What: El Corte Inglés unveils 'New Motel' at the Mad Cool festival, featuring interactive brand experiences from Converse, Nike, L'Oréal, and Green Coast.

Why it is important: This initiative is part of El Corte Inglés' strategy to rebrand and attract Gen Z customers, aiming to transform its image and engagement with younger demographics. For more information, please check the takeaways from the IADS Operations meeting dedicated to Marketing Directors.

El Corte Inglés has set up a 'New Motel' at the Mad Cool festival from July 10-13, featuring four themed rooms sponsored by Converse, Nike, L'Oréal, and Green Coast. This initiative, aimed at attracting Gen Z, includes unique experiences such as a Converse-themed reception, a Nike pre-party space, a L'Oréal beauty room, and a Green Coast Glam Cam. Visitors can enjoy photo booths, Instax instant cameras, and various gifts from the brands. This activation is part of El Corte Inglés' broader 'New' campaign, which focuses on rebranding efforts and engaging younger audiences through modern communication strategies and events.

El Corte Inglés launches 'New Motel' experience at Mad Cool Festival

What: Galeries Lafayette Paris Haussmann is partnering with the international campaign to showcase France's audacity and innovative spirit.

Why it is important: This collaboration highlights Galeries Lafayette's role in promoting France's economic dynamism, cultural vitality, and tourist attractions to millions of international visitors, especially during the 2024 summer's major sporting events in Paris.

Galeries Lafayette Paris Haussmann, an iconic Parisian department store, has partnered with the Government Information Service to participate in an international campaign aimed at promoting France's innovative and bold spirit. The campaign focuses on France's economic dynamism, cultural and artistic vitality, and tourist attractions. As part of this initiative, Galeries Lafayette is offering an XXL photocall experience, "Make it iconic. Choose France," from July 3 to August 28, 2024, in front of its historic dome. This event coincides with the third edition of the Galeries Lafayette summer event, French Touch 2024, which is expected to attract 10 million tourists during the Paris Olympic summer. The partnership aims to enhance France's international appeal and share its rich heritage and contemporary lifestyle with global visitors

Galeries Lafayette Paris Haussmann joins France's global promotion campaign

What: Galeries Lafayette Haussmann has opened (Re)-Store Kids, a new second-hand goods area in its children's section, offering pre-loved clothing and toys across three specialized spaces.

Why it is important: The initiative underscores the growing trend and demand for sustainable and circular economy practices in retail. By expanding its second-hand offerings, Galeries Lafayette is catering to environmentally-conscious consumers and promoting sustainability in children's fashion and toys.

Three years after launching (Re)-Store, Galeries Lafayette Haussmann has introduced (Re)-Store Kids, a second-hand retail space on the fifth floor of its Parisian department store. Spanning 85 square meters, the new area focuses on children's ready-to-wear and toys. It features three main operators in the circular economy: Family Affaire, offering brands like Bonpoint and Petit Bateau; Club Trésor, showcasing vintage and upcycled pieces from the 50s to the 2000s; and Kidibam, presenting a selection of vintage and second-hand toys. This expansion highlights the department store's commitment to sustainability and catering to the growing market for pre-loved goods.

Galeries Lafayette Haussmann expands second-hand offerings with (Re)-Store Kids

What: El Palacio de Hierro reported a 23% increase in net profit, reaching USD 71 million in the first half of the year, with a total turnover of USD 1.37 billion.

Why it is important: This growth highlights the robust performance and strategic success of El Palacio de Hierro, particularly in its online sales channel, which saw a significant 36% increase. This success is indicative of the company's ability to adapt and thrive in the evolving retail landscape, maintaining strong growth amidst broader market challenges.

El Palacio de Hierro, led by CEO Juan Carlos Escribano, closed the first half of the year with a 23% increase in net profit, totaling USD 71 million. The company's turnover reached USD 1.37 billion, marking a 9.2% year-on-year increase. This growth is largely attributed to the impressive 36% rise in online sales.

The company's EBITDA also saw a 17% rise, amounting to USD 198 million. El Palacio de Hierro outperformed the average market growth reported by the National Association of Self-Service and Department Stores (ANTAD), with same-store sales growth of 6.6%. The company has also expanded its commercial offerings, adding more Spanish brands and maintaining exclusive partnerships with major luxury brands.

El Palacio de Hierro reports 23% profit increase

What: Falabella's Basement brand will design and produce the uniforms for the Chilean delegation at the opening ceremonies of the 2024 Paris Olympic and Paralympic Games.

Why it is important: This collaboration highlights Falabella's commitment to supporting national athletes and showcasing local design talent on an international stage. It also reinforces the company's brand presence and dedication to high-quality, fashionable attire.

Falabella has announced that its brand Basement will design and produce the uniforms for the Chilean athletes at the 2024 Paris Olympics and Paralympics opening ceremonies. The uniforms, crafted by designers Paula Breve and Catalina Undurraga, feature handmade finishes, noble materials like linen, and the colors of the Chilean flag. The creation process involved over 20 collaborators and took place at Mavesa, Falabella's factory in Chile. Loreto Santa Cruz, general manager of the Olympic Committee, and Angela Casassa, marketing manager of Falabella Retail Chile, expressed their pride and gratitude for this collaboration, which aims to ensure the athletes' comfort and style at this prestigious event. The Olympic opening ceremony will be held on July 26 along the Seine River, and the Paralympic ceremony on August 28 at the Place de la Concorde.

Falabella to dress Chilean delegation for Paris 2024 Olympics

What: Bloomingdale's has launched a new Carousel shop curated by Venus Williams, featuring the exclusive Aqua x Venus Williams collection.

Why it is important: This collaboration with Venus Williams showcases Bloomingdale's commitment to merging fashion and athleticism, offering a unique shopping experience that blends chic athleisure with luxury elements.

Bloomingdale's has introduced its latest Carousel shop, "Game On," curated by tennis star Venus Williams. The shop, available in-store and online, highlights the Aqua x Venus Williams collection, featuring a range of athletic and ready-to-wear apparel inspired by Williams' personal style. The collection includes active sets, cashmere cardigans, and statement pieces designed to empower women. The launch, in partnership with Air France, also includes exclusive items from brands like Anine Bing and Longchamp. The Carousel shop will offer various customer activations and will be open through August 26. Williams aims to create pieces that make women feel confident and powerful, reflecting her passion for fashion and empowerment.

Bloomingdale's gets its 'Game On' with Carousel shop curated by Venus Williams

What: OTB Group has formed a strategic joint venture with Chalhoub Group to expand its luxury brand presence in the Middle East by launching 15 new stores over the next five years.

Why it is important: This partnership marks a significant expansion for OTB in key Middle Eastern markets, leveraging Chalhoub Group's regional expertise to enhance the visibility and accessibility of luxury brands.

Italian fashion conglomerate OTB, led by Renzo Rosso, has partnered with Chalhoub Group to significantly expand its presence in the Middle East. The joint venture aims to open 15 new stores across the UAE, Qatar, Saudi Arabia, and Kuwait within the next five years. This initiative will bolster OTB's existing presence, including the Maison Margiela store in Dubai Mall, and focus on enhancing each brand's e-commerce platforms and local marketing activities. Chalhoub Group, a regional leader in luxury retail, will help integrate OTB's iconic brands into the Gulf region, providing high-quality offerings and personalized customer experiences.

OTB partners with Chalhoub Group to expand in the Middle East

What: The Manor Cultural Prize 2025 has announced its winners from various Swiss cantons, recognizing new talents in contemporary art.

Why it is important: The Manor Cultural Prize is a significant platform for emerging Swiss artists, providing them with exposure, financial support, and opportunities to exhibit their work, which can be a crucial step towards an international career.

The Manor Cultural Prize 2025 has revealed its winners, celebrating the diversity and innovation in contemporary art across Switzerland. The winners include Cassidy Toner (Basel-City and Basel-Country), Noemi Pfister (Graubünden), Sarah Benslimane (Geneva), Andrin Winteler (Schaffhausen), and Lorenza Longhi (Zurich). Each artist will have the opportunity to exhibit their work in a major institution in their respective canton and receive a monographic publication of their works. This initiative, launched in 1982, continues to support young Swiss artists, helping to elevate their careers on an international scale.

The 2025 winners showcase a wide array of mediums and themes, from sculpture and ceramics to painting and video installations. This year's winners explore diverse topics such as desire, existence, and social dynamics, reflecting the Prize's commitment to promoting a broad spectrum of artistic expression. The award not only provides financial support and recognition but also plays a crucial role in fostering the development of Switzerland's vibrant contemporary art scene.

Manor Cultural Prize 2025: new talents awarded!

What: Adidas has opened a new store in Breuningerland Sindelfingen, showcasing its "Home of Sports" concept on a 625-square-meter space.

Why it is important: This store launch coincides with the start of the European Championships, featuring a broad range of products and marking a significant expansion in Adidas's retail footprint in the region, emphasizing sport, culture, inclusion, and sustainability.

Adidas has inaugurated a new store in Breuningerland Sindelfingen to celebrate the European Championships. The store, spanning 625 square meters, offers a variety of products from running shoes to streetwear under the "Home of Sports" concept. Center manager Andreea Risch highlighted the addition as an attractive and versatile brand expansion. To commemorate the opening, Adidas has introduced an oversized version of the official European Championship soccer ball "Football Love," which will be raffled to a regional football club post-tournament. Breuningerland Sindelfingen, managed by Unibail-Rodamco-Westfield, features three floors, 120 tenants, and a shopping area of approximately 52,000 square meters.

Breuningerland Sindelfingen welcomes new Adidas store ahead of European Championships

What: El Palacio de Hierro has opened "Mencare," a new space dedicated to men's personal care, within the "Belleza Palacio" area in four of its stores.

Why it is important: This launch aligns with global trends and the growing demand for beauty and skin care products among men, enhancing the luxury department store's offerings and catering to a broader audience.

El Palacio de Hierro, Mexico's leading luxury department chain, has introduced "Mencare," a dedicated space for men's beauty and personal care, in its stores in Durango, Santa Fe, Interlomas, and Querétaro. This new section within the "Belleza Palacio" area features top brands such as Acqua Di Parma, Clinique, Sisley Paris, and Shiseido, among others, and offers expert-managed personal care experiences. The initiative is part of the company's effort to cater to the increasing demand for men's skincare and grooming products.

El Palacio de Hierro opens its new space "Mencare"

What: Magasin has reported a 1% growth in turnover for 2023 and is investing heavily in new business areas and properties to drive future growth, despite challenges from a recent warehouse move.

Why it is important: Magasin's strategic investments in real estate and new business ventures signify its commitment to long-term growth and resilience. By expanding its omni-channel presence and acquiring new brands, the 150-year-old department store aims to enhance customer experience and increase market share, positioning itself for sustained success in a competitive retail landscape.

Magasin, the historic department store, reported a turnover of 2.9 billion kroner in 2023, reflecting a 1% growth despite logistical challenges from a warehouse relocation. CFO Michael Jelbo expressed satisfaction with the results and highlighted the company's expanded business areas and significant investments as key drivers for future growth. Magasin's parent company, Emil Holding, increased its equity by 148 million kroner, bolstered by earnings from Magasin and returns on its property portfolio. The department store now owns buildings in Aalborg, Aarhus, Odense, Lyngby, and Copenhagen, and has made notable acquisitions, including the sex toy brand Lust, sunglasses company MessyWeekend, and swimwear brand Copenhagen Cartel. Looking ahead, Magasin plans to invest 70 million kroner in enhancing both physical stores and digital platforms, with a focus on improving customer experience through innovative IT solutions and service enhancements.

Magasin bets on properties and investments for growth

What: The General Shareholders' Meeting of Falabella Peru has approved a partial spin-off of the company to facilitate the transfer of assets to Mallplaza.

Why it is important: The spin-off is a strategic move to streamline the asset transfer process to Mallplaza, while also maximizing shareholder returns through a substantial dividend distribution.

Falabella Peru's shareholders have approved a partial spin-off to transfer real estate assets to Mallplaza. This decision, made on June 20, 2024, involves creating a new entity, Inverperú Inmobiliaria SAA, to manage specific assets not included in the Mallplaza acquisition. The spin-off will reduce Falabella Peru's share capital by redeeming over one billion common shares, with Inverperú taking over these assets. Concurrently, shareholders approved a USD 150 million dividend distribution. The transfer, valued at USD 848 million, will expand Mallplaza's presence in Peru to 15 shopping centers. The spin-off and asset transfer are expected to be completed by September, with both Falabella Peru and Inverperú shares continuing to be listed on the Lima Stock Exchange.

Falabella Peru approves partial spin-off as part of transfer of assets to Mallplaza

What: The Mall Group Company Limited is hosting "Innovation Keeping the World 2024," an event focused on sustainable innovation and environmental issues.

Why it is important: The event aims to address global warming and environmental sustainability through showcasing business innovations and promoting sustainable practices. It also encourages customer participation in environmental conservation.

From June 6 to December 31, 2024, The Mall Group Company Limited is organizing "Innovation Keeping the World 2024," an event dedicated to sustainable innovation to combat the global environmental crisis. The event will feature business showcases highlighting sustainable practices through ESG (Environmental, Social, and Governance) principles. Among the highlights is the PET Bottle Machine, an automatic bottle return machine that has garnered significant interest from attendees. The event also includes various campaigns aimed at engaging customers in environmental conservation efforts.

The Mall Group hosts Innovation Keeping the World 2024

What: El Corte Inglés is expanding its low-cost clothing brand Unit by opening standalone stores.

Why it is important: This move signifies El Corte Inglés' strategy to compete more aggressively in the low-cost fashion market against established brands like Primark and Lefties, potentially increasing its market share and brand presence.

Launched in 2017 and initially sold exclusively at Hipercor, El Corte Inglés' low-cost clothing brand Unit is set to expand with its own stores. The brand currently has three locations in Majadahonda, Rivas Vaciamadrid, and Portal de l'Àngel in Barcelona, and plans to open a fourth store in El Escorial. Led by Antonio Travesedo, the project aims to explore further development opportunities, replicating the strategy used for their Sfera brand, which competes with Zara. Unit offers a range of women's, men's, and children's clothing, along with lingerie, footwear, and accessories, employing around 60 people.

El Corte Inglés promotes its low-cost brand Unit with its own stores

What: El Corte Inglés reported its highest Recurring Net Income since 2009, with significant growth across its retail, travel, and insurance sectors.

Why it is important: This milestone underscores the company's robust performance and strategic initiatives, including enhanced profitability, improved efficiency, and strong market positioning in various segments.

In the fiscal year 2023-24, El Corte Inglés achieved a milestone by recording its highest Recurring Net Income since 2009, demonstrating significant growth across its primary business segments: retail, travel, and insurance. The company's Total Transaction Value reached 16,333 million euros, marking a 5.4% increase from the previous year. Retail operations contributed 12,845 million euros, with notable gains in fashion, beauty, food, and hospitality sectors.

The company's EBITDA rose to 1,081 million euros, reflecting a 13.6% year-over-year increase. This improvement was driven by enhanced profitability and operational efficiency. The retail division's EBITDA alone surpassed 840 million euros, while the travel segment achieved a remarkable 84.5% increase, reaching nearly 93 million euros.

El Corte Inglés also achieved significant progress in its online sales, which saw over 900 million visits and more than 17 million online orders, an 8.5% increase from the previous year. The company's financial services and insurance divisions also reported strong performance, with Financiera El Corte Inglés exceeding three million customers and the insurance business recording a 16% increase in policies.

Financially, El Corte Inglés reduced its net financial debt to 2,059 million euros, the lowest level in 16 years, achieving a 1.9x Net Financial Debt to EBITDA ratio. This financial robustness, coupled with the company's solid performance, earned El Corte Inglés an Investment Grade credit rating from Standard & Poor's and Fitch Ratings for the first time in its history.

The company's commitment to sustainability was also highlighted, with significant efforts in resource management, waste reduction, and responsible manufacturing practices. These initiatives earned El Corte Inglés an "AA" ESG Rating from MSCI and the top ESG Risk Rating from Sustainalytics among its peers.

Investments in technology, product development, and store renovations were significant, with 25 stores undergoing refurbishment. Notable renovations included stores in Bilbao, A Coruña, Málaga, and Pozuelo (Madrid), and the acquisition of the iconic building at Puerta del Sol 10 in Madrid.

Overall, El Corte Inglés' fiscal year 2023-24 results reflect a strong and resilient performance across its diverse business lines, underpinned by strategic investments, sustainability commitments, and a robust financial position.

El Corte Inglés releases 2023-2024 fiscal results

What: El Corte Inglés has successfully placed senior bonds worth 500 million euros with strong investor demand exceeding the offer by seven times.

Why it is important: This bond issue marks a significant milestone for El Corte Inglés, reflecting strong investor confidence and providing the company with diversified financing sources. The funds will support general corporate needs and the issuance is backed by an "investment grade" corporate rating from Standard & Poor's and Fitch, highlighting the company's solid financial position.

El Corte Inglés has completed a highly successful bond placement, raising 500 million euros through senior bonds maturing in June 2031 with an annual coupon of 4.25%. The issuance, aimed at qualified investors, saw demand exceeding the offer by approximately seven times, with 240 investors participating. This is the most oversubscribed operation by a Spanish company since November 2020. The strong demand and the investment grade rating from Standard & Poor's and Fitch underscore investor confidence in El Corte Inglés, bolstered by its robust financial performance in the 2023-2024 fiscal year. The company reported a 5.4% increase in revenue to 16,333 million euros and a 73.7% rise in recurring net profit to 359 million euros. The funds from the bond issue will be used for general corporate purposes, further strengthening the company's financial flexibility.

El Corte Inglés places a bond issue worth 500 million euros

What: Bloomingdale's has taken a new direction in terms of product management.

Why it is important: Bloomingdale's is the only US department to carry all categories The Chief Merchant at Bloomingdale's, reflects on the significant strides the 150-year-old department store has made recenrly. Bloomingdale's made substantial enhancements in product assortments, curation, and both the digital and physical shopping experiences. She highlights the role of footwear in driving the store's growth, representing the transition from accessible to aspirational offerings.

Bloomingdale's Chief Merchant on Leading the Retailer's Evolution

What: Nicolas Chambon, president of the commercial operator Socri Limited, announced this Tuesday the opening, in the fall of 2025, of a Galeries Lafayette department store in the Nîmes La Coupole shopping center, which he has owned since June 2021.

Why it is important: On June 11, the president of the Socri Limited group Nicolas Chambon announced the opening of Galeries Lafayette in September 2025 at the La Coupole shopping center. The sales area will cover 3,000 m2 and around fifty jobs will be created. The facade of the brand will extend over nearly 75 meters. Eight dedicated areas will be set up: men, women, shoes, lingerie, leather goods, accessories, jewelry, watches and beauty perfumes. The interior architecture will focus on noble materials such as wood, stone and brass.

Alexandre Liot, director of the Galeries Lafayette stores, shared his ambitions: "It is an ambitious project for Nîmes, a city with very strong dynamics. I thank the town hall which offered a quality environment. […] It will be a small department store on one floor with 3,000 m2 of sales area, 150 brands, with a turnover which will be quite substantial With the town hall, we have a common vision for the City."

Galeries Lafayette opens a new store in the south of France

What: Boyner Group organised a get-together with 350 suppliers end of May, to share with them their results and their vision for the future.

Why it is important: the purpose of this event is to give even more reasons for suppliers to deepen their partnership and increase the surface of business with Boyner, thanks to a glimpse of the group's vision and projects.

At the annual partner meeting, Boyner revealed significant business expansions and strategy refinements under the leadership of Chairman Cem Boyner and CEO Eren Camurdan. Cem Boyner highlighted the company's growth in purchase volumes, from 300 million units in 2022 to 400 million in 2023, amounting to 2.5 billion Turkish Liras. Despite the challenging Turkish market, Boyner plans to continue its expansion with 26 new stores adding to the existing 110, totaling an increase of 320,000 sqm of retail space. The company also reported a substantial 85% growth in its online channels.

Eren Camurdan emphasized the company's adaptive retail strategy, likening it to creating a new impression every day akin to the movie '50 First Dates'. Boyner focuses on enhancing customer experience and assortment, currently offering 600 brands across 12 categories, including local collaborations and private labels. A new retail concept was successfully launched in Istinye Park and is set to evolve at the Tersane site, integrating Costa Coffee into the store design.

Further digital innovations include a new influencer platform, an expanded marketplace featuring 1,000 brands in 27 categories, and 'Boyner Now', which promises delivery of 700,000 products from 75 locations within 78 minutes. Lastly, Boyner plans to host the second Dynamic Fest to promote a youthful and healthy lifestyle in Turkey.

Boyner shares its strategy with suppliers to prepare the future

What: The Mall Group heralds the largest pride in Asia as part of their marketing effort to ramp up Thailand on the regional scene.

Why it is important: This is the first concrete example of The Mall Group's efforts to constitute a group of local retailers and companies aiming at increasing tourism in Bangkok.

Bangkok is set to host Asia's longest Pride parade on June 30, with more than 100 private companies collaborating alongside various government agencies. Supaluck Umpujh, chairperson of the Mall Group and deputy chair of the private network organizing Pride events, announced the parade at a press conference. The parade, spanning 6 kilometres and expecting participation from over a million individuals, aims to bolster Bangkok's reputation as a hub for LGBTQI+-friendly tourism and activities.

The parade will start at the Suphachalasai National Stadium and proceed through major city landmarks, ending with a concert in Benchasiri Queen Park. Prime Minister Srettha Thavisin is slated to inaugurate the event. Key partners include notable Thai corporations and international businesses like Central Group, Siam Piwat Group, Thai Beverage, and Japan Airlines, among others. This initiative not only celebrates the LGBTQI+ community but also supports Bangkok's bid to host World Pride 2030.

The Mall Group heralds Asia's longest pride parad in Bangkok

What: Galeries Lafayette Haussmann is hosting a pop-up for two premium Saudi fashion brands, Abadia and The Dropped Collection, from May 29 to June 25.

Why it is important: This event highlights the growing influence and appeal of Saudi fashion brands in the international market, promoting sustainable fashion and cultural craftsmanship.

Galeries Lafayette Haussmann in Paris is featuring two Saudi fashion brands, Abadia and The Dropped Collection, in a pop-up event as part of its "New Cool" initiative. Running from May 29 to June 25, the event aims to introduce French consumers to these brands' eco-responsible collections made from up-cycled fabrics. Both brands have previously showcased their collections at Paris Fashion Week but are now making a direct retail presence in France. Abadia, founded by Shahd AlShehail, emphasizes craftsmanship with garments featuring intricate details, while The Dropped Collection, launched by Salma Bandar, focuses on minimalist designs with a zero waste policy.

Saudi fashion in the spotlight at Galeries Lafayette Haussmann

What: The Mall Group aims to channel international tourists by teaming up with a variety of actors on the market.

Why it is important: In Asia, a regional movement sees many retailers forging alliances between themselves or with partners to expand their reach.

The Mall Group has expanded its Tourism Ecosystem by partnering with key players in the tourism industry including 16 top airlines, international payment platforms like VISA, Alipay, UnionPay, and WeChat Pay, and significant travel platforms such as Trip.com. This strategic alliance aims to attract foreign tourists during the peak travel months of June to August by offering exclusive privileges and experiences across The Mall Group's department stores. Miss Voralak Tulaphorn, CMO of The Mall Group, highlighted that this move aligns with government policies to enhance tourism revenues and mark 2025 as a pivotal year for tourism in Thailand.

The Mall Group has collaborated previously with over 100 hotels and now extends its partnerships to include major airlines such as Air China, Cathay Pacific, and Emirates, among others. The collaboration offers holistic travel solutions enabling tourists to seamlessly book travel, accommodations, and enjoy shopping benefits. This strategy not only enhances the shopping experience but also integrates various services to offer unparalleled convenience and value to tourists.

Further support comes from partners like Thai Airways, which is expanding its routes to accommodate more tourists, and Trip.com, which anticipates record bookings during this period. Additionally, Visa is enhancing the shopping experience for international tourists by providing special promotions at prominent department stores managed by The Mall Group.

This comprehensive approach aims to boost international tourism footfall in Thailand, leveraging the synergies between shopping and tourism to drive economic growth and enhance the overall visitor experience.

The Mall Group expands tourism network with 35 Partners

What: Olivier Bron, Bloomingdale's CEO, outlines his strategies for growth and innovation, aiming to elevate the department store's relevance in the U.S. market.

Why it is important: Bron's vision emphasizes a blend of international best practices and local insights to revitalize Bloomingdale's, leveraging data, enhancing customer experience, and expanding the brand's reach.

Seven months into his role as Bloomingdale's CEO, Olivier Bron plans to significantly enhance the upscale department store's operations. Bron, who has extensive experience with Central Group in Thailand and Galeries Lafayette in Paris, aims to integrate international retail practices to rejuvenate the U.S. department store scene. His strategy includes increasing localization of events, merchandising, and marketing; leveraging data for better customer insights; and enhancing the accessories business while maintaining a strong focus on ready-to-wear. Bron also plans to renovate key store areas and improve the presentation of major brands. Despite not pursuing international expansion, Bron sees ample growth opportunities within the U.S. and emphasizes the importance of the department store's brand and customer experience. He advocates for a balance of digital and physical retail, aiming for Bloomingdale's to be a leader in both arenas.

Bloomingdale's CEO Olivier Bron shares vision for transformation in first interview

What: Patrick Chalhoub explains the Group's strategy about KSA.

Why it is important: More than any other market in the region, the country has a very high potential, but also significant entry barriers.

Patrick Chalhoub, group president of Chalhoub Group, identifies Saudi Arabia as a significant opportunity for luxury retail, given its young and growing population of 27 million, most of whom are under 30. He credits the Saudi government's Vision 2030 for creating favorable conditions through rapid liberalization and modernization, which has been well-received, particularly among the youth. This societal shift is enhancing business prospects generally but presents unique challenges for the luxury sector.

Chalhoub highlights that the luxury market in Saudi hasn't expanded at the same rate as other consumer industries. Saudis now have diverse options for spending, from travel to entertainment, leading to a reduced share of luxury spending. The rapid pace of societal changes has outstripped the development of necessary retail infrastructure, posing challenges in providing genuine luxury experiences. Consequently, Chalhoub Group has opted to concentrate on enhancing the quality of service in existing stores rather than expanding further.

Additionally, the high VAT rate of 15% in Saudi Arabia, compared to about 5% in neighboring countries, coupled with superior shopping facilities elsewhere, makes it less appealing for luxury shopping. Chalhoub also mentions challenges in employee training and retention, intensified by the nationalization program requiring businesses to hire Saudi nationals.

Looking forward, the group is focusing on a full omnichannel strategy, particularly in beauty sales, which have seen significant growth online. The implementation of AI-driven hyper-personalization is a key strategy for the next five years, aiming to enhance customer loyalty and improve the overall shopping experience.

For Chalhoub Group, Saudi Arabia offers luxury potential