Retail

The Weekly Closeout: Bed Bath & Beyond continues executive shakeup and Gucci launches a pet collection


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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 Target remodeling its 1,000th store, to Lindsay Lohan’s new ad with Allbirds, here’s our closeout for the week.

What you may have missed

Bed Bath & Beyond continues its executive shakeup 

One day after announcing its CEO and chief merchandising officer were exiting the company, Bed Bath & Beyond appointed a new chief accounting officer and senior vice president of treasury and investor relations.

Laura Crossen, who has been at the company for more than two decades, will become the chief accounting officer, replacing John Barresi, who resigned earlier this month to pursue another opportunity. Susie Kim will take over Crossen’s former role as senior vice president of treasury and investor relations.

The executive changes at Bed Bath & Beyond this week come as sales continue to decline. The retailer’s first quarter net sales fell 25% year over year to $1.5 billion, while comparable sales were down 23%.

Facing lower-than-expected demand, RH revises outlook

RH this week announced it has lowered its financial outlook for the year. The home retailer expects fiscal 2022 net revenue to decrease between 2% and 5%, and for adjusted operating margin to be between 21% and 22%. That compares to previous estimates from earlier this month of net revenue growth of up to 2% on the high end and flat on the lower end, and for operating margin to be between 23% and 24%.

“The deteriorating macro-economic environment has resulted in lower than expected demand since our prior forecast, and we are updating our outlook, particularly for the second half of the year,” Gary Friedman, chairman and CEO, said in a statement.

Contributing to the declining demand are the mortgage rates that are double last year’s levels, causing luxury home sales to be down 18% in Q1, Friedman said, adding that he expects demand to continue to slow throughout the year.

5 years into the store update program, Target remodels 1,000th store

In pursuit of a store remodel strategy that began in 2017, Target has just finished renovating its 1,000th store, the retailer said in a blog post. Remodeled stores – which feature specialty lighting, updated signage and wood elements – bring a 2% to 4% sales bump in the first year post-renovation, according to the company.

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Target's remodeled store design, showing the electronics section.

Target began it’s store remodel strategy in 2017.

Courtesy of Target

 

Alongside its store renovations, Target has also been rolling out shop-in-shop experiences with companies like Starbucks, Ulta, Apple and Disney.

Although Target has hit a milestone, its renovations are far from over. The company plans to remodel nearly 200 stores in 2022 alone, and is undertaking close to 200 fulfillment remodels to add capacity for same-day services like order pickup and drive up. Target is also adding canopies to the drive-up area in select stores.

Private equity owner reportedly hopes to sell Ganni for $500M to $700M

Private equity firm L. Catterton aims to sell Ganni, acquired in 2017, for as much as $700 million, Reuters reported, citing unnamed sources. The firm and the brand each declined to comment to Retail Dive on the report.

Bids are due later this month, with a number of buyers from China already showing interest, according to Reuters. The 22-year-old Danish brand, known for its dramatic collars and other striking takes on casual apparel, has thrived in the years since L. Catterton took a majority stake for an undisclosed amount. The International Association of Department Stores last year listed the label as “a brand to watch,” calling it out for its “storytelling.”

Ganni is based in Copenhagen, with offices in Copenhagen, London, Paris, New York and Shanghai and sells through 600 retailers as well as 37 of its own stores across Europe and the United States. 





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