Dolce Gabbana Srl, LVMH’s Louis Vuitton and Kering SA’s Gucci are set to anchor a new luxury retail development in South Africa’s VA Waterfront, according to the head of one of the continent’s most visited shopping and tourism destinations.
Cape Town’s VA is tripling the size of space available for rent to luxury retailers to almost 4,000 square meters (43,056 square feet) in a dedicated new wing, David Green, its chief executive officer, said in an interview. That comes amid growing demand for high-end goods in South Africa’s second-biggest city.
Representatives for Dolce Gabbana and Louis Vuitton didn’t respond to request for comment, and a spokesperson for Gucci declined to comment.
While the firms already have stores at the VA, these are dispersed among its other retail outlets. The new development will bring the mall’s luxury retailers under one roof, with store space for the three brands set to double, Green said.
In all, the new 207 million rand ($11.4 million) development expects to add as many as six new brands, including Capri Holdings Ltd.’s Versace, to existing offerings like Burberry Group Plc and MaXhosa Africa.
Africa is emerging as a burgeoning market for luxury goods driven by strong economic growth, an expanding middle class, increasing consumer spending power and a rising millionaire population. Output in the sub-Saharan region will probably expand 4.2% this year, making it the third-fastest growing emerging- and developing-market behind India and China, according International Monetary Fund estimates.
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South Africa, the continent’s richest nation, is the most established regional market for designer goods. Trading density for luxury brands in malls increased 171% in the five years through June 2024, according to Clur’s Shopping Centre Index, which tracks 4.1 million square meters of prime retail space in the country and neighboring Namibia.
The VA’s new development will see it “narrow the gap” with the Johannesburg-based luxury arcade known as The Diamond Walk in Sandton City, Green said. The surrounding precinct in South Africa’s economic hub is referred to as Africa’s richest square mile given its concentration of top businesses, high-net worth individuals and opulent homes.
Still, South Africa has among the world’s highest unemployment and inequality rates and is only just recovering from decades of moribund growth.
Demand for designer goods in Cape Town is partly driven by international tourists, including affluent shoppers from the rest of the continent, and the migration of wealthy families from other parts of the country, he said. The metro will overtake Johannesburg to become Africa’s richest city by 2030, according to Henley Partners.
Construction on the VA’s luxury development, located in South Africa’s oldest working harbor and set against the backdrop of Table Mountain, has already started. It will open for business in phases from November through next Easter.
The VA registered record retail sales of 1.4 billion rand in December, its peak period, Green said — up nearly 17% from a year earlier. Stores sold more than 10 billion rand in goods in 2024, about 7% of which were luxury items, he said.
The company is jointly owned by government-worker pension fund manager Public Investment Corp. and Growthpoint Properties Ltd., South Africa’s biggest listed real estate firm. It’s also planning a 20 billion rand expansion of the adjacent Granger Bay precinct, and expects to receive permission for the development, which involves reclaiming land from the sea, from City of Cape Town authorities in the first half of 2025.
U.S.-based fashion tech startup Refiberd has been named eBay’s first-ever Circular Fashion Innovator of the Year, earning a $300,000 investment to accelerate its work in advancing circular solutions for the fashion industry.
Refiberd wins eBay’s first Circular Fashion Innovator of the Year Award. – Refiberd
The investment comes through eBay’s Circular Fashion Fund, which supports innovative startups that are reshaping how clothing is made, used, and reused.
The award recognizes Refiberd’s AI system that can discern exactly what different fabrics are made of, allowing them to be accurately sorted and recycled. Their technology is designed to integrate seamlessly with existing recycling infrastructure, helping recyclers turn textile waste into usable fibers and significantly reducing waste across the supply chain.
Refiberd was selected from a field of 12 startups across the UK, U.S., Germany, and Australia.
“We’re honored to win eBay’s first Circular Fashion Innovator of the Year Award. The investment from eBay Ventures will help us close a significant round of fundraising for the business, allowing us to expand our technology to new recycling partners, strengthen our AI capabilities, and move faster toward our mission of enabling true textile-to-textile recycling,” said Sarika Bajaj, co-founder and CEO of Refiberd.
“The journey for a startup is tough, so having the mentorship and access to eBay and the CFDA’s networks has already proven invaluable. With this added support we can accelerate our impact and help build a future where circular fashion is the norm—not the exception.”
The Circular Fashion Fund, launched in 2022, has now supported 27 businesses globally and is on track to invest $1.2 million alongside over 200 hours of mentoring and upskilling from industry experts by the end of 2025.
“As the pioneering secondary marketplace, eBay has been driving circularity in fashion since its inception 30 years ago,” said Alexis Hoopes, VP global head of fashion at eBay.
“It’s a critical time for the fashion industry, and eBay’s Circular Fashion Fund—and the eBay platform at-large—are propelling the industry forward, enabling innovative ideas to help shape brand and consumer behaviors.”
The fund’s expansion comes as consumer interest in circular fashion continues to rise, particularly among Gen Z, with 66% reporting that buying pre-loved fashion is becoming increasingly important to them.
Canadian outdoor lifestyle brand Roots announced on Wednesday a 0.1% increase in total sales, for the fiscal year 2024, on the back of a strong fourth quarter.
The Toronto-based company said sales reached $262.7 million for the year ended February 1. Direct-to-consumer sales were $223.3 million, a 0.4% increase compared to the previous year, supported by better product margins and more effective discounting strategies.
Full-year adjusted net income grew 41.1% to $6.0 million. However, including the impairment charge, the company posted a full-year net loss of $33.4 million, compared to a profit of $1.8 million in fiscal 2023.
In the fourth quarter, Roots posted $110.8 million in sales, up 2.4% year-over-year. DTC sales, which includes revenue from corporate retail stores and e-commerce, rose 3.6% to $101.2 million in the fourth quarter.
Roots said this performance was driven by particularly strong demand for its core fleece and activewear collections, as well as the successful execution of its holiday assortment and marketing campaigns. The company also credited improvements to its omnichannel customer experience, which helped drive conversion both online and in stores.
“In the fourth quarter of fiscal 2024, we delivered a 7.5% increase in DTC comparable sales, a 270bps rise in gross margin, and Adjusted EBITDA growth of 9.1% year-over-year. Our strong performance reflects the impressive execution by the team across our strategic initiatives. Customers responded well to our holiday products, our enhanced brand engagement, and our improved omnichannel customer experience,” said Meghan Roach, president and chief executive officer.
“Our momentum has continued into the first quarter of fiscal 2025. As we look forward, we remain focused on delivering quality, innovation, and value to our customers while positioning Roots for sustained growth in the quarters ahead.”
Cosmetics group Clarins has named American model and environmental advocate Arizona Muse as its first-ever global CSR advocate.
Clarins names Arizona Muse as first globalCSR advocate. – Clarins
In this newly created role, Muse will lend her voice and platform to spotlight Clarins’ social and environmental commitments.
Notably, Muse will create social content that brings Clarins’ key CSR (Corporate Social Responsibility) initiatives to life including its commitment to responsible sourcing and full transparency on the origin of their ingredients, cultivation methods, and product manufacturing thanks to its traceability platform Clarins T.R.U.S.T.
The brand is also the first cosmetics company in the world to earn the Regenerative Organic Certified certification for its regenerative farming activity on the Domaine de Serraval.
Looking ahead, Clarins’ sustainability roadmap includes a goal to cultivate one-third of the plants used in its products by 2030 on its two Clarins Domaines, using farming methods that actively regenerate soil health.
“Clarins has always advocated for social and environmental responsibility. It’s one of our founding values. We have chosen Arizona as the perfect partner to represent this core value and embody our CSR initiatives: her deep commitment to sustainability matches Clarins’ and she shares our convictions about the work companies need to be doing in terms of CSR,” said Virginie Courtin, managing director of the Clarins Group.
“I met Arizona about 10 years ago and have been impressed ever since by her sincerity and dedication. I am confident that she will help us communicate on our initiatives and commitments with the engagement, passion and knowledge she brings to every project.”
Once dubbed “the new face of American fashion” by Anna Wintour, Muse’s modelling career includes over 40 Vogue covers and collaborations with some of the world’s most prestigious fashion houses. But it was her growing concern for the environmental impact of clothing production that led her down a different path. In 2021, she founded DIRT, a charity focused on promoting regenerative farming practices and helping brands transition to more sustainable strategies.
“Since I was 26, I’ve been thinking about sustainability, and about what we can do, as corporations and humans, to create a more sustainable future so this feels like the kind of partnership I dreamed up,” added Muse.
“It’s the 1st time that a business as big as Clarins has trusted me to be their CSR advocate and I’m proud to accompany them on their sustainability journey. I love how important sourcing and choosing regenerative farming practices are to Clarins, and how they’ve built this into their business. If brands want to be truly sustainable, it has to be written into the business, and Clarins understand this.”
Entertainment8 years ago