We are seeing early signs that consumers could push back against price hikes – especially for non-essentials. Offering real value is going to become a lot more important.
MARKETS
Economists have warned that UK inflation could peak at more than 8% after the surge in commodities prices caused by Russia’s invasion of Ukraine.
U.S. adults spent more on staple categories and less on discretionary purchases in January as inflation concerns influenced buying patterns.
RETAIL
Allbirds plans to “deliberate pricing actions” in 2022 to fight inflation, said Joey Zwillinger, CEO, on an earnings call.
Brands including Tommy Hilfiger, Diesel, Lacoste and others are raising retail prices by around 20% for the autumn season.
Giordano (Hong Kong) has opened a new Dubai flagship featuring the brand’s new cutting-edge, environmentally and customer friendly design. READ MORE
Nike (USA) products account for about 75% of Foot Locker’s (USA) offering. Now Nike is looking to reduce its presence in third-party retail to focus on direct to consumer selling.
PODCAST
Is Your Corporate Culture Sabotaging Your Market Strategy?
It could be, says Hilton Barbour, a marketing and communications strategist, pointing to the adage that ‘culture eats strategy for lunch!’
In this podcast episode you’ll learn:
- How companies end up losing their corporate culture – and how they can build it back.
- Why getting internal communication right can be a game-changer.
- How to build an actionable strategy – and get your entire team to lean into it.
FINANCE
Macy’s (USA) reported Q4 net sales rose 27.8% year-on-year to $8.7 billion, while net income reached $742 million, from $160 million a year ago.
- Full year net sales rose 41% year-on-year to 24.5 billion, while net income was $1.4 billion, compared with a $3.9 billion loss in 2020.
TJX Cos (USA) reported Q4 net income reached $940.2 million (from $325 million a year ago), while sales rose 27% to $13.8 billion.
- Full year net sales were $48.5 billion, an increase of 51%.
- TJX ended the fiscal year with $6.2 billion of cash.
- The company operates 4,689 stores in nine countries.
Allbirds (USA) reported a loss of $10.7 million for the quarter ended Dec 31, 2021, up from a loss of $9.4 million a year ago.
- Revenue hit a record $97.2 million, up 23% year-on-year or up 43% over 2019.
- The retailer plans to open 16 to 17 stores this year, as well as starting selling through select third-party retailers.
- 2022 Outlook: revenue between $355 million and $365 million, loss of $9 million – $13 million.
Alibaba (China) reported Q3 revenue rose 10% year-on-year to 242.58 billion ($38.06 billion). This was the company’s slowest growth as it faces growing competition in China.
- International revenue grew 18% year-on-year to 16.45 billion yuan ($2.6 billion) in Q3.
- Annual active consumers reached 1.28 billion globally.
Frasers Group (UK) has bought Studio Retail (UK) out of administration for £26.8 million.
Shein (China) has put plans to list in New York on hold for the second time, citing recent market volatility.
