The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
THE CHEAT SHEET
Bankruptcy Court’s Newest Graduates
J.C. Penney | Source: Shutterstock
The Bottom Line: The trend of malls owning their most troubled tenants is the latest chapter in a story many expected to be wrapped up by now. It's been conventional wisdom for a decade that there are too many stores competing for the attention of American shoppers, but there's too much money sunk into brands and the malls that house them for investors, landlords and creditors to pull the plug.
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Fashion Week's Make-or-Break Moments
David Koma's Autumn/Winter 2020 show during London Fashion Week | Source: Getty Images
Fast Fashion's Slow Recovery
The owners of both Zara and H&M will give sales updates this week. | Source: Matthew Horwood/Getty Images
The pandemic has acted as an accelerant for the long-term trends reshaping the fashion industry, and many brands find themselves ill-equipped to handle a reality they thought would take years or even decades longer to arrive. Fast fashion's giants have had an easy time adjusting to the shift from officewear to loungewear; after all, they are set up to chase trends the moment they surface on Instagram. The owners of Zara and H&M said earlier in the pandemic they were confident that sales would quickly rebound. This week, we'll see if they were right.
Zara and H&M were also in the middle of digital pivots before Covid-19 touched off an e-commerce boom, though the jury was still out on whether those efforts were bearing fruit. Inditex's announcement that it would close 1,200 stores was an indication that the company expects a permanent shift in consumer behaviour.
The Bottom Line: Watch for whether these companies address the resale market, which has gotten a big boost during the pandemic. (Hennes & Mauritz's Cos brand launched resale earlier this month.) Though still small, sites that make it easy for consumers to buy and sell used clothes play a similar role in allowing budget-conscious shoppers to keep their closets fresh.
SUNDAY READING
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Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.
Manhattanites had little love for the $25 billion megaproject when it opened five years ago (the pandemic lockdowns didn't help, either). But a constantly shifting mix of stores, restaurants and experiences is now drawing large numbers of both locals and tourists.