FROM THE DESK OF DEBORAH WEINSWIG

Going to the Mall in Los Angeles? Bring Your Vaccine Card On November 8, one of the US’s strictest vaccine mandates went into effect in Los Angeles (LA), California, requiring residents aged 12 years and above to show proof of full vaccination to enter indoor areas including bars, concert venues, convention centers, gyms, malls, movie theaters, museums, salons, spas and restaurants. These requirements build on those of Los Angeles County, which required proof of full vaccination at bars, breweries, distilleries, lounges, nightclubs and wineries from October 7. Businesses that do not comply face a citation on the first offense, increasing to $1,000 for a second violation, and rising for subsequent violations. We have seen other recent and future vaccine mandates arriving at the local and national level. Though not as far-reaching as the LA mandate, New York City implemented a vaccination mandate from September 13, covering entertainment venues, fitness studios and indoor dining. A first violation carries a $1,000 fine, the second carries a $2,000 fine, and subsequent violations bring a $5,000 fine. Subsequently, NYC required city workers to have at least one vaccine dose by October 29, else be placed on unpaid leave, with $500 bonuses offered for employees receiving their first shot. On a national level, on November 4 the US Biden Administration announced a new rule issued by the Occupational Safety and Health Administration that requires that companies with 100 or more employees have their employees fully vaccinated by January 4, 2022—or demonstrate weekly negative Covid-19 tests and wear face masks at work. Workers will get paid time off to get vaccinated. The key difference in the LA city ruling appears to be the inclusion of shopping malls in the vaccine requirement. We are all well aware of the financial damage that lockdowns and the closure of nonessential retail stores caused to the retail industry, and imposing an additional restriction on malls will bring new challenges. There is also already a consistent reluctance among consumers to visit shopping centers/malls and public places in general, which reduces shopper density in those venues. Our most recent US Consumer Tracker, from November 1, reports that more than one-third of respondents avoiding shopping centers/malls, and nearly 60% of respondents were avoiding all public spaces. It is possible that a vaccination card will become the must-have accessory for the current phase of the pandemic, reminiscent of the marketing slogan for the American Express card in the 1980s: “Don’t leave home without it.” At the Groceryshop conference in September, attendees were required to submit proof of vaccination, and the upcoming Consumer Electronics Show (CES) in January in Las Vegas and some of its offshoot events are also using the free CLEAR Health Pass service to provide proof of vaccination. The upcoming National Retail Federation (NRF) Big Show in January in New York City will also require proof of vaccination, though it has not yet specified what types of proof it will accept. New York State residents use an app called Excelsior to show vaccination status, and residents of other states and countries have similar apps or forms of documentation. The LA mandate shows that ever-present vaccine cards or apps may be persistent companions in the current stage of the pandemic. Knowing US consumers’ relentless drive to shop—particularly with the holiday shopping season happening in earnest now—this drive possibly exceeds consumer resistance to getting vaccinated, so the urge to shop could motivate people still on the fence to get the shot in order to gain access to the mall.

US RETAIL AND TECH HEADLINES

Coty Reports First Quarter Results; Revenues Up 22% (November 8) Company press release

• Beauty brand Coty has reported net revenues of $1.4 billion in its first quarter of fiscal 2022, up 22% year over year. Coty’s Prestige segment increased by 35% and its Consumer Beauty segment saw a rise of 4.4%. Adjusted operating income grew 14.6%.
• For the full year, the company estimates EBITDA of $900 million and adjusted EPS of $0.19–$0.23 per share. It has raised its comparable sales growth forecast to the low-to-mid teens, up from the low teens.

Fast-Fashion Retailer Primark Bets on Rapid Expansion in the US (November 9) MarketWatch.com

• UK-based apparel retailer Primark is set to expand its US presence from 13 stores to 60 over the next five years. The company opened its first US store in Boston in 2015.
• Over the next five years, the company plans to increase its global store count to 530 from 398. It launched four US stores in the last year, in Chicago, Florida, New Jersey and Philadelphia. Primark stated that the trading momentum in the US had given it “the confidence to increase the pace of expansion in this important market.”

Grocery Outlet Reports Third Quarter Results; Revenues Up 0.6% (November 9) Company press release

• Supermarket chain Grocery Outlet reported net revenues of $768.9 million in its 2021 third quarter, up 0.6% year over year. Comparable store sales fell by 4.3%, compared to a 9.1% increase in the same period last year. The company’s net income dropped by 57.7% to $17.1 million.
• The company opened seven new stores during the quarter, bringing its total number of locations to 407, across six states. During its fourth quarter of fiscal 2021, Grocery Outlet plans to open eight additional stores, which will take its total number of new stores opened in fiscal 2021 to 36.

The RealReal Reports Third Quarter Results; Revenues Increase by 53% (November 8) Company press release

• Online luxury goods marketplace The RealReal recorded net sales of $119 million in its 2021 third quarter, up 53% year over year. Its gross merchandise volume (GMV) increased by 50% to $368 million, while the company’s gross profit per order increased by $4.00 to $94.00 per order.
• The company reported a net loss of $57 million during the quarter, deteriorating from its $44 million loss in the same quarter last year. The RealReal’s adjusted EBITDA was $(31.5) million. The company’s adjusted EPS was $(0.47), compared to $(0.41) in the same quarter last year.

RH Announces Key Managerial Transitions and Promotions (November 8) Company press release

• Home-furnishing company RH has announced key managerial transitions and promotions. President of Home Delivery Fernando Garcia will also take on the role of Chief Supply Chain Officer and Stefan Duban, Senior Vice President and Chief Gallery Officer has been promoted to Chief Gallery and Customer Officer.
• RH also announced that Sandy Pilon, Chief People Officer, will resume responsibility for the global operations of its Customer Delight Centers and her new title will be Chief People and Values Officer.

EUROPE RETAIL AND TECH HEADLINES

Cainiao Network Opens First Smart Logistics Hub in Belgium (November 9) News.cn

• Cainiao Network, Alibaba Group’s logistics arm, has opened its first smart logistics hub at Belgium’s Liege airport. The facility is designed to streamline operation services at the airport, digitalizing the flow of goods between China and Europe and reducing the barriers to global trade for small- and medium-sized businesses.
• The smart hub is the largest of its kind in Europe. It is also a key part of the agreement made in 2018 between Alibaba and the Belgian government to join the global Electronic World Trade Platform, which promotes public–private partnerships and dialogue for global trade.

Carrefour and Meta Enter into a Global Strategic Partnership (November 9) Company press release

• France-based grocery chain Carrefour has entered into a strategic partnership with US-based technology conglomerate Meta to support Carrefour’s digital transformation in Argentina, Belgium, Brazil, France, Italy, Poland, Romania, Spain and Taiwan.
• The partnership will cover many aspects of Carrefour’s business, including customer relations, digital advertising, employee experience, internal communications, local communication and social commerce. It will involve Meta platforms and services including Facebook, Instagram, Messenger, WhatsApp and Workplace.

Clarks CEO Victor Herrero Steps Down After Nine Months (November 8) RetailGazette.co.uk

• Victor Herrero, CEO of British footwear retailer Clarks, has stepped down from his role after nine months. Johnny Chen, the company’s Chairman will take over as interim CEO until a new successor is appointed.
• Herrero was appointed CEO of Clarks in February 2021 following the exit of several members of the company’s executive team and former CEO Giorgio Presca. Herrero will remain at Clarks as a Director.

Guerlain To Open Pop-Up Beauty Boutique in Covent Garden, London (November 9) PropertyFundsWorld.com

• French beauty company Guerlain is set to open a pop-up boutique in London’s Covent Garden from November 20, 2021, to March 2022, as a way to celebrate the launch of the brand’s exclusive perfumery collection L’Art & La Matière.
• The pop-up will offer an immersive Haute Perfumerie experience in a space decorated in white marble and veneered wood. The store will also house the brand’s iconic collections and several exclusive limited-edition “Exceptional Creations”, made in collaboration with artists.

Primark Reports Fiscal 2021 Results; Adjusted Operating Profit Increases by 15% (November 9) Company press release

• Primark, owned by Associated British Foods (ABF), saw its revenues decline by 5.1% year over year in fiscal 2021 (ended September 18, 2021). Its adjusted operating profit increased by 15%, reaching £415 million ($561.8 million), with an adjusted operating profit margin of 7.4% for the full year.
• Primark expects its sales to increase substantially year over year in fiscal 2022 with a sharp improvement in adjusted operating margin to 10%. The company also sees growth potential in both existing and new markets and will fast-track expansion in France, Italy and the US.

ASIA RETAIL AND TECH HEADLINES

Dubai’s Dubuy.com Plans To Expand in Africa (November 9) GulfNews.com

• Dubai-based e-commerce company Dubuy.com has launched in Kenya. The company offers a business-to-business platform for the sale of automobiles, electronics, industrial tools and other items. Since its launch, the e-commerce platform has attracted approximately 550,000 visits.
• In the next six months, the company plans to expand into 17 new markets across Africa, including Congo, Egypt, South Africa, Tanzania and Uganda.

Good Glamm Group Raises $150 Million in Funding (November 10) ETRetail.com

• The Good Glamm Group, an India-based DTC beauty and personal care company, has raised $150 million in funding. The investment round was led by South Africa-based Prosus Ventures and private equity firm Warburg Pincus.
• The company is now valued at $1.2 billion, joining the unicorn club in India of startups valued at over $1 billion. Investors included Amazon, Ascent Capital, Bessemer Venture Partners, the Mankekar Family Office and L’Occitane.

Guangdong Market Regulator Summons 16 Major E-Commerce Platforms (November 10) GlobalTimes.cn

• The Guangdong Administration for Market Regulation in China has summoned 16 major e-commerce platforms, including Alibaba’s regional branch and Meituan Youxuan, to inform them of market violations and provide guidelines for online promotional activities in the annual Singles’ Day shopping festival.
• The market regulators warned the e-commerce players to avoid several issues, including false advertisement, high prices, improper handling of customer complaints and unfair competition.

Jollibee Acquires Stake in Milkshop (November 11) RetailNews.asia

• Philippines-based fast food company Jollibee Foods Corp. has acquired a majority stake in Milkshop International, which operates Taiwanese milk tea chain Milksha. This acquisition will help Jollibee enter the lucrative global beverage category.
• The acquisition deal is valued at $12.8 million. As part of the deal, Jollibee will acquire a 51% ownership stake in Milkshop. At present, Milkshop operates more than 250 outlets, with 231 stores in Taiwan, 12 in Singapore, four in Hong Kong, two in Melbourne and two in Vancouver.

PharmEasy Files for an IPO (November 10) ETRetail.com

• PharmEasy, an India-based online pharmacy and drugstore chain, has filed for an initial public offering (IPO) of up to ₹62.5 billion ($842.4 million). The investment round was led by CDPQ, Prosus Ventures, Temasek and TPG Growth.
• PharmEasy is also considering fundraising before the IPO through a private placement worth ₹12.5 billion ($168.1 million). In October 2021, the company raised $350 million in an equity financing round from multiple new investors, valuing the firm at $5.6 billion.