Lord & Taylor Sold to Le Tote

Hudson’s Bay said on Wednesday August 28th, 2019 that Lord & Taylor which was founded in 1826, would be acquired by Le Tote, a seven-year-old clothing rental start-up.

What is the world coming to???  A seven year old, purchasing an icon fashion department store.

Aug. 28, 2019-- Hudson's Bay Company (TSX:HBC) and Le Tote, Inc., a leading fashion rental subscription service, have entered into an agreement for Le Tote to acquire Lord + Taylor. Le Tote’s proprietary technology, data and innovation combined with Lord + Taylor’s traditional store footprint, e-commerce presence and merchandise selection will offer customers a new experience in the mid-market segment.

Helena Foulkes, HBC’s CEO, said, “We’re excited to have reached an agreement with Le Tote that creates a new model for Lord + Taylor, bringing together fashion rental subscriptions with traditional retail. Following an extensive review of strategic alternatives, Le Tote’s leadership and innovative approach is the best path forward for Lord + Taylor, its loyal customers and dedicated associates. For HBC, this transaction builds upon our previous bold actions, further enabling us to focus on our greatest opportunities, Saks Fifth Avenue and Hudson’s Bay.”

Rakesh Tondon, Le Tote’s CEO and Founder, said, “Since founding Le Tote, it’s been our mission to push the boundaries of retail. We’ve strived to lead the charge in developing innovative, intuitive, value-driven ways for customers to engage and consume. We’re excited to bring Le Tote together with Lord + Taylor, a storied brand that has stood for quality, style and service for nearly two centuries. With this acquisition, we continue our journey in creating the future of retail.”

Under the terms of the agreement, Le Tote will acquire the Lord + Taylor brand and related intellectual property while assuming operations of 38 stores, Lord + Taylor’s digital channels and the associated inventory.

Le Tote expects to extend employment offers to the vast majority of Lord + Taylor’s associates.
HBC will receive $99.5 million (USD$75 million) in cash upon the transaction’s closing and a secured promissory note for $33.2 million (USD$25 million) payable in cash after two years. In addition, HBC will receive an equity stake in Le Tote, two seats on the company’s Board of Directors and certain rights as a minority shareholder.

HBC and HBS Global Properties, HBC’s real estate joint venture, will retain ownership of all owned and ground-leased real estate assets related to Lord + Taylor. For at least the initial three years, HBC has agreed to maintain economic responsibility for the rent payments owed by Lord + Taylor at the locations operated by Le Tote. Net of HBC’s distributions from HBS Global Properties, HBC expects to continue to be liable for approximately $77 million in Lord + Taylor total cash rent on an annual basis.

In fiscal 2018, Lord + Taylor represented $1.4 billion of HBC’s $9.4 billion in retail sales. HBC’s 2018 Adjusted EBITDA was $462 million, which reflects a $119 million loss attributable to Lord + Taylor, inclusive of allocated corporate expenses.

Starting in 2021, HBC and Le Tote will have options to reassess the Lord + Taylor store network. This may include HBC recapturing select locations to determine their highest and best use, including possible redevelopment into mixed-use properties with a variety of services, experiences and retail offerings. HBC has hired a team of seasoned professionals to lead the planning and execution of any redevelopment, which is an inherently complex, capital intensive, long-term project. For any recaptured or returned stores, HBC retains long-term rent responsibility, risk and costs for redevelopment.

Le Tote is in the process of securing financing for the full purchase price. The transaction is expected to close before the start of the 2019 holiday season, subject to satisfaction (or waiver) of closing conditions. If committed financing has not been obtained within forty-five days following signing, HBC has the right to terminate the agreement.

PJ SOLOMON acted as financial advisor to HBC for this transaction and throughout the review of strategic alternatives for Lord + Taylor and Willkie Farr & Gallagher LLP acted as legal advisor to HBC. Le Tote was advised by Citi, as its financial advisor, and Kirkland & Ellis LLP, as its legal advisor, in connection with the transaction.

Deal term figures in this news release assume USD:CAD = 1:1.3272.

HBC investors should refer to the company’s public filings available at www.sedar.com and at www.hbc.com for additional information and details on the transaction.

About HBC

HBC is a diversified retailer focused on driving the performance of high quality stores and their omni-channel platforms and unlocking the value of real estate holdings. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes formats ranging from luxury to premium department stores to off price fashion shopping destinations, with more than 300 stores and about 40,000 employees around the world. HBC’s leading businesses across North America include Saks Fifth Avenue, Hudson’s Bay, Lord + Taylor, and Saks OFF 5TH.

HBC also has significant investments in joint ventures. It has partnered with Simon Property Group Inc. in the HBS Joint Venture, which owns properties in the United States. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture. HBC has partnered with SIGNA Retail Holdings for real estate and retail joint ventures in Europe.

About Le Tote

Le Tote is a fashion subscription service that lets women rent clothing and accessories for a flat monthly fee. Members choose the items they want to wear and can keep them as long as they like. Members also have the option to purchase items at a discount. Le Tote’s data-driven model is powered by proprietary algorithms and in-house operational solutions. Le Tote partners with hundreds of brands including French Connection, Vince Camuto, BCBGeneration, Kate Spade, Rebecca Minkoff, Calvin Klein and more. Founded in 2012 by Brett Northart and Rakesh Tondon, the Y Combinator backed company has raised venture funding from Andreessen Horowitz, Google Ventures, Azure Capital Partners, Lerer Hippeau Ventures, Simon Venture Group, Sway Ventures, Epic Ventures, Arsenal Venture Partners, Funders Club and others. For additional information, please visit www.LeTote.com or download the iPhone app. 

Mall Clothing Store Directory

What happens when you get tired of shopping for clothing online?  Well, that would mean that it is time to venture out into the real world.  Must be time to shop at actual clothing stores.  Yes, visit an actual real building rather than shop in your own little virtual reality. 

Most likely, you are already aware of your favorite local shopping destinations.  However, it is important to keep in mind that fashion companies come in and out of business from time to time.  The fashion landscape at the mall changes now and then.

If you want to find out which stores are currently in your local mall, you may want to search through the clothing store directory.  You can either do this when you arrive to the mall, or you can check their online directory.  Fortunately, most of the malls are owned by large real estate companies.  Many of which are REITS (Real Estate Investment Trusts).  These companies often have directories of the stores that are within their particular mall.  Below are a few examples of clothing store directories that can be reviewed at some of the leading malls in the United States.

The Limited Fashion Store with Limits

Yes, the Limited Stores filed for chapter 11 bankruptcy protection with the plans to sell assets as well as its brand name.  According to a Wall Street Journal article written by Lillian Rizzo and Peg Brickley on January 17, 2017, "But Limited was still able to snag an offer from an affiliate of Sycamore Partners for its brand name and related e-commerce assets, which will set a floor for a bankruptcy-run auction. The Limited brand will go to auction with a starting price of $25.75 million."

Here is some of what we found at their website for those of you that may be their vendor.

Limited Stores Company, LLC Case No. 17-10124
Limited Stores, LLC Case No. 17-10125
The Limited Stores GC, LLC Case No. 17-10126

United States Bankruptcy Court District of Delaware

What does this all mean?  Well, it means the following.

The following is what we unfortunately see today if you visit The Limited website at www.thelimited.com 

Yet another fashion retailer falling on hard times.

Shop for clothing and support the fashion retailers.

Biggest Neiman Marcus Sale

No, we don’t mean that Neiman Marcus is having a big sale on “some” of their luxury fashion, shoes, or accessories.  We are actually talking about this fine retailer possibly selling “everything”.  Yes, the entire operation.  It is also possible that they may be seeking a financial investment of some sort instead of an outright sale.  Who knows, maybe they want sell at all.  Below can help you do your own research on the matter.

Neiman Marcus Looking for buyer or investor: (Dallas Biz Journal; June 20, 2016) “Last week, North Texas' fourth-largest private company by revenue reported third-quarter fiscal year 2016 sales of $1.17 billion, a 4.2 percent decrease compared to sales of $1.22 billion during the same period last year. Neiman has now logged three consecutive quarters of sales dips.”  The article also mentioned, “Neiman announced in October it was delaying its IPO, with reports that market struggles for other high-end retailers led the company to put off an offering. At the time, competitors like Tiffany & Co. and Nordstrom Inc. were down more than 12 percent over the previous three months.”

Neiman Marcus Looking for a Buyer (New York Post; June 17, 2016) “Embattled luxury retailer Neiman Marcus is casting around for a buyer, or investor, The Post has learned.  Struggling under a toxic combination of a staggering $5 billion debt load and flagging sales, Chief Executive Karen Katz traveled recently to China to meet with potential buyers, according to a source familiar with the situation.”

Why Neiman Marcus Struggles And Will Not Go Public (Forbes; June 17, 2016) There are growth vehicles: CUSP, Last Call Studios, and their Internet shopping sites could all be expanded. I estimate that Internet now generates close to 30% of total sales. It increased 5% in the quarter. The company has excellent direct mail communication with customers. That means that foot traffic in stores has slowed at the same time more basic merchandise is bought by loyal customers through the e-commerce sites.

Neiman Marcus Revenue Decline (The Wall Street Journal; June 14, 2016): “Neiman Marcus Group Ltd.’s profit fell 81% on lower sales in the latest quarter as the luxury department store operator joined a long list of retailers reporting weak results.”

The following is some information that was on the Neiman Marcus press release from June 14, 2016 titled Neiman Marcus Group Ltd. LLC Reports Third Quarter Sales Results.

“Neiman Marcus Group LTD LLC today reported financial results for its third fiscal quarter ended April 30, 2016. For the third quarter, the Company reported total revenues of $1.17 billion, representing a decrease of 4.2% compared to total revenues of $1.22 billion for the third quarter of fiscal year 2015. During this same period, comparable revenues decreased 5.0% and the Company reported net earnings of $3.8 million compared to net earnings of $19.8 million for the third quarter of fiscal year 2015. Adjusted EBITDA, which is described on page 7 of this release, for the third quarter of fiscal year 2016 was $173.2 million compared to $202.6 million in the prior year.

On a year-to-date basis, the Company reported total revenues of $3.82 billion, representing a decrease of 2.7% compared to total revenues of $3.93 billion in the prior year. During this same period, comparable revenues decreased 4.2% and the Company reported net earnings of $1.1 million compared to net earnings of $47.8 million in the prior year. Year-to-date Adjusted EBITDA was $520.4 million compared to $602.7 million in the prior year.”

Clearly revenue is down, but is this much worse than other fashion retailers?  Well, we also need to consider, “do the other retailers have the same sort of debt load?”

OK, above is the all fine and dandy, but let’s take a break from learning about the financial aspects of fashion retailing and do something way more fun.  Let’s all head over to Neiman Marcus to do some shopping.  That is way more exciting than reading.  Support the apparel industry by shopping for clothing at every chance you get.

Learn more about Neiman Marcus here on Apparel Search.

You can read more about Neiman Marcus here on the Fashion Blog.  It would be a good idea to also read our blog post about Neiman Marcus possible IPO that we posted in August 2015.

Share Fashion Store Suggestions

Finding a good fashion boutique is always a thrill.  Please help us share information about the best retailers in the USA with other fashionistas.

If you have a favorite clothing boutique, shoe store, or fashion accessory retailer help us spread the news.  It's really not fair to keep all of the fun shopping experiences to yourself.  Let's try to reward our favorite shop owners by telling other people how to find them.

The truth of the matter is that our clothing store by location section has become a bit outdated.  We are anxious to improve the section so that members of the garment industry as well as consumers have an easier time locating fantastic stores that sell clothes.  You can see some of the ones we know about in our regional directory.

Clothing Stores in the Northeast

Clothing Stores in the Midwest

Clothing Stores in the South

Clothing Stores in the Western States

If you know any fab retailers that are not currently listed in our directory, you are welcome to remark about your suggestions in the comments section of this post.  Also, the next time you visit their shop, you can suggest to them to contact us to be included in our directory.

You may want to view our best fashion shopping sites page for inspiration.

Thank you for taking a few moments to think about your favorite shopping destinations.  Hopefully, we can work together to create the best way to find clothing stores.

Share Fashion Store Suggestions

Finding a good fashion boutique is always a thrill.  Please help us share information about the best retailers in the USA with other fashionistas.

If you have a favorite clothing boutique, shoe store, or fashion accessory retailer help us spread the news.  It's really not fair to keep all of the fun shopping experiences to yourself.  Let's try to reward our favorite shop owners by telling other people how to find them.

The truth of the matter is that our clothing store by location section has become a bit outdated.  We are anxious to improve the section so that members of the garment industry as well as consumers have an easier time locating fantastic stores that sell clothes.  You can see some of the ones we know about in our regional directory.

Clothing Stores in the Northeast

Clothing Stores in the Midwest

Clothing Stores in the South

Clothing Stores in the Western States

If you know any fab retailers that are not currently listed in our directory, you are welcome to remark about your suggestions in the comments section of this post.  Also, the next time you visit their shop, you can suggest to them to contact us to be included in our directory.

You may want to view our best fashion shopping sites page for inspiration.

Thank you for taking a few moments to think about your favorite shopping destinations.  Hopefully, we can work together to create the best way to find clothing stores.

Share Fashion Store Suggestions

Finding a good fashion boutique is always a thrill.  Please help us share information about the best retailers in the USA with other fashionistas.

If you have a favorite clothing boutique, shoe store, or fashion accessory retailer help us spread the news.  It's really not fair to keep all of the fun shopping experiences to yourself.  Let's try to reward our favorite shop owners by telling other people how to find them.

The truth of the matter is that our clothing store by location section has become a bit outdated.  We are anxious to improve the section so that members of the garment industry as well as consumers have an easier time locating fantastic stores that sell clothes.  You can see some of the ones we know about in our regional directory.

Clothing Stores in the Northeast

Clothing Stores in the Midwest

Clothing Stores in the South

Clothing Stores in the Western States

If you know any fab retailers that are not currently listed in our directory, you are welcome to remark about your suggestions in the comments section of this post.  Also, the next time you visit their shop, you can suggest to them to contact us to be included in our directory.

You may want to view our best fashion shopping sites page for inspiration.

Thank you for taking a few moments to think about your favorite shopping destinations.  Hopefully, we can work together to create the best way to find clothing stores.

Share Fashion Store Suggestions

Finding a good fashion boutique is always a thrill.  Please help us share information about the best retailers in the USA with other fashionistas.

If you have a favorite clothing boutique, shoe store, or fashion accessory retailer help us spread the news.  It's really not fair to keep all of the fun shopping experiences to yourself.  Let's try to reward our favorite shop owners by telling other people how to find them.

The truth of the matter is that our clothing store by location section has become a bit outdated.  We are anxious to improve the section so that members of the garment industry as well as consumers have an easier time locating fantastic stores that sell clothes.  You can see some of the ones we know about in our regional directory.

Clothing Stores in the Northeast

Clothing Stores in the Midwest

Clothing Stores in the South

Clothing Stores in the Western States

If you know any fab retailers that are not currently listed in our directory, you are welcome to remark about your suggestions in the comments section of this post.  Also, the next time you visit their shop, you can suggest to them to contact us to be included in our directory.

You may want to view our best fashion shopping sites page for inspiration.

Thank you for taking a few moments to think about your favorite shopping destinations.  Hopefully, we can work together to create the best way to find clothing stores.

Fashion Advertising Goes Crazy

I am about to point out to you a new trend in advertising that may blow your mind.  It is the concept of clothing stores driving web traffic to their competitors websites.  Am I nuts, or does that concept sound off the wall.

Fashion advertising is not what it once was?  In the past it was rather simple. Clothing companies would advertise in fashion magazines, news papers, on the radio, and billboards.  The very large apparel companies would advertise on television.

Along came the internet and the game changed.  The world of fashion advertising expanded into an entirely new realm of possibilities.   The industry continued to advertise with traditional methods, but at the same time began to advertise in ways that one would almost consider to be crazy.  

A prime example of border line insanity is the concept of clothing stores placing advertisements on their own websites for "other" clothing stores.

Below is an example of advertisements on the Macy's website March 15, 2016. Toward the bottom of this clothing retailers page they have advertisements linking to TheLimited.com, Lands End, Zulily, and others.  Although I am not an expert, I believe those other companies are competitors of Macy's.  You can click below to enlarge the image.  

Macy's is not the only fashion company taking part in such activities.  Below is a page from JCPenney March 15, 2016.  You will see toward the bottom of the image the Google ads, which potentially link viewers away to the Chadwicks, Blair, Shopsteal, and other websites.

It is important to note that the Google ads that appear on the Macy's & JCPenney website will most likely rotate to different companies.  These retailers possibly set the filters to exclude some key competitors, but I am really not sure if they actually utilize that feature.  Even if they do filter out some of the other competitive boutiques, they are clearly linking to competition as illustrated in the images above.

Let's keep in mind that other apparel retailers are utilizing similar strategies, so I am really not trying to pick on Macy's and JCP.  They are simply the first two that I noticed this evening.

Is this sort of fashion industry advertising genius or foolish?  Do you think that we need to put the marketing department into straight jackets?

The real question with this sort of advertising is, "are retailers simply grasping for earnings because they are not converting enough viewers into buyers on their own site?"  In other words, are they forced to try and earn advertising revenue because they are not making enough sales revenue?  

The concept being, some websites have tons of traffic, but are possibly not converting enough "viewers" into "shoppers" (buyers).  Rather than simply watch viewers enter the site and then leave with out any sort of earnings, it may be better to earn advertising commission by sending the viewer else where.

Is this method of earning money from a retail web site a sign of weakness or intelligence?

You may also have interest in viewing our recent article about some of the American Apparel advertisements.

Learn more about fashion marketing in our terminology section.

Thank you for taking the time to read our fashion retail blog post. Please share your thoughts on this subject in the discussion area.

Retail Fashion Industry Commentary

With 15 years working in the fashion industry and eight in finance, Gabriella Santaniello brings a unique blend of experience to discuss what is happening at the store level.  Her company, A-Line Partners, is an independent retail research firm providing the investment community with research from a stable of retail specialists who visit malls across the country on a weekly basis to identify retail trends.  Gabriella then uses the data to identify inflection points and better understand the psychology of the consumer, going beyond the spreadsheet numbers.

Gabriella appeared on several television programs when she was a Managing Director, Retail Market Research, at Wedbush Securities.

Here is a video example of her work:

http://video.cnbc.com/gallery/?video=3000160287

Gabriella was also quoted in this clothing store news article on Business Insider about people not shopping for clothes in stores. 

Learn more about A-Line Partners and Gabriella.

Thank you for taking the time to read our fashion blog post about retail industry consultant Gabriella Santaniello. We hope that you have found this news to be informative.

If you are interested in finding clothing stores, you can visit our clothing store directory section here on Apparel Search.  If you need research done on the retailers, contact Gabriella Santaniello at A-Line Partners for more information.

If you have comments or questions, please add your thoughts in the discussion area below.

Clothing Store Fulfillment Techniques

The internet has created great benefit, but it has also created great disruption for traditional brick & mortar clothing stores.  As these stores learn to react to the new world that has emerged around them, they are using new techniques to combine the efforts of their online resources with their in-store resources.  Welcome to the world of SFS & BOPUS.  Do you know what these acronyms stand for?

SFS means Ship-from-store.

BOPUS means buy online, pick up in store (yes, the acronym excludes the “i” for the word “in”)

In summary these terms refer to store fulfillment.  Clothing stores are developing new ways to fulfill orders from their existing store inventory.  This allows consumers to purchase online and allows the store to take advantage of the existing inventory in their store.  SFS and BOPUS can allow fashion retailers to sell product from their store rather than from a warehouse, DC or fulfillment center.

Ship-from-store basically means that when a consumer places an order the retailer can pull product from the hanger or store shelf and process the order from the stores existing inventory.  The store will then ship the clothes, footwear, or accessory to the consumer.

Buy online, pick up in store allows the consumer to shop online and the store will hold the merchandise for the shopper to pick up the merchandise in the store.  This has the benefit of allowing a shopper to save on freight expense.  This may also provide the added benefit of getting product faster if it is needed urgently.  This method actually provides the retailer with two options.  They can use inventory that currently exists in their store or they can ship product to the store from their warehouse.  If they have freight moving to their store from their own trucks, it may not add any freight cost bringing the merchandise from their own warehouse to the store.  The retailer really should list whether or not the units are currently in the store or if they are on the way so that the consumer knows when the merchandise if officially available for pick up.

Mom & pop stores and large retailers need to continue to adapt to new shopping methods.  This is the only way to continue as a successful apparel retailer in the modern world.  It is not enough to simply stay up to speed on the latest fashions.  Retailers also need to stay up to date on the latest trends in retailing.

You may also want to read about how fashion stores use beacon technology to stay ahead of the curve.

Thank you for taking the time to read our apparel industry blog post. We hope that you have found this news to be informative. If you have comments or questions, please add your thoughts in the discussion area below.

If you are tired of reading you may want to take a break and shop for clothes on Amazon.

Clothing Stores in New York for Holiday Shopping

Are you heading to New York to view the enormous Rockefeller Center Christmas tree?  Or possibly you will be visiting the ice skating rink at rock center or central park.  Obviously there are tons of great things see and do in NYC during the holiday season.  When in NY, don’t forget to spend time shopping for clothing and fashion accessories.

Save time to shop Fifth Avenue, Madison Avenue, Soho, and more.

Barney’s New York: Address: 660 Madison Ave Phone (212) 826-8900

Bloomingdales: Address: 504 Broadway Phone (212) 729-5900

Tiffany’s: Address: Fifth Avenue and 57th Street New York

Macy’s Herald Square: Macy's Herald Square, originally known as the R. H. Macy and Company Store, is the flagship of Macy's department stores, located on Herald Square in Manhattan, New York City

You can find additional retailers from the directory and guide links below.

Fashion Stores in NYC

Shopping Destinations in New York

New York City Holiday Guide (NY Magazine)

If you wish to venture outside the city limits, you can also check the retail directory section to find additional shopping locations.  The New York clothing store page contains information about the city as well as the rest of the state.  It would be a good idea to also check the by location section to find even more resources relevant to clothing stores in the state of New York.

Learn more about what is happening around Rockefeller Center.

Find more information at the New York website.

You can also search Google or Bing for additional great shopping destinations.

Thank you for taking the time to read our fashion blog post. We hope that you have found this news to be informative. 

We hope this article helps you answer the question of where to shop for clothing in New York.

If you have comments or questions, please add your thoughts in the discussion area below.