May 2022

Once a month, our team gathers a selection of the latest news about Retail, CPG & Luxury. 
Discover below the articles that have held our attention!

The Press Review Team:  Flore Gradassi, Léa Korenian, Suzanne Verdier, Camille Chevreau - Consultants in Retail / CPG / Luxury 

Hottest news in the sector

Fears of an impending recession are forcing rapid grocery delivery companies to slam the brakes on growth. This week, two of the largest instant grocery apps, Getir and Gorillas, announced decisions to lay off hundreds of employees. Getir told staff Wednesday that it plans to reduce its global 6000 employees headcount by 14%. Gorillas on Tuesday said it was making the “extremely hard decision” to let go about 300 of its employees, citing the need to reach profitability in the long run. The Berlin-based company is also evaluating a possible exit from Italy, Spain, Denmark and Belgium, among other “strategic options,” as it shifts focus to more profitable markets like the U.S., U.K. and Germany. Instant grocery delivery services have long faced questions over the viability of their business models, which tend to sell essential goods at a premium to supermarkets while relying on offering generous discounts to lure in new users. Now, with Covid restrictions largely disappearing around the world, and prices on the rise, the future is becoming uncertain for the space.

CNBC - 2022/05/26 - More details

Chanel performed well in 2021 with 14.61 billion euros of sales, an increase of 27.4% compared to 2019, despite China at a standstill. Sales reached a record level in 2021 in all categories: fashion, leather goods, watches, perfumes and skincare products. As it is often the case in time of crisis, local customers prefer to buy luxury products from well-established brands. The group has invested $758 million in the transformation of its distribution network. The 2021 results hence reinforce the strategy of Chanel: maintaining the price harmonization approach to avoid significant price differences between markets and reaffirming not to sell fashion products, watches and jewelry online.

Les Echos - 2022/05/24 - More details

On the occasion of the fifth edition of its special days, the world's number one luxury company LVMH will open in October 95 of its sites usually inaccessible to the general public. The operation will take place on October 14, 15 and 16, 2022 in 16 countries. Some new places like the Tiffany design studio in New York or the Belmond hotels in Italy should also open their doors to the public. In Paris, some locations will also open for the first time, such as Officine Universelle Buly (acquired by LVMH in 2021), Place Vendôme jeweler Repossi, Kenzo design studios and Berluti's atelier grande-mesure tailleur. In 2018, 180,000 visitors had participated in the last edition of the Journées Particulières, which, outside of the pandemic, have been held every two years since 2011.

Fashion United - 2022/05/30 - More details

Notable Trends in the sector

Although mature, the United States, the leading market in the sector seem more promising for luxury brands than China, which has come to a partial halt with its zero covid strategy and Europe, with uncertain repercussions of the war in Ukraine. One can note a multiplication of fashion shows and store openings: Louis Vuitton presented its latest Cruise show in San Diego (California), Dior in Los Angeles for its Men Spring collection and Balenciaga (Kering) in New-York. New York is indeed a market in itself: the city represents 20% of the U.S. market and remains larger than the third largest market in the world, Japan. Moreover, Miami, thanks to covid and the migration of teleworkers is more and more important. Hermès opened as well a store in Houston (Texas) in April and will reopen its Madison Avenue store in New York in October. Tiffany (LVMH) on the Fifth Avenue will reopen during Fall.

Les Echos - 2022/05/22 - More details

The Amazon Style fashion retail space has opened at The Americana at Brand shopping mall in Los Angeles. The new concept offers a selection of apparel, shoes and accessories. The items featured in the store also have QR codes providing information from sizing to customer ratings, the company said. "Customers can shop the millions of items from amazon.com from their couch and deliver it to the store. And we'll have a fitting room available for them when they arrive." said the store managing director. The clothing store isn't Amazon's first foray into a physical fashion store, the retail conglomerate has opened physical grocery stores, book stores, and in 2017, it bought Whole Foods Market. In 2021, Amazon launched a hair salon in London for augmented reality hair consultations as well. National Retail Federation stated : "We're seeing a lot of new terms pop up whether it's hybrid shopping or multi-channel shopping, but really what it boils down to is this idea that we can't separate online and offline anymore".

Good Morning America - 2022/05/26 - More details

Meanwhile in France

The french sports and urban fashion brand Lacoste just opened a flagship store on the favorite tourists' avenue of Paris. London, Shanghai and New York will follow. With the rise of online sales, which account for 30% of turnover, using shop windows in the heart of big cities plays a key role in the brand communication as it's strengthening its reputation. Lacoste aims to double its turnover in a few years by boosting its sales on the women and shoes departments which are two sectors not so developed yet.

Les Echos - 2022/05/31 - More details

Please share with us your favorite articles to be featured in the next edition of our Press Review: presse_retail@bearingpoint.com
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