower- to middle-income consumer has the extra cash to buy discretionary items like new clothes, shoes and home decor and in bad times, higher income shoppers come to its stores looking for deals on the branded clothes they’re accustomed to.” - Gabrielle Fonrouge

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Interesting article.

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

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My CNBC video interview on Abercrombie & Fitch's blowout sales and profits illustrates the competitive advantage of having a retail merchant as the CEO! Fran Horowitz is a savvy CEO offering Great Fashion for Real Consumers and everybody wins!! #abercrombieandfitch #fashion #cnbc #retail

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I had the chance to sit down with a group of Bay Area retail executives this week, and the conversation was too insightful not to share. We touched on a few hot topics that I think are relevant for everyone in the industry right now: One big theme? AI. It’s all over the news, but there’s still a lot of skepticism—especially around whether it can actually drive meaningful results in stores. Sure, AI might work for call centers, but can it really impact the store experience for both employees and customers? The cost is high, and a lot of leaders are waiting to see some real-world success stories before fully buying in. Another topic that kept coming up was integration. With so many tools—CRM, POS, task management—the challenge isn’t just having the right systems but getting them to work together. Retailers are investing in tech, but if it’s not cohesive, it’s just creating more friction. The future has to be about simplifying and connecting the tech stack so stores can focus on execution, not managing a dozen different platforms. Lastly, what really struck me was how important human connection still is in this business. No matter how far technology goes, relationships matter. And this week's conversation was a great reminder of how interconnected we all are — many of us have worked together in some way before. 😄 It made me think about how tech should be enhancing those relationships, not replacing them. If you're a retailer, I’d love to hear how you’re thinking about these challenges. Is your team navigating AI, integration, or keeping those human connections strong?

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With over 20 years in the industry, I am grateful to have received recognition such as the Top 100 CISO Award and CSO50 recognition. I can't wait for you all to hear me in conversation with Tom Field and learn more about my journey and thoughts on cybersecurity. See you all on the ISMG media network! #Cybersecurity #CISO #CSO50

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Retailer return policies are changing. Many retailers are now charging shipping fees for returns as both a way to recoup the high cost and impact to the bottom line as well as deter excessive returns. According to Good Morning America, this policy change will continue into 2025 and may become the new norm. In addition to charging return shipping fees, some retailers are using drop off locations (like Whole Foods for Amazon and Happy Returns locations) to help with the cost impact. I just had a $7 return shipping charge with LL Bean and will most likely not order from them online again (unless I am certain of the purchase) and there is no physical location near me. As we continue through “Returnuary” have you noticed this change? And does it deter you from shopping online with specific retailers? #RetailReturns #RetailTrends #Shipping #Ecommerce

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"Nordstrom has agreed to be acquired by its founding family and Mexican retailer El Puerto de Liverpool in a deal that values the luxury department store operator at about $6.25 billion, including debt."  https://lnkd.in/gRqknBPp

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Wednesday this week Mattress Retailer Toolkit is hosting yet another Experts sessions call, this is a live call at 11:30 am East Coast Time and it’s FREE for all to attend. On this call Kristen Dressler from Team Builder Recruiting, who helped us with our last two rockstar hires will join us. RSVP to join us ⬇️⬇️⬇️ Replays will be housed in our member community AND she will have a members only resource page of valuable assets when creating ahiring ads, forming interview questions and brining in on the right hire the right way. She’ll be sharing - 5 Winning Hiring Strategies to Build Your Team Attracting, interviewing, and building a team is a challenge every business faces. By approaching this mission-critical task with a touch of strategy and a little planning, you increase your chances of success exponentially. In this presentation, we'll discuss what candidates are looking for in a career move. You'll learn how to identify the type of person needed for your open position, marketing strategies to attract qualified candidates, and interview tips to help you identify which candidate best matches your role. The presentation wraps up with insights on presenting the offer to your first-choice candidate so that you have the best possible chance of getting a "YES!" to your offer. You'll leave this session with practical tips and tricks to build an effective and streamlined hiring process.

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This release is a big deal! It allows for much greater and easier customization of prioritization logic of missions for store and field leaders. Take a closer look, and I think you’ll realize that Quorso is a game changer for retailers to help their field teams identify and prioritize activities that would otherwise fall between the cracks.

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What's the headline from recent retail earnings transcripts from Walmart, DICK'S Sporting Goods, The TJX Companies, Inc., and more? Value wins. The macroeconomic environment played a role in crowning the season’s winners. Value is top of mind for consumers as they look to stretch their budgets. Read on below for more insights: https://lnkd.in/gCvZghbY

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“You're free to make your own choices, but you're not free from the consequences of that choice.” Operating the e-commerce business from the Stores business was supposed to be a value unlock that made the Saks.com business more valuable than the Stores. In such an interconnected shopping world separating the Reach of the "Clicks"/E-com business from the Touch of the "Bricks"/Physical Stores had the potential for some consequences - some of which are being seen now. Many pure-play E-commerce brands have experienced profitability challenges associated with such a business model and building a path to profitability. For them, Customer Acquisition Costs, building Customer Lifetime Value, and being able to address returns (especially in a sized business where customers continue to 'bracket' their purchases, buying multiple sizes, trying on at home and returning, possibly more than they keep). Your thoughts? Excerpts: Dive Insight: The separation of Saks Fifth Avenue’s online and offline operations centered on the notion that the e-commerce business, thanks to its tech prowess and appeal to young shoppers, was more valuable than its legacy brick and mortar and needed to be unleashed. But signs have emerged that operating online can be a drag on profitability. A few luxury players in particular have faltered recently, with Farfetch facing downgrades before being acquired by e-commerce platform Coupang for $500 million. Last month luxury site Matches went bankrupt just months after it was acquired by Frasers Group for $66 million. In Q4, Saks.com’s gross merchandise value fell 8% year over year, an improvement from Q3’s 19% decline, according to the research from BTIG’s Stichter. That performance points to a “challenged but stabilizing” performance in luxury overall, though online players could be vulnerable to competition, according to that report. #saks #Ecommerce

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According to National Retail Federation's Jack Kleinhenz, Ph.D., despite key factors in retail and consumer such as trade, immigration, regulation, tax and spending policies, "there is good reason to expect healthy economic growth in 2025". Read on below for more from Chain Store Age's Marianne Wilson: https://lnkd.in/gTVqUZCQ

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“This transaction (finally) acknowledges the reality that the North American luxury department store model has been under assault and in contraction mode for some time. While putting two fairly mediocre companies together does not guarantee remarkable success, it does create the underlying conditions for a better future.” “While it remains unclear the precise role of Amazon and Salesforce as partners in the new entity, both bring potentially powerful financial and technology capital to the table.” “Aside from decisions about the ultimate new organizational structure, many vexing decisions lie ahead, most of which center on whether and how to further differentiate the two primary nameplates and how aggressive to be about consolidation of the many overlapping store locations.” “Historically, the Neiman Marcus locations are typically and comfortably the most productive, and in a world where digital growth is materially outpacing transactions rung up in a store and where competition from vendors’ own stores is being dramatically ramped up, it’s fair to say that many stores are way bigger than they need to be. In cases where two virtually identical concepts have large stores in essentially the same trade areas, the financial upside from closing the weaker location could be enormous.” “While many have suggested that Saks Fifth Avenue could be more clearly repositioned toward the “accessible luxury” space, while Neiman Marcus could solidify its position in “true luxury,” this isn’t so clearly a workable strategy. Having Saks trade-down would bring it more obviously in direct competition with Nordstrom’s full-line stores (which have struggled for years to grow their top line) and Bloomingdale’s, both of which often have stores in the same mall as Saks.” “One of the reasons Neiman Marcus has struggled is the misguided belief that it was smart to focus more heavily on its very top customers. This is eminently sensible if you want to be a 15 store chain with far smaller stores, but with more than half of its sales coming from outside that cohort, the economics of its current store size and real estate strategy would become even more challenging.” - Steve Dennis

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The merger of Neiman Marcus and Saks Fifth Avenue is a significant development in the luxury retail industry. It is expected to bring a number of benefits to both companies and their customers. * Increased market share: The combined company will be the largest luxury department store retailer in the United States, with a combined market share of approximately 30%. This will give the company greater bargaining power with suppliers and allow it to invest more in marketing and technology. * Expanded reach: The merger will give the combined company a presence in more than 100 cities across the United States. This will allow it to reach more customers and increase its sales. * Cost savings: The two companies are expected to achieve significant cost savings through economies of scale. These savings could be used to reinvest in the business, such as by opening new stores or expanding online offerings. * Improved customer experience: The combined company will be able to offer customers a wider range of products and services. This could include things like personalized shopping experiences, exclusive events, and early access to new products. * Enhanced digital capabilities: Both Neiman Marcus and Saks Fifth Avenue have strong digital presences. The combined company will be able to leverage these capabilities to improve the customer experience and drive sales growth. https://lnkd.in/gSCUYcjW

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Get to $1MM in Sales for your Fashion Brand with Wholesale! Everyone wants to get into Saks, Anthro and Revolve and other large retailers, but one BIG question to ask is: Can you afford to do wholesale? It’s crucial to understand the margins for wholesaling your line. Typically, you'll need to give wholesale accounts a generous margin for them to make money. At Alala, we use aim for a 60-65% margin when pricing for wholesale and then a 2.25-2.5x markup from wholesale to retail. If you don’t have strong COGS, you might end up losing money going wholesale, especially when factoring in other costs like warehousing and shipping. Get your COGS under control before considering selling to other stores. At the very least, try to break even initially. More insights coming soon! Subscribe to my Substack for weekly newsletters about how to grow your fashion brand to $1MM in sales. #Wholesale101 #Margin #COGS #FashionBusiness

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The psychology of shopping for fashionable swimwear is fraught with challenges. See my comments in this Huffington Post article for key retail insights. https://lnkd.in/emKjq5rh #fashion #swimwear #fashionbusiness #fashionretail #fashionconsumer

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As a GOOD AMERICAN customer, I can’t wait to experience the store. 👖As a former merchant, having a digital option to showcase styling, fit and product knowledge would have given me the confidence that my merchandising strategy was being executed in the store without having to physically be on location. 📺This is a great way to make sure teams are product obsessed with the constant graphics and that the visual merchandising / styling options are being showcased at the store. 🛍️To make sure this extension of digital is a success, Good American would need to keep the content fresh and consistent with real time inventory and reflective of the current product assortment. Sales associates would still need to be product obsessed but they would also need to show customers what is possible with the digital screens. The experience should augment and assist the sales associate and not be considered a replacement of staff. 🔹The excitement of finding a product on the screen, loving the look and being disappointed if the item or the size is not available could also drive customers away. GA would need to be on top of their inventory position and have a good handle of managing their inventory across all channels. 🗞️Check out more #BrainTrust comments on RetailWire: https://lnkd.in/eDJp--GF #retail #retailnews #goodamerican #cx #stores #merchandising #TRE #TopRetailExpert

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