Finding new ways to court customers
Good afternoon MR readers, hope your weekends are restful & restorative! We’re thinking a lot lately about how brands are trying to strategize around macroeconomic challenges, and it’s a problem faced by companies of all shapes and sizes. Here’s a rundown of what’s happening with Neiman Marcus as it settles into Saks Global’s portfolio, plus a look at how Rothy’s store fleet is bolstering its DTC business in a category where fit and feel go a long way. We also checked in on how small local businesses are feeling about the tariff conversation – spoiler alert, they might be the ones who end up hurting the most.?
What’s next for Neiman Macus under Saks Global?
Department stores across the country have faced challenges holding onto their customer base as luxury competition sprouts up and younger shoppers shift their spending to online. But the legacy brands in the category are still attempting turnaround after turnaround. After about two months of ownership under Saks Global following a $2.7 billion purchase, Neiman Marcus is shutting down a flagship store and headquarters in Dallas while putting a new store in a more suburban and affluent part of the metroplex.?
Rothy’s store fleet helped catapult the brand to a record $211M in sales
For a brand that grew up in the DTC heyday, footwear brand Rothy’s is seeing some growth fueled by its store fleet. The company doubled its footprint with nine new stores last year, and reported during its most recent earnings call that its seeing? same-store sales growth of 20%. While most sales are still coming from online shoppers, executive editor Anna Hensel dove into how Rothy’s is using larger stores in select areas and strong sustainability messaging to draw attention from IRL customers.?
Mom-and-pop shops feeling the squeeze of Trump’s tariff wars
Reporter Allison Smith found that small brick and mortar retailers are already worried that tariffs are going to force them to raise costs or take hits to already-thin margins. Jessica Bettencourt, owner of the general store Klem’s in rural Massachusetts, tells Smith she’s already se
The National Retail Federation has estimated President Donald Trump’s tariff plans for 10% tariff on imported goods from China and 25% duties on all steel and aluminum imports, plus impending 25% tariffs on imported Mexican and Canadian goods, could potentially curb consumer spending by as much as $78 billion a year,?
Also, if you’re looking for more insights from movers and shakers in the e-commerce industry, check out our recaps from the eTail West conference held in Palm Desert, California this week! Myself and EIC Jill Manoff were on the ground moderating on-stage conversations, conducting interviews & having a blast meeting some of y’all in person. Thanks for your support of Modern Retail, and see you at the next one!?
-Melissa?