Direct To Consumer (DTC)

Sequels are rarely better than the original, but the second annual Amazon Prime Day may deserve comparisons to “The Godfather Part II” and “The Empire Strikes Back.”  

Target Corp. is expanding its portfolio of smaller stores.

The chain expects to roll out 14 more of its smaller stores this year, including a 21,000-sq.-ft. location in the Queens borough of New York City, which is opening this week, according the New York Post.

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.