Retail Roundup | March 2023
As a retail technology company obsessed with data, we at Tillerman are constantly looking at the trends and forecasts shaping the retail industry broadly. The start of 2022 continued to bring challenges with supply chain issues, inflation and of course Omicron having an impact, but there were bright spots as well. Heres a roundup of some of the retail stories that caught our eye this month.

Some good news to kick off our March 2023 round-up as PVH delivered stronger than expected results for the 4th quarter. The market response was very positive as the company continues to execute the PVH+ strategy, and Tillerman is very pleased to continue to play our part in their success! Dick's Sporting Goods also beat expectations for the quarter, and in addition to a successful 4th quarter, DSG thinks they have resolved supply chain related inventory difficulties and is looking forward to a stronger than expected 2023.

Unfortunately, most of the news was not as cheerful with Nordstrom reporting disappointing 4th quarter results. They also announced that they will be closing their Canadian Stores after failing to find a way to make Canada a profitable venture. Macy's continues to struggle and is focused on initiatives to turn the tides including off mall formats, marketplace sales and expansion of luxury. Meanwhile Zalando reported difficult results further illustrating the end of the pandemic e-commerce boom as the customer's return to Brick and Mortar was much stronger than expected. And finally on the earnings front, Retail Dive had an interesting piece on JC Penney's financial performance post-bankruptcy. The reported financials and reality of their product mix and target market don't really align with the message from the retailer.

DTC brands continue to expand their wholesale presence in an effort to manage inventory, and Cuup was no exception, entering the wholesale space with an on-line and in-store deal with Bloomingdales. In addition to growing their footprint, they are bringing tech to the deal with their on-line fitting app. Disney is shuttering a newly created Meta Verse division. Not a sign that they are abandoning the platform, but more likely a sign that we are still too far away from commercializing the technology to warrant the investment in a tough climate.

Despite a difficult Q4 for most, there are still plenty of positives. Footlocker and Nike have re-established their partnership following Nike's move away from wholesale as the brand suffered with excess inventory after focusing on DTC. GIII is regrouping following the loss of Calvin and Tommy licenses with the expansion of Donna Karan and a new Nautica license, and despite reporting disappointing results, Land's End found success in Kohl's Marketplace performance. Marketplaces are a growing distribution channel that brands should be focused on to enhance performance. Retailers certainly are.

March closes with the news of Jeff Gannette's retirement as the CEO of Macy's. He leaves the company having received high marks for his leadership during a difficult period in the retail industry and department stores in particular. He will be replaced by Tony Spring as of February 2024.

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