Morning Brew - ☕ Trial and mirror

Zero10’s AR tech.
May 17, 2024

Retail Brew

Aptos

It’s Friday, and the Consumer Financial Protection Bureau (CFPB) will live to fight another day for the rights of American consumers. The Supreme Court rejected a challenge to the agency’s authority to draw money directly from the Federal Reserve, preserving its main source of funding.

In today’s edition:

—Jeena Sharma, Erin Cabrey

OPERATIONS

Augmented reality check

Zero10 AR mirrors at Coach and Tommy Hilfiger Zero10

If you’ve walked into a Tommy Hilfiger or Macy’s store and had the chance to play dress-up with an interactive mirror recently, you have Zero10 to thank.

The fashion AR company that started in 2020 with just a digital and AR trial app on iOS today works with fashion retailers including Ugg, Coach, and JD Sport in the US and Europe.

Its primary product? The AR mirror, of course, which comes powered with body tracking and simulation tech that work together to build one really fun machine learning model, where curious consumers are able to envision themselves in a range of different products without actually having to try them on.

And while Zero10 is also working with companies like Warner Brothers and other entertainment brands, fashion retailers make up 70% of the brand’s business, co-founder and CEO George Yashin told Retail Brew.

“There is huge competition in…beauty, cosmetics, and accessories,” he said. “So we started with clothing, because there was zero competition there…because of its super difficult challenge to make this technology and product work.”

He added that he is also looking to expand his tech to sneaker companies, with one ultimate goal: to make his business stand out.

Keep reading here.—JS

   

PRESENTED BY APTOS

Make ’em come back

Aptos

It’s an open secret in retail: More than 75% of customer journeys involve brick-and-mortar locations. So amping up your in-store shopping experience is crucial.

You need one unified commerce platform that makes customer-obsessed retail a reality—Aptos ONE can be that platform.

Aptos ONE POS brings all your shopping channels together, making your experience (and your customers’) smooth and streamlined.

Shoot, it can even empower your store associates with the right tools (like customer profiles, purchase history, loyalty status—you name it), so they can meet your shoppers exactly where they’re at.

Rev your retail engine.

STORES

Naught to trot

Foxtrot exterior Foxtrot

Less than a month ago, Foxtrot and Dom’s Kitchen and Market abruptly ceased operations at all locations after finding “no viable option” to continue the business just five months after merging to form Outfox Hospitality.

This week, Outfox Hospitality filed for Chapter 7 bankruptcy, per a filing with the US Bankruptcy Court in Wilmington, Delaware. In the filing, the company claimed 5,001 to 10,000 creditors and $10 million to $50 million in estimated assets, with the same range claimed for liabilities.

The filing notes that store locations are “in need of immediate action” due to the presence of perishable goods. It also indicates that Outfox’s board approved and authorized the filing on April 23, the day all Foxtrot and Dom’s locations were shut down.

Keep reading here.—EC

   

FASHION

Highs and lows

MyTheresa’s website showing travel-related apparel and accessories MyTheresa

It’s time for Retail Brew’s weekly fashion dispatch. This week, one luxury British retailer saw a dramatic drop in sales, and a fashion industry veteran sold her eponymous label.

Burberry sales drop

Burberry revealed its latest sales results, reporting a whopping 34% decline in annual profit as sales dropped 12% in the final quarter of 2023. The British luxury retailer attributed the disappointing results to underperformance in regions like China, where sales were down 19%, and the absence of tax-free shoppers in London. “Spending by Chinese tourists at our stores in London is less than half of what it was compared to the pre-pandemic, whereas it’s more than tripled in Paris,” CEO Jonathan Akeroyd said in a statement.

Why this matters: Declining sales seems to be the song of the season for luxury retailers. With the exception of LVMH (see below), even huge conglomerates like Kering are struggling as major brands like Gucci and YSL see a drop in consumer spending.

Keep reading here.—JS

   

TOGETHER WITH APTOS

Aptos

In-store is in fashion. If you want to stay on top in retail, you need a customer-obsessed attitude—especially when it comes to in-store experiences. Grab Aptos’ new white paper and start designing empowered + memorable in-store experiences that will wow your customers. Make your store the talk of the town.

SWAPPING SKUS

Today’s top retail reads.

Spread the health: CVS and Walgreens are considering radically retooling stores as pharmacies continue to struggle. (Bloomberg)

Shirts off: Under Armour unveiled a restructuring plan to cut jobs and reduce SKUs after forecasting that sales will plunge between 15% and 17%. (CNBC)

Beefing up: Tyson Foods said it cannot predict when US cattle ranchers will be able to replenish their herds amid a squeeze in the supply of beef. (Reuters)

Retail rush: See how a cloud-native, mobile-first POS can level up your customer experiences. Say hi to happier customers + boosted numbers. Watch the video.*

*A message from our sponsor.

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