Retailers push to end special tax treatment for online brands

Looks like the long, good read continues. Dennis Publishing just announced subscription rates across all titles have increased by 9% overall during the lockdown and ongoing pandemic. “Since the beginning of lockdown the number of people subscribing to all Dennis titles has increased by 9%,” notes this article on the publisher’s website. “To ensure an uninterrupted service of their favourite magazines, all titles have offered free digital access to subscribers throughout the pandemic, which has been met with glowing reviews by readers. The team didn’t rest on their laurels though, instead implementing engagement campaigns to get new subscribers to the titles, with huge success.” The company decided early on to unlock free digital access to all subscribers, to ensure the mail delays wouldn’t cause readers to lose interest. At the same, they implemented new engagement campaigns to reach new subscribers … with great success.

Net sales by brand for the first quarter 2020 compared to the first quarter 2019 were as follows: *Old Navy Global: Net sales were down 42%; store sales were down 60% with online sales up 20%. Since the onset of the COVID-19 pandemic, Old Navy has seen a meaningful acceleration in its digital business. The Company noted it expects the off-mall, strip real estate that makes up approximately 75% of the fleet to be an advantage as customers return to stores and expects traffic in these locations to ramp up more quickly than other formats. *Gap Global: Net sales were down 50%; store sales were down 64% with online sales down 5%. Prior to the onset of the pandemic, Gap brand performance continued to be pressured by inconsistent execution of product and marketing messages. However, the Company noted the brand did experience steady improvements in its online performance throughout the quarter, attributable to the Company’s strategy to migrate customers online as the brand’s fleet rationalization efforts continue. *Banana Republic Global: Net sales were down 47%; store sales were down 61% with online sales down 2%. While the move to casual fashion during the stay-at-home requirements has benefited other brands in Gap Inc.’s portfolio, this shift left Banana Republic disadvantaged in its product mix. As a result, Banana Republic is taking aggressive action to adjust to consumer preferences and improve inventory mix. *Athleta: Net sales were down 8%; store sales were down 50% with online sales up 49%. Customer response to Athleta was strong given the values-driven active and lifestyle space the brand participates in as well as the brand’s deep customer engagement through its powerful omni-channel model. Operating loss was $1.2 billion. This reflects the decline in gross margin, as well as a non-cash impairment charge of $484 million related to the Company’s stores to reduce the carrying amount of the store assets and the corresponding operating lease assets to their fair values, which have dramatically declined as a result of the pandemic. The Company noted that as part of its ongoing specialty fleet optimization efforts, the Company has undertaken a strategic review of its real estate portfolio to further advance its long-term strategic priorities that include a smaller, healthier fleet, particularly as it relates to its Gap brand and Banana Republic specialty fleets.

Hearst Connecticut Media Group (HCMG) has acquired RJ Media Group in Meriden. The Record-Journal, Cheshire Heral and other weekly newspapers, are included in the finalized deal. “Our support of journalism and the communities we serve is unwavering,” says Mike DeLuca, group publisher and president of HCMG, according to CT Insider.