ASB MAGAZINE: As COVID19 restrictions continue, brands are taking various approaches to forward indents and the excess stock of inventory held by retailers who are unable to trade through this period. Below we’ve compiled a short list, which is by no means complete, how brands are responding. The situation continues to evolve and some of the information here may have already changed. If in doubt, contact your local rep.
As we reported here, Rhythm have cut ties with SurfStitch. Rhythm launched their ‘Support Your Local’ campaign. Rhythm offered a 40% voucher for every dollar spent at their online store for the month of April to be used directly with local stockists when they reopen. Rhythm have thrown their support behind loyal brick and mortar retailers who they say ‘have endlessly supported us over the past 17 years’.
“We love what we do at Rhythm and we wouldn’t be here today without these stores,” said Rhythm’s Josh Barrett.
“We look forward to being able to get back to more normal times and living our lives to the fullest” ⠀⠀⠀⠀⠀⠀⠀⠀⠀
Newly formed Hurley Australasia issued a statement to partner stores saying they will suspended all March/April orders. All Q2 (March – June) orders will be closely reviewed with the possibility to defer to later months. Hurley’s Spring 20 will be reflowed across July- November.
In order for Hurley to manage inventory levels they will not be moving forward with their Summer 20 range. Instead Hurley will offer an ‘injection’ assortment.
“During this challenging period, you can be assured of our close leadership and support. We are in this together and by working closely alongside in partnership we will certainly see ourselves come out the other side,” said Haydon Gray Group General Manager.
Read our Professional Edition article with Haydon Gray here…
O’Neill APAC Managing Director Justin Daniels announced to valued retail partners how O’Neill is approaching forward orders, summer indents and general retail support.
“Without retailers we don’t have a brand, without brands you don’t have a business. It’s a fragile ecosystem under attack, requiring partnership actions, ensuring this great industry is ready to paddle out and ride forward again,” said Daniels.
O’Neill will offer settlement discounts for all outstanding debts to retail partners. Unshipped winter orders may be pushed out for delivery until August. Spring apparel orders can be moved out from current delivery dates to anytime in the Sep- Dec period. Summer apparel indent collection will be available for a mid Nov – Jan delivery and will be reduced by 30-50% to absolute key commercial best sellers.
Unofficially, O’Neill’s forward apparel program in Australia is undergoing a strategic review with a possible plan to cease or suspend its apparel program in this region and focus on the company wetsuits and surf accessories divisions in the near future. It’s unclear whether that movement will have an impact of staffing levels at the company’s Brookvale Head Office.
Rusty released some important information to their valued retail partners. Managing Director Geoff Backshall said that he holds the view that the next few months will continue to be incredibly disruptive to retail trade as we all work together to bring the spread of Coronavirus under control. Rusty are encouraging retailers to put a hold on orders and/or delay shipment to August.
“We will all need fresh stock on the floor when the people come back out onto the streets, and we all know that the beach is a place that us Australians will all be flooding back to as soon as we can,” said Geoff Backshall.
“Summer I believe, will have us all getting back on track as we head into the busiest trading period of the year. For this reason, our Summer 20 collection will continue as planned.”
Rusty have pushed out the cut off dates for orders to June 20 and have altered the delivery date to begin November 1st.
“Hopefully by this stage we will have seen some normalcy returning to our everyday lives as well as returned confidence back into the economy. We will continue to monitor this over the coming weeks and advise you all closer to the time should there be any changes to these dates and delivery times.”
Volcom GM Alison Thomas told retail partners the company is deeply saddened by the current situation we are all going through and will do everything in its powers to support and work with their accounts.
“As we all trade through this difficult chapter, we wanted to give you full visibility on how Volcom is approaching open orders, settlement discounts and future indent structure for 2020,” said Thomas.
Current open orders are on hold with future indents being shipped along with any new at once orders placed. Volcom are offering settlement discounts and also adjusting delivery between now and August.
Alison said the company is expecting some erosion and possible delays with the global disruption. With Summer/S4 Indent Delivery adjustment to November – January delivery. Volcom’s focus will be core stable product lines and delivering fresh capsules for the key trade period.
Read our Professional Edition with Alison Thomas here
As reported, Rip Curl laid off or furloughed upto 95% of its staff and was reduced to a skeleton crew at its Torquay Head Office. A few employees were made redundant although it’s unclear exactly how many. Job responsibilities have been spread with for e.g. sales reps for Eastern Vic are now taking on all of Victoria and Tasmania. Rip Curl has reduced its summer range to about 35%. Rip Curl also offered all winter orders to be paid by the end of August with a 2.5% discount applicable.
Billabong are allowing all June onwards orders to be cancelled as April and May have already been shipped. Spring up until the end of June, and summer will be about 30% of normal ranges. Apparently, Billabong are allowing retailers freedom to sell online for 6 months to help with the inventory issues for retailers.
Afends have offered 20% discount on all accounts to be fixed up in full. Apparently, the brand will not be doing a summer range, but instead it plans to extend spring.
Banks Journal currently has all new stock on their Australian website at 50% off. It’s unclear whether any future orders will be shipped.
QUIKSILVER AND ROXY
Quiksilver and Roxy are encouraging retailers to clear their account to make most of 2.5% discount. Both Quiksilver and Roxy Summer offer will remain the same.