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 the world’s largest cowboy hat to rising childcare costs, here’s our closeout for the week.
What you may have missed
Torrid’s CFO departs
Torrid Chief Financial Officer Paula Dempsey will exit to pursue a new opportunity, the apparel retailer announced Monday. She worked at the retailer for just under four years after leaving Mattress Firm, per LinkedIn.
While Dempsey will remain in the role through mid-November to support a transition, Torrid has named Will Langley as interim CFO, effective Wednesday. Langley comes from Belk where he worked for about 20 years until 2025.
“I am excited to welcome Will to Torrid,” CEO Lisa Harper said in a statement. “He is a seasoned finance leader whose breadth of experience and strategic contributions at Belk make him well suited to guide our finance organization. Having worked with Will for many years, I look forward to the perspective he will bring to Torrid as we continue to execute on our priorities.”
Harper served as CEO of Belk from 2016 until 2021.
Cooper Flagg makes himself at home at Foot Locker
The latest iteration of Foot Locker’s “Hoops Lives Here” campaign went live this week, starring NBA player Cooper Flagg. In the spot, Flagg helps out Foot Locker store associates by stocking the store with the latest releases from his brand sponsor, New Balance.
It’s part of a broader strategy by Foot Locker to invest in basketball. In addition to the campaign, Foot Locker recently became the athletic footwear retailer for the New York Knicks and this week celebrated the team’s championship win with exclusive footwear and apparel at its 33rd Street store in New York City.
"Foot Locker has always been the home for basketball, connecting fans to the athletes, products and culture that define the game," Foot Locker Chief Marketing Officer Brett O'Brien said in a statement. "As we tip off a new NBA season, we're proud to partner with New Balance on this new chapter of 'Hoops Lives Here,' bringing fans closer to the game through product, storytelling and experiences."
Retail therapy
Everything really is bigger in Texas
Western boot brand Tecovas and Circuit of The Americas have teamed up to introduce the world’s largest cowboy hat at The Circuit. And they’ve got the Guinness World Records certification to prove it.
The hat is a recreation of Tecovas’ Cattleman Cowboy Hat, and its debut comes ahead of the Formula 1 United States Grand Prix.
While the sheer size of the hat is remarkable — 43 feet wide by 47 feet long by 17 feet tall, not including piers — what’s arguably most impressive is that the structure features a fully-operational bar under the hat where patrons can enjoy a drink.
"The World's Largest Cowboy Hat belongs in Texas, and there's no better place to welcome fans from around the world with a statement this big," Bobby Epstein, chairman of Circuit of The Americas, said in a statement. "This is a beautiful piece of art with a practical purpose- a place for fans to gather, enjoy some shade, and experience a little Texas hospitality.”
What we’re still thinking about
$1.275B
That’s how much Belk secured in new financing from Wells Fargo and Pathlight Capital. The financing is a $900 million asset-based revolving credit facility and a $375 million first in, last out term loan, according to a Tuesday press release from Pathlight Capital.
The five-year financing replaces Belk’s current ABL, FILO and securitization facilities. The department store will use it to finance its capital needs, seasonal inventory and other corporate purposes.
"This opportunistic financing represents an important milestone and reflects the continued strength in Belk's business by providing us with the flexibility to continue investing in our business and serving our customers," Belk CFO Vince Phelan said in a statement.
What we’re watching
Spiking child care costs add to U.S. consumers’ financial burden, rising more than rent or medical care
Consumers, especially those in lower-income households, are under immense financial pressure heading into the holidays. Affordability has become a watchword in mid-term election campaigns, and concerns about prices and the job market recently sent consumer sentiment to multi-year lows.
Bank of America economic experts recently found that the cost of child care is adding to those woes. The share of U.S. households whose monthly child care costs top $2,000 has more than doubled in the last three years, as those paying $1,000 or less has declined, according to research this week from the Bank of America Institute. Last month, child care and school fees rose more than expenses like rent and medical services, according to the report, citing the Bureau of Labor Statistics.
The situation is affecting middle-aged generations most. More than half of households paying for child care were older millennials, followed by younger millennials (20%) and Gen X (16%), Bank of America found. Over the past three months, the growth in older millennial households earning more than one paycheck has abated, suggesting that child care costs could be influencing their decisions about work — something that affects women in particular, the researchers found.
