IADS Exclusive Insights
Why bother with eco-labels?
Why bother with eco-labels?
What: Sustainability is at the forefront of everyone's minds in the fashion world, and it is a major driver of consumer decisions.
Why it is important: Sustainability labels are becoming too complex. Going forward, transparency, accountability, and traceability will be essential for the success of any business connected to fashion.
Sustainable, eco-friendly, natural, and green are some words you might see written on the tags of clothing and other fashion goods. Introductions of labels, certifications, and standards related to sustainability have multiplied, but what do they really mean? To what extent are these initiatives making a difference versus just making businesses and consumers feel better about consumption habits and routines? Are businesses genuinely encouraging conscious brands and consumer habits, or are they merely checking off their CSR requirements?
IADS Exclusive - Why bother with eco-labels? - full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 09 June 2021.
Retail Review #4: unforgettable experiences
Retail Review #4: unforgettable experiences
Keeping markets under close watch, IADS collected innovative concepts such as unique transformative experiences presented by stores as shoppers demand physical connectivity and community following the isolation of the pandemic.
Check out how retailers are drawing customers back into stores through these unconventional experiences that can only be appreciated physically in stores.
IADS Exclusive - Retail Review #4: unforgettable experiences - full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 02 June 2021.
IADS Exclusive - Prepare for a change in retail jobs
IADS Exclusive - Prepare for a change in retail jobs
*As retail is undergoing major evolutionary changes, so retail jobs are evolving. The possibilities of automation and the application of AI as well as social and political changes force a radical reassessment of retail functions and organisation structures to improve service and performance. At all levels, retail jobs are shifting, reskilling, being automated, or being deconstructed and redesigned for new retail models.
What: Two trends are developing in the world of retail work: a shift away from store-based work (which is becoming increasingly skilled), towards technology mediated fulfilment work. At the same time, jobs are being reassessed and deconstructed as part of a search for a new retail productivity deal.*
Why it is important: Both of these affect retail, and specifically omnichannel department stores,
- as its store-based business shrinks relative to the online business
- as it struggles to find a new profitability model
The IADS has already written about "working from home", "remote work" and "hybrid work" as it applies to retail during and after the covid pandemic. What is covered here is a longer-term adjustment in a broader economic cycle.
IADS Exclusive - Prepare for a change in retail jobs - full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 26 May 2021.
Business Case #6: Monoprix, your new wellness guru
Business Case #6: Monoprix, your new wellness guru
Monoprix, the French urban variety store accounting for EUR 5 billion (USD 4.1 billion) annual turnover, 800 locations throughout 250 cities is launching an interesting and unprecedented concept, "La Santé au Quotidien" (translating to "Everyday Health"). It is developed as a corner dedicated to health and wellness offering products and services. The concept is currently being fine-tuned in 2 stores since mid-April 2021 and is scheduled to be rolled out in other stores and on the retailer's website later this year. After months of pandemic and non-essential stores closed, the importance of essential-rated products to the business is clear. And at a time when health is at the centre of many people's lives and while traditional cosmetics consumption is being replaced by care, it seems like a smart move for Monoprix.
Business Case #6: Monoprix, your new wellness guru - full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article  from the IADS members-only newsletter date 19 May 2021.
NFTs: the missing link between physical and digital retail
NFTs: the missing link between physical and digital retail
What: NFTs are an application of blockchain that is entering and changing the fashion industry as we know it.
Why it is important: Brands such as LVMH and Nike are leading the way, innovatively implementing NFTs into their business models for the long run.
The global pandemic has accelerated trends, especially in terms of technology and transparency. Although many buzzwords are being thrown around, it is not very easy to understand how blockchain technologies, cryptocurrencies, and NFTs (non-fungible tokens) could impact the way businesses offer their products to consumers. The big question that arises now is do we need to act fast, or can we ride out this latest tech wave until it passes? In order to answer that, we first need to understand what exactly the technology offers and what opportunities have arisen since its inception.
NFTs: the missing link between physical and digital retail - full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 12 May 2021.
IADS Exclusive - Sustainability series #6 Ecocert
IADS Exclusive - Sustainability series #6 Ecocert
What: The number one certifying body of France, and a standard that ensures that a range of products are ecologically produced and sourced.
Why is it important: The certification can be internationally recognized across various sections of department stores from apparel to cosmetics.
As more and more sustainability certifications and labels enter the textile and cosmetics industries, the worldwide adoption and recognition of these standards can become easily blurred or even lost. So, why not turn to the label that started it all? Ecocert was the first certification body to develop standards for natural and organic products and has created a globally recognized standard to provide certified environmentally-friendly products.
Sustainability series #6 Ecocert - full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 05 May 2021.
The IADS 100 List : Global perspective on a diverse format
The IADS 100 List : Global perspective on a diverse format
The IADS office is launching an observatory of 100 department store companies around the world for members' information and to keep track of changes in the format. The companies are not selected by size since the list includes small businesses which may nevertheless be representative of the format in their country. The list is a subjective sample which expresses the diversity of the format, both as it exists today and as it has transformed itself since its beginnings in the 19th Century. The list will be updated and act as a tracker of the format around the world. The very diversity of department stores revealed by the list is an asset when companies share their particular strengths in a group such as the IADS.
The IADS 100 List - full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 28 April 2021.
All you need to know about Buy Now Pay Later
All you need to know about Buy Now Pay Later
Buy Now Pay Later (BNPL) financing solution is not new, and retailers already know for years such interest-free instalment plans. While basically being a loan, it is nowadays marketed as a convenient payment option and has steadily and quietly developed over the 2010's. Covid-19 only accelerated its growth as both retailers and consumers found great interest in such a payment method
All you need to know about Buy Now Pay Later- full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 21 April 2021.
What should we do with our stores? Close some and change others
What should we do with our stores? Close some and change others
Many department store companies today are struggling with their physical store legacy. Stores may be too big, too many or unsuitable. Some big decisions are currently being considered in the light of the acceleration of trends provided by covid, the apparent disaffection of customers with stores and the declining profitability of the existing department store model. Some companies are closing stores, some are upgrading them, and others are considering different business models.
What should we do with our stores? - full article (IADS Members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 14 April 2021.
Retail Review #3: luxury concept stores
Retail Review #3: luxury concept stores
Keeping markets under close watch, IADS collected innovative concepts related to key topics such as luxury experience, contemporary models, and reinvention.
Check out what luxuy stores are thinking up to capture customers' attention in the third edition of the Retail Review.
Louis Vuitton, Tokyo:Inspired by reflections of water expressed through the building's rippling exterior, the luxury retailer's Tokyo flagship location has been completely transformed by Jun Aoki and Peter Marino. The store offers a full range of collections with upper levels dedicated to VIP clients.
Hermès, Tokyo:As Hermès reopened one of its Paris locations, it also opened a new flagship store in Tokyo inside one of Omotesando's most notable buildings. Upon entering, customers can peruse silk, jewellery, beauty, perfume, leather, and equestrian collections for both men and women.
Hermès, Paris:Hermès' beautiful flagship on Rue de Sèvres in Paris has undergone a year-long renovation with its central striking feature of three huts made from ash wood, which the VIP lounge overlooks. The store has been fully reorganized to house evolving product lines, including its recently launched colour cosmetics collection.
Browns, London:The London store is the newest manifestation of Farfetch's Store of the Future, blending digital and physical experiences by using an app that connects with interactive mirrors to give recommendations and provide product details.
Kith, Paris:In Paris, visitors are presented with a restored Carrara marble staircase that falls under a chandelier-adorned ceiling crafted with resin-cast Nike Air Max 1s. The space presents Sadelle's restaurant in the courtyard and a basement level used as a rotating gallery space.
Swarovski, Paris:Moving away from the accessibly-priced space, a crystal Willy Wonka factory concept appeals to a wider audience to showcase the brand's shift into luxury. As customers sit on a sofa surrounded by walls of colourful jewellery, salespeople bring the products on trays for a personalised experience.
Diesel Hub, Shanghai:In an effort to converge living, dining, working, and shopping, Diesel has partnered with RTG Consulting and Muse Group to unveil a new concept for the brand called "Diesel Hub" in Shanghai. The 900 sqm retail space offers a Diesel Brave Bar that proposes food, beer, and specially developed spirits.
Retail Review #3 - full article (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 07 April 2021.
IADS Exclusive - Sustainability series #5 GOTS
IADS Exclusive - Sustainability series #5 GOTS
What: A certification with strict environmental and social criteria for operations along the entire textile supply chain.
Why is it important: The recognition of the GOTS certification across consumers and business channels has grown incrementally year over year and has a direct impact on purchasing and partnership decisions.
Textiles have proven to be an important good in the past year as COVID-19 has called upon many industries to shift their supply chains to answer the increasing demand for masks and medical supplies needed around the world. To continue the sustainability series, we will explore one specific certification that addresses organic textile production: the GOTS certification. As consumer interests in the transparency of the supply chain connected to their fashion brands continue to rise, department stores need to promote their GOTS products and partnerships and ensure that there are sufficient organic products available for these environmentally aware consumers.
Sustainability series #5: GOTS - full article (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 31 March 2021.
IADS Exclusive - Paris gourmet scene panorama and directions for development
IADS Exclusive - Paris gourmet scene panorama and directions for development
Grocery and gourmet food businesses have dramatically evolved over the past few years. Whether it's online shopping thriving or consumers' appetite for quality and organic products, the retail food economy has faced massive changes. In France alone, households' organic food expenditures annual turnover went from EUR 3.15 billion in 2009 to EUR 11.3 billion in 2019.
Thinking about Paris is thinking about fashion, but also food as it occupies a leading position on the gourmet scene. But how has it evolved? Has Covid-19 accelerated existing trends? When it comes to department stores, have they changed the way they run this part of the business? In order to feed our thinking, IADS is offering here a review of Parisian gourmet department stores together with a few ideas to develop this business and some insights into other business models.
Paris gourmet scene panorama and directions for development - full article (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 24 March 2021.
The Vitra Session
The Vitra Session
The IADS attended the following Vitra Session on 11 March 2021 which considered the pros and cons of working from home or returning to the office at a time when even large companies are polarised on the issue, some abandoning physical offices altogether while others put in place incentives to lure employees back to the office. What we at IADS have called "hybrid working", Vitra label "distributed work" and make the point that if this model represents the future, then it needs serious reflection, innovative organisation and clear communication.
The Vitra Session - full article (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 17 March 2021.
Department stores selling books and culture
Department stores selling books and culture
Department stores today rarely offer books, music, films and other "cultural" goods. These have reverted to specialists, chains and online retailers. However, the chains have consolidated and are doing less well; and the digital retailers appear to have peaked, while smaller, local booksellers are gaining in popularity. Is it possible that department stores could once again find a place for these goods in their local offer which has gained in popularity during the covid pandemic?
Department stores selling books and culture - full article (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 10 March 2021.
Business case #5: Macy's & Nordstrom abandon new concepts
Business case #5: Macy's & Nordstrom abandon new concepts
Two significant US department store groups, Macy's and Nordstrom, acquired small innovative formats, respectively Story and Jeffrey, and abandoned them in 2020, perhaps not entirely because of the Covid pandemic. What explains their failure to use these opportunities, and what lessons can be learnt by department stores searching for a new lease of life?
Even before the pandemic, Macy's outlined a major restructuring plan involving substantial cost savings, the closing of over 125 stores and the cutting of up to 4000 jobs. These measures went hand in hand with a new strategy called "new North Star" meant to turn around the country's largest department store group. Among those leaving the company since the pandemic is Story founder Rachel Shechtman , who arrived when Macy's acquired the innovative New York concept store in 2018 and created a post just for her called "brand experience officer". At the time the move seemed to usher in an era of reinvention for the department store group, together with the investment in start-up b8ta.
The same year 2020 saw the departure from Nordstrom of Jeffrey Kalinsky, founder of Jeffrey, which Nordstrom had acquired in 2005. Jeffrey's success, particularly in the Meatpacking District which contributed in no small part to the gentrification of that area of Manhattan, was seen at the time as an effort on the part of the upscale department store to renew itself and help modernise its fashion appeal. After the Nordstrom acquisition, Kalinsky worked in a variety of executive roles at the department store company while still running Jeffrey in New York, Atlanta and Palo Alto. It has now been announced that the stand-alone stores would also close (as well as 16 full-line department stores).
Two examples of well-established department stores acquiring successful and innovative concepts, as well as acquiring the founders' expertise, in an avowed effort to rejuvenate the department store concept, then abandoning the project (admittedly in a covid year) with little to show for it. Why does it appear to be so difficult for a traditional department store to learn from a radically different but very successful retail format?
Macy's & Nordstrom - full articles (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 24 February 2021.
Business case #4: Debenhams and Topshop buyouts
Business case #4: Debenhams and Topshop buyouts
Who doesn't remember a trip to Oxford Street to check on the competition or just feel the consumption frenzy? Well, the Oxford Street and the high street we used to know will not be the same anymore. Debenhams and Topshop collapses are a brutal reminder of department stores and clothing chains struggle, private equity mismanagement, lack of strategy and then Covid-19 dramatically speeding up the process. Even though the brick-and-mortar shutdowns trend is global and rampant, we might find ourselves at a turning point, especially in the United Kingdom, with Boohoo and Asos buying bits of Debenhams and Topshop.
What has happened to the famous British retailers? What are Boohoo and Asos's buying strategies aiming at? Are Debenhams and Topshop buyouts specific business cases? Is there a new pattern to be observed?
Business case #4 - full articles (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 17 February 2021.
Remote working: what can department stores learn from the great RW experiment?
Remote working: what can department stores learn from the great RW experiment?
Companies have been exploring the possibilities of remote working for many years. In fact, remote work has even, in some cases, been implemented then abandoned. Department stores have been forced into remote work by the current pandemic. Or at least some of the department store functions have been. Is this likely to become a permanent feature of our retail businesses? If so, what might it look like in more detail? Remote working has raised major issues for HR departments, as well as for management. If the practice becomes widespread, remote work will also have implications for city life and consumer spending more broadly, and therefore on department store customers.
Remote working - full articles (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 10 February 2021.
Sustainability series #3: The B Corp Certification
Sustainability series #3: The B Corp Certification
What: A third-party certification emphasising transparency and accountability.
Why it is important: Its approach includes all stakeholders, which makes it a "fashionable" certification when advertised to the public.
While the pandemic is increasingly emphasising the idea that shareholder capitalism seems no longer adapted to the challenges companies have to face, there is no consensus yet on what should replace the "profits first" approach. But the growing influence of the triple bottom line (profit, people, and the planet) in corporate governance and the need for companies to take all stakeholders into account has led to the emergence of a new certification, called "B Corporation".
Sustainability series #3 - full articles (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 03 February 2021.
Retail Review #2: sustainability & community
Retail Review #2: sustainability & community
Keeping markets under a close watch, IADS has gathered innovative concepts related to key topics such as sustainability, local retail and community, and multichannel experiences:
- Green Pea: a mixed-use centre gathering under one roof fashion, food, culture and leisure with one common motive: sustainability, carried out by Oscar Farinetti, the business man who created famous food chain Eataly.
- Nike Unite: the latest concept from the sports retailer, focusing on the physical and digital shopping experience for local customers. Throughout the space, the store highlights its staff, local partnerships and the story of the community by including local landmarks and hometown athletes; it is designed in such a way that the local residents feel represented.
- OREFICI 11: U.S. retail group VF Corp has opened a multi-brand space in Milan featuring three brands from the group' portfolio: Timberland, Napapijri, and The North Face. The space successfully mixes physical and digital experiences, showcasing new ways to do retail in the covid world.
- Moncler: The luxury winterwear brand opened it biggest store worldwide on the avenue des Champs-Elysées in Paris. The store has been imagined like a Parisian flat, with a corridor leading to several rooms, and was designed using noble material such as marble, wooden floor and moulding ceilings.
- Foot Locker: a concept dubbed Community Power Store debuted in 2019, that expands to Canada. The three-floor retail experience includes an activation space where events can be hosted for the local community with key brand partners.
- Alhambra: located in Berlin, it is a multi-concept space where local brands and artists showcase their work. The store provides a full-service amplification kit for emerging brands by offering a space, a built-in social media campaign, impressive staging, as well as professional salespersons and event managers. The space will open during spring 2021.
Retail Review #2 - full articles (IADS members only)
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 27 January 2021.
Business Case: Subscription retail
Business Case: Subscription retail
Retail is all about maximising the productivity of stores, and making sure each square metre is contributing to the overall margin. Is it still true in a world where online sales are growing, sometimes at the expenses of the sales performed instore? How do you maintain the profitability level, linked by definition to the traffic and its quality, when customers are stuck at home due, for instance, to a pandemic?
In many industries, the question is acute, and various players have been looking at innovative solutions to maintain their profitability level. We explore in this article the different models at hand with examples from all industries: members' clubs, subscription boxes, Saas, and rundles.
Subscription retail is growing as it fits the new customer's mindset of living an experience instead of owning "things". Interestingly, it also corresponds to the central role of department stores: a place mixing experience and curation in landmark buldings in the heart of our towns.
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 20 January 2021.
Virtual stores: the future of retail?
Virtual stores: the future of retail?
With the pandemic, the past year brought its share of new initiatives and the year ahead is going to be no different. Retailers in the world, which endured many weeks of closure in 2020 (up to 30% of total opening time) and are still threatened by further lockdowns in 2021, had to reinvent themselves to reach out to customers directly in their homes.
Remote shopping played a significant part in retailers' survival via new or upgraded digital tools, such as virtual stores. This new channel provides a more inviting shopping experience than a simple ecommerce and safer than physical shopping. For instance, on a webstore the customer scrolls and browses through a series of pages showing one article next to the other. By contrast, a virtual store is an immersive experience supported by interactive elements allowing customers to actually be in the store; which these are sometimes a perfect replica of the physical spaces. Customers navigate the store and see the products on the shelves, almost as if they were in the physical space. It is a mix between a webstore and a virtual reality experience.
Brands have started to use this new format during lockdowns. After the pandemic it could very well be a valuable tool for department stores too.
Review of the strengths and limits of this format to determine if it could become a valuable option for department stores.
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 13 January 2021.
Department store Holiday campaigns
Department store Holiday campaigns
An international health crisis, with more than 1.6 million lives lost worldwide; lockdowns in almost all countries following the waves of virus cases, with unprecedented impacts on the economy; tourism almost totally halted, adding to the pain of retailers: there is no doubt that 2020 is a year to forget.
However, this year and more than ever, department stores remain true to their mission to spread hope, magic and wonder, and there is a worldwide competition in creativity and ingenuity to this year's Christmas celebrations. IADS collected the seasonal windows of all major department stores worldwide in addition to those of IADS members, for a much-deserved moment of retail magic.
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 16 December 2020.
Sustainability series #2: The Higg Index
Sustainability series #2: The Higg Index
While every brand and retailer today is trying to figure out how to stay in the sustainability game, we have seen in the first IADS Exclusive article dedicated to sustainability that there are many different ways to become more sustainable. However, for a company to develop its own sustainability programme is becoming increasingly complex and expensive, and common initiatives like the Higg Index seem to be a silver bullet.
The Higg Index - playfully named after the Higgs Boson elementary particle - is an indicator-based assessment tool for apparel and footwear products that aims to create a single industry approach to measuring environmental and social sustainability throughout the supply chain. Launched in 2011, it was developed by the Sustainable Apparel Coalition (SAC), a non-profit organization founded by a group of apparel brands, retailers, the U.S. Environmental Protection Agency and other non-profit entities.
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 09 December 2020.
Business case: Frasers Group
Business case: Frasers Group
United Kingdom is living dark days as both the pandemic and the Brexit are putting huge pressure on the country's economy, and the retail sector has not been spared. The recent announcement of large retail group Arcadia filing for bankruptcy, and department store chain Debenhams entering liquidation, are another blow in the UK retail sector.
Frasers Group, ex Sports-Direct group, is a UK-based retail group that has been expanding its fashion and luxury portfolio over the past few years, trying to shift away from the sports tag toward a luxury brand. After the acquisition of Flannels and British department store chain House of Fraser, and the stakes in Mulberry and Hugo Boss, the group appears to be trying to establish itself as a lifestyle and luxury retailer.
IADS reviews the opportunities and risks for the group to elevate in this trouble timing.
IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 03 December 2020.
