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 Pottery Barn’s new president to what’s going on with Sephora at Kohl’s, here’s our closeout for the week.
What you may have missed
REI Union says it turned away ‘thousands’ from major sale
The REI Union, which authorized a boycott of the outdoors retailer’s anniversary sale earlier this year, on Wednesday said it had turned away “thousands” of shoppers over the course of those 10 days. REI’s sale began May 15 and ended on Memorial Day, and the retailer teased discounts on more than 6,000 products.
The union said 70,000 customers pledged not to shop the sale and that workers reported their stores missed daily sales targets for the event.
REI said in its own press release that 20 million customers shopped the sale, and that the event exceeded forecasts by more than 3% and came in 7% above budget. The release did not mention the union’s efforts, though an REI spokesperson pointed back to the press release when asked about the impact of the union’s actions.
The REI Union was in monthslong negotiations with REI over a contract and said earlier this year that the retailer illegally declared an impasse to institute changes to pay and benefits. REI at the time defended the move and disagreed with the union’s characterization of it as illegal.
“These last 10 days proved co-op members’ solidarity with unionized green vests,” Jacob Lish, an REI worker from Minnesota, said in a statement from the REI Union. “We appreciate all the support they have given us as we continue to push for a fair contract with fair pay, predictable scheduling, and strong benefits.”
Williams-Sonoma names Pottery Barn president
Williams-Sonoma, Inc. has promoted Jennifer Kellor to president of Pottery Barn, replacing Monica Bhargava, who has left the company.
Kellor joined the company as an assistant buyer for the Pottery Barn catalog and has worked over the years to grow the Pottery Barn Kids and Pottery Barn Teen businesses. She also began serving as president of the Pottery Barn children’s brands in 2016.
“Over the course of her 29-year tenure, Jen has demonstrated an exceptional track record of driving growth and incubating brands,” Williams-Sonoma President and CEO Laura Alber said in a statement. “Jen’s deep brand leadership, merchandising, design, e-commerce and marketing expertise has led the Pottery Barn children’s home furnishings businesses to over $1.1 billion in annual revenues.”
Kellor most recently led Williams-Sonoma’s acquisition of college decor company Dormify.
Retail therapy
Mattel expands — brick by brick
Mattel announced the addition of seven new sets to its Brick Shop, according to a Thursday press release. The sets are targeted to next-generation and adult builders, and include partnerships with Lamborghini, Audi, Toyota, Aston Martin and Chevrolet.
The toy company will also introduce products this year in categories beyond automotive, including “Masters of the Universe” sets.
“Our mission is to create builds with elevated design, refined detail, and premium materials, so showing them off is as rewarding as the construction, and these new vehicles are along for the ride,” Ted Wu, general manager and global head of vehicles and building sets at Mattel, said in a statement.
Mattel introduced its Brick Shop last year as a new brand under its building sets category.
What we’re still thinking about
115
That’s how many stores Burlington plans to open this fiscal year.
The off-price retailer this week posted strong revenue gains of 14% in Q1 compared to last year, reaching $2.9 billion. Comparable store sales increased 6%.
Net income also improved nearly 14% in the first quarter, reaching $114.7 million from $100.8 million last year.
The retailer raised its full-year guidance, now expecting comp store sales to be in the range of 2% to 4%. Burlington also expects revenue to grow by up to 11% year over year and capital expenditures, net of landlord allowances, to be about $875 million.
What we’re watching
What’s happening with Sephora at Kohl’s?
Kohl’s wooed Sephora away from J.C. Penney in 2020, began opening the first shop-in-shops the following year and now the beauty spaces are in all Kohl’s stores. Two years ago, then-Kohl’s CEO Tom Kingsbury called the tie-up “a real coup,” repeating what various executives have said about it over the years — that it is driving sales and traffic to Kohl’s.
But Q1 was different. Sales at Sephora at Kohl’s dropped by low-single digits compared to the same period last year.
At Kohl’s, overall net sales fell 1.7% and comps fell just over 1%, according to the retailer’s report Thursday. Traffic in the quarter fell nearly 8%, per Placer.ai, which attributed the decline there and at other department stores to rising consumer caution.
Evercore ISI analysts now see “Sephora build disruptions” as a possible risk to Kohl’s performance. GlobalData Managing Director Neil Saunders said the unusual decline at Kohl’s Sephora spaces is worrisome.
“If traffic is under pressure, the gains the beauty business can make will be limited,” he said by email. “But overall, it’s a worrying trend as the beauty market is still growing nicely overall, so Kohl’s is underperforming in the space.”
