What: El Corte Inglés has allocated EUR 6.8 million for the purchase of two buildings in Goya which it will use to develop a four-star complex with 113 rooms.

Why it is important: The retailer hopes that the complex will generate an additional EUR 2.5 million in income from the operation of the rooms.

The project has the support of the City Council as El Corte Inglés needed special approval to group two residential buildings which will be connected by stairs and corridors.

The new hotel complex will have 1,200 square meters with 113 rooms. The ground and first floors of both properties will retail their commercial use. The calculation of the investment to be profitable is within 20 years.

El Corte Inglés will create its first hotel

What: A robot developed by Intel will be the electronics department's new advisor at El Palacio de Hierro's Polanco store located in Mexico City.

Why it is important: Combining artificial intelligence with the internet of things and cloud services, the robot is equipped with a camera allowing him to observe his surroundings and capture data in real time. It will be able to create a profile of each customer and know how many people are walking through his sales floor.

The robot has the ability to answer common questions through its voice interaction, as well as profile what each user will need and move to the correct counter to show the customer the product.

A robot to help customers at El Palacio de Hierro

What: Fitch has changed the rating outlook to Stable from Negative. The change in outlook reflects the strong improvement in the company's operational results due to the reopening of Chile´s economy that has resulted in strong domestic demand.

Why it is important: The improved rating is also reflecting the favourable evolution of Falabella's omni-channel strategy and geographic footprint. The company's business profile is differentiated from its retail peers due to its presence in several consumer segments, namely food and non-food retail, department stores, shopping malls and financial services.

Falabella has successfully managed challenges presented by the pandemic. The company limited its inventory purchases and reduced its capex and dividend payments. The rating incorporates its leading business position in the region, which is reflected in a strong multiformat retail omnichannel model. Falabella's adjusted EBITDAR has rebounded sharply. Fitch's base case scenario estimates 2021 adjusted EBITDAR to be +53% and +26% when compared to 2020 and 2019, respectively. The latter is consistent with the positive Chilean consumer trends.

Falabella's rating remains constrained by lower profitability trend exhibited during the last five years due to tough competition in Chile and Peru and changing consumer behaviour, combined with higher technology and logistic expenses related to the development of its digital channel. Fitch positively incorporates the company's strategic vision of its business model, combining retail, financial and real estate operations with a digital and physical platform.

Fitch raises Falabella´s outlook 

What: From 28 September, the shapewear and lingerie direct-to-consumer brand will be available in Haussmann store.

Why it is important: After Kylie Cosmetics in Galeries Lafayette Champs-Elysées, the department store nailed a second Kardashian powerful DNVB. It is Skims' second physical location in Europe after Selfridges.

Skims launches pop-up in Paris

What: Galeries Lafayette unveils their (RE)STORE, a floor of more than 500m2 entirely dedicated to second hand and circular fashion, at the heart of women's fashion.

Why is it important: During the pandemic, the department store took advantage of the situation to reinvent itself for the greater good.

IADS attended the event, read the details below.

Panel discussion on responsible fashion at GL

Galeries+Lafayette inaugurates le (RE)STORE

What: In order to strengthen the brand strategy, the department store creates a new role and appoints Carsten Hendrich, a former Breuninger's head of marketing.

Why it is important: Breuninger will further advance the marketing topics of brand strategy, creative, content, emotionalization, channel linking and digital brand marketing and will bundle the brand areas of marketing, visual merchandising, event, lifestyle PR and social media even more consistently in the future.

In addition, there will be further reinforcement for the brand: In the future, the entire development of the brand area will be the responsibility of the newly created position of Chief Brand Officer.

Carsten Hendrich will be responsible for Breuninger's brand strategy from 18 October 2021. He has many years of experience in agencies, in stationary and digital retail as well as in the management of international premium brands. For many years, he was responsible for the marketing of Zalando as Vice President Brand Marketing and Bogner. Most recently, the 47-year-old moved from A. Lange & Söhne to the KaDeWe Group, where he was responsible for Brand Strategy, Marketing and Communications. He reports directly to Breuninger CEO Holger Blecker.

Breuninger creates a new position: Chief Brand Officer

What: SM's vaccination program is a joint effort of all the SM companies, including SM Investments Corporation, SM Prime Holdings, Inc., SM Retail, Inc., BDO Unibank, Inc., China Banking Corporation, 2GO Group, Inc., Atlas Mining & Development Corporation and Goldilocks Bakeshop.

Why it is important: When it comes to retail, Micro, small and medium enterprises (MSMEs) are considered crucial to the local economy. SM malls decided to support such companies and teamed up with Go Negosyo to open shared vaccination sites for around 300 MSMEs with more than 170,000 employees.

At the moment, 94% of eligible SM employees vaccinated to date and growing. SM immediately provided free vaccination to thousands of its employees with the arrival of vaccines in the second quarter. Previously, SM ordered over 500,000 doses of COVID-19 vaccines for its employees and for donation to the National Government.

In addition, over 3.3 million doses of the COVID-19 vaccine have been administered in 69 malls around the country that have been used as vaccination hubs by various local government units (LGUs).

SM intensifies vaccination efforts

What: Second-hand luxury retailer, Monogram, has moved into Galeries Lafayette Haussmann.

Why it is important: Galeries Lafayette is combining luxury and circular fashion to enhance its commitment to responsible fashion while also appealing to its customers.

Second-hand fashion is becoming more popular among consumers. With the Monogram installation at Galeries Lafayette Haussmann, shoppers can find a range of second-hand luxury goods ranging from EUR 500 to EUR 4,000, ready-to-wear, shoes and a selection of accessories ranging between EUR 150 and EUR 450 euros.

Monogram Paris moves to Galeries Lafayette Haussmann

What: Sandra Weber has been named as Director of Strategy and Development.

Why it is important: The role will be charged with identifying growth vectors and opportunities for development at a challenging time for French department stores.

Weber is replacing Olivier Bron, who left to become chief executive officer of Central Group' s Central and Robinson department stores in Thailand. She reports to executive chairman Philippe Houzé.

Weber is an expert in corporate finance and strategic management who began her career at Goldman Sachs. She has also held positions at Go Sport and Casino.

The appointment of the role comes at a critical time in French retail as the sector has struggled with sluggish demand and a sharp drop in foreign tourism.

Galeries Lafayette Group Names New Director of Strategy and Development

What: After the acquisition of Konen and Bram, the retailer has named the leadership team for these expansions.

Why it is important: The new team is the next key step in the integration process for a successful expansion strategy.

The new team for the acquired houses, Konen Munich and Bram Luxembourg, has been announced. The Konen houses in Munich will be managed by the dual leadership of René Weise, formerly head of sales at Konen and Bram, and Alexander Entov, formerly house manager for Breuninger in Freiburg.

Kai Neu will step in as the new house manager for Bram house in Luxembourg and David Lehr will be taking over the management of the Freiburg house.

Breuninger appoints managing directors for the Munich and Luxembourg houses

What: SM Investments Corporation reported a consolidated net income of PHP 20.1 billion (EUR 405 million) in the January to June period, from PHP 7.1 billion (EUR 143 million) in the same period last year.

Why it is important: Retail revenue growth was 17.8% in Non-Food, with online and Call To Deliver accounting for 13.1% of total revenues.

SM Investments Corporation consolidated revenues rose 4% to PHP 193.5 billion (USD 3.897 billion) in the first half from PHP 185.5 billion (USD 3.736 billion) in the same period last year.

Banking accounted for 58% of SM's reported net earnings from core businesses, followed by property at 28% and retail at 14%.

In the six months ended June 2021, SM Retail and its affiliates added 159 stores while banks increased their network by 22 branches. SM Development Corporation launched two residential projects, Sands Residences in Manila and Cheerful 2 Residences in Pampanga bringing over 3,900 new units to the market.

SM Retail reported revenues of PHP138.2 billion, slightly lower than PHP139.2 billion in the previous period. Revenue growth was 17.8% in Non-Food, with online and Call To Deliver accounting for 13.1% of total revenues. Retail net income was at PHP 3.6 billion (USD 73 million) from PHP 522.0 million (USD 11 million) in the previous period, benefitting from cost reductions implemented in the first quarter across all formats and further efficiencies in the second quarter.

SM financial report

What: Sogo Hong Kong announces results for the six months ended 30 June.

Why it is important: The department store returns to profit with solid strategy and enhanced business capabilities.

Hong Kong retail market returned to growth in the first half of 2021 but the recovery has been limited as inbound tourism remained frozen. For the period under review, and comparing to 2020, the Group's total gross sales proceeds increased by 8% and turnover rose by 12.8% as a result of improvement in customer foot traffic at the stores of the Group amid the gradual easing of social distancing rules with pandemic receding in the city.

The Group recorded a net profit attributable to owners of the Company of HKD 220.0 million, whereas it was a loss of HKD 226.9 million in the corresponding period last year. The profit was mainly attributable to growth in retail sales as a result of improvement in customer foot traffic.

In view of the prevailing challenging operating environment and persistent uncertainties over the pace of market recovery, the board of directors has resolved not to recommend the payment of an interim dividend.

With gradual easing of containment measures and the Group's effective theme-based promotions introduced to attract footfall and encourage repeat purchase, sales at the flagship SOGO Causeway Bay increased 8.2% from a year earlier whereas SOGO Tsim Sha Tsui sales grew 6.8%. Both stores saw a rebound in average ticket size.

With the exception of certain delays that were encountered last year, construction works of the Group's Kai Tak Project during the period have been progressing smoothly as scheduled. The Kai Tak retail complex is expected to be in business in 2023.

Sogo Hong Kong 2021 interim results

What: The retailer is expanding its fashion department with new international brands.

Why it is important: From the beginning of September 2021, and in addition to the private label 'basics', more than 20 new brands will be launched in stores and online.

The fashion department is based on three criteria: young, modern and classic. Manor will also launch multi-brand spaces such as 'The Lab' mixing brands to offer many possibilities for combinations.

Brands like Levi's and Vila will be available in more stores. In addition, new brands such as Noisy May, North Face, Dr. Denim, Moss Copenhagen, La Petite Étoile, Second Female, Minimum and many others will be added to the offer.

 New fashion brands and expansion of the fashion departments

What: Breuninger will open a new flagship store in the Westfield Hamburg-Überseequartier district, its first location in northern Germany.

Why it is important: Breuninger shows the continued importance of brick-and-mortar retail through the expansion into a new market.

Breuninger has been planning to expand to Hamburg for some time as it is a premium location for the retailer. In the past, Breuninger was able to reach Hamburg through its online shop, but the physical store is an important step in the retailer's strategy to maintain consistent growth.

Breuninger expands its presence to Hamburg

What: EBITDA is EUR 81 million with a topline growth of 50%.

Why it is important: Excluding the impact of tourism and the travel business, the first-quarter results came in very close to those of 2019, despite ongoing restrictions.

El Corte Inglés Group staged a strong recovery in the first quarter of 2021 following a year living with the pandemic. Revenue was 50.2% higher year-on-year at EUR 2.51 billion.

The measures rolled out over the past year translated into growth in online sales of 119% by comparison with the first quarter of 2019. EBITDA came to EUR 81 million, an improvement of EUR 276 million from the first quarter of 2020, while cash flow from operations increased by over EUR 1 billion.

The measures rolled out by the Group over the past year drove growth in the online business, where sales rose by 119% compared to the same period of 2019, increasing from 5.3% of total revenue to 12.84%.

El Corte Inglés first-quarter results

What: Sy family joined a USD 1.6 million investment round in NextPay, a Filipino financial technology startup that allows small businesses to access banking services normally reserved for large companies.

Why it is important: With a pay-per-use model, low fees and fast processing, NextPay lets micro and small businesses use financial services such as digital invoicing, cash management, and batch payments to any bank or e-wallet in the country.

"This investment supports our goal of putting the power of big banks in the hands of small businesses," NextPay CEO and co-founder Don Pansacola said in a statement.

NextPay chief experience officer and co-founder Aldrich Tan said the company would roll out new products, including corporate cards, loans, and "integration with other platforms" focused on smaller businesses.

Sy family of SM Group backs PH fintech firm in $1.6M fund round

What: SM Investments Corporation sealed its commitment as a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) in a strong bid to ensure its businesses meet global sustainability targets.

Why it is important: SM has consistently taken the agenda of climate change as an integral part of its business strategy.

TCFD is a globally recognized set of recommendations by the Financial Stability Board and is one of the frameworks recommended by the Securities and Exchange Commission of the Philippines on Environmental, Social and Corporate Governance (ESG) reporting. Joining more than 2,300 supporters in demonstrating a commitment to building a more resilient financial system and safeguarding against climate risk through better disclosures, the adoption of these recommendations helps for more effective climate-related disclosures.

SM has consistently taken the agenda of climate change as an integral part of its business strategy and how this creates lasting value for all its stakeholders, identifying UN Sustainable Development Goal (SDG) 13, Climate Action as one of its focus SDGs. Its Climate Action Strategy advances two priorities that go hand-in-hand: resilience to equip its stakeholders and host communities for climate emergencies and sustainability to help mitigate the climate crisis.

Through SM's leadership role in UN ARISE, the Private Sector Alliance for Disaster Resilient Societies, it calls for a collective effort to incorporate disaster resilience as a core strategy of its business. Leading by example, it allocates 10% of its capital expenditures to disaster resiliency and sustainability in the design of its malls and integrated lifestyle cities.

SM accelerates efforts on climate action signs on to support climate disclosures 

What: With an average of 12.8 hours per employee, the company has invested more than EUR 14.3 million in training.

Why it is important: The average age of the workforce is 44.1 years, which demonstrates the company's ability to retain employees. El Corte Inglés is committed to training as a key tool to retain and attract talent.

This total hours include 614,833 hours of face-to-face courses and 545,948 hours online. Almost 27,000 employees have been trained this year to integrate online sales with face-to-face sales and training in product knowledge and market trends.

El Corte Inglés provided more than 1.1 million hours of training to its employees in 2020

What: Last year, the retailer reached a turnover of EUR 600 million outside of Spain.

Why is it important: Portugal and Mexico are the two most important markets.

After Spain, the first market outside for the company is Portugal, where it has two department stores - one in Lisbon and one in Porto - with a turnover of EUR 397 million in the last financial year. The second most important market is Mexico, with 50 Sfera stores and 88 Viajes El Corte Inglés offices, and sales in 2020 of EUR 92.9 million and the third Chile, already further away with EUR 13.4 million, which adds 58 stores and 10 travel agencies.

As far as the international presence is concerned, the 60 franchised distribution points that El Corte Inglés has in Switzerland, the 42 in Peru or the 28 in Thailand stand out. Apart from the business in Portugal, as a whole, the group has 56 Sfera stores outside Spain, 262 franchisees and 133 Travel Agency El Corte Inglés.

El Corte Inglés also maintains its commitment to the internationalization of its own brands in the different categories, where fashion and food stand out.

Germany is one of the markets where the sports brands Boomerang and Mountain Pro have the largest presence with a total of 120 points of sale in the country, thanks to the alliance with the department store Karstadt Kaufhof Gallery. But El Corte Inglés also has agreements to sell some of its own brands in countries such as Russia, Andorra or Paraguay, among others.

In Ecuador, own-brand products are sold through La Favorita supermarkets, the leader in the distribution of mass consumption in this country. Grupo Rey supermarkets, in Panama, market a wide assortment of own-brand products and in Mexico the presence of the El Corte Inglés assortment in the Soriana supermarket chain has been promoted, while the products of the Club del Gourmet brand are available in the Palacio de Hierro department store. For its part, the presence of food and personal hygiene products has been maintained in Cuba. In Peru, El Corte Inglés maintains the distribution agreement with Supermercados Peruanos through its Plaza Vivanda and Plaza Vea banners; and in Colombia with Success.

El Corte Inglés reinforces its international presence and reaches a turnover of 600 million outside despite the Covid

What: Call to Deliver, SM Store's hybrid and safe shopping service available through #143SM, Facebook Messenger and Viber allow customers to chat with store personal shoppers and have their items delivered right at their doorstep or picked up in-store.

Why it is important: Compared to 2020, Call to Deliver service is achieving double-digit growth.

During the enhanced community quarantine from August 6 to 20, discounts were also made available to COVID vaccine cardholders via #SMCalltoDeliver.

SM's Call to Deliver: Delivering Enhanced Customer Experience

What: In just five years, El Corte Inglés was able to reduce its electricity consumption by about 25%.

Why it is important: In financial year 2020, 100% of the electricity supplied to the retailer in Spain and 55% in Portugal came directly from renewable energy sources.

This year's drop in consumption was larger than in prior years: -10% compared to 2019, partly as a result of the state of emergency and limitations on scheduling and commercial activity. The savings are equivalent to the consumption of about 43,000 households in one year.

In order to increase energy efficiency, the company has installed more than 4,000 integrated telemetry points in most of the centers of El Corte Inglés.

In addition, the company has implemented a Consumption Control project that allows to increase the knowledge of the use made of energy, identify behaviours, comparisons and anomalies in each of the different consumer systems. Currently, it has more than 4,000 telemetry points integrated in most of the centres of El Corte Inglés.

On the other hand, El Corte Inglés has advanced in the process of implementing new charging points for electric vehicles in shopping centres, thus responding to its commitment to sustainable mobility. The company has now more than 200 charging points. This consumption is offered to support and promote electric mobility, with the added value of 100% renewable energy with a guarantee of origin in Spain.

El Corte Inglés manages to reduce its electricity consumption by almost 25% in five years

What: This launch coincides with a modern re-branding aiming to position the store as a leading e-commerce brand.

Why it is important: Customers will find more than 8 million products from Falabella, Sodimac, Tottus and Linio stores all on one site, along with thousands of items on its Marketplace.

The platform has categories covering the group's retailers, together with new categories such as health, wellness, pets, books and automotive. Customers can also access all of Falabella's benefits from this site, such as its Fpay digital wallet, its CMR online account, its CMR points loyalty program and its network of pick-up and return points at all of its stores and shopping centers throughout Chile.

The launch of falabella.com has been supported by improvements to the company's logistics and delivery processes, and an ambitious investment plan that leverages 45 distribution centers and 29 transfer centers with an operating capacity of 1.5 million square meters. Accordingly, falabella.com will continue to strengthen its deliveries, with the promise that 80% will reach customers within 48 hours or less.


Falabella launches new e-commerce platform and unveils new branding for falabella.com

Falabella press release

What: The company diversifies by entering the logistics field.

Why is it important:  Also offering phone, energy or security services, the goal of the company is to move from being a distributor to becoming a service company with a much broader offer.

El Corte Inglés launched a new activity to compete in the logistics and transport sector. The company El Corte Inglés Logística Avanzada, has the following corporate purpose: "the activity of transporting all types of goods, by national or foreign territory and by any means; the logistics activity, including storage, distribution and delivery at destination and agency and transport mediation service".

The objective is to use the entire logistics structure of El Corte Inglés to offer services to third parties, thus expanding the diversification of the business. Marta Álvarez, explains in her letter to shareholders published in the latest annual report that diversification is one of the axes on which the growth plan for the coming years is based.

El Corte Inglés creates a logistics subsidiary to compete with DHL and FedEx

What: At the completion of this project, which is expected by early 2022, Galeries Lafayette will be operating 19 stores directly and 38 as franchises.

Why it is important: This more agile operating model will allow the group to maintain its strong brand presence throughout France while refocusing its investment and efforts on its French flagship stores, the ramp-up of its omni-channel strategy and its targeted expansion outside France.

This project, which would involve the sale of premises and operations, relates to the stores in Angers, Dijon, Grenoble, Le Mans, Limoges, Orléans and Reims. At the same time, Hermione People & Brands (FIB group retail division), already an important franchisee of Galeries Lafayette, would take over the stores in Pau, Rosny and Tours, whereas the business assets of the Avignon store would be entrusted to Philippe Sempéré and Nicolas Chambon, who already operate the franchise for the Béziers store.

Three years after arranging franchises for 22 Galeries Lafayette stores to Hermione People & Brands, this new phase aims to reinvigorate these high-quality commercial and property assets, located mid-sized French provincial cities. This project would have no impact on employment.

Galeries Lafayette launches new franchising project for its store network in France