What: John Lewis appoints former M&S marketing director Anna Braithwaite as chief customer officer to revitalise its core brand promise of quality, value and service across all channels.

Why it is important: The appointment comes at a crucial time in John Lewis's transformation journey, following its £800 million investment in retail infrastructure and the successful revival of its "Never Knowingly Undersold" pledge, demonstrating the retailer's commitment to strengthening its customer proposition.

John Lewis has appointed Anna Braithwaite as its new chief customer officer, effective from October 2025, following her successful tenure as marketing director at Marks & Spencer. In her new role, Braithwaite will be responsible for managing John Lewis's marketing and customer experience across all channels, with a particular focus on reinvigorating the retailer's fundamental promise of quality, value, and service. Executive director Peter Ruis emphasised Braithwaite's deep understanding of the John Lewis brand and her customer-centric approach as key factors in her appointment. Her extensive retail experience, including previous positions at Tesco, F&F, Hobbs, and John Lewis itself, positions her well to lead the department store's customer and marketing strategy. The appointment represents a significant return to John Lewis for Braithwaite, who will take up the position following the completion of a non-compete period

IADS Notes: The appointment of Anna Braithwaite as chief customer officer in June 2025 marks a significant step in John Lewis's customer experience transformation. Following the September 2024 revival of the "Never Knowingly Undersold" pledge, which drove a 55% increase in website visits, and October 2024's announcement of an £800 million investment in retail infrastructure, this appointment reinforces the retailer's commitment to modernising its customer approach. The timing is particularly relevant as John Lewis has recently enhanced its digital capabilities, including the February 2025 launch of AI-powered price matching across 25 major competitors. This strategic hire builds upon other customer experience initiatives, such as the successful implementation of new technology investments worth £6 million for digital headsets and mobile payment solutions, demonstrating the retailer's comprehensive approach to blending traditional service values with modern retail innovation.

John Lewis has a new chief customer officer

What: El Corte Inglés reorganises its fashion purchasing structure following Eva Gallego's departure, promoting four internal executives to lead different segments while strengthening the division that generated €4.7 billion in sales last year.

Why it is important: This restructuring shows how traditional retailers are adapting their buying organisations to be more agile and specialised, while maintaining continuity in key revenue-generating departments through internal promotion.

El Corte Inglés has implemented a significant reorganisation of its fashion purchasing structure, dividing responsibilities among four promoted executives following Eva Gallego's departure. The restructuring sees Begoña Cue taking charge of wholesale luxury women's purchasing, while Delfina Gayoso oversees external brand purchases for women's and men's accessories and footwear. Cristina Marconell expands her role from women's purchasing to include men's and youth categories, and Lourdes Cruz adds children's purchasing to her existing lingerie and swimwear responsibilities. All four executives will report to Laura Moreno, who has led the fashion, home, culture, and leisure division since March. This change aligns with broader organisational shifts implemented earlier this year, which strengthened Santiago Bau's role and divided the company's retail operations into three distinct areas. The restructuring demonstrates El Corte Inglés's commitment to developing internal talent while adapting its operations to meet evolving market demands.

IADS Notes: The June 2025 reorganisation of El Corte Inglés's fashion purchasing structure represents the latest phase in the company's comprehensive transformation journey. This change follows March 2025's broader organisational restructuring under CEO Gastón Bottazzini, which established a new Transformation Office , supported by February's €428 million investment in store renovations and digital innovation . The decision to promote internal talent rather than external hiring aligns with the strategic direction set after retail director José María Folache's departure in October 2024 . This approach to leadership in the fashion division is particularly significant given the category's strong performance, with fashion and beauty sales reaching €4.7 billion in 2023, a 3.68% increase , demonstrating the strategic importance of maintaining continuity while driving innovation.

El Corte Inglés reorganises its fashion department

What: Rachel Morgans reveals her strategic approach to fashion retail leadership at John Lewis, highlighting the importance of competition and continuous innovation in maintaining the department store's market position.

Why it is important: This perspective from a key industry leader illustrates how traditional department stores can remain competitive through strategic premium brand expansion and operational agility, particularly relevant given John Lewis's recent addition of 49 new fashion brands.

Rachel Morgans, John Lewis's fashion director, offers a compelling glimpse into the daily operations of a modern retail executive whilst sharing her journey in the fashion industry. Having joined the partnership in June 2024, Morgans brings extensive experience from roles at Topshop, Asos, and Brown Thomas. Her early-morning routine reflects her hands-on approach to leadership, starting before 8am and maintaining a fluid schedule to remain reactive to retail demands. Her fashion perspective, combining tailored pieces with casual elements, mirrors the contemporary approach she brings to John Lewis's fashion strategy. Morgans emphasises the importance of competition in driving innovation and maintains that retail must be more than just a job – it requires genuine passion. Her career trajectory, from denim buying specialist to fashion director, demonstrates the value of diverse retail experience in senior leadership roles. The interview reveals how her background influences her current approach to fashion retail, particularly in understanding and responding to customer needs while maintaining commercial awareness.

IADS Notes: Rachel Morgans' leadership of John Lewis's fashion transformation builds upon a series of strategic initiatives that have reshaped the department store's approach to premium retail. Following the announcement of an £800 million retail transformation investment in October 2024, the company has systematically enhanced its fashion credentials. The February 2025 addition of 49 new brands, including culturally relevant names like S.S. Daley, demonstrated the retailer's commitment to contemporary fashion, while May 2025's launch of the premium Editions collection (£79-£299) showed their ability to identify and fill market gaps. This fashion-forward strategy was enabled by August 2024's restructuring of buying and merchandising teams, which created 48 new specialist roles. The combination of enhanced brand partnerships, premium own-label development, and strengthened internal expertise reflects John Lewis's successful evolution from traditional department store to modern fashion destination.

John Lewis's fashion director strategic approach to fashion

What: Falabella's Haciendo Escuela programme marks 56 years of transformative educational support, now reaching 78,000 students across Chile through strategic school-store partnerships.

Why it is important: The 2024 transformation, including partnership with Corporación Bien Público and focus on measurable outcomes, demonstrates how traditional CSR programmes can adapt to meet contemporary educational challenges.

Falabella's Haciendo Escuela Programme (PHE) celebrates 56 years of continuous educational support in Chile, evolving from a single partnership following the La Ligua earthquake to a comprehensive initiative benefiting 78,000 students. The programme operates through strategic partnerships between 49 Falabella stores and nearby schools, spanning from Arica to Punta Arenas. In 2024, PHE underwent a significant transformation to address learning challenges identified by national SIMCE testing, implementing five strategic pillars: literacy, mathematics, socioemotional skills, school leadership, and volunteerism. This restructuring, supported by Corporación Bien Público, yielded impressive results, with literacy levels improving by 28.6 percentage points and mathematics scores rising by 27.4 points. The programme extends beyond academic support to include higher education scholarships, financial literacy workshops, and leadership development initiatives, reflecting Falabella's comprehensive approach to educational enhancement.

IADS Notes: Recent developments highlight Falabella's expanding commitment to education and community development. In May 2025, the company reported that Haciendo Escuela now reaches more than 78,000 students , a significant increase from previous years. This expansion is supported by a substantial investment plan announced in December 2024 , demonstrating the company's long-term commitment to social impact. The programme's success has also influenced other initiatives, such as the February 2025 launch of an electronics trade-in programme strategically aligned with the back-to-school season , showing how educational support can be integrated with sustainable business practices.

Falabella marks 56 years of educational transformation in Chile

What: OTB Group establishes Mexican subsidiary and partners with El Palacio de Hierro to launch 50 new points of sale for its luxury brands including Diesel, Jil Sander, Marni, and Maison Margiela.

Why it is important: This strategic move demonstrates how luxury fashion groups can leverage established department store networks to rapidly expand their presence in key growth markets while maintaining brand positioning.

OTB Group is making a significant move into the Mexican market by establishing a dedicated subsidiary in Mexico City to oversee its regional expansion. The Italian fashion group, known for its portfolio of luxury brands including Diesel, Jil Sander, Marni, and Maison Margiela, has formed a strategic partnership with El Palacio de Hierro, Mexico's premier luxury department store chain. The collaboration will see the launch of approximately 50 new points of sale over the next five years, extending beyond Mexico City to key regional locations including Guadalajara, Monterrey, León, Cancún, Puebla, and Querétaro. This expansion will be executed through a combination of boutiques and branded concessions within El Palacio de Hierro's network of 31 stores. The initiative represents OTB's commitment to strengthening its presence in North America beyond its existing operations in the United States and Canada, with Mexico being identified as a crucial market for luxury retail growth.

IADS Notes: OTB's strategic entry into Mexico through El Palacio de Hierro comes at a time of significant growth in the country's luxury retail sector. The department store chain has demonstrated remarkable performance, achieving 12% revenue growth and 30% operating profit increase in April 2025, while maintaining its position as the world's second-best department store. The partnership aligns with El Palacio de Hierro's successful track record of introducing international luxury brands, as evidenced by its October 2024 flagship store opening in León, which spans 35,000 square meters and houses over 200 premium brands. The retailer's strong financial results, including 11% revenue growth to $3.2 billion in 2024, and its extensive network of 31 stores across key Mexican cities, provide OTB with a robust platform for establishing its brands in the Mexican market, following similar successful collaborations with prestigious luxury groups like LVMH and Kering.

El Palacio de Hierro partners with luxury group OTB

What: John Lewis expands its circular fashion initiatives by introducing pre-owned designer childrenswear through Kidswear Collective partnership at its Oxford Street flagship.

Why it is important: This strategic expansion of pre-owned luxury into childrenswear demonstrates how department stores are evolving their business models to meet growing consumer demand for sustainable fashion while maintaining premium brand relationships.

John Lewis continues to strengthen its position in circular retail with the launch of a dedicated pre-owned designer childrenswear space at its Oxford Street flagship store. The initiative, in partnership with Kidswear Collective, offers a curated selection of refurbished and past-season designer items for ages newborn to 12 years, featuring prestigious brands like Gucci, Burberry, and Stella McCartney at 60% below original prices. This latest venture builds upon the retailer's successful track record with rental, circular, and pre-loved collections, demonstrating their commitment to sustainable shopping options. The strategic placement within the kids department creates a seamless shopping experience where customers can mix new and pre-owned items. Services & Innovation lead Danielle Gagola emphasises the move's alignment with their broader sustainability goals, while Kidswear Collective highlights how department store partnerships help normalise pre-loved fashion purchases.

IADS Notes: John Lewis's expansion into pre-owned childrenswear represents the latest development in their comprehensive circular economy strategy. Since August 2024, the retailer has systematically expanded its sustainable offerings, beginning with The Little Loop partnership  and extending into luxury resale through Sign of the Times . This approach aligns with their £800 million retail transformation investment announced in October 2024 , which emphasises enhanced customer experiences and sustainability initiatives. The success of these ventures has been evidenced by strong customer engagement, leading to the nationwide rollout of repair services in April 2025 , demonstrating the retailer's commitment to combining traditional retail excellence with modern sustainability practices.

John Lewis to sell pre-owned kidswear with third-party Kidswear Collective

What: Manor orchestrates exclusive Labubu figurine drop at Zurich central station, leveraging Pop Mart's cult collectables to create a high-impact retail event.

Why it is important: The strategy shows how retailers can leverage collectable culture and limited availability to attract younger, digitally-connected consumers.

Manor is expanding its successful Labubu figurine events to Zurich's central station, following strong performances in Geneva and Lausanne. The one-day exclusive drop, scheduled for June 28th at 10am, capitalises on the FOMO (Fear Of Missing Out) marketing principle commonly used in streetwear and sneaker launches. The event will feature Pop Mart's cult collectables, including three distinct series: Labubu, Crybaby – Wild but Cutie, and Skullpanda – L'impressionnisme, each offering different emotional narratives. The figurines have gained significant cultural cachet, with endorsements from celebrities like Dua Lipa and Lisa from Blackpink. Pop Mart's success is evident in their 2024 revenue of $1.2 billion, driven by their blind box model and strategic retail partnerships. The event demonstrates Manor's ability to create urgency and excitement while attracting a younger, urban audience through contemporary pop culture trends.

IADS Notes: Manor's Labubu event strategy reflects broader trends in experiential retail and pop culture merchandising. According to WWD's October 2024 coverage , pop-up shops have become crucial for creating urgency and exclusivity, particularly in high-traffic locations. Inside Retail's February 2025 analysis showed how retailers are successfully combining digital integration with cultural elements to enhance customer engagement, with blind box collectables proving particularly effective. LUXUS PLUS's January 2025 report revealed how retailers are moving beyond temporary installations to create meaningful brand experiences that prioritise emotional connection over immediate sales. The Robin Report's October 2024 coverage highlighted Manor's broader strategy of modernising its retail approach through exclusive brands and themed experiences. The Zurich station event, following successful activations in Geneva and Lausanne, demonstrates how retailers can effectively leverage pop culture collectables to create compelling shopping events that drive both traffic and engagement while attracting younger audiences.

Manor creates the buzz thanks to Labubu dolls

What: John Lewis's transformation strategy sparks employee petition as partnership model evolves from annual bonuses to enhanced monthly compensation.

Why it is important: This employee response to John Lewis's strategic shift demonstrates how heritage retailers must carefully manage the human impact of organisational change, particularly in employee-owned businesses.

John Lewis Partnership faces mounting pressure from its workforce to reinstate staff bonuses after a three-year hiatus, despite reporting a 73% increase in pre-tax profit to £97 million. The campaign, which has garnered nearly 4,000 signatures through the Organise platform, reflects growing tension between modernisation efforts and traditional partnership values. Employees argue that the bonus represented more than financial reward, symbolising recognition of their contribution to the business's success.

The retailer's decision to maintain the bonus suspension comes alongside significant investments in employee compensation, including a £114 million commitment to base pay increases. This strategic shift prioritises regular monthly support over annual bonuses, with store staff receiving up to 9.4% pay rises. However, some workers contend that reduced staffing levels and increased workloads warrant additional recognition, particularly given the company's improved financial performance.

Chair Jason Tarry has expressed determination to reinstate bonuses when feasible, while the company emphasises its focus on improving base pay and business investment. This situation highlights the delicate balance between maintaining the partnership's unique employee-owned structure and implementing necessary business transformation initiatives.

IADS Notes: The current employee petition reflects broader changes in John Lewis's strategy since March 2025, when the company announced its £114 million investment in base pay alongside a 73% profit increase. This transformation includes an £800 million commitment to store renovations revealed in October 2024, which has already shown positive results through the modernised "Never Knowingly Undersold" pledge. The February 2025 introduction of 5,000 apprenticeships and increased shop floor staffing demonstrates the company's attempt to balance traditional partnership values with modern retail demands, though employee reactions suggest this transition remains challenging.

John Lewis and Waitrose face demands to reinstate bonuses

What: Galeries Lafayette transforms its rooftop into an Air France-themed dining destination, featuring Business Class menus created by three-star chef Régis Marcon and award-winning pastry chef Nina Métayer.

Why it is important: This innovative partnership demonstrates how department stores can leverage unique brand collaborations and prime locations to create distinctive experiences that attract both local and tourist customers.

Air France is bringing its premium dining experience to the heart of Paris through an innovative partnership with Galeries Lafayette. From June 25 to August 20, 2025, the department store's rooftop will host an exclusive restaurant offering Air France's Business Class menu. The culinary experience has been crafted by three-star Michelin chef Régis Marcon and "World's Best Pastry Chef 2023" Nina Métayer, featuring sophisticated French cuisine served in specially designed tableware by Jean-Marie Massaud. The restaurant, accommodating twenty covers with two lunch services daily, will recreate the intimate atmosphere of Air France's airport lounges while offering panoramic views of Paris. Located on the 8th floor, the venue includes both indoor dining space and an outdoor terrace, providing guests with spectacular views from the Eiffel Tower to Montmartre, with the Opéra Garnier as its immediate neighbour.

IADS Notes: The Air France rooftop restaurant initiative at Galeries Lafayette builds upon a series of successful experiential retail developments in Paris. In September 2024, the department store demonstrated its expertise in culinary experiences with an exclusive dining event under its iconic dome, setting a precedent for innovative food partnerships. This approach aligns with the store's EUR 400 million investment plan announced in February 2025, which emphasizes customer experience enhancement and flagship modernization. The strategy has already shown results, with November 2024 reporting a 15% sales increase driven by experiential retail initiatives. The trend extends beyond Paris, as evidenced by Printemps NYC's March 2025 focus on customer dwell time and dining experiences, confirming how department stores are increasingly using gastronomy to create unique retail destinations.

Galeries Lafayette partners with Air France for ephemeral restaurant

What: Bloomingdale's consolidates its fashion leadership by expanding David Thielebeule's role to oversee both men's and women's ready-to-wear, streamlining its fashion director structure to three key positions.

Why it is important: This strategic consolidation reflects a broader retail trend toward integrated merchandising leadership, optimising decision-making while strengthening the connection between product curation and customer engagement.

Bloomingdale's has expanded David Thielebeule's role to encompass both men's and women's ready-to-wear fashion direction, marking a significant evolution in its organisational structure. This appointment, which sees Thielebeule taking over the women's rtw responsibilities from Janelle Lloyd, is part of a broader strategy to streamline the fashion director roles to three key leaders. The restructuring aims to strengthen the connection between merchandise storytelling, brand discovery, and customer engagement across all touch points. Alongside Thielebeule, Marissa Galante Frank continues as accessories and beauty fashion director, while Kelley Carter maintains her position as home fashion director. The company has also created a new beauty editorial and events specialist role to enhance brand narratives in the beauty space. This reorganisation aligns with Bloomingdale's integrated marketing team strategy and its larger Dream Big initiative, which focuses on reimagining growth through innovation, creativity, and experiential retail.

IADS Notes: Bloomingdale's appointment of David Thielebeule as men's and women's fashion director in June 2025 aligns with the retailer's broader transformation strategy. This move builds upon several successful initiatives, including the immersive "From Italy, With Love" campaign in August 2024, which demonstrated the company's ability to create compelling retail experiences through curated merchandise and brand storytelling. The streamlining of fashion director roles complements December 2024's digital innovation efforts, when Bloomingdale's partnered with Lucky platform to enhance its omnichannel capabilities. Under CEO Olivier Bron's leadership, this focus on strategic merchandising and enhanced customer experience has yielded positive results, as evidenced by the strong 3.8% comparable sales growth in Q1 2025. Thielebeule's expanded role, with its emphasis on connecting merchandise storytelling and brand discovery, represents another step in Bloomingdale's evolution toward a more integrated and customer-centric retail model.

Bloomingdale's men's fashion director adds women's fashion to its role

What: Falabella demonstrates marketplace momentum through Seller Day event, highlighting partner brands' 74% contribution to growth and technological advancements.

Why it is important: This development showcases how department stores can successfully transition to digital platforms, leveraging partner relationships and technological infrastructure to drive sustainable growth.

Falabella's latest Seller Day brought together more than 450 brands to review progress and outline e-commerce priorities for 2025. The event highlighted significant achievements in the company's digital transformation, with first-quarter GMV increasing by 17%, largely driven by partner brands contributing 74% of that growth. A key operational milestone was reached with 60% of orders now delivered within 48 hours, demonstrating the company's commitment to meeting evolving market demands. The gathering focused on operational efficiency, technological infrastructure enhancement, and omnichannel strategy consolidation. Beyond celebrating success, the event emphasised the importance of continuous seller support and recognised seven brands for their outstanding performance in the digital ecosystem. Industry experts, including Sebastián Cisterna discussing artificial intelligence's impact on retail and Roberto Izikson presenting digital consumption projections, provided valuable insights into future trends. The company reinforced its commitment to building a comprehensive platform where technology, logistics, and user experience align with contemporary industry standards.

IADS Notes: Falabella's marketplace success builds upon significant investments and strategic initiatives throughout the past year. In December 2024, the company announced a $650 million investment plan, with $166 million dedicated to technological capabilities. This digital transformation yielded impressive results, as seen in February 2025 when the group reported an eight-fold profit increase to €486 million. The success of their omnichannel strategy was further demonstrated in May 2025 with an 11% overall sales increase driven by 19% retail growth, while their April 2025 Fmedia retail media platform achieved 30% sales growth for participating brands.

Falabella outlines its roadmap for e-commerce in 2025

What: Xavier Niel acquires BHV's men's building on rue de la Verrerie for EUR 50 million as Galeries Lafayette continues its strategic asset optimisation programme.

Why it is important: This development represents a significant step in Galeries Lafayette's strategic transformation, as the group continues to streamline its portfolio and concentrate resources on core operations.

Xavier Niel's NJJ Holding has acquired BHV's men's building at 36 rue de la Verrerie in Paris for approximately EUR 50 million. The 8,500-square-meter property, which combines modern and Haussmann-style architecture, features entrances on both rue de la Verrerie and rue du Temple. The transaction comes as part of Galeries Lafayette group's broader strategy to concentrate on core assets. This property was not included in the scope of the main building's takeover by SGM group, which has been operating the store since 2023. SGM is currently in exclusive negotiations with Banque des Territoires to secure financing for acquiring the 45,000-square-meter main building on rue de Rivoli. The sale aligns with Galeries Lafayette's recent strategic decisions, including discontinuing the Eataly franchise and Bazarchic operations, as the group focuses on strengthening its flagship department store operations.

IADS Notes: The sale of BHV's men's building reflects Galeries Lafayette's ongoing strategic transformation. This move aligns with the group's EUR 400 million investment plan announced in February 2025, focusing on network optimisation and flagship renovation. This transaction follows other strategic decisions to streamline operations, including the closure of Bazarchic and discontinuation of the Eataly franchise in December 2024.

Galeries Lafayette sells the men's BHV building to Xavier Niel

What: Falabella brings together 450 brands to address e-commerce challenges, highlighting 74% marketplace contribution to GMV.

Why it is important: The success of Falabella's marketplace strategy, with 74% GMV from sellers and 60% of orders delivered within 48 hours, sets new standards for e-commerce efficiency in Latin America.

Falabella's fourth Seller Day convened 450 brands to address key e-commerce challenges in an increasingly demanding retail landscape. The event concentrated on operational efficiency, technological development, and omnichannel strategy enhancement. The company's first-quarter performance showed strong momentum, with GMV up 17%, predominantly driven by marketplace sellers. The achievement of 48-hour delivery for 60% of orders demonstrates significant progress in meeting regional logistics standards. Industry experts, including AI specialist Sebastián Cisterna and Cadem's general manager Roberto Izikson, provided valuable insights on retail transformation and consumer behaviour trends. Pedro Jiménez, Sell-In E-commerce Manager, emphasised their commitment to building comprehensive propositions that support brand growth through technological and logistical capabilities. The gathering identified crucial challenges facing digital retail, particularly in logistics optimisation, technology support for SMEs, and maintaining commercial momentum beyond peak seasons.

IADS Notes:

Falabella's marketplace success builds upon significant developments throughout the past year. In December 2024, the company announced a $650 million investment plan, with $166 million dedicated to technological capabilities. This digital transformation yielded impressive results, as seen in February 2025 when the group reported an eight-fold profit increase to €486 million. Their commitment to innovation was further demonstrated in April 2025, when their Fmedia retail media platform achieved 30% sales growth for participating brands.

Seller Day: Falabella brings together 450 brands to address e‑commerce challenges for 2025

What: Fitch revises El Corte Ingles' outlook to positive from stable and affirms its BBB- rating, citing improved business performance and successful deleveraging efforts.

Why it is important: This rating action demonstrates how traditional department stores can strengthen their financial position through strategic transformation, combining operational improvements with disciplined financial management.

Fitch Ratings has upgraded El Corte Ingles' outlook to positive, while maintaining its BBB- rating. The retailer has shown impressive financial discipline, with EBITDAR net leverage expected to trend down to 2x by FY27. The company reported strong business performance in 1HFY25, achieving 3.6% like-for-like revenue growth and improving its EBITDA margin by 70 basis points to 7.5%. This success stems from growth across multiple segments, including fashion, beauty, home electronics, food, and travel. The rating agency particularly noted ECI's strategic focus on retail operations, enhanced digital capabilities, and the financial flexibility provided by its EUR15.5 billion real estate portfolio. Despite lower profitability than some sector peers, ECI's diverse business model and dominant market position in Spain provide stability and growth potential.

IADS Notes: El Corte Ingles' positive outlook revision in June 2025 reflects broader trends in department store transformation. The retailer's success in improving margins while maintaining market leadership aligns with recent industry developments, where successful retailers are balancing digital innovation with physical asset optimisation. This follows Selfridges' February 2025 strategic initiatives  and parallels Harvey Nichols' transformation plan announced in February 2025 . The focus on operational efficiency while maintaining strong customer experience mirrors Fortnum & Mason's approach, which earned them recognition as the world's best department store in January 2025 . ECI's strategy of leveraging its real estate assets while investing in digital capabilities demonstrates how traditional department stores can successfully modernise their business models.

Fitch revises El Corte Ingles' outlook to positive, affirms at 'BBB-'

What: John Lewis Partnership requires commercial team members to work three days per week in office, stores, or with suppliers from July 2025.

Why it is important: having downsized headquarters from 220,000 to 108,000 sq ft., the decision demonstrates how major retailers are reimagining their workplace strategies post-pandemic, prioritising collaborative learning and development while efficiently managing their property portfolios.

John Lewis Partnership has announced a significant change to its workplace policy, requiring commercial team members, including those in buying and merchandising roles, to spend three days per week working from office locations, stores, or with suppliers starting July 2025. This directive aims to foster improved collaboration and create an environment conducive to learning and development, with particular emphasis on supporting new recruits. The move represents an evolution of the retailer's 2021 hybrid working model, which allowed head office staff to choose their work location based on job requirements. While maintaining flexible working as a key component of its employment offer, the company has strategically downsized its head office space, relocating from a 220,000 sq ft location in Victoria to a more efficient 108,000 sq ft site in Pimlico. The retailer confirms it will have sufficient desk capacity to accommodate staff during their required office days, ensuring a smooth transition to this new working arrangement.

IADS Notes: John Lewis's June 2025 mandate for increased office presence aligns with its broader transformation strategy throughout 2024-2025. This workplace policy shift follows the successful streamlining of its staff committee structure earlier in June 2025 , demonstrating the company's focus on enhancing collaboration and decision-making efficiency. The move is supported by strong financial performance, with March 2025 reporting tripled profits and a £114 million investment in staff development . This organisational evolution builds upon the August 2024 restructuring of buying and merchandising teams , reflecting how the retailer is optimising its operations while maintaining its commitment to staff development and collaborative culture.

John Lewis orders staff back to office three days a week

What: H&M expands its premium positioning by launching Adorables, a high-end children's collection, at Galeries Lafayette Haussmann through a permanent corner, following its successful test at Selfridges London.

Why it is important: The expansion reflects the evolving relationship between mass-market retailers and luxury department stores, showing how strategic brand positioning can create mutually beneficial partnerships in the premium segment.

H&M's strategic entry into Galeries Lafayette Haussmann with its premium childrenswear line 'Adorables' marks a significant milestone in the brand's upmarket evolution. The 63-square-metre permanent corner, situated on the fifth floor of the iconic department store, showcases a carefully curated selection of clothing for children aged 0-10 years. The space features a contemporary design with wooden fixtures, rounded tubular racks, and pastoral touches that reflect the collection's premium positioning. The offering spans three distinct segments - newborn, baby, and children's wear - with an emphasis on natural materials such as organic cotton, silk, and merino wool. This permanent installation follows a successful pop-up at Selfridges London, demonstrating H&M's commitment to establishing itself in luxury retail environments while maintaining its quality standards and sustainable practices.

IADS Notes: H&M's expansion into Galeries Lafayette Haussmann builds upon its successful premium retail strategy throughout 2024-2025. In October 2024, the brand first tested this approach with an Adorables pop-up at Selfridges London , establishing the concept's viability in luxury retail environments. This move aligns with H&M's broader transformation, evidenced by its November 2024 implementation of innovative store concepts and digital integration. The timing is particularly significant as it coincides with Galeries Lafayette's €400 million investment plan announced in February 2025 , focused on optimising its store network and enhancing premium partnerships. This collaboration also supports Galeries Lafayette's April 2025 CSR strategy , which emphasises sustainable and premium retail experiences.

Galeries Lafayette welcomes H&M's premium kidswear, Adorables

What: To accelerate its turnaround plan, John Lewis Partnership is enhancing its democratic model by strengthening local forums while streamlining its partnership council from 57 to 43 members.

Why it is important: This strategic refinement of John Lewis's partnership model shows how employee-owned businesses can evolve their democratic processes while strengthening grassroots engagement, particularly relevant as the company continues its successful transformation.

John Lewis Partnership is revitalising its democratic structure through a strategic reorganisation of its staff representation model. The partnership council, the retailer's most senior staff committee, will be streamlined from 57 to 43 members this autumn, while simultaneously strengthening local forums across its department stores and Waitrose supermarkets. This change aims to create more effective channels for employee input and faster decision-making processes. The move comes as part of the company's broader transformation strategy, which has already shown success with tripled profits and a £114 million investment in staff pay. The retailer emphasises that the council's fundamental power and governance role remain unchanged, with the restructuring focused on reducing hierarchical barriers and enhancing direct communication between management and store-level employees.

IADS Notes: Recent developments provide important context for this governance evolution. In March 2025, John Lewis reported tripled profits to £126 million while implementing a significant shift in employee compensation, moving from annual bonuses to enhanced monthly support. This approach aligns with broader organisational changes, including May 2025's modernisation of staff benefits to reflect contemporary workforce needs. The timing is particularly significant as it follows February 2025's successful revival of the "Never Knowingly Undersold" pledge and the implementation of an £800 million store renovation programme, demonstrating how improved governance can support both operational efficiency and employee engagement in retail transformation.

John Lewis plans to streamline its staff committee to boost its turnaround plan

What: Gulf luxury market achieves 6% growth to $12.8 billion while global markets contract, driven by beauty sector expansion and strategic digital transformation.

Why it is important: The success of the Gulf's luxury ecosystem provides a blueprint for market development, showing how regional retail groups can outperform global trends through strategic adaptation and local market understanding.

The Gulf region's luxury market has demonstrated remarkable resilience, achieving 6% growth to reach $12.8 billion while global markets experienced a 2% decline. This success story is particularly evident in the beauty segment, which saw an impressive 12% growth, with skincare leading at 17% and Asian beauty brands showing exceptional performance with 26% annual growth from 2022 to 2024. Under Michael Chalhoub's leadership, the company is implementing comprehensive digital transformation initiatives while maintaining focus on personalised customer experiences. Saudi Arabia emerges as a key strategic priority, currently representing 18% of the regional luxury market and showing double-digit growth in 2024. The company's commitment to local engagement is reflected in their support of homegrown Saudi brands and their workforce development, with women comprising 70% of their 5,000 Saudi employees. Their digital transformation strategy, including AI implementation and enhanced logistics capabilities, aims to address the region's 13% e-commerce penetration while maintaining high-touch customer service. Tourism dynamics continue to evolve, with Russian tourists leading luxury spending in the UAE and regional consumers increasingly preferring local shopping destinations.

IADS Notes: The Gulf region's impressive 6% luxury sales growth to $12.8 billion reflects a series of strategic transformations in the market. In November 2024, Chalhoub Group's implementation of comprehensive digital solutions  laid the groundwork for enhanced operational efficiency, while their successful skincare summit in October 2024  demonstrated deep understanding of regional beauty trends. This digital and experiential focus was further reinforced in April 2025 when Mall of Emirates unveiled its $1.36 billion transformation plan , emphasising the region's commitment to innovative retail experiences. The January 2025 leadership transition to Michael Chalhoub  has accelerated these initiatives, particularly in Saudi Arabia's evolving luxury landscape. These developments align with global trends showing digital channels' growing importance, as evidenced by social commerce now driving 68% of beauty sales , validating the region's strategic focus on digital transformation while maintaining traditional retail excellence.

Chalhoub's outlook on the region's growth and the company's strategy to reach $15 billion by 2027

What: Falabella launches Flea Market, a curated second-hand fashion space in Parque Arauco, partnering with local vintage experts Nostalgic and The Vintage Sisters to offer premium pre-owned fashion.

Why it is important: This initiative demonstrates how department stores can successfully integrate circular fashion into their premium offering through expert curation, while addressing growing consumer demand for sustainable and meaningful consumption.

Falabella's Flea Market represents a sophisticated approach to circular fashion retail, combining expert curation with accessible pricing. The space features carefully selected second-hand clothing, footwear, and accessories evaluated by a specialized team of over 20 professionals. Through partnerships with local vintage experts, the initiative offers two distinct shopping experiences: Nostalgic provides urban and functional pieces from brands like Levi's and Nike starting at 10,700 Chilean pesos, while The Vintage Sisters curates conscious luxury items from prestigious brands such as Dior, Gucci, and Acne Studios with discounts of 10-20% off original prices. This curated approach ensures quality while maintaining accessibility, reflecting evolving consumer preferences for meaningful and sustainable fashion choices. The initiative's success will determine its longevity, complementing Falabella's existing circular fashion programs including Taller F, the Trueque Fair, rental services, and textile recycling points.

IADS Notes: Falabella's Flea Market launch builds upon the company's comprehensive sustainability strategy. In May 2025, the retailer reported significant progress in its circular initiatives, with over 66,000 garments recovered through F Workshops and 38 tons of clothing recycled . This success follows the Feria Trueque program, which facilitated more than 31,516 item exchanges in 2024 . The company has supported these initiatives through educational programs like Verde Talks , demonstrating a holistic approach to sustainable retail transformation.

Falabella advances its circular fashion strategy with flea market in Parque Arauco

What: Peru emerges as a key market for Falabella Group, contributing 28% of regional revenue and 20% of EBITDA through a diverse portfolio of retail formats and financial services.

Why it is important: This market success illustrates the effectiveness of integrated retail ecosystems that combine traditional retail, financial services, and digital platforms to create comprehensive customer experiences.

Falabella Group's country manager in Peru, Alex Zimmermann, has revealed the significant scale of the company's operations in the country, highlighting Peru's strategic importance to the group's regional success. The company posted strong performance in the first quarter, with regional sales reaching $3.3 billion, representing a 9% increase, while EBITDA grew by 59%. Peru's contribution of 28% to regional revenue and 20% to total EBITDA underscores its crucial role in Falabella's ecosystem. Since entering the Peruvian market in 1995 through an alliance with Saga, the company has successfully expanded its presence to include 34 Falabella Retail stores, 90 Tottus stores, Bodegas UNO locations, and 56 Maestro and Sodimac stores, alongside Banco Falabella branches and Mallplaza shopping centers. The company's focus on customer-centric innovation and digital transformation has driven significant e-commerce growth, with online shipments increasing twentyfold during the pandemic, demonstrating the success of its integrated approach to retail evolution.

IADS Notes: Falabella's announcement of Peru's 28% contribution to regional revenue in June 2025 builds upon a series of strategic successes across Latin America. This performance follows an exceptional period where the company multiplied its profit by eight to €486 million in 2024, with particularly strong growth in Peru (15.7%) and Chile (3.8%). The company's multi-format strategy has proven successful, supported by a significant $650 million investment plan announced in December 2024, which allocated $450 million for store openings and shopping center transformations. This expansion is complemented by substantial investments in customer experience, including the implementation of one-day delivery services supported by a $27 million investment in distribution center automation. The success of this integrated approach is evident in Q1 2025's results, which showed an 11% overall sales increase driven by 19% retail growth, demonstrating how Falabella's balanced approach to physical and digital retail continues to strengthen its position as a leading regional retailer.

Peru accounts for 28% of Falabella's regional revenue, with plans for further growth

What: El Palacio de Hierro receives its tenth ESR Distinction for social responsibility excellence from Cemefi and AliaRSE.

Why it is important: This milestone reflects the growing importance of long-term commitment to sustainability in retail, particularly in emerging markets like Latin America.

El Palacio de Hierro has achieved its tenth ESR (Socially Responsible Company) Distinction from the Mexican Center for Philanthropy (Cemefi) and the Alliance for Corporate Social Responsibility. Presented at the 18th Latin American Meeting of Socially Responsible Companies, this year's recognition is particularly significant as Cemefi implemented a new evaluation model that assesses the development level of socially responsible management in participating companies.

The distinction acknowledges El Palacio de Hierro's achievements in workplace quality of life, environmental stewardship, business ethics, and community engagement. This voluntary certification process requires annual review and ongoing compliance with established standards. According to Maridelia Saucedo, Director of Well-being and Social Responsibility, the achievement represents their collective commitment to building positive community impact while strengthening an organisational culture based on ethical and sustainable principles.

IADS Notes: El Palacio de Hierro's ESR recognition complements its strong business performance in 2025. The company reported 11% revenue growth in February while implementing innovative retail solutions across 450 points of sale in January. This sustainable approach contributed to its recognition as the world's second-best department store, demonstrating how ethical business practices enhance retail success

El Palacio de Hierro receives the ESR 2025 Distinction award for the tenth time

What: John Lewis pledges to restore staff bonuses while maintaining its enhanced base pay strategy, responding to employee campaign demanding recognition of their contributions.

Why it is important: The employee response to John Lewis's compensation strategy reveals how heritage retailers must carefully manage the human impact of organisational change, particularly in employee-owned businesses with strong cultural traditions.

John Lewis Partnership faces mounting pressure to reinstate its historic staff bonus system, suspended since 2022, as thousands of current and former employees campaign for its return. The retailer's leadership, including chair Jason Tarry, has committed to restoring the bonus "as soon as possible" while emphasising their focus on improved base pay rates, including a recent 7.4% increase in 2025. The company's decision to prioritise regular monthly support over annual bonuses reflects a broader transformation in its compensation strategy, having invested £114 million in base pay improvements and infrastructure development. However, employees argue that the bonus represented more than just financial reward, serving as a symbolic recognition of their contribution to the business's success. This tension comes amid improved financial performance, with the company tripling its profits, leading workers to question the continued suspension of the bonus scheme while dealing with reduced staffing levels and increased workloads.

IADS Notes: The current employee campaign for bonus reinstatement reflects a complex transformation in John Lewis's compensation strategy. In March 2025, despite tripling profits to £126m, the company prioritised a £114m investment in base pay, implementing a 7.4% pay rise for store staff. This shift from annual bonuses to enhanced monthly compensation coincides with broader modernisation efforts, including reaching 5,000 apprenticeships in February 2025 and revising the benefits structure in May 2025 to double eligible staff numbers. However, the June 2025 employee petition highlights the cultural significance of the bonus system within the partnership model, demonstrating the delicate balance between modernising employment practices and maintaining traditional values in retail transformation.

John Lewis promises to restore staff bonus 'as soon as possible' following campaign

What: El Corte Inglés introduces new management incentive plan aligned with 2025-2030 strategic objectives, focusing on operational efficiency and digital transformation.

Why it is important: This development reflects the retail industry's shift toward performance-based compensation tied to specific transformation objectives.

El Corte Inglés has approved a new management incentive program as a key component of its ambitious 2025-2030 Strategic Plan, developed in collaboration with McKinsey. The initiative, to be presented at the July 24th shareholders' meeting, aims to align executive interests with the company's long-term business objectives. The plan focuses on enhancing profitability, optimising cost structures, and accelerating digital transformation across the group's network of 72 department stores in Spain and two in Portugal. Key performance metrics include sustained operational profitability improvement, structural cost reduction, new business line development, and advancement in online commerce and omnichannel capabilities. The incentive structure is designed to reward executives who demonstrate measurable contributions to these strategic goals, positioning El Corte Inglés for success in an increasingly competitive retail environment.

IADS Notes: El Corte Inglés' new incentive plan represents a crucial component of its broader transformation strategy. According to Modaes' October 2024 coverage , the company partnered with McKinsey to develop a comprehensive strategic plan following several years of financial adjustments. Inside Retail's February 2025 analysis revealed how the company has invested €428 million in upgrading 25 locations while expanding digital capabilities, demonstrating its commitment to balancing traditional retail strengths with innovation. Press Release's June 2025 report showed the strategy's early success, with FY2024-25 like-for-like growth of 4.3% and EBITDA reaching €1.2 billion. El Confidencial's March 2025 coverage highlighted how the creation of a new Transformation Office under CEO Gastón Bottazzini, along with expanded responsibilities for key executives, supports the implementation of these strategic initiatives. The new incentive plan's focus on operational efficiency, cost reduction, and digital transformation aligns with these broader strategic objectives, ensuring management's interests are directly tied to the company's long-term success.

El Corte Inglès new strategic plan focuses on performance and cost reduction

What: El Palacio de Hierro renews its commitment to UN Women's Women's Empowerment Principles (WEPs), implementing concrete initiatives like Women to Women mentoring while achieving its tenth consecutive ESR Distinction.

Why it is important: This dual achievement demonstrates how retailers can successfully integrate international standards with practical workplace initiatives, creating a measurable impact on gender equality whilst maintaining strong business performance.

El Palacio de Hierro has reinforced its commitment to gender equality through a symbolic renewal of its adherence to the UN Women's Women's Empowerment Principles (WEPs). The company, which first joined the initiative in 2022, aims to align its operations with international gender equality standards in the corporate sector. Maridelia Saucedo Wolf, Director of Wellness, Inclusion and Social Responsibility, presented the company's progress, highlighting internal equality policies, inclusion committees, and programmes such as Women to Women, which focuses on professional development through women-to-women mentoring. The company's renewed commitment to WEPs reflects its recognition of the importance of gender equity and its dedication to fostering a fair, inclusive, and equitable environment for all team members. This announcement coincides with El Palacio de Hierro receiving the ESR 2025 Distinction from Cemefi and AliaRSE, marking its tenth consecutive year as a Socially Responsible Company, acknowledging its sustained commitment to corporate ethics, environmental stewardship, workplace conditions, and community engagement.

IADS Notes: El Palacio de Hierro's commitment to gender equality and social responsibility comes amid a period of significant transformation and success. According to Modaes in February 2025, the company achieved impressive results with 11% revenue growth to $3.2 billion in 2024, demonstrating the effectiveness of its comprehensive strategy. This momentum continued as Modaes reported in April 2025 that the company secured 12% revenue growth and a 30% operating profit increase in Q1 2025, validating its balanced approach to business and social responsibility. The company's excellence was further recognised when Fashion Network announced in January 2025 that El Palacio de Hierro had been named the world's second-best department store. A significant milestone in the company's evolution came in May 2025, as reported by Press Release, with the appointment of Eléonore de Boysson as its first female CEO, exemplifying its commitment to gender equality at the highest level. This commitment to social responsibility was formally acknowledged in June 2025, when ExpokNews reported the company's achievement of its tenth consecutive ESR Distinction, underlining its sustained dedication to ethical business practices and social impact.

El Palacio de Hierro renews its commitment towards equality in the workplace