Retail Diary - Deep Dive - Week of April 1st 2024 - Phoebe Philo, Levi's, Beauty news & more

No tricks in here - all the latest retail news. From the latest on Philo, Sustainability trends, Levi's strategy & trend, the State of Beauty news and all the collabs & launches of late.

Apr 04, 2024

This Week's Topics:

Phoebe Philo Arriving at Bergdorf Goodman
Sustainability News
Levii’s Jeans
State of Beauty
New Collabs, Launches, Investments, Corporate Moves, Stores & News
What else I ❤️️

🛍️ Quick note: I write a lot (too much good stuff to share!) so if you’re reading via email only, you may need to click through to the web version or read on the Substack app. I promise it will be worth it. 🛍️

Phoebe Philo Arriving at Bergdorf Goodman

WWD reports that Phoebe Philo will be launching at Bergdorf Goodman, in store only, starting on April 11th. There will be limited styles available and it will arrive in two deliveries between April and May and be in the store until it sells out. Initial thoughts - BG with a single location (and agreeing to no online sales) is appealing for managing inventory. Also, they likely needed to have a place in the US for customers to try on and see in person. Potentially not getting enough sales in the US currently. I haven’t heard yet, but I was looking to see if through the minority investment of LVMH, if Phoebe Philo would be partnering with La Samaritaine in Paris (LVMH owns the department store.) Will be interesting to see if other locations/partnerships pop-up.

Sustainability News

It’s April - so be prepared for all the Sustainability updates and focus (Earth Day is April 22nd.)
Glossy interviewed an anonymous packaging designer about some of the challenges in sustainability and beauty packaging as well as how good for the environment refills actually are (not surprisingly, there are still issues with sustainability in refill packaging.)
Female designers are doing more for the sustainability efforts - examples being Gabriela Hearst and Stella McCartney.

Levii’s Jeans

I will overuse this Beyoncé song title and I apologize. But I also heard on the Pop Culture Happy Hour podcast that it will likely be the song of the summer so I might sound like a broken record for a bit.

“Levi’s Wants You To Rethink Your Denim Shopping” (gift link to read behind paywall) by Jordyn Holman for the NYTimes dives into so many of the changes in strategy and the focus for the Brand/Retailer. A few highlights from this article:
- Michelle Gass, CEO as of January 2024, plans to diversify the offering at Levi’s beyond jeans. They are also looking to lean into Direct to Consumer channels like e-commerce and their own stores to be less reliant on other Retailer’s plans. Levi's plans to increase its total sales and aims for 55% of its revenue to come from direct-to-consumer channels within six years.
- It is standard for new CEOs to come in and make changes (that is often what is needed) and there will be many operational changes including edits to the assortment (cutting out low profit items and improving efficiency) as well as job cuts.
- Levi’s wants to leverage data for insights and market trends and react quickly. I think right now is their moment to lean into this. We’ve got the Cowboy trend in their favor and the denim-on-denim-on-denim-on-denim. To do this right they also need to meet customers where they are at and provide excellent customer service.
WWD also featured an article about Levi’s and Michelle Gass. A few points:
- As noted above, Levi’s wants to aim to be at 55% of revenue from DTC channels. They are currently at 48% for the last quarter but that is up 7%. Wholesale sales were down 18% (only 9% down considering timing shifts) but the DTC needs to increase more to make up for the Wholesale loss difference.
- The middle income consumer represents 40% of the category. Given the Beyoncé and denim trend, they could very easily grow with a higher-end consumer as well or a lower income consumer that sees Levi’s as aspirational at this moment.
- While they are exiting the shoe business in Europe they did leave the door open for more collabs. Now could be a great time to collab with a Lucchese, Tecovas or Miron Crosby.
Business of Fashion recently wrote about the new “The Floor is Yours” Levi’s campaign asking it’s audience/consumers to film their own moves in Levi’s. Some of the marketing execs that are quoted for the article talk about how difficult it is to make a change and move further away from your core (in Levi’s case, the focus on denim.) And the latest from BoF on Levi’s financial forecast here.
WhoWhatWear podcast did an episode with Levi’s Jeans on Spring 2024 trends and I liked how they leaned into the idea that denim doesn’t have to be designer or expensive. With Levi’s Jeans often around or under $100 (vs many jeans now into the $200-$300 price point at minimum) this should be a huge selling point.
- Note - this podcast was an editorial (aka likely paid for by Levi’s) but I think WWW did a solid job still making it interesting.
- Note two - I like seeing Levi’s utilize this type of content and I think a podcast with WWW was a solid choice as a partner.
Other brands, like Lucchese and retailers with Cowboy looks, are also seeing an increase in sales due to the Cowboy Carter album. (See Data But Make It Fashion instagram highlight here.)
For the denim-on-denim-on-denim-on-denim look here are a few options: Western Shirt, Ribcage Jeans, 501s, denim jacket, and a mini dress that is great for layering now and summer.

All images via Levi’s and/or linked above.

State of Beauty

Multiple articles this week written with details on Ulta’s slowdown and the overall Beauty downturn. I think it is something to keep an eye on, but not major alarm. The media has been covering so much of the opportunity and bright spot in Beauty that it was bound to either become oversaturated or not continue with the same strong headwinds.
- Ulta CEO Dave Kimbell spoke at a J.P. Morgan conference this week and many outlets covered his words. WWD here, WSJ here (see quote below from WSJ)
  “We do expect a normalization to occur this year in the category,” said Jessica Ramirez, senior research analyst at Jane Hali & Associates. “However, we believe the consumer will continue to prioritize the beauty category as products across skin care and wellness are replenishable.”
Thrilled to be part of Beauty Substack and love that Business of Fashion wrote about the space this week. “The Substack-ification of Beauty” was written by Brennan Kilbane. The points this article makes is that:
- People are interested in newsletters and subscribing to news to their email in box.
- Journalist have an outlet where they can write what they want vs being tied to what editors and advertisers need. It is an outlet to explore stories that feel more personal.
- Of the 50 top Substacks in Fashion & Beauty, only 3 are dedicated to Beauty. So we either have more opportunity for Beauty or, what I think is also happening, is some include both fashion & beauty.
  “As a freelancer, DeFino may have made $40,000 in a good year. Now, she makes six figures from her Substack subscriptions. Even more valuable, she’s made a name for herself. Now, the outlets that passed on her stories reach out to her regularly. She usually says no. “I make more money per word writing for myself, and have more fun doing it.””
- A few beauty focused Substacks I follow and appreciate:
  Jessica DeFino
  who recently changed the name of her Substack from The Unpublishable to
  The Review of Beauty by Jessica DeFino
  . Former Allure Editor in Chief Michelle Lee’s
  Go Ahead, Try Me
  I’m thrilled to see what
  Jess Graves
  does with her
  THE LOVE LIST
  (PS she’s looking for a Beauty Editor - could that be you?) I just subscribed to
  Anita Bhagwandas
  The Powder Room. I also really enjoy
  Emese Gormley
  who writes
  Tell me more
  with lots of beauty recommendations (she is one of the hosts of Lipstick on the Rim podcast with
  Molly Sims
  ) and I’m interested to see what
  Bobbi Brown
  writes on Substack since she joined last week (I really enjoyed her recent “Amazon Essentials” as it was filled with many finds that were unique and new. There is also a growing focus on fragrance and for that
  Christina Loff
  has
  The Dry Down Diaries 💅
  .
If you prefer to listen to your news vs read, I liked this episode of Gloss Angeles “Will Rare Beauty and/or Glossier IPO? Plus, Do You Agree With These Top 10 “Innovative” Beauty Brands”

New Collabs, Launches, Investments, Corporate Moves, Stores & News

Collabed
- Free People x Dr. Scholl’s read about it here - this partnership was done to feature during Festival Season.
- Simone Rocha x Crocs read more here from Highsnobiety, here from Vogue (and keep scrolling down for a deeper dive on Simone Rocha from WaPo.)
- Aerin Lauder has been launching collabs with the Williams-Sonoma brands. See the tabletop collection here.
- Leandra Medine Cohen
  ’s 2nd collab with Soeur UK launched with fabulous layered pieces and an easy (but fabulous statement) silver cinch clutch.
- Alo collabs with Beats in an exclusive partnership. Fuzzy headphones here and sparkle here. The brand partnered with Tyla for the launch.
- Jimmy Choo collabs with Malbon on a golf collection.
- Doen x K. Jacques on summer sandals
Launched
- Rhode (the clothing line) launches Swimwear. The collection features their vibrant colors and interesting prints that they are known for. It’s a smart move as the consumer is already shopping Rhode for resort and travel looks.
- Australian label Zimmerman launched an exclusive collection at Nordstrom. See the collection here.
- Lizzo’s shapewear brand Yitty launches swimwear. Check it out here.
- Serena Williams launched Wyn Beauty, a 10 piece collection in 680 Ulta Stores. You can see the collection here. Wyn Beauty is leaning on skincare based beauty and buildable colors.
- Rita Ora launched Typebea, a Hair Care line joint venture with Australian beauty entrepreneur Anna Lahey.
- Louis Vuitton launches a “Perfume Atlas” with 45 vials of raw materials for crafting scents.
Invested & Acquired
- Emma and Jens Grede take a minority stake in Greg Chait’s The Elder Statesman.
- FullBeauty Brands just acquired Dia & Co. Dia & Co uses algorithms and human stylists to style customers and they are also a size-inclusive marketplace. In the last year FullBeauty Brands has also acquired Cuup and Eloquii.
- Authentic Brands Group agrees to buy Champion from HanesBrands Inc for about $1 Billion.
Corporate Moves
- CEO André Hoffmann is leaving L’Occitane and two years after acquiring Grown Alchemist Hoffmann has purchased the majority stake in GA and the current CEO of Grown Alchemist Anna Teal will stay on as the brand CEO and have a minority stake.
- Bulgari announces Mary Katrantzou as the first Creative Director of Leather Goods and Accessories.
Stores & News
- Skims latest model is Sabrina Carpenter in a 90’s style photoshoot for their lace collection.

Images of The RealReal’s recent Instagram campaign - linked below.

What else I ❤️️

Wow! The RealReal stepped up their Instagram content with this piece. I hope it is a hint of what’s to come. It feels like it fits in well with Ssense’s fun content. I also really appreciated how they played April Fool’s by giving a mention to The Weird Real that playfully calls out all the silliness in oddly shot items (backwards, as a top when it is a skirt, etc)
Rachel Tashjian wrote a beautiful and powerful piece on Simone Rocha and her modern, feminine and strong designs. “Simone Rocha’s Spectacular Run” (gift link to read behind paywall.) Rocha has been designing her label since 2010 and recently was the guest designer for Jean Paul Gaultier’s Couture show in January 2024. Rosamund Pike has worn a few pieces of the designer including this couture piece and for the BAFTAs. (A few fun Rocha pieces: pearl sandals, pearly bag and a gorgeous brocade dress with bow details and the crocs collab.)
“Why Rich Shoppers Get So Angry About Hermés” by Amanda Mull for the Atlantic is about the latest California case about their pricing practices.
Trends come and go, and often come back around. NYTimes wrote “What Happened to Diane Von Furstenberg’s Wrap Dress” which coincides with their 50th Anniversary of the brand and the wrap dress. While this article discusses that the Wrap Dress is not currently trending (I have a lot of thoughts on this - one of which, isn’t it a shame that during a time period when women are overwhelmed with work and family pressures the trend of a dress that is “one and done” is not considered “in”? My other comment - if you like it, wear it. Don’t worry about trends.) Also worth noting, in 2014 the NYTimes was very pro wrap dress - see here and here, which also coincided with DVF’s tenure as President of the CFDA from 2006-2019. You can grab a DVF wrap at Target: dress, wrap jumpsuit and adorable Kid’s faux wrap dress.
Kristen Wiig’s Target Lady always made me laugh. I’m thrilled to see the retailer partner with Wiig on some fun commercials. More humor in commercials, Emily in Paris is helping to promote the 2024 Summer Olympics in Paris. She dresses Noah Lyles, “the fastest man alive.”
I enjoyed listening to this Breaking Beauty interview with Ouai, Mane and Highlight Artists (an agency for hair and makeup artists) Founder/Co-Founder Jen Atkin.
Passover is very late this year and is messing with Grocery Store’s inventory and sales planning.

What's Next?

Sustainability messaging will really pick up in the next few weeks. I’m sure denim trends will stick around and we’ll see the latest in Spring trends and then moving into denim shorts for summer (capris/pedal pushers and shortalls too!?) Tennis and pickleball trending for the summer season - I’ll see you on the court! Hoping for some more fun collabs this season.

Thanks for reading Deep Dive Edition 159

Sarah Shapiro