Shopify Makes a $100 Million Investment; Jane Fonda Takes the Lead for H&M's Move Collection Campaign
Retail Roundup: May 30, 2022
Bed Bath & Beyond Mulls Private Loans Amid Financial Struggles
In a bid to shore up its finances, Bed Bath & Beyond is reportedly negotiating with private lenders about an asset-based credit loan, according to a report released this week. The deliberations, which are preliminary, come as the home goods retailer weighs other options, according to unnamed sources.
As of May 28, the company had nearly $108 million in cash and cash equivalents, a substantial decrease from $1.1 billion in the same period last year. In its most recent quarter, Bed Bath & Beyond reported a 25% year-over-year decline in net sales to $1.5 billion, with comparable sales falling 23%. Operating loss grew by more than $265 million, while net loss increased by over $300 million.
Mark Tritton, who joined the retailer from Target in late 2019, stepped down as CEO earlier this year. Despite these challenges, the company is optimistic about its future, with plans to expand into new products and categories.
H&M Launches Activewear Line with Jane Fonda's Help
Fast-fashion retailer H&M has announced the launch of its new brand, H&M Move, backed by fitness icon Jane Fonda and choreographer JaQuel Knight. The initial collection includes "Move Essentials" such as tops, lightweight jackets, tights, bras, and accessories designed for training and running.
H&M is aiming to use 100% recycled or sustainably sourced materials by 2030 as part of its commitment to reducing environmental impact. Fonda, expressing her support for the brand's philosophy, said, "I've spent a lot of my own life getting people to move and was naturally drawn to the mission of H&M Move to get the whole world moving."
Aldi's Unconventional Wedding Proposal
Aldi is offering an unusual prize for two lucky shoppers: the opportunity to tie the knot in one of its stores. The grocery chain touts that its customers have held Aldi-themed marriage proposals, engagement photos, birthdays, and baby showers at its stores, but this contest is a chance to actually get married.
The ceremony will take place on an "Aldi Finds Wednesday" and comes with free groceries for a year. The chosen couple will invite up to 50 friends and family members and Aldi will host a reception featuring food and beverages from its shelves. The winners will also receive a behind-the-scenes visit to Aldi's model store at its U.S. headquarters in Batavia, Illinois, and a picturesque storefront for wedding photos.
Tabasco's Limited Edition Summer Capsule
Tabasco has released a limited-edition summer capsule inspired by grilling season. The line includes a bucket hat with a mini sauce holder, a Hawaiian-style button-down shirt, slides in the classic Tabasco red color, and temporary tattoos.
"Our fans are passionate, and constantly share the creative ways they're using our products," said Kate Neuhaus, director of global marketing communications at McIlhenny Company, owner of the Tabasco brand. "We know everyone recognizes us for our iconic bottle shape, but we wanted to surprise and excite our fans with a drop that's as creative and original as they are."
Shopify Invests $100 Million in Klaviyo
Shopify, an e-commerce company, has invested $100 million in e-commerce automation firm Klaviyo, according to a press release and an SEC filing. The move comes a week after Shopify laid off 10% of its workforce and reported a quarterly net loss of $1.2 billion.
Harley Finkelstein, president of Shopify, said, "Klaviyo is a shining example of the outsized impact Shopify's app and partner ecosystem can have on the next generation of commerce solutions for independent brands." The two companies have worked together since 2017, helping brands such as Glossier and Osea.
Walmart Layoffs and Retail Priorities
Walmart is laying off 200 people from its corporate offices as the retail giant evolves its operations for a "strong future." Despite this move, new roles are also being created, according to a spokesperson.
With profits sliding and consumer spending decreasing, retailers like Walmart are closely examining their labor costs, one of the biggest balance sheet items. GlobalData Managing Director Neil Saunders commented, "Most of this is happening in central functions and at headquarters rather than on the shop floor, although there is increasing caution about taking on new staff at all levels."
Victoria's Secret's Struggle to Reinvent Itself
Victoria's Secret has spent over a year trying to overhaul its image and marketing strategy to appeal to a wider audience, but not everyone is convinced. A Hulu documentary, "Victoria's Secret: Angels and Demons," has stirred resentment among certain consumers who question the brand's sincerity in its efforts to change.
In addition, Victoria's Secret's latest campaign, "We've changed," has faced criticism for being too little, too late or even disingenuous. However, the brand has reportedly regained some of its market share.
Amazon Offers Same-Day Delivery for Retailers
Amazon is now providing same-day delivery services for retailers, with Pacsun, GNC, SuperDry, and Diesel among the initial partners. The program is currently available in select zip codes in over 10 metropolitan areas and will expand its reach in the coming months.
Including other brands in its same-day delivery service is part of Amazon's strategy to offer customers a broader selection at faster speeds. The program is currently available for items sold via Amazon.com, with plans to extend it to products sold on partner websites in the future.
Sources:
- Bed Bath & Beyond Reports Q1 2025 Results - Beyond, Inc. Press Release
- Beyond, Inc. Q1 2025 Earnings Release - Yahoo Finance
- Bed Bath & Beyond Announces Second Quarter FY2025 Earnings Release Date and Conference Call - Yahoo Finance
- H&M Move Press Release - H&M Press Office
- Why Tabasco Sauce is a Culinary Icon - Smithsonian Magazine
- Klaviyo Funding and News - SEC Filing
- Walmart Layoffs - Reuters
- David's Bridal Diamonds & Pearls Store Concept - PR Newswire
- Urban Outfitters Q1 2022 Earnings Release - Yahoo Finance
- Nike Tech Layoffs - TechCrunch
- Former Vitamin Shoppe CEO Returns to Top Spot - MarketWatch
- Lowe's Reaffirms Full-Year Guidance - NASDAQ
- Victoria's Secret photo shoot in Ethiopia draws criticism - CNBC
- Amazon Launches Same-Day Delivery for Retailers - CNBC
- Hulu's Look Inside Victoria's Secret's Top Secret World - Variety
- "Victoria's Secret: Angels and Demons" - Hulu
- Bed Bath & Beyond, facing financial struggles, is considering an asset-based credit loan from private lenders, a move aimed at strengthening its business.
- As Bed Bath & Beyond grapples with declining sales and increased losses, the company remains optimistic about its future, planning to expand into new products and categories.
- Amidst the pandemic's impact on various industries, retailer H&M has partnered with fitness icon Jane Fonda to launch its new activewear line, H&M Move.
- In an effort to reduce environmental impact, H&M commits to using 100% recycled or sustainably sourced materials by 2030 for its products.
- Aldi, the grocery chain known for unconventional promotions, is offering a unique prize: a chance for two shoppers to get married in one of its stores, complete with a year's worth of free groceries.
- Tabasco's limited-edition summer collection, inspired by grilling season, includes fashion items like a bucket hat, Hawaiian-style button-down shirt, and slides, catering to lifestyle enthusiasts.
- Shopify's $100 million investment in e-commerce automation firm Klaviyo comes as Shopify faces financial challenges, including a recent net loss of $1.2 billion.
- As retailers reassess their labor costs in response to decreasing consumer spending, Walmart is cutting 200 corporate jobs while creating new positions to adapt for a strong future.
- Victoria's Secret, aiming to reinvent itself, has faced criticism for its recent campaigns, as consumers question its sincerity and genuineness in its efforts to appeal to a broader audience.
- Amazon's same-day delivery service for retail partners, currently available for items sold via Amazon.com, aims to offer customers a broader selection at faster speeds, by including other brands in its delivery program.
- Warning signs of struggling businesses often include declining sales, increased losses, and restructuring efforts, as seen in the cases of Bed Bath & Beyond and Shopify.
- In the tech industry, companies like Nike and Amazon are making adjustments as well, with Nike reportedly laying off employees and Amazon offering same-day delivery services to retailers.
- Amidst the ongoing pandemic, the fashion industry continues to adapt, with Fast-fashion retailers like H&M launching new brands and fashion-and-beauty companies focusing on sustainable materials like recycled or sustainably sourced materials.
- The health sector, too, has been impacted by the pandemic, with companies in the fashion-and-beauty industry like Tabasco releasing limited-edition collections inspired by grilling season, a popular activity during the warmer months.
- The finance sector, including businesses like Bed Bath & Beyond and Shopify, has experienced volatility and challenges, and investors may be closely monitoring the situation, as these businesses navigate their financial struggles.
- In addition to the retail giants mentioned above, other companies like Walmart and Victoria's Secret are grappling with their own challenges and attempts to reinvent themselves in the ever-changing retail landscape.
