Adidas is added to the growing list of retail cyber hacks

Adidas is added to the growing list of retail cyber hacks

Amid all the talk of trade wars and tariffs, the new war that is cyber attacks continues to advance, threatening companies and consumers alike. We have long said that cyber security, an aspect of our Safety & Security investing theme and index, is much like insurance – you may not think you need it, but you’ll be glad you have it when you do.

With each additional high profile attack, and we’ve had a few in the last few months, there is an increasing likelihood of IT budget shifts toward cyber spending for both defensive measures (reactive) as well as security (proactive). As we move deeper into the Digital LIfestyle, we see no slowdown in this cyber spending.

 

Another day, another (possible) data breach: Adidas revealed that it has come under attack from cybercriminals looking to steal personal information.

The breach could potentially affect millions of customers, who were notified on Thursday (June 28) about the incident on the Adidas U.S. website.

The company said it discovered the problem on Tuesday (June 26), when “an unauthorized party” claimed to have acquired some of its consumer data. The company is conducting a forensic review, as well as alerting customers who could be affected.

The investigation so far has found that the leaked data includes contact information, usernames and encrypted passwords. The retailer does not believe any credit card or health and fitness information was affected.

Adidas isn’t the first retailer affected by a breach. Earlier this year, Under Armour revealed that it suffered one of the biggest hacks in history after data from 150 million users of its MyFitnessPal diet and fitness app was compromised in February.

“On March 25, the MyFitnessPal team became aware that an unauthorized party acquired data associated with MyFitnessPal user accounts in late February 2018,” the company wrote in a statement. “The company quickly took steps to determine the nature and scope of the issue and to alert the MyFitnessPal community of the incident.

And in April, retailer Hudson’s Bay disclosed that customers at Saks and Lord & Taylor stores in North America have had their payment cards compromised. The breach, which is believed to involve 5 million cards, would be one of the largest involving payment cards over the past year.

Source: Adidas Warns Customers Of Data Breach | PYMNTS.com

Lord & Taylor’s owner Hudson Bay increasingy focused on digital

Lord & Taylor’s owner Hudson Bay increasingy focused on digital

What can we say other than it’s the latest sign of the woes faced by traditional brick & mortar retailers – the closing of once iconic flagship locations as they are caught between the push-pull of our investment themes. In this case it’s the accelerating shift toward digital shopping that is part of our Connected Society or Digital Lifestyle investing theme as well as our Cash-strapped Consumer one.

While Hudson Bay once expected to keep a scaled down version of the iconic Lord & Taylor location on Fifth Avenue, it has since decided to throw in the towel all together. Future generations may never know the beauty of Lord & Taylor’s Holiday Windows… unless Hudson Bay gives them a digital makeover as well.

 

Hudson’s Bay (HBAYF), the Canadian-based owner of Lord & Taylor and Saks Fifth Avenue, agreed last October to sell the Fifth Avenue store to WeWork for $850 million. The iconic store is located between 38th and 39th Streets and not far from Times Square.

The original plan was for the store to become WeWork’s New York headquarters after the 2018 holiday season. After that, approximately 150,000 square feet of the building would continue to be run as a scaled-down Lord & Taylor.

But that is no longer the case. Hudson’s Bay said late Monday that it “has decided not to maintain a presence at [the Fifth Avenue] location following turnover of the building to WeWork.”

The company said that “exiting this iconic space” — which first opened in 1914 — is a reflection of “Lord & Taylor’s increasing focus on its digital opportunity and [Hudson’s Bay] commitment to improving profitability.”

Hudson’s Bay is turning to Amazon rival Walmart (WMT) for assistance in the digital shopping arena. Walmart announced last November that Lord & Taylor will have a flagship store on Walmart.com.

The companies added last month that the online store is set to launch in the coming weeks with more than 125 brands and will feature free two-day shipping for orders over $35.

Source: Lord & Taylor is closing its 5th Ave store