Today in retail, Lego debuts digital bricks, while Amazon launches Pet Day to kick off National Pet Month. Plus, G-III Apparel Group completes its acquisition of fashion brand Karl Lagerfeld, and buy now, pay later (BNPL) is shaping consumer buyer behavior.
Lego Joins Toy Industry’s Online Transformation, Bets Digital Bricks Will Click With Kids
Danish toymaker Lego is embarking on an unprecedented investment that will transform the notion of “playing well” to include more electronic versions of fun, where kids of all ages can seamlessly play, shop and share their brick-clicking escapades in the physical and digital worlds. The company said it “will step up its digital investment across all areas of its business from play to shopping and technology infrastructure.” It plans to triple its digital workforce over the next three years via a global hiring spree of engineers, product managers, user experience designers, technical program managers, digital security specialists and data scientists that will swell its IT staff to 1,800 people.
Amazon Looks to Take a Bite Out of Chewy With Revamped Pet Care Strategy
Amazon is dedicating itself to the four-legged members of families across the U.S. with its first Amazon Pet Day, the retail giant’s kickoff to National Pet Month, with savings for shoppers on home, pet and electronics products focused on the animals that bring them joy. Pet care is a space that’s becoming more crowded and competitive, with Chewy struggling to maintain the momentum it built up during the pandemic and Petco teaming with Lowe’s to find new ways to sell its products to customers who are increasingly returning to brick-and-mortar retail stores.
Karl Lagerfeld Acquisition Completed by G-III Apparel Group
The remaining 81% of fashion brand Karl Lagerfeld has been bought by global fashion company G-III Apparel Group from a group of public and private investors led by Fred Gehring of Amlon Capital BV for $210 million. G-III has owned 19% of the Lagerfeld brand since 2015 and will become the sole owner in an all-cash transaction that has been approved by the boards of directors of both companies. The acquisition is expected to close in the second or third quarter of fiscal year 2023.
PYMNTS Intelligence: How BNPL Is Shaping Consumer Buying Behavior
The BNPL market is skyrocketing, fueled by both increasing consumer awareness and aversion to high interest rates, particularly among younger generations. PYMNTS research found that consumers’ enthusiasm for BNPL continues to grow regardless of channel. Among surveyed department store shoppers, for example, 46% said they are highly interested in using BNPL online, while 41% are interested in using BNPL in-store. BNPL’s appeal is greatest among millennials, 70% of whom said they are highly interested in using installment plans at luxury and specialty retailers, with approximately two-thirds of bridge millennials and Generation Z consumers saying the same.
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