Authentic Brands Group Bids On Barneys -10/21/19

From the Simplr studios in San Francisco, this is your daily briefing.  

Introduction

With your E-Commerce Retail Briefing for today, Monday, October 21st, I'm Vincent Phamvan.

The future of Barneys still remains unclear, but a bid from Authentic Brands Group could see the luxury retailer end up in Saks Fifth Avenue stores. The plan would entail licensing the brand to Saks Fifth Avenue. Saks would install Barneys departments in some of its stores, as well as run its website.  

First, here are some retail headlines.

Venmo Partnering with Synchrony to Launch Credit Card  

Mobile payment service, Venmo, is partnering with Synchrony Financial to launch a credit card in 2020. Venmo’s parent company, Paypal, announced the new partnership in a press release. The deal deepens PayPayl’s 15-year relationship with Synchrony and allows the bank to diversify outside the retail space. Synchrony has also co-branded credit cards with Amazon, Lowe’s, Banana Republic, and JCPenney.

b8ta Announces New Concept

b8ta announced a new concept called Forum that pushes its focus beyond electronics and devices and into fashion and lifestyle. Its first Forum location opens November 15th on Melrose Avenue in Los Angeles according to a company press release. The company, which calls itself a retail as a service platform, is letting each brand partner design its own space and curate its brand experience, including product launches, community, and VIP events. b8ta leverages store design and data to showcase goods, many from little-known makers, in its own stores and in other retailers' spaces, notably at Macy’s which invested in the company last year. b8ta said it chose its Forum partners based on their focus on ethical and sustainable production, including Just Human, Tact & Stone, Poplinen, and PROCLAIM.

Five Below Led Series A Funding Round for Nerd Street Gamers

Five Below led a Series A funding round for esports infrastructure company, Nerd Street Gamers. Five Below, along with Comcast, SeventySix Capital, Elevate Capital, and George Miller, invested $12 million in the company. As part of the deal, Five Below and Nerd Street Gamers will build 3,000 square foot Localhost spaces connected to Five Below stores and will host live, in-person events with professional-level equipment. For Five Below, the move appears to be about attracting more younger customers. The retailer’s funding of Nerd Street Gamers isn’t the only investment the company has made recently. Earlier this year, Five Below worked with BRP on revamping its in-store tech capabilities. The retailer is performing well and in the second quarter, CEO and President, Joel Anderson, said the company could open as many as 150 new stores this year.

Authentic Brands Group Bids On Barneys

Authentic Brands Group, the licensing company that owns Aeropostale and Juicy Couture, has put in a $271 million bid to buy Barneys out of bankruptcy, according to court filings. The plan would entail licensing the brand to Saks Fifth Avenue. Saks would install Barneys departments in some of its stores, as well as run its website.  

In bankruptcy, Barneys has whittled down its size from more than ten namesake stores to five. While experts have said Barneys’ brand in the luxury space remains strong, the future of its remaining stores has been in question. Authentic Brands would still try to renegotiate the leases for some of its best properties as part of the deal, including staying in Madison Avenue but downsize its presence. Barneys filed for Chapter 11 protection in August and a bankruptcy auction is scheduled for later this month.  

Putting Barneys inside Saks would echo a move it and other department stores, including Macy’s, have taken to add variety to their shopping experiences. Saks experiments with its stores in recent years include creating wellness centers. The brand is one of the brighter spots within parent Hudson’s Bay Company’s portfolio.  

Closing

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Thanks for listening to the latest episode of the Retail E-Commerce Briefing. See you tomorrow.