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.
This week in fashion news: One luxury brand CEO made a major promise, while some retailers in the UK were warned on greenwashing.
Burberry CEO won’t take the brand “down market”
Joshua Schulman, the newly appointed CEO at Burberry, is already making some firm commitments. Following his first show at London Fashion Week, the executive said he does not intend to take the high-end British brand “down market" and would much rather try and find a balance in terms of prices. There has been speculation around making the brand more accessible since Schulman came to Burberry after working at Michael Kors and Coach—both regarded as affordable luxury brands.
Why this matters: Schulman has a lot to prove after being brought on board in July, abruptly replacing former CEO Jonathan Akeroyd. Burberry has seen its sales slump, reporting a massive 34% slip in annual profit for the last quarter of 2023.
Brands warned about greenwashing
Seventeen major fashion retailers have been warned by the UK’s Competition and Markets Authority (CMA) about greenwashing. The advertising watchdog sent out warnings asking brands to take a second look at their sustainability claims after it published a compliance guide making sure sustainability marketing was within the bounds of the local law. “Whether one of the 17 that got a letter or not...every business in the fashion sector should take note of the guide,” said Hayley Fletcher, the CMA’s interim senior director of consumer protection. “Now is the time for businesses to reflect and get it right.”
Why this matters: The new warnings come just months after the CMA signed formal agreements with brands including Asos, Boohoo, and Asda demanding they only use “accurate and clear” green claims—essentially eliminating any vague language describing recycled or organic materials.
Zegna hasn’t soured on China
China has been a sore spot for many retailers lately, but that’s not deterring Ermenegildo Zegna. Gildo Zegna, the CEO and chairman of the Italian fashion brand, told Bloomberg that it will stick to its expansion plans in China over the “medium term.”
Why this matters: While Zegna himself declared August a “difficult” month due to slowed sales in China, he is not alone in his concern. Mega fashion retailers from LVMH to Hugo Boss have cited diminished sales amid a consumer spending slowdown in China.