What: the group details the impact of Covid-19 on the results

Why is it important: new SOGO department store is still due to open in 2023

Facing the unprecedented health and economic crisis, Lifestyle International has swiftly implemented critical strategic measures to mitigate the negative impact of the COVID-19 pandemic and adapt to the rapidly changing retail environment.

With a lower base of comparison in the previous period, decline of the Group's gross sales revenue narrowed to 19.6% in the second half of the year, from a drop of 53.5% in the first half of 2020, and reported a 39.9% decline for the full year.

The Group's turnover decreased by 43.7% over the previous year to HKD 1.993 million, as result of a significant fall in customer foot traffic at the stores stemming from the containment measures of COVID-19 pandemic.

The Group's operating profit for the year fell 50.9% to HKD 801 million from HKD 1.632 million recorded in 2019.

Sales at the flagship SOGO Causeway Bay as a result plunged 36.2% for the full year whereas sales at SOGO Tsim Sha Tsui tumbled 57.7% from a year earlier.

"Looking ahead, management continues to hold a pessimistic outlook for Hong Kong's retail market. With the fluctuating local pandemic situation and continued restrictions on cross-border travel, retail businesses will continue to face pressure " Ms. Kam Shim Lau, Executive Director of Lifestyle International, said.

Despite a slight delay in construction, the Group's Kai Tak Project is still planned to open in 2023. The construction of the twin blocks of commercial buildings will host a new SOGO department store and complementary retailing, entertainment, dining and lifestyle facilities in the new Kai Tak development area, East Kowloon.

Lifestyle group 2020 annual report

What: Victor del Pozo, Managing director, is ranked fourth among the best CEOs in Spain by the independent consultancy Brand Finance, "Spain 100 2021".

Why is it important: according to the annual report of the most valuable and strongest brands in Spain, Del Pozo ranked one of the most valued CEOs in the country. Víctor del Pozo Gil (Madrid, 1966) is an economist, has an MBA from the Instituto de Empresa (IE Business School) and completed the Program for Management Development (PMD) at the IESE Business School. Being an expert in the world of food and the field of purchasing, he is also well-versed in online business, which has enabled him to drive the Group's digital transformation.

Although El Corte Inglés is going through a period of internal restructuring with store closures and staffing adjustments, it is the brand in the Spanish retail sector that experienced the highest increase in brand value (brand value up 11.7% to 5,204 million euros), as it was able to easily embrace the shift to online shopping with the incorporation of innovative services such as In-Store Pickup and Click&Car.

Victor del Pozo brand finance

Marcas mas valiosas de España brand finance

ESPAÑA 100 2021 Informe anual de las marcas más valiosas y más fuertes de España

Related item:

• El Corte Inglés raises brand value

What: retail sales grew by 43% while online sales grew by 122%

Why is it important: the last quarter showed recovery and positioned Chile as the most profitable market for the company

Results were due to the good performance of supermarkets and home improvement businesses, supported by the pension fund withdrawals.

In the case of Chile, the department stores' format grew by 41% thanks to a 119% increase in online sales. Home improvement grew by 45.5% and supermarkets also reported a 40.8% growth. Banco Falabella, meanwhile, showed a 20.9% drop in revenues in the quarter, mainly explained by a 16.1% year-on-year decline in the loan book.

Falabella's general manager, Gastón Bottazzini, noted that "in the year we focused on strengthening our Marketplace proposal and announced the consolidation of Falabella.com as an e-commerce platform; we strengthened our logistics capabilities and created a new unit to combine the last-mile logistics of our retail and third-party businesses to shorten delivery times and improve customer service"

Canal digital le salva el año a Falabella y utilidades logran repuntar en la última parte del año

Related items:

• Falabella focuses on digital transformation
• With 75% of Falabella stores being currently closed, e-commerce to be strengthened

What: The move towards omnichannel is part of a three-year strategic plan.

Why is it important: The company had to put e-commerce on hold for over a decade due to consumer behaviour and infrastructure issues.

Supaluck Umpujh, the company's chairwoman, announces The Mall's return to digital commerce after 15 years. The company will launch two shopping websites - M Online and Gourmet Market Thailand - and also approach customers on other platforms such as social medias and online marketplaces.

Despite being behind other players in digital commerce, there is still an opportunity for growth for the company as the ratio of e-commerce to retail businesses in Thailand is still small (3% comparing to 9% in Japan, 22% in South Korea, 25% in China).

"We are extremely confident that the launch of these two platforms will be a big step towards providing a complete omnichannel experience", Supaluck Umpujh said. The Mall Group's chief marketing officer, added that a budget of more than THB 100 million (USD 2,73 million) had been allocated to e-commerce development. The Mall Group will also engage in full-scale omnichannel marketing campaigns, targeting 20 million page views on M Online's website by the first year.

After the first year, The Mall Group expects sales from digital commerce to reach THB 2 billion (USD 64 million). This revenue will account for 15% and 25% of total physical stores in the next three years and five years, respectively.

Food and non-food items are the key categories as they account for 38% of business, followed by electronic products at 31%, general merchandise and beauty and fashion at 20% and 11%, respectively. Demand for food and non-food items rose by 161% in 2020, while demand for beauty and fashion grew 94% followed by general merchandise by 63% and electronic products by 35%, respectively.

The Mall group returns to e-commerce

What: In order to enhance customer experience, Falabella launches "Taller F" (translating as "Workshop F"), a customisation service which will be available in Chilean stores.

Why is it important: Customers can customise their garments thanks to several techniques such as patches, laser prints, studs and embroideries. More than 60 options are available to be used on jeans, jackets, bags, backpacks and slippers, as well as bath and bed linens.

Falabella's new customisation service

What: the department store is launching a new website landing page and emphasizes safety measures

Why is it important: the new landing page shows all services and shopping options enforced to engage with customers

It offers visitors the following information and links:

• Opening hours and kerbside pickup maps
• Link to e-shop
• Link to phone call center
• Link to Whatsapp shopping experience
• Link to Rappi (third party courier shopping app) for Restaurant & Gourmet
• Link to Personal Shopping & Gourmet

The document below shows all safety measures that have been taken by El Palacio de Hierro.

El Palacio de Hierro presentation

What: the retailer details the impact of Covid-19 on the results

Why is it important: ecommerce reached double-digit profitable growth

Revenue in Magasin decreased from DKK 2.865 million (USD 459 million) to DKK 2.577 million (USD 413 million) primarily due to the COVID-19 pandemic and the lockdown period that significantly affected Magasin's brick-and-mortar department stores. (Fiscal year is from September 1, 2019 - August 31, 2020.)

Magasin delivered an acceptable performance in 2019/20, in the context of an unprecedented challenging trading environment, with only food spaces and online available for trade for nearly two months. All seven of Magasin's brick-and-mortar stores remained temporarily closed between 18 March and 10 May 2020, although with better than expected results post re-openings and trade levels very close to the same period last year. Without lockdown, management estimates that the year's financial result would have been in line with the previous year.

Magasin.dk reached double-digit profitable growth in 2019/20, reflecting the success of Magasin's continued investments in this area. Magasin.dk is our most visited store.

During 2019/20 Magasin launched a new Goodie rewards loyalty programme in an effort to remain relevant in the modern retail environment.

Magasin was closed down by the Danish government once again from the 17 December 2020 due to COVID-19 restrictions. As the global COVID-19 pandemic continues to have a negative effect on physical retailing, Magasin expects revenue and net profit for the financial year 2020/2021 (September 1, 2020 - August 31, 2021) to be in line with the same period in 2019/2020. The company is currently exploring the government's relief packages, and it is estimated by the management that there is no uncertainty related to the company's ability to continue as a going concern.

Magasin du Nord 2019-2020 annual report

What: the retailer announces new strategy to consolidate everything into a single marketplace

Why is it important: Falaballa is one of the few traditional retailers in the region that can be digitised

Falabella's fourth quarter closed with a profit of USD 195 million, which compares to USD 111 million equal in 2019. Carlo Solari highlights these recent results: they added more than three million new customers to his e-commerce and more than 10 million customers participated in loyalty program. They sold USD 3 335 million in e-commerce, an increase of USD 1 840 billion in this way. Another result that stands out is the increase of USD 446 million in sales after implementing the marketplace, a platform on which they sold a total of USD 763 million.

But it wasn't all digital. Sales of the same physical stores in all their markets grew more than 22% despite restrictions and thanks to the 10% withdrawal from pension funds allowed by government.

Carlo Solari says: "we are creating this new platform or ecosystem that we call physical-digital, in which we are building on what we had: physical stores, distribution centres, loyalty system and financing systems. We don't want to be a B-version of a digital company. We have our own brands, a know-how, a position and capillary that is what we want to take advantage of."

"Before the pandemic, every business developed its e-commerce. With the pandemic any expectation was exceeded, because demand multiplied by three and four, while we had many restrictions to operate. That is why we streamline - and announce - this strategy to consolidate everything into a single marketplace: Falabella.com. Thus, Falabella, Sodimac, Tottus and Linio will operate with that platform."

"Given the work we have done and what we had already done in the past in the bank and in the financial business, we are one of the few traditional retailers in the region that can be digitized."

Carlo Solari's interview in Chilean press

What: Falabella and Linio announced the acquisition of 30 shared electric vehicles for their deliveries

Why is it important: Falabella's latest effort through more sustainable operations

Falabella and Linio (Falabella's marketplace) are expected to deliver between 2 100 and 3 000 orders per day with new electric vehicles. The fleet will first cover deliveries in Bogota, before reaching major cities such as Medellin, Cali and Barranquilla.

"We are very happy to announce this milestone together. For Falabella, the care of the environment is, and will always be a priority. Having Linio in this alliance only reinforces our commitment and demonstrates the sustainable path that we will create hand in hand in the world of retail and e-commerce," said Rodrigo Fajardo President of Falabella Colombia.

Falabella y Linio también tendrán flota eléctrica

What: El Corte Inglés and MásMóvil announced the launch of Sweno, a mobile and fibre operator

Why is it important: El Corte Inglés business model is evolving

MásMóvil Group, the operator leading the market in recent years, and El Corte Inglés have signed a strategic agreement to launch a virtual mobile and fibre operator. The commercialization of converged telecommunications services will be carried out through "Sweno", El Corte Inglés owned brand.

"This alliance is part of the evolution of our business model" says Víctor del Pozo, CEO of El Corte Inglés. On MásMóvil's part, CEO Meirad Spenger has also welcomed the partnership: "It is a great satisfaction to continue to develop our long-term collaboration with El Corte Inglés and to support them in launching their communications and connectivity services."

These services will be available in the department stores.

El Corte Inglés press release

El Corte Inglés to launch Sweno

What: SM Investments Corporation has announced results for the full year to end December 2020.

Why is it important: The group's consolidated revenues were down 21% at PHP 394.2 bn while earnings decreased by 48% to PHP 23.4 bn. Of that total, banking represented 55%, property 33% and retail 12%. In the property division, two malls opened in Mindanao in Q4, and the malls continued to support their retail tenants.

The retail division including SM Store department stores, specialty and food retail had revenues down overall by 19% although the food saw an increase. SM Store was down 52% to PHP 54 bn, with a loss of PHP 2.7 bn. There are now 66 department stores covering 817 000 sqm.

According to management, all divisions are active in their support of stakeholders and are innovating to address changed customer needs and behaviour.

SM FY2020 Investor and Analysts Briefing

What: A new service proposed by Beco in Venezuela

Why it is important:even though the Venezuelian market might not be as mature as in other countries, national leader Beco sees a potential in this new service for VIPs

Beco has launched a furniture leasing service addressing VIPs with products from brands Abstracta and BoConcept. The system allows customers to change their interior design as often as they want, with a plan on 6, 12, 18 or 24 months, with the possibility to buy the piece of furniture as the end of the plan.

This new service has already been launched, with a very positive response, and is tapping on the new appetite of customers for home design and decoration

Complete leasing campaign

What: Breuninger received the EHI Award 2021 in the category "Best Customer Experience" at the Retail Technology Awards.

Why is it important: this award shines a light on Breuninger's digitisation strategy

With this award, the EHI Retail Institute honours an innovative digitisation project. This comprehensive omnichannel tool is implemented in the Nuremberg store which opened in September 2020.

Quality, service and comfort are optimized in a variety of ways, offering customers a modern shopping experience. Through digital touchpoints, customers receive information about Breuninger store, product availability and product information from other Bruninger locations. The concept includes digital changing rooms, a click & collect and online reservation service, as well as the ability to book appointments with beauty advisors.

Breuninger press release

Breuninger receives a technology award

What: Eibar store in northern Spain will be transformed

Why is it important: The Spanish retailer adapts to ecommerce surge through a major digital innovation project

El Corte Inglés is converting one of its department stores located in Eibar in northern Spain into a fulfilment centre for online orders. The department store chain wants to serve the entire Basque Country, especially focusing on food deliveries.

It is the first branch to become part of the chain's major digital innovation project. El Corte Inglés wants to focus fully on e-commerce, especially for food, and is therefore thoroughly reviewing its real estate portfolio. Several less profitable stores will be closing, including one in Barcelona, while a number of office buildings and logistics centres will be put up for sale.

The Eibar store will be ready for use within the next few months. The warehouse will contain 25 000 different products but the premises will also become a service centre. Digital customer and support services will be centralised on-site, both for the company and for third parties, including telecom operator Sweno of which El Corte Inglés is a co-founder.

Nevertheless, consumers will still be able to visit the former department store: part of the shopping centre will become a proper 'digital store'. Customers will not be able to see the products as such, but can consult online catalogues, place orders and check the availability of goods in neighbouring department stores.

El Corte Inglés turns department store into distribution centre

What: Breuninger CEO calls for store reopening

Why is it important: the interview follows nationwide lawsuits submitting urgent requests for reopening

Holger Blecker has received great support from the industry and far beyond. Since 16 December 2020, the lockdown measures have greatly deprived the retail sector, so the industry urgently needs an opening perspective to secure the future.

Breuninger has been profitable for years both in store and online. However, the stores have been closed for almost three months now. Even the most solid company would suffering from lockdown consequences.

Federal and state government will discuss the situation on 3 March and Holger Blecker is asking for a reopening as well as a long-term strategy to deal with the pandemic, recent studies showing stores are not considered a source of infection.

Modehaus-Chef warnt: Für viele Betriebe ist die Lage dramatisch"

Related items:

• Breuninger is going to court in 6 federal states
• Breuninger turns red in protest
• Galeries Lafayette expects to return to a pre-crisis level in 2024

What: Mexican department store has accelerated its digital transformation

Why is it important: customer service has been emphasized as well as luxury offered

While the Mexican department store group's overall sales decreased last year due to the pandemic —from USD 1.7 billion in 2019 to USD 1.2 billion — it more than doubled its digital business, a press release revealed.

This growth was fuelled by pandemic restrictions, which saw consumers shift their shopping online and prompted Palacio de Hierro to accelerate its digital transformation plans. This included redesigning its online sales platform, strengthening customer service through telephone and WhatsApp sales and expanding its online offering of luxury brands.

Last year — especially during its three and a half month physical closure between March and July — Palacio de Hierro introduced the likes of Saint Laurent, Dolce & Gabbana, Ferragamo, Tiffany, Cartier and Givenchy to its online portfolio.

El Palacio de Hierro Reports 136% Boost to Online Sales

What: Peru CEO Alex Zimmerman interviewed in Gestion de Peru newspaper

Why is it important: the company is ready to face e-commerce rising demand

The end of 2020 and the beginning of 2021 went quite well as Falabella achieved its targets. 75% of the stores are currently closed so the company massively relies on e-commerce. Having learned from the previous lockdown, Falabella is fully prepared to face an online consumption surge as high as of May and June 2020.

The company is also taking advantage of store closures to focus on improving physical stores, as well as strengthening e-commerce.

Logistical capacities have been multiplied several times and distribution partnerships have been reinforced. Falabella is also in the midst of the automation process of its distribution centres, which will complete in 18 months. Additional spaces have also been leased outside of the regular facilities.

Although promotions are enforced on a regular basis, the schedule has not radically changed comparing to the pre-Covid era.

Falabella en Perú mantiene el 75% de sus tiendas cerradas por cuarentena 

What: SKP has led the Chinese department store revenue ranking since 2011 and looks like continuing in its leading position, according to Jing Daily. The company achieved double-digit growth in 2020 in spite of being disrupted by the Covid pandemic. Annual revenue is expected to reach RMB 15.5 billion (EUR 2.3 bn), up 15% on the previous year. Several brands launched their first China stores at SKP, such as UK Self-Portrait, French fragrance brand Killian, and Boucheron launched its Jardin d'Hiver.

Why is it important: WSKP results confirm China's booming luxury market powered by innovative retailers like SKP as well as by the buying power of luxury shoppers and the repatriation of luxury consumption in 2020. SKP launched an innovative experience with SKP-S, the sister building opposite the main Beijing store last December, which offers exclusive products and pop-up stores by major luxury houses.

While Beijing, and now Xi'an, are dominated by SKP, the Shanghai luxury market looks to Plaza 66 which has also benefited from the repatriation of luxury spending. Its owner Hang Lung Group has reported retail takings up 60% for the year 2020 as the mall's rental revenue also climbed by 34% against the 2019 levels./nbsp]

According to government data, overall consumer sales in China for 2020 contracted by 3.9% although in the fourth quarter, it rose 4.6% year-on-year.

Despite COVID-19, Beijing SKP, China's Top Shopping Mall, Records Strong Growth

What: Falabella is facing a class action through the National Consumer Service (Sernac).

Why is it important: Covid-19 legal restrictions can endanger service to customers.

Falabella is the subject of a class action in Chile through the National Consumer Service (Sernac) for breaching the delivery times of its online sales during the last months. The Chilean company emphasizes that the delays are due to the various restrictions caused by Covid-19 state of emergency.

Between March and November, Falabella accounted for 27% of the total e-commerce claims received in Sernac. In addition, during 2020 about 68% of the claims against Falabella corresponded to delays in the dispatches or products that never reached their destination.

Sernac also found that, as a loyalty strategy, the company offered certain 'benefits' to affected customers, but without stating a clear policy.

Note: Sernac belongs to the same state-administration that has imposed the restrictions.

Falabella señala al estado de emergencia como causa del retraso de sus entregas en Chile

Falabella admite "demoras" en e-commerce y culpa a autoridades por restricciones en pandemia

What: 13 new stores are now being equipped.

Why is it important: The company adapts to e-commerce growth.

"An average delivery takes just 20 seconds, improving efficiency by 800% explains Falabella Retail CEO, Jean Luis Mingo. "By the end of 2021, we expect 50% of our deliveries to be made through click&collect."

Click & Collect is one of the omnichannel solutions offered by Falabella that integrates the online channel and the physical store. In the last three years, withdrawal through this service has grown by 66%.

Falabella Retail proyecta sumar trece Click & Collect automatizados en 2021

Falabella Retail afianza su apuesta por sistema automatizado de retiros y proyecta 13 nuevas tiendas en el pais

Related item:

• Falabella investment plan for 2020-2023

What: the fourth Dior location in Mexico is the second one in Palacio de Hierro

Why it is important: There is a reflection at the IADS level on how to be attractive enough for brands to convince them to extend partnerships with department stores. Dior strategy in Mexico is an example on how it can be achieved.

Dior, who started to collaborate with El Palacio de Hierro as early as 1950, is opening its 4th location in the Santa Fe store, after the Plaza Artz Women and Men stores, as well as the Palacio de Hierro Polanco location. Out of 4 stores in Mexico, 2 are operated within El Palacio de Hierro department stores (Plaza Artz is a mall chain), a proof of the dynamism and attractivity of the department store chain positioning.

Dior Opens More Stores in Mexico City

What: several digital transformation initiatives to improve the experience of its employees and customers.

Why is it important: enhancing the business while attracting and retaining customers and employees is tricky, here are some strategies Falabella is applying in its company:

• Digitising the customer experience: consolidating falabella.com as a single platform, introducing new product delivery methods and enhanced functionalities in its Fazil app and Fpay digital wallet;
• Innovation tournaments: holding hackathons or Talks by Falabella for its employees;
• Technological development centres: enabling the development of digital financial services, eCommerce, marketplace, logistics and data analysis(Digital Factory in Chile and Argentina and Technology Development Centre in India);
• Digital Training Programmes: Academia Falabella trained more than 2,000 employees in eCommerce and digital trends.

Falabella: Enfocados en la innovación para acelerar su transformación digital

What: the Chinese department store outpaced British department store Harrods' pre-pandemic performance

Why is it important: In 2019, SKP Beijing was named the world's second-most productive department store after Harrods. Now it racked up over USD 2.7 billion in sales in 2020

SKP stores' performances in China were boosted by the rebound in domestic demand in 2020, while Western retailers (such as Harrods) suffered the lack of tourists throughout the year. Last July Harrods said it was anticipating a 45% drop in annual sales.

Beijing's Top Luxury Department Store, SKP, Surpasses Harrods' Pre-Pandemic Sale

What: CEO Nicolas Houzé interviewed in French Le Journal du Dimanche

Why it is important: in 2020, GL was closed for 106 days and has lost half of its turnover (EUR 1,7 billion)

30% of GL stores, accounting for 70% of the business, are currently closed. And although the crisis has accelerated the shift to digital, "online sales, which account for 5% of our overall revenues, do not compensate for closures," the CEO explains.

According to Nicolas Houzé, "it has never been shown that our stores are dangerous places": "Since 30 May 2020, GL Haussmann has reported 200 cases of Covid-19 out of 4000 employees. Only 10% of the cases happened in the workplace.

Mr Houzé is confident that foreign customers, "who represent 60% of our turnover in Haussmann's flagship will return". Therefore, "this means not making staff reductions or drastic redesigning choices for our stores," he says.

Among the brands owned by the family group, La Redoute (historic e-tailer) has benefited from the situation and has seen its turnover increase by 20% to reach EUR 1 billion. Mauboussin jeweller sales only dropped by 4,5% thanks to thriving online sales. The online off-pricer BazarChic sales have increased by 15% thanks to price positioning. Royal Quartz, the premium watches retailer deep-rooted in airports, has seen its sales drop by 40%

Galeries lafayette in Journal du Dimanche