Kohl’s, a US retailer, has announced a partnership with WHP Global, the owner of Babies R Us, to bring baby gear and furniture to approximately 200 of its stores across the country. The first Babies R Us shops will open in August and expand to more stores in the fall. These dedicated shops will range from 750 to 2,500 square feet and will be set up next to the baby merchandise already carried by Kohl’s. The partnership aims to attract younger customers and serve as a potential growth driver for Kohl’s, which has been experiencing declining sales. Former CEO Michelle Gass left the company in late 2022 and was replaced by Tom Kingsbury. Following the announcement, Kohl’s shares jumped 2.9% to $27.98. [278fb722]
In other retail news, Express Inc., a US retailer, has filed for Chapter 11 bankruptcy. The brand, which imports around $100 million worth of readymade garment (RMG) products annually from Bangladeshi manufacturers, intends to close more than 100 stores. The retailer listed assets and liabilities in the range of $1 billion to $10 billion. As part of the bankruptcy process, the company will close approximately 95 Express retail stores and all of its UpWest stores. The company operates about 530 Express retail and Express Factory Outlet stores in the United States and Puerto Rico and around 12 UpWest retail stores. The bankruptcy filing was expected earlier this year. According to industry insiders, about 12-14 top Bangladeshi RMG manufacturers have business with this iconic brand. Their annual import value is about $100 million. Shovon Islam, managing director of Sparrow Group, one of the manufacturers that exports RMG goods to Express, said the brand informed them they are going to file Chapter 11 for restructuring their business. The American retailer said it has received a nonbinding letter of intent from a consortium led by brand management firm WHP Global. Other members of the consortium include mall landlords Simon Property Group and Brookfield Properties. [dc2aba74] [61ba22f6]
In a separate development, Walmart has partnered with American Giant, the largest American-made clothing brand, to sell high-quality, American-made t-shirts in 1,700 Walmart locations across the United States. The collaboration aims to demonstrate that high-quality, American-made clothing can be produced at competitive prices. Walmart plans to source $350 billion worth of products made, grown, or assembled in the United States. The partnership with American Giant is part of Walmart's broader initiative to bring manufacturing back to the U.S. market and challenge the perception that domestic manufacturing is economically unfeasible. The collaboration will launch by offering a 100% t-shirt for the 4th of July holiday for $12.98. [c64b0a25]
These partnerships reflect the efforts of retailers to expand their product offerings and boost sales by teaming up with established brands in the market. By collaborating with Babies R Us and American Giant, Kohl’s and Walmart are aiming to attract new customers and tap into new markets. The partnerships also align with the retailers' strategies to bring in high-quality products and provide customers with a wider range of options. As the retail industry continues to evolve, such partnerships can help retailers stay competitive and meet the changing demands of consumers. [278fb722] [dc2aba74] [61ba22f6] [c64b0a25]