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The Retail Apocalypse Myth and The Path Back to Growth

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We want to hear from you!

Why do you think direct selling’s U.S. numbers are down? Sound off by clicking the following links to share your thoughts:

Question #1: In your opinion, what are the main reasons for the downturn in direct selling?
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Question #2: What do we as an industry need to improve to compete in the marketplace?
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The 2018 DSA Growth & Outlook survey is out and for the second straight year U.S. revenue numbers are down. So how can direct selling return to growth?

In the wake of highly publicized bankruptcies, store closings, and layoffs from some of America’s largest retailers, publications like The Atlantic and Bloomberg Businessweek have published recent stories on the “retail apocalypse.”

However, a widespread “retail apocalypse” is an exaggeration to say the least. While many retailers have experienced challenges, the overall retail sales in the U.S. grew 4.5 percent, representing a 1.7 percentage point increase in growth from the prior year. And last year’s retail growth outpaces U.S. GDP’s 4.1 percent growth rate. (See chart at right)

U.S. Retail Sales Growth Outperformed GDP Growth

U.S. Retail Sales Growth Outperformed GDP Growth

The U.S. retail sector is rapidly evolving and is as strong, if not stronger, than ever. And, a strong overall retail sector and labor market pose favorable macro-economic conditions for direct selling to thrive.

Despite a 1.8 percent decline in estimated retail direct sales in the U.S. in 2017 and a decline in people involved, there are many promising opportunities to return to growth. To do this direct selling must play to its key strengths, capitalize on its key differentiators, and quickly learn from innovative retail leaders outside of direct selling.

Ever Evolving Retail Landscape

Credit Suisse predicts that a quarter of all malls in the U.S. will close within the next five years. Forbes estimates that 10,100 stores closed in 2017, perhaps the worst year on record. Retail casualties so far in 2018 include Toys R US, Nine West, and Claire’s. And, large department stores like Sears, JC Penney, and Macy’s have all continued with significant numbers of store closures.

Certainly, some retailers have been impacted by the rapidly evolving retail landscape. A Fast Company article titled “The Future of Retail in the Age of Amazon” says, “Cultural tastes have changed. Malls grew too quickly, at twice the rate of the population, from 1970 to 2015. Many retailers succumbed to quarterly earnings pressures, invested in share buybacks rather than their stores, became saddled with private-equity debt, or failed to keep pace with digital trends. What we’re seeing now, industry executives say, is a rational, albeit painful, course correction.”

However if you look at the retail numbers, the overall retail sector is experiencing growth. Forbes reports that despite 10,100 closures, there were 4,080 net store openings in 2017. The retail sector isn’t collapsing.

It’s evolving.

What Areas Of Retail Are Doing Well?

1. E-commerce

With giants like Amazon and Walmart (and its jet. com) leading the way, e-commerce is certainly a large component of overall retail growth. Euromonitor research below indicates it’s not expect

ed to slow down anytime soon:

Internet Retailing in the U.S. ($Billions)

Internet Retailing in the U.S. ($Billions)

Even with this explosive growth, e-commerce still represents less than 10% of retail.

2. Omnichannel not multichannel

There’s a trend toward online retailers expanding into brick & mortar (e.g. Amazon with Amazon Books, Amazon Go, and Whole Foods, Warby Parker, Blue Apron, etc.). Similarly, some of the traditional brick and mortar retailers experiencing the most success are the ones that have invested in an online platform that seamlessly complements the in-store experience. Warby Parker wanted to create stores that felt like “an authentic extension of the e-commerce brand.”

3. Experiential

Ulta Beauty is investing heavily in the in-store experience by providing extensive samples and salespeople with personalized recommendations. The company is one of the fastest growing retailers, let alone cosmetics companies.

4. Discount

Companies like Dollar Tree, TJX, and other discounters are also growing fast. For example, Dollar Tree is expecting to open more than 600 stores in 2018. This discount growth could be attributed to continued thrifty mindsets following the recession, stagnant wages, etc. And consumers may increasingly enjoy a “treasure hunt” experience of finding the best deals.

Where Does Direct Selling Stand?

According to the Direct Selling Association’s 2018 Growth & Outlook Survey, after reaching an all-time high in 2015, direct sales decreased 1.6 percent in 2016 and 1.8 percent in 2017 to $34.9 billion in the U.S.

U.S. Retail Sales ($Billions)

U.S. Retail Sales ($Billions)

The direct selling wellness sector is still the largest at $11.8 billion in retail sales, but it experienced its first decline in over 10 years. Wellness is followed by services, home & family care/home durables, personal care, clothing & accessories, and leisure & educational in order of size.

In terms of the salesforce, there were 18.6 million people involved in direct selling in the U.S. in 2017. The industry is down 9.3 percent from 2016. One driver of this decline is that companies moved people who were previously categorized as independent representatives away from their discount customer category and into the preferred customer programs. Another possible reason for salesforce decline is increased competition with the collaborative economy for independent contractors.

How Can Direct Selling Return To Growth?

1. Leverage both brick and mortar and ecommerce

When done right, direct selling can combine the best of both worlds with brick and mortar and e-commerce, while leveraging its key strengths/differentiators: personal relationships and coaching, supporting a local businessperson, and providing a low-cost, low-risk way of starting a business.

Sales by product/service group

Sales by product/service group

2. Focus on value proposition not cost of products

“The best retailers are embracing what makes them special to counteract Amazon’s quest to dominate commerce.” – Fast Company

Direct selling tends to offer more premium products, making it much more of a challenge to compete on price. This is not inherently bad, as trying to compete on things like price can be a race to the bottom.

Katrina Lake, CEO of Stitch Fix, an online subscription and personal shopping service, says that part of the crisis that we’re seeing with retail right now is that if your retail store is merely a place for transaction where you tender cash and you take a product home, and that’s the only value that your store delivers, then you are in trouble. “I think part of the race to the bottom that we’re seeing is that if you’re in that business, then you are now in a global marketplace that’s all competing for cheapest and fastest.”

Warren Buffett echoes the same sentiment, “The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business.”

Similarly, direct selling may struggle to compete with shipping. Retail giants like Amazon and Walmart are able to offer low cost/free shipping at a loss because they’re able to cross-subsidize with their more profitable parts of their business to prioritize growth and aggressive pricing at the expense of profit.

Benefits of Each Retail Channel

Benefits of Each Retail Channel

3. Embrace omnichannel not multichannel

Many consumers and salespeople desire a comprehensive, cohesive approach with all of the channels complementing one another in an authentic way that improves the customer experience.

4. Enter strategic partnerships to improve on weaknesses

Although most direct selling companies aren’t well equipped to beat Amazon on shipping directly, they can certainly better compete by entering into strategic partnerships to improve shipping and logistics to better meet customer expectations.

5. Focus on preferred customer programs

It’s easy to think that Amazon offers free two-day shipping. However it’s actually not free. It’s only “free” if you’re a part of Prime Member, which requires a $119 yearly fee. Over 100 million people now have Prime, representing one of the most successful preferred customer programs in retail.

There’s a current industry trend toward creating preferred customer programs. Part of this is the result of resegmentation: companies re-categorizing people that signed up as direct sellers only for the discount on product purchasing for their own use to preferred customers. But, as we’ve seen a cascade of other companies following suit and resegmenting, they’re realizing enormous business value to this.

This transition naturally leads to an increased focus on customers. It allows direct selling companies to have much better data and insights into motivations and behavior of both customers and salespeople. As author Peter Drucker says, “What’s managed improves.”

Monica Wood, Global Consumer and Member Insights at Herbalife Nutrition (and DSA Industry Research Committee member), says they have always known that distributors and members join Herbalife Nutrition for a variety of reasons, including support, great-tasting science-backed products, or the business opportunity, both for part-time income or a full-time business opportunity. “Segmentation has allowed us to more clearly identify our distributors’ and members’ current goals, and to align our resources, communications and promotions more effectively to help them achieve them, and to better support them as their goals change over time,” she says.

Another company that’s seen added value and growth from segmentation is Isagenix. Jeff Kaufman, Director, Customer and Field Insights at Isagenix (and Industry Research Committee Chair), said that in 2017, Isagenix implemented its Customer First Program. “This program was created in part to help us better distinguish between members who simply want to purchase products and those who also wish to participate in the business opportunity,” he said. To do this, they encourage new members to join as customers first. Then those customers interested in the business opportunity may enroll as Associates when they are ready.

Following are some of the program’s benefits:
• Simplifying the enrollment and ordering process
• Eliminating the need to collect a customer’s Social Security number when first enrolling
• Making customer membership more attractive
• Providing the ability to direct relevant and unique communication to each segment
• Expanding and protecting the business opportunity

6. Capitalize on desire for supplemental income

Unemployment is low, nearing full employment, but other metrics that measure the health of labor market, such as wage growth and people quitting their jobs, remain stagnant. The challenge is that with the emergence of the collaborative/gig economy, there are now more opportunities than ever for part-time, flexible contract work. For example, the Internet Association says that 23.9 million people are currently in the “online labor force” in the U.S.

Now is certainly an exciting time for retail with the need for evolution more important than ever.

Let’s Continue the Conversation

Stay tuned for a series of Direct Selling News articles to further explore why direct selling is down and what it can do to recover. At the 2018 DSA Annual meeting last month we held a workshop to discuss initial thoughts from some company executives who attended. We want to continue the conversation and would love your input. Take the survey!

We want to hear from you!

Why do you think direct selling’s U.S. numbers are down? Sound off by entering the following link in your phone, tablet, or computer browser to share your thoughts:

Question #1: In your opinion, what are the main reasons for the downturn in direct selling?
goo.gl/xH9KaU

Question #2: What do we as an industry need to improve to compete in the marketplace?
goo.gl/gbzG9i

NameBen Gamse is Market Research Manager at the U.S. Direct Selling Association.

Times They Are A Changin’…

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A few months ago I was in need of a tux for our Global 100 Celebration event. So like most people I went to one of the big anchor stores at a nearby mall. Not finding the selection satisfactory, I thought I’d venture through the mall to check another store. What I saw when I entered the heart of the mall was quite astonishing: vacant store after vacant store as far as I could see on the bottom and top levels.

Todd Eliason, Publisher and Editor in Chief

Todd Eliason, Publisher and Editor in Chief

Retail is the most visible example of how technology is disrupting brands big and small. But no industry is immune, direct selling included. Being an established industry leader today doesn’t ensure you will be one five years from now, even a year from now. Our writer Brittany Glenn takes a look into how direct selling companies can adapt to these changing market forces, and it starts with assessing how agile or nimble your organization is in adapting to change. As Nu Skin President Ryan Napierski said last month at the DSA Annual Meeting, “If we are not flexible as an organization we can’t move as quickly as we need to move to compete in today’s business climate.”

This leads us right into our cover story, where we highlight several direct selling companies who have bucked the traditional startup model with the help of cloud technology, great supplier partners and a lean business structure. You will hear from many of these CEOs on why they chose this route, as well as the cost savings and operational advantages of a virtual/lean run business.

We also have included a complete roundup of the U.S. Direct Selling Association’s Annual Meeting, including the topics that were covered, leadership changes, policy initiatives, and research that went into the 2018 Growth & Outlook report that was released at the meeting. Although sales in the U.S. were down 1.8 percent from 2016, overall global growth remains steady with a 1.6 percent increase from 2016.

To help initiate a conversation about how direct selling can get back to year over year growth in the U.S. market, DSA Market Research Manager Ben Gamse presents a few ideas for you to ponder in the News in Brief section starting on page 8. We would love to hear your comments, so be sure to look for the link in the sidebar that will take you to a survey to share your thoughts.

Finally, writer Beth Douglass Silcox takes a look at ASEA, who 10 years ago set out on a mission to take their ASEA Redox cellular health product to the masses worldwide. From day one they have approached the direct selling business model with a Fortune 50 mindset and adopted strategic planning principles that not only have benefited their field but have helped them grow as a result.

Since becoming the Publisher and Editor in Chief a few months ago, I have been able to get to meet so many great people from our industry, most recently at our Global 100 Celebration event and DSA Annual Meeting. Please feel free to drop me an email (teliason@directsellingnews.com) and let me know how we are doing and how we can better serve you and this great channel.

Lipstick Global Market to Exceed $17 Billion by 2023

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According to ResearchAndMarkets.com’s new report “Global Lipstick Market by Product Type (Gloss, Matte & Others), By Distribution Channel (Supermarkets/Hypermarkets, Departmental/Grocery Stores, Multi Branded Retail Stores & Others), By Region, Competition Forecast & Opportunities, 2013–2023,” the global lipstick market is expected to cross $17 billion by 2023 due to the rising number of product innovations, increasing disposable income and rising demand from young and working women across the globe.

Other market factors driving the lipstick market globally are the increasing preference for organic cosmetics, rapid urbanization and increasing internet usage, coupled with the growing demand for lipsticks across major developing countries.

Additionally, marketing strategies such as advertisement of products on social networking sites such as Facebook, Twitter, YouTube and other websites by lipstick manufacturing companies are anticipated to further aid the global lipstick market over the coming years.

The report discusses the following aspects of lipstick market globally: lipstick market size, share & forecast; segmental analysis – by product type (gloss, matte & others), by distribution channel (supermarkets/hypermarkets, departmental/grocery stores, multi branded retail stores & others), by region; competitive analysis; and changing market trends and emerging opportunities.

Companies featured in the report include L’Oreal International, Christian Dior SE, Shiseido Company Limited, The Este Lauder Companies Inc., Revlon Inc., Coty Inc., Avon Products Inc., INGLOT Cosmetics, Chanel S.A. and ABLE C&C Co. Ltd.

For more information on the report, click here.

Young Living Hosts Employee Service Day for Sleep in Heavenly Peace

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Young Living Essential Oils, the Lehi, Utah-based direct seller of essential oils, recently conducted a day-long service project to benefit Sleep in Heavenly Peace (SHP), an organization dedicated to building, assembling and delivering top-notch bunk beds to children and families in need.

This corporate fundraising event included 500 Young Living employees in Utah to make 60 bunk beds for 120 Utah children in need. In addition to the manpower used to build the bunk beds, the D. Gary Young, Young Living Foundation donated $10,000 to the SHP Foundation to cover the cost of building materials, linens, mattresses and other supplies. Young Living will deliver all beds completed.

“Studies show there is a close association between sleep and a wide range of cognitive functions, including attention and memory,” said Jared Turner, Young Living president and chief operating officer. “As a global industry leader, Young Living understands its responsibility to the local Utah community and sees this project as an important step in facilitating wellness among our most vulnerable citizens. We are proud to help Sleep in Heavenly Peace give children a respite from the trials they face daily, giving them a safe space of their own to sleep comfortably.”

Additionally, Young Living employees and members had the opportunity to make additional financial contributions to the build through a dedicated portal on the D. Gary Young, Young Living Foundation website.

“We are grateful for the overwhelming support from Young Living and its members,” said Lehi Utah Chapter President of Sleep in Heavenly Peace Matt McEwen. “Having their own bed can have such a lasting impact on a child’s overall physical and mental health, and Young Living’s efforts have enabled us to change lives by providing hope and wellness to hundreds of individuals every week.”

Primerica Achieves Record Sales in June; Canada Headquarters Moves to New Office

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Duluth, Georgia-based Primerica, Inc., a leading provider of financial products to middle income households in North America, recently announced that it achieved a record $9.1 billion in Term Life insurance face amount issued in June.

For the second quarter, Primerica’s Term Life face amount issued grew 2 percent over the prior year quarter.

“Thanks to the hard work of our sales force, many thousands of Main Street families throughout North America now have life insurance protection,” said Primerica CEO Glenn Williams. “I am extremely proud of the leadership provided by our representatives. They continue to meet the financial needs of record numbers of families, and I look forward to all that we’ll accomplish in the future.”

Primerica also noted that its Canadian headquarters in Mississauga, a suburb of Toronto, will relocate to its new facility later this month. The timing of the move coincides with the company’s 2018 Canadian Convention, which will be held July 27-28 at the Toronto Congress Centre.

“We will remain in Mississauga as we relocate to 6985 Financial Drive, where we will occupy over 43,000 square feet of leased office space that has been completely designed to our specifications,” said Williams. “It is a state-of-the-art office where we can conduct business, continue to grow and add staff and help more Canadian families become financially independent.”

According to the company, in the second quarter Primerica Canada achieved a record 12,000 life insurance licensed representatives, solidifying its position as the country’s largest life insurance sales force. This Canadian growth helped Primerica’s North American sales force surpass 130,000 life insurance licensed representatives as of June 30, 2018.

OPTAVIA Helps ‘Cake Boss’ Star Buddy Valastro with Weight Loss

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OPTAVIA, the lifestyle brand of Medifast, was recently credited by Food Network celebrity Buddy Valastro as the reason for his dramatic weight loss.

Valastro, the owner of New Jersey’s legendary Carlos’ Bakery, recently shared an Instagram photo showing his new look. In the comments section of the post he said, “A lot of people have been asking me how I’ve slimmed down lately so I just wanted to share that I’ve used the OPTAVIA program. I’m not being paid to say this and it should be noted that I think everybody is different and you should do whatever suits you but this is what I’m doing and I’m very happy with the results so far!”

OPTAVIA helps people with lifelong transformation through its Optimal HealthTM approach. Its proprietary products and programs are based on more than 37 years of experience and have been used by more than 1 million clients and recommended by more than 20,000 doctors since 1980.

OPTAVIA was No. 56 on this this year’s Direct Selling News Global 100 list of the top direct selling companies in the world.

Third Annual Isagenix Global Give Back Day Unites Customers and Employees

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Photo: Participants cleaned up litter in a community park in Bristol, England; Australia participants cleaned up plastic and microplastic litter along the coastline.

Isagenix International, the Gilbert-Ariz.-based global health and wellness company, recently united customers and employees during its third annual Global Give Back Day.

“It’s inspiring to see our customers and employees embrace this annual initiative and reflect our company’s core value of contribution,” said Erik Coover, Isagenix senior vice president of Global Field Development and Culture.“

This year’s activities took place in markets Isagenix serves, including the U.S., Australia, New Zealand, the U.K., Colombia, Singapore, Taiwan and Hong Kong. Among the Global Give Back Day participants were independent distributors who share the company’s health and wellness solutions and members of START, a popular Isagenix affinity group for customers ages 18 to 35 striving to lead extraordinary lives while helping others do the same.

For the special day’s activities in the U.S., employees from the company’s headquarters and START members visited Feed My Starving Children and packed 32,400 meals that will feed 88 children in the Philippines for a year. Isagenix donated to cover the cost of the meals packed. The company also launched a buy one, give one promotion to provide great nutrition to those in need. The 2,777 donated boxes had a retail value of approximately $122,000.

Highlights of Global Give Back Day activities in other Isagenix markets include:

  • Australia and New Zealand: Australia participants cleaned up plastic and microplastic litter along the coastline, while crews in New Zealand cleaned up beaches off their local coasts.
  • U.K.: Participants cleaned up litter in a community park in Bristol, England.
  • Colombia: Participants visited Fundación Proyecto Unión, a foundation that supports homeless, abandoned children who have health issues. Volunteers played with the children and provided donations including books, easels, toys, and clothes.
  • Singapore: Participants teamed up with a local nonprofit, Willing Hearts, to prepare, pack, and distribute meals to over 5,000 beneficiaries in the community including the elderly, the disabled, poverty-stricken families, and migrant workers.
  • Taiwan and Hong Kong: Corporate teams organized mountain and beach cleanups along with collecting donations for the Make-A-Wish® foundation.

Isagenix customers also engaged in small acts of kindness and service on their own, from picking up trash in their neighborhoods with their kids to inviting an elderly couple over for dinner.

“As our Global Give Back Day initiative illustrates, there are many ways to make a difference, whether you serve alongside others or on your own,” Coover said. “I hope this initiative encourages everyone to explore how they can make an impact on the world around them.”

Walmart, Amazon Affecting Direct Sellers’ Wellness Business?

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Last month, in its annual “Growth and Outlook Report,” the U.S. Direct Selling Association reported that retail sales of $34.9 billion for 2017 were down 1.8 percent from 2016.

The wellness product category, which has been the channel’s strongest category for several years—and which accounted for 33.8 percent of all sales last year—also saw a slight decline. This marks the first time since 2010 that wellness sales have decreased year over year.

Yet, it seems that wellness products are doing well overall. A report released last week by Shelton, Conn.-based firm TABS Analytics reported that vitamin, mineral and nutritional supplement (VMS) sales grew by an estimated $500 million, or 3 percent, during the past year. The firm’s 11th Vitamins, Minerals and Supplements Study noted that growth in the $14 billion VMS market was fueled by the addition of new hair/skin/nail and melatonin offerings and an increasing number of consumers who purchased products occasionally. The growth was also driven by strong growth at both Amazon and Walmart—which could be having a huge effect on the direct selling channel’s wellness business.

“Walmart continues to hold its leadership position in VMS sales at its brick and mortar stores, and it is showing online growth while Amazon remains at the top and continues to extend is lead in the eCommerce space,” said Dr. Kurt Jetta, president and founder of TABS Analytics. “These trends counter conventional wisdom that online sales are coming at the expense of purchases in physical stores. These two types of outlets do not need to be mutually exclusive; rather they both can continue to grow sales with the right approach to marketing and product mix.”

Key findings from the study included:

  • VMS sales reach new heights: This category continues to grow gradually, with penetration reaching 78 percent in 2018, its highest level in the history of TABS’s survey. Purchasing by heavy buyers (those who purchase 3+ types of products), which typically drive penetration, were flat in 2018. Most of the growth this year is attributable to a 2 percent increase in occasional purchasers (1-2 product types). Purchasing dropped among women ages 55+, who have tended to drive sales in the VMS market. This 9-point drop was offset by growth in purchasing by men, both younger (ages 18-54) and those 55+.
  • Walmart was the clear winner among brick and mortar outlets, with 39 percent of survey respondents indicating that they purchased VMS products there, up 7 percentage points from last year. Food also saw gains, up 3 percentage points to 18 percent and the other major brick and mortar outlets (including major specialty stores like GNC and Vitamin Shoppe) remained stable. Losers included Club (Costco and Sam’s) and the natural food channel.
  • Amazon remains at the top in eCommerce. While Walmart grows its online VMS business consistently, Amazon grew from a flat base in 2017 as 10 percent of survey respondents noted they made purchases through the online retailer. Another bright spot was Puritan’s Pride, showing solid performance as #3 eCommerce retailer as it effectively converted catalog customers to the online channel.

TABS Analytics’ VMS study was conducted in April 2018 by Caravan, part of ORC International, and was developed to examine trends regarding what types of vitamins and nutritional supplements are purchased, how frequently they’re purchased and at which outlets they are purchased. The survey panel included 1,000 geographically and demographically dispersed consumers. To view the report, click here.

Throughout 2018, TABS Analytics is conducting six studies across the consumer-packaged goods industry including: baby care, vitamins, wine & liquor, candy, food and beverage and cosmetics. It will be interesting to see how cosmetics sales relate to direct selling’s numbers, which also slightly declined in 2017.

JRJR Networks Files for Chapter 11 Bankruptcy

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According to a report by the Newark Advocate, Longaberger parent company JRjr33, also known as CVSL and JRJR Networks, filed for Chapter 11 bankruptcy last Friday in U.S. Bankruptcy Court for the Northern District of Texas.

JRjr33 representatives failed to show for a court-ordered conference Friday in Franklin County Common Pleas Court, in Columbus. The conference, a judgment debtor exam, was scheduled for the company to show its assets to former Longaberger CEO Tami Longaberger, who won a $2.1 million judgment against the company on Feb. 12.

Judge Mark Serrott had scheduled a show-cause hearing for July 25, when JRjr33 would be required to show why it should not be held in contempt of court for its failure to attend the conference. But, after the company filed for bankruptcy, the judge canceled the show-case hearing, according to Vanessa Griffin, staff attorney for the judge.

Steven Tigges, attorney for Tami Longaberger, had planned to file a motion asking for the contempt of court charge, freezing of company assets and warrants for the arrest JRjr33 representatives. The bankruptcy filing changed those plans.

“We just have to work our way through the process,” Tigges said. “I’m hoping (Tami Longaberger) will see the judgment paid. The bankruptcy court is well-equipped to sort through the financial affairs of the company. We’ll just have to wait and see.”

In the bankruptcy filing, the company states it has between 100 and 199 creditors, and between $1 million and $10 million in assets and in liabilities.

The $2.1 million judgment for Tami Longaberger includes $1.275 million in salary, $608,642 in deferred salary and $208,986 in business expenses. The judgment did not include another $1 million in personal loans she made to the company. That case is still pending.

Tami’s sister, Rachel Longaberger Stukey, a former Longaberger Co. shareholder and officer, and former Longaberger Foundation president, also prevailed in a lawsuit against the company in September, when a Franklin County Common Pleas Court judge ruled Longaberger Co. owed Stukey $2.7 million.

Left unresolved was whether JRjr33 was also responsible for the payments to Stukey. A settlement was reached, but the details were not disclosed.

Longaberger Co. also owed about $850,000 in delinquent property taxes on its basket-shaped former headquarters in Newark. The sale of the building last year paid off the delinquent taxes, with 75 percent going to the city of Newark and 25 percent to Licking Valley Schools.

Jamberry Announces Foreclosure

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UPDATE…

Lindon, Utah-based Jamberry yesterday announced that the company is in foreclosure.

In a communication to consultants, the company stated, “We’re so grateful to each of you for your patience during this transitional time for Jamberry. We regret to inform you that any product, gift cards, swag, marketing or event purchases made prior to 11:59 p.m. MT on June 28, 2018, are ineligible for refund from Jamberry.”

The communication also stated that due to the entity’s present status, it was unable to fulfill a contract with the Gaylord Resort for International Conference 2018 in Nashville, Tenn., and that 2019 Incentive Trips to Costa Rica and Thailand were cancelled.

“To secure a future for you and your businesses moving forward, M.Network has agreed to purchase certain Jamberry assets, and they’ll be communicating with you soon. Thank you for all you’ve meant to Jamberry. We wish you success,” said the company.

Eight years ago sisters Lyndsey Ekstrom, Christy Hepworth and Keri Evans launched what would become a multimillion-dollar enterprise, Jamberry Nails in the direct selling channel. The company, which offered nailwraps, gel enamel, beauty and skin care, operated across the U.S. and in five additional countries: Australia, New Zealand, the United Kingdom, Canada and Mexico.

Arbonne Announces New CEO Jean-David Schwartz

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Photo: Arbonne International CEO Jean-David Schwartz

Arbonne International, LLC, the Irvine, Calif.-based direct seller of personal care and wellness products, today introduced a new chief executive officer: Jean-David Schwartz.

Former CEO Kay Zanotti decided to retire after nine years to spend more time with her family. During her tenure, Zanotti led Arbonne through some of its most successful years since the company was founded in 1980.

Schwartz comes to Arbonne from parent company Groupe Rocher, which acquired Arbonne in March 2018. Schwartz is a seasoned direct selling executive who brings more than 15 years of experience in the industry, most recently as the CEO of Yves Rocher North America. Schwartz’ well-rounded business background includes extensive multicultural, international experience, including working in Africa, Spain, Canada and the U.S.

“I was pleased to be the key liaison during the Groupe Rocher acquisition of Arbonne earlier this year,” said Schwartz. “All of us at Groupe Rocher have been very impressed with the amazing Arbonne culture and community. I am now excited to lead a new journey at Arbonne, to work to evolve and expand the brand, and ensure that the next stage is the best one yet. I am confident that we can turn the steady growth into truly extraordinary results. We want to focus on sharing Arbonne’s mission of healthy living inside and out in bigger and broader ways than ever before.”

Along with Schwartz, two other key Groupe Rocher executives are joining Arbonne full-time: Astrid Van Ruymbeke, chief fnancial officer, and Vincent Taglioni, vice president of Operations. Both Van Ruymbeke and Taglioni have been with Groupe Rocher for more than a decade.

These two executive appointments follow the retirement of Arbonne’s previous CFO, Gretchen Price and the resignation of Arbonne’s previous COO, Glenn Klages. There are no plans to move Arbonne’s corporate headquarters in Irvine.

LuLaRoe, Evel Knievel Family Announce 2-Year Apparel Licensing Partnership

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The Evel Knievel family brand and LuLaRoe, one of the country’s leading family-owned social retailers, today announced a two-year apparel licensing partnership that kicks off this summer with select pieces from the LuLaRoe American Dreams Collection.

This vintage Americana-inspired collection pays tribute to the ’60s and ’70s, with a special ode to Knievel, the American icon whose bravery, risk-taking spirit, and love for family adventure is the Americana age personified.

“We are so excited to partner with the Evel Knievel family and pay tribute to his legacy,” said Mark Stidham, CEO and co-founder of LuLaRoe. “He was such an important part of our country’s history and his spirit continues to influence future generations. He is a true example of what it takes to achieve the American Dream.”

According to Stidham, the partnership is one of the first steps in evolving the LuLaRoe brand to serve Independent Fashion Retailers and their Customers with collaborations that pay tribute to great dads and great role models.

“Evel Knievel is a hero in our modern-day culture—the quintessential risk taker,” said Kelly Knievel. “If you’re an entrepreneur or adventurist, get out of your comfort zone. You don’t have to be an outrageous daredevil but society could learn a lot from Evel Knievel: take intelligent risks, learn from your mistakes, and move onto the next jump—Entrepreneurship 101. Nobody is going to give you anything or recognize you for lack of results.”

LuLaRoe x Evel Knievel (PRNewsfoto/LuLaRoe)

LuLaRoe x Evel Knievel (PRNewsfoto/LuLaRoe)