From smart speaker company Sonos shuttering offices to luxury brand Hermès busting an organized crime ring run by its own employees, this week’s news in retail has us microwaving the popcorn. Read more on that, plus how the bored and rich are driving jewelry sales — all in this week’s Retail in Recap.
The online retailer is due to report Q2 results next week but announced on Thursday that it expects to beat analysts quarterly estimates. José Neves, Farfetch’s chief executive officer said the company has seen “luxury fashion sales moving online faster than previously anticipated.”
The company has been witnessing accelerated year-over-year demand from its European and Middle Eastern markets, as well as continued strength in the Chinese market.
Former Hermès employees appeared in court this week for a trial over the manufacture and sale of high-quality counterfeit Hermès bags by an organized crime ring with direct ties to the French designer known for its $10,000+ Birkin and Kelly bags.
In 2011, Hermès’ internal monitoring systems observed “abnormal behaviors,” which led the fabled brand to file a complaint with the French law enforcement. The complaint prompted a year-long investigative partnership between the designer and French law enforcement.
Sonos has announced its plans to lay off 12 percent of its workforce and close its flagship store in SoHo, New York in an effort to gain more “operational flexibility.”
In addition, the company intends on closing six satellite offices and will reduce the compensation of its CEO, Patrick Spence, by 20 percent for the remainder of the year. The company’s board has also approved a 20 percent decrease in base salary for other executive officers starting from July 1 till the end of September this year.
COVID-19 has been a great reminder that consumers favor brands and retailers who can create a real human connection and a sense of community. During this time and long after the pandemic is over, consumers will continue to look for both of these aspects in brands and retailers they shop with.
At the same time, brands and retailers must also realize that eCommerce prominence is here to stay and continuous investment toward digital innovations will remain key to growing their platform and sales.
While demand for essentials such as athleisure and household items have seen a surge during the pandemic, interestingly or oddly enough, demand for fine jewelry has also seen a surge in sales.
Fashion discovery platform Moda Operandi recently reported a 35 percent increase in fine jewelry sales along with various other jewelry brands that are experiencing stronger sales as well.