Weekly Wrap-up: Lee Introduces Unisex Line, Barbie Fever Sweeps Wrangler
Let's wrap up the retail news for ya: It's been another wild week in the retail world, so sit back and let's catch up on what you might have missed and what we're still pondering about.
Adidas CEO, Bjørn Gulden, issued an apology to the CEO of the Anti-Defamation League, Jonathan Greenblatt, following his controversial remarks regarding Ye (Kanye West). Other matters that caught our attention involve Lee launching a unisex collection with streetwear brand Roaringwild, A.K.A. Brands initiating a reverse stock split, and Wrangler teaming up with Barbie to release a western-inspired, mix-and-match clothing line.
What's fresh
Apology from Adidas CEO to Anti-Defamation League CEO
Adidas CEO Bjørn Gulden offered an apology to the head of the Anti-Defamation League, Jonathan Greenblatt, for his inappropriate comments about Ye (Kanye West). The CEO came under fire last week for his remarks on a podcast concerning the end of the Yeezy partnership. When asked about the apology, Adidas pointed Retail Dive to a post by Greenblatt on X (Twitter), and provided their own statement.
"Our decision to end our partnership with Ye because of his unacceptable comments and behavior was the right one," the company stated in an email. "Our stance remains firm: hate has no place in sports or society, and we continue to commit ourselves to fighting it."
Lee ventures into unisex apparel with Roaringwild
Lee debuted its first unisex apparel collaboration with streetwear brand Roaringwild.
"Lee has been in Asian markets for nearly three decades and dominates the denim market in China," Brigid Stevens, Lee's global vice president of marketing, said in a statement. "Roaringwild is one of the most well-known streetwear brands there; we're proud to be their first denim collaboration and showcase this unique vision to consumers worldwide."
The capsule collection includes graphic T-shirts, denim jackets, and jeans in oversize fits inspired by the '80s. Prices range from $80 to $230, and the sizes are available from XS to XL.
A.K.A. Brands initiates a one-for-12 reverse stock split
A.K.A. Brands, which owns Princess Polly and Culture Kings, initiated a one-for-12 reverse stock split earlier this week, following board approval.
The reverse stock split aims to help A.K.A. regain compliance with the New York Stock Exchange's minimum bid price requirement. The company received a delisting warning from the NYSE in April as a result of falling out of compliance with the exchange's $1 per share requirement for 30 consecutive days. A.K.A. had six months to remedy the issue.
Wrangler partners with Barbie to create a western-inspired collection
Wrangler teamed up with Mattel's Barbie to release a 40-piece collection, featuring western-inspired, mix-and-match pieces for both women and girls. The items include jeans, shirts, dresses, T-shirts, and jackets, which range from $24 to $140. Wrangler x Barbie is available on Wrangler.com and at key retailers, including Dillard's, Buckle, Boot Barn, and Cavender's.
Spirit Halloween and Butterfinger join forces for Halloween
Spirit Halloween announced a collaboration with Butterfinger, offering customers a chance to win a case of full-size candy bars, a mystery pack of Spirit Halloween decor, and a store gift card for a total value of $1,000.
"We live and breathe Halloween 365 days a year, and we know candy plays a significant role in celebrations for many during the Halloween season," Kym Sarkos, executive vice president of Spirit Halloween, said in a statement. "[W]e are excited to team up with Butterfinger, one of our favorite candy bars, to make the visit even sweeter this year."
Retail Hangouts
Wrangler and Barbie make western pink
The Barbie craze isn't slowing down yet. Wrangler launched a collection in collaboration with Mattel's Barbie, featuring western-inspired, mix-and-match pieces for both women and girls across jeans, shirts, dresses, T-shirts, and jackets.
"Barbie has become a permanent symbol of empowerment, and through this collection, we encourage individuals from all walks of life to embrace their unique identities and make a statement that resonates throughout time," Wrangler Senior Vice President Jenni Broyles said in a statement.
Items in the collection range from $24 to $140. Wrangler x Barbie is available on Wrangler.com and at key retailers, including Dillard's, Buckle, Boot Barn, and Cavender's.
Spirit Halloween teams up with Butterfinger
Spirit Halloween brought Butterfinger on board through a collaboration. Fans can enter a contest to win a case of full-size candy bars, a mystery pack of Spirit Halloween decor, and a store gift card for a total value of $1,000.
"We live and breathe Halloween 365 days a year, and we know candy plays a significant role in celebrations for many during the Halloween season," Kym Sarkos, executive vice president of Spirit Halloween, said in a statement. "[W]e are excited to team up with Butterfinger, one of our favorite candy bars, to make the visit even sweeter this year."
Worth Checking Out
Target to close 9 stores due to ongoing theft issues
With 9 stores set to close next month, Target claimed that despite various initiatives and investments, they have been unable to handle theft and organized retail crime at these locations. These issues, the company said, present a threat to the safety of employees and customers and the overall business performance.
One store will close in New York City, whereas two will close in the Seattle area, and three stores each will close in the San Francisco and Portland, Oregon regions. Target previously stated that shrink could reduce profits this year by more than $500 million.
17 states join the Federal Trade Commission in suing Amazon
17 states joined the Federal Trade Commission in filing suit against Amazon. The states and the FTC accuse Amazon of practicing punitive, coercive, and anticompetitive tactics that hurt consumers and the retailer's marketplace sellers.
Amazon reportedly replaced organic search results with paid advertisements and prioritized its own products over superior ones. In response, Amazon stated that its practices fueled competition within the retail industry and led to increased selection, lower prices, and faster delivery for many businesses selling in Amazon's store.
Hot Topics
Lululemon and Peloton join forces to create the ultimate fitness powerhouse
Athletic brands Lululemon and Peloton have partnered to enhance their respective offerings and broaden their reach.
As part of a five-year global strategic partnership announced this week, Lululemon will be the primary athletic apparel partner for Peloton while Peloton will become Lululemon's exclusive provider for digital fitness content.
The agreement means that Lululemon will cease sales of Mirror workout devices by year-end, as well as terminate its digital app-only membership tier in November. In addition, Lululemon-branded apparel will be available for purchase at Peloton retail stores and on Peloton's website in the U.S., as well as select other countries, starting in October.
The partnership marks a transition from competition to collaboration for the two brands, as Peloton settles lawsuits with Lululemon over allegations relating to Peloton's use of some of Lululemon's apparel designs in its private apparel collection. The settlement required Peloton to eliminate certain clothing designs.
For Lululemon, the Mirror deal, though successful in its core business, proved to be a problem, with hardware sales underperforming in its fourth-quarter results from March. Overall, the partnership is expected to be advantageous to both companies, as they shift away from competing with one another and embrace a more collaborative approach.
Sources:1. Retail Dive (articles: "Lululemon announces Peloton digital content deal as it exits Mirror for $500 million," "Creating an online retail giant: How Peloton prevailed and why former competitor Lululemon cozied up with it instead")2. Insider (article: "Lululemon discontinues sales of Mirror workout devices amid reported underperformance")3. Fashion United (article: "Lululemon to stop selling Mirror workout devices and digital app-only membership")4. Footwear News (article: "Lululemon CEO Calvin McDonald seeks $19.9 billion valuation for activewear giant in possible IPO")
- Adidas, under fire for controversial comments by CEO Bjørn Gulden about Ye (Kanye West), offered an apology to the Anti-Defamation League's CEO, Jonathan Greenblatt.
- Lee launched a unisex apparel collection with streetwear brand Roaringwild, marking the brand's first foray into unisex collaborations.
- A.K.A. Brands, which owns Princess Polly and Culture Kings, initiated a one-for-12 reverse stock split to help regain compliance with the New York Stock Exchange's minimum bid price requirement.
- Wrangler teamed up with Mattel's Barbie to release a 40-piece western-inspired, mix-and-match clothing collection for both women and girls.
- Spirit Halloween announced a collaboration with Butterfinger, offering customers a chance to win a case of full-size candy bars, decor, and store gift cards worth $1,000.
- Target decided to close 9 stores next month due to ongoing theft issues, which threaten employee and customer safety and business performance.
- 17 states joined the Federal Trade Commission in filing suit against Amazon, accusing the company of practicing punitive, coercive, and anticompetitive tactics that harm consumers and marketplace sellers.
- Lululemon and Peloton formed a five-year global strategic partnership, with Lululemon becoming Peloton's primary athletic apparel partner and Peloton becoming Lululemon's exclusive digital fitness content provider.
- As part of the Lululemon-Peloton partnership, Lululemon will cease sales of Mirror workout devices by year-end and terminate its digital app-only membership tier in November.
- Lululemon-branded apparel will be available for purchase at Peloton retail stores and on Peloton's website starting in October.
- Legal issues between Lululemon and Peloton related to Peloton's use of some of Lululemon's apparel designs in its private apparel collection have been settled, with Peloton eliminating certain clothing designs.
- The Lululemon-Peloton partnership is expected to be beneficial for both companies as they transition from competition to collaboration, aiming to broaden their reach and enhance their offerings.
