Direct To Consumer (DTC)

Consumer goods giant Unilever is paying a reported $1 billion to buy an online retail start-up that has yet to turn to profit.   Unilever PLC announced it is buying Dollar Shave Club, the razor delivery subscription service known for its irreverent brand positioning and viral You Tube videos. Terms of the deal were not announced, but The New York Times and other media outlets reported Unilever is paying $1 billion in cash for the scrappy company, which has yet to turn a profit but expects to do so by yearend.  

The Unilever-Dollar Shave Club deal reflects the growing importance of emerging brands, vertical integration, and the consumer direct route to market favored by new CPG market entrants such as Dollar Shave Club, Honest Co., and NatureBox.

It appears that Aeropostale Inc., which declared Chapter 11 bankruptcy in May, will be selling its assets rather than reorganizing.       The teen retailer said in court papers that “reorganization on a standalone basis is not feasible.” Instead, it will look for a “stalking horse” to make the lead bid at an auction next month, Bloomberg reported.   

Versa Capital Management has formed a new holding company, called Eastern Outfitters, which will continue the restructured operations of Eastern Mountain Sports (EMS) and Bob’s Stores.  

Sonos, known for its “smart” sound systems, has made its bricks-and-mortar debut with an interactive store that celebrates music.     The store, in the SoHo section of Manhattan, is designed to allow visitors to listen to music — and experience Sonos products — the way they would at home. It also offers "Simple Set Up," a white-glove, in-home service that includes local delivery, set-up, and product introductions for in-store purchases.   

Ross Stores remains among the nation’s most expansion-minded retailers.     The company  is opening a total of 24 Ross Dress for Less stores and seven dd's Discounts stores across 15 different states in June and July. The openings are part of the company's 2016 expansion plans, which call for the opening of approximately 70 Ross stores and 20 dd's Discounts locations throughout the year.   

Consumers who purchase at off-price retail outlets are a growing group.   According to the latest Checkout Tracking data from global information company The NPD Group, two-thirds of all consumers shop at off-price retailers. Checkout Tracking analysis, which analyzes receipts and follows consumer purchasing behavior, also shows off-price buyers represent 75% of apparel purchases across all retail channels.  

An online retailer specializing in men’s custom-tailored suits and menswear, is set to open its third physical location.   Black Label will open a store on July 11 in downtown Chicago this summer, the Chicago Tribune reported. In addition to suits, the store will also shirts, suits, denim, chinos and outerwear.   To date, the retailer has opened a store in Boston, and one in Washington, D.C. It hopes to double its store count next year, the report said.