FROM THE DESK OF DEBORAH WEINSWIG

Are We Heading Back to the Roaring 20s? American author Mark Twain is often attributed as the source of the quote (apocryphally, it seems), “History doesn’t repeat itself, but it often rhymes,” which rings true for the many parallels between the 2020s and the century-ago decade. First, there’s the pandemic. The years 1918–1919 saw the ending of the First World War and the pandemic commonly known as the Spanish Flu (which did not originate from Spain). Photos from that era look all too familiar today, with citizens being required to wear masks in public. The ending of the Great War and the mitigation of the pandemic unleashed a period of exceptional economic and cultural growth in the US, referred to as the “Roaring 20s.” US real GDP grew by 42% from 1920 to 1929 (a 4.0% CAGR), and the US grew into a national, consumer society. Due to nationwide advertising and the proliferation of chain stores, Americans across the country bought the same goods and shopped at many of the same stores. There were also many developments on the cultural front. Returning US soldiers had experienced a bit of continental European life during the war and yearned to have fun again, which led to the loosening of some cultural constraints back home. Despite the ratification of laws prohibiting the consumption of alcohol (prohibition existed from 1920 to 1933), the public continued to consume alcohol, which continued in under-the-radar speakeasies. The decade is also called The Jazz Age, reflecting a major directional change in popular music from traditional tunes to the experimental nature of jazz. Currently, social media has a significant impact on popular culture, which will no doubt continue in the 2020’s. Social media has also dramatically changed how people interact and communicate and is likely to increase its influence further among a geographically fragmented population, having recently become a major force in the political and investing spheres. The pandemic has shifted many consumer behaviors, with the Roaring 2020s starting at home. Consumption of alcohol at home has increased, as locked-down consumers seek to entertain themselves. Despite increased time spent at home in 2020, the birth rate was essentially flat. Fashion changed dramatically in the 1920s, accompanying a surge in interest in fashion magazines and the fashion trends of Chanel and other European houses. Women’s attire broke off from its Victorian norms: Female consumers abandoned corsets and began wearing shorter skirts and cosmetics, a style attributed to “flappers.” US women’s more-visible roles in society were accompanied by the receipt of the right to vote in 1920. Several ethnic communities embraced zoot suits, which featured wide-legged trousers and long coats with wide lapels and padded shoulders. Today’s fashions have departed from the traditional hem-length cycles, with younger generations preferring to create an eclectic mix of styles from the decades spanning from the 1960s to recent times, in addition to becoming gender-fluid and more inclusive. Then came the Wall Street Crash of 1929, which bankrupted investors and put a serious damper on the fun of the Roaring 20s. The Dow Jones Industrial Average fell by a total of 25% from Black Thursday through the following Black Tuesday (October 24–29, 1929), with many investors buying stocks on borrowed money, receiving margin calls and losing their entire investments. The stock market crash led to the Great Depression, which continued through 1939, in addition to the creation of the US Securities and Exchange Commission to regulate the securities industry. We have also seen a recent accumulation of wealth. The S&P 500 Index more than doubled from January 2011 to January 2021, growing at a solid 8% CAGR. It expanded by 75% from its low in late March 2020 to a 52-week high this week, generating significant wealth for investors. The massive speculation in stocks on margin in the 1920s echoes current events, in which social media-fueled investors incited the mass-buying of certain stocks to create a “short squeeze,” i.e., forcing short sellers to buy shares which creates large spikes in share prices. At the same time, retail (i.e., individual) investors’ trading has surged, returning the power base of investing to normal citizens. Employees working from home and online are able to trade stocks without being under the watchful eye of their employers. As always, opinions vary widely as to whether we are currently in a stock market bubble akin to 1929, yet many analysts believe that we are in the early stages of another bull market. The experience of the epidemic of 1918 shows that this calamity, too, shall pass. We anticipate that an enormous wave of relief will blanket the world once the vaccines start to kick in and when we will be able to resume our prior activities and habits. We also look forward to a return of live performances and activities, and there is likely an enormous amount of pent-up creativity among performers and artists that waiting to be released, offering the promise of more Roaring 20s.

US RETAIL AND TECH HEADLINES

DoorDash Acquires Chowbotics (February 8) TheVerge.com

• Food-delivery platform DoorDash has announced that it has acquired salad-making robotics startup Chowbotics, without disclosing the financial terms of the deal. Founded in 2014, Chowbotics is known for its fresh-food robot Sally, which is essentially a salad vending machine that can create customizable cereals, salads and snacks within a limited space.
• Door Dash Co-Founder Stanley Tang said, “We have long admired the work that Chowbotics has done to increase access to fresh meals, with its groundbreaking robotics product and vision… With the Chowbotics team on board, we can explore new use cases and customers, providing another service to help our merchants grow.”

GNC Launches Same-Day Delivery (February 9) ChainStoreAge.com

• Specialty health and wellness retailer GNC has partnered with Target-owned on-demand delivery platform Shipt to offer same-day online delivery across the US.
• “The pandemic has really done a number on our bodies, both physically and mentally,” said Josh Burris, President, GNC Holdings, LLC. “This year, in particular, many are finding it difficult to stick to their resolutions. By tapping into the infrastructure Shipt has in place, we can help people re-set their goals and offer our customers same-day delivery as they continue on their wellness journey.”

Kohl’s Partners with Eddie Bauer (February 8) MarketWatch.com

• Department store chain Kohl’s has announced that it is partnering with outdoor apparel brand Eddie Bauer, with a view to launching in the US during the fall season. According to a company statement, Kohl’s will sell a range of Eddie Bauer seasonal gear and year-round products for kids, men and women "in as many as 500 stores" and online.
• The partnership reflects the retailer’s strategic goal, which it announced last year, to grow activewear from 20% to at least 30% of its sales, "which includes driving growth in the outdoor category."

Retail Tech Startup Unveils Fulfillment Tool (February 9) RetailDive.com

• Cloud-based retail technology company Tulip has announced the launch of Fulfillment, a tool that facilitates retailers in managing, tracking and delivering digital orders directly from their stores.
• Fulfillment allows retailers to offer buy online, pick up in store (BOPIS); curbside pickup; reserve online, pick up in store; and ship from store services. The technology also enables store associates to manage inventory status and reports, offer shopping support, and supervise workflows, according to a company press release.

Simon Property Group Seeks To Block Ascena Retail Bankruptcy (February 8) BizJournals.com

• Mall owner Simon Property Group has filed papers with the US bankruptcy court, seeking to block Ascena Retail Group’s Chapter 11 reorganization as it is wary that this will allow Sycamore Partners, which bought several Ascena brands out of bankruptcy, to shutter more stores, weakening a master lease agreement the mall operator previously negotiated with Ascena Retail Group.
• In its paperwork filed with the bankruptcy court, the mall owner voiced its concern that “the purchaser has laid bare its intention to significantly reduce the business’ physical store presence in the near term,” making Sycamore “a significantly less creditworthy lessee than the entity with which the Simon Landlords originally contracted.”

EUROPE RETAIL AND TECH HEADLINES

Boohoo Group Buys Remaining Arcadia Brands (February 8) Company release

• Boohoo announced its plans to acquire all e-commerce rights and digital assets of Arcadia’s remaining brands including Burton, Dorothy Perkins and Wallis for £25.2 million ($34.8 million).
• The acquisition of Burton will help Boohoo to strengthen its menswear segment.

Carrefour Partners with Altarea To Develop Urban Development Projects (February 8) Company release

• Carrefour has entered into a partnership with Altarea, a French REIT to redevelop three of Carrefour’s co-owned sites in Flins/Aubergenville, Nante and Sartrouville.
• The Altarea group will help Carrefour to transform and convert these existing business sites into new and lively neighborhoods. These changes are likely to enhance the economic value of these regions.

Frasers Group Sells Stake in French Connection (February 8) Retail Insight Network

• Mike Ashley’s Frasers Group has sold its entire 24.9% stake in UK retailer French Connection.
• French Connection is also looking at a potential takeover—the company is in very early stages of discussion with Spotlight Brands and Go Global Retail.

John Lewis Introduces 50 New Brands (February 9) Company release

• UK-based department store chain John Lewis has announced plans to add 50 new brands in its fashion and beauty segment in order to meet rising demand for casual clothing arising from Covid-19 pandemic.
• The company has decided to add new brands Girlfriend Collective, New Balance and Ninety Percent under its newly launched athleisure segment. Additionally, it has plans to onboard various online brands including Aab Collection, Honey & Toast, Kemi Telford, Nubian Skin and Ro&Zo to accelerate its online sales.

Ocado Group Announces Strong Retail Revenue Growth of 35% in 2020 (February 9) Company release

• Ocado Group reported a 35% increase in retail revenues in its in full-year results for 2020, reflecting strong demand for online grocery in the UK. The company’s retail sales increased to £2.2 billion ($3.0 billion) in 2020 from £1.6 billion ($2.2 billion) reported in 2019. Group EBITDA jumped 68.8% to £73.1 million ($101 million).
• During 2020, the company invested £525.6 million ($726.4 million) toward expansion and technology innovation to meet growing consumer demand for online grocery.

ASIA RETAIL AND TECH HEADLINES

Coty Announces Launch of Gucci Beauty Flagship Store on Tmall Luxury Pavilion (February 8) Coty.com

• Coty has announced the opening of a Gucci Beauty flagship store on the Tmall Luxury Pavilion—Alibaba’s dedicated platform for luxury and designer brands. The digital store will connect the Gucci Beauty product portfolio with more than 770 million Chinese consumers on the Tmall platform.
• The move will enable the brand to significantly scale up its reach and engagement with consumers in the Chinese luxury beauty market. The launch follows the opening of Gucci’s first flagship store on the platform dedicated to its fashion collections in December 2020.

Foodpanda Launches 150th Cloud Grocery Store Pandamart in Asia (February 8) Newshubasia.com

• Food delivery service Foodpanda has announced the launch of its 150th Pandamart store in Asia. Pandamart stores are cloud grocery stores that are purpose-built for deliveries, with no walk-in retail storefront.
• Since its launch in Singapore in October 2019, Pandamart rolled out to 40 cities across eight countries in the region. Foodpanda claims that it can now ship more than 4,000 grocery items within 25 minutes of an order being received.

Italian Sustainable Brand Kampos Enters South Korean Market (February 10) Malaymail.com

• Italian sustainable fashion brand Kampos has signed a partnership with Seoul-based local distributor Sanghyun Yu to launch in South Korea, including an e-commerce site. The company said that the move to South Korea is part of a broader strategy to expand beyond Europe.
• Kampos offers an environmentally friendly line of apparel products made from recycled plastic bottles, and abandoned fishing nets alongside organic fabrics.

Lazada Partners with Insider To Deliver Personalized Online Experiences (February 9) Yahoofinance.com

• Alibaba-owned e-commerce platform Lazada has announced a partnership with integrated growth management company Insider, in order to deliver highly personalized online experiences. Insider will help Lazada to optimize its crucial funnel metrics such as average order value, conversion rate and return on ad spending across channels.
• Insider will also help Lazada to build an individualized cross-channel customer experience strategy and improve its customer acquisition.

TUMI Launches Virtual Store for Asia Pacific and Middle East Customers (February 8) Retailnews.asia

• Travel luxury brand TUMI has launched a virtual store to debut its Spring 2021 collection, specifically catering to its customers across the Asia Pacific and Middle East regions.
• The virtual store uses a 360-degree augmented reality (AR) feature that allows customers to view products in 3D format and create virtual custom styles. Customers can also take a three-second video selfie at the TUMI virtual magic mirror that can be shared with friends on social media.