Stores

This week in retail: Zara owner reopens in Ukraine, Starbucks restructured global leadership

Plus, California’s new minimum wage law goes in effect.
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· less than 3 min read

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

Comedy is, in part, about the subversion of expectations, so let us just say at the outset: We’re not going to have any goofs, gaffes, or laughs—we’re just getting right into what’s going on in retail this week.

In reopenings: Starting today, Zara owner Inditex will be reopening stores in Ukraine more than two years after the start of Russia’s invasion. The company will start with 20 stores, three of which will be Zaras.

  • In 2019, Inditex had 72 locations in Ukraine and 558 in Russia, according to Reuters. The company received approval to sell its Russia business last year to UAE-based Daher Group.
  • That agreement left the door open for Inditex to potentially return to the country through franchised locations.

In new hires: Starbucks made changes to its global leadership structure that go into effect today.

  • Current Group President of International and Channel Development Michael Conway will now serve as CEO of North America, a newly created role.
  • Brady Brewer is taking over as CEO of Starbucks International, which oversees teams in the Asia Pacific, EMEA, Japan, and LAC, in addition to Starbucks’s international licensed partners. He was formerly EVP and CMO.
  • Lyne Castonguay joins Starbucks in another newly created role, EVP and chief merchant and product officer, and will oversee “global product strategy [and] developing new products and growth platforms.” She will report directly to CEO Laxman Narasimhan.

All these changes are part of Starbucks’s reinvention plans, which include growing its footprint 4% this year.

In new laws: Today, California’s controversial minimum wage law goes into effect. The legislation, which Governor Gavin Newsom signed last year, will raise the minimum wage for fast-food workers to $20 an hour. Proponents say the law fairly compensates workers, who face a litany of issues. Opponents say it will shrink already small margins for restaurants and make it difficult for operators to raise prices.

  • The Wall Street Journal reported that a handful of restaurants have already cut jobs and opted not to expand in anticipation of the law.
Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.