Editors’ Top Reads: News from Boohoo, Debenhams, LVMH and more…
Here are some of this week’s news and features highlights handpicked by TheIndustry.fashion team.
Boohoo boss to step down as it launches strategic review
It doesn’t seem all that long ago that Boohoo Group felt like it was all conquering. It emerged from the pandemic – that proved disastrous for so many – with a slew of new brands to its name, including the likes of Debenhams, Warehouse and Oasis.
Its reputation had been battered, though, by undercover reporting that revealed poor working conditions at factories in Leicester that reportedly supplied the group. However, it swiftly investigated and acted on these issues (appointing a KC to conduct an inquiry and revealing a transparent action plan) and it was CEO John Lyttle (formerly of Primark) who instilled confidence in the market, and in the City, that Boohoo could and would do the right thing.
On top of that I’d always rather bought into Lyttle’s vision of the group growing into the Inditex of the online fashion world and his global ambition was to be admired.
Now, after the dust from the pandemic has settled and the e-commerce boom has cooled, Boohoo, it seems is not invincible and Lyttle is leaving. It was reported today that the Manchester group, co-founded by the formidable Mahmud Kamani, is conducting a strategic review and Lyttle will not be part of it. The news comes as the company also reported that revenues dropped by 15% to £620 million for the six months to 31 August and that it has secured refinancing to fuel its next stage of development.
What does the future look like, I wonder? Maybe that other UK retail group that currently seems all-conquering, Frasers Group (which owns around 23% of its shares), may feature?
Lauretta Roberts, Co-founder, CEO and Editor-in-Chief.
Snapchat hosts augmented reality ‘high street’ on Brick Lane
If you are anything like me, you might be wondering what the future of online shopping is. To think, around 15 years ago I was begging my parents to buy me clothes online, but they were too scared to put their card details on the internet. Fast forward to today, where banks can be exclusively online and we frivolously shop high street to luxury via the internet. Well, this week, Snapchat will reveal what the future of retail might look like at its immersive augmented reality high-street experience.
Snapchat is bringing the “thrill of shopping for fashion and beauty on Snapchat alive” with the launch of its all-new immersive augmented reality high street, Snap Street. Here, shoppers can interact with brands such as Boots and Depop.
The Ely’s Yard building in Brick Lane will be transformed into an indoor ‘high street’ with shop fronts showing off the state-of-the-art AR experiences available on Snapchat. Free to attend, Snap Street will attempt to to elevate the retail experience and showcase what a high street might look like in the future.
Chloé Burney, Senior News & Features Writer.
LVMH sales decline amid slowdown in luxury sector
Not even LVMH is immune from the current challenges faced by the luxury sector. This week, the group reported a 2% decline in revenue to €60.8 billion for the first nine months of 2024, as the geopolitical and economic environment remains uncertain.
The fashion and leather goods business saw revenue decrease, despite Louis Vuitton and Christian Dior enjoying high visibility over the summer with the Paris 2024 Olympic and Paralympic Games. Meanwhile, the watches and jewellery business also reported a decline. Even perfume and cosmetics, which is typically quite resilient, only just managed to achieve growth.
Looking ahead, LVMH reiterated that it remains “confident” and will continue to pursue its strategy focused on the development of its brands. This includes a “sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution”.
Sophie Smith, News Editor & Senior Writer.
In Pictures: Debenhams launches new own brand, Runway London 1.8.1.8
It will be interesting to see the customer pick up on the new own-brand from Debenhams, which launched online this week. It’s called Runway 1.8.1.8, which is apparently in reference to Debenhams’ historic roots – having opened its first department store outside of London in Cheltenham in 1818, hence the digits.
The roots of the retailer actually go back to 1778, when William Clark began trading at 44 Wigmore Street in London as a drapers’ store. It was in 1813 that William Debenham became a partner – and the name changed to Clark & Debenham. Proper retail history that. However, we all know the demise of Debenhams in more recent years, culminating in being acquired by Boohoo for £55 million in January 2021. Boohoo, however, did not retain any Debenhams stores – the last of which closed in May 2021, though it did relaunch its website in April 2021.
So, I guess it’s poignant that this new own brand harks back to the halcyon days when Debenhams was a mainstay on the British high street.
Dan Finley, CEO at Debenhams, said: “We are thrilled to unveil Runway London 1.8.1.8 as a tribute to Debenhams’ legacy of style and innovation. This collection pays homage to the rich history of Debenhams as the great British department store.”
It’s just a shame for former Debenhams store customers that they won’t actually be able to see it in-store (from the photos it looks half decent) and freely try things on, as once they always could.
Tom Bottomley, Contributing Editor.
