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 Nike’s turnaround prospects to the impact of LA’s fires on Walmart, here’s our closeout for the week.
What you may have missed
Tilt Beauty launches, aiming to make industry more accessible
Twenty-one-year-old Aerin Glazer founded Tilt Beauty after struggling to find options in the beauty market designed for people with disabilities.
Glazer, who was diagnosed with Psoriatic arthritis, sought to create beauty products that are easier to open, hold and apply. The brand launched with two products, a mascara and a lip treatment, both of which are the first of their kind to receive the Arthritis Foundation's Ease of Use certification.
"I experienced chronic painful flare-ups that made using makeup products a constant challenge,” Glazer said in a statement. “I founded Tilt Beauty to create a brand where beauty is accessible to everyone. Our mission at Tilt Beauty is to design products that look beautiful and also make everyone feel included.”
The products are vegan, cruelty-free, come in refillable packaging and received the National Psoriasis Foundation Seal of Recognition.
Ollie’s confirms next CEO
Eric van der Valk officially took the wheel as CEO of Ollie’s Bargain Outlet on Sunday.
Van der Valk, who joined Ollie’s as its chief operating officer in 2021, will also serve on the company's board of directors. Outgoing CEO John Swygert will take over as executive chairman of the board.
These moves complete a leadership transition plan the closeout-focused retailer initially announced last June. The company has about 560 stores in 31 states.
“While extremely proud of what we have accomplished so far, I am even more excited about Ollie’s growth potential and competitive positioning going forward,” Swygert said. “Eric’s unique background and experience makes him the perfect candidate to lead Ollie’s as we remain committed to continue to grow our business and deliver strong returns to our shareholders.”
Walmart stores not impacted by Los Angeles fires
Although the human and economic loss from the Los Angeles area wildfires continues to grow, one of the world’s largest retailers managed to avoid damage at its facilities as trouble from the ongoing disaster mounted.
No Walmart stores or facilities were damaged or destroyed by the fires, a spokesperson told Retail Dive in an email. Additionally, no stores or Walmart facilities were closed due to fire-related reasons as of Tuesday. Some employees were affected, though. The company has 303 retail stores, 17 distribution centers and four fulfillment centers in California.
“Associates under evacuation orders were offered evacuation assistance, and associates at stores that were temporarily closed were offered disaster pay,” the company said. Walmart, Sam’s Club and the Walmart Foundation recently announced a $2.5 million commitment to support fire relief efforts.
Overall, “we have supported 34 local organizations with donations of products (water, food, essentials). Walmart deployed its mobile relief kitchen partnership with Tyson Foods and served over 38,000 meals from our Supercenter in Baldwin Park, CA,” the company said.
Retail therapy
Build-a-Bear expands its adult Valentine’s Day offering
Just when you thought it couldn’t get any weirder — Build-A-Bear Workshop expanded its 18+ Valentine’s Day “After Dark” collection with a Cuddly Cougar stuffed bear available through four different gift sets. The various gift sets include outfits such as a faux fur leopard print coat, a pink sequin dress and a “caBEARnet” wine glass, among other offerings for the Cuddly Cougar to sport.
The retailer launched its age-restricted “Bear Cave” site in 2019 and has made waves on social media for its stuffed animal collections aimed at adults.
The expanded After Dark collection includes 11 additional gift sets and a variety of accessories. The collection is only available to shop online at the Bear Cave site.
Vans drops collection for the decades
Vans released the first offering in its Premium Old Skool Music Collection on Thursday with designs based on specific decades of music and fashion. The shoe brand first debuted its '70s to '80s punk capsule this week. The '90s to 2000s Warped Tour-inspired collection will drop March 6 and the 2010s hip-hop capsule is set to release on April 10.
For the collection, Vans tapped musicians Little Simz, The Paranoyds, Voice of Baceprot and Hi-Tech as brand ambassadors.
What we’re still thinking about
22
Will Forever 21 file a Chapter 22? The informal term is when a company goes through a bankruptcy twice. The fast-fashion retailer went through Chapter 11 in 2019 and was bought out of bankruptcy by Authentic Brands Group and mall operators Simon Property and Brookfield several months later. Authentic CEO called the acquisition “probably the biggest mistake I made,” speaking during a presentation at ICR last year.
Now it looks as though the company is mulling another filing as part of a strategic restructuring.
The company “is exploring a range of strategic options for the operations of Forever 21, and we are working diligently to achieve the best possible outcome,” a Forever 21 spokesperson said in an email to Retail Dive.
$25 million
That’s how much Kirkland’s shareholders finalized in an investment deal with Beyond, the companies announced Wednesday. Beyond now owns about 40% of Kirkland’s outstanding shares of common stock.
The companies first announced their strategic partnership in the fall.
“As we look ahead, together with the Beyond team we will continue to leverage Kirkland's core strengths including our Merchandising, Store Operations and Supply Chain expertise and infrastructure to build a cohesive omni-channel strategy for Beyond's portfolio of iconic brands,” Kirkland’s CEO Amy Sullivan said in a statement. “Plans are underway for our first Bed Bath & Beyond store opening later this year, and we look forward to continuing to explore opportunities to maximize the value of our partnership.”
What we’re watching
Can Nike, intentionally, repeat history?
The keys to Nike’s future success could be hiding in its past. In a client note this week exploring Nike’s current turnaround efforts, BMO Capital Markets said Nike itself could hold a good playbook for addressing its problems.
The analysts, led by Simeon Siegel, said Nike’s current problems “oddly echo” its issues in 2015 to 2018, when Adidas earned two years of stronger incremental revenue growth than Nike in North America. Back then, the activewear giant got out of its rut by responding to Adidas’ Ultraboost shoe with more launches of its own, cleaning up its excess inventory, elevating the Jordan brand and investing in demand creation.
Even before Nike “roared back,” its doldrums were short-lived — and not as deep as one would think, according to Siegel.
“Interestingly, though Adidas was gaining mindshare and arguably firing on all cylinders, Nike still drove more incremental revenue dollars for years as it over-pushed Jordans/classics,” Siegel wrote. “It took a surprisingly long time for NKE footwear units to decline and when they did they only stayed down for 3 quarters.”
Now, Nike is looking to end its losing streak with product innovation, bolder marketing and a return to some of its wholesale partnerships. Will its declines be just as short-lived this time around?
