Weekly Insights Aug 12, 2016

Executive Summary

• This week’s note “From the Desk of Deborah Weinswig” considers the value that operating physical stores brings to retailers, particularly in terms of marketing.
• Off-price retailers will continue to take market share from department stores, according to Moody’s Investors Service, which estimates that off-price revenue will grow by 6% to 8% in the next five years. As traditional department stores are struggling with sales and closing stores, off-price retailers are expanding and adding stores.
• UK supermarket chain Sainsbury’s is launching a new range of athleisure items in 170 stores and online. The move underlines the company’s plans to grow its nonfood business and maximize store space.
• Amazon Fashion launched in Mexico on July 28, entering a market that faces many challenges in terms of e-commerce. The e-store will include millions of items of clothing and accessories in a variety of colors and sizes, and the company plans to offer free shipping and returns for “eligible articles.”