Luxury, Retail, FMCG and Media News & Trends: Aug Week 3

1. Business Deals

i. Canada’s Circle K Makes Bid for Buyout of 7-Eleven Parent

Initially a franchise imported from the US to Tokyo 50 years ago, the success of 7-Eleven’s Japanese subsidiary eventually led to it buying out its American parent. Now, the tables could turn again with Canadian retail giant Alimentation Couche-Tard’s potential $86 billion bid to acquire Seven & i Holdings, 7-Eleven’s Japanese parent company. The potential transaction could make it the largest-ever Japanese target of a foreign buyout.

Takeaway: This development highlights how Japan’s mergers and acquisitions (M&As) landscape has become more open to foreign takeovers, with recent guidelines encouraging boards to prioritise shareholder value over national sentiment. However, strong resistance is expected with the foreign takeover of 7-Eleven, given concerns about the potential dilution of the beloved Japanese convenience store experience.

Japanese consumers also often criticise the limited choices and subpar service of overseas retail stores. As such, Couche-Tard would face the same significant challenges numerous global retailers struggle with in Japan: Failing to win over the discerning Japanese market despite their initial fanfare and cost-cutting strategies, which are typically successful elsewhere.

For Couche-Tard to succeed in this acquisition, they would need to improve operations and achieve the scale economies they seek. However, this could compromise the unique, small luxuries that make Japan’s “konbini” experience popular with both locals and tourists.

Should a formal bid emerge, regulatory scrutiny is also expected. However, Japanese companies cannot rely on that as a safeguard. This bid is a clear signal: enhancing corporate value is no longer a luxury but an urgent priority for survival.

Read the full article about Couche Tard’s buyout proposal.

ii. UCG Buys Steve Madden’s Greats and Invests in Böhme

Unified Commerce Group (UCG) has acquired Greats Inc., a direct-to-consumer sneaker brand previously owned by US fashion and apparel maker Steven Madden Ltd. Concurrently, it is also investing in womenswear retailer Böhme. Although financial terms were not disclosed, UCG will take over the operations of Greats, with Steven Madden having a stake in UCG.

Read the full article about UCG’s acquisition of the Greats.

iii. Heirs of the Families Behind Luxottica and Chanel Form Investment Alliance

Recently, young heirs from two major European luxury families have formed an alliance in the investment sector. LMDV Capital, the family office of Leonardo Maria Del Vecchio, the heir of the founding family of Italy’s eyewear giant Luxottica, announced its plan to invest as a permanent partner in 1686 Partners. 1686 Partners is a private equity fund founded by David Wertheimer, the fourth-generation heir of the Wertheimer family, who owns the French luxury brand Chanel. Concurrently, 1686 Partners will also take a minority stake in the food service company Triple Sea Food Holding, which is 78% owned by LMDV Capital. This holding company operates three restaurant brands: Vesta, Casa Fiori Chiari, and Trattoria del Ciumbia.

In June last year, LMDV acquired a 72.5% stake in Società Acqua e Terme Fiuggi, an 800-year-old Italian mineral water company. His investments span across real estate, film production, racing, and social media industries. Recently, Leonardo Maria Del Vecchio also invested in the Parisian emerging bespoke fashion brand Martel, which is set to launch later this year. 1686 Partners was founded to support companies aligned with sustainability and innovation values. Recently, the fund raised over $110 million to invest in innovative companies in the fashion, jewellery, beauty, and lifestyle sectors. Based on a statement last December, 1686 Partners’ first three investments were made in a European ski apparel brand, a luxury watch retailer, and a company specialising in inventory management and demand forecasting for brands and retailers.

Read the full Chinese article about LMDV’s alliance with 1686.

iv. Chanel Acquires a 25% Stake in Swiss Watch Maker MB&F

Chanel acquired a 25% stake in the independent Swiss watch brand Max Büsser & Friends (MB&F). MB&F is known for its innovative and intricate designs that resemble animals. The company will continue to operate independently. Its founder, Maximilian Büsser, will retain a majority stake of 60%, while the R&D and production head, Serge Kriknoff, will retain 15%. Both executives will continue to serve the company.

Takeaway: This deal provides MB&F with financial security and long-term stability. For Chanel, which is currently among Switzerland’s 25 biggest watchmakers, the investment enhances its watchmaking credibility and expertise. The move follows the brand’s earlier stakes in other independent Swiss watchmakers.

Read the full article about Chanel’s stake in MB&F.

v. Regent Buys Swiss Luxury Bally from Reimann Family’s JAB

Swiss luxury brand Bally has a new owner. JAB, the investment firm owned by Germany’s Reimann family, sold Bally to US-based Regent, adding the 173-year-old label to a portfolio that includes brands like Club Monaco and Escada. Under JAB’s ownership, Bally saw global expansion and a 20% sales increase in 2023. Bally will remain under the leadership of CEO Nicolas Girotto and creative director Simone Bellotti, who recently revitalised the brand’s creative direction with a positive market reception.

Read the full article about Regent’s acquisition of Bally.

vi. Lolë Buys Sanuk from Deckers

Deckers sold its footwear brand Sanuk to Lolë Brands, a company known for athleticwear. Financial details of the deal were not disclosed. Katie Pruitt, previously the brand director for Sanuk at Deckers, will continue leading the brand at Lolë as Vice President and General Manager. Under Lolë’s ownership, the brand will focus on direct-to-consumer and wholesale strategies to drive growth. Lolë also plans to strengthen Sanuk’s consumer-centric products and marketing and explore new categories to expand its customer base in the US. Sanuk will move its operations to Los Angeles after the acquisition. In Deckers’ recent earnings report, Sanuk’s declining performance was highlighted, with a 28.4% drop in net sales year over year.

Read the full article about Lolë’s acquisition of Sanuk.

2. Business Expansions

i. Uniqlo to Open Over 1k Stores in Both China and Asia

Uniqlo announced plans to open 20 new stores in China between September and October, including its first store in Sanya and another 1,000 across the rest of Asia. This move follows its Japanese parent company’s earlier announcement to close up to 50 underperforming stores in China. However, Uniqlo’s current strategy involves opening 50 new stores annually, which creates a net gain of 30 stores.

Concurrently, Uniqlo will also focus on strengthening its brand presence through localised store management while elevating Uniqlo’s global brand image by positioning it alongside luxury names through flagship stores in prestigious locations like New York and Paris.

Takeaway: The expansion in Asia will allow Uniqlo to capitalise on the rapidly expanding middle class in the region. It also indicates the brand’s confidence in the rising domestic travel following China’s post-COVID reopening and the growth of lower-tier cities.

Read the full article about Uniqlo’s plans for China.

ii. Hermès to Concentrate Future Store Openings in China and the US

Hermès is expanding into Nashville’s Wedgewood-Houston (WeHo) neighbourhood with plans to open an 8,500-square-foot store in the fall of 2025. This will be the brand’s first location in Tennessee. The new store will be housed in the historic May Hosiery Mills campus, a site being revitalised by AJ Capital Partners and a neighbourhood that has become a trendy hotspot with a surge of new businesses. Hermès announced its intention to concentrate future store openings in the US and China.

Read the full paid article about Hermès plans for new stores.

iii. Walmart Sells Stake in JD.com

Unlike many Western brands that are struggling or exiting China, Walmart has managed to grow its market share, even becoming the largest hypermarket operator in the country. The performance was driven by its Sam’s Club membership model, which focuses on premium goods. The model was met with overwhelmingly positive response, with half of the company’s sales in China now coming from online channels. This enabled Walmart to develop its e-commerce app, which is uncommon in China, where most major Western retailers typically depend on local platforms like Alibaba’s Taobao and Tmall.

Walmart recently sold its stake in JD.com, signalling confidence in its ability to operate independently. The company’s strategy focuses on scaling its own digital capabilities while maintaining growth in key international markets like China, India, and Mexico.

Takeaway: Walmart’s success in China highlights the importance of localising strategies.

Read the full article about Walmart’s performance in China.

iv. Three Sheep Group Expands Into Hong Kong

Three Sheep Group, founded by top Chinese influencer Zhang Qingyang (Crazy Xiaoyangge), has expanded into Hong Kong by renting a 5,570 sq ft office space in Wan Chai. The firm, known for its success in content creation and live-streaming, aims to grow its presence beyond the mainland. Zhang’s Hong Kong branch will be managed by Eric Tsang, a prominent figure in Hong Kong entertainment and general manager of TVB.

Takeaway: The expansion of mainland content-creation firms into Hong Kong signals a growing cross-border collaboration and investment trend.

Read the full article about Three Sheep’s expansion into Hong Kong.

3. Trend: Singapore F&B Brands Find Success in the UK

A growing British appetite for authentic, diverse cuisine, driven by factors like travel and media exposure, has created opportunities for Singaporean flavours abroad. Several F&B companies, supported by Enterprise Singapore, collaborate with local food manufacturers to introduce Singaporean products to the UK market.

Takeaway: The success of Singaporean eateries in London reflects a broader trend of growing international demand for authentic, diverse culinary experiences and opportunities for local brands to explore. However, to thrive in the new market, businesses would need to overcome challenges, such as rising logistics costs, staffing issues due to Brexit, and the need for local marketing strategies.

Read the full article about Singapore F&B companies’ success in the UK.

4. People Moves

i. Fashion: Bucherer, Guess and Adidas

Bucherer: Rolex placed several top executives in key leadership positions at luxury jeweller Bucherer.

• Rolex president Nicolas Brunschwig is now Bucherer’s president.
• Rolex CEO Jean-Frédéric Dufour has taken on the role of vice president.
• Bucherer’s board now includes other Rolex leaders, such as the CFO and a board member, alongside a long-time legal advisor for Bucherer.

Despite these changes, Guido Zumbühl remains CEO of Bucherer. The acquisition, finalised almost a year ago, has received regulatory approval from Swiss and EU competition authorities.

Guess: Guess Inc. welcomes Dennis Secor back as interim CFO, effective August 26. The move follows the departure of Markus Neubrand, who is stepping down for a role closer to his family. The company is searching for a permanent CFO, likely to be based in Lugano, Switzerland. Neubrand will stay until September 30 to ensure a smooth handover. Secor, a seasoned financial leader in the apparel industry, previously served as Guess CFO from 2006 to 2012 and again as interim CFO from 2022 to 2023. His return brings the required strategic foresight in financial management and stability at a time when the company is focused on strategic growth in the fashion industry. His familiarity with Guess? and strong track record also makes him a reassuring choice for guiding the company through this critical period.

Adidas: Martin Shankland, head of global operations at Adidas, stepped down after 27 years on August 10. The move comes as Adidas streamlines its executive board, reducing the total number of board members from five to four. CFO Harm Ohlmeyer will take over some of Shankland’s responsibilities. Shankland’s departure follows major changes under CEO Bjørn Gulden, who took charge in 2023 and has since led the company through a successful brand revival, marked by the rising demand for its classic sneakers like the Samba and Gazelle.

Read the full article about Bucherer’s executive reshuffle.

Read the full article about Shankland’s departure from Adidas.

Read the full article about Guess’s new interim CEO.

ii. Beauty: Estée Lauder

Estée Lauder: Fabrizio Freda, President and CEO of The Estée Lauder Companies, will retire at the end of fiscal year 2025, concluding 16 years of leadership. During his tenure, Freda spearheaded significant growth, with notable achievements including the expansion of the company’s skincare portfolio with key acquisitions like Dr Jart and Deciem. The board has been actively engaged in the long-term succession planning process, evaluating internal and external candidates for his replacement. Freda will remain focused on driving strategic and financial priorities until a successor is appointed and continue as an advisor in fiscal year 2026 to support the smooth leadership transition.

iii. Retail & E-Commerce: Mattel and Dada Group

Mattel: Mattel hired Sai Koorapati as the new CTO. Koorapati will lead technology initiatives, focusing on AI, digital privacy, cybersecurity, and product, software and hardware development. Koorapati previously served as a senior VP at Topgolf Callaway Brands and held leadership positions at TaylorMade Golf and Gathering Storm Group of Companies, among other tech and manufacturing firms. This appointment comes as Mattel seeks to explore AI integrations to achieve cost savings of $200 million by 2026.

Dada Group: Dada Group, a Chinese on-demand retail and delivery platform, hired JD.com’s advisor, Guo Qing, as chairman of the board. Guo Qing was the co-founder and CEO of Xianglu Technology, a former executive at Meituan and Vice President of the China Hospitality Association. He joined JD.com in January 2024. His appointment followed JD.com’s investment in Xianglu Technology, which insiders suggest was primarily to secure Guo’s expertise.

Read the full article about Mattel’s CTO from Topgolf Callaway.

Read the full Chinese article about Dada Group’s exec from Meituan.

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Image Sources:

• Watchpro