Report: Coach to discount handbags
New York — Coach Inc. will reportedly start offering 25% discounts on its luxury handbags at its stores in twice-a-year sales during June and December. According to Bloomberg, Coach will reduce prices on end-of-season and discount merchandise from 30-50%.
Coach has never before discounted items in its own full-price stores, although it does operate outlet stores and has conducted sales with third-party retail partners. The first discount period starts with an invite-only presale June 6-12, followed by a general sale. Coach is launching the discount strategy after reporting declining net income, net sales and same-store sales during its third quarter fiscal 2014.
Loblaw expands use of Precima
Toronto, Canada — Loblaw Companies Ltd. and LoyaltyOne’s Precima merchandising/marketing solutions provider are renewing and expanding their long-term engagement. Precima has been working with Loblaw for a number of years with a focus on developing and executing customer-centric merchandising and marketing strategies.
The collaboration is designed to help Loblaw better understand its customers and incorporate these insights into key business decisions with the goal of enriching the shopping experience. Further, through the Loblaw TopShelf Portal, powered by Precima, custom reports have been made available to vendors to drive immediate and actionable insights.
"At Loblaw, we believe in the need to speak to the individual,” said Uwe Stueckmann, senior VP, marketing, Loblaw. “Our work with Precima allows us to do so and to provide innovative programs that are relevant and personalized to our customers. We’re looking forward to continuing our engagement with Precima and leading the path in customer-centricity."
Men’s Wearhouse extends Jos. A. Bank deadline to June 19
Fremont, Calif. — The Men’s Wearhouse has extended its all-cash tender offer for $65 per share for all of the currently outstanding shares of common stock (including associated stock purchase rights) of Jos. A. Bank to June 19, 2014, unless further amended. The tender offer was previously set to expire on June 5, 2014.
The Men’s Wearhouse plans to issue an aggregate principal amount of up to $600 million of senior notes due 2022 in a private offering and use the net proceeds from this offering of senior notes to pay a portion of the approximately $1.8 billion purchase price for Jos. A. Bank.
As of June 5, 2014, approximately 25 million shares of Jos. A. Bank common stock have been validly tendered in, and not withdrawn from the tender offer. BofA Merrill Lynch and J.P. Morgan Securities LLC are serving as financial advisors to Men’s Wearhouse, and Willkie Farr & Gallagher LLP is serving as legal advisor.
The Men’s Wearhouse board of directors has also amended and restated the company’s bylaws to modify the voting standard required for shareholders to amend bylaws from 66-2/3% to a majority of Men’s Wearhouse’s outstanding voting stock.