Retail Diary - Deep Dive - Week of April 8th 2024 - Store visits, Uniqlo & Beauty Strategy

I visit shops on Fillmore St in San Francisco, plenty of store news, let's chat beauty strategy and lots of odds and ends.

Apr 11, 2024

This Week's Topics:

Store Visits
Uniqlo
Beauty Thoughts - Expansion
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. 🛍️

Store Visits

I recently shopped Fillmore Street. There was so much to love between discovery in person, the actual shopping experience and impeccable customer service. A few shops I popped in to:

Little Words Project - I’ll stop in, might as well. But I’m great at DIY and made over 3 dozen bracelets for The Eras Tour. I have no need for beaded bracelets…was I in for a surprise! Walked in and oh my - so many treasures. First there were walls and walls and shelves and shelves of bracelets. They had different themes, collabs and sizes. They also paired the items with candles, stickers, socks etc. They can do custom beading, they had a special San Francisco collection and later this month they are bringing back beading time slots where they have more unique beads you can only use when beading your own piece. I love the interaction, the sales associate was lovely - helpful but also let me just have fun discovering on my own. I picked out this and the pouch the SA1 put it in has the bubble wrap details in the shape of a heart. This is a perfect birthday gift for my Gen Alpha.
Credo - this location is their original and from what I experienced in the store it is like running into your neighborhood store to grab a few items. When I walked in there was a woman shopping with two kids and the SA did an amazing job juggling; helping the customer and entertaining the littles while staying calm and engaged. The SAs in the store were all helpful and so informative. They know (and love) the products in the store. In a sea of larger stocked stores it is also fun to go into a smaller store with a curation and P.O.V. I was able to restock my favorite body oil, check out LolaVie in person and discover a cool new lip product that was calling my name.
Freda Salvador - Tried on so many great spring shoes. This pair was so comfortable and the higher vamp is a great option for something closer to a loafer, but lighter. The particular red color felt fresh for spring. This might be my summer sandal but they were out of my size (I needed a half size smaller than my regular size.) Isn’t it fun to go into a store and discover new things?
Clare V. - another great shop to be in IRL2 because of the curation, partnership of brands, the experiential and customization opportunity. First I love seeing the sunglasses, jewelry and skincare (by
Garance Doré
) they placed in the small shop. I also spotted a pair of Jamie Haller loafers and of course tried on. Mistake because now I want a pair. I think I would prefer oxblood so that saved me one purchase today. I saw so many great bags like this one, this one and this one. I also love the customization of selecting a strap. You can play with adding to a new Clare V purchase or it looked lovely on my Mansur Gavriel I was toting around.
Rachel Comey - I loved the opportunity to explore in person vs scrolling online. Feeling the materials (so luxe) seeing the shapes, and the high quality of the products. The store has a nice footprint here with plenty of room to move around and feels so elevated. I fell in love with the shape of this blazer, but it was over 70 degrees out and I was reminded that I did not need another black blazer (who am I kidding, it is what I wear the most and can always find room in my closet for a great blazer. But I left it for another visit.)

It was a lovely afternoon. I also stopped in Browser Books (picked up a Monocle for a great retail interview and the new Marie Claire - because of this BoF article on the future of MC and Who What Wear and I love what Nikki Ogunnaike and team are doing.) Post Script (the stationery items make fantastic gifts), Sezané, Byredo, Frame (love how they display the denim in store), Veronica Beard (also displays their Dickey Jacket so well in store.) The Tailor’s Son looks delish so I’ll head back.

Uniqlo

After Uniqlo has been closing many stores across the U.S. they are ready to expand with a new strategy in place. “Uniqlo, After Its US Retreat, Plans to Open Dozens of New Stores” (gift link to read behind paywall) by Suzanne Kapner for the WSJ.
After other newsletters shared earlier this week there was a lot of chatter that leads to the question of beyond basics, does Uniqlo have a point of differentiation (because the basics don’t feel like enough?) and the online shopping experience leaves something to be desired. The website isn’t intuitive. The mobile app is slightly better but still annoying to shop. This should be an easy fix by conducting a few shop alongs, improving the navigation, and watching how users shop the site on their own. They can also use a platform like HotJar to see where people are rage clicking, because I’m sure they are, and improve the UX.
The three main points of the Uniqlo Strategy:
- Expansion: 11 new U.S. stores, primarily in Texas and California, signifies its aggressive push to re-establish its brand presence after previous setbacks. This shows a potential for growth and commitment to building stronger bases in TX and CA and operational efficiencies or a reason to believe in these locations.
- Market Connection: Uniqlo's success hinges on its improved understanding of American consumers' preferences and tastes. By investing in building brand awareness and adapting its product offerings to cater to local demands, such as introducing cropped T-shirts, Uniqlo demonstrates its ability to resonate with the American market and enhance its appeal to a wider audience. They also have my favorite bag for travel & kids activities (here - it is less than $20!) but I will note, I spy so many more of this bag when I’m traveling in other countries or in large tourist spots (ex. Disney) vs out and about in the U.S. suburbs.
- Competitive Positioning and Growth Trajectory: Despite trailing behind competitors like Shein, Old Navy, and H&M in terms of market share, Uniqlo's revenue in the U.S. has seen significant growth. The shift towards casual dressing and value-conscious consumer behavior positions could position Uniqlo for U.S. success and further expansion if they can keep resonating with the consumer taste.

Beauty Thoughts

Two pieces I loved this week - let’s have a retail conversation:

Beauty Independent “What Retailer Should Rhode Choose” asks investors and beauty experts to weigh in on which retailer, Sephora or Ulta, should Rhode partner with for a move to wholesale. It is rumored that Rhode will be in one (both?? doubtful) soon. My thoughts:
- I’ve heard a quote that you go to Sephora for marketing and Ulta for revenue. Based on this consideration I would think that Rhode’s preference should be Ulta to drive up revenue faster to get a greater future exit via acquisition or IPO. Also, I would think that with this reasoning Rhode already has pretty strong viral marketing. I mean, this phone case!
- However, Glossier has done well with their Sephora launch and this is likely on Rhode’s list of considerations.
- Rhode should consider in their strategy which additional partner is key: Sephora + Kohl’s partnership vs the Ulta + Target.
- It seems most brands do Sephora first with exclusivity and then later launch at Ulta as well. We don’t see the reverse happen very much (Ulta then Sephora.)
Second article on beauty I really liked was Rachel Strugatz piece for The Line Sheet on Merit Beauty.
- I’m impressed with everything Katherine Power has built. She founded Merit Beauty and apparently has hired Goldman Sachs to explore a sale.
- A lot of the wins at Merit have clearly come from the team knowing their target customer but also in taking smart, calculated moves that drive the success. For example, a month after they launched DTC they went into wholesale with Sephora. Power realized the best way to grow was to get as much visibility and marketing for the brand and getting it into customer’s hands. Sephora could be a partner for this.
- The price point is accessible and the target demographic (30s & 40s is my estimation) typically has the discretionary income and desire for products that give that subtle make-up look without any gimmicks. I remember when Merit launched, Katherine Power filmed a casual tutorial applying makeup (before GRWM3 was a thing) easily in her bathroom vanity with a couple of quick swipes. She is the customer and her audience/consumer wanted what she had - a simple and subtle beauty routine.
- I really love this beauty brand! (Can you tell?) So many Merit items are top notch in my book. I love this which always gets me compliments on my skin. This blush which I have in two shades. Right before video calls I’m usually swiping quickly on my cheeks and lips for a one and done. This new matte lipstick which I just bought at the Sephora sale stays on for a long time.

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

Collabed
- Freda Salvador x Left on Friday (I tried on, very cushion-y, comfortable and light)
- Paige Lorenze and Ayan Broomfield collabed with Year of Ours on a tennis collection.
- LeSportSac x Libertine
- Oliva von Halle and Jessica McCormack collab on silk pj’s that have (printed) gems.
Launched
- Farm Rio launches a kids collection timed for Mother’s Day (y’all, it’s so cute!) (new in here)
- Comme des Garcons launches their first Made In Italy leather handbags and they look incredible, chic and the shape is sharp.
- Denim label AG is launching activewear.
- Aimee Song (aka Influencer Song of Style) is launching a new knitwear focused upscale line Amiya.
Invested & Acquired
- Billy Reid is merging with Knot Standard showcasing how DTC brands are opting for mergers instead of raising additional funds for future IPOs or acquisitions by larger conglomerates due to their smaller size. Another article here from WWD on the merger and strategy.
Corporate Moves
- New President at Valentino Beauty, Claudia Marcocci previously worked with Alessandro Michele at Gucci Beauty. This should be fun!
- Angelina Jolie joined Another Tomorrow as an advisor.
- Jessica Alba to step down as Honest Co. Chief Creative Officer to focus on new ventures.
Stores & News
- Spanish owned Puig Brands plans to go public. Puig owns Jean Paul Gaultier, Byredo, Charlotte Tilburry and recently acquired Dr. Barbara Sturm.
- Marc Jacobs opening in Hudson Yards. More on Hudson Yards becoming a top shopping destination here from BoF.
- Rixo is opening a pop-up location in Soho.
- JCPenney opens a new location, the first one in 8 years at Willowbrook Mall in NJ. A $1 billion "refresh" program aims to elevate store presentation standards signaling a strategic effort to reverse sales decline trends through enhanced merchandising, revamped store layouts, and improved customer experiences.
- Watching Brandy Melville documentary. Hardest line for me (and there were many many!!) was when a young woman who previously worked at BM said “I just wish someone had kind of, like, stepped in and, like, made us realize, like, this isn’t okay, this isn’t normal. This isn’t how jobs are supposed to be.” According to People magazine, Stephan Marsan is still the CEO. This is beyond disturbing. How is Brandy Melville still so popular?
- What’s going on at Outdoor Voices? Lauren Sherman from The Line Sheet shared her thoughts.
- Drybar founders Alli Webb and Michael Landau are planning to expand their massage concept Squeeze via franchises.
- Resellers are competing to attract more sellers - eBay UK and Depop remove seller’s fees.

What else I ❤️️

Zendaya. Vogue cover model. Met Gala Co-Host. Here is the content I loved this week (plus SERVING looks for Challengers movie press tour)
- Vogue video Life in Looks is great content. Learned about the process and idea behind the looks. Cover story written by Marley Marius is here.
- The Run-Through Vogue Podcast interviewed Law Roach on his styling and working with Zendaya and Celine Dion. I’m such a fan of Law & Zendaya’s partnership and relationship.
- Hill House Home posted this and I’m thinking they are serving hints…tennis and pickleball fits in the future?
The Fashion Scholarship Fund is a fundraiser dedicated to expanding access to the fashion industry for underrepresented students. Virgil Abloh’s widow, Shannon Abloh, unveiled a new “Post-Modern” Scholarship Fund to double the number of recipients and expand the way the fund defines support. Read all the details from Vanessa Friedman’s NYTimes article “Virgil Abloh’s Legacy Is About to Get Louder” (gift link to read behind paywall.)
Substack
PEOPLE BRANDS AND THINGS
wrote two excellent pieces this week. Both are worth reading for a customer centered data approach to listening to your customers to make decisions. First is about Olipop’s new OOH4 and how they made decisions about targeting locations and also talked about Still Here denim and Ssense. In their post “Airport Security Just Got a Makeover” they discussed Summer Fridays and Supergoop’s campaigns centered around air travel. (PS Summer Friday’s Jet Lag Eye Serum hooked me to pick up in my Sephora sale purchases and the Supergoop! GlowScreen is my always repurchase item as I wear it daily and year round.)
Glossy “For Creators and Bloggers, Substack Offers a Renaissance” written by Sara Spruch-Feiner. I love that the article called out how great it has been for brands driving visibility.
Paris is going to be wild this summer! Era’s Tour, Fashion Week, Olympics. BoF wrote about how the Olympics will really impact PFW.
Looking forward to reading former (fired) editors Laura Brown and Kristina O’Neill book “All The Cool Girls Get Fired.” The goal is to change the narrative and empower readers.
Inc. posted their 2024 Most Intriguing Women Entrepreneurs list.
Feel good eclipse reunion discovered via Alison Fraser

What's Next?

Mother’s Day marketing is starting to trickle in. Pretty soon we’ll have Graduation season too. Met Gala is the first Monday in May (Vogue.com already wondering what Rihanna will wear.) I’m planning to work on Retail 101 Part three on negotiations and merchant decisions next. I also plan to write a get to know me/Sarah’s Retail Diary - any questions? Comment here or DM me via Substack.

Thanks for reading Deep Dive Edition 160

Sarah Shapiro