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 Velveeta truffles to a responsibility change at Abercrombie & Fitch, here’s our closeout for the week.
What you may have missed
Abercrombie & Fitch Co. CFO picks up COO role
Chief Financial Officer of Abercrombie & Fitch Co, Scott Lipesky, was named the company’s chief operating officer on May 4. He will also continue to act as the retailer’s CFO — a role he has held since 2017, according to a filing with the Securities and Exchange Commission.
Lipesky came to Abercrombie from home furnishings company American Signature, and has worked in various leadership roles at Abercrombie & Fitch Co over nine years, including acting as CFO of its Hollister brand.
Shein taps Queen of Raw to help it repurpose excess inventory from other retailers
Fast-fashion retailer Shein this week announced a partnership with Queen of Raw, a global circular economy technology company.
Queen of Raw’s technology aims to solve excess inventory issues within Fortune 500 companies. Through the partnership, Shein will work to repurpose other retailers’ excess inventory, allowing it to avoid consuming new textile resources, according to a company press release.
The two companies will work together to source materials from companies looking to offload excess fabric inventory rather than throw it away.
The collaboration is part of a larger effort by Shein to promote a fully circular textile industry by 2050.
"Partnering with Queen of Raw supports our advancement to a more circular system, starting with the design of our products," Caitrin Watson, director of sustainability at Shein, said in a statement. "Since Shein's business model is to create products on demand, we don't accumulate excess fabric liability, which is one of the biggest financial and sustainability challenges for the fashion industry. We are poised to purchase high-quality surplus materials, helping us to reduce the environmental impact of our products and become a circular solution for other businesses."
Nike names a new board member
Nike this week announced the appointment of Maria Henry as its newest board of directors member.
Henry, a former c-suite executive from Kimberly-Clark, joins the board as the brand navigates struggles with inventory. Though the retailer saw financial gains in its most recent quarter, excess merchandise remains a pain point.
“Maria’s strong global and financial leadership, as well as her strategic contributions across multiple industries, make her an outstanding addition to our board,” Mark Parker, Executive Chairman of Nike, said in a statement.
Retail therapy
Velveeta, for some reason, creates cheesy chocolate truffles
When you think of a decadent chocolate truffle, what is the first flavor that comes to mind? If you guessed Velveeta cheese, then you’re in luck. The cheese brand, owned by Kraft Heinz, has partnered with chocolate company Compartés Chocolatier to make TruffVels.
TruffVels are the first-ever chocolate cheese truffle, according to a company press release Tuesday. The white chocolate truffles are infused with Velveeta cheese and shaped like a pasta shell. For a mere $24.95, everyone can enjoy the elegant and refined flavor of a five-pack of Velveeta chocolate truffles.
Build-A-Bear rolls the dice with Dungeons & Dragons-themed offering
Just weeks after the “Dungeons & Dragons: Honor Among Thieves” movie was released, Build-A-Bear is leveling up its assortment to cater to the enormous fan base of the tabletop role-playing game.
The retailer, which has a dedicated “Bear Cave” website for its adult fans, will sell a red dragon plushie and a Dungeons & Dragons bear-sized T-shirt, according to a company press release. The dragon bears the D&D logo on one of its paws and features scaly fur and “a mischievous toothy grin.”
The effort is part of a broader push by the toy brand to move beyond a kids-focused audience and embrace the adult fans and collectors of its products. According to Build-A-Bear, teens and adults now comprise almost 40% of its customer base. This year alone, the company has released everything from Peeps-inspired plushies for Easter to a Super Bowl pop-up offering NFL-inspired tees and hoodies.
The retailer’s Bear Cave website features the same cutesy products as the rest of its website, except here the plush toys are drinking cocktails and partying. Other more adult-themed collections include Ted Lasso, The Office and Doctor Who.
What we’re still thinking about
$4 billion
That’s how much Tempur Sealy plans to pay for Mattress Firm, the companies said Tuesday. The terms of the deal include a cash consideration of $2.7 billion from Tempur Sealy, which includes the repayment of Mattress Firm’s debts, and $1.3 billion in stock issued to Mattress Firm shareholders. The deal is expected to close in the second half of 2024.
In their joint announcement, the companies said Mattress Firm’s brick-and-mortar retail stores, e-commerce operations, and sleep-tracking platforms complement Tempur Sealy’s DTC operations.
Earlier this year, Mattress Firm backed out of plans to go public, citing IPO market volatility. But Mattress Firm, which has about 2,300 brick-and-mortar stores, still needed to deal with about $1.2 billion in long-term debt and total liabilities of $3.5 billion. The company was briefly in bankruptcy in 2018
90
That’s the approximate number of people who will lose their jobs at Dollar Tree’s corporate office in Virginia. According to the company and to a WARN notice filed with the state, the affected employees worked in Dollar Tree’s enterprise contact center. They’re being laid off because the company, which also owns Family Dollar, has chosen to outsource that work.
The layoffs are expected to happen in three rounds, on or about June 23, Aug. 25 and Oct. 27.The company said it’s providing severance pay and outplacement services. Despite the layoffs, the retailer said it sees significant growth opportunities. Dollar Tree said in a May 2 regulatory filing it thinks the market can support over 10,000 Dollar Tree stores and 15,000 Family Dollar stores in the U.S. and Canada.
What we’re watching
The latest mall shooting underscores how vulnerable retail is to gun violence
Crime is a big topic in retail these days, with the industry focused on organized retail crime. However, the May 6 mass shooting at a Dallas-area mall, where eight people died, was a reminder of how vulnerable stores and malls are to gun violence. For retail venues, which in many ways function as public spaces, the problem has been escalating for decades. Yet experts warn it’s only likely to get worse unless firearms – especially semi-automatic rifles like the one used by the gunman in Allen, Texas, last week – become subject to more restrictions.
For now, industry groups are emphasizing their work to prepare malls and retailers for incidents involving guns, rather than tracking the scope of the problem or working to enact limits. Meanwhile, it’s unclear when the Allen Premium Outlets near Dallas will reopen. In a statement, the Simon Property Group-owned center said that would be up to the community and its retail tenants.
