Weekly News Update // September 27, 2022

Here's TRAUB's weekly roundup of recent consumer and retail news. This week, Harrods & Dior partner for the holidays, Christies launches a streetwear vertical, Resale looms large in the luxury sector, and more.

 M&A and INVESTMENTS

• Retail Tech Startup Swiftly Raises $100 Million Series C, Valuing Company at $1 Billion TechCrunch
  
• L'Oreal to Acquire Skinbetter Science WWD
  
• Checkmate Secures $5 Million in Seed Funding WWD
• Della Valle Secures $409M to Privatize Tod's Axios
• Social Shopping App Drop Raises $5.5M in Funding WWD
• Knix Acquired for $320 Million Retail Dive

INDUSTRY NEWS

Nordstrom Adopts Poison Pill After Mexican Retailer Buys Stake
Nordstrom Inc. adopted a so-called poison pill to prevent outsiders from boosting their stake in the business after a Mexican company acquired a 9.9% stake in the upscale U.S. retailer. A roughly $300 million investment made El Puerto de Liverpool SAB—which operates high-end department stores in Mexico—the second largest shareholder after the founding Nordstrom family, which owns about 30% of the Seattle company. In the case of Nordstrom, the company adopted a shareholder rights plan that will issue new shares if Liverpool or anyone else acquires a stake of 10% or more in a transaction not approved by Nordstrom’s board. Existing holders of more than 10% of the company’s stock, including the Nordstrom family, will be grandfathered in. WSJ

At Harrods, the Holiday Season Rhymes with Dior
Dior is cementing its longstanding relationship with Harrods with a holiday event that will take over the London department store’s windows and facade for a celebration of “The Wonderful World of Dior.” Running from Nov. 10 to Jan. 3, the multipronged happening will involve events on every floor of the store, including a micro-village on the lower ground floor and a pop-up café. The front of the store on Brompton Road will be adorned with a monumental light installation featuring classic Dior emblems like the compass rose, one of the key symbols of the brand’s 2022 holiday campaign. Dior, which traditionally stages a summer pop-up at Harrods, will take over 44 windows with gingerbread house-themed displays celebrating all its product categories, from ready-to-wear and leather goods to fragrances and home wares. The theme of the tableaux will be exclusive to Harrods and Dior’s flagship on Avenue Montaigne in Paris. WWD

Target Taps Kika Vargas, Sergio Hudson and La Ligne for Collaborations 

Colombian designer Vargas, American designer Hudson, and apparel brand La Ligne were named Target’s latest designer partners . The brands’ collections for the Minnesota-based mass retailer are set to roll out Oct. 9, with over 100 accessory and apparel items total priced between $8 and $70. Target’s designer collaborations, which offer designer goods at a substantially lower price point and pronounced focus on inclusivity, are always talked-about and much anticipated by the consumer .Last year’s round-up included Victor Glemaud, Nili Lotan, Rachel Comey and Sandy Liang, while in 2020, it partnered with Christopher John Rogers and LoveShackFancy. BoF

Coty Aims to Double Skincare Sales in Three Years 

Coty Inc. said it expects to double sales of its skin care products in coming years, a goal the beauty company has kicked off by homing in on consumers in China. The beauty company said that it is on track to see skin care revenue increasing to as much as $600 million by 2025. Chief Executive Officer Sue Nabi said the total skin care market is $150 billion, leaving more opportunity for Coty to grow. Coty’s long-term view comes amid improved sales in its current quarter. The New York-based company, which owns brands such as Lancaster, Orveda and Kylie Skin, said it was raising its sales and margin outlook for its fiscal first quarter due to recent performance in Europe and North America and in the travel retail segment. It now projects sales to grow by 8% to 9% for the current quarter, up from a prior estimate of 6% to 8%.Coty also said that the higher sales growth will lead to stronger gross margins, despite continued inflationary pressures. WSJ

The U.K. to Bring Back Tax-free Shopping for Overseas Visitors

Tax-free shopping for international visitors is back in the U.K. Kwasi Kwarteng, chancellor of the Exchequer under Liz Truss’ government, revealed the change Friday as part of an extraordinary 45 billion pound tax-cutting mini-budget plan in the House of Commons. The British retail sector, which has been lobbying the government to bring back duty-free shopping since it was given away as part of Brexit in January 2021, was thrilled about the introduction of “a modern, digital, VAT-free shopping scheme.” WWD

Christie’s Launches Streetwear Vertical, Department X

Christie’s is going deeper into the streetwear industry with a new auction vertical. The auction house unveiled the launch of Department X, its new department that specializes in auctions of luxury streetwear, sneakers and sports collectibles, on Monday. Christie’s Department X will host live and online auctions, as well as private selling exhibitions, and focus on selling items across fashion, music, culture and sports. Donovan said she’s seen an increase in interest among Christie’s clients in luxury streetwear and sneakers over the last few years, including new clients that are slowly building their collections. She believes Department X will continue bringing new and younger clients to Christie’s with auctions highlighting items from topical and influential figures. WWD

Saks Off 5th on Resale: A Golden Opportunity

Among off-pricers, Saks Off 5th wants to dominate the resale sector. The company has been building up a network of sources supplying pre-owned fashion since 2020 when it first partnered with LXR & Co., for pre-owned vintage handbags and luxury accessories from brands like Prada, Celine, Gucci and Louis Vuitton. Three new partnerships (Rent the Runway, 2 Authenticators, Reflaunt) enable Saks Off 5th to introduce brands it didn’t previously sell, expand selections from those already carried, tap a rapidly growing segment of customers seeking more value, and support the circular economy. WWD

Balenciaga Launches Resale Program

The luxury label is partnering with tech-and-logistics platform Reflaunt to help customers sell on their old Balenciaga clothing and accessories. It’s among a number of brands owned by French conglomerate Kering, including Alexander McQueen and Gucci, to experiment in the market for second-hand fashion. The luxury sector was initially wary of online resale platforms, fearing they would cannibalize sales, encourage counterfeits and damage carefully cultivated brands. But the swift growth of the secondhand market, alongside growing interest in resale as a way to solidify brands’ sustainability credentials, has rapidly shifted that attitude among some players. BoF

Amazon Confirms Second Prime Day Sales Event in October

Amazon is doubling up its usual "Prime Day" sales bonanza by hosting another sales event for its Prime subscription members in October, the retail giant announced in a press release Monday. The sales event, which will run through October 11 and 12, will be called the "Prime Early Access Sale" and feature a list of 100 "popular and giftable items" per Amazon's press release. Business Insider

COMINGS & GOINGS

• Bryan Yambao Named Editor-in-Chief of Perfect, the Branded Content Agency-Meets-Magazine Founded by Katie Grand in 2020 BoF
• British Fashion Council Names David Pemsel New Chair BoF
• Burberry CFO, COO Julie Brown to Exit April 2023 BoF
• Alan Jope Announces Plans to Step Down as CEO of Unliever in 2023 WWD
• Yeti CFO Paul Carbone Announces Resignation Business Wire
• Eddie Bauer Names Tim Bantle CEO WWD
• Olivier Lalanne Named Editor in Chief of New Edition Harper's Bazaar France  BoF
• Peloton CMO Dara Treseder Announces Her Departure CNBC

GOOD READS

• Handbag Prices Are Skyrocketing. Who’s Buying Them? BoF
• TikTok Is The New King of Social Media. What Now? NY Mag