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 Gap’s recent round of layoffs to Skechers latest celebrity partnership, here's our closeout for the week.
What you missed
Say goodbye to Amazon Halo
Amazon will no longer support its Halo devices effective July 31, according to a company announcement Wednesday. Impacted employees who worked on Halo across the U.S. and Canada have been notified and are receiving a separation payment, transitional health insurance benefits, and external job placement support. Customer purchases made in the preceding 12 months related to Halo will be fully refunded.
The suite of Halo products were focused around health and wellness, with the e-commerce giant launching its wearable fitness Halo band in 2020 alongside a compatible Halo app. Amazon also debuted the Halo Rise device in September of last year, which was a bedside clock that used a low-energy sensor to monitor the breathing patterns of the sleeper closest to it.
The announcement comes amid layoffs at Amazon as it shifts its priorities. In March, the e-commerce company announced it would cut 9,000 roles by the end of April, mostly in its AWS, Twitch, advertising and PXT teams. The move came just a couple months after Amazon said it would eliminate 18,000 positions.
Academy Sports + Outdoors names new CEO, president
The sporting goods retailer announced several executive leadership changes this week.
Ken Hicks, Academy’s chairman, president and CEO, will step aside to become executive chairman of the board of directors. Steve Lawrence, the company’s executive vice president and chief merchandising officer, will become CEO. And Michael Mullican, the executive vice president and CFO, will become the company’s president.
Lawrence and Mullican will remain CMO and CFO, respectively, until successors are named.
Hicks served as CEO since 2018. Under his leadership, the company opened 28 new stores and grew net sales to $6.4 billion in 2022 from $4.8 billion in 2018. Lawrence, who joined the company in February 2019, has more than 30 years of retail leadership experience at various retailers, including J.C. Penney.
In addition, Samuel Johnson, executive vice president of retail operations, will assume additional responsibilities for real estate, construction and store design. Academy has 269 stores across 18 states.
Toys R Us heads to Mexico
WHP Global, the parent company to Toys R Us, has partnered with omnichannel retailer El Puerto de Liverpool to bring the brand to Mexico for the first time.
Through the partnership, Toys R Us will operate multiple stand-alone stores as well as a website in the region. The stores will feature toys and games from national brands as well as private labels from the toy retailer.
"Toys R Us has been the authority of toys and play for generations of children and families around the world, and the expansion into Mexico marks an exciting new chapter in its history," Jamie Uitdenhowen, executive vice president of Toys R Us at WHP Global, said in a statement. "With a commitment to providing the best selection of toys, along with a fun and engaging shopping experience, Toys R Us is poised to become the go-to toy destination for Mexican families for years to come."
WHP Global acquired Toys R Us in 2021, and said it doubled the toy retailer’s footprint in 2022 through its partnership with Macy’s as well as launches in India, the United Kingdom and Australia. The company said it’s planning to continue the momentum this year through an e-commerce launch and the first store in Mexico planned for this coming holiday season.
Retail Therapy
Skechers is feeling Freaky Deaky
Skechers has named its first artist-in-residence, and it’s not Martha Stewart. It’s Doja Cat.
To celebrate the surprising pairing, the Grammy award-winning musician wore an outfit made from deconstructed Skechers Uno sneakers to the Time100 gala this week. Because what says comfort footwear more than that? “Skechers has given me a new canvas to create and I can’t wait to show everyone what we are building,” she said in a statement.
Doja Cat is the latest celebrity Skechers has tied up with in a somewhat scattered marketing strategy that includes everything from a collaboration with Stewart to a campaign featuring Mr. T and a series of efforts to deepen its pickleball ties. The retailer has attempted to push its products into more fashion-forward territory before, including earlier this year, through a collection made with fashion designer Diane von Furstenberg.
For a retailer that calls itself the “Comfort Technology Company,” Skechers sure is leaving its comfort zone a lot.
Spirit Halloween wants to carve out some time to celebrate
April is the time of flowers and allergies but it is something else: the halfway point to Halloween. That’s right, ghouls, it’s already time to start thinking about your costume.
This week Spirit Halloween had festivities to mark the occasion — and its 40th anniversary. Fans had a chance to win an immersive experience at the Winchester Mystery House, one of the world’s most haunted destinations. The retailer is also introducing three new animatronic characters as part of its offering.
“It’s shaping up to be a big year for us and we wanted to get the party started earlier than ever in a way only Spirit Halloween can,” CEO Steven Silverstein said in a statement. “Our loyal fans truly embrace the Halloween lifestyle year-round, so the halfway mark felt like the perfect time to give everyone a taste of what’s to come throughout our 40th anniversary season.”
Spirit Halloween also may have some new real estate to occupy this year, too.
What we’re still thinking about
2,300
That’s the number of layoffs instituted by Gap Inc. since September. Last fall the company confirmed the elimination of 500 jobs, and this week it added another 1,800 to those plans.
The struggling apparel conglomerate is in the midst of a search for a chief executive, but is undertaking a restructuring to slash its expenses and streamline its leadership ranks. Interim CEO Bob Martin, also the board chair, for weeks now has said the effort will yield annualized savings of $300 million and lead to more creativity as the company attempts a comeback. Gap Inc. swung into the red in 2022, ending the year with a $202 million net loss, compared to 2021’s $256 million in net income.
The retailer – whose brands Athleta, Banana Republic, Gap and Old Navy all suffered falling sales in Q4 – isn’t sufficiently focused on correcting those declines, however, according to GlobalData Managing Director Neil Saunders.
“The problem is that no retailer ever shrank their way to success,” Saunders said by email. “It’s a one-way street that rarely has a positive outcome.”
20,000
That’s how many Walmart+ memberships the company is giving to new moms for Mother’s Day this year, in partnership with the Pampers hospital gift bag program. Beginning in May, those who recently delivered a baby are eligible for a reusable fabric bag, a sample pack of wipes and a free one-year subscription to Walmart+, while supplies last. The membership for subscribers is $98 a month with a list of perks.
Benefits include unlimited free shipping on eligible items with no order minimum, free delivery from stores, discounts at the pump, in-store mobile scan and go, and access to Paramount+. Walmart+ members are also able to access early product releases and deals online as well as make returns from home. Part of the promotion includes a commercial featuring celebrity moms Cardi B, Stephanie Beatriz, Janelle James and Jenny Slate highlighting their motherhood hacks as well as the membership.
What we’re watching
Don’t throw away those big blue coupons just yet
Bed Bath & Beyond’s coupons famously never expired, but those days are over now that the retailer is going out of business under the watchful eye of a judge in the U.S. Bankruptcy Court for the District of New Jersey.
“Customers can no longer redeem coupons,” the home goods retailer advised on its website.
Not so fast, though. Those big blue 20% off coupons from Bed Bath & Beyond are still good at a few other stores hoping to grab some of the retailer’s market share, at least for a little while. Through the end of May, for example, The Container Store customers can bring a “competitor’s blue coupon,” to any location for 20% off a single item. Big Lots shoppers have a little less time, but through May 7, customers can use a Bed Bath & Beyond coupon to receive 20% off a purchase of at least $50.
“For anyone who has missed their last opportunity to redeem one of these coupons, Big Lots is opening our doors to help you save on your entire purchase,” Big Lots CEO Bruce Thorn said in a statement.
