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 eBay’s harassment settlement to Etsy completing its sale of Depop, here’s our closeout for the week.
What you may have missed
Macy’s big sign comes down without a fight
As of last weekend, the giant red billboard sporting Macy’s white star logo, on a building tucked into one corner of the department store’s Herald Square flagship in New York, is gone.
This time, it’s gone without a fight, as Macy’s says the sign is outmoded, a stark contrast to five years ago, when the retailer went to court to keep the owner from leasing it to another company. At the time, Macy’s — which used the space for decades — believed Amazon would take it over and argued that would cause “incalculable damage.” Ultimately, the sign stayed with Macy’s.
What will become of the space remains a mystery, though. Steven Kaufman, president of the Kaufman Organization, the managing agent for the building where the billboard once sat, didn’t respond to requests for more information.
In an email, a Macy’s spokesperson said that “refreshed and dynamic branding for Macy's Herald Square that honors our heritage while reflecting the future of our flagship” will soon be unveiled, but in a follow-up call didn’t provide specifics about whether that involves another billboard or something else.
“For generations, the iconic sign at Macy’s Herald Square has been a recognizable part of the 34th St. experience and a symbol of our deep roots in New York City,” the spokesperson said. “As the neighborhood continues to evolve, the current sign – while beloved – is outdated and is being removed as part of broader updates by the billboard owner to modernize the space.”
Depop joins the eBay portfolio
Etsy has officially sold Depop to eBay for $1.4 billion in cash, the companies said Thursday. The artisan marketplace plans to use the proceeds for “general corporate purposes,” including its share repurchase program.
“This transaction allows us to move forward with a clear focus on building the best marketplace for Etsy's buyers and sellers, and is a strong outcome for our shareholders,” Etsy CEO Kruti Patel Goyal said in a statement. “We're proud of what the Depop team has built - a truly differentiated brand with a passionate community - and we wish them continued success as part of eBay."
Depop will operate as its own business within the broader eBay portfolio, “retaining its distinct brand, platform, customer experience, and culture,” eBay said in a press release. EBay intends to help Depop scale in areas such as shipping, personalization, seller services and compliance, while maintaining the marketplace’s unique resale focus.
"This combines two distinct customer experiences and expands our reach with the next generation of buyers and sellers," eBay CEO Jamie Iannone said in a statement. "Our goal is to preserve Depop's strong brand, community, and product experience, while helping the team accelerate the roadmap that is already underway and explore synergies with eBay in areas that can supercharge our combined growth potential."
Retail Therapy
Petco gets ready for howl-oween
Petco this week launched its latest Halloween collection, which features over 300 products.
The collection includes costumes, toys, beds and more, with prices starting at $3 and most items coming in under $20.
"Halloween has evolved from a fun seasonal moment into one of the biggest celebrations for pet parents," Jenny Wolski, senior vice president and general manager of merchandising at Petco, said in a statement. "Today, families want to include their pets in the festivities with products that reflect their unique personalities while putting calm and safety at the forefront.”
Pet costumes include a taco, shark, bat and devil for a variety of animals like dogs, cats, guinea pigs and bearded dragons.
What we’re still thinking about
$56M
That’s how much eBay and some of the company’s former employees will pay in a settlement to David Steiner and Ina Steiner, reporters and founders of the news site EcommerceBytes. The couple accused the company of a cyberstalking and harassment campaign.
The agreement resolves a civil lawsuit against eBay and former employees, including then-CEO Devin Wenig, CCO Steve Wymer, and senior vice president of global operations Wendy Jones.
“[W]hat the Steiners were subjected to by former eBay employees in 2019 was wrong, reprehensible and should never have happened. We condemn, in the strongest terms possible, the employees who perpetrated and pled guilty to criminal charges for the misconduct against Ina and David Steiner,” eBay wrote in a press release. “We continue to extend our deepest apologies to the Steiners. This agreement is consistent with our commitment to fairly compensate the Steiners and fulfills our efforts to make things right.”
The Steiners will receive $48.7 million in compensation, including $46.15 million from eBay, $2 million from Wenig, $500,000 from Jones, and $50,000 from Wymer.
Additionally, eBay will fund $6 million to various nonprofit organizations, and Wenig will contribute an additional $1 million to a charity dedicated to protecting First Amendment rights.
What we’re watching
Reformation officially starts trading on NYSE
Direct-to-consumer fashion brand Reformation on Thursday announced the official public offering of over 14 million shares of common stock on the New York Stock Exchange priced at $15. The offering is a combination of shares from Reformation and certain of its existing stockholders, per a Thursday press release.
Shares began trading Thursday under the ticker symbol "REF" and the offering is expected to close on Friday.
The brand earlier this month revealed in a filing that it was targeting a valuation of up to $1 billion, if the common stock hit a price target of $17. Reformation plans to use about $125 million of the net proceeds to partially repay a loan and around $9.5 million of the net proceeds to purchase more outstanding shares and stock options.
