What: Trump's sweeping tariffs, including a 54% rate on Chinese imports, are forcing a dramatic reallocation of retail media spending, threatening to reshape the USD 62 billion industry as brands cut advertising budgets to offset margin pressures.

Why it is important: The reallocation of retail media spending due to tariffs could accelerate the industry's evolution toward more efficient advertising models, as retailers and brands seek to maintain visibility while adapting to new economic pressures.

The implementation of Trump's extensive tariffs is catalysing significant changes in retail media spending patterns, particularly affecting Amazon's advertising ecosystem. Brands face difficult choices between absorbing tariff costs to maintain pricing and customer loyalty or raising prices and potentially losing sales momentum. The impact varies significantly by product category, with toys and games facing the highest tariff rates and import percentages. This has prompted many brands to cut advertising spend as a first response to margin compression, potentially dampening Amazon's consistent growth in ad investment. Beyond simple budget reductions, companies are fundamentally rethinking their retail media strategies, prioritising efficiency over growth and conducting detailed contribution margin analyses to determine which products can sustain advertising support. Interestingly, some industry experts advocate maintaining advertising investment while competitors retreat, suggesting opportunities for market share gains through improved conversion optimization rather than reduced spending. The situation is particularly complex for Chinese sellers, who maintain significant advantages despite the tariff environment and are pursuing more aggressive brand-building strategies.

IADS Notes: The impact of Trump's tariffs on retail media spending emerges at a critical juncture in the industry's evolution. As reported in March 2025, BCG's projection of USD 640 billion in additional import costs coincides with retailers' need to optimise their advertising efficiency. This pressure intensified in February 2025 when the elimination of the USD 800 de minimis rule disrupted e-commerce operations, forcing brands to reconsider their digital marketing strategies. However, the retail media sector shows resilience, with January 2025 seeing Amazon's strategic move to offer its advertising technology to other retailers, suggesting a path toward standardisation. This development builds on July 2024 research showing retail media networks could double retailers' margins from 1.7% to 4.3%. With March 2024 projections targeting USD 100 billion in US retail media spending by 2027, the industry faces a pivotal moment where tariff pressures could either accelerate digital transformation or force significant reallocation of marketing resources.

Tariff shock may drive major shift in retail media spending

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Every IADS event is designed to allow the Association members to learn from each other, and the General Assembly is no exception. This is why the 2024 edition took place in Türkiye. It was the perfect opportunity for one of the IADS’ newest members, Boyner Grup, to showcase the progress made since the COVID-19 pandemic and how it radically reinvented itself to adapt to the new market conditions.

The text below is a synthesis of two presentations made by Nurçin Koçoğlu, CMO, and Efsun Janset Yilmaz, E-commerce Deputy General Manager, to explain the extent to which Boyner's transformation process has challenged the company's structures and successfully reimagined every touchpoint with its customers.

It has been stripped of confidential information, including the Q&A section, which IADS members can find in the meeting recap related to the 2024 General Assembly on the IADS Website.

When times change, retailers need to do the same… but how? Boyner has a method.

Boyner has always been proud of its customer-centricity, and the group has often been the most innovative in Türkiye. In addition to being the first department store in the country, it introduced the first instalment credit card in 1998 and was also the first retailer to offer customer assistance in 2003. Given that the COVID-19 pandemic significantly changed consumer behaviour, especially among younger generations, the company recognised the need to recalibrate its foundation.

For this reason, Boyner embarked on a comprehensive study four years ago to decode their customers' emotional expectations. The findings revealed a desire for an immersive, boundaryless shopping experience that transcends traditional channel barriers. Customers were not merely looking for products, which was Boyner’s value proposition then, but seeking inspiration and an emotional connection akin to a seductive shopping experience.

The teams found that they had to develop new, transformational ideas to adapt. Boyner as a group had to transform itself if it wanted to go from retailer (selling products) to a “multi-brand lifestyle company” as it aimed to become, offering experiences and emotional engagement1.

To achieve this vision, Boyner launched a multi-level project in 2020 involving 120 team members across marketing, logistics, and cultural sectors to redefine the brand’s identity and experiential offerings. In addition to redefining the brand platform, values, and vision, they were tasked with imagining the company's future and presenting new ideas on every aspect of the business (including logistics, IT, marketing…, etc.) to the leadership monthly.

This reinvention was facilitated by Boyner's proprietary customer data, either directly or through its dedicated subsidiary, Hopi. It encouraged a transformation based on crafting individual interactions with customers at every step of their journey, from the store to the products offered, the digital ecosystem and how everything should interact.

A multi-layered approach for a new generation of stores 

The most visible result of this internal effort was the new store concept, with the first iteration implemented in Cadde. It took a bold approach, mixing art (including collaboration with 10 artists to decorate the store), sustainability (how the store was designed, built, and decorated), and a focus on sport and lifestyle to target younger customers.

However, the results of the study went deeper and involved more structural changes in the mindsets than simply a new store concept:

• Make the stores more experiential, planning to renovate 40% by 2024. To enhance the experience, Boyner struck a deal with Costa Coffee, a chain not present in Türkiye, to have their first store at the entrance of the new Boyner store, enticing customers with the smell of coffee. At Istinye Park, the second iteration of the new concept, Costa Coffee is integrated into the middle of the store to allow customers to relax during their purchases. Today, eight Costa Coffees have been deployed, always linked with Boyner stores.
• The introduction of Boyner Dynamic, addressing a new type of clientele by focusing on the active category,
• Collaborations with artists at the product level (launch of capsule collections) and when designing the new concept, with an art collection on display in the store, digital artworks, and a giant 3D screen. Customers can also customise their purchases and gifts. Consequently, stores feel as much like a gallery as a retail environment, designed to enrich the customer journey by stimulating all senses.
• New approach to community management with new types of events, such as the Boyner Dynamic Fest, designed to encourage interaction and inclusivity.

These changes had rapid effects: NPS in renovated stores increased by 24% on average.

A method to gather communities around the Boyner points of sales

Boyner’s community-driven events, including the Dynamic Fest and partnerships with sports and art communities, position the company as a lifestyle hub to align with modern consumers’ emphasis on experiences. The Dynamic Fest, which attracted 8,000 attendees this year (up from 7,000 last year), exemplifies Boyner’s efforts to build communities around shared interests. These events are co-created with brands and marketplace partners and designed to welcome everyone: customers can come with their friends, pets, and kids… the event had a satisfaction rating of 4.8 over five this year.

Coming to the notion of community, the Dynamic Festival is also a significant success for its disinterested approach: participants value this event for the connection and value-sharing it allows. This year, Boyner mitigates the cost by asking its partners to participate, including the marketplace brands. It is also a great opportunity to coupon special offers.

From intuition to data-driven decision-making 

Boyner's advanced data infrastructure underpins these initiatives, supporting real-time insights on their 4.4m active customers (out of a 12.1m customer base), predictive modelling, and micro-segmentation. The data strategy enhances Boyner's CRM and leverages AI for tasks like sentiment analysis in customer interactions, enabling faster responses to emerging issues. This AI and data science integration has allowed Boyner to optimise customer journeys, with 100 unique paths designed to cater to specific needs based on 154 micro attributes. It also allows “inspiration walls” powered by data.

Along with improving the customer journey, AI is deeply integrated into the company’s operation at every level. For instance, AI has been used to design a capsule collection of 32 products for Fabrica, a private label, reducing the design-to-market time from 3 to 1 month. Customer complaints are analysed and summarised weekly and forwarded to the relevant stores and contacts for action.

As a result, the customer base in the younger age segments has increased by 162% in 3 years, and 24% identify as Boyner-only customers.

Next year, the next step is to implement an approach similar to what is being done in private banking in terms of personalisation and tailor-made interactions, for online and in-store contact points with a 360° approach. It will be implemented in the loyalty scheme during the first quarter and in the omnichannel programme in the second one. By empowering sales staff with enriched customer data, Boyner aims to offer bespoke recommendations and exclusive offers, aligning perfectly with its mission to transform shopping into a memorable and meaningful experience while creating new revenue streams through more profitable omnichannel customers.

But how to reinvent itself online too?

Today, the online and omnichannel current situation at Boyner is as follows:

• 18% of total customers are considered “omnichannel” (+24% increase), who spend +35% in new concept “experience” stores and spend +25% more.
• 30% of total sales are made online and while time spent by users increased by +35%, unpaid traffic has also consistently increased by 30% over the past two years.
• 40% of total traffic is unpaid, with the goal to reach 50% next year (growth has exceeded +30% over the past two years due to using CRM), as this is a key element of Boyner’s strategy to mitigate rising user acquisition costs.

This is not an accident, as this stems from the changes brought to the business in the past years. Collaborations with sustainable and inclusive projects create emotional engagement (this approach is deeply ingrained in the organisation, as teams include a person contributing to sustainable and DEI initiatives). Boyner’s commitment to social responsibility and sustainability further enhances its brand value, especially among younger consumers who are increasingly purpose-driven.

In addition, hyper-personalisation is now integrated throughout an omnichannel journey, offering customised experiences and fostering deep customer loyalty, especially among younger consumers—a demographic that has grown significantly in Boyner’s base in recent years.

Boyner doubles down by deploying new initiatives:

• A new delivery channel, Boyner Now, offering a very energetic and much-appreciated service and experience coming as a complement to Boyner.com, the e-commerce arm,
• The launch of a marketplace,
• The launch of an influencer platform, Inclub,
• The systematic use of AI in various innovative activities related to e-commerce (customisation, gaming, efficiency, mostly).

A glimpse at Boyner Now

Boyner Now, launched in June 2022, is a fashion quick-commerce platform which addresses common online shopping challenges by offering same- (90 minutes) or next-day delivery options, enhancing convenience, and providing real-time tracking for customer satisfaction. The 'try before you buy' feature allows customers to receive products (used by 60% of customers), try them at home, and only pay for what they keep, with flexible payment options available (including paying on the spot via credit card to the delivery person). Despite a minimum delivery promise of 90 minutes, Boyner Now achieves an average delivery time of one hour, covering 40 locations with 25 stores, and grows by 20% per month.

The platform's sales account for 6% of Boyner's total, a significant achievement given its limited geographical reach compared to Boyner.com's nationwide presence. Boyner Now is performing especially well during the gifting season (sales are tripling) thanks to its ease of use (customers pick a product that is almost immediately delivered to their loved ones). This is why Boyner has developed an AI-powered gift assistant that simplifies the gifting process for customers (Now Gifting).

Understanding the marketplace strategy

In July 2024, Boyner expanded its digital footprint by launching a marketplace operation, adding over 500 new brands and 40 new categories to Boyner.com within three months. This marketplace includes popular fashion and lifestyle brands such as Dyson, Seiko, Casio, and Apple, which are unavailable in Boyner's physical stores. The marketplace aims to contribute 15-20% of Boyner's turnover in the coming year, and expansion to international brands is underway, hopefully contributing EUR 30m next year, after a year of existence.

Nurturing influencers with Inclub

Boyner's influencer platform, Inclub, launched as an MVP, which supports 200 influencers (influence marketing contributes 15% of sales, and Inclub is here to amplify this strategy). Onboarding has been designed to be extremely simple, and the app offers detailed reporting in real-time, allowing sales to be tracked. The next iteration of this idea will be to develop a system that will enable micro-influencers to sell products directly from Boyner’s website in 2025.

Going all-in with AI

Boyner is reimagining its website and app to create a more fashion-forward, content-rich, and interactive platform, positioning itself as a social commerce channel thanks to AI technologies. It is all about personalisation, gamification, and efficiency strategies:

The company's AI-driven projects include Türkiye's first AI-designed collection, developed in collaboration with Design Studio. This initiative reduces the design-to-production timeline from two to three months to just one month, resulting in an 80% sell-through rate for the 8,000 products manufactured (basic, clean looks, everyday products).

Additionally, Boyner utilises AI for demand forecasting and planning, allowing real-time capacity planning, monitoring demand and tracking allocations. This cascades to the customer level, with personalised shopping recommendations, enhancing the overall customer experience at checkout: AI helps Boyner make additional recommendations to customers (either based on the most successful items or the items viewed by the customer during the purchase journey) to suggest new styles, similar products, or complete the look.

AI is also infused into the customer experience through gamification, ensuring that every time the customer returns online, the experience differs and brings surprises. A hundred different journeys have been created and based on micro-segmentation of customer profiles, as identified using AI.

The search function being crucial in e-commerce, Boyner partners with Google, Meta, and TikTok, focusing on predictive audience analysis and creative enhancements. The company emphasises the importance of dynamic media and micro-segmentation in its digital marketing efforts, aiming to move away from static displays and deliver tailored messages across platforms. There is also an ongoing collaboration with Microsoft to implement natural language search.

Product reviews and comments are essential for Boyner, as they can increase conversion rates by 15-20% compared to products without comments. An AI-powered comment summariser helps condense customer feedback, making it easier for shoppers to make informed decisions. This is also contributing to significantly reduced return rates.

In an era defined by rapid shifts in consumer behavior and rising expectations, Boyner stands out as a retailer that has successfully transformed itself into a “multi-brand lifestyle company.” By embracing customer-centricity as its guiding principle, leveraging data and AI to personalise experiences, and creating immersive, emotion-rich store environments, Boyner has managed to engage younger audiences and deepen loyalty across its customer base. Its multifaceted strategy—reimagining physical spaces, building vibrant communities, expanding through marketplace offerings, and integrating influencer platforms—demonstrates how a legacy retailer can adapt and thrive in the age of omnichannel commerce. As Boyner continues to experiment, refine, and scale its innovative initiatives, its journey offers valuable insights into how retail can evolve to meet the evolving needs and desires of today’s consumers.

Credits: IADS (Selvane Mohandas du Ménil)

1We started to report this new strategy in 2022: <https://www.iads.org/web/iads/5469-iads-exclusive-boyner-the-multi-brand-lifestyle-company.php>

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The fastest growing major economy in the worldi, India has an unconventional approach to spending. Generally a saving economy, consumer spending around festivals in India is significantly boosted across categories like clothing, jewellery, groceries and confectionery, and luxury goods. The festival season in India refers to an approximately 45-day period starting in September with pre-festival sales and ending with Diwali, occurring usually at the end of October or the start of November. With a population of over a billion people, the consumer expenditure over this festival period is a key economic driver for the country.

Parallelly, the Indian retail industry is a major component of its economy (see our report following the Retailers Association of India presentation during the FIRA meeting in 2023 here). It contributes over 10% of the GDP and accounts for around 8% of employmentii. Combining a substantial middle class with increasing purchasing power and a largely unexplored retail market, India is a new favourite for global retail giants. This is evident with behemoths like IKEA, Decathlon and Sephora to name a few. Luxury brands have also garnered traction in the Indian market with the propensity of consumption for luxury goods in India rising with the expansion of the middle class. The advent of the Unified Payments Interface (UPI) transformed the Indian retail industry. UPI is a real-time digital payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). According to a PwC India report, UPI accounted for over 78% of total retail digital payments in India and expects that it will contribute 90% of total retail digital payments by 2026iii.

Experiences driving economic value

In this analysis, a festival refers to a day or period of celebration, typically for religious reasons. While Indian festivals are primarily religious, they are culturally significant and may have linkages across religious and regional communities. While Indian festivals occur throughout the year, festival season refers to a broadly two-month period (September and October, with the possibility of including the start of November) that covers a nine-day festival called Navratri (literally ‘nine nights’, it is known as Dussehra or Pujo in some parts of the country) followed by the five days of Diwali. In some states, this season can start as early as mid-August. The periods before and in between these festivals are also interpreted as festival season due to continuity and commercial activities.

The economic value of festivals in India is underscored by providing an experience that brings together over a billion people. These festivals combine:

• Co-creation: individual or community participation in various events like dances, music and other cultural activities,
• Storytelling: a religious or cultural narrative that surrounds the emergence and importance of the festival,
• Connection: broader community engagement through aesthetics, gifting, and so on,
• Escapism: a break from everyday life and connection with something larger than self,
• Loyalty: faithfulness to the concept ensuring ideological continuity.

![HBR Pine and Gilmore (1999)

Pine and Gilmore’s theory on the experience economy explains this further. Based on the four posited realms of an experience, each Indian festival is a vast enough concept to offer options for all possible combinations envisioned. For example, escapism is achieved at the intersection of active participation and immersion during Navratri by participating in traditional dances in large communal spaces. Each festival also requires its specific kind of decoration developing the aesthetic sense of the experience. During Diwali, the festival of lights and prosperity, places are decorated with various kinds of lights including traditional oil lamps, ‘diya’.

The theory goes on to expand on how experiences can command premium pricing as the most differentiated category of economic goods. While this theory revolves around companies selling experiences, it is applicable to the case of these large Indian festivals. From street hawkers to multinational companies, every seller commoditises festivals to increase sales.

Impact and adaptations

Indian festivals generate enormous primary and secondary economic activity. A significant amount of consumer goods categories such as garments, FMCG, jewellery, liquor, automobile, traditional industries and more make a notable portion of their sales (between 30 and 40% of sales for automobiles and appliances to as high as 50% on groceries and confectionary) during festival season. The country also has a significant informal market which is highly engaged during this time. Despite inflation, consumer spending during the 2024 festive season has remained steady with industries escalating their sales expectations and targets.

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) traditionally observe ‘muhurat trading’ which refers to a 60-minute window to trade on Diwali as the festival signifies prosperity and good luck. Various studies have been conducted to research the economic impact of festivals on stock indices with differing results. The broad consensus is that the pre-festival effect is significant due to the large quantities of products bought and sold. One study on the BSE indices over a three-month period shows that they absorb the effects around Diwaliiv.

It is around Diwali that most households purchase high-value items such as appliances, jewellery, smartphones and automobiles given the combination of auspicious timing for consumers and robust promotional offers. Around 30-40% of sales of automobiles occur during the festive seasonv. The appliance industry has also seen around 30% growth driven by e-commerce sales and heightened demand for premiumisation. Jewellery, another paramount sector, saw domestic prices surge by over 15%. However, the All India Gem and Jewellery Domestic Council (GJC) still anticipated a 30% increase in gold jewellery retail sales during the 2024 festive season. Local and international brands found new ways to combine luxury and affordability to engage customers.

International e-commerce platforms and brands in general have adapted their strategies to take advantage of the Indian festive season. For example, Amazon India in 2024 strengthened its workforce with around 110,000 new hires in tier two and three regions to meet festive demandvii. All global brands present in India have promotions and events during this period. This is also a time for new launches and campaigns, collector’s editions of luxury products, and specialised gifting.

The Indian diaspora also provides a notable market for Diwali-related products and events. For example, in the UK, the 2021 census showed that 3.1% (or approximately 1.86 million people) identified as having Indian ethnicity. In recent years, brands have also held Diwali events outside India with high-level diaspora and Indian invitees; Condé Nast Traveller and Cartier hosted a Diwali Ball in London studded with VIPs and artistsviii.

Business case: Amazon India

Amazon India is one of the best examples of an e-commerce brand adapting to the Indian market and its specificities. Amazon India launched the Amazon Great Indian Festival(AGIF) in 2015 which is now its biggest sale event of the year in India. What started off as a five-day sale in October, has surpassed itself year-on-year with a duration of over a month (between September 27 and October 29) in 2024, its best performing year so far.

Amazon India saw a 70% increase in sellers crossing INR 10 million (EUR 112,923) compared to 2023. Over 42,000 sellers experienced their highest-ever single-day sales during this period. The usage of Amazon Pay ICICI Bank credit card surged 50% over last year. One-third of all customers embraced Amazon Pay UPI during AGIF 2024 - a staggering 20% yearly jump, with 80% users from tier two and three cities.

One of the first e-commerce movers to create a special event for festival sales, Amazon India set the standard for both international and Indian brands to adapt to consumers’ growing expectation of intense promotional offers during festivals. Following the Covid-19 pandemic, the company shifted its focus to targeting consumers outside of metropolitan cities, in tier two and three regions. In 2024, over 85% of customers of the AGIF were from non-metro cities. This is a key development as the expansion of India’s middle-class hinges on growth outside major cities. Though Amazon India has significant competitors in the Indian market, international companies can draw inspiration to reach the non-urban Indian consumer that constitutes the bulk of the middle class.

The potential for Galeries Lafayette’s India ventures

Galeries Lafayette announced in 2022 that it would open two locations in India: in New Delhi and Mumbai. It is clear that to establish their salience in the Indian market, the veteran French department store will have to cater to regional differences between the political and commercial capitals while matching up to the advanced e-commerce ecosystem of India.

Festival season will, without a doubt, be a key timeframe. Luxury brands are already taking note of the Indian festival season. From Jimmy Choo’s Diwali capsule collection to Christian Louboutin’s collection entitled ‘The Diwali Edit’, there are an increasing number of brands catering to Indian luxury shoppers. Giving its shoppers a unique experience during festival season could set Galeries Lafayette apart. With differing clientele in Mumbai and New Delhi, this may mean tailored events for each city while ensuring it doesn’t lose customers to FOMO (‘fear of missing out’).

Domestic travel

There is also a rise in domestic travel during festival season. The three main categories are individuals returning to their native places to celebrate with extended family and domestic travel for spiritual reasons as well as for leisure. Post the COVID-19 pandemic, there has been a rise in spiritual tourism. In 2024, Agoda, a travel booking platform, reported a notable 10% increase in searches for spiritual destinations during festival season. Across religions, Indians seem to have a higher propensity for pilgrimage and holy destinations.

About three-quarters of urban Indians planned travel during the festive September to December period with similar preferences regarding domestic and international across generations with more than 20% of respondents to the survey citing the festive atmosphere as a reason to travel during this periodix. Shorter vacations and long weekends along with festive promotional deals drive this tendency.

Conclusion

While the concept of festivals is not unique to India, they manifest in a distinctive manner at a colossal scale in the country. Moreover, having not just singular but multiple festivals to create a season subsequently enables economic actors to capitalise on the seasonal peak as a whole. It is tempting to compare the duration from Black Friday to Christmas in the West and Lunar New Year in China and though similar in certain economic aspects such as commercialisation, there is no discernible festival economy in those countries.

India’s expanding middle class, growing preference for premium products, and rising disposable income, combined with the traditional festival economy results in a notable and planned consumer spending spike annually. Innovative brands and platforms are tapping into this by fabricating similar experiences to boost sales. For example, India saw a record number of Black Friday deals which were used by many sellers to get rid of excess stock left over from the festival season.

Festivals in India are vast experiences that generate economic value within its social and cultural fabric. Brands must constantly innovate to fully capture the potential of this unusual period while understanding its cultural underpinnings. These events are also celebrated in different manners across different states, regions and communities. The diversity of India reflects the need to make sure that brand offerings and communication is in line and relevant to its target group. A one-size-fits-all approach has hardly ever provided fruitful results in the massive nation and during a time as important as the festival season, the margin for error can be very low. A final example to illustrate this - during Diwali, it is common in North India and among certain communities to gamble as this is considered an auspicious time. However, in the south and among other communities, gambling is considered an unholy activity during a spiritual time. A wide betting campaign in this case is likely to do more harm than good given its dispersed audience. Understanding micro contexts in India is key and even more so to maximise the opportunity presented by the Indian festival economy.

Credits: IADS (Anchita Ranka)

i] [IMF World Economic Outlook – July 2024

ii] [https://www.ibef.org/industry/retail-india

iii] [https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/publications/the-indian-payments-handbook-–-2023–2028.pdf

[iv] Chougule, A.R., & Khamborkar, A. (2014). A Study of Seasonality in Stock Market: With Special Reference to Diwali Effect.

[v]<https://www.grantthornton.in/en/insights/thought-leadership/festive-auto-survey-2024-report/>

[vi] <https://retail.economictimes.indiatimes.com/news/consumer-durables-and-information-technology/consumer-electronics/festive-sales-buoyed-by-online-sales-premiumisation-appliance-makers-expect-up-to-30-growth/114672455?action=profilecompletion&utmsource=Mailer&utmmedium=newsletter&utmcampaign=etretailnews2024-10-28&dt=2024-10-28&em=YXJhbmthQGlhZHMub3Jn>

[vii] <https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/amazon-india-strengthens-workforce-to-meet-festive-demand-in-tier-2-3-regions/114455833>

[viii]<https://www.cntraveller.com/article/conde-nast-traveller-diwali-party-2024>

[ix] <https://travel.economictimes.indiatimes.com/news/research-and-statistics/research/three-quarter-of-urban-indians-plan-festive-season-travel-domestic-destinations-leads/112884913>

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*Every IADS event is designed to allow the Association members to learn from each other, and the General Assembly is no exception. This is why the 2024 edition took place in Türkiye. It was the perfect opportunity for one of the IADS’ newest members, Boyner Grup, to showcase the progress made since the COVID-19 pandemic and how it radically reinvented itself to adapt to the new market conditions.

The text below is a synthesis of a presentation by Yalin Ozcan (who was CEO at the time) of Hopi, the loyalty business unit within the Boyner Grup. In ten years, Hopi evolved from a points-based loyalty programme to a retail media offering and a fintech, offering a wide array of services to customers and other retailers.

It has been stripped of confidential information, including the Q&A section, which IADS members can find in the meeting recap related to the 2024 General Assembly on the IADS Website.*

Introduction: from loyalty to FinTech

Hopi’s origins are deeply tied to Türkiye’s unique credit card and instalment culture. In 1998, Boyner (then known as Çarşı, the first name of the department store unit) took the notable step of issuing its own credit card without bank backing. Instalments became a loyalty incentive in response to local economic constraints, preceding the introduction of points-based rewards. This venture was eventually sold to HSBC, but it laid the groundwork for future programmes.

By the time Hopi launched in 2015, Boyner was, therefore, no stranger to credit-based loyalty and already had gift cards and other payment options, which were widely accepted and used by customers. Yet Hopi was conceptualised as a multi-merchant coalition from its inception, as the plan was to create a totally new type of business.

Hopi has evolved in less than ten years from a straightforward loyalty initiative into an expansive B2B2C platform delivering not only traditional loyalty services but also advanced marketing, advertising, and financial solutions.

A multi-merchant loyalty programme

In its initial incarnation as a loyalty programme, Hopi took root within Boyner department stores but was conceived from the outset to transcend that origin. The reason behind its expansion beyond Boyner’s walls lay in the realisation that instalment offerings alone had ceased to provide competitive differentiation on the Turkish market. Consequently, Hopi quickly broadened its scope to include over 300 merchant partners spanning various retail categories, from gas stations to supermarkets. Some of these partners are Boyner’s competitors, reflecting Hopi’s strategy of building a genuine coalition of retailers that enhances the programme’s national appeal.

Operating independently from Boyner, Hopi recorded 25 billion TRL (707 million USD) in GMV 2023, with the plan to double that figure in 2024. It handles some 80,000 transactions daily, supported by strict adherence to privacy regulations that mirror Europe’s GDPR standards. Such compliance ensures that while Hopi can extract insights from customer data, this information remains securely protected.

The technical integration with merchant cashier systems facilitates instant reward transactions at the point of sale, fostering a frictionless customer experience. With a membership base of 18.2 million in a nation of approximately 85 million people, Hopi’s loyalty programme coexists with individual retailers’ own initiatives, demonstrating its flexibility and inclusiveness.

Transition into MarTech capabilities towards an AdTech provider

As Hopi accumulated detailed customer knowledge, it seized the opportunity to enhance its value proposition from a simple loyalty platform to a marketing technology provider. Central to this shift was the introduction of Paracik, an in-app currency functioning as a versatile tool to incentivise spending and refine consumer engagement strategies creatively. Campaigns like the so-called “lollipop campaign” allowed brands to reward customers with Paracik upfront while retaining the option to reclaim unused balances. This approach has proven effective, driving turnover increases up to 2.3 times in certain segments, such as electronics retail.

Hopi also encouraged sharing Paracik balances among friends and relatives, recognising that socially connected rewards could motivate additional customers to join and spend more. In practice, for every Hopi user who shared Paracik, an average of 1.6 friends became active shoppers, boosting cart sizes, GMV, and overall engagement. By leveraging its data-driven insights, Hopi expanded its client base beyond traditional retailers to include brands eager for targeted and innovative marketing approaches.

Building on this MarTech progress, Hopi logically extended its capabilities into advertising technology. Its ability to segment consumer data and precisely target audiences made it an appealing partner for over 100 brands across diverse sectors like finance, cosmetics, and technology—some of whom are not even participants in the original loyalty programme. Hopi’s AdTech services deliver a competitive advantage over conventional loyalty-based promotions by offering advanced audience segmentation and selecting optimal advertising channels. This evolution from a consumer rewards platform to a fully-fledged marketing and advertising partner positioned Hopi to help businesses navigate a complex digital landscape and optimise their marketing investments.

Adding FinTech services to the range of activities

Hopi’s foray into FinTech represented a significant strategic pivot. While credit cards and loyalty points had long dominated the Turkish retail environment, roughly 20 million individuals remained without access to banking services, with a substantial proportion being women who manage their finances indirectly through family accounts. Recognising an opportunity to broaden its customer base and foster financial inclusion, Hopi introduced prepaid cards and mobile payment solutions. Rather than developing the economic infrastructure from scratch, Hopi partnered with Türkiye’s largest FinTech company, selling a stake in Hopi to this strategic ally to ensure a seamless integration of embedded finance services.

These new financial offerings include digital loans and credit services that can be approved quickly and easily within the Hopi app, removing traditional barriers to accessing credit. Within just ten months of launching these FinTech capabilities, Hopi received nearly one million finance applications, approving over half—significantly above the typical 30-35% approval rate seen among local banks. This surge translated into substantial extra transaction volumes surpassing 450 million TRL (13 million USD) in GMV and adding a lucrative, commission-based revenue stream to Hopi’s portfolio.

A journey leading to the creation of a comprehensive B2B2C ecosystem

Hopi's current incarnation epitomises a versatile B2B2C platform serving multiple stakeholders. Approximately 18.3 million users interact with the platform, generating around 83,000 daily transactions, with 300,000 daily users benefiting from a comprehensive shopping, loyalty, marketing, and financial ecosystem. On the business side, 550 partners rely on Hopi’s robust framework for building or enhancing their loyalty and customer relationship management programmes. Crucially, Hopi can provide a retailer with an entire loyalty or CRM solution from the ground up—something that would typically be resource-intensive and complex to develop independently.

Hopi’s underlying approach is enabled by its broad and varied data sources, surpassing what any retailer could accumulate individually. Complementing their existing loyalty programmes, partners gain additional insights and capabilities through Hopi, which has established itself as a leader in B2C loyalty services. The company’s ambition now is to secure its position as an indispensable partner for consumer-facing businesses, both domestically and, in time, internationally.

Hopi’s evolution encapsulates more than just the story of a loyalty programme growing into a multifaceted ecosystem—it highlights a strategic vision shaped by data, innovation, and market responsiveness. By continually adapting to consumer behaviors, regulatory frameworks, and the technological demands of modern commerce, Hopi has created an environment where retailers, brands, and customers all find tangible benefits. Its journey from credit-based instalment incentives to a fully integrated B2B2C platform—offering loyalty solutions, advanced marketing campaigns, targeted advertising, and accessible financial services—demonstrates its foresight and resilience in a rapidly shifting landscape. As Hopi now looks beyond national borders, its pioneering blend of capabilities stands as a model for how businesses can transcend traditional boundaries, ultimately becoming indispensable partners for consumer-facing enterprises worldwide.

Credits: IADS (Selvane Mohandas du Ménil)

What: The second-hand fashion market has grown to USD 100 billion globally, driven by price-conscious consumers and environmental concerns, yet most platforms struggle to achieve profitability despite rapid growth.

Why it is important: The contrast between rapid market growth and profitability challenges highlights the need for innovative business models in the circular economy, as demonstrated by Vinted's successful no-seller-fee approach.

The second-hand fashion industry has undergone a remarkable transformation, evolving from niche charity shops to a USD 100 billion global market. This growth is primarily driven by price-conscious consumers, with Vestiaire Collective reporting that second-hand designer items are 33% cheaper than firsthand fast fashion alternatives. The sector's expansion has attracted mainstream attention, with luxury resale platforms featuring in popular media and major retailers entering the market. However, profitability remains elusive for many platforms, with companies like The RealReal and thredUp experiencing significant stock value declines since their public listings. To address operational challenges, platforms are investing in technological solutions, from AI-powered listing tools to innovative authentication methods. The industry holds substantial growth potential, with analysts estimating USD 200 billion worth of luxury goods in wardrobes ready for resale, though only 3% currently reach the market. As the sector matures, companies like Vinted are demonstrating that alternative business models, focusing on user experience and operational efficiency, may hold the key to sustainable profitability.

IADS Notes: The second-hand fashion market's trajectory in 2024-2025 reveals a complex landscape of growth and challenges. While ThredUp's March 2024 projection of a USD 350 billion market by 2028 aligns with the article's reported growth from USD 30-40bn to USD 100bn, the path to profitability remains elusive for most players. Vinted's breakthrough to profitability in April 2024, achieving EUR 17.8 million in net profit, stands as a rare success story, achieved through strategic pricing and revenue diversification.

Traditional retailers' increasing participation, exemplified by H&M's French market entry in September 2024 and Harvey Nichols' Luxury Promise partnership, validates the article's observation about mainstream retail integration. Consumer behaviour data from December 2024 showing 84% of shoppers planning second-hand purchases reinforces the article's findings about price consciousness and environmental awareness driving adoption. The integration of new technologies, particularly in authentication and inventory management, addresses the operational challenges highlighted in the article, though profitability remains the sector's primary challenge as we move through 2025.

The business of second-hand clothing is booming

What: Leaders must implement five critical actions to ensure transformation benefits materialise in P&L results, addressing common sources of financial leakage.

Why it is important: The success of recent retail transformations demonstrates how proper financial oversight can help organisations navigate market challenges while delivering measurable results.

Corporate transformations face a critical challenge: ensuring their projected financial benefits materialise in the bottom line. This comprehensive analysis reveals that typically 10-20% of expected financial impact is lost before reaching P&L statements due to various forms of leakage, including price and wage increases, demand fluctuations, and operational underperformance. To address this challenge, leaders must implement disciplined financial oversight through five key actions: partnering with finance to set realistic targets, building robust tracking infrastructure, cascading awareness throughout the organization, aligning incentives with transformation objectives, and embedding a value-driven culture. The article emphasises how successful transformations require not just ambitious goals but also precise mechanisms to monitor and maximise their financial impact. This approach enables organisations to maintain credibility with investors while ensuring transformation efforts deliver tangible business outcomes. The framework presented provides a practical roadmap for leaders to bridge the gap between transformation initiatives and actual P&L results, ultimately driving sustainable financial performance.

IADS Notes: Recent retail transformations validate BCG's emphasis on disciplined financial oversight and cultural change. Macy's Q4 results in March demonstrated how precise tracking of transformation initiatives can yield tangible results, with their "First 50" pilot locations delivering consistent growth despite broader market challenges. This success was mirrored by BHV's remarkable turnaround in January, achieving €9.6 million EBITDA through strategic cost management and merchandise optimisation. Saks Global's revolutionary reorganisation in December exemplified BCG's recommendation for embedding value-driven culture, as they eliminated traditional roles in favor of technology-driven operations. Meanwhile, Breuninger's successful digital transformation in October, achieving over 50% online sales, showcased how systematic transformation can directly impact P&L outcomes when supported by robust financial tracking and accountability systems.

Making transformation count where it matters —the bottom line

What: EPA's sweeping environmental deregulation threatens fashion industry's sustainability progress by weakening emissions, air quality, and water pollution standards while potentially discouraging innovation in cleaner production technologies.

Why it is important: This development highlights the growing tension between regional environmental policies, as the US moves toward deregulation while the EU strengthens sustainability requirements, creating complex challenges for global fashion supply chains.

The EPA's latest deregulatory initiatives under the Trump administration signal a significant shift in environmental oversight that could profoundly impact the fashion industry's sustainability efforts. The sweeping rollbacks across emissions, air quality, and water pollution regulations present fashion companies with a complex dilemma: potential short-term cost savings versus long-term environmental commitments. Industry experts, including Dr Sheng Lu from the University of Delaware, warn that these changes could stifle innovation in sustainable production technologies, particularly in areas like waterless dyeing and digital printing. The deregulation's scope extends to greenhouse gas reporting requirements and mercury standards, affecting textile mills and apparel factories that rely on coal-fired power. Rachel Van Metre Kibbe of Circular Services Group emphasizes that deregulation doesn't address fundamental sustainability challenges, while the American Apparel and Footwear Association raises concerns about the impact on companies already investing in environmental compliance.

IADS Notes: The EPA's deregulation contrasts sharply with global trends in retail sustainability regulation. In March 2025, the EU implemented comprehensive sustainability reporting requirements through CSRD, CSDDD, and ESPR, while February 2025 saw the introduction of mandatory textile waste management funding for retailers. The industry's vulnerability to regulatory changes was highlighted by the January 2025 Kantamanto Market fire, demonstrating the fragility of global waste management systems. This regulatory divergence occurs as October 2024 reports revealed the limitations of market-driven environmental initiatives, while May 2024 saw the introduction of significant legislative changes promoting sustainability across fashion supply chains.

How EPA deregulation could undermine fashion’s sustainability goals

What: Corporate boards face increasing burnout risks as they navigate multiple disruptions while providing enhanced strategic guidance to management.

Why it is important: As retail undergoes rapid transformation, maintaining effective board oversight and preventing director burnout is crucial for ensuring sound governance and successful business adaptation.

The current business landscape presents significant challenges for corporate board members, who are dealing with unprecedented levels of disruption while facing increased demands on their time and expertise. Directors are now spending nearly 90 hours annually in board meetings alone, up from 70-80 hours pre-pandemic, while simultaneously managing multiple board commitments. The pressure comes from various sources: guiding companies through economic uncertainty, monitoring geopolitical risks, adapting to new regulations, and addressing emerging issues like DEI and sustainability. To prevent burnout and maintain effective governance, boards are implementing strategic time management, leveraging technology for immediate problem-solving, and developing frameworks for future decision-making. The emphasis on director well-being and mutual support through regular check-ins reflects the recognition that board effectiveness directly impacts corporate success.

IADS Notes: According to our database, retail boards are experiencing significant transformation in their governance approaches. In January 2025, research showed that constructive board disagreements have become essential for effective corporate oversight, particularly evident in cases like Macy's board restructuring. The retail sector has seen notable leadership changes, with our database showing that by October 2024, several major retailers underwent significant board and CEO transitions. This trend continued into early 2025, as companies like John Lewis eliminated their CEO role to streamline decision-making, demonstrating how boards are adapting their structures to manage increasing complexities while maintaining effective oversight.

Board burnout is a major risk to all companies— Here’s how they can protect their top directors

What: February 2025 sees retail sector post second-highest private-sector job losses amid widespread corporate restructuring, with announced layoffs seven times higher than previous year and projected store closures to exceed 15,000.

Why it is important: The scale of workforce reduction and store closures reflects the retail sector's urgent need to restructure operations, with only 38% of retailers reporting profit gains despite topline growth in 2024. The retail industry is experiencing a significant transformation marked by widespread layoffs and store closures. February's employment data reveals retail as the second-highest sector for job losses, with over 45,000 layoffs announced year-to-date compared to just 6,751 in the previous year. Major retailers are implementing substantial restructuring plans, with Joann cutting 19,000 positions, Party City eliminating 16,000, and Estée Lauder reducing up to 7,000 jobs. Corporate restructuring has particularly impacted management and support positions across companies like Starbucks, 7-Eleven, CVS, and Walmart. Store closures are accelerating, with Coresight Research projecting up to 15,000 closures in 2025, more than double the previous year's figure. This trend is driven by multiple factors, including weakening consumer confidence, tariff uncertainties, and the challenge of maintaining profitability despite topline growth. Retailers are seeking alternative ways to offset higher costs, with 28% planning to streamline their brick-and-mortar footprint and 18% reducing headcount.

IADS Notes: The current retail restructuring wave reflects deeper industry challenges. As noted in December 2024, major retailers like Macy's have accelerated their store closure plans, while department stores have seen their market share plummet to less than 3%. The industry's response varies from operational restructuring, as seen with Kohl's closure of 27 stores, to strategic consolidation through mergers like Saks and Neiman Marcus. The severity of these challenges is further emphasised by Hudson's Bay's recent bankruptcy filing, demonstrating the widespread nature of retail sector pressures.

Retail layoffs surge as retailers adjust to mounting economic and profitability pressures

What: Consumer adoption of AI shopping tools has reached a critical mass, with 38% of global shoppers actively using AI for purchase decisions.

Why it is important: With 73% of consumers feeling overwhelmed by traditional online shopping choices, AI adoption represents a crucial solution to information overload while driving significant business value, as evidenced by retailers achieving 15-30% improvement in customer service efficiency.

The retail industry is witnessing a significant shift in consumer behavior as AI shopping tools become mainstream. Recent data shows that 38% of global consumers are actively using AI for their shopping decisions, with an impressive 80% reporting positive experiences. This adoption is driven by practical applications, with 55% using AI for research, 47% for product recommendations, and 43% for deal information. The technology's impact is particularly evident in engagement metrics, showing 8% higher engagement rates and 12% more pages browsed per visit. Major retailers are responding to this trend, with companies like Amazon, Google, and Walmart implementing sophisticated AI solutions that combine personalised assistance with enhanced visual search capabilities. The success of these implementations is reflected in concrete business outcomes, with 87% of companies adopting AI reporting revenue increases of 6% or more.

IADS Notes: Consumer acceptance of AI in retail has grown steadily throughout 2024. In March, Adobe's research revealed that 58% of consumers recognised AI's positive impact on shopping experiences. By November, BCG's survey showed 38% of shoppers actively using GenAI during major sales events. This trend culminated in December 2024, when AI influenced $229 billion in holiday spending through targeted offers and personalised recommendations, demonstrating the technology's growing role in shaping consumer purchase decisions.

AI-powered shopping growing dramatically, Adobe reports

What: Retail industry faces unprecedented complexity in tariff management, requiring strategic approaches from supply chain restructuring to M&A considerations, as outlined by tariff expert Jim Pratt.

Why it is important: With consumer confidence showing its sharpest decline since 2021 due to tariff concerns, retailers must master complex tariff management strategies to protect both their operations and customer relationships.

The retail industry is navigating a complex landscape of tariff regulations that demands sophisticated management strategies. These changes encompass three key areas: country-specific tariffs that can be swiftly implemented, commodity-specific tariffs with long-term implications, and reciprocal tariffs aimed at equalising international trade relationships. The elimination of traditional avoidance methods, such as the de minimis exemption, coupled with stricter enforcement policies, has forced retailers to develop more nuanced approaches to tariff management. Companies are exploring various mitigation strategies, from supply chain restructuring to product classification optimisation, while also considering the impact on mergers and acquisitions. This evolving situation requires retailers to maintain flexibility in their approach while seeking expert guidance to navigate the increasingly complex regulatory environment. The implications extend beyond immediate operational concerns to fundamental questions of business strategy and long-term viability.

IADS Notes: The retail industry's response to tariff pressures reflects a fundamental transformation in operational strategies. As reported in March 2025, major retailers like Costco and Walmart are actively negotiating with Chinese suppliers to mitigate impact, while BCG's January 2025 analysis projects staggering additional import costs of USD 640 billion. This has triggered innovative responses, exemplified by Shein's February 2025 initiative offering 30% higher procurement prices to relocate manufacturing to Vietnam. The impact extends beyond operations to corporate strategy, as evidenced by Hudson's Bay's recent challenges highlighting how tariff considerations are reshaping retail valuations and M&A decisions. Consumer sentiment has responded accordingly, with confidence indices showing their sharpest decline since 2021, forcing retailers to balance cost management with pricing strategies. These developments underscore the article's emphasis on the need for strategic flexibility and expert guidance in navigating the complex interplay between trade policies and retail operations.

Tariffs: What brands and retailers need to know and do

What: Generative AI serves as a productivity-enhancing tool that both augments existing capabilities and enables workers to tackle previously unattainable tasks.

Why it is important: As retail undergoes digital transformation, understanding GenAI as an 'exoskeleton' rather than a replacement technology helps organisations better implement and leverage its potential while maintaining essential human elements.

Generative AI is emerging as a transformative force in retail, functioning as an 'exoskeleton' that enhances worker capabilities rather than replacing human input. Early implementations show that GenAI not only increases productivity by enabling employees to work faster and more efficiently but also empowers them to tackle tasks previously beyond their scope. While the technology may reduce the need for certain roles, its most significant impact lies in creating new opportunities and enhancing existing positions. The human element remains crucial, particularly in areas requiring empathy, ethical judgment, and relationship building. This evolution suggests a future where GenAI serves as a powerful tool that amplifies human capabilities while preserving the essential interpersonal aspects of retail operations.

IADS Notes: According to our database, retail's experience with GenAI confirms this 'exoskeleton' concept. In February 2025, research showed that 87% of retailers implementing AI witnessed revenue increases of 6% or more, while achieving 15-30% improvements in customer service efficiency. However, January 2025 data revealed that only 10% of companies successfully scale their AI applications, highlighting the importance of proper implementation. IKEA's April 2024 initiative to train 3,000 workers in AI literacy demonstrates how retailers are preparing their workforce to leverage this technology effectively, while maintaining a human-centric approach to adoption.

Gen AI's “Exoskeleton ” will spark a new era of productivity and talent growth

What: CEOs must balance cost discipline with technological innovation in 2025, as 86% plan AI investments while focusing on building resilient supply chains and streamlined operations.

Why it is important: This dual focus on cost management and technological advancement represents a critical inflection point for retail leadership, as companies that successfully integrate AI while maintaining operational efficiency are seeing significant competitive advantages in market share and profitability.

In today's uncertain retail landscape, CEOs face the complex challenge of executing strategic priorities while navigating multiple challenges, from geopolitical conflicts to market volatility. Research indicates that 40% of leaders feel unprepared for market shocks in 2025, with cost reduction emerging as their top strategic priority. However, this focus on efficiency isn't limiting growth ambitions, as two-thirds of companies plan to reinvest their cost-reduction savings into expansion opportunities. The implementation of AI and advanced analytics plays a crucial role, with 86% of organisations planning investments in these technologies this year. Success requires a delicate balance: building a culture of cost discipline while avoiding counterproductive cuts that could hinder growth. Leaders must focus on surgical cost reduction, supply chain resilience, and strategic AI deployment that reshapes core functions rather than merely automating existing processes. This approach enables companies to execute their highest-order objectives, from spurring innovation to entering new markets and upskilling talent.

IADS Notes: The retail industry's transformation through strategic cost management and AI implementation has shown significant momentum throughout 2024-2025. In March 2024, major retailers like Macy's demonstrated this shift with ambitious cost-saving strategies targeting hundreds of millions in efficiencies. By October 2024, data revealed that early AI adopters achieved remarkable success, with 87% experiencing revenue increases of 6% or more. However, the challenge of scaling these initiatives remains significant, as February 2025 data indicated only 10% of retailers successfully scaling their AI applications. This reality underscores the article's emphasis on balanced implementation, where cost discipline and technological innovation must work in tandem to drive sustainable growth.

The CEO’s guide to delivering despite uncertainty in 2025

What: EU's revised sustainability directives CSRD, CSDDD, and ESPR mandate comprehensive environmental reporting and due diligence from retailers by 2028, fundamentally transforming business practices and supply chain management.

Why it is important: This regulatory framework represents the EU's most comprehensive attempt to address retail's environmental impact, requiring significant investment in new technologies and processes while reshaping industry standards globally.

The European Union's sustainability regulations are undergoing significant revisions, with the implementation deadline for CSRD extended to 2028 and its scope adjusted to focus on larger businesses. The updated criteria now apply to companies with over 1,000 employees and EUR 50m in turnover if based in the EU, or EUR 450m if not EU-based. These directives demand comprehensive environmental reporting and supply chain due diligence, while the ESPR introduces specific requirements for waste reduction, durability, and product repairability. Digital product passports will become mandatory, tracking products from origin through their lifecycle. The regulations' impact extends beyond EU borders, affecting UK businesses trading with the bloc. While some retailers, like Passenger and Baukjen, are proactively preparing for compliance, others face challenges in securing resources and expertise. The directives also raise concerns about unintended consequences, particularly for smaller suppliers and factories lacking resources for comprehensive reporting and auditing. Despite implementation challenges, these regulations are reshaping the retail landscape, pushing the industry toward greater transparency and sustainability.

IADS Notes: The evolution of EU sustainability regulations marks a critical turning point for retail operations. As noted in February 2025, the extension of CSRD compliance deadlines to 2028 provides crucial adaptation time, though industry experts warn that up to 75% of fashion businesses could disappear within five years due to non-compliance. The industry's initial unpreparedness for these changes has led to collaborative initiatives for standardised reporting. This transformation aligns with shifting consumer preferences, as evidenced by the growing preference for repairs over replacement, suggesting that successful regulatory adaptation could become a key competitive advantage.

CSRD, CSDDD and ESPR: do you know the new letters of sustainability law?

What: Gartner study reveals modest AI productivity gains with only 37% of traditional AI users and 34% of GenAI users reporting high improvements, challenging widespread optimism about immediate impact.

Why it is important: This reality check on AI productivity gains helps business leaders make more informed decisions about AI investments and implementation strategies, particularly crucial for the retail sector where technology spending must demonstrate clear returns.

Gartner's comprehensive survey of 724 business professionals reveals a sobering reality about AI's impact on productivity, with only 37% of traditional AI users and 34% of GenAI users reporting significant gains. This finding challenges the prevalent optimism surrounding AI implementation and points to what some experts call the "AI productivity paradox." While AI shows promise in specific segments like call centers, broader organizational benefits remain elusive. The research highlights several factors contributing to limited productivity gains, including inflated expectations, implementation delays, and measurement challenges. Marketing teams demonstrate the highest success rates, while legal and HR functions lag behind, indicating the importance of context-specific applications. The study suggests that successful teams approach AI with a learning mindset rather than focusing solely on job displacement concerns. For CFOs and business leaders, this indicates the need to reset expectations and focus on creating internal conditions that enable AI to deliver its full potential.

IADS Notes: Recent market research reveals a complex landscape of AI implementation in retail, with significant gaps between investment and actual productivity gains. According to BCG's "From potential to profit" in January 2025 , only 25% of companies report meaningful value from their AI initiatives, despite high investment levels, with successful companies focusing on fewer, more strategic use cases. A Salesforce study published in Retail Dive in March 2024  highlights a critical challenge: while 93% of retailers use AI, nearly half struggle with data integration and accessibility, potentially explaining the modest productivity gains. Bain & Company's research, reported in WWD in November 2024 , adds another dimension, revealing that consumer awareness and trust remain significant hurdles, with many shoppers unaware they're using AI-powered features. This aligns with AlixPartners' findings published in April 2024 , emphasizing that successful AI implementation requires focusing on practical applications with clear business benefits rather than following technological hype. These insights collectively suggest that achieving meaningful productivity gains requires a more measured, strategic approach to AI implementation, with particular attention to data integration, consumer trust, and clear business outcomes.

CFOs should reset expectations about AI’s impact on workforce productivity and headcount

access the full CFO report here

What: Sweden leads the OECD's glass-ceiling index in 2025, while persistent gender gaps in labour participation and wages continue to hinder women's advancement across major economies.

Why it is important: This comprehensive analysis of workplace gender equality across OECD countries provides retailers with actionable insights for addressing leadership diversity gaps, especially significant as only four of nine recent creative director appointments went to women or people of colour.

The Economist's 2025 glass-ceiling index reveals Sweden's ascendance to the top position, ending Iceland's two-year dominance in workplace gender equality. The Nordic region's consistent strong performance stems from policies supporting gender equality and working parents, creating a model for other nations. Despite women's higher university graduation rates (45% compared to 36.9% for men), significant challenges persist across the OECD. Labour force participation remains lower for women at 66.6% compared to men's 81%, with stark regional variations from Iceland's 82% to Italy's 58%. The gender pay gap continues, with women earning 11.4% less than men, while board representation has improved from 21% in 2016 to 33% today. Political representation has reached a historic high, exceeding 34% of parliamentary seats. However, parental support varies dramatically, with the United States standing alone among rich nations without nationally mandated parental leave, while Hungary and Slovakia offer extensive paid leave for mothers.

IADS Notes: Recent retail industry data reinforces the glass-ceiling index findings about workplace gender inequality. While women control 75% of global discretionary spending and represent a USD 32 trillion market opportunity , they remain underrepresented in leadership positions, with only four of nine recent creative director appointments going to women or people of colour . The retail sector's high turnover rate of 51%  suggests a direct link between gender inequality and talent retention challenges. Progressive policies supporting gender equality, as seen in the Nordic countries' success, offer practical solutions for addressing these industry-wide challenges. Some positive change is emerging, exemplified by major Asian retailers like Seven & i Holdings breaking traditional barriers with more diverse leadership appointments , but significant work remains to close the global gender gap in retail leadership.

Women in the workforce: the glass-ceiling index 2025

What: BIPOC beauty brands face market access challenges as major retailers abandon diversity initiatives, prompting a strategic shift towards specialty retail partnerships.

Why it is important: The retail industry's DEI rollback threatens to destabilise USD 370 million in annual Black beauty consumer spending, reshaping market access for minority-owned brands.

Major US retailers including Walmart, Amazon, and Target are retreating from their diversity, equity and inclusion commitments, creating significant challenges for BIPOC beauty brand founders. These retailers previously championed DEI initiatives through enhanced shelf space and support programmes, particularly following the racial reckoning of 2020. However, the current rollback threatens to destabilise the momentum gained by diverse beauty brands in mainstream retail. The impact extends beyond mere shelf space, affecting critical resources like accelerators and funding programmes essential for emerging players. In response, brands are exploring alternative channels, with specialty retailers like Ulta Beauty and Sephora maintaining their DEI commitments. BIPOC-priority retailers and those participating in the 15 Percent Pledge are emerging as crucial allies, while brands strengthen their direct-to-consumer strategies and explore innovative retail formats like pop-ups and hospitality partnerships. Despite these challenges, experts remain optimistic about diversity in beauty finding new paths to growth.

IADS Notes:The retail industry's approach to DEI has undergone significant transformation since late 2024. Walmart's November 2024 strategic pivot to maintain inclusion practices while removing explicit DEI language achieved strong market performance , contrasting sharply with Target's February 2025 experience of a $10 billion valuation loss . The emergence of the FAIR framework in January 2025 offered retailers a new way to balance inclusive practices with business performance, while specialty retailers like Sephora reinforced their commitments through innovative initiatives.

BIPOC-owned beauty brands face a new reality in the post-DEI era

What: Trump's confrontational stance towards Europe catalyses a renewed focus on AI development and implementation in the retail sector, supported by substantial investment and balanced regulatory frameworks.

Why it is important: This pivotal moment in EU-US relations creates an opportunity for European retailers to establish technological independence and competitive advantage, as evidenced by the 87% of early AI adopters achieving significant revenue growth.

Europe's response to Trump's antagonistic stance marks a decisive shift in the continent's approach to AI development and implementation. Rather than retreating from the challenge, European leaders are seising this moment to foster innovation and technological independence. The EU's strategic investment of EUR 200 billion through the InvestAI initiative, coupled with France's EUR 109 billion commitment to AI infrastructure, demonstrates unprecedented commitment to technological advancement. This approach balances regulation with innovation, as the EU AI Act affects only 10-20% of enterprises while focusing on high-risk applications. The retail sector stands to benefit significantly, with European retailers already achieving 30% faster operations through AI implementation. However, challenges remain, as only 10% of retailers successfully scale their AI applications. The combination of political pressure and strategic investment creates an environment where European values and innovation can thrive together, potentially reshaping the global retail technology landscape.

IADS Notes: The retail industry's transformation through AI has gained significant momentum throughout 2024-2025. In February 2025, the EU launched its landmark EUR 200 billion InvestAI initiative, while European retailers demonstrated concrete results with 30% faster operations through AI implementation in March 2025. October 2024 data revealed that 87% of early AI adopters experienced revenue growth of 6% or higher, validating the strategic focus on technological advancement. However, January 2025 statistics showing only 10% of retailers successfully scaling their AI applications underscore the importance of the article's call for more aggressive development strategies. This data suggests that Europe's balanced approach to regulation and innovation could indeed provide a viable alternative to US and Chinese AI development models.

Trump is a gift to European AI

What: Multi-brand luxury retailers in Africa are expanding beyond traditional markets, creating new opportunities in Kenya, Angola, and Egypt.

Why it is important: This expansion signals Africa's growing importance in global luxury retail, with multi-brand stores serving as strategic entry points for international brands while navigating complex local market conditions.

Africa's luxury retail landscape is undergoing a significant transformation as multi-brand stores expand beyond the established markets of South Africa, Nigeria, and Morocco. Family dynasties like Kenya's Little Red and new ventures such as DuCarmo in Angola are reshaping the continent's luxury retail scene, offering prestigious international brands to affluent consumers. These retailers play a crucial role in markets where major luxury conglomerates have limited direct presence, providing immediate access to designer brands while navigating complex local challenges. The continent's wealth dynamics are evolving, with millionaire numbers expected to increase 65% by 2033, particularly in countries like Zambia, Uganda, and Rwanda. However, retailers face significant challenges, including high import duties, complex customs processes, and underdeveloped infrastructure. Despite these obstacles, many stores are evolving beyond traditional retail roles, offering additional services like designer support and incubator programs, demonstrating the dynamic nature of luxury retail in African markets.

IADS Notes: The expansion of luxury retail in Africa through multi-brand stores reflects broader industry trends observed throughout 2024-2025. As seen in October 2024, major retail groups like Frasers are strategically entering the African market through local partnerships, demonstrating how established companies can navigate complex regional markets. This approach aligns with the February 2025 Bain-Altagamma study, which emphasizes the need for luxury retailers to fundamentally rethink their strategies in emerging markets, balancing digital capabilities with traditional luxury values. The success of this model is particularly relevant as African millionaire numbers are projected to increase by 65% by 2033, suggesting significant potential for luxury retail growth through carefully curated multi-brand partnerships.

The retailers unlocking Africa’s luxury market

What: Trump's tariff policies trigger unprecedented restructuring of global fashion retail supply chains and consumer behaviour.

Why it is important: This restructuring represents the largest coordinated impact on fashion retail in recent history, affecting everything from sourcing strategies to consumer behavior, with BCG projecting USD 640 billion in additional import costs reshaping the industry's future.

Summary: President Trump's recent trade policies have catalysed a fundamental transformation in the fashion industry's operational landscape. The implementation of a 25% tariff on Mexican and Canadian imports, coupled with additional duties on Chinese goods, has forced fashion companies to radically rethink their supply chain strategies. This shift is particularly evident in the industry's response, with companies implementing "Trump Majeure" clauses and exploring alternative manufacturing locations. The impact extends beyond operational considerations, triggering significant consumer behavior changes, with 84% of Canadians actively reconsidering their purchasing strategies and U.S. consumer confidence showing its sharpest decline since 2021. The elimination of the USD 800 de minimis rule has affected 4 million daily shipments, particularly impacting e-commerce giants and forcing traditional retailers to adapt their business models. Major players like Shein are responding by offering substantial incentives to relocate manufacturing, while established retailers like Macy's accelerate their store optimisation plans. This complex interplay of trade policies, consumer responses, and industry adaptation signals a historic reshaping of global fashion retail dynamics.

IADS Notes: The global fashion retail landscape has undergone significant transformation since early 2025, driven by Trump's sweeping tariff policies. As reported in January 2025, BCG's projection of USD 640 billion in additional US import costs catalysed widespread supply chain restructuring. This shift gained momentum in February 2025 when Shein offered 30% higher procurement prices to relocate Chinese manufacturing to Vietnam, while the elimination of the USD 800 de minimis rule affected 4 million daily shipments. The impact extended beyond operations to consumer behavior, with March 2025 data showing 84% of Canadians pivoting towards domestic brands. The industry's response has been multifaceted, from Macy's accelerated store optimisation to the widespread adoption of "Trump Majeure" clauses. The beauty sector particularly exemplifies these challenges, with January 2025 reports showing disruption across 25,000 mass-market products.

How a global trade war could rewire the way fashion operates

What: Retail visionary Burt Tansky pioneered the modern luxury department store model by focusing on affluent customers and strategic expansion.

Why it is important: His strategic focus on affluent customers and careful market expansion created a blueprint for luxury retail success that remains relevant as department stores navigate digital transformation and market consolidation.

Burt Tansky, who passed away at 87, left an indelible mark on luxury retail through his transformative leadership at Neiman Marcus Group. Rising from humble beginnings in Pittsburgh, he shaped the modern luxury department store landscape through roles at I. Magnin, Saks Fifth Avenue, and ultimately as CEO of Bergdorf Goodman and Neiman Marcus Group. His unwavering focus on the highest-end luxury market and rejection of "bridge" brands elevated Neiman Marcus to industry-leading productivity rates exceeding USD 500 in sales per square foot. Under his leadership, the company grew from 24 to 41 stores through careful market selection, while also pioneering luxury e-commerce through neimanmarcus.com. Tansky's customer-centric approach, including personally knowing his top 250 customers, set new standards for luxury retail service. His tenure culminated in the successful USD 5.1 billion sale of the business in 2005, having transformed the company's stock value from USD 10 to USD 100 per share. Beyond his business acumen, Tansky was known for mentoring executives, maintaining strong vendor relationships, and bringing wit and warmth to the industry.

IADS Notes: Burt Tansky's legacy of luxury retail leadership continues to influence today's market transformations. As seen in February 2025, Nordstrom's appointment of a Director of Luxury Styling and creation of dedicated service spaces echoes Tansky's belief in personalised customer relationships, demonstrating how his high-touch approach remains relevant in modern retail. His strategic approach to store network development finds new expression in Saks Global's February 2025 decision to invest USD 100 million in the NorthPark Center location while closing less viable stores, showing how careful market selection remains crucial. The creation of a USD 10 billion luxury powerhouse through the Saks-Neiman Marcus merger in January 2025 validates Tansky's unwavering focus on the highest end of the market, though now enhanced by technology partnerships that he helped pioneer through early e-commerce initiatives.

How legendary Burt Tansky catapulted the Neiman Marcus Group

What: Major retailers are strategically rebranding their DEI initiatives amid political pressure and legal risks, with approaches ranging from complete terminology changes to steadfast commitment maintenance.

Why it is important: The industry's response to DEI challenges sets new precedents for how corporations can maintain inclusive practices while adapting to changing political and social pressures.

The retail industry's approach to diversity, equity, and inclusion is undergoing a significant transformation as companies navigate complex political and social pressures. Following Trump's executive orders targeting DEI programmes, companies have adopted varying strategies, from Victoria's Secret's rebranding to "inclusion and belonging" to Costco's steadfast defence of existing policies. The backlash against DEI has prompted a broader industry discussion about effective implementation, with experts highlighting the need for measurable outcomes rather than symbolic gestures. The emergence of alternative approaches, such as the FAIR framework, suggests a path forward that focuses on systemic changes and universal belonging. While some companies face significant consequences for their DEI decisions, as evidenced by Target's USD 10 billion valuation loss, others like Walmart have successfully maintained inclusive practices while modifying terminology. This period of change presents an opportunity for companies to reassess and strengthen their commitment to workplace equity through more integrated, thoughtful approaches.

IADS Notes:

The retail industry's response to DEI challenges has evolved significantly since late 2024. In November 2024, Walmart pioneered a strategic shift by maintaining inclusion practices while removing explicit DEI language, achieving strong market performance. This contrasts with Target's experience in February 2025, which saw a USD 10 billion valuation loss and 9% drop in store traffic following DEI controversies. The emergence of the FAIR framework in January 2025 offers retailers a new way to balance inclusive practices with business performance, as evidenced by Victoria's Secret's recent rebranding to "inclusion and belonging.

The future of work: what went wrong with DEI and how to move forward?

What: RMS, an agency specializing in consulting, training, and recruitment in the retail, luxury, fashion, and hospitality sectors, has been measuring the satisfaction of its retail teams every two years for 15 years using its tool, the RMS Social Retail Barometer.

Why it is important: This study highlights the need to build team loyalty through levers other than compensation, such as proximity to management, career prospects within the company, or simply recognition of their commitment and flexibility.

RMS publishes the 2024 edition of the Social Retail Barometer 

What: Vietnam's retail market is set to reach USD 350 billion in 2025, driven by a young demographic, expanding middle class, and significant infrastructure development across traditional and digital retail channels.

Why it is important: Vietnam's retail evolution demonstrates the increasing importance of Southeast Asian markets in global retail strategy, particularly as young populations and rising middle classes drive demand for modern retail experiences.

Vietnam's retail sector is experiencing remarkable growth, with retail sales increasing by 9.3% year-on-year in Q4 2023. The country's demographic advantage, featuring a median age of 32 and a population of nearly 100 million, is driving this expansion. Shopping malls dominate the retail landscape, accounting for 63% of total retail space supply, with significant developments underway including Aeon Xuan Thuy and Thiso Mall Hanoi. Major global brands such as Flying Tiger Copenhagen, Genki Sushi, Franck Muller, and Victoria's Secret are either entering or expanding their presence in the market. The luxury retail segment is gaining momentum in key shopping districts of Hanoi and Ho Chi Minh City, with brands opting for standalone flagship stores to create immersive experiences. Additionally, Vietnam's digital economy is among Southeast Asia's fastest-growing, with e-commerce platforms like Shopee, Lazada, and Tiki expanding their operations. However, the sector faces challenges including legal complexities, workforce shortages, and the need for improved recruitment and retention strategies.

IADS Notes: Vietnam's retail landscape is undergoing a significant transformation, as evidenced by recent market developments. In November 2024, MM Mega Market's USD 20 million investment in Danang demonstrated international retailers' confidence in the market's potential. This move aligns with broader regional trends identified in January 2025, showing Vietnam's emergence as a key player in Asian retail growth. The market's attractiveness is further highlighted by February 2025's expansion of Korean retail giants Lotte and Shinsegae, who are implementing multi-format strategies to capture market share. However, the sector faces regulatory challenges, as shown by December 2024's suspension of Temu and Shein operations, indicating Vietnam's careful balance between digital trade growth and local market protection. Despite these challenges, retailers like Central Retail continue to adapt their strategies, focusing on tourism-centric locations and innovative retail concepts, reflecting the market's evolution toward a more sophisticated retail ecosystem.

What retailers need to know about Vietnam’s potential and challenges for 2025