FROM THE DESK OF DEBORAH WEINSWIG

Taking Inclusivity to Product Offerings with Adaptive Apparel and Footwear This week, we published the latest in our Think Tank series—reports that are designed to offer our clients definitive perspectives on growing segments or emerging trends. Our latest research topic was adaptive clothing and footwear—products that are specifically designed to help people with disabilities to dress and live with greater ease and independence. It is a relatively new industry, with major retailers and brands pioneering the space over the past five years—and we are proud to offer a detailed analysis of the trajectory and opportunities in this important segment in apparel and footwear. Hard numbers demonstrate the scale and potential of this underserved segment. People with disabilities represent 12.7% of the US population, according to the US Census Bureau, but remain underserved in terms of market choices that are fashionable and/or functional. Coresight Research estimates that the market potential for adaptive apparel far exceeds the present level of adaptive spending—in fact, we estimate that the total addressable market for clothing and footwear purchases by people with disabilities is nearly 50 times greater than the current state of supply in adaptive products. Furthermore, we expect that consumer spending on adaptive apparel will grow at a faster rate than overall spending on apparel, as people with disabilities are requesting new products as well as new product categories. Beyond the numbers, the social and psychological impact of adaptive apparel cannot be ignored. It has an extraordinary ability to restore dignity and enhance confidence in people with disabilities as they go about their daily lives. In the course of our research, we heard from individuals who said that they are often noticed for their disability first. Clothing and footwear are important because they can help people to represent their personal style and feel more like themselves. Some individuals emphasized that they wanted apparel choices that allowed them to fit in with their friends and colleagues. One individual told us that clothing choices are important to him in breaking the perception that “he dresses that way because he is in a wheelchair.” Catering to the underlying demand of consumers with disabilities represents significant opportunities for retailers—not simply to build sales but to build loyalty among a diverse consumer base. Inclusivity as a movement has accelerated in light of the recent resurgence of social justice movements in the US, helping to inspire a global conversation on diversity and representation. As retailers make greater progress in inclusivity, they must consider not only corporate structures and employee representation but how their products address the entirety of the market. The push for greater inclusion will support more opportunities for people with disabilities—including in the worlds of work and sport. That, in turn, will necessitate more choices spanning a broad range of categories including professional attire, casual wear, sportswear and footwear. Tremendous progress has been made in getting the adaptive apparel market off the ground, with nearly 20 brands and retailers pioneering the space through new brands, brand extensions and, most recently, marketplaces. We urge others to follow, not simply for a dollar reward: Those retailers that sell apparel can and should exhibit values of inclusivity through the breadth of their product offering.

• Be sure to check out our full Think Tank report, The US Adaptive Apparel Market—Its Purpose and Promise.

US RETAIL AND TECH HEADLINES

Amazon Raises $1 Billion Sustainable Bond To Invest in Environmental and Social Causes (May 10) Company press release

• Amazon has issued its first sustainability bond, raising $1 billion. The proceeds will be invested in five key areas: affordable housing, clean transportation, renewable energy, socioeconomic advancement and empowerment, and sustainable buildings.
• The sustainability bond comes as part of the company’s Sustainable Bond Framework, which incorporates various climate and social commitments. The company aims to power its operations with 100% renewable energy by 2030 and to reach net-zero carbon by 2040.

Grocery Outlet Reports First-Quarter 2021 Results; Reiterates Plan To Open 36–38 stores in 2021 (May 11) Company press release

• Discount retailer Grocery Outlet reported a sales decrease of 1% year over year for its first quarter of fiscal 2021 (ended April 3, 2021). However, on a two-year basis (versus its first quarter of fiscal 2019), sales increased by 24%. Adjusted EPS decreased by 46% year over year but increased by 53% compared to 2019. During the quarter, the company opened nine net new stores, increasing its store count to 389 across six states.
• In fiscal 2021, the company plans to incur a capital expenditure of $130 million, net of tenant allowances. This reflects new store openings, existing store improvement and maintenance, as well as technology and infrastructure investments. Grocery Outlet also reiterated its plan to open 36–38 stores and close one store in fiscal 2021.

L Brands Reports First-Quarter 2021 Trading Update and Approves Plans To Separate Bath & Body Works and Victoria’s Secret (May 11) Company press release

• L Brands reported a sales increase of 83% year over year for its first quarter, ended May 1, 2021. When compared to its first quarter of fiscal 2019, sales were up 15%. By brand, Bath & Body Works’ sales were up 93% compared to the same period of 2020 and 60% compared to 2019, while Victoria’s Secret’s sales increased by 74% year over year but decreased by 7% compared to 2019.
• L Brands has also announced that its Board of Directors has approved a plan to separate Bath & Body Works and Victoria’s Secret into two independent, publicly traded companies, through a tax-free spin-off of Victoria’s Secret to L Brands’ shareholders. Management expects the transaction to be completed in August 2021.

Macy’s Announces Renewal of Flagship Herald Square Store and Plans To Spend $235 Million To Upgrade Surrounding Neighborhood (May 10) Company press release

• Macy’s has unveiled its vision for the renewal of its flagship Herald Square store in New York. The department store chain will invest $235 million to enhance the surrounding neighborhood—including building new subway entrances, developing more pedestrian space, improving transit connections, and installing subway station elevators in accordance with the Americans with Disabilities Act (ADA).
• In order to realize the upgrades, the company plans to capitalize on its Herald Square real estate, constructing a commercial office tower above its flagship store. Macy’s expects its upgrades to make $269 million in annual tax revenue for New York City and generate $4.29 billion annual economic output.

The RealReal Reports Strong First-Quarter 2021 Results; Expects GMV Growth of 75–80% in Its Second Quarter (May 10) Company press release

• Online luxury marketplace The RealReal has reported a sales increase of 27% year over year in its first quarter of fiscal 2021 (ended March 31, 2021). Compared to the first quarter of fiscal 2019, sales were up 26%. GMV grew by 27% year over year and by 45% compared to 2019. The company reported adjusted EPS of $(0.49) compared to $(0.39) in 2020 and $(2.80) in 2019.
• In its first quarter, the company added its highest quarterly number of new consignors to its platform to date—and cumulative consignor commission payouts surpassed the milestone of $2 billion, as of April 2021. The RealReal is performing well in its fine jewelry and high-value handbag categories. For its second quarter, the company stated that it expects GMV of $320–330 million, representing a growth of 75–80%.

EUROPE RETAIL AND TECH HEADLINES

De Bijenkorf Launches Austrian Online Store (May 10) RetailDetail.eu

• Dutch department store retailer De Bijenkorf has launched an online store in Austria. De Bijenkorf’s CEO Giovanni Colauto stated, “This expansion to Austria is the logical next step after the successful online rollout in Belgium, Germany and France.”
• The online store offers products across categories including beauty, fashion and home decor, from over 1,000 brands, such as Cartier, Gucci, Hugo Boss and Stone Island.

JD Sports Acquires Oi Polloi (May 10) RetailGazette.co.uk

• British sporting goods retailer JD sports has acquired Manchester-based menswear apparel retailer Oi Polloi. The acquisition includes Oi Polloi’s Northern Quarter store and its online assets.
• JD Sports CEO Peter Cowgill has been named the new director of Oi Polloi—Oi Polloi’s founders, Steve Sanderson and Nigel Lawson, will no longer be a part of the business.

Salvatore Ferragamo Registers Net Loss Despite Uplift in Revenues (May 11) Company press release

• Italian luxury goods company Salvatore Ferragamo has reported €245 million ($295.4 million) in total revenues, up 13% (at constant exchange rates) year over year for its first quarter (ended March 31, 2021). The company registered a net loss of €0.6 million ($0.72 million) during the same period.
• The group posted a 51.7% increase in revenues in the Asia-Pacific region, driven by a strong performance in China, which reported revenue growth of over 105% year over year. EMEA revenues, however, decreased by 22.5%, while North America revenues were up 18.2%.

Waitrose Extends Mobile Parking App to Total 17 Stores (May 11) RetailTechnology.co.uk

• Supermarket chain Waitrose has announced plans to extend its mobile parking app Flowbird to 14 additional locations after positive feedback from stores in Balham, Wallingford and Wells. The service was first launched in those three stores in March this year.
• Flowbird enables shoppers to book their parking session on arrival and includes an option to extend their stay remotely. In addition, the app allows Waitrose shoppers to redeem their parking fee based on an in-store spend threshold.

ASIA RETAIL AND TECH HEADLINES

Dingdong Maicai Raises $330 Million in Series D-Plus Funding Round (May 12) ChannelNewsAsia.com

• Dingdong Maicai, a Chinese on-demand fresh-food-delivery platform, has raised $300 million in a Series D-Plus funding round. The round was led by Japanese holding company Softbank Vision Fund, according to company’s financial advisor Cygnus Equity.
• This round brings the company’s total funds raised to over $1 billion, following its $700 million Series D round in April 2021. Cygnus Equity stated that Dingdong will use the funding to expand into new regions, increase its workforce and invest in its supply chain.

Flipkart Announces Plans To Step Up Grocery Supply Chain Infrastructure (May 11) Company press release

• Indian e-commerce marketplace Flipkart has announced that it will expand its fulfillment-center grocery capacity by more than 800,000 square feet over the next three months, across five cities: Chennai, Coimbatore, Delhi, Hyderabad and Kolkata.
• The additional capacity will help Flipkart serve over 73,000 grocery orders per day. The company has stated that its current grocery fulfillment network serves close to 64,000 orders a day, spread across Bengaluru, Chennai, Delhi, Hyderabad and Mumbai, among other cities. In April 2021, the company announced the expansion of its hyperlocal service Flipkart Quick to six new cities: Delhi, Gurugram, Ghaziabad, Hyderabad, Noida and Pune.

Moncler Opens Enfant Boutique in Hong Kong (May 10) InsideRetail.asia

• Italian luxury fashion brand Moncler has opened a new boutique, Moncler Enfant, in Harbour City shopping center in Kowloon, Hong Kong, dedicated to the company’s children’s apparel range. Management stated that the new store complements the brand’s Harbour City flagship store, first opened in 2017, and strengthens the company’s presence in the territory.
• The new store spans 1,507 square feet. The company has stated that the store features “mini-me” versions of its core adult collection, reinterpreted in playful new styles and designed with children’s need for practicality and flexibility in mind.

Onion Global Listed on New York Stock Exchange (NYSE) (May 10) PanDaily.com

• Chinese lifestyle brand Onion Global has debuted on the NYSE under the ticker symbol “OG,” offering 12.5 American depository shares and achieving the maximum increase of more than 57%.
• The prospectus disclosed that the company recorded annual revenue of over ¥3.8 billion ($591 million) for 2020, with net profit of ¥200 million ($31 million), more than double that of 2019. It completed five separate rounds of financing before going public.

Redress Unveils Secondhand Clothing Shop in Hong Kong (May 10) InsideRetail.asia

• Hong Kong-based environmental NGO Redress has opened its first secondhand clothing and accessories shop in Sham Shui Po in Hong Kong, called The Redress Closet. The move supports the charity’s wider mission to reduce textile waste and make circular clothing accessible to the public.
• The store offers a broad selection of secondhand items at accessible prices—including menswear and womenswear and covering categories including accessories and bags. Shoppers are also encouraged to donate their unwanted clothes for sorting and redistribution through the charity’s “Takeback” program.