Hey Friends,

How nice is a long weekend to reset? Memorial Day is a top 3 holiday for me. Planning is easy, stress is minimal, and in the retail world……There’s always a sale going on, which in my circumstance is particularly nice trying to furnish a new house.

Let’s talk about some stuff….The U.S. box office pulled in an estimated $326 million over Memorial Day Weekend, setting a new record for the holiday. Shares of major theater chains surged on the news—AMC jumped over 20%, Marcus Corporation rose 8%, and Cinemark climbed 2.5%. Each reported their best Memorial Day ticket and concession sales ever. Industry analysts predict a strong summer ahead, potentially topping $4.2 billion, a welcome rebound after a disappointing 2024 season.

Nordstrom has officially delisted from the New York Stock Exchange after completing a $6.25 billion all-cash acquisition by the Nordstrom family and Mexican retailer El Puerto de Liverpool, valuing shares at $24.25 each. The family retains a controlling stake, and Erik and Pete Nordstrom are reuniting as co-CEOs, marking a return to the company’s leadership roots.

Key Points:

• The move marks the retailer’s successful transition to a private company, following a previously failed attempt eight years ago.

• Nordstrom is now better positioned to operate without Wall Street pressure, with strong performance in both full-line stores and its off-price Rack business.

• Analysts see the brand as a likely market share gainer from Saks and Neiman Marcus, noting Nordstrom’s consistent positive comps and top-tier luxury store traffic growth, per Placer.ai and TD Cowen.

• The company’s low reliance on private-label goods has helped it avoid heavy tariff exposure, making it more resilient in the current trade climate.

Erik Nordstrom called the privatization an “important milestone,” saying the company remains focused on customer service and curated merchandise as it enters its next chapter.

The New York Knicks’ playoff surge is delivering big for the city, generating an estimated $195 million in economic activity from seven home games at Madison Square Garden. If the team reaches the NBA Finals for the first time since 1999, that figure could rise to $637 million. Mayor Eric Adams cited spending on hotels, tickets, merchandise, bars, and restaurants, plus indirect economic impacts, as key contributors.

This Week in Retail Therapy

Buying furniture sucks. I’m not sure if many of you are like me, but the process is typically done sight unseen from a digital mood board my wife and I have created. You spend an exorbitant amount on delivery and shipping to……….wait. There has often been a huge communication gap, but this week, I experienced something that felt disruptive and drove an experience that is hard to match. We ordered a couch, in fact because of our first experience, we ordered two couches, from Crate & Barrel.

Crate & Barrel’s feature that allows you to schedule delivery at the point of purchase is a game changer for home retail. By allowing shoppers to lock in a delivery date during checkout—rather than waiting for a follow-up—Crate & Barrel removes friction from the buying process, builds trust, and meets the growing demand for convenience and control. It’s a small tweak with major upside in customer satisfaction and operational efficiency.

Within minutes of my purchase, I was immediately contacted by Ryder, their supply chain partner, to be notified I would be coordinating with them in the process. This two minute engagement saved me weeks of headaches, what-ifs and annoyance. I was also able to add additional contact details for family members who could accept the delivery on my behalf. Everyone in retail is trying to 1: reducing friction and 2: increase transparency. For shoppers, it means less back-and-forth, better planning, and fewer surprises. For Crate & Barrel, it could lead to more conversions, fewer abandoned carts, and smoother logistics coordination. In a category where delivery timing is often a pain point, this level of upfront clarity is a differentiator—and one that could raise the bar for competitors.

Retail investors showcased their growing influence on Monday, swiftly stepping in after Moody’s downgraded U.S. credit late Friday. By midday, they had bought a record $4.1 billion in stocks, reversing an early 1% drop in the S&P 500. Retail traders accounted for 36% of total trading volume, helping the index recover to flat by the afternoon.

Key Details:

• Top inflows: Tesla ($675M) and Palantir ($439M).

• A “never again” mentality is driving retail traders to buy during dips, avoiding past mistakes of selling too early.

• Institutional investors largely stayed on the sidelines, signaling a shift in market dynamics.

Implications:

• Retail investors are executing the “buy the dip” strategy with growing confidence.

• Their actions can now meaningfully steer market direction and may contribute to increased volatility.

• If fundamentals stay strong, institutional investors could return, amplifying market gains.

Last week, Walmart announced plans to cut approximately 1,500 corporate jobs as part of a broader restructuring initiative aimed at streamlining operations and enhancing decision-making efficiency. The layoffs will primarily impact roles within Walmart's Global Technology division, U.S. e-commerce fulfillment centers, and the Walmart Connect advertising unit.

Company executives, including Chief Technology Officer Suresh Kumar and U.S. President and CEO John Furner, communicated that these changes are intended to reduce complexity, accelerate innovation, and align with Walmart's strategic growth priorities. While some positions are being eliminated, Walmart is also creating new roles that support its evolving business objectives. In the context of ongoing economic pressures, including tariffs on imported goods, Walmart has indicated that it may raise prices on certain products. Despite these challenges, the company emphasizes that the job reductions are not directly related to tariff impacts but are part of a strategic effort to adapt to the rapidly changing retail landscape.

More Klarna users are falling behind on their “buy now, pay later” (BNPL) loans, the company said this week, echoing similar findings from Bankrate and LendingTree. The trend highlights growing financial strain among U.S. consumers, as total household debt hits a record $18.2 trillion.

Analysts link the rise in delinquencies to worsening economic conditions for some Americans, especially with the resumption of federal student loan collections under the Trump administration. The data signals potential risks in the short-term lending sector as financially stretched consumers struggle to keep up with installment payments. We’ll report more on this later in the week….

Victoria’s Secret & Co. has implemented a "poison pill" strategy to prevent a potential hostile takeover by Australian investment firm BBRC International, led by billionaire Brett Blundy. This move follows BBRC's accumulation of approximately 13% of Victoria's Secret's outstanding shares, making it the company's second-largest shareholder.

The poison pill, formally known as a limited-duration shareholder rights plan, was adopted to protect the interests of all shareholders. Under this plan, if any investor acquires 15% or more of Victoria's Secret's common stock, other shareholders will have the right to purchase additional shares at a 50% discount. This mechanism effectively dilutes the acquiring party's stake, making a takeover more costly and less attractive.

BBRC International has a history of investing in retail companies and recently launched its own lingerie brand, positioning it as a direct competitor to Victoria's Secret. The company's increasing stake and competitive ventures raised concerns about its intentions, prompting Victoria's Secret to take defensive action.

Additionally, Victoria's Secret accused BBRC of previously violating U.S. antitrust laws by failing to file necessary acquisition documents. BBRC has since made corrective filings, allowing it to purchase up to 49.99% of stock after a regulatory waiting period.

The poison pill plan is set to expire in one year, providing Victoria's Secret with time to stabilize its operations and protect against unsolicited acquisition attempts.

Marks & Spencer (M&S) has reported that a sophisticated cyberattack in April 2025 will result in an estimated £300 million ($400 million) reduction in operating profit for the 2025/26 fiscal year. The attack, attributed to the hacking group "Scattered Spider," began around Easter weekend and forced the retailer to suspend online shopping services, particularly affecting its fashion, home, and beauty departments. The disruption is expected to continue until at least July, as M&S works to restore its systems and customer services.

In addition to the suspension of online sales, the cyberattack led to increased waste and logistics costs due to the necessity of manual processes in stores. Food sales suffered from reduced availability, causing empty shelves and shortages of popular items. Furthermore, M&S confirmed that some customer personal data, including names, emails, addresses, and birth dates, was compromised during the breach.

Despite these challenges, M&S reported a 6% increase in overall revenue to £13.82 billion and a 17% rise in adjusted operating profit to £984.5 million for the year ending March 29, 2025. The company remains optimistic about recovering performance in the second half of the fiscal year and is exploring cost-offsetting measures, including insurance recoveries and trading actions, to mitigate the financial impact of the cyberattack.

Fast-fashion giant Shein has announced a price drop just weeks after raising prices due to tariff pressures, signaling a strategic shift as consumer sensitivity to price grows. In a statement posted Wednesday, Shein said that although there's been “lots of chatter around tariffs,” customers “don’t need to worry about paying anything extra after checking out.”

Price Reductions: Shein said it has lowered prices across a “wide range of styles.” The company emphasized its all-in pricing model, saying, “Any outside information claiming that you have to pay tariffs separately for your SHEIN items is false.” Temu, another China-based e-commerce player, also reversed its own tariff-related price increases earlier this month, saying it plans to absorb added costs by shifting to a local fulfillment model in the U.S.

In April, both Shein and Temu raised prices in anticipation of former President Donald Trump’s proposed 145% tariffs on Chinese goods. However, a U.S.–China agreement last week paused those tariffs for 90 days, reducing immediate pressure on cross-border sellers.

According to Wunderkind, over 50% of shoppers say they'd switch brands if prices rose. Omnisend found that 30% of consumers would reduce or stop shopping on Shein or Temu if pricing increased.

This price rollback is a critical move to retain U.S. consumers, who are drawn to Shein and Temu for ultra-low prices. While the companies did not explicitly credit the tariff pause, their timing suggests a response to both regulatory relief and customer price sensitivity. Maintaining affordability amid trade volatility will be key for both platforms’ continued U.S. growth.

David’s Bridal is rebranding itself with a new store concept called “Diamonds & Pearls,” aiming to shed its image as “your mother’s bridal store.” The initiative is part of a broader digital-first transformation under new CEO Kelly Cook.

The Diamonds & Pearls stores feature fewer SKUs—about one-third of a traditional location’s inventory—but offer a curated, boutique experience with a mix of affordable luxury and couture. Shoppers can browse an “endless aisle” via in-store digital tools, combining high fashion with high tech.

The retailer is also expanding its product offerings, recently partnering with Perry Ellis and Cubavera to launch menswear, including suits and summer styles.

This reinvention follows what the company calls the biggest strategic shift in its 75-year history, as it modernizes both its shopping experience and brand positioning.

Some additional details have been uncovered as it partains to Ashley Buchanan’s departure from Kohl’s. The probe found Buchanan used his influence to secure favorable deals for Holt’s wellness coffee startup, Incredibrew, and to push through a consulting contract with BCG, where Holt was an advisor at the time.

Key Findings:

• Buchanan facilitated the rollout of Incredibrew products to hundreds of Kohl’s stores without disclosing his personal relationship with Holt.

• He also approved a multimillion-dollar contract with Boston Consulting Group, which later cut ties with Holt once the relationship was revealed.

• Their personal and professional ties span years, dating back to their Walmart tenure, and continued as both climbed executive ranks in U.S. retail.

• Their relationship raised red flags, especially after Incredibrew landed in Michaels and Kohl’s—stores where Buchanan held influence.

Fallout:

• Kohl’s Chairman Michael Bender, a former Walmart colleague of both, stepped down and is now serving as interim CEO.

• Holt was quietly ousted from Bed Bath & Beyond in June and is now focused on Incredibrew, denying any wrongdoing.

• The scandal has left Kohl’s leadership in flux and drawn scrutiny from investors amid concerns about governance and oversight.

That’s all folks……have a great week