10 Ideas in Retail That Will Revolutionize Shopping

Chris Kreinczes of Springwise – a network of entrepreneurs and innovators, which serves as a hub of new business ideas – has compiled a list of 10 new retail ideas he predicts “change the way you shop.” The winning concepts, which ran in Forbes earlier this year, are linked by “their desire to make the shopping experience more enjoyable,” and, according to Kreinczes, “have taken place at the heart of the product or shopping experience” – no last-minute, tacked on promotions made the list.

Resource URL: https://www.sourcingjournalonline.com/10-ideas-in-retail-that-will-revolutionize-shopping/

WTO Report: Developing World Will Dominate Textile Exports

According to the World Trade Organization’s (WTO) most recent forecasts, developed nations like the US are likely to be replaced by emerging economies like China as the principal exporters of manufactured goods.

The WTO’s “2013 World Trade Report” predicts the continued, vigorous expansion of international trade in manufactured products, defying the conventional wisdom that a lagging manufacturing industry is gradually losing ground to the selling of services. Furthermore, the report anticipates that textiles and apparel will “account for over two-thirds of world exports and to increase by a factor of almost 4.5 in volume by 2035.”

Despite impressive growth in the services sector as well, including banking, transportation, travel, and insurance, services are expected to comprise no more than 19 percent of all global exports, a meager uptick from 17 percent in 2012. Meanwhile, manufacturing will account for 68 percent of world exports.

Also, the WTO projects that the continued enlargement of the global export market will be propelled by increasingly aggressive developing economies. China will lead the pack, gobbling up 29 percent of the market, a considerable improvement on its 19 percent share in 2012. Conversely, the US’s share of the export market is foreseen losing ground, dropping from 16 percent to 8 percent. The European Union’s (EU) slice of the pie is also predicted to contract significantly, shrinking to 11 percent from 20 percent.

The report’s outlook presupposes both sustained global economic growth and the further liberalization of international trade. While the WTO criticized the EU for several trade abuses,  including the violation of anti-dumping regulations, it still praised it for eschewing protectionist measures designed to shield it from foreign competition. A separate report on the EU’s trade practices remarked, “The fact that there has not been a retreat into protectionism is in itself a positive sign.”

Chief WTO economist Patrick Low attributed the tectonic shift in the export market from the developed to the developing world to the changing landscape of business. “Global supply chains have changed the patterns of international trade.”

Resource URL: https://www.sourcingjournalonline.com/wto-report-developing-world-will-dominate-textile-exports/

Saks Inc. to Sell for $2.4 Billion

Hudson’s Bay Company, parent of luxury retailer Lord and Taylor, plans to buy Saks for $16 a share, for a total deal of around $2.4 billion.

The purchase price is a 5 percent premium over the company’s Friday closing price of $15.31. Saks’ stock was up almost 4 percent Monday on the news.

The deal has not been approved by Saks’ shareholders, but, assuming they approve, should be concluded by the end of the year. Saks had sales of $3.2 billion in 2012, against sales of $4.1 billion for Hudson’s Bay.

The buyout will merge three big names in retail, featuring luxury, mid-tier, and outlet sectors. The company will have roughly 320 stores, including 179 department stores, 72 outlets, and 69 home stores in the U.S. and Canada. 

‘‘We are excited about what this opportunity and being part of a much larger enterprise can mean for the future of the Saks Fifth Avenue brand,’’ Saks Chairman and CEO Steve Sadove said in a statement.

Saks will continue to be run as a separate company, based in New York City, with its own merchandizing, marketing, and store operations.

Hudson’s Bay said that it plans to combine back office facilities and distribution centers to save around $100 million in annual operating costs. It will also look at possible options for the company’s real estate portfolio, which will include a long list of prime retail locations.

Saks Fifth Avenue is a destination store for travelers from around the world because of its sophisticated portfolio of international designers. In allowing management to stay on and not merging operations, Hudson’s Bay hopes to preserve the design base that has built the Saks brand.

The company now has a 40-day period to seek out third party bids, which could lead to a leveraged buyout. As a result of the risk of debt acquisition, Fitch Ratings placed Saks Inc. on “rating watch negative.” It expects to upgrade the rating once the Hudson’s Bay deal is completed.

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Resource URL: https://www.sourcingjournalonline.com/saks-inc-to-sell-for-2-4-billion/