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.
Fourteen percent of the US retail market is coming up for lease renewals this year, furthering a trend towards shorter length leases, reports CNBC, as retailers struggle to fill vacant spaces.
Retailers are thinking carefully about their store networks and looking to exit enclosed shopping malls.
VF Corp is among the companies that has said its leases are getting shorter, especially coming out of the pandemic. Its average lease term now is four years. Traditionally, retailers signed 10 or 20-year leases when opening new stores.
While shorter leases give stores more leverage, mall owners may increase rates in a few years. David Simon, chief executive of Simon Property Group, told analysts in February that “I’d rather negotiate two or three years from now.”
The category’s biggest brands by market capitalisation report results this week, and will need to show they have a plan to fend off fast-growing competition.
By investing in an elevated product and shopping experience, Spanish retailers Inditex and Mango are seeing tremendous growth despite fierce competition from the likes of Temu and a cash-strapped consumer.
The ByteDance-owned app’s e-commerce play has been met with mixed response from users. Still, sales seem to keep ticking up.
The fashion resale company finally became profitable last year, but it was at the cost of losing consignors who complain that reselling is no longer as lucrative as it once was on the platform.