What: John Lewis unveils comprehensive transformation strategy focusing on enhanced customer service, premium fashion, and technological innovation while reviving its historic price pledge.

Why it is important: The strategy demonstrates how traditional department stores can successfully blend heritage with innovation to remain competitive in today's retail landscape. John Lewis is implementing a transformative strategy that combines its historic brand values with modern retail innovation.

Under Peter Ruis's leadership, the company has revitalised its "Never Knowingly Undersold" pledge, modernising it with AI technology to match prices across 25 major competitors. The retailer is investing GBP 800 million in store renovations, with significant focus on enhancing beauty departments and expanding premium fashion offerings. The transformation encompasses both physical and digital improvements, including increased shop floor staffing and technological upgrades worth GBP 6 million for digital headsets and mobile payment solutions.

The strategy extends to sustainability initiatives through partnerships with luxury resale platform Sign of the Times and children's wear resale service The Little Loop. A flagship transformation of Peter Jones in Chelsea aims to create a world-class department store, demonstrating John Lewis's ambition to redefine the retail experience.

IADS Notes: Following the relaunch of "Never Knowingly Undersold" in September 2024, John Lewis saw an immediate 55% increase in daily website visits. The October 2024 announcement of an GBP 800 million investment in retail infrastructure marked a decisive shift towards core retail operations, moving away from earlier diversification plans. The transformation of the Peter Jones store, combined with the expansion of premium fashion brands and sustainability initiatives, reflects the retailer's commitment to blending traditional excellence with modern consumer expectations.

Where Peter Ruis sees opportunities for John Lewis

John Lewis Episode

What: The shift from handwriting to digital tools mirrors retail's broader technological transformation while raising concerns about human connection and creativity.

Why is it important: As retailers increasingly adopt AI and digital tools, understanding the cognitive impact of technology is crucial for maintaining employee well-being and customer service quality.

The transition from handwriting to digital communication reflects a broader transformation in how humans process and create information. While digital tools offer increased efficiency and speed, research shows that handwriting creates stronger neural networks and enhances memory and creativity. This mirrors challenges in retail, where the push for digital transformation must be balanced against maintaining human connection and creativity.

The article highlights how different forms of information processing affect cognitive development, with handwriting fostering deeper learning and creative thinking compared to typing. This insight is particularly relevant as retailers navigate the integration of AI and digital tools while trying to maintain employee engagement and authentic customer connections. The findings suggest that a hybrid approach, combining digital efficiency with traditional human-centered practices, may be optimal for both cognitive development and practical application.

IADS Notes: Recent retail industry reports from October 2024 highlight how the balance between digital efficiency and human interaction is becoming crucial, with 73% of consumers feeling overwhelmed by online shopping choices. This parallels the article's insights about cognitive processing. The luxury retail sector particularly demonstrates this challenge, as noted in December 2024, with 51% of employees planning to leave their positions, highlighting the need for better integration of technology with human-centered practices. The trend toward "phygital" experiences, reported in September 2024, shows how retailers are attempting to merge digital efficiency with human interaction, much like the hybrid writing devices mentioned in the article.

How screens have rewired our brains

What: Next-generation materials in fashion, expected to grow to 8% of the fibre market by 2030, present a transformative opportunity to reduce environmental impact and costs, requiring brands to address financial, technical, and operational barriers through strategic scaling.

Why it is important: Next-gen materials can significantly enhance sustainability, cut costs, and give brands a competitive edge.

Early adoption and strategic scaling will enable brands to lead in a shifting regulatory and consumer-driven landscape while addressing critical environmental challenges. The fashion industry's reliance on traditional materials drives 92% of its emissions and accounts for a significant portion of costs. Next-generation materials offer a solution with the potential to reach 8% of the fibre market by 2030, up from the current 1%. Transitioning to these materials could reduce costs of goods sold (COGS) by approximately 4% over five years, but brands face financial, technical, and operational barriers.

A new report outlines three levers to scale adoption: driving consistent demand, optimising processes to reduce costs, and securing strategic capital. Successful integration of next-gen materials requires alignment with business strategies, risk mitigation, and leveraging industry-wide collaboration. The adoption of these materials not only cuts costs and emissions but also positions brands as leaders in sustainability, innovation, and resilience.

IADS Notes: Recent market developments demonstrate accelerating momentum in next-gen materials adoption. In October 2024, major fashion brands shifted from experimental to mainstream implementation of sustainable innovations, while Polybion's collaboration with Ganni in November 2024 showcased how luxury retailers can successfully integrate novel materials . The transformation extends beyond product development, as evidenced by Peek & Cloppenburg's January 2025 launch of their fully sustainable store concept .

This evolution is particularly timely given the March 2024 EU policy changes and France's proposed anti-fast fashion legislation , which are reshaping industry requirements. The business case is strengthened by changing consumer behaviour, with February 2025 data showing nearly half of global companies now incorporating sustainability features in new product launches , indicating a clear market shift toward environmentally conscious production methods.

Scaling next-gen materials in fashion

What: The Hong Kong and Shanghai Hotels revitalises southern Hong Kong Island with a mixed-use development that combines residential luxury with curated retail experiences.

Why it is important: The development demonstrates how heritage properties can be successfully reimagined to create vibrant retail destinations that serve both residents and visitors.

The Repulse Bay, a newly transformed mixed-use complex in southern Hong Kong Island, represents an innovative approach to retail development. Located on the site of a historic 1920s hotel that once hosted celebrities like Ernest Hemingway and Marlon Brando, the property has undergone a remarkable two-year transformation by The Hongkong and Shanghai Hotels, Limited. The development combines 402 residential units with carefully selected specialist retailers, focusing on boutique businesses rather than mainstream luxury brands. The tenant mix includes Japanese workwear brand Human Made, lifestyle shop Inside, and jewellery brand Via de Lourdes, alongside various food and beverage outlets. Under the leadership of Olaf Born, the complex maintains strong community engagement through monthly resident meetings and carefully curated events, aiming to recreate the vibrant atmosphere of its historic predecessor while serving modern retail needs.

IADS Notes:Recent trends from our database support this development's approach. In December 2024, Simon Property Group reported success with community-focused developments, achieving a 6.4% traffic increase through similar mixed-use strategies.Asian retail innovation has been particularly notable, with Bangkok's retail transformation in November 2024 showing how cultural integration can drive retail success. The project aligns with broader industry shifts identified in September 2024, where 70% of consumers prefer integrated lifestyle experiences. This approach mirrors successful developments like K11 Musea, which reported 120% sales increases above pre-pandemic levels through its cultural-retail integration strategy.

The Repulse Bay brings new retail energy to Southern Hong Kong

What: The fashion industry's latest wave of creative director appointments reveals a persistent lack of diversity, with only four of nine new 2025 appointments representing women or people of colour.

Why it is important: This trend highlights a critical disconnect between industry hiring practices and market realities, especially significant as luxury faces a 51% workforce turnover rate and growing demand for authentic storytelling from diverse consumer bases.

The luxury fashion industry's approach to creative leadership remains remarkably homogeneous, despite mounting evidence suggesting the need for change. Among 35 leading brands analysed, only ten positions are held by women and three by men of colour, with Sandra Choi being the sole woman of colour in a creative director role. This imbalance persists even as the industry faces significant market pressures and changing consumer demographics. The recent appointments for 2025, including Veronica Leoni at Calvin Klein, Sarah Burton at Givenchy, and Louise Trotter at Bottega Veneta, represent small steps toward diversity but highlight the broader systemic challenges.

Industry experts argue that this lack of diversity stems from multiple factors: systemic barriers, market uncertainty, and growing politicisation of DEI initiatives. However, playing it safe might prove risky, as consumers increasingly demand originality and authentic storytelling. Market research indicates a growing disconnect, with 77% of consumers noting increased luxury prices while perceiving declining creativity and quality. This situation is particularly concerning given the shifting wealth dynamics, where young women's earning power and global markets increasingly drive luxury growth.

IADS Notes: Recent industry developments underscore the complexity of this issue. While luxury brands maintained strong DEI commitments in February 2025 , department stores have demonstrated successful leadership transformations, as seen with Harvey Nichols' strategic appointments in November 2024 . The sector's significant workforce challenges, evidenced by a 51% turnover intention rate , further emphasise the need for diverse perspectives in creative leadership. These changes occur as retailers like Saks Global implement integrated commercial team structures , suggesting the industry recognises the need for transformation while struggling to achieve it at the creative director level.

Why are so many creative directors still white men?

What: Clinique La Prairie launches a €100 million Longevity Fund to invest in science-backed wellness startups, targeting technologies in medical, nutrition, wellness, and movement sectors.

Why it is important: The fund's launch signals a strategic shift in luxury wellness investment, capitalizing on the growing convergence of scientific validation and consumer wellness solutions at a time when traditional luxury markets face declining sales.

Clinique La Prairie's venture into investment marks a significant evolution in the luxury wellness sector with the launch of its €100 million Longevity Fund. Co-chaired by CEO Simone Gibertoni and former Nestlé chief technology officer Dr Stefan Catsicas, the fund aims to scale companies that bridge scientific innovation with longevity-focused solutions. Opening for applications in February 2025, the fund targets early-stage disruptors and series B candidates, with potential expansion to €300 million in subsequent closings. The initiative builds upon Clinique La Prairie's established presence in luxury wellness, including its high-profile retreats in Switzerland, China, and upcoming location in Saudi Arabia, which cater to executives and celebrities with programmes starting at CHF 26,900 weekly. The group's recent partnership with Beiersdorf, acquiring seven real estate assets, further strengthens its market position and creates synergies between cutting-edge treatments and wellness offerings. This strategic move reflects the industry's growing focus on scientifically validated wellness solutions and personalised health technologies.

IADS Notes: Clinique La Prairie's Longevity Fund emerges at a transformative moment in luxury wellness. As seen in January 2025, L'Oréal's introduction of Cell BioPrint technology demonstrates the market's appetite for scientifically-validated solutions. This trend aligns with Chanel's November 2024 launch of its dedicated Maison de Beauté, establishing new standards for personalized wellness services. The timing is particularly strategic given the luxury market's December 2024 data showing a 2% decline in global sales, suggesting wellness and longevity as promising growth avenues. The fund's focus on technology-driven solutions corresponds with the industry's shift toward biometric tracking and personalization, positioning it at the intersection of luxury, wellness, and technological innovation.

Longevity: The wellness world’s hottest investment

What: Japanese retail demonstrates contrasting fortunes as specialty stores gain market share while department stores navigate challenging market conditions.

Why it is important: The combination of weak consumer confidence and rising commodity prices creates a critical inflection point for traditional retail models.

Japan's retail landscape is experiencing a significant transformation as consumer confidence hits concerning lows, reaching 35.2 on the government's index in January 2025. This shift is particularly evident in the contrasting performance between retail formats. Department stores have seen their growth rate decline dramatically from 10.8% in the first half of 2024 to just 2.3% in the second half, with major city flagships maintaining momentum through tourism whilst regional stores struggle. Meanwhile, value-oriented specialty retailers like Uniqlo and Muji demonstrate remarkable resilience, with same-store sales growing by 8.6% and 11.3% respectively in January 2025. The challenges are further exemplified by the chocolate market, where global supply issues have driven prices up 66% year-on-year, forcing retailers to adapt their offerings and strategies. This divergence in performance reflects broader market dynamics, where tourism, which reached 36.9 million visitors in 2024, partially masks underlying domestic consumption challenges.

IADS Notes: As observed in January 2025, the stark contrast in retail performance is evident in J Front Retailing's results, where flagship stores achieved double-digit growth while regional locations struggled. This trend was foreshadowed in August 2024, when industry experts predicted the closure of approximately 10% of Japan's department stores over the next decade. The shift in consumer behaviour became particularly apparent in July 2024, as specialty stores in shopping centres reported 7% growth in apparel and double-digit increases in accessories. By October 2024, department store sales growth had significantly slowed, highlighting the growing divide between tourist-dependent and domestic retail segments.

Japan’s retail sector faces challenges amid weak consumer confidence

What: Multiple sustainability reporting systems and regulations are overwhelming fashion retailers and suppliers, prompting industry-wide efforts to streamline requirements.

Why it is important: The industry's struggle with multiple reporting requirements highlights the urgent need for harmonised standards, as fragmented systems risk undermining both environmental goals and supplier relationships.

The fashion industry faces mounting challenges as it grapples with an increasingly complex web of sustainability reporting requirements. Brands are developing individual approaches to comply with various regulations and standards, creating a burden for suppliers who must navigate multiple systems and input similar data repeatedly. This fragmentation is particularly challenging for manufacturers like Denim Expert Limited, whose owner highlights the inefficiency of dealing with different certification programmes and data requirements from various clients. The situation is further complicated by the cost implications, as companies invest in training, staffing, and multiple IT systems without seeing proportional returns or efficiency gains. Recent initiatives, including the UNECE's effort to develop core sustainability metrics and the Apparel Alliance's 'Supply Chain Taxonomy', demonstrate industry-wide attempts to simplify and standardise reporting. However, the challenge remains in balancing thorough oversight with practical implementation, particularly as new regulations like the EU's Omnibus Simplification Package emerge.

IADS Notes: Recent developments in retail supply chain reporting reflect an industry grappling with unprecedented regulatory complexity. As of February 2025, the EU's implementation of stricter customs reforms has intensified pressure on retailers to enhance their reporting systems. This aligns with findings from November 2024 highlighting how suppliers, especially in the Global South, struggle with multiple reporting requirements. The cost implications became evident in January 2025 when major retailers like Shein implemented new sourcing requirements, demonstrating the financial burden of compliance. However, collaborative efforts are emerging to address these challenges, as seen in December 2024 with the Apparel Alliance's 'Supply Chain Taxonomy' initiative, which aims to standardise industry terminology. The integration of technology offers some hope, with October 2024's launch of Textile Exchange's multi-party traceability system showing how digital solutions might help streamline the complex reporting landscape.

Confused by supply chain reporting rules? You’re not the only one

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: 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: Major entertainment and social media platforms are aggressively expanding into retail through multi-channel strategies, capturing USD 361 billion in social commerce sales whilst launching physical retail spaces.

Why it is important: The convergence of content and commerce is revolutionising how consumers discover and purchase products, as evidenced by 57% of TikTok Shop transactions coming from new customers, demonstrating these platforms' unique ability to drive both engagement and sales.

The retail landscape is experiencing a significant transformation as content platforms like TikTok, Netflix, and YouTube venture into commerce. These companies, originally designed for entertainment and social connection, are now developing sophisticated retail capabilities through shoppable content, dedicated marketplaces, and physical retail spaces. Netflix's ambitious plans include launching 100,000-square-foot experiential venues in Dallas and Philadelphia, featuring show-inspired dining and merchandise. Meanwhile, social media platforms, particularly TikTok, are revolutionising shopping behaviors, with projected social commerce sales expected to reach USD 800 billion by 2028. The platform's success in markets like China, where its sister app Douyin has become the largest online beauty retailer, demonstrates the potential of this hybrid model. Despite regulatory challenges, including potential bans in the US, these platforms continue to reshape consumer expectations and challenge traditional retail boundaries, forcing established retailers to adapt to a new era where entertainment, social interaction, and shopping are increasingly intertwined.

IADS Notes: The transformation of content platforms into retail powerhouses, as described in the article, is substantiated by significant market developments throughout 2024 and early 2025. TikTok Shop's emergence as the second-largest e-retailer behind Amazon during UK's Black Week in December 2024 demonstrates the platform's remarkable evolution from social media to commerce. This shift is particularly significant given that 23% of Gen Z purchases are influenced by viral TikTok trends, representing a substantial portion of their USD 360 billion spending power. Traditional retailers are responding to this disruption by adapting their strategies, as evidenced by Barnes & Noble's successful leverage of BookTok's influence. The trend extends beyond digital platforms, with Netflix's planned 100,000-square-foot experiential spaces aligning with the broader industry movement toward "third spaces" that blend entertainment and retail. This transformation is reshaping consumer expectations, with retailers increasingly integrating technologies like AR and RFID to create seamless experiences that bridge the digital-physical divide.

Why content platforms like TikTok and Netflix are turning to retail

What: Trump administration's new tariff policy targets 44% of US imports, with potential 25% duties on Mexican and Canadian goods and additional 10% on Chinese imports.

Why it is important: This policy shift represents the largest coordinated tariff action by a major economy, potentially triggering retaliatory measures and reshaping international trade relationships.

The US administration's announcement of substantial tariff increases marks a pivotal moment in global trade relations. The new policy would impose 25% tariffs on Mexican and Canadian imports (except for energy and critical minerals at 10%) and an additional 10% on Chinese goods. While implementation for Mexico and Canada is postponed during negotiations, the Chinese tariff increase is already in effect. BCG analysis projects USD 247 billion in additional costs based on current trade flows, with auto parts (USD 36 billion), vehicles (USD 30 billion), and metals (USD 19 billion) facing the heaviest impact.

Companies heavily reliant on these markets could see EBITDA margins decline by 6-14 percentage points. The policy's breadth affects integrated North American supply chains particularly severely, as Canada and Mexico account for significant portions of US imports in key sectors. Retaliatory measures from trading partners, including China's new tariffs on coal and oil and Canada's proposed countermeasures, further complicate the situation.

IADS Notes: The global trade landscape has transformed dramatically in early 2025. On January 14, BCG projected that a 60% tariff on Chinese goods would add USD 640 billion to US import costs , while December 19, 2024, saw Mexico implementing 35% tariffs on textile imports . The impact accelerated on February 4, 2025, when Trump eliminated the USD 800 de minimis rule affecting Shein and Temu , followed by China's immediate retaliatory measures against PVH and other US firms .

These developments compound existing supply chain vulnerabilities identified in January 6, 2025, when BCG's retail forecast emphasized the urgent need for more resilient operational models . This rapid succession of trade policy changes within just two months is forcing retailers to fundamentally restructure their global supply chains and sourcing strategies.

How to prepare for tariffs and the new reality of global trade

What: British Land's Broadgate expansion combines premium retail, dining, and office space near Liverpool Street station, targeting a projected 33 million annual visitors through a strategic mixed-use approach.

Why it is important: The project validates the growing trend of retail destination development around major transport hubs, with its projected 33 million visitors highlighting the potential for combining commuter traffic with leisure shopping.

British Land's transformation of Broadgate represents a significant evolution in London's retail landscape. The development, which opened its first phase in 2020, has successfully established itself as a mixed-use, seven-day destination, attracting 29 million visitors annually. The second phase, scheduled to open later this year, will add 40,000 sq ft of retail and hospitality space, featuring premium brands like Mango, Hobbs, Whistles, and Ralph Lauren.

The development's success is evidenced by a 26% annual sales increase across phase one, with particularly strong performance in health, beauty, jewellery, and fashion sectors. British Land's strategic focus on diverse customer segments is reflected in their tenant mix, with plans to enhance women's fashion offerings to balance the current male-oriented retail mix. The location's connection to Liverpool Street station, combined with the Elizabeth Line, has boosted visitor numbers, while office worker attendance exceeds London's average at 3.8 days per week. Weekend footfall has grown by 15%, with sales increasing by 36%, demonstrating the development's success in attracting both commuters and leisure shoppers.

IADS Notes: British Land's expansion of Broadgate aligns with several successful retail transformations in London during 2024-2025. The development's integration with Liverpool Street station mirrors successful transport hub strategies, as evidenced by Oxford Street's revival in December 2024, where vacancy rates plummeted to 2.2% following the Elizabeth Line's impact. The mixed-use approach parallels M&S's GBP 150 million Marble Arch development and Landsec's GBP 490 million Liverpool One acquisition, both demonstrating strong confidence in prime London retail locations. British Land's focus on diverse customer segments reflects broader industry trends, as seen in John Lewis's GBP 800 million investment programme in October 2024, which similarly emphasized enhanced customer experiences across multiple demographics. The strategic tenant mix at Broadgate, combining premium and high-street brands, follows the successful model implemented by Frasers Group across their retail portfolio, proving the effectiveness of a balanced retail approach in prime locations.

How British Land plans to create a ‘fantastic location’ for central London retail

What: Amid growing legal and political scrutiny, companies are refining diversity, equity, and inclusion (DEI) initiatives, aiming to align them with business strategies while avoiding legal risks and sustaining long-term goals.

Why it is important: DEI is vital for businesses to attract diverse talent, cultivate inclusive work cultures, and engage with an increasingly multicultural marketplace, yet companies must carefully navigate legal and reputational challenges to ensure their initiatives remain effective and compliant.

Although DEI initiatives have faced backlash, legal challenges, and political controversy, many companies are using this moment as an opportunity to strengthen and refine their inclusion strategies. High-profile decisions, such as the US Supreme Court's ruling against affirmative action, have intensified scrutiny, but firms like Nike, and Costco continue to defend aspects of their DEI policies. The need for DEI remains critical as businesses adapt to changing demographics and market demands. Experts stress that successful initiatives require leadership involvement, measurable goals, and alignment with broader business strategies. While some companies opt to rename or reframe DEI efforts, the focus must remain on fostering fair hiring practices, diverse perspectives, and inclusive cultures. Legal considerations are a key factor, with lawsuits targeting DEI practices that may violate anti-discrimination laws. However, businesses operating globally must also consider international diversity norms and regulations, which often support DEI initiatives. By treating DEI like any other strategic priority, companies can mitigate risks while leveraging its benefits, including improved talent acquisition, retention, and workplace innovation. This reflective period offers organisations a chance to reshape DEI efforts for long-term success.

IADS Notes: The retail industry's approach to DEI has undergone significant transformation since late 2024. Walmart pioneered a strategic pivot in November 2024 by maintaining inclusion practices while removing explicit DEI language, achieving strong market performance. This was followed by Amazon's rebranding of its initiatives as "Inclusive eXperiences and Technology" in January 2025, while Costco took a contrasting stance by defending its DEI programs. The emergence of the FAIR framework (Fairness, Access, Inclusion, and Representation) offers retailers a new way to balance inclusive practices with business performance, particularly as Target faces a $10 billion valuation loss and shareholder lawsuit. These developments demonstrate how retailers are adapting their social initiatives while navigating complex political and market pressures.

Rethinking DEI: challenges turn into opportunities for companies

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: Textile Exchange urges fashion industry to adopt science-based targets for nature as only 7% of brands currently address biodiversity and ecosystem impacts in their sustainability strategies.

Why it is important: This gap in nature-focused targets reveals a critical blind spot in fashion's sustainability efforts, as recent EU regulations and market trends indicate that addressing biodiversity and ecosystem impacts is becoming mandatory for business continuity.

The fashion industry's approach to environmental sustainability requires a fundamental shift, according to Textile Exchange's latest initiative. While 52% of brands have established climate-focused targets, only 7% have implemented science-based targets for nature, highlighting a significant gap in addressing broader environmental impacts. The organisation emphasises that climate and nature are intrinsically linked, making it crucial for companies to consider both aspects in their sustainability strategies.

The initiative outlines key areas for brands to address, including resource reduction, preferred raw materials sourcing, regenerative agriculture, and responsible land management. This comprehensive approach requires companies to assess their nature-related impacts, prioritise areas of concern, and implement verifiable targets. While measuring progress presents challenges due to the context-specific nature of environmental impacts, Textile Exchange suggests starting with freshwater impacts and land management, particularly relevant to fashion's raw material production. The organisation's guidance aims to help companies navigate these complexities while aligning with global frameworks and incoming EU regulations.

IADS Notes: The urgency for fashion to address its environmental impact is underscored by significant industry developments throughout 2024 and early 2025. As reported in January 2025, BCG's analysis reveals that next-generation materials could reach 8% of the fibre market by 2030, offering a concrete path to reducing the industry's environmental footprint. This aligns with regulatory pressures, as evidenced by February 2025's EU crackdown on fast fashion, requiring companies to fund textile waste management and assume greater product liability. The industry's response has been mixed; while some leaders like Kering have formally adopted science-based targets for nature, Textile Exchange's 2024 Materials Benchmark survey shows only 7% of brands following suit. The challenge is compounded by supply chain complexities, with October 2024 reports highlighting the persistent exclusion of suppliers from sustainability decisions. However, the transformation is accelerating, driven by both regulatory pressure and market opportunities, as demonstrated by Technip Energies' ambitious entry into textile recycling, signaling a shift from sustainability initiatives to core business strategies.

Fashion is neglecting nature. Now what?

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: 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: 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

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 

check out JEANERICA JEAN instagram here

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 

check out WALK IN PARIS instagram here

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 

check out SAMSØE SAMSØE instagram here 

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

Check out Magliano instagram here

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.

check out Hed Mayner's instagram here

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

check out A KIND OF GUISE instagram here

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

check out Séfr instagram here

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

Check out Drapeau Noir instagram here 

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 

CHECK OUT KARDO instagram here

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

check out RIER instagram here

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

Check out Greg Laboratory instagram here

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: Luxury groups shift strategic priorities from China to the US market as global sector faces its lowest sales rates in years.

Why it is important: This shift demonstrates how luxury brands are actively responding to market polarization, with the US emerging as a potential growth driver while Chinese consumer behavior undergoes significant transformation.

Global luxury goods companies are strategically pivoting towards the US market amidst ongoing challenges in China. The industry's recalibration is evidenced by positive signs in US luxury credit card spending, which rose 1% year-on-year in December, marking the first increase in over two years. This shift comes as the EUR 363 billion global luxury goods market grapples with historically low sales rates, complicated by China's property crisis and sluggish economy.

Major luxury conglomerates, including LVMH and Kering, are particularly focused on leveraging US wealth, buoyed by strong stock market performance and cryptocurrency gains. The potential implementation of tariffs by US President-elect Donald Trump could further strengthen the dollar, enhancing Americans' purchasing power for European luxury goods. Meanwhile, the Chinese market's challenges have significantly impacted the sector, with LVMH losing over 30 billion euros in market capitalisation over six months. The industry faces a complex balancing act, managing reduced Chinese consumer appetite while developing strategies to capture growing US market opportunities.

IADS Notes: The luxury industry's strategic pivot towards the US market, as discussed in the article, aligns with significant shifts observed throughout 2024. In October 2024, LVMH's notable 5% decline in fashion and leather goods sales highlighted the challenges in the Chinese market, while June 2024 revealed a growing "luxury fatigue" among Chinese consumers, who increasingly prefer discreet luxury experiences.

This transformation comes as the global luxury sector faces its most challenging period since the Great Recession, with December 2024 data showing a 2% market decline and the loss of 50 million consumers. The industry's response, including the focus on US growth potential and the adaptation to changing consumer behaviors, reflects a fundamental restructuring of the luxury market landscape, with American consumers projected to drive over a third of global luxury growth in 2025.

As China weakness endures, luxury groups pin hopes on US growth

What: Retailers are transforming physical spaces into community-focused third places, exemplified by Coach's Coffee Shop, as consumers seek meaningful connections beyond traditional shopping experiences.

Why it is important: This evolution marks a crucial response to post-pandemic consumer behavior, where physical retail spaces are being reimagined to address social isolation while creating deeper brand connections, as evidenced by successful implementations across luxury and mainstream retail sectors.

The retail landscape is experiencing a significant transformation as brands increasingly embrace the concept of third spaces, locations beyond work and home where people can gather and connect. This trend, originally conceptualised by sociologist Ray Oldenburg in 1989, has gained renewed relevance in response to the closure of traditional public spaces and growing digital fatigue. Coach's recent opening of a Coffee Shop at Jersey Shore Premium Outlets exemplifies this evolution, offering not only beverages but also unique brand-themed experiences through pastries modeled after classic handbag styles. This approach builds upon successful implementations by established brands like Tiffany's Blue Box Café and Ralph's Coffee shops, which have demonstrated the viability of integrating hospitality into retail environments. The trend particularly resonates with a growing consumer group dubbed "Gleamers" by WGSN, who seek simpler, more meaningful experiences in response to burnout. Industry experts emphasise that success in this space requires creating authentic experiences that encourage repeat visits and foster genuine community connections, suggesting that the future of retail lies in creating spaces that prioritise emotional engagement over traditional sales metrics.

IADS Notes: The emergence of third spaces as a key retail trend in 2025 builds upon significant developments observed throughout 2024. In November 2024, Louis Vuitton's café concept in New York demonstrated how luxury brands can successfully blend dining with brand storytelling, similar to Coach's approach with their coffee shop. The transformation of physical retail spaces gained momentum when, in October 2024, research showed how retailers were actively combating social isolation through community-focused environments. This trend was further validated by the Vogue Business Index, which highlighted how brands are successfully integrating digital tools with physical experiences to create more engaging customer interactions. By August 2024, fashion brands had already begun embracing third places as intimate, community-driven shopping destinations, setting the foundation for what would become a defining retail strategy in 2025. This evolution shows how retailers are moving beyond traditional commerce to create spaces that foster genuine connection and community engagement, while maintaining brand authenticity and commercial viability.

Why third spaces are the retail trend to tap into in 2025