Retail News: Nordstrom Is Nation’s Favorite Fashion Retailer, New Market Force Study Finds

Annual Retail Study Also Uncovers Top Shoe Brands, And Trends In Consumer Confidence, Wearables And E-Commerce

Nordstrom’s fan base is as fervent as ever. For the fifth time in a row, Nordstrom ranked as the nation’s favorite fashion retailer in an annual retail industry study conducted by Market Force Information (Market Force). Market Force polled over 10,000 consumers for the study, which ranks top fashion retailers, reveals retail technology trends and looks at spending plans and habits.

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Market Force Information (Market Force) logo

The survey was conducted online in December 2016 across the United States. There was an overall pool of 10,714 respondents covering all four U.S. Census regions. Within the survey pool, 7,241 reported shopping for fashion at a favorite retailer within the past 90 days, and 5,494 reported shopping for shoes within the past six months. There was a broad spectrum of income levels, with 54% indicating incomes of over $50,000 a year. Respondents’ ages ranged from 18 to over 65. Approximately 75% were women and 25% were men. For the rankings, Market Force asked participants to rate their customer satisfaction with their most recent fashion retailer experience, and their likelihood to refer the brand to others. The results were averaged to attain a Composite Loyalty Score. Only retailers with at least 100 locations were included.

Dillard’s and T.J. Maxx Climb Higher in Rankings

Nordstrom, which has built a reputation for incomparable customer service, ranked first among the retailers studied with a score of 64%, up 6% from 2016. Dillard’s made even larger strides from last year, gaining 16% percentage points to rank second with 54%, and was closely trailed by off-price retailer T.J. Maxx, which earned a 53% score. Ann Taylor and Nordstrom Rack landed in the top of the rankings, after not making the cut last year, tying with Kohl’s for fourth place. [See Graph 1].

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Graph 1 – 2017 Fashion Retailer Rankings

Nordstrom Top for Value, Dillard’s for Creating Full Looks

In the attributes that set one retailer apart from the others, Nordstrom, Ann Taylor and Dillard’s all performed exceedingly well. Overall-winner Nordstrom ranked first for value, atmosphere, and ease of finding items, while Dillard’s took the No. 1 spots for creating a look and finding correct sizes. Ann Taylor landed in the top three in all of these categories. T.J. Maxx and Ross were called out for merchandise selection, and American Eagle has the fastest checkout speeds. [See Graphs 2 and 3].

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Graph 2 – Rankings by Attributes

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Graph 3 – Rankings by Attributes

Sizing up Sales Support

Despite the fact that sales assistance is shown to boost satisfaction and sales, less than half (42%) of consumers report being helped by an associate during their last shopping trip. Lane Bryant’s and Nordstrom’s associates assisted customers most often, while Target and T.J. Maxx shoppers received the least help. [See Graph 4].graph-4-sales-associate-effectiveness-by-retailer

Sales associates are the front-line representatives for retailers, and how they engage with customers can make or break the shopping experience and impact sales,” said Cheryl Flink, chief strategy officer for Market Force Information. “The research shows that 90% of customers who were assisted by a sales associate bought something. When customers were not assisted, only 82% made a purchase. That 8% difference in conversion rate is a key reason why fashion retailers need to invest in their sales staff.” Continue reading

The Business of Fashion: LVMH Moët Hennessy Louis Vuitton Announces Record 2016 Results

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €37.6 billion in 2016, an increase of 5% over the previous year. Organic revenue growth was 6%.lvmh-moet-hennessy-louis-vuitton

In the fourth quarter, revenue increased by 9% compared to the same period of 2015. Organic growth was 8%. The American market remains on a good track as does Europe. Asia, excluding Japan, continued its good momentum.

Profit from recurring operations reached €7 billion in 2016, an increase of 6%, to which all business groups, apart from selective distribution, contributed. This result compares to 2015 which was itself a year of growth. Operating margin reached 18.7%. Group share of net profit was €3 981 million, representing growth of 11%.

Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability. Continued innovation, entrepreneurial spirit and the quest for excellence: all Maisons continue to assert these core values while maintaining rigorous execution of their strategies on the ground. In an environment which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products.

Key highlights from 2016 include:

  • Record revenue and profit from recurring operations
  • Growth in the United States, Europe and Asia
  • Good performance of Wines & Spirits in all regions
  • The success of both iconic and new products at Louis Vuitton, where profitability remains at an exceptional level
  • Progress at Fendi
  • The sale of Donna Karan and the acquisition of Rimowa, a leader in luggage of excellence
  • Good momentum at Parfums Christian Dior driven by successful product innovations
  • Market share gains at Bvlgari and TAG Heuer
  • Growth at Sephora which strengthened its position in all its markets and in digital
  • Free cash flow of €3 974 million, an increase of 8%
  • Gearing of 12% at end of December 2016

WINES & SPIRITS: GOOD YEAR WITH PROGRESS IN THE UNITED STATES AND REBOUND IN SHIPMENTS TO CHINA

The Wines & Spirits Business Group recorded an increase in organic revenue of 7 %. On a reported basis, revenue growth was 5 %. Profit from recurring operations increased by 10 %. With volumes up 3%, solid growth continues for champagne and prestige cuvees performed particularly well. Hennessy cognac enjoyed an excellent year with 10% volume growth. The American market is growing well and China saw better momentum after a tough 2015 due to destocking by distributors. Other spirits, Glenmorangie and Belvedere, continued their growth.

LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Belvedere, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao Yun.

FASHION & LEATHER GOODS: GOOD PERFORMANCE OF LOUIS VUITTON, OTHER BRANDS STRENGTHENED THEIR POSITIONS

The Fashion & Leather Goods Business Group recorded organic revenue growth of 4% in 2016. On a reported basis, revenue growth was 3 %. Profit from recurring operations increased by 10%. Louis Vuitton had a good year driven by the level of creativity across all its businesses. The continued success of its iconic product range and the strong demand for recent creations such as the new luggage designed by Marc Newson and the Louis Vuitton fragrances, all contributed to this growth. Fendi recorded robust growth crossing the symbolic revenue threshold of 1 billion euros during the year. Loro Piana continued to expand its distribution network and opened a flagship store in Paris. Céline, Loewe and Kenzo all continued to grow. Marc Jacobs continued to work on changes to its collection. Donna Karan was sold in December to the American G-III group. Rimowa, world leader in luggage of excellence, joined the LVMH group.

Its Fashion and Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood, Loro Piana and Rimowa.

PERFUMES & COSMETICS: CONTINUED SUCCESS OF INNOVATIONS; EXCELLENT PERFORMANCE IN MAKEUP

The Perfumes & Cosmetics Business Group recorded organic revenue growth of 8%. On a reported basis, revenue growth was 6%. Profit from recurring operations increased by 5%. The inauguration of the new atelier for the creation of fragrances, Les Fontaines Parfumées, at Grasse was a highlight of the year. Parfums Christian Dior grew market share in all regions, driven by the worldwide success of Sauvage and the vitality of its iconic perfumes J’adore and Miss Dior. The progress of makeup also contributed to the Maison’s excellent performance. Guerlain benefitted from the successful launch of its new makeup collection inspired by its fragrance La Petite Robe Noire. Benefit experienced strong growth driven by the success of its new collection for eyebrows. Make Up For Ever, Fresh and Kat Von D performed well.

LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh).

WATCHES & JEWELRY: MARKET SHARE GAINS FOR BVLGARI AND TAG HEUER

The Watches & Jewelry Business Group recorded organic revenue growth of 5%. On a reported basis, revenue growth was 5%. Profit from recurring operations increased by 6%. Bvlgari continued to gain market share with enhancements to its Serpenti, Diva and B.zero1 lines. Growth continued in China, Korea and in the Middle East. TAG Heuer grew despite a difficult market for watches, gained market share and benefitted from the success of its new collections and its connected watch. Hublot accelerated its development in Asia and recorded the best year in its history. Chaumet continued to move its product lines upmarket and inaugurated a new boutique concept in Hong Kong.

LVMH‘s Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, a joint venture created with the world’s leading diamond group.

SELECTIVE RETAILING: GOOD PERFORMANCE AT SEPHORA, DFS IMPACTED BY A DIFFICULT TOURISM CONTEXT IN ASIA

The Selective Retailing Business Group recorded organic revenue growth of 8%. On a reported basis, revenue growth was 7%. Profit from recurring operations declined by 2%. Sephora gained market share across all regions and once again recorded double-digit growth in both revenue and profits. More than a hundred stores were opened in 2016 including notably a flagship store in the World Trade Center in New York and major renovations in Boston and Singapore. Its online offer accelerated with the launch in six new countries. DFS continued to face a difficult environment, notably in Hong Kong. The expansion into new destinations continued. The opening of the T Galleria in Angkor in Cambodia and one in Venice, Italy were the highlights of the year.

LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Royal Van Lent and Cheval Blanc hotels.

Key figures:

             
Euro millions    

2015

 

2016

 

% change

Revenue    

35 664

 

37 600

 

+ 5 %

Profit from recurring operations    

6 605

 

7 026

 

+ 6 %

Group share of net profit    

3 573

 

3 981

 

+ 11 %

Free cash flow*    

3 679

 

3 974

 

+ 8 %

Net financial debt    

4 235

 

3 265

 

– 23 %

Total equity    

25 799

 

27 903

 

+ 8 %

* Before available for sale financial assets and investments, transactions relating to equity and financing activities Continue reading

UGG for Men Announces Fall/Winter 2017 Limited Edition Capsule Collection Collaboration with 3.1 Phillip Lim

UGG® for Men (a division of Deckers Brands) announced it will launch a Limited Edition Fall ‘17 collaboration with designer Phillip Lim as part of his 3.1 Phillip Lim line. The limited edition capsule collection will feature four distinct styles of men’s Classic footwear starting at $250.plim_fw17_mens_ugg_logo_lock-up-01

3.1 Phillip Lim’s provides an approachable designer experience with beautiful everyday classics accented with touches of madness. The result – cool, easy, chic looks for men and women that embody youthful elegance and personal style. Phillip Lim debuted his self-titled brand, 3.1 Phillip Lim, in 2005 to instant success, both critically and commercially. Over ten years later, the brand is now available in over 50 countries and 450 boutiques and department stores worldwide. The company’s vision of designer clothes at contemporary prices has opened up the once dormant bridge market, establishing itself as a respected business model and is seen as a pioneering force in the industry.

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Featuring the Classic High, Classic Short, Outdoor High and Outdoor Short boots the four-piece collection includes classic plaids, bright pops of color and masculine hardware zipper detailing.

As creative director, Lim took his effortless, modern aesthetic and reimagined the California-cool Classic boot UGG® for Men is known for. Featuring the Classic High, Classic Short, Outdoor High and Outdoor Short boots the four-piece collection includes classic plaids, bright pops of color and masculine hardware zipper detailing.

As a designer, I am constantly interested in exploring unexpected elements to create new aesthetic propositions. One of the reasons I wanted to collaborate with UGG is because I felt that together we could create a collection that would inspire a laid back sense of cool. The approach stemmed from my California roots and memories of wearing UGG – a pure expression of unexpected fun and casual elegance” says Lim.

Phillip Lim brings a fresh perspective to our men’s line, reimagining our iconic styles in a new way. This collection reflects his thoughtful craftsmanship in artful stitching and precise detail. We are thrilled to partner with him on this innovative capsule collection this season” adds Andrea O’ Donnell, UGG® Brand President.

The UGG x 3.1 Phillip Lim collection will be available for purchase on www.3.1PhillipLim.com, www.UGG.com and at select retail stores this fall.

Milan Fall 2017/Winter 2018 Menswear Collections: In Milan, Ports 1961’s “Army of Love” Leads The Way

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Ports 1961 Fall 2017/Winter 2018 Menswear Collection

The word “love” is the same in traditional Chinese and Japanese characters. For the Ports 1961 Fall-Winter 2017-2018 Collection, Milan Vukmirovic also prints “love” in English, Arabic, French and Russian on sportswear hoodies. Not only is this collection younger than in past seasons, it is also more minimalist. Informed by the artistic director’s early years — the early Nineties, the energy of the London scene, and the music and images of a time when the idea of a new century elicited excitement and a hint of apprehension — it also reflects the lightning changes in today’s world.

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Ports 1961 Fall 2017/Winter 2018 Menswear Collection

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Ports 1961 Fall 2017/Winter 2018 Menswear Collection

Ports 1961 men are armed for whatever the day brings. In the city, they sport protective clothing inspired by urban work wear. Reflective bands stripe parkas borrowed from construction sites, bombers are reversible, coats have slit sleeves, blousons are studded with buckles and harness straps, trousers are piped, sweaters are chunky, hoods removable and shirtfronts quilted. The cuts are clean, ample, transformable and efficient. The wardrobe is assertive, right down to its colors. Two-toned silhouettes, blocked in contrasting shades of black, grey, red and even orange or red, are infused with buoyant energy.

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Ports 1961 Fall 2017/Winter 2018 Menswear Collection

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Ports 1961 Fall 2017/Winter 2018 Menswear Collection

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Ports 1961 Fall 2017/Winter 2018 Menswear Collection

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Ports 1961 Fall 2017/Winter 2018 Menswear Collection

Continue reading

Wes Anderson Directs H&M’s 2016 Holiday Film, “Come Together”

H&M Hennes & Mauritz is pleased to announce the debut of their holiday short film “Come Together“, directed by Wes Anderson starring Adrien Brody. The story takes place on a train traveling through a snowy landscape where Brody plays the conductor. Watch the “Come Together” Holiday Film here or visit hm.com.

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Academy-Award winning actor Adrian Brody in still from the H&M’s 2016 Holiday Film, “Come Together” directed by Wes Anderson.

The winter train ride, under Wes Anderson’s direction, is the perfect setting for H&M’s holiday collection full of relaxed, wearable elegance. It’s about mixing the informal with a sense of occasion, capturing the holiday mood for both dressing up and getting cozy with loved ones.” says Pernilla Wohlfahrt, H&M’s Head of Design and Creative Director.

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Academy-Award winning actor Adrian Brody and the cast in still from the H&M’s 2016 Holiday Film, “Come Together” directed by Wes Anderson.

In the film, lone passengers are traveling to join their loved ones for the holidays, but winter weather conspires to way-lay them.

This story may resonate more than ever at a time in the world where we could all do with giving a stranger a hug.” says actor Adrien Brody.

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H&M Holiday 2016 Collection

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2016 Black Friday Report: Walmart Delivers Deals, Availability and Simplicity on Black Friday

Walmart issued the following statement on how the company delivered on its Black Friday plans for customers. The retailer also unveiled top products purchased on Black Friday and how customers shopped that day in stores and online.wmt_h_r_4c_highres

This Black Friday, we promised customers great deals, more availability of those items, an integrated offering with Walmart.com and the simple shopping experience our customers have come to expect from Walmart. I am proud to say that we’ve delivered on all fronts,” said Steve Bratspies, Chief Merchandising Officer, Walmart U.S.Our customers were particularly excited about the new technologies we offered this year. In addition to picking up Black Friday favorites like televisions and toys, they flocked to our stores for drones, virtual reality products and hoverboards.

Walmart Thanksgiving Shopping Events

Happy Walmart customer reacts to receiving a Hatchimal, one of the season’s hottest toys. (Photo: Business Wire)

Thanksgiving and Black Friday Fun Facts and Stats:

  • The week kicked off with customers visiting stores in the days leading up to Thanksgiving to grocery shop. This Thanksgiving, Walmart sold 150 million pounds of turkey and ham. Throughout the month of November, the retailer also sold more than six pies per second with the most popular pies being pumpkin and the Patti LaBelle Sweet Potato Pie.
  • Black Friday is about offering great deals in stores and online. At midnight ET on Thanksgiving Day, customers started shopping on Walmart.com and the Walmart app. Thanksgiving Day was once again one of the top online shopping days of the year.
  • Then, at 6 p.m. the retailer kicked off the company’s Black Friday event in stores across the country. Millions of customers went home with the items they wanted. Top sellers included televisions, cookware, video games and systems, drones, toys and pajamas for the whole family.
  • More than 70 percent of traffic to Walmart.com during the retailer’s Black Friday event was driven by mobile.
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    (Image courtesy of Walmart)

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    (Image courtesy of Walmart)

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    (Image courtesy of Walmart)

It is not over. Walmart’s Cyber Week began at 12:01 a.m. ET on Friday, Nov. 25, and will continue with thousands of online specials every day throughout the week.

We will continue to focus on offering great prices on great products across the whole store and on Walmart.com for the rest of the holiday season,” Bratspies added.

2016 Black Friday Report: Target Reports Strong Start to Black Friday in Stores and Record-Breaking Online Sales

Savings To Continue With New Discounts And Unprecedented 15 Percent Off Two-Day Sale In Stores And Online This Sunday And Monday

Target Corporation today reported a strong start to the holiday shopping season. Millions of guests visited Target stores across the country and www.Target.com, which had its biggest day ever and experienced double-digit growth, to save on Black Friday deals, including the retailer’s lowest prices ever on select items.

Target Holiday Black Friday 2016

Target Holiday Black Friday 2016 (Image courtesy of Target)

Shopping at Target has become an annual Thanksgiving tradition for millions of our guests, and we’re thrilled at the response we’ve seen this year. We had a record-breaking day on Target.com and traffic to our stores was strong,” said Brian Cornell, chairman and CEO of Target, who greeted shoppers at the Jersey City Target store in N.J. on Thanksgiving and who rang the opening bell at the New York Stock Exchange in celebration of Kids Day earlier this morning. “This year, we doubled down on offering guests an incredible assortment at outstanding prices. Based on early results, it’s clear that our deals are cutting through. We expect this momentum to continue throughout the weekend and into next week as we offer Target’s guests a truly unprecedented opportunity to save 15 percent off nearly everything online and in our stores this Sunday and Monday.”

Target Holiday Black Friday 2016

Target Holiday Black Friday 2016 (Image courtesy of Target Corporation)

Black Friday Pre-Sale and Thanksgiving Day Shopping

On Wednesday, guests started their shopping early with Target’s Black Friday pre-sale on Target.com. New this year, Target’s guests could take advantage of pre-sale deals in stores via Cartwheel, resulting in the biggest day ever for new users of the popular savings app. Early on Thursday morning, the savings continued as Target offered guests access to nearly all of its Black Friday doorbuster deals on Target.com. Target.com had a record-breaking day, with traffic and sales eclipsing 2015 Cyber Monday, driven largely by doorbusters in electronics. Target also saw an increase in guests shopping via mobile, contributing to more than 60 percent of the retailer’s online sales. Top performing Black Friday deals at Target include:

  • TVs were a top seller, with more than 3,200 TVs sold every minute in the first hour of store opening.
  • Apple products were among the most popular deals, with guests taking advantage of savings on the iPad Air 2, iPad Pro and Apple Watch Series 1.
  • Popular gaming systems included Xbox One S and PlayStation 4. Target sold half a million video games within the first hour of store opening.
  • Wearables saw a 50 percent sales increase, including the Fitbit Charge HR.
  • Top-selling toys included LEGO, NERF, Our Generation and the Jetson V6 Hoverboard, which sold out in minutes on Target.com.

    Target Holiday Black Friday 2016

    (Image courtesy of Target Corporation) 

  • Target sold five times more wireless headphones this Black Friday compared to last year, including the popular Powerbeats Wireless In-Ear Headphone 2.
  • Robotic vacuums, including the Hoover Quest 700 Robotic Vacuum, generated 10 times the sales compared to last year.
  • Sales for family sleepwear were nearly double compared to last year, driven by a 30 percent off savings plus an additional 15 percent off in stores with Cartwheel.
  • And, the 3-foot stuffed bear for $10, a surprise hit from last year, sold out quickly in stores across the country.

The Savings Continue, Including 15 Percent Off in Stores and Online Continue reading