Retail Food Group’s profits drop 50 per cent and Olivia Palermo plans to open an e-commerce platform. Get a healthy dose of news as we uncover the day’s top stories in e-commerce and retail.
Olivia Palermo Launches E-Commerce Platform
Influencer, Olivia Palermo, is launching her own e-commerce platform, on September 3rd. Featuring luxury labels and more than 25 brands, the online apparel store will include designers such as the late Karl Lagerfeld, Elena Ghisellini, Genevieve Rose Atelier and Giannico. Ms Palermo previously held the role of PR for Diane Von Furstenberg and has collaborated with the likes of Nordstrom and Banana Republic, which turned in more than $19 million worth of sales.
Retail Food Group to Refocus Following Tough FY19
Retail Food Group is said to be writing down its value after its profits dropped 50 per cent. In FY19, its net profits dropped from $33.3 million to $15.4 million. Its brands Gloria Jeans, Brumby’s Bakery, Michel’s Patisseries, Pizza Capers, Crust Gourmet Pizza and Donut King all feeling the pinch, with revenue declining 6.5 per cent. At Michel’s, Donut King and Brumby’s, revenue dipped 2.4 per cent, whereas at Glorias Jeans it fell 3.6 per cent. “The narrative propagated in some media articles that RFG is indifferent to the position of its franchisees ignores the commercial reality that RFG’s success is linked to that of its franchisees,” said Peter George, Chief Executive at Retail Food Group. “We have absolutely every reason to do all we possibly can to help our franchisees be more profitable.”
Hermès Sets Sight on Sydney’s Trust Building for Flagship Store
The French luxury designer, Hermès, is planning to launch its flagship store at Sydney’s CBD heritage Trust Building. The brand bought the retail floors of the building for $105 million, it’s reported. The 12-storey building was one of the first skyscrapers in the Australian CBD and was home to the Daily Telegraph from 1916 to 1929, which then became the home to Westpac (known then as the Bank of New South Wales). Qualitas has valued the building at $30 million. “Qualitas provided a total capitalisation solution and development management services to assist the owner with the significant overhaul and refurbishment of the building, in order to accommodate the repositioning of the heritage space into a flagship store for a global retail fashion house,” its website noted.
Cash Converter’s CFO Resigns
Cash Converter’s CFO, Martyn Jenkins, has resigned following reports of FY19 losses. With a $1.79 million loss reported this year, it’s dramatically different to the $22.5 million profit the year before. The resignation is effective immediately, and Katrina Grose will assume the role as CFO. Mr Jenkins entered the role as CFO in 2013 for Australia and the UK – Cash Converters currently has more than 150 stores across Australia and 750 world-wide. The company was forced to sign off $5.1 million worth of ‘bad loans’, $1.5 million for restructuring costs and $1.5 million for a scrapped IT project in the UK, among others.
Catch up on last Friday’s Freshly Squeezed news here.
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