Jennifer Hyman, co-founder and CEO of Rent the Runway, joins Ken Pilot to discuss the company's journey over the past 15 years.Rent the Runway's Origins and GrowthHyman pitched the concept to Diane von Furstenberg 48 hours after having the ideaThe company now rents about $5 billion worth of designer clothing annuallyRent the Runway works with over 1,000 designers and has had 100% brand retention over 15 yearsBusiness Model and ProfitabilityThe company has focused on becoming capital-light, with revenue sharing agreements with brands.Rent the Runway has more than doubled its margins over the last few years.The goal is to reach free cash flow breakeven.Challenges and ResilienceCOVID-19 presented significant challenges for the business.Hyman emphasizes the importance of resilience and staying in the game.Marketing and Customer AcquisitionThe company is refocusing on top-of-funnel marketing activities.Rent the Runway is leveraging its community and introducing new initiatives like the "Icons" program.Physical Retail and PartnershipsHyman expresses interest in partnerships with retailers like Sephora, Ulta, or Zara.Previous partnerships with Neiman Marcus drove significant foot traffic.Industry InsightsHyman discusses the disruption in the fashion industry, particularly from companies like Shein and Amazon.She notes the changing perception of brand value among consumers.Technology and AIRent the Runway is exploring AI applications in various areas, including photography, customer service, and search algorithms.

Episode Summary:In this episode of The Retail Pilot, Ken Pilot welcomes back Stephen Yalof, President and CEO of Tanger. With over 25 years of experience in the commercial real estate industry, Stephen shares insights into Tanger's growth strategies, the evolution of retail spaces, and how the company is adapting to changing consumer behaviors. From expanding into full-price lifestyle centers to enhancing customer experiences through digital innovation and loyalty programs, Stephen provides a comprehensive look at Tanger's journey and future direction.Key Topics Discussed1. Tanger’s Recent SuccessesPerformance Highlights: Tanger achieved a 4.3% increase in net operating income (NOI) and a 97.4% occupancy rate. The company executed 543 leases covering 2.6 million square feet over the past year.Expansion Efforts: Recent acquisitions include The Promenade at Chenal in Little Rock, Arkansas, which features the only Apple Store in the state.2. Growth StrategyDiversification: While maintaining its core outlet business, Tanger is expanding into full-price open-air lifestyle centers that include specialty stores, grocery anchors, and other amenities.Acquisition Focus: Stephen emphasized the importance of acquiring high-quality properties in strategic markets to leverage existing regional management teams.3. Enhancing Customer ExperienceTanger Club Loyalty Program: A tiered membership program offering discounts and perks for shoppers. Members can choose between free or paid memberships ($20 annually) for additional benefits.Digital Integration: Introduction of QR codes for real-time offers and digital savings passports, replacing outdated coupon books.Amenities and Entertainment: Investments in food offerings, gathering spaces, and entertainment options like pickleball courts to create a more engaging shopping experience.4. Industry TrendsBlending Physical and Digital Retail: Tanger is exploring e-commerce integration as part of its long-term strategy while using digital tools to enhance in-store experiences.Health & Beauty Brands: Increased presence of brands like Sephora and Ulta in outlet environments, offering regular-priced products alongside experiential services.5. Leadership and Team BuildingTalent Development: Stephen emphasizes hiring complementary skill sets to address organizational blind spots and promoting from within to keep employees motivated.Communication Practices: Regular town halls, employee resource groups (ERGs), and an intranet ensure transparency and engagement across the organization.6. Reflections on LeadershipLessons Learned: Stephen highlights the importance of "failing fast" to pivot quickly when strategies don’t work. He also stresses the value of building a strong team aligned with company goals.Notable Quotes"Fail fast—if something doesn’t work, pivot quickly and move on." – Stephen Yalof"We’re lifestyle-izing our portfolio by adding food, beverage, amenities, and entertainment to enhance the customer experience." – Stephen Yalof"Our loyalty program is about understanding our customers better and providing them with personalized value." – Stephen YalofConnect with UsStay updated on Tanger’s latest developments:Website: TangerFollow The Retail Pilot for more insightful conversations with industry leaders!

In this episode of The Retail Pilot, host Ken Pilot sits down first in a Pre-Flight conversation with Simeon Siegel, Senior Retail Analyst for BMO Capital Markets, to discuss the state of the Retail market both post-election and leading into the holiday season. For the main Flight, Ken speaks with Rachelle Hruska MacPherson, founder of the fashion brand Lingua Franca. Rachelle shares the unexpected journey that led her to create a company known for its hand-embroidered cashmere sweaters and socially conscious messaging.Origins of Lingua FrancaRachelle started the company unexpectedly in 2016 while dealing with stress from her previous businessThe idea came from embroidering "booyah" on an old sweater as a therapeutic exerciseEarly success came from a viral "I Miss Barack" sweater after the 2016 electionBusiness Growth and ModelLingua Franca offers custom embroidery on cashmere and cotton itemsThe company has expanded into ready-to-wear clothing and collaborationsCurrent revenue is under $30 million, with 60-70% from direct-to-consumer salesProduct and PricingCashmere sweaters with embroidery retail for around $380Cotton items start at $150, opening up a new market segmentCustom embroidery is available in stores and through an online customizerMarketing and CollaborationsGrowth has been largely organic, with minimal traditional marketingCollaborations with celebrities, artists, and brands have been key to expansionUpcoming collaborations include Wicked and Gilmore GirlsChallenges and Future PlansRachelle discusses the difficulties of scaling while maintaining brand authenticityShe emphasizes the importance of product quality and customer serviceThe company is exploring new marketing strategies, including digital advertisingPersonal InsightsRachelle shares her favorite travel destinations and TV showsShe discusses the importance of mentorship and community in the fashion industryThe episode provides an in-depth look at how Lingua Franca has grown from a personal project into a socially conscious fashion brand, navigating the challenges of scaling while maintaining its core values and unique positioning in the market.

In this episode of The Retail Pilot, host Ken Pilot welcomes Jan Rogers Kniffen, CEO of J Rogers Kniffen Worldwide and retail industry expert, to discuss the current state and future of retail. Key Topics Discussed: Post-Election Retail BounceJan predicts a post-election retail bounce, as seen in previous presidential election yearsDiscretionary retail is currently running at zero inflation, making it attractive to consumersFourth Quarter OutlookDespite potential headwinds, Jan expects a strong fourth quarterForecasts 3.5-4% sales growth, similar to last yearBelieves discretionary goods will perform well due to their perceived value compared to inflating servicesWalmart vs. TargetWalmart is outperforming Target significantlyWalmart is attracting higher-income customers, traditionally Target's demographicWalmart's focus on in-store experience and competitive pricing is paying offOff-Price Retail SectorTJ Maxx ranked as the fifth-best retailer in America by JanConcerns about over-saturation in the off-price sectorPotential challenges for off-price retailers as the market maturesDepartment Store FuturePredicts most department stores will go private by the end of 2026Cites lower interest rates and increased real estate values as factors facilitating buyoutsMentions Nordstrom, Macy's, and Kohl's as potential candidates for privatizationTariffs and ManufacturingDiscussion on the impact of potential tariffs, especially on goods from ChinaMany retailers have already reduced their exposure to Chinese manufacturingPredicts that moderate tariff increases might be absorbed by Chinese manufacturers rather than passed on to consumersNotable Quotes:"May the bounce be with you." - Jan Rogers Kniffen on the post-election retail bounce"I think it's come down to who can do this stuff as opposed to where you happen to be." - Jan Rogers Kniffen on retail performanceClosing Thoughts:Jan expresses optimism for the retail sector going into the fourth quarter and 2025, despite potential challenges. He emphasizes the importance of execution and adaptation in the evolving retail landscape.

On this episode of The Retail Pilot podcast, Ken speaks with Nick Green, Co-Founder & CEO of Thrive Market, a membership-based online platform that makes healthy and sustainable living easy and affordable to all. Nick launched Thrive 10 years ago shortly after graduating from Harvard.The business has also been recognized as a leader in regenerative agriculture, carbon-neutral shipping, and Zero Waste operations, and in 2020 became the nation’s largest grocer to receive B Corp Certification.Outside of Thrive Market, Nick lives in Venice, CA with his wife, Carolina, and their three children.Key PointsAbout Thrive Market: An online retailer offering natural and organic products at affordable prices through a membership model1Mission: Making healthy and sustainable living easy, affordable, and accessible to all1Business Model: $60 annual membership feeCurated assortment of natural and organic productsAI-powered personalizationZero-waste fulfillment and carbon-neutral shippingCompany StatsFounded: 10 years agoMembers: 1.5 millionAnnual Sales: Over half a billion dollarsProfitability: Now profitable and cash flow positive1Nick Green's BackgroundGrew up in Minneapolis with a health-conscious motherPreviously founded and sold an education companyMet co-founder Gunnar, who grew up on a hippie communeBusiness StrategyProduct Mix: 90% third-party brands10% Thrive Market branded products (generating 25% of sales)Private Label Strategy: Focus on filling gaps in the catalog rather than copying existing products1Margin Profile: Strong margins on both private label and third-party productsSustainability: Zero-waste fulfillment centers, carbon-neutral shippingMarketing StrategyReferrals: 25% of new members come from existing member referralsInfluencer Marketing: Unique approach to partnershipsDigital Marketing: Leveraging technology for personalized experiencesFuture OutlookFocus on expanding online presence rather than immediate brick-and-mortar plansPotential for future physical stores, but not a current priorityContinued investment in AI and personalization technologiesCompetitive AdvantagePurpose-built for healthy livingMembership model driving profitability and customer behaviorTechnology-first approach to e-commerceStrong focus on sustainability and ethical supply chains

Ken Pilot interviews Oliver Chen for this flight of The Retail Pilot podcast. Oliver Chen is a Managing Director and senior equity research analyst covering retail and luxury goods at TD Cowen.  His deep understanding of the consumer and his ability to forecast the latest trends and technological changes that will impact the retail space have set him apart from peers.Prior to joining TD Cowen in 2014, he spent seven years at Citigroup, worked in the investment research division at UBS, in the global mergers and acquisitions/strategic planning group at PepsiCo International, and in JPMorgan’s consumer products/retail mergers and acquisitions group.Oliver holds a bachelor of science degree from Georgetown University, an MBA from the Wharton School at the University of Pennsylvania, and is a CFA charterholder.His passion for the sector began at the age of 12 when he began working with his parents at their retail business in Natchitoches, Louisiana.Summary:In this conversation, Oliver Chen discusses the current state of luxury retail and the beauty sector, highlighting the challenges and opportunities faced by brands. He emphasizes the importance of pricing strategies, the impact of digital transformation, and the need for brands to connect with younger consumers. The discussion also covers emerging trends in fragrance, the potential of the men's beauty market, and the role of AI in enhancing the retail experience.Key Takeaways:Luxury retail is facing an inflection point with declining sales.China's economic factors are influencing luxury spending.LVMH's strong brand portfolio positions it well in the market.Hermes thrives due to its timeless luxury appeal.Luxury brands are increasingly focusing on direct-to-consumer sales.Ralph Lauren's success is attributed to its cultural relevance and value perception.Fragrance is a growing category with opportunities for premiumization.The men's beauty market is still developing but shows potential.TikTok is becoming a significant platform for beauty brands.AI is set to transform the retail experience through personalized search.

Ken Pilot interviews Shai Eisenman, CEO and Founder of Bubble, on this episode of The Retail Pilot Podcast. Bubble Skincare is the first modern, affordable, science-backed skincare line formulated to clean, balance and hydrate young skin all for under $20. Today, the Bubble line consists of 20+ products that work together to create a complete routine from face cleansers to face masks. Bubble products are available on hellobubble.com, in over 16,000 retail locations across the US, Austrailia and the UK including Boots, Beauty Bay, CVS Walmart and Ulta stores.Prior to starting Bubble in 2018, Eisenman started her B.A. at 15, and began her career in business at 16 years old. She lives in New York with her partner and two children. Key Points:Shai started Bubble after an early start in academics and entrepreneurshipBubble focuses on affordable, high-quality skincare products for younger consumersThe company built a community of 4,600 Gen Z advisors before launchingBubble now has over 50,000 brand ambassadors who provide input on all decisionsProducts are priced affordably (around $15) but with prestige-level qualityInitially launched D2C but quickly pivoted to retail partnershipsNow available in 13,000 U.S. stores including Walmart, Ulta, CVS, and AmazonRecently expanded to the UK (Boots) and Australia (Priceline)Business Strategy:Focused on margin dollars rather than margin percentageFound retail partnerships more profitable than D2C for their price pointInvests in physical experiences and grassroots marketing over traditional advertisingCollaborates with brands like Disney to reach new audiencesRaised capital primarily from individuals and early-stage fundsAims to be profitable and not reliant on external fundingCommunity Engagement:Uses multiple platforms to communicate with brand ambassadorsOffers gift cards and commissions to ambassadorsRuns college campus programs with exclusive merchandiseInvolves community in product development, naming, and marketing decisionsChallenges and Growth:Adapting leadership style and operations as the company scalesExpanding internationally while remaining an independent brandBalancing control over brand experience with benefits of retail partnershipsLeadership Insights:Values building a strong team and fostering communityRelies on experienced advisors for guidance in different growth stagesEmphasizes the importance of adapting to different business stages 

In this episode of the Retail Pilot Podcast, Ken Pilot engages with retail legend Mickey Drexler, discussing the current state of retail, pricing trends, and the importance of customer experience. Drexler shares insights from his journey at Alex Mill, emphasizing the significance of quality, team dynamics, and the evolving landscape of retail. The conversation also features Ali Dillon, the President of Alex Mill, Alex Drexler, Founder, and Creative Director, Somsack Sikhounmuong, who discuss their roles and the brand's vision, highlighting the importance of community and innovative marketing strategies. Key Takeaways Include:Recent Success: Alex Mill has experienced strong sales performance attributed to changes in merchandising and management.Product Focus: Sweaters and denim are particularly successful categories for Alex Mill, with emphasis on fit and quality.Retail Strategy: Alex Mill follows a "less is more" approach, focusing on smaller store sizes and selective expansion.Marketing Channels: Instagram is a primary driver of brand awareness, with the company also exploring TikTok marketing.Expansion Plans: Alex Mill is planning to open a new store in Rockefeller Center, aiming for an early November launch.Customer Acquisition: Word-of-mouth marketing plays a crucial role in the brand's growth and recognition.Product Diversity: Mickey emphasizes the importance of offering multiple color options for key items to create visual impact and customer appeal. Sustainability and reworking products can also create new opportunities.Team Dynamics: A strong, diverse team is critical for successful product execution and business operations.

Simeon Siegel, a top retail analyst at BMO Capital Markets, dives into the current retail landscape and the importance of execution in a volatile market. He highlights the stark divide between thriving and struggling sectors post-pandemic. Luxury brands face new pressures, yet some like Prada perform well. Consumers remain resilient despite economic challenges, while technology investments are crucial for success. Siegel also shares insights on evolving retail strategies and the critical adaptation needed for legacy brands to maintain relevance.

Vic Drabicky, founder and CEO of January Digital, and Josh Krepon, President at Steve Madden, dive into the world of performance marketing in retail. They explore the critical balance between algorithm-based and authentic storytelling in branding. The conversation highlights the challenges of content management and the escalating importance of video marketing, particularly with platforms like TikTok. They also discuss how genuine influencer collaborations can foster real connections with consumers, and the growing role of MarTech in loyalty and data management.