Daily LInks
1. Burberry Aims to Reduce Markdowns to Shore Up Profitability: In addition to cutting sales, Burberry aims to upgrade its leather-goods pricing to the levels enjoyed by rivals Prada and Gucci. Like Prada, Burberry has also been trying to get a stronger grip on its product pricing by reducing sales to third-party retailers to reduce inventory in the market. – Read More on Bloomberg
2. The Surprising Upside of Expensive Products That Don’t Sell: When dealing with recessions or drastic declines in sales, companies are often tempted to increase profits by cancelling low-performing products from their portfolios. But sales numbers aren’t everything, and this isn’t always the best way forward. We have identified a counter-intuitive — yet potentially highly-beneficial — alternative: Leveraging high-priced products that don’t sell much as a competitive advantage. – Read More on HBR
3. RETRO READ: How Do You Sell Luxury in a Recession? You Ditch the Logos. “Consumers are looking for discreet, timeless purchases,” Gucci CEO Robert Polet said at the time. They “are not keen on anything that could fall out of fashion. People feel guilty about that.” – Read More on TFL
4. EU charges against Amazon could accelerate Big Tech antitrust scrutiny in the US: European regulators’ decision to bring antitrust charges against Amazon.com Inc. could be a harbinger of developments in the U.S., legal and industry experts say, particularly since Amazon faces similar allegations in the U.S., where lawmakers have alleged that the company is undercutting small businesses by using data from third-party sellers to inform its own products. – Read More on S&P Global
5. Online Luxury Retailer Mytheresa Is Said to Plan U.S. IPO: The company, which is backed by Ares Management Corp. and Canada Pension Plan Investment Board, is taking advantage of a boom in online sales as coronavirus lockdowns keep shoppers at home. It plans to seek a valuation of about $1 billion to $1.5 billion. – Read More on Bloomberg
6. RELATED READ: Neiman Marcus v. Marble Ridge Capital – The Story Behind the $1 Billion-Plus Legal Battle. Marble Ridge set forth various claims of fraud in connection of Neiman Marcus’ transfer of the Mytheresa assets in a scheme it orchestrated to benefit Ares and CPPIB, and “hinder, delay and defraud [Neiman Marcus’] creditors.” – Read More on TFL
7. Revlon staves off bankruptcy after clinching last-minute debt deal: Revlon has been pulled again from the brink of chapter after billionaires Ron Perelman and Carl Icahn ended a stand-off over the cosmetics firm’s debt. Revlon said that it had secured commitments from enough bondholders to stave off bankruptcy, with approximately $236m tendered, or just shy of 69 percent of the outstanding debt. – Read More on the FT
