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: 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: the opening of a drive-through saliva RT-PCR testing collection sites in SM Megamall and SM Mall of Asia, since 2 February 2021

Why is it important: give more Filipinos easier access to non-invasive, faster and cheaper, tests for Covid-19.

SM Supermalls (SCMC)  has partnered with the Philippine Red Cross (PRC) to launch drive-through Covid-19 saliva-based testing at SM Megamall in Mandaluyong City and SM Mall of Asia in Pasay City. These test stations are being settled in two of the most easily accessible malls in Metro Manila and the two testing centres will be open from 9 am to 5 pm. Appointments must be scheduled online at book.redcross.org.ph.

The drive-through setup is a safer option as it doesn't require motorists to leave their vehicles for personnel to collect saliva samples for RT-PCR testing. "This is all part of SM's Safe Malling drive where we want to keep all our customers safe, healthy and provide convenient ways to do so," SM Supermalls Steven Tan said.

PRC partners with SM Supermalls for drive-thru saliva collection sites

What: El Corte Inglés unveiled a refurbished Castellana flasgship store in Madrid in December 2020. The remodelling was led by architect Lazaro Rosa-Violán, whose previous works include retail developments, hotels, and restaurants among others.

Why is it important: El Corte Inglés's changes include a major refurbishment of the Gourmet Experience.

Click below to see the remodel:

El Corte Inglés - Castellana remodels 2020

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: Galeries Lafayette and other department stores are temporarily closing from 31 January

Why is it important: French department stores are facing the third temporary closure since March 2020

Rather than locking France down again, as it was done twice already since March 2020, the government has opted to put in place new measures, which include temporary closures of large nonessential stores, such as department stores and commercial centres.

Retailers that do not sell food and have a surface area greater than 2,000sqm are closed since 31 January 2021.

In Paris, that includes the Galeries Lafayette flagship as well as Printemps flagship on Boulevard Haussmann, Le Bon Marché, Westfield Forum des Halles and BHV-Marais, among others. In France overall, approximately 400 shopping centres and 25,000 businesses will be impacted.

French Retail Dealt New Blow

What: having run a successful test, Vestiaire Collective opens a concierge corner

Why is it important: second hand is an opportunity for department stores to become more sustainable and create additional traffic

After a successful test, Vestiaire Collective settled permanently in Galeries Lafayette Champs-Elysées. The high-end second-hand fashion platform offers a concierge service, where customers can drop off clothes and accessories (from premium, designer or luxury labels) that they wish to sell on the platform.

Items validated are put online on the platform and are not available for purchase in the store.

This partnership with Vestiaire Collective is a way for the department store to develop its virtuous fashion segment. Galeries Lafayette, like the second-hand platform, is one of the companies in the sector that have recently made CSR commitments following the citizen consultation initiated by Paris Good Fashion.

Born in Paris in 2009, Vestiaire Collective continues its development, after having leveraged EUR 59 million last year thanks to 3 new investors (Korelya Capital, Vaultier7 and Leather Invest).

Galeries Lafayette permanent partnership with Vestiaire Collective

What: The department store will create an independent logistical subsidiary to offer its infrastructure to third parties, duplicating its revenue thanks to the online retail increasing success.

Why is it important: Logistics and distribution have become a key factor in the unstoppable rise of online retail. By creating its own unit dedicated to logistics, Spain's El Corte Inglés aims at competing with Amazon, taking advantage of its current logistics and transport infrastructure. This division already employs around 5,000 people and has 1.2 million sqm of floor space in 50 "central and regional" warehouses.

ECI will offer to third parties the possibility to become an end-to-end logistics operator, from product storage to delivery to the customer's home. With this new business unit El Corte Inglés seeks to replicate successful operations such as the creation of the travel agency or the insurance brokerage, which started as internal units to eventually open to third parties and become independent companies within the group. This plan has been in the works for a couple years with the support of the consultancy firm Kearney and Goldman Sachs and if everything goes according to plan, the logistical unit should become independent within a year.

El Corte Inglés has been looking for new sources of income for months, a process accelerated by the pandemic after having to deal with a heavy blow in the retail division in 2020 (usually the biggest turnover for El Corte Inglés with revenues of EUR 12,000 million in 2019). This new project will also serve some real estate assets since they will build five logistics platforms in Spain to provide the service to third parties, which will at the same time, double the workforce.

El Corte Inglés se lanza al negocio logístico para competir con Amazon

Related item:

• El Corte Inglés rethinks logistics, turns stores in distribution centres

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: Chilean company was already withdrawing from the country since September 2020.

Why is it important: Shutdowns will be made progressively.

The pandemic has accelerated the process of digitizing retail and has affected the results. To adapt to this new trend and make the operation sustainable over time, Falabella announced back in September 2020 that they would close four of their stores in Buenos Aires.

At that time, Falabella put the four stores up for sale and was looking for partners to take over the other franchises. Employees were also offered the opportunity to retire voluntarily.

Flagship store at Mendoza Plaza Shopping might already have received a proposal to replace Falabella.

Falabella cierra todos sus locales en Argentina

What: according to the Brand Finance Retail report, El Corte Inglés has increased its brand value by 11.7% and now ranks 31 out of the 100 best brands worldwide

Why is it important: actions such as redesigning its distribution network across Spain and reinventing itself show the group's ambition to compete with Amazon and how it reached the top

The report highlights how El Corte Inglés converted 90 of its shops throughout Spain into online logistics centres, and how it managed to promote its in-store collections through services such as "Click&Collect" and "Click&Car", which is a couple of main reasons for the significant brand value growth. During the crisis, the department store chain also quickly responded to the rise of online orders by implementing ship-from-store order fulfilment processes, and it managed to reserve in-store slots for at-risk and elderly shoppers.

Mercadona and El Corte Inglés are the only two Spanish firms on the world ranking of the top 100 brands while Amazon retains the title of the world's most valuable retail brand.

According to the report, the fastest growing sectors are:  pharmaceuticals (36%), household products (34%), spirits (21%), technology (18%), distribution (18%) and engineering and construction (9%).

El Corte Inglés eleva valor de marca y escala entre las 100 mejores del mundo

Related item:

• El Corte Inglés launches logistics business unit

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: GL's communication director urges brands to be more sustainable

Why is it important: Guillaume Houzé has brought several brands together with Paris Good Fashion city association

"Now 10% of our sales are made with products that respond to a responsible approach," says Guillaume Houzé, director of image and communication at Galeries Lafayette.

With Paris Good Fashion, an association initiated by the city of Paris, he has brought together several brands. Among them, Etam, led by Laurent Milchior: "Companies have this responsibility to take part in the ecological transition. They'll have to change sooner or later. These companies, including Petit Bateau, Yves Rocher and La Redoute, have just made 12 commitments to be fulfilled by the end of 2024.

Recycle hangers, install collection points for used shoes and textiles, use "made in France" label only when this is the case, use at least 50% organic or recycled cotton, reduce plastic... These themes were chosen from the results of the two-month citizen consultation held by make.org.

French brands commit to sustainable fashion

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

What: a Cloud Awards for the Breuninger-funded start-up

Why it is important: innovation is key to remain relevant in retail and Breuninger proves that a historic retailer can also shine in the start-up world

Congratulations Breuninger! autoRetouch was named "most promising start-up of the year" at the Cloud Awards in USA. The start-up, founded one year ago, is a fully automated, AI based solution for image processing automation, revolutionising how classic product images are edited for use in e-commerce.

"The autoRetouch award vindicates our decision as a leading fashion and lifestyle company to invest in this innovative start-up as well as digital business models," said Holger Blecker, CEO at Breuninger. "We at Breuninger believed in the digital image editing technology developed by autoRetouch right from the outset and I am very happy for the entire team that this development is now gaining the industry recognition it deserves!"

Breuninger-funded start-up autoRetouch wins prestigious Cloud Award (eng)

Von Breuninger finanziertes Start-up autoRetouch gewinnt renommierten Cloud Award (german)

Learn more about autoRetouch (IADS members only):

• AI Image Processing: "autoRetouch"
• Breuninger invests in start-up

What: support to the Aladina and El Sueño de Vicky foundations in the fight against child cancer

Why is it important: as part of its Corporate Social Responsibility, on 15 February, World Day Against Childhood Cancer, El Corte Inglés launched several actions aimed at helping children affected by the disease. It is essential that big companies take actions and lead the way to support the community.

The Unit brand - present in all Hipercor shops and several El Corte Inglés stores -  donated 10% of sales of children's fashion and footwear to the Fundación El Sueño de Vicky (Vicky's Dream Foundation), to finance a research project on paediatric brain tumours at the Niño Jesús Hospital in Madrid.

The company will also make its digital shop and screens available to the Aladina Foundation to publicise the "El Botón de la Sonrisa" (Smile Button) campaign, from which customers and employees can send messages of support to the children suffering from cancer. The aim is to generate a movement of solidarity and raise awareness in society about the reality of children with cancer.

El Corte Inglés apoya a las fundaciones Aladina y El Sueño de Vicky en la lucha contra el cáncer infantil

What: China's leading luxury mall operator will open a new flagship store in Hohhot

Why is it important: China's top department store continues its expansion

The move fits into the city's plans to build two large commercial complexes, unveiled on 22 February. The store will span of 500 000 square meters and is expected to create 10 000 new jobs.

SKP, which is owned by Beijing Hualian Group, currently operates locations in Beijing and Xi'an. The business has accelerated its expansion in the broader domestic, with new stores under development in Chengdu, Kunming and Hangzhou.

Beijing SKP and Xi'an SKP saw sales grow 15% and 36% respectively in 2020, with the former's sales reaching CNY 17.7 billion (USD 2.71 billion), making it China's top department store by revenue for 10 consecutive years, according to Beijing Business Daily.

According to official government data, the income of residents in Inner Mongolia is on the rise, with a 4.1% increase between 2019 and 2020. The region's energy industry suggests a high number of affluent customers and the arrival of SKP could not only promote it as an up-and-coming retail hub, but help drive luxury brand awareness into lower tier cities.

Chinese Luxury Mall Giant to Expand Into Inner Mongolia

What: the German retailer has submitted urgent requests for reopening

Why is it important: retailers are no longer accepting restrictions due to Covid-19

In 6 federal states, the retailer has submitted urgent requests for reopening. In Baden-Württemberg and Bavaria, the requests were rejected. In Hesse, North Rhine-Westphalia, Thuringia and Saxony, the administrative courts should give an initial assessment by end of February.

Due to lockdown, stores in Stuttgart, Nuremberg, Frankfurt or Leipzig have been closed for weeks.

Corona Immer mehr Einzelhändler ziehen vor Gericht – Situation täglich brenzliger Eine Katastrophe"