PUMA X MAYBELLINE reveal their first special-edition Apparel and Footwear Collection

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Article from BizNiz Blog

 

After the launch of their high-performance makeup collection earlier this year, global sports brand PUMA and #1 cosmetics brand Maybelline New York have teamed up again to debut a special-edition apparel and footwear collection.

 

For over 100 years, Maybelline New York has transformed the beauty scene by creating the world’s first modern mascara. The cosmetic brand has lived up to its reputation as the ultimate make-up expert due to its countless on-trend and high-performance beauty products. As the perfect mix of beauty, fashion and sport, the collection between PUMA and MAYBELLINE brings together MAYBELLINE’s hard-working product and on the pulse trends with PUMA’s sports and fashion DNA, resulting in a collection inspired by both brands featuring lipstick kisses and playful make-up references.

Designed for the ultimate streetstyle, the PUMA X MAYBELLINE collection shows off fierce make-up influences. Retailing for R1 799, the PUMA Cali X MAYBELLINE gets a printed “mascara”-smeared Formstrip. Made of a leather upper with a perforated leather toe, the sneaker in its white and black colour combo also features subtle colour drops in pastel rose and the Maybelline New York logo on the tongue.

PUMA X MAYBELLINE also includes matching apparel like the PUMA X MAYBELLINE Hoody (R1 499) with drawcord for customized comfort as well as the PUMA X MAYBELLINE Top (R1 199) and Leggings (R1 099) with playful graphics.

Get ready to turn some heads – PUMA X MAYBELLINE drops at PUMA Select, PUMA Braamfontein and PUMA Sandton City from 9 October 2019.

 

Edgars Revamps Online Store

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Article from BizCommunity website

 

Shortly after launching its new concept store in Johannesburg, Edgars has announced the revamp of its online shopping site. According to the retailer, the site has been designed with the mobile experience in mind, and offers products across the fashion, homeware and beauty categories.

 

The site now has a wish list feature that allows shoppers to create multiple lists for special occasions like summer holidays, the festive season or Valentine’s Day – all of which can be shared via email.

 

Customers are also able to check stock quantity of specific items in the various Edgars stores.

 

The search function now returns more relevant results across a wide selection of products, brands, category, articles and promotions, and filters are more defined. For example, in sunglasses and eyewear, one can filter for lens coating, lens type and shape, while in eye makeup, one can filter for colour family, finish and form.

 

Customers are able to write product reviews, obtain their Thank U account statements and points balance, track orders, log a return or exchange, and link or delink their cards. While the ‘Inspire’ section links to the Edgars Mag, featuring content like beauty tutorials, interviews and fashion tips.

How Female Consumers are Shaping SA’s E-commerce Boom

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Article found on BizCommunity

High mobile penetration, secure payment options and changing spending habits, and female consumers, are driving South Africa’s e-commerce industry. This is according to IPG Mediabrands’ specialist digital agency, Reprise.

Natasha Courtney, social media manager at Reprise South Africa, says: “Currently only a quarter of South African retailers are spending through digital channels but with more of the population shifting their behaviour and budgets to online shopping, more retailers are making their products and services available online all the time.”

Online shopping is a female space

Women especially prefer interactive and easy-to-use options that allow them to share their shopping experiences with other users and to get feedback and user ratings about the products or services they’re interested in purchasing.

“Out of the 39% of women who are actively shopping online in South Africa, there was one predominant reason they enjoyed shopping this way – convenience,” says Courtney.

Digital shopping platform ThinkOver says that 89% of women will wait for an item to go on sale before purchasing. More than half of respondents (55%) said they continuously check a retailer’s website for sales while 58% monitor their inboxes for sale alerts.

What’s more, 75% of women said they get upset when an item they wanted to buy went on sale and they weren’t aware of it.

When it comes to preferred payment terms, 54% of South African shoppers like to pay cash on delivery. When asked about debit card payments, 52% of consumers preferred this method.

“Loyalty programmes are a big part of a woman’s shopping experience with the study finding that 80% of women belong to store loyalty programmes,” she says. “And we’re spending a lot of time online – the majority of female shoppers spend an average of an hour a day looking for great deals before we buy.”

No size fits all

For South African female consumers, the three most popular categories of online purchases are clothing, entertainment and education as well as tickets for events. Over 75% of women stated that they go online and choose what they want to purchase before they go out, suggesting that most purchases are pre-meditated and not a spur of the moment decision.

“Pick n Pay’s integrated annual report for 2018 showed a 70% increase in its customers visiting their website from a mobile device since they launched their online grocery shop,” says Courtney.

“But there are some downsides too – when purchasing clothing online, some women say that the clothing sizes are incorrect on delivery and the return policies and overall service turnaround times are the areas that need attention from retailers.”

Poor user experience on websites is another deterrent to online shopping.

The m-wave

“Mobile technology is transforming e-commerce in Africa and consumers are actually more likely to have a mobile device than a bank account,” she says. “South Africans are also becoming more comfortable with mobile shopping due to, for example, easy-to-use apps for ordering car rides or food becoming more commonplace.”

This research shows that the online shopping industry is growing and is set to grow even more in the coming years. It is also clear that consumers will choose online payment partners they can trust and that provide peace of mind that the security of their financial information will be a priority.

“For now, traditional shopping habits still dominate in South Africa but with almost half the population set to make an online purchase in the next year, it is clear that the e-commerce market has huge potential and will continue to grow year on year. It’s hugely exciting for retailers and consumers alike!”

Nike aims Sneaker Subscriber Scheme at $10 Billion US Kids Market

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Article by: © Thomson Reuters 2019 All rights reserved.

Nike Inc will launch a new subscription service for kids sneakers this week that seeks to woo parents with an offer of fewer nightmarish trips to the shoe store in exchange for a regular fee and consistent brand loyalty.

Aimed at the U.S. kids shoe market, estimated at an annual $10 billion (£8.29 billion), “Adventure Club” builds on Nike’s SNKRS app, which notifies shoppers every time it launches a new shoe or has an exclusive sneaker at a nearby store.

It is Nike’s latest plan to keep shoppers coming back to its brands as it struggles with strong competition from Adidas in its U.S. home market and a resurgence in retro brands like Fila and Reebok.

With three tiers of subscription – $20, $30 or $50 a month – Nike Adventure Club is aimed at 2-year to 10-year olds and effectively gives subscribers a new pair of Nike sneakers that cost about $50 or more once a month, once every two months or once every three.

Depending on whether the kids pick, for example, Nike Air Max or Converse sneakers, members will save almost nothing or up to $50 on each pair.

“Solving the need for parents with kids aged 2-10 years means that we are going to start building relationships through kids,” the scheme’s manager for Nike, Dave Cobban, said.

The big challenge, he admitted, was helping parents get the right shoe for kids with constantly growing feet without trips to the mall or a series of mailed returns.

Nike’s subscription box will include a sizing chart in the form of a fridge magnet to help parents measure their children’s feet. The company said a pilot program with 10,000 members has shown that only a small proportion of parents get the size wrong.

“About 15% of the first order is generally not the right size. When the (customer) makes the first order and it’s the wrong size, we allow (the customer) to immediately order a new shoe and the new shoe comes before you have to send back the old one,” he said.

“The next time less than 5% make a mistake in ordering the right size on their second order and after that, it almost comes (down) to zero.”

Walmart Inc and Macy’s are already using the subscription model for beauty products to keep consumers interested in a market that is flooded by online specialty retailers and Amazon.com Inc.

Digital ‘clothes’ could be the next big Instagram hit

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Article by Lucy Handley & James Wright

Hip Scandinavian fashion retailer Carlings knew it had to make a big impression when it launched its first online store in 2018 — years after most other apparel brands.

Carlings has more than 200 physical stores in Norway, Finland and Sweden and is known for its wide range of jeans and casual clothes. When it finally started selling online last year, it wanted to do something that would draw people to its website and make it stand out.

Virtual “clothes,” pieces that were available only as digital items, turned out to be the answer.

It turned to Virtue, the creative agency owned by Vice, for a big idea. “We started thinking about what would a web shop look like 10 years ahead,” Morten Grubak, executive creative director of Virtue Nordic, told CNBC’s James Wright.

“Of course (we were) inspired by the gaming industry, games like ‘Fortnite’ and the whole virtual ‘skinning’ of your avatar. And that’s what you’ll also have on web shops 10 years ahead, digital clothing, that’s what we pitched to them basically.” The response? “It’s too risky,” Grubak explained.

When the agency pitched the idea, it didn’t go well. Carlings CEO Ronny Mikalsen called it “the strangest meeting of my life.” “I didn’t understand what they were talking about, making a digital collection … I was like, this can’t be serious, this is nothing that the consumers would be interested in,” he told CNBC.

But after Virtue held a second meeting with Carlings, something hit a nerve. “I spoke to my daughter, she’s 12 years-old and I told her about this, and she made me realize that it’s not that strange actually, it’s not that far fetched or science fiction. People are buying skins, people are using filters on social media and so on,” Mikalsen said.

Carlings’ digital clothes start at 10 euros ($9.06) for a headband and go up to 30 euros for a long oversized shiny nylon puffer jacket printed with computer code lettering. Customers upload a photo and a designer will “dress” them virtually. Once they get their outfit, they can “brag to your friends,” on social media, per Carlings suggestion. The clothes are never made in the real world and have been produced purely for the digital realm.

These virtual outfits look certain to up wearers’ credibility on Instagram, Mikalsen added. “We created a new way of thinking for the fashion industry, for the consumers, we know we have a lot of influencers out there creating this fake reality that is not available for the everyday boy or girl,” he said. The Carlings collection is genderless and available in any size, and also taps into the trend for reducing environmental impact.
Marketing solution

Yuval Ben-Itzhak, CEO of social media marketing platform Socialbakers, told CNBC that digital clothing is in its infancy for creators on the likes of Instagram and Snapchat. For marketers, digital clothes and goods may be an efficient way to create posts. “In marketing, one of the biggest and most complicated issues is how can I create content at scale. How can I keep innovating and how can I keep the digital dialogue with my audience and know my audience,” he told CNBC by phone.

Digital apparel is no emperor’s new clothes fad — in the gaming industry, “skins” and “cosmetics” are a staple item and it is estimated that in-game transactions, including buying clothes, are estimated to have made “Fortnite” parent company Epic Games $1 billion, according to figures from Nielsen company SuperData.

For Ben-Itzhak, virtual apparel will need to find a real purpose within social media to be successful. “It will require some gamification … you are seeing many games selling those virtual items and it’s a huge business … Think about dolls or think about cars and all those collections, probably when we were kids, we were collecting, we can collect that as digital items, it doesn’t need to be a physical item,” he said.

Some companies are pushing beyond virtual clothing and are creating digital characters sporting fashionable brands. On Tuesday, hip toy brand Superplastic launched Instagram pages for its two “synthetic celebrities,” animated characters Janky and Guggimon, who are set to earn money like real-life influencers, Superplastic claimed.
Worlds collide

Janky, a fashion fan, was soon posting about Guggimon’s sneakers, threatening to “burn his @balenciaga kicks” if Guggimon didn’t get out of his way, while Guggimon was pictured sitting on a “Louis Vuitton” case. “Living for this custom @lousivuitton titane trunk,” he posted. While Superplastic is not in discussions with either label about a collaboration, founder Paul Budnitz told CNBC that sponsorships are part of its business plan.

Ben-Itzhak told CNBC CGI characters and animation is an important step in social media content. “It all started with simple text. It’s moved to static images then to videos. Now, we’re looking at short videos like (Instagram) Stories and (now) these characters … On social media, innovation is at its highest velocity if you compare it to (innovation by) traditional publishers,” he said.

Having boasting rights seems to be the main motivation behind buying virtual goods. Seventy-nine percent of paying gamers in the U.S. spent money on in-game items in 2018, according to Newzoo. These include virtual clothes, where within games such as “Fortnite,” certain outfits are seen as status symbols. Kids even use the term “default” as a real-life putdown, referring to the generic clothes the video game assigns characters.

Epic Games, maker of “Fortnite,” makes money by offering “skins” to players, with a “Top Gun” skin costing $5, for example. But buying these items doesn’t get people to a new level or give them more lives in the game; gamers are looking for attention and ways to bond with friends also competing. The real and virtual worlds are benefiting each other: Mobile game “The Sims” partnered with fashion retailer Asos last year to run a virtual fashion show within the game itself, and people could then buy real versions of the clothes on Asos.

It might be a while until digital items take off on social media, but they are making headlines. A digital dress was sold for $9,500 at a blockchain event called the Ethereal Summit in New York in May. Named “iridescence,” it was created by digital agency The Fabricant, designer Johanna Jaskowska and blockchain company Dapper Labs, and Jaskowska was seen “modelling” the item on Instagram before it was sold.

But, if you’re looking for a coveted Carlings digital puffa jacket or oversized silver metallic track pants, you’re out of luck. The collection has “sold out,” although a second drop is coming soon.

South Africans are upbeat about new technologies, but worried about jobs

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Article by 

 

Powerful new technologies are emerging that will continue to affect individuals in multiple ways. This has led to references to a Fourth Industrial Revolution – a new era involving the application of digitisation and automation to different areas of society and everyday life. This revolution is one that presents distinct opportunity. But it also presents major risk and human costs.

These changes have become a growing point of discussion in most countries in the world. In South Africa the debate has drawn in policymakers, business and unions. But the voices of average South Africans have been missing from the debate. A survey completed earlier this year by the Human Sciences Research Council contributes to addressing this gap.

Consisting of 2,736 respondents older than 15, the results suggest the public recognises the promise – and the pitfalls – of this technological turn. Most people have a moderately positive view of digital technologies, but they are sceptical about the impact it will have on the labour market.

Those who took part in the survey appeared cautiously optimistic when asked about the potential impact of recent computer and internet technologies on the economy, society, and personal quality of life.

Around half – 48% – 52% – believed that the advances would be beneficial economically, societally and personally. A fifth expressed reservations, with the employed specifically concerned about job losses. They tended to acknowledge that automation would have a bearing on the workplace. A sizeable majority were concerned that it will affect them.

Public opinion remains critical from a policy and accountability perspective, as the priorities deemed important by citizens should be used to inform government’s agenda. Concerns about possible job loss due to technological change need to be considered in developing social protection and other measures to minimise the negative effects. Ignoring peoples’ voices could have far-reaching political consequences.

The threat

Three-quarters (73%) of South Africans believed that in the next decade machines or computer programmes would assume many of the jobs presently done by humans. In addition, six in 10 workers (62%) were very or quite worried that such automation will threaten their job security.

Compared to the UK, South Africans exhibited almost equivalent views on the likelihood of automation impacting on the labour market (73% versus 75%). But local workers demonstrated vastly higher levels of worry about the personal job impact of automation than is evident among British workers (62% vs. 10%).

To gauge how culturally accepting South Africans are of technological change, respondents were asked to rate how comfortable they felt with four situations involving the use of robots:

(i) a medical operation performed by a robot;
(ii) factories where workers are replaced by robots;
(iii) receiving goods delivered by drone or robot; and
(iv) being driven in a driverless car or taxi in traffic.

They provided scores using a scale from 1 to 10, where 1 means ‘totally uncomfortable’ and 10 ‘totally comfortable’ (Fig. 2).

On average, respondents weren’t particularly accepting of any of these four scenarios. Only 14-18% expressed comfort, 19-23% would be moderately comfortable, while 59-67% were uncomfortable with such propositions.

Government’s capability

We also set out to establish how confident people were in the government’s ability to intervene successfully to minimise adverse affects on the labour market.

Little more than a third (37%) were very or fairly confident that government could effectively put in place strategies to ensure that new technologies do not result in job losses, while 57% were doubtful (Fig 3). Poorer South Africans expressed greater scepticism than better off South Africans. While the survey results didn’t address the role to be played by other role-players (especially market actors), it nonetheless provided a sense of views on state policy to address any adverse labour impact that automation might produce.

What next?

The analysis suggests that, generally, there’s more optimism than circumspection about the impact of the newest digital technologies on society and peoples’ general well being. But, there’s recognition that automation will affect the labour market and there are deep concerns exist over the threat this poses to jobs. There is also broad discomfort with robots performing a range of tasks. This points to quite low levels of cultural acceptance of the application of robots.

If technological change creates further labour market inequality and sustained reductions in human employment, then carefully planned social and labour market policies will be required to address low pay, precarious employment, and expanded, long-term unemployment.

At this stage, the public is fairly pessimistic about the ability of government to minimise the human costs of the fourth industrial revolution. Ongoing dialogue between various sectors, such as at the recent inaugural Fourth Industrial Revolution SA Digital Economy Summit in South Africa, are needed to promote new insights and develop responses. There should also be campaigns to inform the public about technological change and the planned response for the country.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Twyg Awards to Spotlight Conscious Southern African Fashion Brands

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Nominations are open for the inaugural Twyg Sustainable Fashion Awards, which recognise Southern African designers who have implemented a sustainable design approach and fostered ethical practices in the fashion industry.

Twyg is a not-for-profit organisation that aims to encourage sustainable living through a wide range of activities including campaigns, content creation and events.

Says Jackie May, founder of Twyg: “Our work supports the United Nations’ Sustainable Development Goal 12: sustainable consumption and production, especially in the fashion industry. By acknowledging change-makers in fashion, Twyg highlights what the industry is capable of achieving, and shows its support of conscious fashion in a very complex industry.”

“Sustainability is complex and achieving 100% sustainability is an on-going and shared commitment,” says May. “The Twyg awards aim to create awareness around this and showcase the impact these designers have had in the industry.”

Selection process

The deadline for submission of nominations is Sunday, 18 August 2019 and the winners will be announced at an awards evening in Cape Town on 19 September 2019. Qualifying work should have been made by June 2019.

A panel consisting of Twyg partners at Fashion Revolution, SACTWU and SA Fashion Week will choose finalists. An independent jury will select the winners. Submissions will be judged according to specific criteria for each category. With the exception of the student award, all winners must have been in business for at least one year and would be able to demonstrate ethical labour practices and transparency in practices and sourcing.

Award categories

The Twyg Fashion Awards 2019 categories are:

• Innovative Design and Materials

This award seeks to recognise a designer who has made beautiful clothes using techniques that minimise textile waste through innovative pattern cutting, the use of pre- and post-consumer fabric waste, and reconstruction techniques. The award also seeks to recognise a commitment to using sustainable fabrics in a collection, and all submissions must demonstrate the extent to which materials have been sustainably sourced.

• Trans-seasonal Fashion Award

This award recognises a collection, brand or designer who promotes trans-seasonal and versatile style. It rewards quality garments whose design aspires to be timeless and which are made to last. This category also recognises brands that remain invested in garments after their sale, for example through the provision of lifetime guarantees or repair services.

• Sustainable Accessory Award

This award recognises an accessory or accessory brand, which implements ethical labour practices, limits toxic chemicals and uses sustainable materials to create a quality item and considers end-of-life. Ideally it should be made of compostable materials, but, if not, it should use recyclable or recycled materials.

• Sustainable Fashion Influencer

Recognises a personality who has actively promoted sustainable fashion over the last 12 months and sparked relevant conversations. On social media and other platforms, the influencer has explained sustainable issues factually and has cautioned against unsustainable fashion habits. The influencer supports conscious brands while promoting the Rs (reduce, reuse, recycle).

• Sustainable Retail Award

This award will recognise a retailer or a retailing initiative that enhances sustainability, including pre-loved/gently worn, “swop shops”, garment rental and similar activities. The award is also open to retailers who support local producers, and sustainable design and manufacturing.

• Student Award

This award will go to a student who has produced a garment or collection that addresses the challenges of sustainability in fashion in the most innovative, beautiful and practical way.

• Nicholas Coutts Award

This award recognises a designer who uses artisanal craft techniques such as weaving, embroidering or botanical dying to make fashion that foregrounds, celebrates and values the skills of the person who makes the garment.

• Change-maker Award

This award recognises a designer whose career has embraced sustainable and circular design practices. The recipient’s collections will have helped raise awareness of environmental and social issues. Criteria include choice of fabric, ethical labour practices, the extent of upcycling, the reduction of waste, and the use of non-toxic dyes. This designer demonstrates a commitment to promoting slow consumer fashion habits.

For more information and to submit nominations, visit Twyg.co.za.

The Twyg Sustainable Fashion Awards are sponsored by PET plastic recycling company Petco.

 

Article on BizCommunity

South Africa’s Woolworths Shares Rise on Sales Turnaround

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South African department chain Woolworths said on Thursday it had turned around its fashion, beauty and home business after fixing poor product choices in clothing, which had weighed on its sales the previous year.

Woolworths shares jumped more than 8% to a 6-1/2-month high after it said sales in its fashion, beauty and home business in the 52-weeks to the end of June rose 1.5% “as a result of a focus on core ranges and basics, backed by improved availability”.

Basic ranges at Woolworth include classic knitwear which is priced from 250 rand ($17.95) to 1,299 rand and jeans selling for between 450 rand and 699 rand.
Woolworths South Africa, which also trades in 11 countries in sub-Saharan Africa, accounts for 71.1% of operating profit.

Sales at Woolworths, which also has a presence in Australia and New Zealand, fell by 1.5% in previous year in the fashion, beauty and home business as its womenswear modern range failed to resonate with its core customers.

In February, Chief Executive Ian Moir said Woolworths would focus on getting back to “beautiful basic” items in South Africa to appeal to its core customers, who are not looking for items which are either too fashionable or too youthful.

Woolworths said group sales for the comparable 52-weeks rose 3.9% and by 5.9% in the 53-weeks ended June, while food sales grew 7.7%, driven by further investment in price, innovation and convenience, resulting in continued volume growth, it added.

The year ended June 2019 had 53 trading weeks compared to 52 trading weeks for the year ended 24 June 2018.

In Australia, where retail trading conditions remain challenging, David Jones was also significantly impacted by sales disruption from the Elizabeth Street store refurbishment, with online sales jumping 46.8%, Woolworths said.

The group’s year-end results are due on Aug. 29.

 

Article found on Fashion Week website

Levi Strauss Announces 2025 Sustainability Pledge

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Article by Robyn Turk

 

Levi Strauss is getting serious about sustainability. The American heritage denim brand has partnered with International Finance Corporation (IFC) on a 2.3 million dollar cooperation agreement to meet corporate objectives regarding reducing greenhouse gas emissions and water usage.

According to a company statement, Levi Strauss has set science-based targets for itself. The company intends to achieve a 90 percent reduction in greenhouse gas emissions and use 100 percent renewable energy throughout its facilities, as well as reducing greenhouse gas emissions by 40 percent throughout its global supply chain by 2025.

“At Levi Strauss & Co., we’re not just about making great clothes — we’re about making great clothes in a sustainable way,” the statement reads. “By doing what’s right for the planet, we create a business that’s as durable as the products we make.”

IFC will help Levi Strauss to meet its goals through working with 42 suppliers and mills, implementing renewable energy and water-reducing tactics.

“We are thrilled to be partnering with the IFC to help achieve our science-based climate targets and benefit our vendors and their communities,” Levi’s executive vice president, global product and supply chain, Liz O’Neill, said. “We hope this program can also benefit others in the apparel industry and help reduce our collective footprint.”

 

Picture:Levi’s Off the Cuff blog

 

Topshop Owner Arcadia to Shutter US Stores Amid Insolvency Woes

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Article by Daphne Howland

Dive Brief:

  • Arcadia Group, which in the U.S. runs its Topshop and Topman brands and in the U.K. and Ireland also runs Dorothy Perkins and Miss Selfridge, among others, could shutter all 22 of its U.S. stores, according to multiple media reports and documents filed Wednesday with the United States Bankruptcy Court Southern District Of New York.
  • The London-based company will also close at least 23 stores at home, although it will likely be at least double that, according to a report from U.K. newspaper The Guardian. Arcadia Group didn’t immediately respond to request for comment
  • The conglomerate doesn’t usually reveal financial details, but in documents sent to its landlords in recent days Arcadia said its total comp sales fell 9% in its last fiscal year, and that even after cutting 70 million pounds in expenses last year it can’t afford its 170 million-pound annual rent bill, according to the Guardian’s account.

Dive Insight:

Apparel retail is tough on a good day, but adding financial improprieties and sexual harassment claims spells doom. The conglomerate’s ability to withstand everyday retail challenges plus uncertainties introduced by the so-called “Brexit” plan for the U.K. to leave the European Union has been undermined by its billionaire chairman, Sir Philip Green, who has piled it with debt and whose personal behavior has lost it key partnerships.

That’s the situation that Arcadia and its brands find themselves in, as the conglomerate’s operations unravel. Some problems, like financial issues related to contributions to the company’s pension fund and insufficient investment into its operations, go back years, while others are more recent. Last year, for example, after a member of Parliament surfaced allegations that Green had committed sexual harassment and other abuses, covering them up through non-disclosure agreements, Arcadia brands were dropped by partners that once served as a sign of their success. Beyonce, for example, severed the 2014 tie-up she had forged between her Ivy Park brand and Topshop.

The pension fund deficit threatens to endanger regulators’ ability to approve the company’s U.K. restructuring plans, according to a Thursday letter to Green from the chairman of the House of Commons Work and Pensions Committee. Those plans, known in the U.K. as a “company voluntary arrangement (CVA)” wouldn’t be sufficient to save the company’s brands in any case, according to data and analytics company GlobalData.

“The proposed closure of only 23 UK stores (4% of its current UK estate) and rent reductions at 194 stores, as part of its CVA, will not be enough to save Arcadia in a world where rising online sales continue to threaten the high street,” GlobalData Senior Retail Analyst Chloe Collins said in comments emailed to Retail Dive. “The closures would leave a large portfolio of 543 stores remaining, and with only £50m to be invested as part of the proposal, any attempt to pay for an increase in store standards would be spread too thinly to make up for years of underinvestment.”

A recovery seems distant. “For Arcadia to survive, Green must revamp its brands; ensuring they have a clear target audience, a point of difference from competitors, and enhanced digital platforms,” Collins said.

But that’s a tall order. Much of the portfolio has “lost relevance in today’s retail landscape due to their uninspiring fashion ranges and weak multichannel offer,” she also said. “Even Topshop, which used to be Arcadia’s star player, has lost appeal among fashion shoppers thanks to tough competition from the likes of Zara, Primark and H&M, as well as online pureplays such as ASOS, PrettyLittleThing and boohoo.com.”

 

Article by Daphne Howland