LVMH Chairman Bernard Arnault’s Fortune Up $11 Billion, W Magazine Furloughs Staff
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Bernard Arnault’s Fortune Rose By $11 Billion on Tuesday (The Fashion Law)
Fashion’s richest man saw his fortune increase by more than $11 billion on Tuesday as the stock market rebounded in response to the news that the White House and the Senate had reached an agreement on a $2 trillion stimulus deal. Arnault’s fortune is still down $35.2 billion for the year as a result of the coronavirus crisis. At the same time, it is worth noting that his fortune rose by $40 billion in 2019, the largest individual gain by far of anyone on Bloomberg’s billionaires ranking.
W Magazine Furloughs Staff (Page Six)
According to New York Department of Labor records, Future Media Group, which owns W, has lad off 17 of their 58 employees. According to an insider “the goal is to welcome back employees soon.” W’s digital team is still on staff to keep the magazine’s website running, although they are working at reduced salaries.
Macy’s Shady Attempt to Cash in on Coronavirus Crisis (Diet Prada)
Fashion industry watchdogs Diet Prada, are calling out Macy’s for engaging in dishonest business practices in an attempt to drive online sales during the coronavirus crisis. The retailer’s newly launched “Stay-at-Home Must-Haves” department features hundreds of products Macy’s claims to be offering at deep discounts, but, as Diet Prada points out, many of the “original prices” listed have been massively overblown in an attempt to make it seem like consumers are getting a deal when they’re not. This same sort of “false price referencing” got Macy’s sued in California in 2016 along with other department stores, including JCPenney’s and Kohl’s.
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CORONAVIRUS CAPITALISM • When is a deal too good to be true? When it’s “Stay At Home Essentials” falsely marketed at up to 53% off in the middle of a global health crisis. Back in 2016, @Macys , along with other department stores like JCPenney’s and Kohl’s, were sued by the state of California for “false reference pricing” which is pretty much exactly what it sounds like—giving a false frame of reference for prices to fool consumers into thinking they’re getting a better deal than they actually are. ⠀⠀⠀⠀⠀⠀⠀⠀⠀ Well, Macy’s appears to be back at it, offering popular name brand items that might be in higher demand during quarantine. OXO food storage containers to keep America’s hoarded food supply fresh are selling at a “sale” price of $99.99, which is 40% off their “regular” price of $166.99. That same item is available directly from OXO and many competitors at a standard price of $99.99. Nespresso machines to ward off those tempting naps, a white noise machine that might drown out noise for increased focus and relaxation, and air purifiers are just some of the other items marketed with a significantly inflated retail price. There were only a handful of items where you would actually be getting a lower price than their competitors and in some cases, you even end up paying more. ⠀⠀⠀⠀⠀⠀⠀⠀⠀ Items in this specially marketed section (it’s at the top of their drop-down menu) are on “sale” through the end of March/mid-April. Can’t imagine Macy’s marking back up to grossly inflated “regular” retail prices after, when the whole point of mass retailers is to be price-competitive. Dieters, what are your thoughts? • #Macys #macysstylecrew #macysdeals #shopping #shoppingonline #corona #coronavirus #covid19 #stayhome #pandemic #epidemic #quarantine #quarantinelife #stockup #disaster #nespresso #airfryer #whitenoise #departmentstore #nutribullet #deals #retail #mall #sale #sales #opportunity #consumerism #active #consumerbehavior #dietprada
What the $2 Trillion Aid Deal Could Mean for the Fashion Industry (Vogue)
“The aid package creates a $425 billion fund for loans for distressed businesses controlled by the Federal Reserve,” writes Vogue. “Companies that receive loans cannot buy back their stock while they’re receiving assistance and for one year after. Smaller fashion businesses that pledge not to lay off their employees can apply for and receive emergency loans through June 30. If the employer continues to pay employees through the end of the crisis, the loans will be forgiven.”
Retailers Start Suspending Affiliate Programs (Business of Fashion)
Large fashion and beauty retailers including Macy’s, Dillard’s, T.J. Maxx, and Ulta Beauty, are temporarily freezing their affiliate programs during the coronavirus crisis. The move is an attempt by these retailers to keep as much money for themselves as possible at the expense of the influencers who do so much to drive sales. “I know people like to trivialize influencers, but this is people’s livelihoods,” said Marie Denee, who runs the plus-size blog The Curvy Fashionista and received an email from Dillard’s announcing the freeze. “We’ve been growing and scaling our business over the last 11 years, and we’ve weathered quite a lot but this is very traumatic.”