It’s Friday, and it might just be time to replace the device you’re using to read this newsletter. Per the latest earnings call from Best Buy, the “natural upgrade and replacement cycles for the tech bought early in the pandemic kick in this year,” meaning that laptop you bought in 2020 to help get you through lockdown could soon be headed for the secondary market.
In today’s edition:
—Jeena Sharma, Erin Cabrey, Alex Vuocolo
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American Giant
Since a 2018 New York Times story first chronicled American Giant CEO Bayard Winthrop’s odyssey to bring back flannel manufacturing to the US, a lot of things have changed.
There has been a worldwide pandemic that has disrupted the global supply chain, inflation and recession have entered the picture, and generally, things seem to be pretty expensive.
But if there is one thing that has stayed the same, it’s Winthrop’s resolve to strengthen US-based manufacturing since founding his brand, which has become somewhat of a poster child for the “Made in America” movement.
The genesis for all of this, however, is based in one single moment which came after the CEO became a first-time father 13 years ago—a week after which he was fired from a manufacturing company where the owner wanted to move production overseas.
“It was almost Christmas, my daughter was two weeks old, and that was a stressful moment,” Winthrop told Retail Brew. “It got me really thinking about what I wanted to do next. That idea about [a] business that was making things domestically of really high quality, as the foundation of a business—I couldn’t let go of that idea.”
Out of it came American Giant, which is now known for its sturdy US-made denim, hoodies, and of course, more recently, flannels.
The original NYT piece—alongside an upcoming book titled American Flannel by the original author of the article, Steven Kurutz—encapsulates the painstaking effort and time that went into creating flannels within the US.
Keep reading here.—JS
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Stefania M. D'Alessandro/Getty Images
In addition to several notable departures and promotions in February, the month also included a dressed-down move for designer Zac Posen, and a beauty icon returning to lead her eponymous brand. Here’s the retail C-suite moves to know:
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Beyond Inc. named Walmart and Sam’s Club vet Chandra Holt as the new CEO of Bed Bath & Beyond. It also tapped Dave Nielsen, a Beyond Inc. exec since 2009 who most recently served as interim CEO and president for Beyond Inc. and Bed Bath & Beyond, as the CEO of Overstock.
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Huda Kattan reclaimed the role of CEO of Huda Beauty after stepping away in 2020—a move she said in a YouTube video was “one of the biggest regrets of my life.” Kattan is marking her return by introducing a new logo, revamped packaging, and new products to the brand.
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Zac Posen is making the shift from designer gowns to a bit more casual wear by joining Gap Inc. as its EVP and creative director, as well as chief creative officer of Old Navy.
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Supergoop brought on JLo Beauty’s co-founder and former CEO Lisa Sequino to be its new CEO following the departure of Amanda Baldwin, who left to lead Olaplex late last year.
Keep reading here.—EC
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Jeff Greenberg/Getty Images
Discount chains are winning in this economy, but keeping prices low isn’t the only trick they have up their sleeves.
TJX Companies, which owns off-price chains including TJ Maxx, Marshalls, and HomeGoods, said a 5% sales bump in Q4 was “entirely driven by an increase in customer transactions,” and that its diverse and flexible product mix helped bring in customers across income levels.
“Our ability to offer a differentiated mix of good, better and best merchandise at each of our stores allows us to appeal to value-conscious shoppers across a broad range of income demographics,” CEO Ernie Herrman told investors in a call on Wednesday.
TJX’s business model, he noted, allows it to “shift our buying, distribution and store mix to quickly react to the hottest trends in the marketplace and changing consumer preferences.”
He added that more than 1,300 buyers sourced products from 21,000 vendors in 2023.
Keep reading here.—AV
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Today’s top retail reads.
Meaty lies: New York Attorney General Letitia James is suing the US division of meat giant JBS for allegedly misleading consumers about its environmental impact and climate goals. (the Wall Street Journal)
Bullish Birkenstock: Newly public show company Birkenstock reported a strong holiday quarter, but said the cost of its global expansion is taking its toll. (Reuters)
Burger wars: Burger King is offering free Whoppers with any $3 purchase as a way to troll Wendy’s after it revealed plans to introduce “dynamic pricing” as early as next year. (RetailWire)
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