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 Purple’s refinancing to thieving Macy’s employees, here’s our closeout for the week.
What you may have missed
Don’t fret – Gibson opening second flagship guitar store
The second Gibson Garage is set to open on Feb. 24 just off Oxford Street in London. It’s also the company’s first flagship store outside the U.S. The other Gibson Garage is located in Nashville, Tennessee. Inside the new store, guests will have an opportunity to play electric and acoustic guitars from Gibson, Epiphone and Kramer. The store will also feature guitar pedals, musical accessories, apparel and gifts.
And like the Nashville location, the London spot will also serve as a venue for regular live performances, showcases and panel discussions. Additionally, the Gibson Gallery, a bi-annual revolving gallery wall, will highlight the photography and art of British artists and musicians.
Gibson President and CEO Cesar Gueikian said London was an obvious choice for the brand’s second flagship store location, “given it’s one of the most cosmopolitan cities in the world with a highly influential and vibrant musical ecosystem.”
Petco and Nationwide announce customizable pet insurance plans
Petco and Nationwide on Tuesday announced a partnership to provide customizable pet health insurance, according to a press release. Customers can build a policy specific to their pet and budget on petco.com. Insurance plans are available for dogs, cats, reptiles and rodents alongside many avian and exotic pets.
The insurance covers veterinary expenses for accidental injuries like broken bones, lacerations, poisoning and various incidents. Shoppers can choose to add coverage for expenses related to diagnosis and treatment of an illness. Pet parents can choose for their plan to have wellness coverage, which includes routine care like checkups, vaccinations and flea and tick prevention.
Plans in some areas start at $16 a month for dogs and $9 a month for cats. Upon enrollment, members have access to exclusive discounts and savings on vet services at Petco's Vetco hospitals and mobile clinics. Petco has more than 280 Vetco hospitals and approximately 1,450 weekly mobile vaccination clinics across the U.S.
Those already members of Nationwide's broader pet insurance also earn a 10% discount when visiting a Vetco Total Care hospital or Vetco Vaccination Clinic.
Purple refinances debt
Purple this week announced it refinanced some of its debt.
The DTC mattress brand said that Coliseum Capital Management and No Street Capital assumed two of the company’s primary outstanding debt facilities: a term loan credit agreement and an asset-backed loan credit agreement. The debt facilities will be consolidated into an upsized term loan of $61 million with about $21 million of incremental capital available after expenses, a payment-in-kind interest option and an additional incremental term loan of up to $19 million. Following the transaction, Purple’s net liquidity will increase from $26 million to $48 million.
Purple formed an independent special committee of its board to work alongside company management to direct and negotiate the transaction. Coinciding with the term loan deal, the company issued warrants to lenders for 20 million Class A common stock, priced at $1.50 per share.
“We believe the Company is positioned to grow revenue in 2024, despite challenging industry conditions, and with specific cost saving initiatives under way, we also expect incremental improvements in EBITDA and cash flow. We are confident that with continued, focused execution by our team and a considerably strengthened capital structure, we are well positioned to lean into our growth initiatives and continue to take market share,” CEO Rob DeMartini said in a statement. “This transaction places our company on strong financial footing and reaffirms our unwavering commitment to meeting the needs of our wholesale partners, direct customers, and suppliers.”
Retail therapy
Finally, a reason to go to the grocery store
Dolly Parton this week entered into an exclusive agreement with Duncan Hines’ parent company, Conagra Brands, to develop a line of retail food items. The line will include frozen, refrigerated, grocery and snack items inspired by comfort food, according to a press release.
New products will launch this month, starting with an expanded line of Duncan Hines’ mixes. Parton’s first item in the breakfast category, Buttermilk Pancake Mix, will come to stores this winter.
“I loved co-creating my Duncan Hines line with Conagra and I’m thrilled we’re going well beyond the baking aisle with new items across the store,” Parton said in a statement. “We’re looking to continue to inspire special moments in the kitchen, with some of my family’s favorite recipes, and I think people are really going to love them!”
White Castle… how romantic
Every Valentine’s Day, White Castle restaurants are transformed into “Love Castles” with decorations, hostess seating and tableside service. This year, White Caste announced a take-home meal kit for Valentines' Day, according to a press release on Wednesday.
The “Love Kit” comes with 12 sliders in themed boxes, dill pickles, preparation instructions, a White Castle scented candle and “Craventine” Valentine’s cards.
“The demand for in-Castle reservations on Valentine's Day has started to exceed our capacity,” Jamie Richardson, vice president at White Castle, said in a statement. “The new Love Kit is perfect for Cravers near and far to make memorable moments at their very own Love Castles! And it's a great reminder that no matter where you live, you can satisfy your cravings with either a memorable moment like the Love Kit delivered to your door or a visit to wherever you buy groceries.”
The kits are limited supply and can be purchased on the brand’s website, House of Crave, for $49.
Also as a part of the initiative, White Castle released a Valentine’s Day-themed merch collection. The collection includes a robe, heart-shaped sunglasses and T-shirts with two design options.
What we’re still thinking about
1,000
Target said on Wednesday it plans to add more than 1,000 new wellness-related products to its assortment, including apparel, workout gear, food and beverages, self-care items, and vitamins and supplements.
When guests enter Target, the company said they will find a curated assortment of wellness-related products and prominent displays of top wellness brands in multiple departments, including health and beauty. The red bullseye-branded retailer also launched an online destination that highlights products, deals and wellness-related ideas. Target said it wants to make it “fun and easy” for guests to discover new wellness-focused products.
Target regularly works to align its offerings with consumer interests and trends. Last year, the company said it planned to add thousands of items to its beauty product assortment. It also recently committed to broadening its assortment of products at or below a $15 price point.
62
That’s how many years one employee may have stolen from Macy’s.
After implementing RFID sensor technology, the department store discovered that some longtime employees were stealing, including one person who had been with the company for more than six decades.
“I like to think they were not stealing for 62 years. But they were stealing from us, and they had been working for us for 62 years,” Joe Coll, Macy’s vice president of asset protection operations and strategy, said during a presentation at the National Retail Federation’s conference this month.
That means the employee could have been stealing from the department store since before the U.S. put a man on the moon in 1969, and potentially throughout the presidencies of John F. Kennedy, Lyndon B. Johnson, Richard Nixon, Gerald Ford, Jimmy Carter, Ronald Reagan, George Bush, Bill Clinton, George W. Bush, Barack Obama, Donald Trump and Joe Biden.
What we’re watching
Sephora continues to shake up leadership ranks
In the past couple of weeks, Sephora has made two leadership changes, according to media reports. The company named Anca Marola its global chief digital officer, according to Women’s Wear Daily, effective Feb. 12. In a separate move, Sephora’s head of Greater China, Maggie Chan, has left the company, per Business of Fashion.
Sephora did not respond to requests for comment on either change, although a post on Chan’s LinkedIn said she just started a position as operating partner at Advent International. In the new role as chief of digital, Marola is set to join Sephora’s global leadership team, according to the Women’s Wear Daily report, and will report to CEO Guillaume Motte. Motte has led the beauty retailer since late 2022.
Sephora also named a new CEO of its North America region in September, elevating Global Chief Merchandising Officer Artemis Patrick to take over from the retiring Jean-André Rougeot. The leadership changes come as both Sephora and rival Ulta continue to build out shop-in-shop relationships with Kohl’s and Target, respectively, and compete for up-and-coming brands.
