It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
From PetSmart’s bid to entertain dogs and cats this holiday season to Digital Brands Group’s reverse stock split, here’s our closeout for the week.
What you may have missed
Adidas investigation for tax, customs compliance prompts HQ search
A search was conducted this week at Adidas’ headquarters in Herzogenaurach, Germany, and “other locations” as part of an investigation into the company, a spokesperson confirmed to Retail Dive. The investigation is related to the sportswear giant’s compliance with import customs and tax regulations in Germany.
“Adidas is cooperating with the authorities and providing the necessary documents and information,” the spokesperson said. “Compliance with legal requirements is of utmost priority for adidas. The company has been in contact with the relevant customs authorities for several years regarding the matter of the investigation, which have been well known already.”
The investigation covers the period from October 2019 to August of this year and Adidas said it does not expect “any significant financial impact” from the investigation.
“Adidas continues to work closely with the customs authorities to also clarify issues arising from different interpretations of German and European law,” the spokesperson added.
Puma opens Studio48
Puma on Thursday launched a creative hub, dubbed Studio48, at its headquarters in Herzogenaurach, Germany. The space features a 3D printing facility, leather and textile sewing machines, printing and embroidering setups, a product testing area, a photo studio and a designer meeting space.
The brand launched Studio48 as a space to create concepts for new performance and Sportstyle products, alongside campaign ideas. The space is part of the company’s larger brand elevation strategy to improve its sports performance credibility and create sustainable growth.
“With the new Studio48 we are creating a significant tool to enhance the excellence of our designs and elevate the brand,” Heiko Desens, Puma’s vice president of creative direction and innovation, said in a statement. “While many of our products are created digitally, Studio48 will be a space for a different kind of creativity, where our designers from different departments can brainstorm together, exchange best practices, experience new materials and touch and feel the products they want to make.”
Puma also plans to use Studio48 as a space to meet with external partners as well as host workshops and events. The company plans to open a similar hub in Los Angeles early next year that is aimed at the U.S. market.
Amazon Autos debuts with Hyundai partnership
Online retail giant Amazon added cars to its already expansive product offering this week.
Shoppers in 48 U.S. metropolitan areas are now able to complete end-to-end car purchases — including trade-ins, financing and scheduling pickup of the vehicle — from their local participating Hyundai dealer directly on Amazon.
The online retailer plans to add additional Hyundai dealers, more auto brands and expanded leasing and financing options. The program will also expand to other cities next year.
“With Amazon Autos, we’re bringing the simplicity and ease customers expect from Amazon to car shopping, one of their largest purchases, while offering dealers a new channel to connect with a broad audience,” Fan Jin, global head of Amazon Autos, said in a press release. “We're excited to have Hyundai as our exclusive launch partner and look forward to welcoming more brands and expanding our selection to customers as the program grows.”
Retail therapy
The festive entertainment pets want this holiday
The holiday season is a busy period, filled with parties, shopping and other activities. To help pets feel more comfortable being home alone, PetSmart has launched a holiday streaming experience for dogs and cats.
“The 'Home for the Pawlidays' videos help to ease pet and pet parent worry, and end the holiday pet blues,” PetSmart said in a press release this week. The videos feature dogs and cats playing with items from the retailer’s 2024 Merry & Bright collection.
"While our pets are included in many of our holiday celebrations, there are still times they need to be left at home – which can be difficult for both them and their pet parents," Dr. Misti May, PetSmart’s director of pet health and safety, said in a statement. "These videos are designed to keep pets entertained, comforted and out of mischief, making the holiday season more enjoyable for everyone."
Hello Kitty taps Bruno Mars in collab
To honor Hello Kitty's 50th anniversary and the opening of Bruno Mars' holiday Las Vegas residency, parent company Sanrio announced a slew of collaborations with the Grammy-winning artist across merch, food and drink, and a meet-and-greet experience.
Mars’ residency starts Wednesday at the Dolby Live venue at the Park MGM casino hotel. Here, fans can shop from Sanrio's signature Japanese kawaii style on limited-edition merch like sweatshirts and bags with Hello Kitty and Bruno Mars graphics.
An exclusive water bottle and T-shirt can be purchased inside the venue’s Hello Kitty Cafe kiosk. The cafe will also have exclusive menu items including shortbread cookies iced with the duo’s graphics and the Mars Mocha — a brown sugar coffee drink in a custom Hello Kitty x Bruno Mars cup sleeve. On Wednesday, fans will have the chance to meet and greet Hello Kitty at the cafe prior to the Bruno Mars concert.
What we’re still thinking about
1-for-50
That’s the reverse stock split Digital Brands Group conducted this week, according to a filing with the U.S. Securities and Exchange Commission. The stock begins trading on a split-adjusted basis on Friday.
20%
That’s how much GameStop’s net sales fell in the third quarter, to $860 million, down from $1.08 billion last year.
The retailer also swung from a net loss of $3.1 million in the year-ago quarter to a net income of $17.4 million. GameStop said in October it had started a collaboration with Collectors Holdings through its Professional Sports Authenticator division. Select GameStop locations now provide trading card autograph authentication and grading services.
However, GameStop’s latest venture is unlikely to halt the video game retailer’s decline, according to Wedbush analysts, who noted that the trading card collaboration comes after a failed omnichannel strategy and the company’s withdrawal from NFT trading.
What we’re watching
Will Party City file Chapter 22?
Specialty retailer Party City’s parent company, Party City HoldCo, filed for Chapter 11 at the start of 2023. By the autumn of that year, the company had completed its restructuring efforts, which eliminated nearly $1 billion in debt, and emerged from bankruptcy.
Since that time, the retailer has undergone a number of strategic initiatives, including introducing locations with a new store format, partnering with Instacart on same-day delivery and cutting prices on 2,000 items. Over the summer, Party City also named turnaround veteran Barry Litwin as CEO.
Yet, the company may be preparing for a second bankruptcy, according to Bloomberg, which reported this week that the company is behind on rent at some locations and running out of cash. Party City did not respond to Retail Dive’s requests for comment on the matter.
