NEWSLETTER
One of the greatest trends we have seen in the retail industry in recent years is dramatic consolidation.
It seems that many brands, stores and corporations are constantly going through some type of merger process.
The big corporate headlines are buying smaller competitors, mom and pop stores are folding, once unconditional popular of the mall are declaring in bankrupt .
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The fact is that the 2020 decade has caused a calculation throughout the retail industry, where only the largest and most profitable survived. While many retailers intended to close their doors temporarily, while the worst of the pandemic passed, it became almost unsustainable to reopen after months of loss of profits and decreased pedestrian traffic.
More retail:
- Walmart, Target, Costco makes an important 2025 advertisement
- The retailer before in bankruptcy makes a painful decision to close more stores
- The main investor adopts a firm position in the problematic brand problem
- Walmart and Costco make important changes that affect all customers
Restaurants, retailers, even some of the most popular brands and labels of shopping centers sank because they could not float business for months without a life raft.
And the damage has not yet done. A new prediction of Coresight suggests that 2025 could see up to 15,000 store closures, an increase of 334.3% of only one year earlier.
Changing consumer tastes affects retailers
But not only Covid or large corporations are the guilty of the changing retail panorama.
Customers are incredibly volatile beings, and when their tastes change, businesses follow quickly.
Let's take, for example, the rapid decrease in shopping centers in the last decade more or less.
Many shopping centers are now vacancies, or a significantly reduced capacity, because buyers simply prefer to connect online or the cheapest shopping centers than in expensive interior places.
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They are also less willing to pay more for brands that they could normally find in discount retailers such as TJ Maxx or amazon. And when consumers feel that they are constantly running out in a given store, they will be much less likely to keep that store in their regular rotation.
The best retailer sells a popular label
But trends also come and go.
Sometimes, buyers simply decide that they like less a given brand, or return to the old favorites.
Such is the case of Tapestry Brands (Tpr) The Matrix of Tags such as Coach and Kate Spade.
For years, coach and Kate Spade had dealt with sales with difficulties, since customers opted for other exclusive brands. But the particular coach has had a resurgence, especially among the buyers of generation Z, and Tapestry has decided that he wants to pour more of his resources to vigorize those sales.
Therefore, it will sell to Stuart Weitzman, the exclusive brand of shoes and accessories, approximately 10 years after buying the label.
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Tapestry bought Stuart Weitzman in 2015 for approximately $ 530 million. Now he downloads it to heaters for $ 105 million in an cash agreement, approximately 20% of the original purchase price.
Caleres is a company centered; He also has brands such as Famous Footwear, Sam Edelman and Vionic.
Stuart Weitzman only represented approximately 3% of Tapestry's total sales, and now the company expects the sale to allow you to focus again on the things that work.
“In Tapestry, this means taking advantage of our strength position to maintain the coach's leadership and impulse while revitalizing Kate Spade to boost the lasting organic growth and the value of shareholders,” said Tapestry executive director, Joanne Crevoiserat, about the transaction . “At the same time, we are pleased to have found Stuart Weitzman a house in Caleres, an ideal owner to guide his next growth chapter.”
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