What: The White Lotus exemplifies how premium television has become a sophisticated marketing channel for luxury brands seeking cultural relevance.

Why it is important: The success of pre-planned television partnerships is creating new revenue streams and marketing opportunities for both entertainment platforms and luxury retailers.

The evolution of television from a mere storytelling platform to a curated luxury brand playground is exemplified by HBO's The White Lotus, which has secured major partnerships before its third season premiere. This strategic shift represents a transformation from reactive sponsorships to meticulously orchestrated collaborations, with brands like American Express, Diageo, and Supergoop! positioning themselves within the show's universe pre-launch.

The approach extends beyond traditional product placement, creating immersive brand experiences through fashion collections, exclusive travel experiences, and high-end collaborations. This new model of entertainment marketing allows brands to be part of cultural conversations before they begin, while enabling television networks to fund ambitious storytelling through lucrative branding opportunities. The strategy's success is evidenced by the extensive roster of participating brands, including Bloomingdale's, BMW, and Away, all seeking to leverage the show's cultural cachet.

IADS Notes: As observed in February 2024, LVMH's creation of "22 Montaigne Entertainment" for producing movies and series demonstrates luxury brands' growing investment in content creation. This trend gained momentum in January 2025, when Bloomingdale's launched its White Lotus-inspired Aqua collection, showcasing the evolution of retail-entertainment partnerships. By October 2024, luxury brands had already begun adopting more sophisticated digital engagement strategies, as evidenced by the rise of lo-fi content and social commerce, while September 2024 saw traditional retailers like M&S partnering with television networks to create branded content.

How the White Lotus became the latest luxury brand magnet in streaming and TV

What: Retail media spending is set to increase by USD 10 billion in 2025, yet brands face significant challenges in measuring performance and proving ROI across multiple retail networks.

Why it is important: This measurement gap represents a pivotal moment for retail media networks, as their ability to prove ROI will determine whether they can sustain growth and justify their position as a primary marketing channel.

The retail media landscape is experiencing unprecedented growth, with 92% of brands ranking it as their most important marketing channel. This surge in importance has led to significant investment increases, with brands now managing an average of six retail media networks, expected to grow to 11 by 2026. However, this rapid expansion has created substantial challenges in measuring and proving return on investment.

The IAB reports that 62% of retail media buyers cite lack of measurement standards as a primary obstacle to continued growth, while one-quarter of marketers struggle with integrating retail media alongside other digital channels. The complexity is further compounded by annual trade negotiations and joint business plans that often commit brands to specific spending levels with certain retailers, limiting their ability to shift budgets based on performance data. Despite these challenges, organisations are making progress, with 56% now reporting proficiency in measuring incrementality, a significant improvement from 30% in the previous year.

IADS Notes: The current challenges in retail media measurement highlighted in the article reflect a broader industry transformation throughout 2024-2025. As noted in March 2024, retail media advertising was already projected to reach USD 100 billion in the US market by 2027, setting the stage for today's rapid growth. This expansion is exemplified by Walmart's success, which reported in May 2024 a 9.6% increase in operating income from its retail media operations. The industry's measurement challenges are being actively addressed, as highlighted in July 2024, when research showed retail media networks could potentially double retailers' margins from 1.7% to 4.3%.

This potential has driven widespread adoption, with October 2024 seeing major retailers like Boots and Co-op expanding their digital screen networks in high-footfall locations. The trend culminated in January 2025 with Currys' successful expansion into in-store retail media, projecting 40 million annual impressions. These developments demonstrate how retailers are working to overcome the measurement challenges while capitalizing on the growing opportunity in retail media.

As retail media spending soars, brands struggle to prove results

What: Brooklyn boutique L'Ensemble pioneers a new luxury retail model centred on privacy and personalised service through appointment-based shopping.

Why it is important: This innovative approach addresses the growing consumer demand for privacy and discretion in luxury shopping, whilst creating a sustainable business model that doesn't rely on foot traffic or traditional retail visibility.

L'Ensemble, a distinctive multi-brand boutique in Brooklyn's Dumbo neighbourhood, represents a new wave of retail experiences focused on privacy and personalisation. Founded by former fashion buyer Dawn Nguyen, the store operates primarily through appointments, offering an intimate shopping environment that contrasts sharply with the prevalent queueing culture. The dimly lit space, crafted with interior designer Patrick Bozeman, features mid-century furniture and artistic elements that create a sophisticated atmosphere.

The boutique's carefully curated selection includes under-the-radar brands like Sunflower, Extreme Cashmere, and Paraboot, with prices ranging from USD 90 T-shirts to USD 5,800 trench coats. Nguyen's approach emphasises personal service and product knowledge, replicating the exclusive experience typically reserved for industry professionals. The concept has already attracted a loyal clientele of fashionable New Yorkers, with plans for a shopfront space in 2025.

IADS Notes: Recent data from our database shows this concept aligns perfectly with current retail trends. In September 2024, research revealed that 70% of shoppers prefer retailers offering personalised experiences, while luxury retailers are increasingly focusing on private shopping services. This shift is further evidenced by Saks Fifth Avenue's expansion of its Fifth Avenue Club in July 2024, and Nordstrom's creation of a Director of Luxury Styling role in February 2025. The trend extends globally, with Harrods' recent reorganisation of its designer collections in November 2024 emphasising intimate shopping environments and personalised service.

Beyond the queue: how L'Ensemble is making privacy the ultimate luxury

What: Amidst heightened political scrutiny, organisations are considering renaming their Diversity, Equity, and Inclusion (DEI) programs to ensure sustainability while continuing to foster inclusive workplaces.

Why it is important: As the current US administration targets DEI initiatives, renaming or reframing these programs could help organisations maintain their commitments to fairness and inclusion while mitigating legal risks and avoiding political backlash.

DEI programs have come under intense scrutiny in the United States following new executive orders from President Trump’s administration, which aim to dismantle federal diversity initiatives and discourage private-sector DEI efforts. Many organisations are contemplating renaming their DEI programs to avoid political and legal challenges while preserving their core objectives. The article highlights that renaming DEI—adopting terms like "Culture and Belonging" or "Opportunity and Access"—may offer a strategic way to embed inclusion within broader business strategies, ensuring these efforts continue to thrive under less controversial branding. However, the risks of perception and trust erosion among employees and stakeholders remain, and transparency in communication is vital. The shift to more integrated or rebranded DEI initiatives—what the article terms "Quiet DEI"—reflects a strategic evolution to sustain inclusive progress in a challenging environment.

IADS Notes: The retail industry's response to DEI challenges has evolved significantly since late 2024. In November, Walmart pioneered a strategic approach by maintaining inclusion practices while modifying terminology, achieving strong market performance. By January 2025, Amazon had rebranded its initiatives as "Inclusive eXperiences and Technology", while luxury brands maintained explicit DEI commitments. The emergence of the FAIR framework (Fairness, Access, Inclusion, and Representation)demonstrates how retailers adapt to maintain inclusive practices while navigating complex political landscapes.

Is it time to rename our DEI programs?

What: McKinsey outlines a comprehensive framework for retailers to leverage AI and generative AI in creating personalised marketing experiences, emphasising the integration of targeted promotions with tailored content creation.

Why it is important: With 71% of consumers expecting personalized interactions and 76% expressing frustration when these aren't delivered, this comprehensive approach helps retailers bridge the critical gap between customer expectations and current capabilities.

McKinsey's analysis reveals a significant opportunity for retailers to enhance personalisation through AI and generative AI technologies. The framework addresses the challenge of communicating effectively with diverse consumer groups while scaling personalised experiences. By combining AI-driven targeted promotions with generative AI-created content, retailers can deliver more relevant offers and messages to specific customer segments. The approach is built on five key elements: data, decisioning, design, distribution, and measurement. This technology stack enables retailers to create seamless omnichannel experiences, optimise promotional spending, and generate tailored content at scale. The framework emphasises the importance of strategic implementation, including proper data integration, robust decision engines, innovative design processes, sophisticated distribution architecture, and comprehensive measurement systems. This integrated approach can help retailers achieve significant improvements in sales and margins while meeting growing consumer demands for personalised experiences.

IADS Notes: The article's emphasis on personalisation and AI implementation aligns with significant industry developments observed throughout 2024. The strategic importance is validated by Google Cloud's October 2024 findings, where 87% of retailers implementing generative AI saw at least a 6% revenue increase. This growth corresponds with evolving consumer expectations, as Coveo's June 2024 study revealed 72% of consumers anticipating AI-enhanced shopping experiences. The effectiveness of these technologies was further demonstrated in November 2024, when BCG reported that 38% of shoppers were actively engaging with GenAI during major sales events. The operational impact is particularly noteworthy, with Adobe Analytics reporting a 304% year-over-year increase in AI-directed retail traffic by March 2024. However, December 2024 data showing only 10% of companies successfully scaling their GenAI applications underscores the article's emphasis on the need for a robust technological foundation and strategic implementation approach to achieve competitive advantage in personalised retail experiences.

Unlocking the next frontier of personalised marketing

What: The beauty industry faces significant challenges in scaling AI adoption, with issues ranging from data bias in skin analysis to infrastructure limitations, despite promising innovations in personalisation and automation.

Why it is important: With McKinsey reporting that personalisation can reduce acquisition costs by 50% and increase revenues by 5-15%, the beauty industry's successful AI integration is crucial for future growth, particularly as companies like L'Oréal and Estée Lauder lead technological transformation.

The beauty industry stands at a critical juncture in AI adoption, balancing promising innovations with significant implementation challenges. While companies like SmartSkn showcase AI-driven skincare robots and Umia demonstrates automated manicure services, these remain isolated examples rather than industry standards. The sector faces crucial challenges in data quality, particularly in skin tone analysis, where bias remains a major concern. Companies like Haut.AI and Renude are working to refine skin analysis systems, while L'Oréal's dedicated generative AI committee demonstrates corporate commitment to technological advancement. The transformation requires substantial infrastructure changes, from advanced data sets to reimagined operational flows, with successful implementation promising significant benefits including reduced acquisition costs and increased marketing ROI. However, the industry must address both technical challenges and consumer education to achieve widespread adoption.

IADS Notes: Recent developments underscore the beauty industry's AI transformation journey. In February 2025, L'Oréal introduced lab-grade skin analysis to beauty counters, while Estée Lauder deployed 240 custom GPTs across its brands. This technological push comes as McKinsey reports that personalisation can reduce acquisition costs by 50% and increase marketing ROI by 10-30%. However, challenges persist in data quality and bias mitigation, particularly in skin tone analysis. The industry's evolution is further evidenced by the success of early adopters, with 87% of AI-implementing companies reporting revenue increases of 6% or more, demonstrating how beauty retailers must balance technological innovation with practical implementation challenges to remain competitive.

Is beauty ready for AI?

What: Third-party JavaScript tags pose significant security and compliance risks to retailers, with only 13% of companies fully understanding what data these tags collect.

Why it is important: As digital commerce reaches record levels and payment fraud escalates, retailers must urgently address the security vulnerabilities created by third-party tags to protect customer data and maintain compliance.

The retail industry's increasing reliance on third-party JavaScript tags presents a significant security challenge, with 86% of companies using these tools for essential functions like analytics, payments, and customer service. Despite their widespread use, only 13% of organisations are extremely confident about understanding exactly what information these tags collect. This knowledge gap is particularly concerning as 97% of respondents acknowledge that these tags regularly collect sensitive data, including payment information and personal details. The risk is amplified by the fact that 49% of companies admit their tags have collected unauthorised data, while just 36% have implemented policies and tools to prevent data skimming. With the approaching PCI DSS v4 compliance deadline in March 2025, retailers face increased pressure to secure their digital infrastructure and protect customer data. The challenge is particularly acute for e-commerce operations, where sophisticated malware and digital skimming attacks target payment processes through compromised third-party code.

IADS Notes: Recent developments in retail security and digital commerce highlight the critical importance of third-party tag management. In January 2025, a sophisticated card skimming malware targeting WordPress checkout pages demonstrated the evolving threats retailers face, with Stripe blocking nearly 21 million fraudulent transactions worth USD 917 million during a single weekend in December 2024. The challenge of securing customer data has become more complex, as evidenced by November 2024 research showing 75% of consumers now base purchasing decisions on how companies handle personal data. With mobile transactions accounting for 70% of global sales and retailers processing an unprecedented volume of digital payments, the need for robust third-party tag security has never been more critical.

The perils of third-party tags

What: Australia's second-hand market evolution into a USD 1.6 billion industry by 2032 reflects fundamental shifts in consumer psychology, sustainability awareness, and digital commerce.

Why it is important: The transformation of Australia's second-hand market mirrors global retail trends, where traditional retailers are rapidly integrating circular business models to meet evolving consumer demands for sustainability and value, as evidenced by recent innovations from major brands.

Australia's second-hand retail sector is experiencing a remarkable transformation, driven by a convergence of psychological, environmental, and economic factors. The market is projected to grow from USD 578.10 million in 2023 to USD 1,598.37 million by 2032, reflecting a compound annual growth rate of 11.88%. This growth is underpinned by changing consumer attitudes, with 86% of Australians now engaging in second-hand shopping. The appeal extends beyond mere cost savings, tapping into the psychological thrill of discovery and the growing desire for unique self-expression. This 'treasure hunting' experience creates a dopamine-fuelled engagement that keeps shoppers returning.

Environmental consciousness plays a crucial role, with Australia's annual clothing waste of 222,000 tonnes driving consumers toward more sustainable choices. The sector's digital evolution, facilitated by platforms like Depop and Facebook Marketplace, has democratised access to second-hand goods while creating income opportunities. Young Australians, particularly those aged 18-34, are leading this shift, demonstrating how second-hand shopping has evolved from necessity to an intelligent, ethical choice that balances financial pragmatism with environmental responsibility.

IADS Notes: The Australian second-hand market's projected growth to USD 1,598.37 million by 2032 aligns with broader global trends in circular retail. As noted in March 2024, ThredUp projected the global secondhand market to reach USD 350 billion by 2028, demonstrating unprecedented growth potential. The psychological drivers mentioned in the article are reflected in recent retail innovations, with Selfridges' May 2024 initiative making circular retail more playful and engaging. The integration of digital platforms has been crucial, as evidenced by IKEA's August 2024 launch of their Preowned marketplace, while traditional retailers are rapidly adapting their business models, exemplified by H&M's innovative secondhand section launch in February 2024.

The article's emphasis on younger consumers' adoption rates is supported by December 2024 data showing 79% of 25-34 year olds embracing pre-loved gifting, while the sustainability focus aligns with the June 2024 NRF report's recommendations for implementing circular business models. This convergence of economic, social, and environmental factors suggests that Australia's second-hand retail transformation reflects a broader global shift towards sustainable consumption.

The rise of second-hand shopping in Australia: A cultural and economic shift

What: Trump's proposed tariffs trigger significant consumer anxiety, with confidence indices showing the sharpest decline since 2021 as Americans brace for higher prices across retail sectors.

Why it is important: This consumer sentiment shift represents more than temporary anxiety; it reflects a structural change in retail economics, as evidenced by February 2025 data showing widespread supply chain restructuring and the elimination of key trade exemptions that previously supported competitive pricing.

The recent decline in US consumer confidence mirrors growing concerns about President Donald Trump's expanding tariff agenda. The Conference Board's Consumer Confidence Index has recorded its steepest drop since August 2021, with survey respondents increasingly mentioning trade and tariffs as primary concerns. This shift marks a stark contrast to the optimism that followed Trump's election triumph in November. Consumer anxiety is particularly focused on potential price increases, with inflation expectations jumping from 5.2% to 6% in February.

The impact extends beyond consumer sentiment, affecting various sectors of the retail industry. Companies like Clorox report increasing consumer stress, with customers maximising product usage to cope with economic pressures. The situation is further complicated by broader economic challenges, including concerns about business conditions, employment, and stock market performance. This confluence of factors has created a complex environment where consumer wariness about tariffs intersects with existing inflationary pressures, potentially reshaping spending patterns across the retail sector.

IADS Notes: The current consumer anxiety about Trump's tariffs is well-founded, as evidenced by significant developments throughout 2024 and early 2025. As reported in January 2025, BCG's analysis projects that a 60% tariff on Chinese goods could add USD 640 billion to US import costs, fundamentally reshaping retail economics. This concern has already manifested in concrete policy changes, with February 2025 seeing the elimination of the USD 800 de minimis rule, affecting millions of daily shipments and forcing retailers to restructure their operations. The impact extends beyond direct cost implications; October 2024 port strikes disrupted over 100,000 shipping containers, compelling retailers to adopt more agile supply chain strategies. The beauty industry particularly exemplifies these challenges, with January 2025 reports showing widespread disruption across 25,000 mass-market products. Consumer confidence has responded accordingly, with the Conference Board's index showing its largest decline since August 2021, reflecting the broader market anxiety about potential price increases and economic uncertainty.

Donald Trump’s tariffs spook consumers weary of inflation

What: A comprehensive guide from Seramount aims to bridge the gap between uncertainty and informed action for DEI leaders, as they face unprecedented workplace transformation driven by Generative AI technologies.

Why it is important: With AI reshaping traditional workplace structures, DEI leaders need practical frameworks to guide organizational policies and practices that maintain inclusivity while leveraging technological advancements.

Seramount's workbook addresses the growing challenge faced by DEI professionals in navigating the AI revolution, with research showing only 10% of Chief Diversity Officers feeling knowledgeable about Generative AI. The guide provides essential tools for understanding both the opportunities and risks of AI implementation in workplace diversity initiatives. Through a combination of key information and reflective exercises, it covers critical areas including AI bias, risk mitigation strategies, and the potential of AI as a catalyst for DEI goals. The workbook emphasizes the importance of human oversight in AI deployment, particularly in addressing inherent biases and ensuring ethical implementation. By focusing on practical applications and strategic considerations, it helps DEI leaders contribute meaningfully to their organizations' AI initiatives while maintaining focus on inclusivity and equity objectives.

IADS Notes: Recent retail industry developments underscore the urgency of this guidance. In January 2025, research revealed that companies implementing AI with proper oversight achieved 30% faster development and 60% higher user satisfaction rates . This aligns with the emergence of new frameworks like FAIR (fairness, access, inclusion, and representation) , which emphasizes measurable outcomes over symbolic gestures. The retail sector's experience with AI implementation shows varying success rates, with only 10% of companies successfully scaling their applications , highlighting the need for structured guidance in balancing technological advancement with inclusive practices.

Navigating the intersection of AI and DEI

What: The anti-DEI movement gains momentum as political pressure and legal risks force retailers to reevaluate their diversity initiatives.

Why it is important: The retail industry's response to DEI challenges demonstrates how companies must balance social commitments with business performance, as evidenced by Walmart's successful pivot and Target's USD 10 billion valuation loss.

The retail industry faces unprecedented challenges as the anti-DEI movement gains significant momentum, driven by political pressure and mounting legal risks. Major corporations are adopting divergent approaches, with some maintaining steadfast commitments while others retreat from traditional DEI terminology. The backlash has intensified following President Trump's sweeping executive orders targeting federal DEI programmes, creating a complex landscape for HR leaders and corporate America. Companies must now navigate between stakeholder interests, employee expectations, and legal vulnerabilities while protecting their public reputation.

The response has varied significantly: Walmart achieved success by maintaining inclusion practices while removing explicit DEI language, whereas Target faced substantial financial consequences and legal challenges. Meanwhile, luxury brands have taken a contrasting stance by reinforcing their DEI commitments. The emergence of the FAIR framework (Fairness, Access, Inclusion, and Representation) suggests a potential path forward, focusing on measurable outcomes rather than symbolic gestures. This evolution reflects the industry's broader challenge of fostering inclusive workplaces while adapting to changing political and social pressures.

IADS Notes: The retail industry's response to DEI challenges has evolved significantly since late 2024, providing crucial context for the current backlash. In November 2024, Walmart pioneered a strategic pivot by maintaining inclusion practices while removing explicit DEI language, achieving strong market performance. This approach contrasts sharply with Target's experience, which faced a USD 10 billion valuation loss and shareholder lawsuit by February 2025. The industry has since split into distinct camps: mass-market retailers retreating from explicit DEI terminology, while luxury brands like Prada and Gucci maintain firm commitments . A new FAIR framework (Fairness, Access, Inclusion, and Representation) emerged in January 2025 , offering retailers a way to balance inclusive practices with business performance. This evolution reflects the industry's broader challenge of maintaining inclusive workplaces while navigating complex political and legal pressures, particularly as companies face potential "illegal DEI" lawsuits and compliance investigations under new executive orders .

The demonisation of DEI

What: Energy software startups are transforming retail operations through innovative solutions that optimise power consumption and enable the transition to renewable energy sources.

Why it is important: As retailers face mounting pressure to reduce their carbon footprint and manage energy costs, these technological advances offer crucial tools for achieving sustainability goals while maintaining operational efficiency.

The retail industry is witnessing a fundamental shift in energy management as software startups develop sophisticated solutions to address the challenges of transitioning to renewable energy sources. These innovations come at a critical time when major retailers are setting ambitious sustainability targets and facing pressure to reduce their environmental impact. The emergence of specialized software tools, ranging from household energy management to grid-level planning, enables retailers to optimize their energy consumption, reduce costs, and meet their carbon reduction goals.

Companies like Tibber and Trawa are pioneering customer-facing solutions, while others focus on helping businesses manage their energy assets more efficiently. This technological evolution coincides with the retail sector's broader sustainability initiatives, as evidenced by major players investing in renewable energy infrastructure and smart building systems. The integration of AI and advanced analytics further enhances these solutions, offering retailers unprecedented control over their energy usage and environmental impact.

IADS Notes: The retail industry has made significant strides in energy management since late 2024. Major retailers are implementing comprehensive energy solutions, with Unibail-Rodamco-Westfield leading the way by announcing a 90% carbon emission reduction target by 2050 .

IKEA has expanded its clean energy initiatives through solar installations and renewable heating systems , while Thai retail giants have committed to net-zero emissions and 100% renewable energy usage by 2030 . These developments are supported by technological innovation, with retailers increasingly adopting AI-driven energy management systems to optimize operations and reduce costs .

The energy software startups powering Europe’s green transition

What: Global retailers are integrating sustainability across their entire value chain as consumer expectations shift towards environmental responsibility.

Why it is important: The trend reflects a critical transformation in consumer behaviour, with over 60% of consumers seeking to positively impact the environment despite price constraints.

The retail industry is witnessing a fundamental transformation as sustainability becomes intrinsically linked to innovation and product development. Recent data shows that 47% of global companies now ensure sustainability features are incorporated in new product launches, reflecting a significant shift in business priorities. This evolution extends beyond mere environmental compliance, encompassing the entire supply chain from sourcing to retail operations.

However, the industry faces a notable challenge as 40% of consumers cite high prices as a barrier to sustainable purchasing, leading retailers to focus on pragmatic approaches that balance environmental responsibility with affordability. The trend is particularly evident in product development, where companies are using life cycle assessment frameworks to optimise every step of the supply chain. This comprehensive approach to sustainability is driving innovation while addressing both environmental concerns and consumer expectations, creating a new paradigm in retail operations.

IADS Notes: As observed in January 2025, major retailers like IKEA are investing significantly in recycling infrastructure, demonstrating the industry's commitment to circular economy principles. This trend gained momentum in May 2024, when Macy's launched its USD 5 billion sustainability initiative, focusing on sustainable products and supply chain optimization. By September 2024, Bain & Company's research revealed that 60% of consumers showed increased concern about climate change compared to previous years, while Selfridges' expansion of circular retail services in October 2024 highlighted the growing importance of sustainable business models in traditional retail.

Sustainability is a baseline for innovation

What: Major retail brands launch innovative pop-up experiences across Asia, combining digital integration, cultural elements, and experiential retail in key markets.

Why it is important: The integration of digital technology with physical retail spaces shows how brands are adapting to changing consumer behaviors while testing new markets through innovative engagement strategies.

Leading retail brands are revolutionising the pop-up concept across Asia through sophisticated integrations of technology and cultural experiences. Ugg's Shanghai activation exemplifies this trend with its NFC-enabled music sharing system and collaboration with Marzo cafe, creating a multi-sensory shopping environment. Documents' winter-themed Red House in Shanghai demonstrates how luxury brands can incorporate cultural elements, featuring symbolic Year of the Snake motifs alongside innovative scent experiences.

Miniso's approach in Singapore focuses on licensed character merchandise and blind box collectibles, showing how pop-ups can create engaging experiences for specific consumer segments. Meanwhile, Arket's debut in Shanghai's Reel mall showcases how Western brands can successfully enter Asian markets through carefully curated pop-up experiences that blend Nordic design with local retail preferences. These initiatives reflect a broader shift in retail strategy, where temporary spaces become sophisticated testing grounds for brand engagement and market expansion.

IADS Notes: The evolution of retail experiences in Asia throughout 2024-2025 marks a significant transformation in consumer engagement strategies. The trend began in October 2024 when pop-up retail emerged as a sophisticated market testing tool, moving beyond temporary installations to create meaningful brand experiences. This evolution gained momentum in December 2024 as established retailers like 10 Corso Como demonstrated how strategic partnerships could facilitate international expansion.

By January 2025, China revolutionised the concept with "slow pop-ups", emphasising longer-term experiential spaces that prioritise customer engagement over immediate sales. This shift aligned with broader Asian retail trends, where digital innovation and changing consumer behaviors drove transformation. The culmination of this evolution was evident in February 2025, when major brands launched pop-ups that seamlessly integrated digital technology with cultural elements, establishing a new benchmark for retail experiences in Asia.

Inside the latest pop-up activations in Asia

What: Seoul's retail sector experiences structural transformation as Garosu-gil hits 41.2% vacancy rate while Myeongdong maintains resilience at 4.4%, reflecting deepening market polarisation.

Why it is important: The divergent performance of retail districts highlights a critical transformation in South Korea's retail sector, where success increasingly depends on adapting to new consumer behaviours, including the rise of single-person households and the shift to online shopping.

Seoul's retail landscape is undergoing a significant transformation amidst economic stagnation and reduced consumer spending, according to Cushman & Wakefield Korea's Q4 2024 report. The analysis reveals a complex pattern of market polarisation, with the average vacancy rate for prime shopping areas standing at 16.6%, marking a modest 0.5 percentage point decrease from the previous quarter. The contrast between districts is particularly striking, with Garosu-gil recording the highest vacancy rate at 41.2%, whilst Myeongdong demonstrates remarkable resilience at 4.4%.

Other major retail zones, including Cheongdam, Gangnam, and Hannam-Itaewon, maintain vacancy rates above 10%, highlighting the sector's ongoing challenges. The outlook remains uncertain as persistent inflation, a strong US dollar, and increasing household debt burdens are expected to further impact consumer expenditure throughout 2025, particularly affecting discretionary spending in leisure and shopping sectors.

IADS Notes: The current slowdown in Seoul's retail market, as evidenced by the 16.6% average vacancy rate in prime shopping areas, reflects broader transformative trends in South Korean retail. In February 2025, young consumers are increasingly abandoning luxury brands for affordable alternatives, while the rise of single-person households (42% of total) is driving demand for personalised services. This shift coincides with online shopping surpassing in-store sales for the first time, capturing 50.5% of the market. Retailers are responding with innovative strategies, as seen in Shinsegae's successful "House of Shinsegae" concept, which achieved a 149.9% year-over-year increase in restaurant sales.

Department stores are adapting their business models, revising VIP programs and expanding into e-commerce luxury retail. However, the sector faces significant challenges, with growth falling below 1% amid increasing polarisation between metropolitan and regional stores. The stark contrast between Myeongdong's 4.4% vacancy rate and Garosu-gil's 41.2% exemplifies this polarisation, suggesting that while some premium locations maintain resilience, the broader market requires fundamental restructuring to address changing consumer behaviors and economic pressures.

Seoul’s retail market slows amid weakened consumer spending

What: The People's Union USA's planned February 28 economic blackout targeting major retailers could inadvertently harm small businesses while aiming to protest corporate practices and rising prices.

Why it is important: With recent data showing inflation at 3% and prices surging 20.7% over four years against 19.3% wage growth, this consumer activism reflects broader tensions between corporate profits and community economic health, particularly as small businesses serve as vital community pillars.

The People's Union USA has called for a 24-hour economic blackout on February 28, targeting major retailers and chains in protest of corporate practices and rising prices. While aimed at large corporations like Amazon and Walmart, small business owners warn of potential collateral damage to independent retailers. Ann Cantrell of Annie's Blue Ribbon Store emphasises how local shops serve as community pillars, citing examples of collective community support such as raising USD 15,000 for wildfire victims. The initiative comes amid concerning economic indicators, with January's CPI rising 0.5% and inflation remaining at 3%. The organisers plan to follow the one-day boycott with targeted week-long actions against specific companies, particularly those that have reduced their DEI initiatives. However, experts note that consumer boycotts typically fail unless companies' actions are particularly egregious.

IADS Notes: The economic blackout initiative emerges amid significant shifts in consumer behavior and retail dynamics. January 2025 data shows a growing "buy less" movement, while recent surveys indicate 73% of consumers feeling overwhelmed by online shopping choices. This activism coincides with broader economic pressures, as European consumers demonstrate increased caution in spending, with 73% experiencing higher prices for goods and services. The timing is particularly significant as retailers already face challenges from changing consumer preferences, with data showing 67% of consumers seeking simplified lifestyles. These developments suggest that while the boycott targets corporate practices, it reflects deeper changes in consumer attitudes toward consumption and corporate responsibility.

How the economic blackout could backfire on Main Street

What: A comprehensive analysis of potential impacts on retail DEI initiatives under a second Trump presidency, highlighting significant policy shifts that could affect industry practices and strategies.

Why it is important: As retailers navigate evolving approaches to diversity and inclusion, understanding potential policy changes is crucial for developing resilient strategies that maintain inclusive practices whilst adapting to new regulatory environments.

The retail industry faces significant changes in DEI implementation under proposed policies for a second Trump presidency. The document outlines plans to eliminate federal DEI programmes and modify enforcement of civil rights laws, particularly impacting how retailers approach workplace policies and supplier diversity initiatives. Key concerns include potential restrictions on DEI training, modifications to discrimination claim processes, and changes to data collection practices. The retail sector has already begun adapting, as evidenced by Walmart's recent strategic pivot to remove explicit DEI language whilst maintaining inclusion practices, and Costco's contrasting approach of firmly defending its DEI programmes. These divergent responses reflect the industry's broader challenge of balancing stakeholder expectations with business performance. The emergence of alternative frameworks, such as FAIR (Fairness, Access, Inclusion, and Representation), suggests retailers are proactively developing new approaches to maintain inclusive practices within evolving regulatory constraints.

IADS Notes: Recent retail industry developments provide context for potential adaptations to new policies. In January 2025, companies like Costco and Apple maintained their DEI commitments despite mounting pressure, while others like Amazon rebranded initiatives as "Inclusive eXperiences and Technology." Walmart's November 2024 strategy of maintaining inclusion practices whilst modifying terminology proved particularly successful, achieving strong market performance. The industry's evolution toward the FAIR framework in early 2025 demonstrates how retailers are preparing for potential policy changes by focusing on measurable outcomes rather than terminology, suggesting a path forward for maintaining inclusive practices in a changing regulatory environment.

What a second presidential term for Donald Trump means for DEI

Seramount's Key Pre-Election Takeaways from the 2024 US Presidential Election Executive Discussion

Charting the Future: DEI Strategies for the Next Four Years

PRINTABLE VERSION

IADS recently held a meeting spotlighting the men’s fashion brands and trends that stood out in 2024 and are set to lead the way in 2025. Backed by thorough market research, IADS and NellyRodi shared a handpicked selection of 18 brands to keep on your radar for the year ahead.

Take a closer look at these standout names and explore the photos by clicking the button above!

MUST HAVE

AIMÉ LEON DORE

Based in Queens, NY, Aimé Leon Dore is renowned for blending streetwear with classic and preppy influences, offering a modern vintage aesthetic that plays with streetwear culture. Known for collaborations with brands like New Balance and Porsche, Aimé Leon Dore creates powerful, timeless designs that redefine streetwear with an edge.

Check out the Aimé Leon Dore website here

CHECK OUT Aimé Leon Dore INSTAGRAM

LEMAIRE

Lemaire is distinguished by its understated elegance and gender-neutral style, merging Parisian chic with Asian influences for a modular wardrobe. Known for luxury quality, the brand features loose cuts, fluid lines, and neutral colours, using high-quality fabrics from Europe and Japan to emphasise craftsmanship.

Check out the LEMAIRE website here

check out LEMAIRE instagram here

NORSE PROJECTS

Norse Projects is a Danish brand renowned for its minimalist and functional style, deeply rooted in workwear traditions. It offers a perfect balance between style and utility, crafting high-quality products designed to endure. Known for its Nordic casual elegance, Norse Projects transcends being just a brand—it's a lifestyle choice, emphasising durability and timeless design in modern menswear.

Check out the nores projects i website here

check out norse projects instagram here

OFFICINE GÉNÉRALE

This Paris-based brand is recognised for thoughtful clothes that blend casual officecore with upscale allure. Officine Générale modernises tailoring through iconic pieces like relaxed jackets and perfect-fit trousers. The brand's ethical mindset and multi-generational appeal are reflected in every aspect of its collection.

CHECK OUT THE OFFICINE GÉNÉRALE WEBSITE HERE

Check out Officine Générale instagram here

CASABLANCA

Casablanca is celebrated for its luxurious designs that blend leisurewear with a sporty aesthetic. Drawing on its founder's dual heritage, the brand fuses Parisian elegance with Moroccan charm, offering high-quality pieces with bold prints and rich colours. Its playful sporty aesthetic evokes a high-society lifestyle, using tailoring techniques to create tennis-inspired statement pieces that reflect its Mediterranean roots.

check out the CASABLANCA website here 

check ouT CASABLANCA instagram here 

ON TREND

HOMME PLISSÉ

Known for its innovative pleating techniques, Homme Plissé offers modern menswear that combines comfort with avant-garde design. The brand features lightweight fabrics and unique textures, embodying a distinct Japanese aesthetic. By adapting Issey Miyake's iconic pleats for men, Homme Plissé embraces a gender-fluid approach, drawing timeless inspiration from Miyake's designs.

Check out the Homme Plissé Website Here 

CHECK OUT HOMME PLISSÉ INSTAGRAM HERE

JEANERICA JEANS

Jeanerica Jeans focuses on sustainably developed premium denim, offering a versatile selection designed for elevated everyday wear. With an emphasis on ethical production, the brand promotes product longevity and features small local production to ensure quality. Jeanerica is the go-to denim house for achieving the perfect full denim look.

check out the JEANERICA JEANS website here 

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WALK IN PARIS

Walk in Paris is a cultural label that captures the essence of 90s hip-hop with its cosmopolitan fashion. Known for its "lazy chic" streetwear inspired by the 70s, the brand offers a French vision of the American dream. It extends its cultural influence into music and dance and has collaborated with notable names like Schott and Le Meurice, making it a standout in the modern fashion landscape.

check out the WALK IN PARIS website here 

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SAMSØE SAMSØE

Rooted in Scandinavian simplicity, SAMSØE SAMSØE crafts versatile items that embody sophisticated utility and a contemporary lifestyle. Its collections focus on modern essentials, offering easy-to-assemble looks that seamlessly integrate into any wardrobe. The brand recently showcased its commitment to basics with an exhibition in Le Marais, highlighting its dedication to timeless design and practicality.

checkout the SAMSØE SAMSØE website here 

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RAISING TALENTS

MAGLIANO

Magliano is an Italian fashion brand celebrated for its deconstructed style and artful subversion, offering unconventional designs that blend poetry with irony. The brand pays homage to Italian subcultures and has earned recognition, including winning the Karl Lagerfeld Prize at the LVMH Prize 2023. With a spontaneous and zany identity driven by the designer's vision, Magliano continues to push boundaries in contemporary menswear.

Check out the Magliano website here

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HED MAYNER

Hed Mayner is a fashion brand renowned for its oversized silhouettes and high-quality, conceptual designs. Celebrated for audacious proportions and the reinterpretation of traditional garments, the brand draws influences from spiritual attire, casual sportswear, and military tailoring. With a visionary spirit, Hed Mayner has collaborated with brands like Desigual and Reebok, consistently exploring new dimensions in contemporary fashion.

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A KIND OF GUISE

A Kind of Guise is a fashion brand that blends contemporary style with timeless elegance, offering class and functionality. Known for its local luxury crafts and Balkan-inspired embroidery, the brand emphasises unique hand-crafted details. It exclusively uses ethically produced materials, showcasing global savoir-faire by drawing aesthetics from diverse world cultures to create high-quality garments.

check out the A KIND OF GUISE website here

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SÉFR

Séfr is a Swedish fashion brand that embodies the essence of vintage-inspired Scandinavian minimalism. Known for its elaborate silhouettes, neutral colours, and detailed design, Séfr seamlessly blends retro influences with a modern sensibility. The brand offers luxury clothing at premium prices, crafting statement pieces that reflect heritage with an edge and crafted clarity.

check out the Séfr website here

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HIDDEN GEMS

DRAPEAU NOIR

Drapeau Noir embodies discreet, timeless masculine elegance with a focus on simple and accessible designs. Crafted in Europe, the brand emphasises fine materials and quality craftsmanship, creating a comfortable wardrobe that reflects the true Parisian boy style. As an ethical project, it prioritises human relations and know-how, ensuring that each piece is not only stylish but also responsibly made.

Check out the Drapeau Noir website here

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KARDO

Kardo celebrates Indian clothing traditions with a modern twist for today's men. The brand is known for its slow fashion approach, using traditional weaving and dyeing techniques often handmade by local craftsmen. Kardo's collections feature geometric patterns and natural colours that reflect its rich heritage, offering limited-capsule collections that emphasise individuality and craftsmanship.

Check out the KARDO website here 

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CMMN SWDN

At the crossroads of streetwear, retro influences, and classic tailoring techniques, CMMN SWDN elevates everyday fashion with hybrid silhouettes and bold patterns. The brand's aesthetic is characterised by the juxtaposition of contrasting elements, drawing inspiration from African cultures to create an avant-garde approach to menswear that challenges conventional norms.

Check out the CMMN SWDN website here

CHECK OUT CMMN SWDN INSTAGRAM HERE

RIER

Rier draws from the cultural heritage of the Alps to create clothing that combines elegant practicality with artisanal design. The brand is known for its felted wool coats and thick wool knits, reinterpreted for a modern wardrobe. Rier collaborates with family-run businesses to maintain a human-scale network, ensuring authenticity and quality in every piece while highlighting its last collaboration with Salomon.

Check out the RIER website here

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GREG LABORATORY

Greg Laboratory is the innovative solo project of renowned designer Greg Jackson, known for his work with New Balance, District Vision, and Aimé Leon Dore. The brand is celebrated for its "Study of Uniform," offering a fresh take on modern silhouettes by integrating technical outerwear construction into traditional menswear tailoring. With a focus on quality and a gender-neutral approach, Greg Laboratory creates clothes for another reality, blending functionality with cutting-edge design to redefine contemporary fashion.

CHECK OUT THE GREG LABORATORY website here

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Access the printable exclusive and our full White Paper below.

Printable version of exclusive here

IADS White Paper - Middle Managers

Since its inception in 1928, the IADS’ purpose has been to coordinate information between department stores worldwide and research their activities to help them address the many challenges they must face. This translates into many responsibilities carried out by the IADS, all solely intended to provide insights to its members and help them have a broader understanding of the shifting business environment.

Every year since 2020, the IADS has produced a White Paper on a specific topic perceived as important for its members. In 2020, the purpose was to collect the learnings from the pandemic and how to make sure department stores would be prepared for the next crisis. The 2021 White Paper was dedicated to digital transformation and its impact on the organisation. In 2022, it was all about the development of sustainability, CSR and ESG in retail businesses. The 2023 edition was dedicated to retail media.

In 2024, the White Paper was dedicated to middle management. The IADS believes that middle managers’ distinct blend of operational knowledge, leadership, and adaptability enables them to deal with retail challenges, but also address transformation and foster innovation. In an era of automation and AI, middle managers have strategic importance as they are pivotal in integrating new technologies, redesigning roles, and ensuring that human judgment and creativity complement technological advancements.

Introduction: middle managers, the overlooked pillars of retail

Middle managers in retail are often seen as cogs in a machine, tasked with implementing corporate directives while ensuring day-to-day operations run smoothly. As “managers of managers”, they have served as connectors between the C-suite and frontline teams, ensuring operational efficiency. Yet this perception fails to capture the depth of their responsibilities. They are not merely intermediaries but strategists, problem-solvers, and motivators who directly influence employee engagement, customer satisfaction, and financial performance.

However, decades of centralisation, cost-cutting, and technological advances have diminished their roles. Once seen as essential to a company’s heartbeat, middle managers were sidelined and perceived as bureaucratic overhead. In reality, middle managers are expected to juggle competing priorities from facilitating operations to managing teams and monitoring performance, productivity and financial effectiveness. They have dual accountability to both corporate leadership and frontline teams, making their role uniquely challenging and impactful.

As retail evolves into an omnichannel ecosystem where agility and innovation are paramount, the role of middle management continues to be questioned. The IADS believes their role will be increasingly critical in driving innovation, including AI, and organisations should equip them with the tools and authority they need to succeed. Finally, in the wake of the AI revolution, middle managers are best positioned to re-bundle roles, theirs and their teams.

The multifaceted role of middle managers in retail

Middle management scope is a mix of strategic and tactical responsibilities. As explained in the IADS white paper, middle managers wear many hats, making their role one of the most dynamic and demanding in the retail industry. Also, their duties are sometimes unclear: while they have clear objectives, it is up to them to decide the best way to achieve them. Their responsibilities can be broadly categorised into four key areas:

• Facilitating operations: at its core, middle management is about turning strategy into action. They facilitate any needed changes in an organisation and create an effective working environment for day-to-day operations.
• Monitoring performance, productivity and financial effectiveness: they monitor their department's performance and are responsible for reporting to the management above them. They build action plans to improve results or fix issues.
• Communicating: perhaps the most overlooked aspect of middle management is its role as a communication bridge. Middle managers translate high-level corporate strategies into actionable plans for frontline staff while simultaneously relaying feedback from the ground up. This two-way communication ensures alignment between strategic goals and operational realities.
• Managing teams: one of the most essential functions of a middle manager is recruiting, motivating, leading and inspiring their team. These tasks require emotional intelligence as much as technical skills. A McKinsey survey cited in the white paper found that 75% of respondents identified their boss as the most stressful aspect of their job. After all, employees leave managers, not companies. Conversely, supportive middle managers foster trust, psychological safety, and motivation among their teams. As a result, middle managers significantly influence employee satisfaction, directly impacting performance and productivity.

Another key aspect of the middle manager's role is that they rely on the contributions of their line managers and collaborate with other departments to achieve results, which means they depend on the results of others and not only on their direct contribution. Even if they tend to have a team of support personnel and a network of HQ contacts to help them do the job, they must be extremely good at relationships, communication and interaction with others. Middle managers must identify, understand, and harness their networks to drive performance and achieve goals. They become influencers.

Middle management empowerment and appreciation work hand in hand

Middle management is 80% leadership, and 20% is management. As leadership is crucial, organisations must empower middle management to unlock their full potential. To that end, companies should invest in leadership development by providing targeted training programmes to build skills such as conflict resolution, data-driven decision-making and change management. Organisations can also empower middle managers’ decision-making by granting them greater autonomy that can foster a higher sense of ownership.

Empowering middle managers means providing them with resources and granting them the authority and means to implement significant changes. The IADS believes empowering middle managers in retail can deliver tangible benefits for organisations, from better management capabilities to enhanced decision-making skills and higher staff engagement. Also, empowerment can lead to a culture of continuous improvement, as autonomy helps middle managers make decisions, implement changes and develop a unique sense of identity and belonging.

Retaining good middle managers is more difficult than for senior managers. As a result, the achievements of middle managers should be recognised to boost morale and retention. In that perspective, promotion is not always an adequate solution, and it does not mean taking a step higher on the company ladder. There are other options to recognise middle managers' performance:

• Compensation remains a way to acknowledge performance and promote middle managers. C-suite executives traditionally have a higher salary than middle managers. Sometimes, giving a middle manager the same compensation as a C-suite member can show how much the company cares.
• Giving stock and stock options is an interesting option for listed companies.
• A bigger sphere: rather than promoting middle managers to a higher position or the C-suite, they can expand their scope without changing the essentials of their jobs.
• Title changes can acknowledge a new level of seniority mirrored with increased responsibility and rewards.
• Challenging assignments to test new ideas about how to make things better.
• Autonomy and flexible work arrangements.
• Involve middle managers in the company strategy, and important decisions can help them feel valued, trusted and empowered, which can, in turn, improve the quality of the decisions made.
• Include them in a project outside their daily routine: a top head buyer could be involved and valuable in a warehousing project, for example.

Finally, mentoring middle managers is often an untapped practice for empowerment. As businesses navigate complexities, the IADS white paper explains how mentoring fosters a culture of continuous improvement by allowing discussion of challenges, sharing successes, and seeking guidance. It is also a way for middle managers to refine their communication skills, ensuring clear directives, constructive feedback, and optimised team collaboration. Also, mentoring provides insights into the company’s vision, mission, and strategies, empowering and guiding middle managers to make decisions that contribute to overall success.

There are many forms of mentoring, from traditional one-on-one to reverse or group mentoring. However, peer mentoring is a powerful and effective support system that truly harnesses the power of relationships. By building valuable relationships among peers, managers can share real-time challenges with colleagues in a safe space, allowing for mutual advice and feedback. Peer mentoring provides honest coaching on improving systems, processes, and people management.

Re-bundling roles: middle managers' impact on innovation and transformation

The rebundling of middle management roles through AI integration represents a paradigm shift for retail. This transformation is not about replacing their roles but amplifying their potential. The IADS believes middle managers’ roles can be redefined to ensure they can focus on their core responsibilities by reducing the amount of administrative work and low-added-value tasks and transitioning from task executioners to strategic leaders who drive innovation. By automating routine tasks and providing actionable insights, AI not only improves operational efficiency but also elevates the role of middle management into a pivotal force for business success.

With the AI revolution, middle managers should be seen as innovators. As automation and AI redefine the workplace, middle managers bridge technology and human employees by facilitating technology adoption. While AI can handle administrative tasks, the human judgment, empathy, and creativity that middle managers bring remain irreplaceable. This re-bundling of tasks will allow middle managers to focus on what they do best: connecting people, solving problems, and driving innovation. The very nature of their dual tactic and strategic role will allow them to understand the areas where AI will make a difference and how to reshape their team's role. Their experience in change management will make them perfect guides for teams to accept and use AI tools.

Generative AI can improve middle managers' managing capabilities. Emerging tools show a promising future, be it personalised training and capability-building programmes, recommendations based on individual needs and preferences or creating immersive role-playing scenarios. Generative AI could also boost a manager’s capabilities as a career counsellor, as AI-powered talent platforms could provide a broader range of potential career paths and the specific job experience and training needed to achieve them. Also, AI can optimise team performance by identifying team strengths and areas for development. Generative AI will also help middle managers better monitor performance as AI tools can automate the creation of reports and dashboards, freeing middle and frontline managers alike from data compilation and giving them the necessary time for analysis, more meaningful reports and relevant action plans allowed by refined data.

Conclusion: a call to action for retail leaders

Middle managers occupy a critical yet often underappreciated role. They are the glue that binds corporate strategy to frontline execution, ensuring that ambitious visions translate into tangible results. Middle managers are no longer just implementors or "managers of managers." They are connectors, innovators and change agents, essential for navigating the complexities of today’s retail. Their in-house relationship networks and ability to adapt to changing circumstances and drive operational efficiency will be critical to ensuring the organisation’s sustainability and growth.

While it is financially unrealistic to expect CEOs to grow the middle managers’ layer, they can recognise their importance. This can be done through various benefits and perks and even by offering the best middle managers a seat at the strategy table. It is also a matter of simple recognition: exchanging with them, walking around, asking questions, and having lunch with them are all measures to show gratitude and how they care.

Also, by investing in this pivotal layer of leadership, department stores can unlock new performance levels, agility, and innovation. Good middle managers are retail’s “unicorns”, rare, valuable, and vital to the industry’s future. It’s time to recognise their potential and empower them to lead the way.

The IADS believes retailers can transform middle management from a bottleneck into a competitive advantage by investing in leadership development, fostering open communication, granting autonomy, and leveraging technology to help redefine roles. In doing so, they enhance organisational agility and create a more engaged workforce. Middle managers may not always be in the spotlight, but they are undoubtedly the unsung heroes shaping innovation and excellence. For retail executives, the challenge is clear: rethink how middle management is perceived, supported and empowered.

Credits: IADS (Christine Montard)

Printable version here

Check out the pictures here

Last November, the IADS had the opportunity to visit the recently revamped Oxford Street John Lewis store with its higher management. This was the perfect opportunity to review John Lewis's recent history and see how this overhaul fits into a larger narrative of change for a company that has been going through difficult moments in its recent history.

John Lewis & Partners: the English Grand Old Lady

John Lewis was founded in 1864 as a drapery shop on Oxford Street by the eponymous businessman. He then acquired the Peter Jones store (opened in 1877 in Sloane Square) after Jones passed away in 1905. That was the beginning of the expansion: the Jessops & Son store in Nottingham was the first store outside London to be purchased in 1933. It was rebranded as a John Lewis store only in 2002 . Then, the company acquired the Selfridges Provincial Stores company in 1940  and a store in Reading, Heelas, in 1953 (here again, the name survived untouched until 2001).

Going beyond acquisitions, the department store company started in the seventies to build new stores to relocate city-centre units in the then-newfound malls: the Jessops store in Nottingham was relocated from its historic city-centre location to the Victoria Centre mall in 1972, the Bainbridge’s store in Newcastle (founded in 1838 and sold to John Lewis in 1952) was relocated to the Eldon Square shopping centre in 1976, for instance. Soon, the company started to build from scratch new units without a pre-existing base, such as London’s Brent Cross in 1976 (in a new mall), Milton Keynes store in 1979 (in the middle of a newly-erected city), the Cheadle store in Manchester (1995), Canary Wharf in 2011, or the White City store in the Westfield mall in 2018. Today, the company operates 34 stores exclusively under the John Lewis name across England, Wales and Scotland. The largest is the historical Oxford Street store (39k sqm), followed by the Glasgow store, which opened in 1999.

The department store group acquired a supermarket chain, Waite, Rose & Taylor (later shortened to Waitrose), in 1937. Today, Waitrose operates 329 stores in the UK, including 65 “little Waitrose” stores (a convenience store format) and several locations in the Middle East.

As a group (including Waitrose), John Lewis is special because it was designed as a “partnership” back in 1929: every team member is a de facto company shareholder. While the partnership constitution was published in 1928, promoted by John Spedan Lewis, son of the founder, it was not coming out of the blue: he had set up a staff council and a charitable donation committee as early as 1919, and in 1920, then de facto partners received their first bonus in the form of share promises. Caring for employees has been in the DNA of the company since its inception: John Lewis Partnership implemented a medical service in 1929, 19 years before the National Health Service was created in the UK, and in 1950 the partnership was secured through the Second Trust Settlement (ultimate control of the company was secured to Trustees). Finally, starting in 1970, partners began to receive their bonuses in cash rather than cash and shares.

Finally, the last iconic element about John Lewis & Partners is the pledge, made in 1925, known to every English citizen: “never knowingly undersold.” In effect, this meant that any customer seeing a price difference with the competition (national chains) during a period of 28 days after purchase could claim a refund of the difference. This was a very powerful marketing tool for 97 years until the pledge was retired in August 2022.

Recent ups and downs

John Lewis recent difficulties did not start with the COVID-19 pandemic as, in 2018, profits slumped to almost zero due to the cost of the Never Knowingly Undersold pledge. While Brexit did not foster a positive mood in terms of inflation, this situation came from the increasingly competitive landscape, including online, with pure players who had different cost structures. No wonder, therefore, that the pledge was changed in 2022 to “for all life’s moments”, to the country's dismay, a measure seen as vital to balance the business in the wake of a continuous online business progression (even though this was a costly £500m decision).

Leadership, as a consequence, was challenged: the fifth Partnership Chairman, Sir Charlie Mayfield (a company veteran, who joined John Lewis in 2000), stepped down in 2020 after thirteen years, to be replaced by Dame Sharon White, while then Executive Director, Paula Nickolds (who had joined John Lewis in 1994 and succeeded to Andy Street in 2017), was replaced the same year by Pippa Wicks, coming from Coop.

new, sometimes non-retail related projects:

Facing a growing discontent, Pippa Wicks left in 2023 and Dame White became increasingly challenged. The same year, the CEO position was created to address the needed changes, with Nish Kankiwala appointed with the mission to cut costs, which generated much speculation about the Partnership’s specific structure’s future. After immediate measures (such as headquarter size reduction, jobs cuts, and the scrapping of non-retail plans), 2024 saw the appointment of a new Managing Director, Peter Ruis, the company’s former buying and brand chief, a new chairman, Tesco veteran Jason Terry as a replacement of Dame White (whose tenure was the shortest in the partnership history), and the “Never Knowingly Undersold” pledge return in September, with great success: 25 online retailers (including Amazon) are now systematically monitored in all categories, and customers are given a 7 days price guarantee, through cash refunds (not vouchers). The pledge return had immediate results within the two weeks following its re-implementation, in terms of sales, margin and NPS.

These changes coincided with a change in John Lewis’ fortune since the company posted a £42m pre-tax profit in 2023-2024, up from a £78m loss the previous year, which gave the company enough confidence to confirm their target of reaching £400m profit by 2027-2028. Under Ruis’ leadership, John Lewis focused on its retail assets to become relevant again, and this translated into team reorganisations and new investments, with the Peter Jones store slated for a massive overhaul, coming on top of a £800m budget dedicated to stores improvements, including £6.5m to immediately inject novelty in the Oxford Street store. In parallel, John Lewis improved its private labels, customer services (it recently announced a deal with Pay Now Buy Later operator Klarna) and additional sources of revenue (through, for instance, a retail media platform operated with Dunnhumby unveiled last October).

In its latest financial exercise (2023-2024, closed in January 2024), the John Lewis department store unit posted a total of 4,765£m in trading sales (-4%), a revenue of 3,644£m (down -4% vs. 2023, and from 3,961£m at its peak in 2018), and a trading operating profit of 689m£ (+2%), i.e. 14% on trading sales, and a net operating profit of £147m, up from a loss of £160m the previous year, and three years of continuous losses. These results were achieved through a total of 13.4m customers in the year, of which 53% used digital channels for their shoppers. The rest visited the remaining 34 department store units in the UK (completed by smaller format stores and community-centric units).

The loyalty program has 6m members, who spend triple the average clientele and are growing +15% year on year. A new app, co-developed with Dunhumbby (the Tesco Club card creator and John Lewis’ partner for retail media), has been launched with new, individualised services, such as individualized coupons and promotions or exclusive events.

What is new in Oxford Street?

The John Lewis Crown Jewel store is the company’s oldest and largest, covering 39,000 sqm on seven floors. It includes food in the basement, tech on the top floor and a roof garden with F&B options (the store boasts cafes, bars and restaurant options on each floor). Regarding traffic, the store welcomes 22,000 customers a week, primarily domestic (all the more since the tax-free shopping scrapping ), and coming with public transportation (the nearby car park does not seem to impact traffic), with an average conversion rate of 35% in regular weeks and 65% during peak times, mainly coming through the two main entrances on Oxford Street (one leading directly to beauty, the other one to fragrances).

To give a sense of comparison, the Peter Jones store is the third largest but posts half of the Oxford Street store’s turnover. Also, compared to the rest of the John Lewis stores, the Oxford Street one is rather specific regarding customer nature, younger and more affluent than the average John Lewis client. Therefore, it is no surprise that the new management focused on producing extremely quick results in this location to materialise the change (through new brands, new instore design, emphasis on quality, services and experience) and invested £6.5m in revamping specific zones in the store, such as the beauty hall, a long-time traffic magnet and now the largest in the country.

Given the store's size and the many categories presented, the below list of points of interest is a subjective selection based on what has been renovated and upgraded.

Ground floor: the beauty hall

The ground floor includes a rather disconcerting number of categories: beauty, hairdryers, women’s accessories and handbags, menswear and men’s shoes, and sunglasses.

The beauty zone (20% of the total business) was one of the main areas of focus for the store revamp: For the first time, John Lewis separated beauty from fragrances, introduced 75 new brands, teamed up with majors to renovate 90% of the 41 beauty counters in the past nine months, and launched a self-discovery area where customers can spot new beauty brands without salespersons’ assistance.

Make-up is located close to hair care; it is a new category per se, including brands such as Dyson. Finally, fragrances are presented in a new self-standing concept that will be reproduced in other John Lewis stores.

First floor: jewellery, watches and women’s shoes 

The first-floor houses lingerie, nightwear, women’s shoes, womenswear and jewellery.

Initially located on the ground floor, the jewellery category was set up in an entirely new concept on the first floor. It uses a profusion of light and open space to give an impression of choice while focusing on the products. It also addresses profitability concerns (and leaves more space for more profitable categories on the ground floor). Open displays with small brand reminders allow for stacking more brands and easing their change when needed. It is interesting to note the attention to lighting: products are emphasised thanks to the ceiling spots and smaller, focused lights integrated into the tables themselves.

The piercing stand, a must for many Brittons, is strategically located nearby. This stand allows customers to select their piece of jewellery and wear it on the go (it is operated through a concession model). Interestingly, the personal shopper area is also very near, which allows customers to potentially complete their looks with shiny accessories while transitioning to the nearby womenswear area.

The “Shoe Room” is entirely new, with an open concept, a radical difference from the previous structure with “brand boxes”.

Womenswear (40% of the total business) has also evolved, introducing 100 new brands each half of the year, an unprecedented rhythm for the company, to become the “house of best brands”. Regarding the business model, the store dropped SOR and went into full concessions, allowing for more high-profile collaborations. This approach has been implemented in the 4 top John Lewis stores since September 2024. The department also emphasizes the John Lewis private label, which in the WRTW category represents 50% of John Lewis' total private label sales (which, in turn, represent 20 to 25% of the total store sales).

Second floor: Waterstones bookstore, Benugo Café

This floor houses bed, bath and linen products, home accessories, gifts, lighting, mirrors, the first Waterstone’s shop-in-shop, and the Benugo Café.

It took 6 months from initial conversations to opening a 200 sqm Waterstone bookstore on this floor, selling 20,000 titles. Due to the speed of execution, some crucial details remain to be fixed. For instance, the Waterstone cash desks cannot process John Lewis’ sales and vice versa. Teams are actively working on this crucial point, which prevents from mixing loyalty programmes in the store.

Both Waterstones and Benugo are concessions (Benugo operates various shops in the store). Their rather surprising location (in front of beds and pillows, a rather quiet section) is simply due to the fact that they took a former back-of-store space that was available and ready for a productive upgrade. Waterstones has proven to be a real traffic magnet since then.

Third floor: furniture studio and the upcoming Jamie Oliver school

This floor is home to beds, bedrooms, furniture, a kitchen, sofas and seasonal stores (Christmas, with a stunning 85% sell-through rate).

While the set-up is inspirational and allows customers to project themselves, IKEA-style, John Lewis leaves much liberty to brands to fit their shops in shops, contrary to the lower floors. Here, the most striking is the profusion of customer promises, from free delivery to free return, the possibility of choosing every detail and customizing sofas, for instance, and the return of the 100-year-old pledge in a very visible manner.

John Lewis executives were excited to announce the planned opening of a Jamie Oliver café and cookery school next spring. This is obviously a very efficient way to signal all the ongoing changes at John Lewis and generate buzz.

Fourth floor: the Lego stand

This floor is home to baby & children wear, haberdashery and crafts, and everything kids. The most striking is probably the very large Lego shop in shop with a complete offer and decor, located at the exit of the escalator. Toys remain a very efficient category for John Lewis (a stark difference with other department stores in the world, and which shows also how John Lewis has managed to remain connected to its customers’ everyday lives). It struck a deal with Lego, trading a prime location in terms of visibility and traffic, for a complete revamp of the space at the brand’s expenses.

Fifth floor: computers

This floor houses TV, audio and everything tech (5% of the total business), sports, and travel goods.

John Lewis has put much effort into their tech space, reproducing a 1960’s IBM machine as a central display unit. The rationale was to upgrade the overall feeling to remain competitive with the nearby Apple concession (the second brand in sales for the whole store). Each brand is given demo space, screens, stools to allow customers to stay and test in actual conditions laptops… but the most intriguing is, here also, the repeat of customer promises as well as the educational effort: operating systems, screens and CPU capabilities are explained in simple terms to allow customers to make their choices confidently.

How does John Lewis cope with the promise of a superior standard of service?

To stand with its promises, John Lewis is counting on its app to measure in real-time its customers’ satisfaction, but not only. They also measure customers’ trust through a panel of 1,000 members that answer questions every month, coming on top of stores’ individualised NPS.

This goes hand in hand with new initiatives: for instance, in-store mobile payment was launched and generalised to the whole store in August 2024. To further differentiate from online competition, John Lewis also emphasizes its guarantees (visible all across the store). When it comes to online sales, stores are incentivised when sales are made from their POS (even though products are then shipped from the central warehouse).

Conclusion: what to think of the much-hyped Oxford Street store revamp?

*According to people familiar with its previous version, the store's changes bring a radically different experience during a visit. According to them, a visit to the basement, which has not been revamped in a similar fashion, gives a proper idea of what the store was like a year ago (or, from that perspective, the luggage section on the fifth floor).

From that perspective, this is, therefore, a success, even though it has to be euphemised by the fact that the relatively low investment (6.5m£ does not represent much to spend in a 39,000 sqm store) also meant that some aspects were left aside: what to think, for instance, of the fact that the escalators paintings were not retouched?

The new spaces (beauty, jewellery, womenswear) and partnerships (Waterstone, Benugo, Jamie Oliver) can instead be seen as “proofs of concepts” that change can happen even at John Lewis, and its materialisation to the general public and the associates (one must remember that they have gone through serious challenges in the past years). From that point of view, this is a total success, as a new type of energy was clearly palpable during the visit, with sales associates enthusiastic and proud to explain how they were doing things differently.

Another striking point was the transparency and reassurance given to everyone: customers on the sales floor (with guarantees in terms of price-matching, delivery delay, 25 years guarantee on sofas, free delivery upon a sales threshold, and return options) but also to staff, through clear, transparent explanations on how bonuses are calculated, for instance. It is difficult to know if this is a new initiative or a well-established tradition. Still, one must recognize that even visiting John Lewis’ offices gives an entirely different impression from its competitors not so far away. The new company management seems confident that their actions will bring concrete and quick results, and they might be right in thinking so.*

Credits: IADS (Selvane Mohandas du Ménil)

What: Global retailers face urgent pressure to redesign their store networks as extreme weather events cause unprecedented operational disruptions and financial losses totalling USD 320 billion in 2024.

Why it is important: The convergence of physical climate risks, insurance challenges, and regulatory pressures is forcing retailers to fundamentally rethink their store network strategies, marking a pivotal shift in how the fashion industry approaches physical retail planning.

Recent climate catastrophes, from Los Angeles wildfires to European floods, are compelling the fashion industry to reassess its approach to retail store networks. The unprecedented scale of these events, resulting in global losses of USD 320 billion in 2024, has exposed vulnerabilities in traditional retail strategies. While retailers have historically relied on insurance to manage climate risks, this safety net is showing signs of strain, with some insurers in California already withdrawing wildfire coverage and similar trends emerging in Europe. The fashion industry's sprawling retail footprint, often concentrated in major cities and tourist destinations, faces particular exposure to these risks. A new sector of weather risk analysts is emerging to help retailers map climate risks and adapt their strategies accordingly. The European Union's mandatory climate risk reporting requirements, coupled with similar proposals in the US, are adding regulatory pressure to this challenge. This convergence of factors is pushing retailers to consider not just immediate physical risks but also long-term viability of store locations and network design.

IADS Notes: Recent industry data strongly reinforces the article's concerns about climate impacts on retail operations. In May 2024, Visa reported a significant drop in consumer spending due to severe weather conditions, while July 2024 saw Hudson's Bay forced to close multiple Canadian locations during an unprecedented heat wave that overwhelmed store HVAC systems. These incidents align with the article's emphasis on increasing weather-related disruptions to retail operations. The industry's response has been evident in strategic adaptations, as demonstrated by major retailers like Macy's announcement in December 2024 to close 150 stores and Kohl's January 2025 decision to shutter 27 locations. These moves suggest that retailers are not only reacting to immediate climate threats but are also fundamentally rethinking their physical footprint to create more resilient and adaptable store networks.

Faced with extreme weather, should fashion rethink its store network?

What: Major retailers abandon century-old inventory accounting method as modern technology enables more accurate cost-based approaches.

Why it is important: This transition represents a fundamental shift in retail operations, enabling more accurate inventory management and better decision-making through modern technology, while addressing long-standing issues with traditional accounting methods.

The retail industry is moving away from the retail inventory method (RIM), a century-old accounting practice that relies on retail prices to estimate inventory value. Despite its widespread use by major retailers including Target, Walmart, and Kohl's, RIM's limitations have become increasingly apparent in the digital age. The method's reliance on retail prices for inventory valuation can distort business metrics and influence merchandising decisions, particularly around markdowns. Modern retailers like Macy's and Nordstrom are transitioning to cost accounting, which leverages current technology to provide more precise inventory tracking and valuation based on actual costs. While this transition requires significant operational changes, it promises better inventory visibility, more accurate financial reporting, and improved decision-making capabilities.

IADS Notes: The industry's move away from the retail inventory method (RIM) reflects broader retail modernisation trends. This shift aligns with Macy's November 2024 three-part strategy emphasising operational modernisation and technology integration, though the recent discovery of hidden delivery expenses highlights ongoing challenges in financial controls. The transition comes as retailers seek greater operational efficiency, with October 2024 data showing promising results from Macy's innovation strategy in modernising operations. The urgency for change is underscored by a March 2024 report identifying 4.5% average revenue loss due to inventory inefficiencies. December 2024's Q3 results from Macy's further demonstrate the complex balance between transformation initiatives and maintaining operational oversight. The shift from RIM to cost accounting represents a fundamental change in how retailers approach inventory management, reflecting the industry's broader evolution toward data-driven, technology-enabled operations that provide greater accuracy and transparency.

Nordstrom and Macy’s abandoned the ‘retail inventory method’ after using it for decades

What: A new framework built around fairness, access, inclusion, and representation (FAIR) emerges as retailers move away from conventional DEI practices, focusing on measurable results and systemic changes rather than symbolic initiatives.

Why it is important: This strategic pivot responds to the dual challenge of maintaining inclusive workplaces while addressing criticism of conventional DEI approaches, offering retailers a practical framework for achieving meaningful organisational change.

The evolution from traditional DEI practices to a FAIR framework represents a significant shift in how organisations approach workplace equity. With 91% of workers reporting discrimination experiences and only 52% supporting current DEI approaches, this new framework addresses fundamental workplace challenges through measurable outcomes rather than symbolic gestures. The FAIR model emphasises systemic changes in four key areas: fairness in success opportunities and discrimination protection, access to full participation across all environments, inclusion that ensures respect and safety for all identities, and representation that goes beyond demographics to focus on advocating for diverse needs. This approach moves away from individual-centered, isolated interventions toward coalition-driven, systems-focused solutions that benefit all stakeholders while maintaining accountability for measurable progress.

IADS Notes:The retail industry's evolution toward a FAIR framework is evidenced by recent strategic shifts among major players. On November 28, 2024, Walmart pioneered a significant transformation by removing explicit DEI language while maintaining core inclusion practices, demonstrating a shift toward outcomes-based approaches. This was followed by contrasting responses in the first week of January 2025, when Costco chose to maintain its traditional DEI policies despite activist pressure, while other retailers sought middle ground. By January 13, 2025, Amazon's decision to rebrand its diversity initiatives under "Inclusive eXperiences and Technology" further validated the article's emphasis on focusing on measurable results rather than terminology. These developments collectively illustrate the retail industry's move toward the article's proposed framework of fairness, access, inclusion, and representation, with companies increasingly prioritising tangible outcomes over symbolic gestures.

What comes after DEI

What: Amazon Stores CEO Doug Herrington identifies AI as the most significant technological revolution since the internet, predicting its potential to create entirely new retail formats while transforming existing operations.

Why it is important: The comparison to the internet revolution underscores the magnitude of AI's potential impact on retail, suggesting that companies must prepare for radical changes in how they operate and engage with customers.

Doug Herrington, CEO of Worldwide Amazon Stores, emphasised at the National Retail Federation's Big Show that AI represents the most transformative technology since the internet's advent. While acknowledging that mobile and social media were significant developments, he believes AI's impact will be far more comprehensive. The technology is already showing its value through applications like Rufus, Amazon's conversational shopping assistant, which has handled half a billion customer queries that traditional search couldn't address. AI is also revolutionizing customer reviews through automated summarization and tackling persistent challenges like sizing and fit in fashion through sophisticated data analysis. Herrington highlighted Amazon's unique approach to innovation, revealing how the company's culture encourages risk-taking and experimentation, allowing projects to move forward with minimal senior approval to foster innovation. This philosophy, established by founder Jeff Bezos, emphasises that more value has historically been lost by companies failing to innovate than by those who try and fail.

IADS Notes: Amazon's vision of AI as a transformative force in retail aligns with broader industry developments throughout 2024. The NRF conference in January 2024 established AI as the primary driver of retail transformation, setting the stage for major innovations. This was exemplified by Walmart's launch of its Wallaby AI system in October 2024, demonstrating how retailers are developing proprietary AI platforms to create new shopping experiences. The industry's commitment to AI adoption is further evidenced by the widespread shift from traditional tools to AI-driven solutions, though a significant gap is emerging between AI-ready retailers and those lagging behind. Amazon's emphasis on allowing innovation to flourish, even at the risk of failure, represents a crucial approach as the retail industry navigates this technological revolution, potentially spawning entirely new retail formats.

Amazon Stores CEO says AI may spawn new retail formats