Lifestyle & Luxury News Roundup // August 21, 2024

This week, Macy’s and Target reports show consumers are still bargain shopping,  Estée Lauder Cos' longtime CEO announces retirement, and more. 

RETAIL NEWS

Sarah Jessica Parker Is Shutting Down Her Namesake SJP Shoe Collection

The label’s closing underscores the obstacles that independent footwear businesses are facing amid significant change and challenge roiling the industry. At 10 years old, the brand — which focused on classic styles — outlasted a number of other celebrity shoe ventures and weathered the COVID-19 storm. Still, it faced considerable competition from more established labels and trend-driven brands.

Ted Baker to Close All Remaining UK Stores, Permanently Shutter

Negotiations between the British retailer’s owner, Authentic Brands Group, and retail tycoon Mike Ashley have stalled, putting 500 jobs at risk as the company faces a full shutdown.

Spanx founder launches shoe brand Sneex

Three years after selling a majority stake in her shapewear brand to Blackstone, Sara Blakely has set out to reimagine high heels.

Discount-Hungry Shoppers Propel Sales Gains for Target, T.J. Maxx

Retailers say shoppers are resilient and hunting for deals. Target said its price decreases in the latest quarter helped drive more visits to its stores. Both Target and TJX, the owner of T.J. Maxx, raised their profit goals for the year. By contrast, Macy's, which has been closing department stores, reported another quarter of shrinking sales and lowered its sales goals slightly for the year.

Rothy’s Brings Sustainable Innovation To NYC With New Flagship

Last month, Rothy's unveiled its latest retail achievement: a flagship store on Fifth Ave in New York City's Flatiron District. This store, the brand's 23rd in the United States, marks the sixth location Rothy's has opened in just three months—a clear indication of the brand's accelerating growth. However, the location is more than just another store; it's a bold statement of Rothy's commitment to sustainability and innovation. The store features New York City's first-ever streetside water refill station, a unique addition that underscores the brand's mission to reduce single-use plastics.

How A Slowing Luxury Market Is Impacting Ralph Lauren, Capri, Tapestry And LVMH

Affluent Americans are pulling back in luxury spending. LVMH, Tapestry, Capri Holdings and Ralph Lauren are seeing the results in their latest earnings reports.

Macy’s Reports Lower Sales as Shoppers Cut Back

Department store chains have struggled as consumers, squeezed by budget constraints, spend less time and money at their stores.

Saks-Neiman’s Deal Appears Good to Go

The Saks-Neiman Marcus merger appears to have been OK’ed by the U.S. Department of Justice by virtue of its review period expiring and no objections to the deal emerging, according to sources familiar with the situation.

BEAUTY NEWS

Why Korea’s Beauty Scene Is Taking Over the World — Again

Nearly a decade after K-beauty’s initial global emergence, new indies are seeing a fast and furious rise in the U.S. — and this time, they’re leaving no beauty category unturned.

Tory Burch has been on a fashion renaissance. Is beauty next?

Tory Burch, the eponymous fashion house launched by Tory Burch in 2004, first moved into fragrance with Estée Lauder in 2013 before selling the brand’s beauty license to Shiseido in 2019. Since then, the Tory Burch line has expanded its fragrance offerings with launches like the Middle East-exclusive Essence of Dreams line, released earlier this year. Now, Tory Burch debuts Sublime as the company as a whole has been experiencing a broader renaissance.

Who Is Buying a $500 Moisturiser?

As aspirational shoppers pull back from spending, brands are investing in hyper-premium products in an effort to court high-net-worth individuals who are happy to spend triple digits on a single item. These shoppers are more discerning than most.

A To-Do List for Estée Lauder’s Next CEO

Whoever steps into Fabrizio Freda’s Italian loafers in June 2025 has a big job on their hands, as the American beauty conglomerate battles softened demand internationally and on its home turf. Kickstarting meaningful growth will mean a fresh China strategy, channel and category overhauls, and generating some much needed buzz.

How Gen Z’s Obsession With Beauty Products Is Draining Their Wallets

Lately, the beauty industry has seen a major spike in interest, especially among Generation Z. According to Nano, demand for beauty products has shot up by 20% year over year, comparing Q1 2023 to 2022. And Statista reports that, on average, Gen-Zers are dropping over $2,000 annually on beauty products. But with all this enthusiasm comes a downside—it's hitting their wallets hard and even pushing some into debt. One of the big reasons behind Gen-Z's beauty spending is the huge influence of social media. Platforms like Instagram, TikTok, and YouTube are goldmines for beauty brands and influencers to reach young consumers.

The beauty brands winning TikTok Shop 

According to the Pew Research Center, 33% of Americans used TikTok in 2023, up from 21% in 2021. But it’s Gen Alpha and Gen Z that make up the lion’s share of U.S.-based users: Sixty-six percent of American teens aged 13-17 and 62% aged 18-29 used the app last year, while 39% of Americans aged 30-49 used the app in the same time period. Despite the risk of a social platform shakeup, brands are continuing to invest in their TikTok strategies by leveraging live selling, evergreen “edutainment,” affiliate marketing, keyword mining and sampling programs, among other strategies, thus fueling TikTok’s growing Shop program.

Barneys New York is back, thanks to a nostalgic beauty collab

Hourglass Cosmetics, which got its start thanks to the iconic Manhattan department store, will pay tribute to Barneys with a nostalgic pop-up during NYFW.

COMINGS & GOINGS

• Fabrizio Freda, Longtime Leader of the Estée Lauder Cos., to Retire WWD 
• Fashion Scholarship Fund Names Farai Simoyi Head of Virgil Abloh ‘Post-Modern’ Scholarship Fund and Equity WWD
• Longtime FIT President Joyce Brown to Step Down BoF
• Guess CFO resigns after one year Retail Dive