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 Petco’s expanded partnership with Canadian Tire to Peeps’ tie up with Pepsi, here’s our closeout for the week.
What you may have missed
Belk to open more outlet stores
Regional department store Belk opened its first outlet store earlier this month in Greeneville, Tennessee. When asked if there were plans to open additional locations, the company said that it was waiting to see how customers responded to the store.
The retailer quickly moved ahead with expansion plans, though. It will open between four and six Belk Outlets by the middle of April, according to a company spokesperson.
Moody’s on Tuesday downgraded Belk to a Caa3 rating from Caa2. The downgrade “reflects governance considerations particularly Belk’s unsustainable capital structure that increases the likelihood of default,” Moody’s wrote.
ThredUp launches discount thrift e-commerce shop
Despite no formal announcement from the company, apparel resale company ThredUp has debuted a new discount thrift brand called 777Thrift, which was initially reported by Modern Retail. Although the website’s About Us section says it is powered by ThredUp, a spokesperson for company declined to comment in an email sent to Retail Dive.
All secondhand items on the webstore are $7 and under with women’s and kid’s options. It also boasts that thousands of items are added to the site daily.
Louis Vuitton is happy with Pharrell Williams as creative director
It might seem crazy what I'm 'bout to say. Pharrell Williams – a Grammy-winning music producer, film producer, rapper and writer whose most high-profile fashion statement may be his giant Vivienne Westwood-inspired “buffalo” hat – is Louis Vuitton’s new Men’s creative director.
He takes on a role left empty after the death of Virgil Abloh at 41 in 2021.
Williams has experience in the fashion world, including as co-founder of streetwear brands Billionaire Boys Club and Ice Cream, with Japanese fashion designer and DJ Nigo. He has also partnered with Adidas on numerous sneaker and other apparel projects, and previously collaborated with Louis Vuitton and Chanel, among others.
He will debut his first collection as Louis Vuitton creative director in June during Men’s Fashion Week in Paris, according to a press release from corporate parent LVMH.
“I am glad to welcome Pharrell back home, after our collaborations in 2004 and 2008 for Louis Vuitton,” Louis Vuitton CEO Pietro Beccari said in a statement.
Petco, Canadian Tire expand partnership for more shop-in-shops
Building on an existing partnership that was formed four years ago, Petco this week announced it will open shop-in-shops in 90% of Canadian Tire’s locations.
The pet retailer said that about 90% of Canadian consumers live within 15 minutes of a Canadian Tire, and this shop-in-shop expansion will allow Petco to better access Canada’s $5.3 billion pet market.
“Through our exclusive expanded partnership with Canadian Tire, we're growing awareness of — and access to — Petco's health and wellness products within Canada's dynamic and rapidly growing pet market," Petco Chief Merchandising Officer Amy College said in a statement. “These shop-in-shops will continue to bring innovation to existing Canadian Tire pet parents and attract new customers for years to come."
The shop-in-shops will offer more of Petco’s exclusive products and private labels, including its WholeHearted line of premium pet food and its Reddy brand of pet clothing.
Retail Therapy
There’s nothing like the taste of Peeps and Pepsi in the morning
Have you ever wanted to drink a Peeps marshmallow? Well Pepsi has reignited its collaboration with the brand just in time for spring, bringing its marshmallow flavored soda to retail for a limited time, the company announced Tuesday in a press release.
The vibrant yellow cans first debuted during a limited drop of 3,000 in 2021, and the companies have brought it back based on the attention it received. The launch is coupled with a Snapchat-based augmented reality egg hunt, where customers can win a trip for two and exclusive merchandise.
Date night at McDonald’s with Cardi B and Offset
Just in time for Valentine’s Day, McDonald’s announced Monday the Cardi B and Offset meal consisting of the famous couple's regular orders from the fast food chain. The two appeared in a McDonald’s Super Bowl commercial reciting each other’s favorite menu items leading up to the launch.
Cardi B’s signature order is a plain cheeseburger, barbecue sauce and a large Coca-Cola. Offset orders a Quarter Pounder with cheese and a Hi-C Orange Lavaburst, according to the release. Also included in the meal is a large fry and an apple pie to share. All of the food items come together to make the meal at around $13.49. Prices of the meal may vary by region.
Other artists have had meal partnerships with the fast food chain such as Travis Scott, BTS and Saweetie, but this is the company’s first celebrity duo meal, according to the release. The Cardi B and Offset meal also has its own exclusive merch collection of shirts, hoodies, shorts and more.
What we're still thinking about
264
That’s how many stores Tuesday Morning is planning to close as a part of its recent bankruptcy. The cuts would bring the discount retailer’s store count down to 200 locations. Real estate and lease-related costs are one of Tuesday Morning’s largest expenses and the closures are a “critical component” of the company’s restructuring. This is Tuesday Morning’s second bankruptcy since 2020.
230
That’s the number of employees The RealReal plans to lay off as it looks to cut operating expenses. The figure is equal to about 7% of the company’s total workforce. The retailer is also closing several stores and two offices, and reducing its office space in other areas. It’s the latest in a string of layoffs across the retail industry, and it was also not the only layoff announcement this week. Neiman Marcus also said it would be cutting jobs: Those are expected to impact a little under 5% of its workforce, or about 500 people.
What we're watching
After a spike at the height of the pandemic in 2020, followed by a lull in 2021 and 2022, bankruptcies are picking back up again. In the first two months of the year, some of the larger companies to file for bankruptcy include cosmetics maker Forma Brands, home decor retailer Tuesday Morning, mattress maker Serta Simmons and Party City.
Bed Bath & Beyond, which slid precariously close to bankruptcy in recent months, received a last-minute loan that kept the company out of Chapter 11. And late last year, Sears Hometown Stores also filed for bankruptcy protection.
The consumer discretionary sector led bankruptcy filings, followed by healthcare and industrials. S&P Global Market Intelligence reports there were 53 corporate bankruptcies in January, up from 50 in December. While not all of those bankruptcies are connected to retail, the uptick follows a historically slow year, according to that analysis. S&P Global also notes that a “widely anticipated recession” this year will continue affecting the economy.
