Zara's push towards online shopping exposes issues with the retailer’s fit, product quality and service.
The recent shift to online shopping isn’t working in the interest of retail brand Zara, as its exposes its issues with the fit, product quality and online service, according to Credit Suisse analyst Simon Irwin.
Comments about Zara products “are poor and declining” on consumer-review websites Trustpilot and Sitejabber, the analyst wrote in a note previewing owner Inditex SA’s first-half results on Sept. 12.
“We believe the ‘treasure trove’ nature of a Zara shop is still a better experience off-line,” Irwin wrote. While online is driving like-for-like sales growth, that can have a negative impact on gross margin, he also said.
The broker estimates that the Web will represent about 10 percent of Inditex’s sales this year, up from 2.4 percent in 2013. It also expects 2018 to be the sixth consecutive year of Ebit margin decline.
Inditex shares had their worst week in seven years last week, falling 8.7 percent after Morgan Stanley published a scathing report saying the retailer has gone from great to good.
Credit Suisse lowered its price target to 24 euros from 25 euros and maintained its underperform recommendation.
The two top editors of Vogue, Phyllis Posnick, the executive fashion editor of Vogue stepped down alongside fashion director Tonne Goodman last week. They are considered the two most recognisable faces at any fashion show in New York.
It was announced by Anna Wintour, the editor of Vogue, that both Phyllis and Tonne will leave their staff positions and become contributing editors.
The position of fashion director will be taken up by Virginia Smith.
Publishers, Beauty of Fashion report, Sephora are organising an event for the retailer’s most dedicated customers to interact with their prized beauty brands. The event will be called Sephoria House Of Beauty, and will take place on October 21st-22nd in LA with installations from over 50 brands for consumers charged between $100 and $500 to explore and shop.
While Sephora cannot confirm which brands will participate in Sephoria, the retailer will likely draw on the many prestige brands in its portfolio, especially the LVMH-owned ones such as Rihanna’s Fenty Beauty. Sephora is joining a multitude of retailers in creating experiences for customers that go beyond shopping in a conventional store. Sephoria will feature a range of set-ups around the "house" theme, including a kitchen where consumers can “play with ingredient-based skincare,” and a laundry room that is the backdrop for cleansers. When it comes to product, Sephoria’s emphasis will be on limited-edition elements such as exclusive colours, packaging design and personalisation, rather than sales. Yeh said the company doesn’t want the event to overlap with the in-store experience.
The goal with Sephoria is to build community and give customers a fun, interactive experience — “lots of juicy experiences that she’s can snap and share and wow her social community with,” said Deborah Yeh, senior vice president of marketing and brand at Sephora. “We’ve been dreaming about something like this for awhile.
Sephora generated between $4.4 billion and $4.9 billion in sales in 2016, according to Coresight Research (LVMH does not break out Sephora's financials).
Some of the other winners included:
Kaia Gerber - Breakout Star Women
Alton Mason - Breakout Star Men
Cameron Russell - Social Media Star Women
Luka Sabbat - Social Media Star Men