Morning Brew - ☕ Bouncing back

Can holiday shopping help Adidas rebound?
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November 29, 2023

Retail Brew

American Express Business

It’s Wednesday. Every decision you make in the retail world is critical to success, especially during the holiday craziness. Understand the limitations of data in decision-making, both for your own decisions and when evaluating other people’s choices, in our Making Decisions with Data course, kicking off Dec. 4. Learn to make confident decisions backed by numbers. Register now.

In today’s edition:

—Katishi Maake, Andrew Adam Newman, Erin Cabrey

OPERATIONS

Three’s a crowd

Adidas sneakers Francis Scialabba

More than a year after Adidas’s very public breakup with Ye last October, the sportswear giant is attempting to position itself for a rebound during the holiday shopping season.

CEO Bjørn Gulden, who took over at the start of the year, said earlier this month that the Samba—in addition to other Terrace shoes including Gazelle and Spezial—has driven sales.

  • Additionally, rather than destroy or write off its excess Yeezys, Adidas has been selling them off, which has also helped the company’s outlook by shrinking its operating costs.
  • As a result, the company adjusted its guidance to project a loss of $106 million—a high figure but much lower than the previously expected $493 million loss reported earlier this year due to the Yeezy inventory problem.
  • The company’s Samba shoe is one of the most in-demand products on the market and was recently named “Shoe of the Year” for the FN Achievement Awards.

“Seasonal items like fleece are always a hit during the holidays,” Andre Graham, VP and head of stores at Adidas, told Retail Brew. “We also like to celebrate product across all of our key categories, like Samba in originals and Ultraboost in running as just a couple examples.”

Come on, come all: In-store shopping is expected to take more precedence during the holidays compared to last year, according to Bankrate survey data.

  • Gulden said that he sees promise in Adidas’s physical spaces, particularly in New York, as well as its DTC business as in-demand, new inventory has come in.

Keep reading here.—KM

     

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MARKETING

Scrappy campers

A group of children and adults gathers around a fire in a barrel in an Eastern Mountain Sports parking lot. Tremayne Sheppard/Eastern Mountain Sports

The tradition of crowds camping out at stores in advance of Black Friday to be the first in the door has waned, largely because retailers start the sales earlier and shopping online has gotten more popular. Now outdoors retailer Eastern Mountain Sports is starting a new tradition of pitching a tent in parking lots, but it’s camping for the sake of camping, and it happens at the end of Black Friday, not a day (or week!) beforehand.

On what EMS is calling its first annual Black Friday Parking Lot Campout, more than 200 campers at stores in Princeton, New Jersey, and West Lebanon, New Hampshire, arrived at about 6pm. The first 20 groups to arrive (and stay the full night) got to keep a camping package valued at more than $1,200, including a four-person tent and four sleeping bags, sleeping pads, and camp chairs, all of which had already been set up by EMS.

Most tents were set up in grassy areas on the periphery of the parking lot, while on the pavement there were food trucks, a climbing wall, movies, porta-potties and—the cornerstone of any camping experience—DJs.

Keep reading here.—AAN

     

COMMUNITY

Coworking with Sean Mitchell

Sean Mitchell headshot Sean Mitchell

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Sean Mitchell is VP of customer success at Gather AI, which provides drone-powered inventory management.

How would you describe your job to someone who doesn’t work in retail? For context, our solution at Gather AI uses autonomous, commodity drones, and AI software to automate inventory monitoring for warehouse operators to decrease inventory costs, improve productivity, and boost revenue. I’m responsible for bringing AI and data analytics to the world of inventory and warehousing, supporting customers across third-party logistics, retail distribution, manufacturing, food and beverage, and health and wellness.

One thing we can’t guess about your job from your LinkedIn profile? I’m an engineer and am responsible for overseeing hardware design, supply chain, and sourcing. In my role at Gather AI, I’ve also had the opportunity to share about my work with some podcasts. I never thought this would be something I would do, but it’s been a great experience, and you can check out my episodes over at The Manufacturing Executive, Supply Chain Careers Podcast, and TechEd Podcast.

What’s your favorite project you’ve worked on? The Army and Air Force Exchange Services was one of our first large customer implementations. Gather AI has helped them manage over 100k pallets locations between two sites. Their distribution scale is huge, and this includes shipping to and supporting retail customers all over the world.

Keep reading here.—EC

     

TOGETHER WITH UPTEMPO

Uptempo

Assembly required: IKEA’s Blueprint for Global Commercial Agility. Get an exclusive look at how IKEA operates their complex $45b retail business in a live webinar on Dec 11. You’ll have the opportunity to dive into the commercial planning + analytics solutions driving IKEA’s success and ask questions in a live Q&A. There’s a lot to unpack, so register here.

SWAPPING SKUS

Today’s top retail reads.

Wanted: Retailers including Best Buy, Dick’s Sporting Goods, Target, and Walmart are focusing on consumer demand and cutting back on inventory for the holidays. (the Wall Street Journal)

Fuel to the fire: Retail giants like H&M Group, Inditex, Gap, and Nike have been looking to biomass as a sustainable alternative to coal to fuel the process of dyeing and treating fabrics. (Business of Fashion)

Sky’s the limit: NASA is working with Hawaiian farmers to boost local food production and address food insecurity using AI and satellite imagery. (Agriculture Dive)

Black Friday, unwrapped: Bluecore’s looking back at Black Friday’s data, trends, and insights with their biggest analysis yet. Join their free webinar to find opportunities beyond Cyber Week by leveraging the latest consumer findings.*

*A message from our sponsor.

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