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This week in fashion news: One iconic British retailer shutters all its UK stores, and an American department store lowers its sales forecast.
Ted Baker closes all its UK stores
British clothing brand Ted Baker closed all its remaining 31 stores in the UK permanently, putting as many as 500 employees out of jobs. The brand’s UK holding company, No Ordinary Designer Label, went into administration earlier this year and had closed 15 stores already.
Why this matters: Things have been tough for the once iconic British retailer, which first gained prominence in the 1980s. Over the years, with high overhead and competition from other retailers, the brand couldn’t keep up. This year, the company declared Chapter 15 bankruptcy in the US, while Authentic Brands Group, which owns the intellectual property for Ted Baker, looked for distribution and e-commerce partners.
Macy’s lowers annual sales forecast
Macy’s has joined the ranks of the many retailers struggling as consumers cut back on spending and interest rates remain high. The department store’s share price fell 10% in premarket trading this week, after it lowered its annual sales forecast. Macy’s Q2 net sales dropped 3.8%, and it expects its annual net sales to be between $22.1 billion and $22.4 billion, down from its previous forecast of $22.3 billion to $22.9 billion.
Why this matters: From LVMH and Kering to Hugo Boss, no retailer is too big to be exempt from inflation-weary shoppers. Burberry has also slashed jobs and recently replaced its top executive in an effort to turn the company around and cut back on its losses.
Sarah Jessica Parker says goodbye to her shoe brand
Actor and entrepreneur Sarah Jessica Parker is reportedly closing her namesake shoe brand, SJP, Footwear News reported. The brand will close its flagship store in New York on August 25, while fans can still shop on its website for the time being.
Why this matters: The brand, which got its start in 2013 in collaboration with footwear exec George Malkemus, hoped to capitalize on the fame of Parker’s character on HBO’s Sex and the City and its spinoff series, And Just Like That, but alas, things have changed. The closure shows that even celebrity-fronted brands are not exempt from the pressures of the economy.