U.S. consumer sentiment has been essentially unchanged in April, per the University of Michigan. Consumer spending has remained flat, according to the Federal Reserve Bank.
“While consumers have noted the easing of inflation among durable goods and cars, they still expect high inflation to persist, at least in the short run,” said Joanne Hsu, Director, Surveys of Consumers, Univ. of Michigan.
FINANCE
Quiz (UK) reported that results for the full-year to the end of March are expected to show a 17% rise in revenues to £91.7 million ($114 million) and a 150% increase in profit to £2 million ($2.5 million), year-on-year. The company said that February and March sales were lower than a year ago as consumers wrestled with inflation.
Ermenegildo Zegna (Italy) reported Q1 revenue rose 13.4% year-on-year to €428.3 million ($475 million).
Pepco Group (UK) reported sales grew 22.8% to €2.39billion ($2.41 billion) for the six months ending March. Revenue from its Poundland stores grew 36.9%.
Mulberry Group (UK) said sales improved in the second half of its financial year (ended April 1), in part driven by the reopening of China, where demand for luxury brands continues to surge. Margins benefited from a focus on “strategic focus on full price sales.” The company will report full year results on June 23.
David’s Bridal (USA) has filed for Chapter 11 bankruptcy protection, where it will likely off load some of its debt and possibly sell all or some of its assets. In 2018, the retailer filed for bankruptcy and was able to remove about $450 million of its debt.
A round up of this month’s key movements in brand and retail finance. Read more
PODCAST
New Influences Shaping The Choices Consumers Make
A big part of winning at retail is understanding what motivates consumers to buy.
It’s a topic that has gotten increasingly complex now that retail spans so many different channels.
One man has made it his life’s work to go deep and get inside the mind of the consumer.
In this podcast Paco Underhill, founder and former CEO of Envirosell, a behavioural research and consulting firm, shares his take on changes in consumers’ fashion choices.
You’ll Learn
- How fashion has evolved into what he refers to ‘uniforms’ and ‘costumes’
- The new influences on women’s choice of career wear.
- Shifts in how consumers shop – and some best practices in how retailers can respond.
RETAIL
Apple (USA) has opened its first store in India, in Mumbai, followed by a second store in New Delhi a few days later. Last year Apple shifted some of its iPhone production to India from China. Move will facilitate its expansion into India’s consumer market.
Barnes and Noble (USA ) plans to open 30 new stores this year. This follows the opening of 17 stores last year.
Gap (USA ) is teaming up with Mattel (USA) on a series of apparel collaborations.
The first Gap x Mattel collab will be the Gap x Barbie collection, and will include pet accessories as well as girls apparel. It launches on May 23, just ahead of the new “Barbie” movie.
MARKETS
The minutes released this week from the European Central Bank‘s March meeting in March suggest there is a growing divide within the ECB. A 5% rate hike is still on the table next month but the split among members argues in favour of a 2.5% compromise
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