Heading into H2 2023 ⇒ As we head into the second half of 2023, brands, retailers, suppliers - and analysts - have mixed views on where they see the market going. The overall sentiment is that while the second half of the year is not likely to break any records, it is also unlikely to face the pessimistic outlooks that have been promoted widely throughout the industry. Despite persistent inflation, retail sales remain strong - especially when you consider that they are up against revenue spikes from 2022. Profits are improving as logistics costs ease up and materials prices have also weakened from a year ago. ⇒ “Every quarter that's gone by, it keeps on reminding us that the consumer has been more resilient than the doom and gloom (commentary)."The doom and gloom has been around now for almost 12 months and the consumer continues to outperform the doom and gloom."Primark's overall like-for-like sales rose 7% in its fiscal third quarter. That trend had continued through June.Eoin Tonge, Finance Director, Primark. Despite persistent inflation, retail sales remain strong - especially when you consider that they are up against revenue spikes from 2022. Profits are improving as logistics costs ease up and materials prices have also weakened from a year ago. ⇒ "People are going out for dinner and to parties and it is a return of previous trends."Thierry Andretta, CEO, Mulberry (UK) ‘Micro bags’, including smaller versions of classic products such as Alexa and Bayswater bags, proved especially popular among Asian consumers, retailing for hundreds of pounds. ⇒ "When we were revising the strategy for the brand around three years ago, one of the pieces of the strategy was to grow internationally. And we do see Asia and particularly India as one of the key components of that. It may have taken a while but it is certainly the right time to enter India." She added that India has a potential to become one of the largest market outside US for Dockers. Natalie MacLennan, CEO, Dockers⇒ "Overall, we see our business in China going in the right direction even though we're not at the level we want to be."We do see that our focus on the customer offering and also making the customer experience really locally relevant is paying off."Helena Helmersson, CEO, H&M ⇒ "The sales decline at our White House Black Market brand was a result of having “quickly sold through fashion inventories due to strong customer demand.Inventory should be more in line with demand by early fall, which should drive a "trend change" in the back half of the year.”Molly Langenstein, CEO, Chico’s FAS ⇒ “Our go-to-market strategy is about building community relationships in connection locally, either through ambassadors - and with our guests. And that strategy is also working incredibly well in China. We've done a number of activations both at the local level, store level, as well as larger events.”Calvin McDonald, CEO, Lululemon⇒ “We think about our multi-brand partners in 3 complementary groups that each serve distinct needs. Over the past 5 years, we've created greater focus and differentiation working with fewer large multi-brand partners. These partners have the scale to invest in retail experiences and connected digital membership to drive long-term growth. We've also sharpened our commitment to neighborhood authenticators to drive energy and validate our brand. We also partner with accounts that help us provide access to consumers across different segments and price points.”After shifting its focus to DTC, and pulling out of several key wholesale relationships, Nike announced that it is renewing some of those retail partnerships that it had abandoned.John J. Donahoe, Pres & CEO, Nike
