American footwear and accessories company Steve Madden is set to expand its private-label business for large supermarket chains Walmart and Target next year, as this type of retail has shown strong immunity to the effects of Covid-19, writes Wrldfootwear.com.
During a conference call by the American company to review its third quarter financial results, Edward Rosenfeld, chairman and chief executive officer of the company, stressed the importance of working with retailers Walmart and Target. “We are lucky to have a private-label business where we work with retailers in the mass market. Business with two largest retailers is measured in the amount of about $ 300 million, and we are doing well with them, we are discussing new initiatives together, and this business should grow in 2021. I expect that next year its share in the overall business of the company will increase significantly, ”he said.
Edward Rosenfeld noted that this business has lower margins, but its plus is that the company does not bear the risks associated with reserves and investments. He also stressed that at present, wholesale customers adhere to a conservative approach in ordering the spring-summer 2021 collection, which could lead to a drop in order volumes by 15-20%.