Industry Updates: Apparel Specialty Stores and Department Stores – July 2014

Personnel Updates:

Abercrombie & Fitch Co. announced its Chief Diversity Officer Todd Corley is leaving the company.

Aerosoles announced that Kevin Mead has joined the company as Exec VP, Retail.

American Apparel Inc. announced CEO Dov Charney has been dismissed from the company. The board of Directors named CFO John Luttrell as Interim CEO

Brooks Brothers has named designer Zac Posen as Creative Director for its signature women’s collection and accessories.

Chico’s FAS, Inc. announced that it has appointed Todd E. Vogensen as the company’s new Senior VP, CFO, replacing Pamela Knous.

Francesca’s has tapped David Minnix Jr. as the new VP and Head of Boutiques.

Fresh Produce has appointed Dorothy Sadd as its COO.

Gordmans Inc. named Amy Starr Myers to the role of Senior VP of Marketing, and Stacey Townsend to the role of VP and General Manager of E-commerce.

Marc Jacobs has announced Sebastian Suhl as its new CEO.

Michael Kors named Mark Brashear as President of Menswear.

Nike Inc. has promoted Reenie Benziger to VP of its global apparel business. Carl Grebert, a 17-year Nike veteran, replaces Benziger as VP General Manager of global young athletes.

Saks Fifth Avenue announced Sunny Diego has returned to the company as VP and DMM of Men’s Sportswear.

Sears Holdings has named Kristin M. Coleman as Senior VP, General Counsel and Corporate Secretary.

Signet Jewelers Ltd. announced that Theo Killion, CEO and president of its newly acquired Zale division, has resigned effective July 31. George Murray, Signet’s current Chief Integration Management Officer, has been promoted to President of the Zale division and will succeed Killion upon his departure. In other changes, Signet said Ronald Ristau resigned from his position as CFO effective July 31, Michele Santana has been promoted to CFO, and Ed Hrabak has been promoted to President of the Sterling division.

Stuart Weitzman has named Monica Schwartz as Chief Global Digital and E-commerce Officer.

The Running Specialty Group, an operating segment of the Finish Line, has appointed Scott Goodmon as VP, Store Operations.

Financial Focus:

In its first quarterly report since separating from Sears, apparel brand Lands’ End booked a 3.6% rise in sales and a 48.1% surge in profits. The brand still boasts 251 shops inside Sears stores and 14 other stand-alone stores, but it derives about 84% of total revenue from online and catalog sales.

Industry Insight:

American Eagle Outfitters Inc. announced its entry into the United Kingdom. The American Eagle Outfitters stores will be located in the Bluewater premier mall in Kent, England, as well as the Westfield Group’s London and Stratford City shopping centers in London. All of the stores are expected to open in fall 2014.

Hot Mama changed its name to Evereve, marketing to women who are already moms.

Sears has launched an exclusive fashion collection by Seventeen Magazine. The full collection is available at 450 Sears stores nationwide as well as on Sears.com.

Sports Authority announced grand reopening events for its redesigned stores in the Bay Area of San Francisco. Sports Authority has completed remodeling 18 of its stores in the Bay Area, which now each feature an intuitive new store design and specialty sport shops with products from top brands, such as Nike, Under Armour, adidas, The North Face and more.

UGG Australia launched I Heart UGG, a premium tween brand for girls. The debut collection which includes footwear, loungewear, accessories and handbags launched in the United States, Japan and China. Two dedicated I Heart UGG concept stores in Waikiki, HI, and in San Francisco, CA are set to open in early September 2014. Select retailers, such as Nordstrom, Zappos and Dillard’s, also will carry the line in locations across the country.

Real Estate:

Bass Pro Shops recently announced plans for a 145,000 sq. ft. store in Victor, NY. Slated to open in 2016, the store will be the main anchor for Fishers Ridge, a planned mixed-used development.

Bebe Stores, Inc. announced the exit of its 2b business, including 16 2b mall-based stores.

Bonobos Inc. plans to quadruple its real-world presence with 30 additional bricks-and-mortar stores over the next two years.

Cabela’s Inc. will open a 100,000 sq. ft. store in Acworth, GA on Aug. 21, and an 88,000 sq. ft. store on Aug. 7 in Cheektowaga, NY, the retailer’s first New York state location. Cabela’s Inc. announced plans to open a new store in Calgary, Alberta, Canada. Construction is scheduled to begin later this year and Cabela’s Canada plans to open the 70,000 sq. ft. store in the fall of 2015.

Coach Inc. announced that it will close 70 underperforming stores in the United States and revamp its outlet business. Coach plans on closing two existing outlet stores and opening 10 dual-gender locations, as well as consolidating 13 men’s stores into existing women’s stores.

Dick’s Sporting Goods announced the opening of a new stores in Seabrook, NH and Columbus, OH.

Designer Shoe Warehouse announced that it will open its first stores in Canada in August. The 20,000 sq. ft. stores will open at outdoor mall locations in Mississauga and Newmarket, Ontario.

Famous Footwear announced new locations in Pompano Beach, FL and in the Town & Country Village shopping center in Sacramento, CA.

Lululemon will open a new store in Oakwood, OH in early August.

Nordstrom, Inc. announced plans to open a Nordstrom Rack at The Shops at Knollwood in St. Louis Park, MN. The approximately 33,000 sq. ft. store is scheduled to open in spring 2015. The company also announced it plans to close its Florida Mall Nordstrom store in Orlando, FL on August 16, 2014.

REI said it plans to open two new stores next spring, one in Princeton, NJ, and the other in Alpharetta, GA. The 23,500 sq. ft. Princeton store will be located at Mercer Mall. The 24,000 sq. ft. Alpharetta store will be located at Mansell.

Ross Stores Inc. opened its first dd’s DISCOUNTS store in New Jersey on June 28. The store is located in the Capitol Plaza in Ewing, NJ. The company will open new Ross Dress for Less stores on July 19 in Clarksville, Schererville and South Bend, IL, Placerville and Sacramento, CA, Pooler, GA, and Louisville, KY.

Wolverine Worldwide, Inc. plans to close 140 stores in the next 18 months as part of a strategic realignment plan focused on strengthening omnichannel capabilities. Most of the stores to be closed operate under the company’s Stride Rite banner. Sixty of the units will close by year end with the remainder to close next year.

Technology News:

Abercrombie & Fitch is rolling out charging stations for mobile phones and tablets in its stores. Starbucks recently announced it would roll out electrified Powermat charging spots, and Urban Outfitters and Apple have also both piloted mobile charging stations in select stores as well.

Under Armour Inc. is expected to join hands with Samsung Electronics Co., indicating the smartphone maker’s move to expand presence in the global wearable devices market.