DTC Dispatch #051

LATEST NEWS

Macy’s to feature local businesses in holiday market at Herald Square

Macy’s announced on Tuesday that it will host its inaugural Holiday Square at its Herald Square location in New York City as part of its holiday merchandising strategy. Designed by Urbanspace, known for managing some of the city’s iconic markets, this market-like event will run from November 1 to January 3.

The Holiday Square will feature over 30 local businesses offering a variety of holiday gifts, products, and treats. Shoppers can explore custom ornaments, jewelry, handmade stationery, candles, and seasonal food and drinks like hot chocolate and stroopwafels.

Additionally, Macy’s is highlighting its expanded holiday selection, with 40% of its merchandise being new this year, alongside exclusive products and new brands.

Our take: Macy's decision to launch its first Holiday Square at the Herald Square location seems like a smart move to boost holiday sales and reinvigorate its presence in a competitive retail market. By partnering with Urbanspace, known for creating authentic, vibrant market experiences, Macy's can tap into the festive spirit that attracts New Yorkers and tourists alike during the holiday season.

The inclusion of over 30 local businesses not only aligns with the growing consumer preference for supporting small, local brands but also adds a sense of community to the experience. This curated mix of unique gifts, artisanal products, and seasonal treats like hot chocolate and stroopwafels helps differentiate the Holiday Square from typical department store shopping, offering a more engaging and memorable experience.

Moreover, Macy’s emphasis on fresh inventory—with 40% of its holiday merchandise being new this year—shows a strategic effort to attract repeat customers who seek novelty during their seasonal shopping. The combination of exclusive products and new brands could appeal to a wider range of consumers looking for something unique. Overall, Macy’s Holiday Square has the potential to draw in shoppers and revitalize interest in the flagship location, turning holiday shopping into a destination experience rather than just a transactional one.

Adobe partnership, store expansion keys to kickstarting Ulta Beauty’s growth

After a muted Q2, Ulta Beauty outlined its growth plans at its first Investor Day since 2021, focusing on a new data partnership and store expansion.

The key focus is expanding the Ulta Beauty Rewards loyalty program from 44 million to 50 million members by 2028, with an emphasis on personalization. A new partnership with Adobe will enable an automated, real-time personalization engine using AI, helping to tailor product recommendations and reminders based on customer behavior.

Chief Merchandising Officer Monica Arnaudo highlighted plans to revive the makeup category with new products and exclusive brands, which make up 20%-30% of annual revenue. Ulta also aims to expand its presence in the wellness market with a broader selection of supplements and personal care products.

Ulta is exploring smaller-format stores in new markets like Wilson, North Carolina, and plans to expand into Mexico in 2025, with a target of 100 stores. The long-term goal is to reach 1,800 stores, up from around 1,400 currently, with 200 new locations by 2027.

Our take: Ulta Beauty’s growth strategy, following a weak Q2, appears well-suited to navigate a changing retail landscape. Its focus on expanding the loyalty program and using AI-driven personalization through a new Adobe partnership meets the demand for tailored experiences, likely boosting customer satisfaction and loyalty.

Reviving the makeup category with new products and exclusive brands is also key, aiming to attract both new and existing customers. This approach diversifies Ulta’s offerings while reinforcing its strength in makeup.

The move to smaller-format stores and expansion into Mexico shows a strategic approach to growth, tapping into new markets and enhancing the shopping experience. If successful, these efforts could secure Ulta’s position as a leader in beauty retail, though maintaining consistency across formats and regions will be critical.

Margot Robbie is the New Face of Chanel No. 5

Margot Robbie, known for her roles as Naomi Lapaglia in The Wolf of Wall Street, Harley Quinn in Suicide Squad, and Barbie in Barbie, has now become the new face of Chanel’s iconic No. 5 fragrance.

“It’s incredible to be a part of Chanel No. 5, one of the world’s most iconic fragrances,” Robbie shared in a press statement. She previously represented Chanel as the face of Gabrielle Chanel Essence in 2019 and starred in the Rouge Allure Velvet Nuit Blanche campaign earlier this year. “There’s such a rich history of women associated with this fragrance, and I’m truly honored to join that list.”

This week, the classic scent returns in a romantic new campaign titled See You at 5, directed by Luca Guadagnino. The campaign features Robbie alongside Jacob Elordi, as they take a scenic ride along the Californian coast.

Our take: Margot Robbie’s appointment as the new face of Chanel No. 5 feels like a perfect pairing of timeless elegance and modern charm. Known for her versatility, Robbie brings a fresh yet classic appeal that aligns well with the heritage of Chanel’s most iconic fragrance. Her previous collaborations with the brand, such as representing Gabrielle Chanel Essence and the Rouge Allure Velvet Nuit Blanche campaign, have already demonstrated her ability to embody Chanel’s refined aesthetic, making this new role a natural progression.

Her remarks about joining a lineage of legendary women associated with Chanel No. 5 speak to the legacy of the fragrance and the power of brand heritage in the luxury market. By featuring Robbie, Chanel is able to maintain its storied past while also appealing to a new generation of consumers who admire her diverse range of roles and charisma.

The latest campaign, See You at 5, directed by Luca Guadagnino, adds a contemporary and romantic flair to the classic scent, showcasing the brand's ability to stay relevant without losing its iconic status. The choice of a scenic Californian backdrop, paired with Robbie’s effortless sophistication, allows Chanel No. 5 to remain aspirational yet approachable. This collaboration is a strategic move that not only reinforces the allure of Chanel’s timeless fragrance but also capitalizes on Robbie’s star power to reach a broader, younger audience.

Miu Miu Unveils an Immersive Exhibition at Art Basel Paris

October brings the start of fall and the excitement of holiday festivities. As you layer up for the cooler days, explore the latest fashion releases that will keep you both stylish and up-to-date this season. From Miu Miu’s exhibition debut at Art Basel Paris to Jacquemus’s new store opening in New York City, here’s everything to know—and shop—this month.

Miu Miu has made its official debut as a partner at this year’s Art Basel in Paris, celebrating with a special exhibition called “Tales & Tellers.” This showcase explores the power of stories and history, featuring actors alongside video projections of artistic moments from Miu Miu runway shows dating back to Spring/Summer 2022.

Our take: The intersection of fashion and art this October, marked by Miu Miu's exhibition at Art Basel Paris, highlights the evolving landscape of luxury brands engaging with cultural narratives. Miu Miu’s debut at the prestigious art fair with Tales & Tellers is a compelling way to blend storytelling with fashion, emphasizing the depth and artistry behind its collections. By curating an exhibition that explores the significance of stories and histories, Miu Miu reinforces the idea that fashion is not just about clothes but about experiences and emotions.

The choice to integrate actors and video projections from past runway shows adds a dynamic layer to the exhibition, making it more immersive and engaging for attendees. This approach not only celebrates Miu Miu’s creative evolution since Spring/Summer 2022 but also aligns with the broader trend of fashion brands stepping into the art world to offer deeper, narrative-driven experiences.

Meanwhile, the buzz around Jacquemus's new store opening in New York City is a reminder of the brand’s growing influence and its ability to captivate fashion enthusiasts globally. As the weather cools and the holiday season approaches, these events invite shoppers to not just update their wardrobes but to connect with the stories and creativity behind the pieces. It’s an exciting time in the fashion world, as brands like Miu Miu and Jacquemus continue to push the boundaries between style and storytelling.

Authentic Brands Group and Saks Global Launch New Luxury Platform: Authentic Luxury Group

According to the McKinsey Global Fashion Index's report from last year, the luxury sector has been grappling with ongoing and intensifying challenges. Regionally, Europe and the United States saw sluggish growth throughout the year, while China’s initially robust performance diminished in the latter half. Although the luxury segment started strong, it ultimately faced the repercussions of declining demand in the second half, resulting in slower sales and varied performance.

The latest report in this annual series explores the significant themes influencing the fashion economy and evaluates possible responses from the industry. Based on extensive research and numerous discussions with industry leaders, it highlights key trends that may shape the fashion landscape in the upcoming year.

Our take: The McKinsey Global Fashion Index highlights the challenges facing the luxury sector, serving as a reminder of the volatility that even established industries can experience. Slow growth in Europe and the U.S., along with China’s declining performance, underscores how interconnected the global economy is and how luxury brands must adapt to changing consumer preferences.

Despite a strong start, the luxury segment has been affected by the broader economic climate, stressing the importance of agility in responding to market changes. Brands must balance maintaining exclusivity with staying relevant in a rapidly evolving landscape.

The report’s analysis of key themes and potential responses offers valuable insights for stakeholders aiming to adapt. Brands should focus on innovation, sustainability, personalized experiences, and exploring new markets to tackle challenges and seize opportunities.

As we move forward, it will be interesting to see how luxury brands implement these insights. Those that can adapt while staying true to their roots are likely to emerge stronger in the changing landscape.