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 pumpkin spice’s kickoff to Academy Sports & Outdoors newest shop-in-shop concept, here’s our closeout for the week.
What you may have missed
Arc’teryx vet to lead Helly Hansen’s North America sports business
Kontoor Brands has appointed C.J. King to be general manager of Helly Hansen’s North America sports businesses, effective Monday.
King spent a decade at premium outdoor specialty brand Arc’teryx, where he held various roles, including vice president of North American wholesale, vice president and general manager of North America, and vice president of global commercial.
At Helly Hansen, King will oversee all aspects of the brand’s North America sports business, including its commercial strategy and marketplace execution. He will report to Børre Hegbom, senior vice president and global head of Helly Hansen.
King’s appointment gives “greater credibility to the U.S. growth story,” Wells Fargo analysts led by Ike Boruchow said in a Thursday note. “Mr. King's experience draws stark parallels to [Helly Hansen’s] current positioning as it looks to expand an under-penetrated U.S. biz.”
Kontoor Brands acquired Helly Hansen last year, and CEO Scott Baxter earlier this month called the brand its “growth engine.”
Avon North America and Avon International reunite following acquisition deal
Global investment firm Regent has agreed to acquire LG H&H's interest in Avon North America. Following the closing of the deal, Avon’s North American and International businesses will be reunited after about a decade. Regent acquired the Avon International business from Natura last year.
“Bringing Avon North America and Avon International back together gives Avon clearer ownership, a shared strategy and a stronger foundation for growth,” Michael Reinstein, founder and CEO of Regent, said in a statement. “Our job now is to put the scale of the combined business behind better products, sharper execution and a stronger earning opportunity for the people who sell them."
The deal is expected to close Tuesday.
Retail therapy
It’s pumpkin spice everything season
The fall equinox is still a month away, but what are such arbitrary dates to retailers looking to cash in on one of the season’s biggest harbingers?
Starbucks’ pumpkin spice latte rose from the dead Tuesday to haunt menus nationwide, and others are swiftly hitching their efforts to the pumpkin hay ride. Krispy Kreme’s pumpkin spice original glazed doughnut returned on Thursday and will only be available through Sunday, though the company teased “more fall awesomeness to come.”
Need something weirder? What about pumpkin pie dessert hummus?
The season isn’t just for those looking to eat pumpkin spice, though. Starbucks also has PSL charms, water bottles, hats and mugs. Whatever your fancy, pumpkin spice everything season is here to deliver.
And if you’re not a pumpkin spice fan — well, it’s time for an early hibernation.
What we’re still thinking about
200
That’s how many Ariat in-store shops will launch inside Academy Sports & Outdoors this fall. The spaces will offer customers an immersive experience into Ariat’s Western and work apparel and accessories.
The spaces will be tailored to each store, featuring products like Western boots and premium denim.
"We're excited to bring customers a new way to experience Ariat at Academy,” Chief Merchandising Officer Matt McCabe said in a statement. “We've built a highly visual endeavor that showcases branded walls, fixtures, tables, and features within a space where shoppers can check out what's new, pick up their Ariat favorites, and prepare for more fun outdoors."
What we’re watching
What’s happening in off price?
It’s conventional wisdom that off-price retailers thrive in all kinds of economies. When times are tough, people at all income levels head to off-price stores to find things within their budgets. In boom times, people go for the treasure hunt.
In Q2, though, two of the three major off-price chains — Burlington and TJX Cos.’ Marmaxx division, which includes T.J. Maxx and Marshalls — posted fairly weak comp sales. Does this suggest a slowdown in a sector known for its resilience?
TJX executives blamed merchandising flubs. Burlington said new stores cannibalized existing ones a bit, plus its customers have grown super-cautious, but emphasized that comps are up 7% on a two-year stack.
Enter Ross. The 10% year-on-year comp growth there suggests that the other two may have sacrificed some market share to a peer, one that has been hard at work improving its merchandising and stores. It’s an unusual turn of events in a retail segment where share usually comes from full-price retailers, particularly department stores, though some analysts did see it coming.
“Ross is now retail’s boss,” Wells Fargo analysts said in a research note this week.
