It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
From QVC’s latest financial results to Cinnabon-scented wrapping paper, here’s our closeout for the week.
What you may have missed
Nike, Jordan alum joins Authentic as Reebok SVP
Daniel Schachne, an 8-year Nike and Jordan Brand veteran, joined Reebok as senior vice president, according to a Wednesday press release from brand management firm Authentic. He will work alongside Reebok Global Executive Vice President Steve Robaire to accelerate brand momentum and growth.
Daniel Schachne will work alongside Reebok Global Executive Vice President Steve Robaire to accelerate brand momentum and growth.
Courtesy of Authentic
Schachne, who was most recently the general manager of Jordan’s performance sports business in North America, has been in the new role since September, according to his LinkedIn profile. He comes to Reebok with prior experience from Nike’s basketball division and the NBA. At Reebok, Schachne will oversee the brand’s global growth strategy, including working with Reebok’s retail partners, brand ambassadors and licensing partners.
“Daniel has built winning models in basketball and performance sport at some of the world’s top brands,” Robaire said in a statement. “His category expertise and hands-on leadership make him the right person to scale Reebok’s next chapter and unlock new opportunities for the brand globally.”
Ikea’s shop-in-shop concept at Best Buy comes to life
After announcing their partnership over the summer, Ikea and Best Buy’s shop-in-shop concept has launched.
The Ikea concepts within Best Buy stores are now open in several Florida markets, including Boynton Beach, Lakeland, Melbourne, Waterford Lakes and Daytona Beach, as well as one store in Alamo Ranch, Texas. Other Texas concepts in Mesquite, Hulen and South Austin will open on Nov. 14, while a location in Humble, Texas, will open later.
“This partnership is about bringing great design, functionality, and affordability closer to the many, and we can’t wait to welcome customers in Florida and Texas to experience this new way to shop IKEA in Best Buy,” Javier Quiñones, CEO and chief sustainability officer at Ikea U.S., said in a statement. “For the first time in the U.S., IKEA products will be available through another retailer, which is a big step forward on our journey to create a better everyday life for the many people.”
Ikea U.S. will staff the concepts.
Retail therapy
Cinnabon rolls out scented wrapping paper
Sweet-treat brand Cinnabon has debuted limited-edition wrapping paper that smells so good you could almost eat it (but please don’t). The wrapping paper is meant to smell like the brand’s classic cinnamon rolls and comes in a two pack for $8.99, per a Tuesday press release.
Cinnabon’s scented wrapping paper.
Courtesy of Cinnabon
Additionally, buyers will receive a 20% off coupon for a Cinnabon CinnaPack valid until February 1.
“The holiday season is all about celebrating traditions while also creating new memories, and Cinnabon has been a part of those cherished moments for 40 years now,” Urvi Patel, chief brand officer at Cinnabon, said in a statement. “The scent of our cinnamon rolls is a powerful source of nostalgia, synonymous with mall culture.”
What we’re still thinking about
6%
That’s how much QVC Group revenue decreased year over year, to $2.2 billion, the company said in its Q3 report this week. Operating income came in at $60 million, a 61% drop from the year-ago quarter. Total debt increased $975 million during the quarter, primarily due to additional borrowing under the company’s bank credit facility.
The company’s growth strategy is guiding it through a period of transformation, CEO David Rawlinson said on a call with analysts.
“And although there is much work to be done, we are pleased with our progress to date, and the consistent success we’ve witnessed through our social and streaming efforts. We have demonstrated our ability to evolve to meet the needs of the modern consumer, and we remain confident in the future of live social shopping and QVC’s ability to continue to be an innovative class leader in the space,” Rawlinson said.
What we’re watching
Could AI-related job cuts end up boosting … the mall?
More than 40% of companies in the U.S. and U.K. are already planning to have AI replace jobs currently filled by humans. They include Amazon, which just a few days ago said it will cut 14,000 roles. This wasn’t a huge surprise, as CEO Andy Jassy in June said the company would need fewer people because of generative AI.
Rising unemployment is usually a bad thing for retail. But David Simon, chief executive officer of mall giant Simon Property Group, said this week that AI could ultimately be a positive thing for the industry.
The mall REIT will “use AI like everybody else to enhance our loyalty, to enhance our ShopSimon, to enhance our search effort, to connect with the consumer.” But the swiftly growing tech will also open a vast opportunity for the retailers and restaurants in the mall — as long as a three-day workweek emerges as predicted by Bill Gates and others.
“People are going to go to the mall to shop because — what else are they going to do?” Simon told analysts on Monday.
He also dismissed the idea that AI will end the dominance of brick-and-mortar retail, as Jassy said last month. While AI will change how people shop online, it won’t keep them from going to the mall.
“E-commerce, you know, was going to put us out of business for the last 20 years,” Simon said. “And here we are, standing.”