Business
From the Simplr studios in San Francisco, this is your daily briefing. IntroductionThis is Today in Five with Madison Huffman, for today, Tuesday, February 25th. Here are today’s headlines in digital disruption.Victoria’s Secret is being taken private after Sycamore Partners bought a controlling stake in the brand. The new deal will see Les Wexner step down and values the company at just $1.1 billion dollars.First, here are the latest headlines.Banana Republic Partnering with Postmates for On-Demand DeliveryBanana Republic announced it’s launching its first on-demand delivery service with Postmates in New York City and Southern California, according to a press release. Customers can buy their items on the retailer’s website and either select a buy online, pick-up in store option or choose delivery with Postmates, according to the release. The on-demand delivery function is meant to assist customers in addressing unforeseen wardrobe problems or getting customers the right clothing for different occasions. The on-demand option comes as Amazon has increased consumer demand for fast shipping, now offering free Prime one-day shipping, and retailers are feeling the pressure to keep up.Gap Inc. Partnering with ThredUPGap Inc. is the latest retailer to partner with ThredUP, a popular apparel resale site. The partnership will allow customers to turn in used clothing in exchange for credit at the company’s Gap, Banana Republic, Janie and Jack, or Athleta brands. Customers redeeming those credits will receive an additional 15 percent payout bonus, according to Gap Inc.’s press release. Starting in April, ThredUP bags or labels will be available at select stores in the U.S. Secondhand retail is a booming industry, with many other major retailers including the trend in their own strategy. Macy’s, J.C. Penney, and Madewell have announced their own partnerships with ThredUP in recent months. Morgan Stanley Buys E*Trade for $13 BillionMorgan Stanley agreed to buy discount brokerage company E*Trade Financial Corp. for $13 billion dollars, pushing further into the retail market in the biggest acquisition by a Wall Street firm since the financial crisis. The all-stock takeover adds E*Trade’s $360 billion dollars of client assets to Morgan Stanley’s $2.7 trillion dollars, the companies said in a statement. The chief executive officer of Morgan Stanley said in an interview, quote, “It’s the continuing evolution of Morgan Stanley into a stable, well-diversified business,” end quote.Victoria’s Secret To Be Taken Private After Deal With Sycamore PartnersL Brands has agreed to sell a controlling stake in Victoria’s Secret to Sycamore Partners. Under the deal, Sycamore Partners will buy 55 percent in the lingerie chain and take it private, leaving L Brands with a minority stake. Longtime CEO and founder, Les Wexner, will also step down. The transaction values Victoria’s Secret at about $1.1 billion dollars, falling short of some analysts’ expectations. The deal comes after months of speculation that a deal could be reached between the two companies. Victoria’s Secret has seen a decline in sales after competitors like ThirdLove and Adore Me launched with a focus on comfort and inclusive sizing. Les Wexner, who has been at the helm of the company since the beginning, announced he would be stepping down. In a message to employees, he said, quote, “I think about the endless possibilities ahead for this company. And I’ve thought about where I fit in the picture...In keeping with this same thoughtful examination, I have decided that now is the right time to pass the reins to new leadership,” end quote.Sycamore Partners has scooped up several troubled apparel brands and brick-and-mortar chains, including The Limited, Hot Topic, Nine West, and Staples. It’ll now be tasked with turning around the embattled lingerie brand who has seen a sharp decrease in sales and lost market share to its competitors. ClosingFind out how Simplr can cut your customer service response time through cutting-edge technology and on-demand talent at simplr.ai. That’s S-I-M-P-L-R.ai.Thanks for listening to this latest episode of Today In Five. We’ll see you tomorrow.