The Hill
Retailers are not taking kindly to President Donald Trump’s calls for the U.S. Postal Service to increase delivery rates for packages. An Amazon-led group calling itself “The Package Coalition” is spending $2 million, including an ad on Fox News’ “Hannity,” one of the president’s favorite shows. It does not single out Trump by name but says the proposed 400% rate increase would constitute a “massive package tax” that would affect small businesses and individuals who receive prescription drugs through the mail.
The New York Times
Neiman Marcus filed for bankruptcy -- but is not liquidating and plans to restructure. The company is “the first major department store group to file for bankruptcy protection during the coronavirus pandemic. It’s a stunning fall that follows the collapse of Barneys New York late last year and comes as shadows gather over chains like Lord & Taylor and J.C. Penney,” per The New York Times.
Sourcing Journal
John Varvatos Enterprises Inc. filed a voluntary Chapter 11 petition on Wednesday in a Delaware bankruptcy court. “The firm’s filing marks a grim chapter in fashion as insolvencies pile up under pandemic pressure,” reports Sourcing Journal. The brand follows that of men’s online customer clothier J. Hilburn and J. Crew earlier this week, premium denim brand True Religion last month. and Laura Ashley and Debenhams.
Vox
Airbnb leadership told employees Tuesday that the company’s revenue would be halved and that it would terminate about 1,900 of its 7,500 staff members. The company was “
seen until recently as one of Silicon Valley’s most financially secure unicorns,” per
Vox. “It’s an ominous sign for the tech economy.” The decision “serves as a stark reminder of the coronavirus’s toll, which has hamstrung the global economy, forcing almost all startups to consider cuts and particularly wrecking the travel industry.”
Chain Store Age
L Brands plans to separate Victoria's Secret as a standalone company following the termination of its agreement to sell the business to Sycamore Partners. The deal was announced in February, but after COVID-19 prompted the temporary closing of stores, tensions between the two companies flared. L Brands accused Sycamore of “buyer’s remorse” in trying to back out of the deal, reports Chain Store Age.
USA Today
Spirit Airlines is the latest carrier to require passengers to wear face masks to prevent the spread of coronavirus. Passengers on the budget carrier will have to bring their own masks, unlike most of the other airlines that are supplying them. The policy begins May 11, the same day as American, Southwest and Alaska. United, Delta and JetBlue already are requiring them. Frontier Airlines will require masks starting May 8.
Supermarket News
Dairy farmers nationwide are dumping millions of gallons of milk due to plunging demand amid the coronavirus crisis. Kroger and Publix have stepped up to help save the waste. Kroger will process and donate about 200,000 gallons of additional milk to Feeding America food banks and community groups through the end of August. Publix is also
purchasing produce and milk from farmers impacted by the pandemic and redirecting it to food-insecure families across the Southeast.
Market Watch
J.Crew Group Inc. filed for bankruptcy protection on Monday, which led the brand to go viral on Twitter as one of the first major retail casualties of the coronavirus outbreak that has essentially shut down the U.S. economy. “And, as should be expected, many Twitter users had snarky reactions to the news, including posts mocking the brand’s signature preppy aesthetic, or tweets arguing that the countless small, family-owned businesses which are hanging on by a thread right now should be considered the bigger tragedy,” according to MarketWatch.
Chicago Tribune
That didn’t take long. Branded face masks promoting everything from fast food restaurants to TV shows and sports teams are now available. New York-based branding strategist Peter Shankman said branded face masks, if "done the right way,” will generally be perceived in a positive light, according to the Chicago Tribune. “Wearable brands have become a part of our culture,” Shankman said.
Chain Store Age
Chico’s FAS begins a three-part store reopening plan on May 4. The women's apparel and accessories retailer, whose brands include Chico’s, White House | Black Market and Soma, will begin with the fulfillment of national orders through physical locations using store inventories. “The second phase will feature buy-online pick-up-in-store, including contactless curbside pickup,” according to Chain Store Age. “The third phase will see the introduction of a new shop-by-appointment service for all banners. Store openings will be consistent with local health and safety guidelines and regulations.”
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