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 Dollar General’s latest home collection to consumers’ growing uncertainty, here’s our closeout for the week.
What you may have missed
Wacoal acquires Glamorise
Japanese intimates company Wacoal has acquired Glamorise Foundations, a U.S.-based company that sells intimates primarily online.
Wacoal said the deal strengthens its position in the U.S. — a market it entered in 1985 — builds out its DTC and e-commerce operations, and establishes a profitable business platform. The move also enhances Wacoal’s product development capabilities in the larger band and cup size segment.
"We are proud and excited to welcome Glamorise to the Wacoal group,” Mitch Kauffman, president and CEO of Wacoal America, said in a statement. “Glamorise like Wacoal is driven by the desire to design and produce products that offer premium quality and superior fit, while making women feel and look their confident best. This acquisition greatly enhances Wacoal's position and experience in the digital commerce space and enables us to serve more women than ever before.”
Dollar General launches home collection with Holly Williams
Dollar General this week debuted a home collection from singer-songwriter Holly Williams. The collection spans decor, kitchen, bedding and housewares.
The collection takes inspiration from Williams’ music and Southern roots, according to a company announcement.
The “XO Holly by Holly Williams” collection launches this month across 20,000 Dollar General locations and features over 50 products priced between $1 and $20, with the majority under $5.
Retail therapy
The Buzz word
Premixed cocktail brand BuzzBallz is painting the town pink this spring with the Pink Lemonsqueezy One Night Lemonade stand, a mobile pop-up housed inside the largest BuzzBallz ever built.
The 10-foot spherical stand will roll into select cities to promote the company’s pink lemonade flavor, according to a company press release.
"Nothing says warm weather like a lemonade stand, but subtle has never really been our thing," Jess Scheerhorn, president of BuzzBallz, said in a statement. "We took a classic idea and gave it a literal glow up. Our One Night Lemonade Stand is perfectly round, impossible to miss, and built for the fans who know that the best lemonade comes in a ball and is served under neon lights."
What we’re still thinking about
35%
That’s how much Converse revenues are down year over year, coming in at $264 million in the third quarter, according to parent company Nike.
There has been recent speculation that Nike is considering a sale of the underperforming brand, with BNP Paribas Equity Research senior analyst noting that Converse’s underlying health is “more precarious” than it may seem.
Overall, Nike’s revenues were flat year over year at $11.3 billion, with wholesale revenue increasing 5% and direct revenue dropping 4%.
What we’re watching
Consumer sentiment getting ‘quite ugly’ amid surging gas prices, uncertainty over war
Addressing the nation Wednesday, President Donald Trump said the Iran war will continue for as long as three more weeks and called on other countries to help open the Strait of Hormuz – and so this test of consumers continues. Navy Federal Credit Union Chief Economist Heather Long called this “a pivotal week for the war in Iran.”
“Gas prices at $4 again have a major psychological impact and prices are unlikely to go back down until there is a clear resolution to the war at the Strait of Hormuz,” she said in emailed comments.
February retail sales were strong, rising 5% year on year in the segments Retail Dive covers. Volumes were in positive territory, up 1% for core retail, per GlobalData. But consumer confidence has taken a beating of late, with even higher-income households registering a gloomier short-term outlook, due to an iffy stock market, according to the University of Michigan’s monthly survey.
Jefferies analysts measured consumer sentiment just 14 points above eight-year lows and 10 points down from the start of the year, according to a Thursday client note. The Conference Board measured an uptick in confidence, though it also found rising worries about prices and jobs.
“Sentiment is beginning to get quite ugly,” Jefferies said.
