Apparel

E-commerce has generated significant volumes of sales in the electronics and clothing industries, but has yet to gain traction in other retail sectors.  

J. Crew is entering into a deal that it expects will put it one step closer to improving its business.   The fashion retailer has won the support of more than 50% of its term loan holders to trim its $2 billion debt load and end intellectual property litigation. This was according to sources familiar with the situation, according to Reuters.  

A J.C. Penney store is going to be displaced by a fancy fitness club.   Simon announced that the J.C. Penney store at Southdale Center, in Edina, Minn., will close and be replaced by a Life Time fitness center, or ‘athletic resort.’ Expected to open in early 2019, the three-level facility will be operated by Life Time, which currently runs 123 centers in the United States. The centers are designed as one-stop fitness shops offering tennis, swimming, basketball, and yoga along with weight loss and nutrition education.

Cautious consumers kept spending in check in May.     Retail sales in May were essentially unchanged on a seasonally adjusted basis after an upwardly revised gain of 0.6% in April, according to the National Retail Federation. The NRF numbers exclude automobiles, gasoline stations and restaurants.   In May, sales were 5.3% above the year-ago level on an unadjusted basis and increased four percent on a 3-month moving average year-over-year.   

Sports Direct, the largest sporting goods retailer in the United Kingdom, has expanded its presence in the United States.   The company announced that it has completed its acquisition of Bob's Stores and Eastern Mountain Sports. It will initially operate a total of some 50 stores in the Northeast and five EMS outdoor adventure schools, along with e-commerce sites for both brands.   

J. Crew's troubles showed no sign of easing in the first quarter as the retailer posted its 11th consecutive quarter of same-store sales declines.    Total sales fell 6.3% to $532 million in the quarter, ended April 29. Total same-store sales fell 9%.   By brand, J. Crew sales decreased 11% to $428.5 million; same-store sales fell 12%. Madewell sales increased 17% to $84.7 million; same-store sales increased 10%.   

The clear signal sent by these first quarter numbers is that J. Crew is a company in trouble. As much as the business is used to decline, the accelerated pace of deterioration, as evidenced by the 6.3% drop in overall sales and the 12% fall in J. Crew comparables, is worrying. That this weakness comes off the back of negative prior year numbers suggests that the company has not yet reached rock bottom.  

Neiman Marcus Group is going it alone — at least, for now.

Six blocks of manufacturing operations, auto body shops, art galleries in Denver are about to be redeveloped and outfitted with the fitting Renaissance-like name of Giambrocco.   The co-venture of Tributary Real Estate and Charles Street Partners is an extension of the wildly popular RiNo District and will include 500,000-sq.-ft. of office space, 350 market-rate and affordable apartments, art studios, and retail “strategically located in hot spots,” according to a press release.  

There is good news for retailers in a just-released 2017 back-to-school spending forecast.     Retail sales during the back-to-school shopping season of July and August 2017 will grow 4.0% over 2016, according to eMarketer’s forecast. Retail sales in the U.S. during those core months will reach an estimated $857.18 billion, accounting for 17.0% of total retail sales for the year.