Today in Retail: Brands Bet Big on the Metaverse; Authentic Brands Tables IPO Plans

In today’s top retail news, Gucci, Nike and other big brands are betting that consumers will want their virtual personas to wear the same gear they have in their physical closets, while Forever 21 owner Authentic Brands Group has delayed its plans for an initial public offering (IPO). Also, retailers are using artificial intelligence to assuage concerns about counterfeit handbags and sneakers, and an American Express executive talks to PYMNTS about what small businesses need to do this holiday season.

Brands Bet Big on Sales in the Metaverse

For decades, consumers have sought the hottest and trendiest apparel items to show off their tastes to the world, and as the metaverse continues to increase in prominence, brands are betting those fashion preferences will transfer to virtual personas even when no physical items are attached. In Nikeland, Nike’s virtual world inside of Roblox, for example, users can wear Air Force 1 and Nike Blazer sneakers, as well as other apparel.

Authentic Brands Group Shelves IPO Plans

Retail aggregation firm Authentic Brands Group has postponed its plans for an IPO and will sell stakes to private equity firm CVC Capital, hedge fund HPS Investment Partners and a group of existing stakeholders at a $12.7 billion valuation. Authentic Brands oversees a wide variety of companies, including apparel retailers Forever 21 and Aeropostale, department store chain Barneys New York, and men’s suit maker Brooks Brothers.

Retailers Use AI to Build Trust in Secondhand Luxury, Sneaker Sales

Vidyuth Srinivasan, CEO of high-value goods authentication platform Entrupy, told PYMNTS in an interview that counterfeits are a $3 trillion problem for the retail industry, “and it’s only growing every day.” Entrupy uses artificial intelligence to provide sellers and buyers of secondhand items assurances that the merchandise is legitimate and track the chain of custody for luxury handbags and sneakers — though more product categories are likely to be added as the company grows.

Small Businesses Must Have Digital Tech To Win Black Friday Sales

Marianne Rausch, vice president of Shop Small and Small Business Saturday for American Express, told PYMNTS that Small Business Saturday has evolved in the decade-plus since the credit card services company first launched the shopping holiday to meet changing consumer preferences, which this year means increase digital capabilities. Rausch said now is the time for small businesses to invest in their retail experience in order to capture as much holiday spending as possible.