Industry News – March 28th, 2016

Curated fashion industry news links for Monday, March 28th, 2016…

HIP NEW RETAIL HUB TO OPEN IN UNUSUAL — AND BUSY — NYC LOCATION – RetailingToday
“An underground shopping arcade with cool stores and hip eateries is coming to one of the busiest subway stations in New York City. TurnStyle is set to open in mid-April, on the subway concourse at the 59th Street Columbus Circle subway station in Manhattan. The 30,000-sq.-ft. center, the first major privatization of a New York subway station, is located along both sides of the 325-ft. long passageway from Eighth Avenue and 57th Street to the subway platforms at 59th Street-Columbus Circle. (The passageway is free to pedestrians since it is not in the fare zone.) Some 20 shops, kiosks and pop-ups will be featured, including such familiar retailers as Lush, Starbucks, Papyrus, and Dylan’s Candy Bar. But local independent businesses dominate the mix.”

ONLINE LUXURY RETAILER GETS PHYSICAL AGAIN – RetailingToday
“Online luxury consignment goods retailer The RealReal continues to make moves in the physical world as it seeks to simplify how customers interact with its innovative retail model. San Francisco-based The RealReal began establishing a direct physical presence last August when it opened an office in New York City to authenticate and accept goods for sale. In February it added a location in Los Angeles and now it has a third location in Chicago which focuses on jewelry and watches.”

ZARA HAS A SECRET WEAPON TO BEAT EVERY OTHER RETAILER – Business Insider
“Most retailers are faced with the challenge of keeping up with Zara. The retailer has a famously tight supply chain and rolls out runway-inspired styles rapidly. Parent company Inditex is routinely praised as having “the best business model in apparel.” “We believe that Inditex has the best business model in apparel and expect Inditex to deliver double-digit earnings growth per year over the next five years,” Bernstein analysts wrote, according to The Wall Street Journal.  This seemingly unflappable success is no fluke. Zara has some secrets up its trendy sleeves that help it avoid fashion misfires.”

THE 4 WORST-PERFORMING APPAREL RETAILERS IN THE INDUSTRY – Business Insider
“Several retailers are floundering. Morgan Stanley recently ranked retailers based on performance. Morgan Stanley considered eleven factors and took them into account for over the past decade. High-performing retailers were protected from what Morgan Stanley called the “Amazon threat” and demonstrated comparable sales growth. These struggling retailers are ostensibly not invincible from the imminent rise of Amazon and have demonstrated poor sales growth over the past ten years. Many of these retailers are in transition phases now, working to undo the past.”

ZUMIEZ TURNS STORES INTO MINI-FULFILLMENT CENTERS – RetailingToday
“Teen retailer Zumiez has enhanced its omnichannel strategy by using its stores as local fulfillment centers for online purchases. The Lynwood, Washington-based retailer of  board-sports apparel and gear wants to ensure customers can seamlessly shop among its 600-plus brick-and-mortar and digital channels. To that end, it has partnered  with supply chain management software provider SalesWarp to aid in the performance of distributed order management, customer service, warehouse management, and in-store fulfillment.”