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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

What: China's luxury market faces an 18-20% decline in 2024 as flat sales become the 'new normal,' signaling the end of exponential growth.

Why it is important: The shift to flat sales in China reflects deeper changes in consumer behavior and market maturity, challenging luxury brands to adapt their strategies while maintaining their appeal to top-tier consumers who drive 45% of sales. 

China's luxury market is experiencing a significant transformation, with Bain and Company reporting an 18-20% decline in 2024. This downturn marks the conclusion of a period of exceptional growth, with expectations of flat sales for the upcoming year. Consumer confidence remains persistently low, influenced by ongoing property market challenges and employment security concerns. The impact is particularly evident in travel retail, with Hainan's duty-free paradise experiencing a 29% decrease in sales as shoppers gravitate toward alternative tax-free destinations and e-commerce platforms like Tmall and Douyin. While the overall market shows weakness, top-level luxury consumers continue to dominate, accounting for 45% of sales with expectations of increased influence. Despite the challenging environment, some positive indicators emerged in the final quarter of 2024 following government stimulus measures. The market's long-term potential remains significant, particularly given the relatively low penetration of luxury goods throughout much of China's population. (Word count: 152)

IADS Notes: The stark 18-20% decline in China's luxury market reported in January 2025 aligns with broader market transformations observed throughout 2024. In June 2024, research revealed a growing "luxury fatigue" among Chinese consumers, who increasingly favor discreet luxury experiences over conspicuous consumption. This shift in consumer behavior has particularly impacted travel retail, with Hainan's duty-free sales dropping 29% as shoppers explore alternative destinations. The trend is further evidenced by September 2024 data showing Japanese luxury retail benefiting from Chinese tourists seeking better value through favorable exchange rates. Despite these challenges, PwC's forecast in September 2024 suggests long-term potential, projecting China could become the world's largest luxury market by 2030, reaching USD 148 billion. This evolution reflects a fundamental restructuring of the luxury landscape, where top-tier consumers, who currently account for 45% of sales, are expected to play an increasingly vital role in shaping market dynamics.

Flat sales in China’s luxury market are the ‘new normal’

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: Slow pop-ups are replacing traditional stores in China as retailers shift towards longer-term experiential spaces that prioritise customer engagement over immediate sales.

Why it is important: This evolution signals a fundamental shift in retail strategy, where successful brands must balance operational costs with the growing demand for immersive experiences, reflecting broader changes in Chinese consumer behavior.

China's retail landscape is undergoing a significant transformation with the rise of "slow pop-ups," a concept that has surpassed traditional pop-up stores in strategic importance. While pop-up stores were initially complementary to physical retail, these new formats are now becoming primary retail channels. This shift is driven by economic rationalisation, with brands like FREY TAILORED demonstrating how location flexibility can optimise costs and traffic. The trend is particularly evident in luxury retail, where brands such as Schiaparelli and Burberry are using these spaces as laboratories for testing and refining their market approaches.

These slow pop-ups, lasting from two months to a year, offer brands access to prestigious locations while allowing them to develop local communities and refine their merchandising strategies. The movement aligns perfectly with Gen Z's evolving values, as evidenced by the 180% growth in "slow life" related content on Little Red Book between 2023 and 2024. This transformation represents a strategic response to changing consumer preferences, where emotional connection and deep interaction take precedence over immediate sales conversion.

IADS Notes: Pop-up retail evolution in China reflects wider market changes seen in 2024. In January, Coresight Research identified pop-ups as a key trend, followed by DFS and Douyin's "phygital" model launch in March. By April, Savills reported major Chinese cities allocating 16% of retail space to entertainment, while department stores transformed into lifestyle centres. August saw SKP implementing new engagement strategies, as Gen Z's USD 360 billion spending power shaped retail development . The year ended with 'chaotic customisation' becoming prominent and 95% of Chinese travellers integrating shopping into their journeys. The trend has evolved into "third spaces" in early 2025, validating Chinese luxury spending projections of USD 88 billion by 2028.

China turns "slow pop-ups" into new retail laboratories

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: MDRi's China Luxury Consumer Forecast 2025 reveals five transformative trends reshaping China's luxury sector, highlighting a shift towards experiential luxury, sustainability, and digital integration across emerging urban markets.

Why it is important: This comprehensive analysis provides crucial insights into China's evolving luxury landscape, where the convergence of experiential retail, sustainability concerns, and technological integration is reshaping consumer behavior and market dynamics across different city tiers.

China's luxury market continues to evolve with significant shifts in consumer behavior and preferences. According to Bain & Company, the sector is expected to maintain mid-single-digit growth in 2024, following a robust 12% year-on-year growth in 2023. The forecast reveals that 56% of surveyed consumers plan to increase their luxury spending, with Tier 2 and 3 cities emerging as key growth drivers. The research identifies five major trends: the rise of experiential luxury, with 68% of consumers increasing wellness-related spending; Sanya's emergence as a strong competitor to Shanghai in luxury retail; growing national pride driving domestic brand preferences; sustainability becoming a cornerstone with 85% of consumers prioritising it; and the integration of technology, where 90% of consumers value AI-driven personalisation. These trends reflect a broader transformation in luxury consumption, particularly among younger generations, with Gen Z focusing on wellness and self-care while Millennials seek indulgent experiences. The market's evolution demands innovative responses from brands, balancing traditional luxury values with emerging consumer priorities in technology and sustainability.

IADS Notes: Recent market developments support MDRi's forecast findings. In April 2024, Savills reported major Chinese cities allocating 16% of retail space to entertainment zones , while March 2024 saw the second-hand luxury market reach USD 8 billion . The transformation of consumer behavior is evident in November 2024 data showing 95% of Chinese travelers integrating shopping into their journeys . PwC's September 2024 forecast suggests China could become the world's largest luxury market by 2030, reaching USD 148 billion .

This evolution is further demonstrated by Coresight's January 2024 identification of "meaningful consumption" as a key trend , with consumers increasingly seeking purposeful purchases and sustainable practices. The market's digital transformation is particularly noteworthy, with December 2024 data showing 230 million users engaging with retail AI applications , indicating a significant shift towards technology-enhanced luxury experiences.

Navigating change: Insights into China’s luxury market trends for 2025

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

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

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

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

What comes after DEI

What: Stablecoins are poised to revolutionise retail payments by offering near-zero transaction fees and eliminating traditional payment gatekeepers.

Why it is important: As retailers face significant payment processing fees, evidenced by the recent USD 30 billion Visa-Mastercard settlement , stablecoins offer a transformative solution that could dramatically improve profit margins while enhancing payment accessibility.

The current payment landscape is dominated by intermediaries who extract substantial fees from every transaction, significantly impacting business profitability. Stablecoins emerge as a compelling alternative, offering near-zero transaction costs and enhanced accessibility without sacrificing reliability or convenience. With 28.5 million unique users conducting over 600 million stablecoin transactions in recent months, the technology has already demonstrated its viability as a payment solution.The impact could be particularly significant for businesses with thin margins. Major retailers like Walmart could potentially increase profitability by 60% through reduced payment fees, while restaurants and grocery stores could see even more dramatic improvements to their bottom lines. The adoption of stablecoins is expected to begin with businesses most affected by current payment costs, gradually expanding as the technology matures and infrastructure improves.As stablecoins gain traction, their programmable nature and permissionless composability will enable new payment experiences and business models, fostering innovation in the retail sector. This transformation, while gradual, is likely to accelerate as more businesses recognise the potential for improved profitability and operational efficiency.

IADS Notes: Recent developments in retail payment systems strongly support the potential for stablecoin adoption. In March 2024, Visa and Mastercard's USD 30 billion settlement over swipe fees  highlighted the industry's need for cost-effective payment solutions. This was further emphasised when Printemps became Europe's first department store to accept cryptocurrencies in November 2024 , demonstrating traditional retail's openness to digital currency innovation. The retail payment landscape has evolved significantly, with mobile payments reaching 70% of global sales by January 2025 , while cross-border transactions during the 2024 Black Friday weekend alone totaled USD 3.2 billion . These developments, coupled with successful implementations of digital currencies like Hong Kong's e-CNY integration , suggest that the retail industry is primed for stablecoin adoption. The trend towards lower transaction fees and improved payment accessibility aligns with the article's vision of stablecoins as a transformative force in retail payments.

How stablecoins will eat payments, and what happens next

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

What: The convergence of AI agents and next-generation hardware is creating a new era of personalised retail experiences that simultaneously improves customer satisfaction and operational efficiency.

Why it is important: With 73% of consumers feeling overwhelmed by online shopping choices and retailers losing 4.5% of gross sales due to inefficiencies , this technological transformation addresses both customer experience challenges and operational bottlenecks in one unified solution.

The retail industry stands at the threshold of a transformative era where AI-powered agents and innovative hardware are converging to revolutionise customer experience. This technological fusion enables brands to deliver superior service while significantly reducing operational costs, with productivity improvements ranging from 15% to 30% in customer service operations. The integration of autonomous agents transforms traditional customer journeys into comprehensive "missions," where AI systems work seamlessly in the background to complete complex tasks with minimal human intervention. Leading companies like Amazon and Klarna demonstrate the tangible benefits of this approach, with Klarna's AI assistant managing workloads equivalent to 700 full-time agents while reducing customer resolution times from 11 to 2 minutes.

The evolution extends beyond screen-based interactions to include ambient interfaces like voice commands and augmented reality, making technology more intuitive and accessible in customers' daily lives. For executives, the path forward requires a pragmatic approach: starting with focused initiatives, building for both journeys and missions, and fostering a culture of convergence between teams, functions, and skills. This strategic implementation ensures organisations can fully capitalise on the technology's potential while maintaining operational excellence.

IADS Notes: Recent retail industry developments strongly validate the article's vision of AI-powered customer experience transformation. As observed in November 2024, consumer adoption of AI shopping tools has been remarkable, with 38% of shoppers actively using GenAI during major sales events . This adoption addresses a critical pain point, as 73% of consumers reported feeling overwhelmed by online shopping choices .

The operational impact has been equally significant, exemplified by Walmart's processing of 850 million product catalogue data points and Intime's 15% boost in counter sales through AI implementation . While 70% of retailers are planning AI implementation in 2024 , the challenge lies in effective scaling, with only 10% of companies successfully expanding their GenAI applications . However, the potential rewards are compelling – 87% of companies adopting AI reported revenue increases of 6% or more , demonstrating how AI can simultaneously enhance customer experience and operational efficiency.

How AI agents are opening the golden era of customer experience

What: Saks Global's USD 2.7 billion merger consolidates Neiman Marcus, Bergdorf Goodman, and Saks Fifth Avenue under unified leadership, triggering significant organizational changes and potential cultural challenges.

Why it is important: The transformation marks a critical turning point for department stores, as the industry grapples with preserving heritage brands while adapting to modern retail demands through consolidation and digital integration.

The landmark merger creating Saks Global brings together three iconic retailers under the leadership of Marc Metrick, who will oversee a combined portfolio of 78 flagship stores and a significant off-price retail presence. This USD 2.7 billion deal, backed by technology giants Amazon and Salesforce, aims to transform luxury retail operations while managing the delicate balance of maintaining distinct brand identities. The merger faces notable challenges, particularly regarding Neiman Marcus's Dallas headquarters and its 10,000 employees, as cultural integration becomes a crucial concern.

The deal's success hinges on preserving the unique customer relationships that have defined these luxury retailers whilst implementing technological innovations. Richard Baker's ambitious vision for Saks Global includes leveraging a USD 7 billion real estate portfolio and combining data resources to enhance customer experience, though questions remain about maintaining brand distinctiveness and vendor relationships in this new retail landscape.

IADS Notes: The completion of the Saks-Neiman Marcus merger in December 2024 represents a pivotal transformation in luxury retail. The deal's significance was first highlighted in March 2024 when Saks' flagship received a USD 3.6 billion valuation, underlining the real estate portfolio's crucial role in the merger's financing. By July 2024, the merger's impact on corporate culture became evident through significant organizational changes, particularly affecting Neiman Marcus's successful relationship-driven business model.

The merger's approval in August 2024 reshaped the competitive landscape, while December's radical restructuring demonstrated Saks Global's commitment to technological integration while attempting to preserve distinct brand identities. This evolution mirrors the challenges outlined in the current situation, particularly regarding cultural integration and the potential impact on Neiman Marcus's traditional operations and Dallas presence.

What Happens To Neiman Marcus After The Saks Merger?

What: Tech companies and retailers are developing AI "agents" capable of performing complex shopping tasks autonomously, with companies like Perplexity, Amazon, and OpenAI leading innovations in personalised shopping assistance and product discovery.

Why it is important: This innovation signals a fundamental change in online retail, where AI agents could transform the traditional search-and-browse model into a more efficient, personalised shopping experience, though success in categories like fashion and beauty remains uncertain.

AI shopping agents represent the next breakthrough in retail technology, offering capabilities beyond simple product recommendations. Perplexity's recent launch demonstrates these agents' ability to provide curated selections with detailed product information and, in some cases, complete purchases directly. Companies like Amazon are exploring agents that can suggest products and add them to shopping carts, while AWS aims to provide agent services to brands and retailers. Industry leaders, including Sam Altman and Vince Koh, envision agents that can understand style preferences through visual data and create seamless shopping experiences. While these agents show promise for commodity items, questions remain about their effectiveness in fashion and beauty, where emotional factors and brand perception play crucial roles in purchasing decisions.

IADS Notes: The emergence of AI shopping agents marks a significant shift in retail technology. While Perplexity's AI shopping assistant demonstrates early potential, broader industry adoption through partnerships like Amazon's AWS initiatives signals growing momentum. However, as highlighted in consumer behavior studies, the success of these tools in fashion and luxury retail depends on their ability to understand emotional and personal preferences beyond basic product matching.

AI agents to reshape finding and buying products online

What: AI agents are revolutionizing retail through autonomous operations while presenting significant implementation challenges and risks.

Why it is important: With retailers losing 4.5% of gross sales due to inefficiencies and 73% of consumers feeling overwhelmed by online shopping choices, AI agents offer a dual solution for operational excellence and customer satisfaction.

AI agents are fundamentally transforming the retail industry, marking a significant evolution in how businesses operate and serve customers. Recent data shows that 87% of companies implementing AI have experienced revenue increases of 6% or more, while operational efficiency has improved by 15-30% in customer service operations. This transformation is particularly timely, as 73% of consumers report feeling overwhelmed by online shopping choices, and retailers continue to lose 4.5% of gross sales due to operational inefficiencies. The technology's impact is evident in success stories like Klarna's AI assistant, which has reduced customer resolution times from 11 to 2 minutes, and Intime Department Store's 15% boost in counter sales through AI implementation. However, the transition presents significant challenges: while 70% of retailers plan to implement AI agents, only 10% successfully scale their applications, highlighting the complexity of effective deployment. Risk management remains crucial, with 76% of executives acknowledging the need for improved AI cybersecurity measures. As the global generative AI market reaches USD 79.8 billion, retailers must balance autonomous capabilities with robust security frameworks and unbiased training data to ensure sustainable growth.

IADS Notes: As observed in January 2025, the retail industry stands at a critical juncture in AI agent adoption. While consumer acceptance has grown significantly, with 38% of shoppers actively using GenAI during major sales events, implementation challenges persist. The technology's potential is demonstrated by companies achieving 15-30% productivity improvements, yet only 10% successfully scale their applications. This gap between potential and achievement underscores the importance of strategic implementation and risk management, particularly as the global generative AI market expands to USD 79.8 billion.

AI agents are here. What now?

What: A flourishing shadow supply chain of personal shoppers and cross-border traders enables wealthy Russians to continue purchasing luxury goods above EUR 300 sanctions threshold.

Why it is important: This shadow supply chain exposes significant vulnerabilities in luxury retail sanctions enforcement, while highlighting how grey market networks are becoming increasingly sophisticated global distribution channels.

Wealthy Russians are successfully circumventing trade restrictions on luxury goods through an elaborate network of personal shoppers and resellers operating via social media platforms. Despite EU sanctions limiting legal sales to items under EUR 300, Russians continue to access the latest Western collections through a flourishing shadow supply chain. Instagram and Telegram have become hubs for resellers promising to source high-end items from Europe and the UAE, with some personal shoppers earning up to EUR 6,000 weekly in commissions. Customs records reveal the scale of this trade, exemplified by a September shipment of over 300 Bottega Veneta bags averaging USD 1,800 each, routed through Dubai.

Some brands have adapted by adjusting their pricing strategies to meet sanctions thresholds, while others maintain their presence through third-party channels. The impact is particularly notable on middle-class shoppers, who face increased prices and limited access, while wealthy consumers continue their luxury purchases through these alternative channels.

IADS Notes: The emergence of Russia's personal shopping networks mirrors broader shifts in global luxury retail distribution throughout 2024. As noted in September 2024, China's grey market has become a dominant force in luxury sales, demonstrating how trade restrictions often lead to alternative distribution channels. This pattern is further evidenced by March 2024 data showing Japan's record-breaking duty-free sales, as consumers seek new markets for luxury purchases. The Russian case study particularly resonates with June 2024 findings showing how economic pressures and restrictions reshape consumer behavior.

These parallel developments suggest a global trend where luxury retail adapts to restrictions through sophisticated networks of personal shoppers, resellers, and cross-border trade, effectively maintaining product flow despite regulatory challenges. This evolution highlights the resilience and adaptability of luxury retail distribution systems, even as traditional channels face disruption.

Russians turn to ‘personal shoppers’ to smuggle luxury bags

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

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

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

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

Amazon Stores CEO says AI may spawn new retail formats

What: Organisations must shift focus from traditional security solutions to protecting employee data privacy as spear phishing tactics evolve, with 90% of successful cyberattacks beginning through phishing.

Why it is important: As cybercriminals increasingly exploit employee data from data brokers and breached databases, protecting workforce information has become crucial for preventing sophisticated attacks, particularly as recent cases like Neiman Marcus demonstrate the devastating impact of data breaches on retail operations.

The escalating sophistication of spear phishing attacks has created an urgent need for organisations to reassess their cybersecurity strategies. While 50% of organisations worldwide fell victim to such attacks in 2023, traditional security measures like antimalware and email filtering are proving insufficient against highly targeted approaches. The core challenge lies in the vast availability of sensitive employee data through the $252.12 billion data broker industry, where individual profiles can contain up to 3,000 data points. This wealth of information enables criminals to craft incredibly convincing phishing attempts, exploiting human psychology through emotional triggers and apparent authenticity. The consequences are severe, as demonstrated by cases like Leoni AG's €40 million loss from an impersonation scam. Organisations must now prioritise employee data privacy as a preventative measure, implementing comprehensive strategies that include social media education, privacy tools, and data removal services to reduce their digital footprint and vulnerability to such attacks.

IADS Notes: Recent incidents in the retail sector underscore the critical importance of employee data protection in preventing cyber attacks. The June 2024 Neiman Marcus breach  demonstrates how sophisticated cyber criminals can exploit data vulnerabilities, resulting in significant financial and reputational damage. This aligns with broader industry trends, as highlighted by the January 2025 discovery of advanced card skimming malware , which showed how attackers are becoming increasingly sophisticated in their approach to compromising retail systems. Consumer awareness of data privacy has also reached a critical point, with November 2024 research revealing that 75% of customers now base their purchasing decisions on how companies handle personal data . The retail sector's vulnerability is further complicated by the November 2024 revelation about Microsoft Office's automatic data collection practices , which creates additional challenges for protecting sensitive employee and business information. These developments, coupled with El Palacio de Hierro's August 2024 system failure , illustrate why organisations must prioritise both employee and system data protection as part of their comprehensive security strategy.

Why organisations should prioritise employee data protection to combat spear phishing

What: New research reveals trust-building through reliability, capability, transparency, and humanity as key drivers of successful workplace AI adoption.

Why it is important: With retailers achieving 60% higher user satisfaction through properly supervised AI systems, this methodology addresses the critical gap between technological capability and workforce acceptance.

Deloitte's innovative approach to AI implementation reveals how trust-building initiatives can dramatically improve workplace technology adoption. Through a pilot programme involving 750 consultants, the company demonstrated that addressing four key trust factors—reliability, capability, transparency, and humanity—led to significant improvements in AI tool acceptance and usage. The initiative resulted in a 49% increase in perceptions of tool reliability and a 52% rise in transparency understanding, ultimately driving a 65% increase in average user visits. The research highlights that successful AI integration requires more than just technological capability; it demands a comprehensive strategy addressing employee concerns and skepticism. Through targeted interventions, including savvy user profiles, interactive Q&A sessions, and practical workshops, organisations can effectively build trust and drive adoption. The study particularly emphasises the importance of clear communication about data protection and output quality, addressing two primary concerns that often hinder AI acceptance. These findings prove especially relevant as organisations struggle with low daily AI usage rates, with only 11% reporting successful integration into employee routines. The research demonstrates that trust-building initiatives can bridge the gap between AI potential and practical implementation.

IADS Notes: The Deloitte study's findings on trust-building in AI implementation come at a crucial time for the retail industry. As revealed in January 2024, only 20% of executives felt prepared to address AI skills needs, highlighting the significance of the trust-focused approach. The success of this methodology is exemplified by IKEA's comprehensive AI literacy programme launched in April 2024, which trained 3,000 workers and 500 leaders, demonstrating how structured educational initiatives can drive adoption. This approach gains further validation from Bain & Company's July 2024 report, which found that whilst 87% of companies are deploying AI projects, only 36% have developed a clear implementation vision. The impact of trust-based implementation became evident by November 2024, when retailers with properly supervised AI systems achieved 30% faster development and 60% higher user satisfaction rates, reinforcing Deloitte's emphasis on the connection between employee trust and ROI.

If you want your team to use gen AI, focus on trust

What: One-third of global companies plan significant AI investments in 2025, with retail leading adoption despite only 25% currently reporting meaningful value.

Why it is important: The contrast between high investment plans and low current value realisation highlights a critical implementation gap that industry leaders must address to remain competitive.

BCG's latest AI Radar survey reveals a significant commitment to artificial intelligence investment, with one in three companies planning to allocate over USD 25 million to AI initiatives in 2025. This substantial investment comes at a crucial time when 75% of executives rank AI as a top strategic priority, yet only a quarter report meaningful value from their current AI initiatives. Leading companies are distinguishing themselves by focusing their AI investments on core functions and new offerings, allocating more than 80% of their resources to these areas. These leaders are also taking a more focused approach, prioritising an average of 3.5 use cases compared to 6.1 for other companies, resulting in 2.1 times greater anticipated ROI.

The survey notably challenges common workforce concerns, with 68% of executives expecting to maintain current staffing levels while focusing on productivity enhancement and upskilling. The implementation of autonomous agents is gaining particular attention, with 67% of executives considering these AI systems as part of their transformation strategy. However, significant challenges remain, including data privacy, security concerns, and the need for improved AI cybersecurity measures, with 76% of executives acknowledging room for improvement in this area.

IADS Notes: BCG's latest findings about AI investment plans align with significant developments observed in the retail sector. As reported in mid-2024, the industry emerged as a leader in AI deployment, with nearly half of retailers seeing increased revenue from their initiatives . Consumer adoption has followed, with a dramatic 304% increase in AI-tool-directed traffic . The focus on autonomous agents gained momentum when Walmart demonstrated impact by processing 850 million product data points .

However, late-2024 research revealing that retailers still lose 4.5% of gross sales due to inefficiencies explains the drive for substantial AI investments. The optimistic workforce outlook is particularly significant, suggesting AI is transforming rather than replacing jobs, focusing on enhanced productivity while maintaining employment levels.

From potential to profit: closing the AI impact gap

AI radar 2025

What: A Harvard Business Review discussion explores how mid-level managers can effectively implement corporate strategy, emphasising their unique position to demonstrate business acumen, mobilise teams, and ensure successful execution through proactive engagement and clear communication of strategic goals.

Why it is important: As organisations face complex transformational challenges, mid-level managers' capacity to understand, translate, and execute strategy while maintaining team engagement becomes essential for successful implementation.

The discussion emphasises that mid-level managers should avoid immediately "hitting the ground running" after strategy announcements, instead taking time to thoroughly understand the strategy's motivations and objectives. Strategy execution presents both challenges and opportunities, particularly in addressing team skepticism and resistance to change. The key to success lies in proactive communication, including regular team meetings with transparent discussions about progress and obstacles. When strategy isn't working, managers must balance accountability with problem-solving, focusing on early identification of issues and proposing solutions. The approach to communicating success is equally important, requiring managers to frame achievements in the context of broader organisational goals rather than individual accomplishments. This balanced approach helps maintain team motivation while ensuring alignment with strategic objectives.

IADS Notes:

The evolving role of middle managers in strategy execution reflects broader retail transformation trends. As department stores implement major changes, mid-level leaders must balance corporate vision with ground-level realities. Recent examples show how successful transformations depend on managers' ability to translate high-level strategy into actionable plans while maintaining team engagement. The challenges of executing strategy amid resistance highlight the critical role of middle managers in bridging corporate goals with operational realities.

A middle manager’s guide to executing strategy - Transcript

What: Italist expands its luxury e-commerce presence globally with plans for physical stores, leveraging its unique Italian pricing model that offers up to 40% savings on designer brands.

Why it is important: This expansion demonstrates how alternative pricing models and transparent operations can create sustainable growth in luxury e-commerce, even as major competitors face consolidation and market challenges.

Italist continues to expand its global presence in the luxury e-commerce sector, distinguishing itself through a unique business model that offers international customers access to Italian retail prices. The platform, which partners with over 2,000 designer brands, provides savings of up to 40% compared to other markets by leveraging Italy's lower operational costs and direct relationships with multi-brand retailers. The company's growth strategy now includes plans for physical retail presence in key markets, with potential locations in New York, Texas, Miami, and the Middle East. Italist's approach to market expansion is notably cautious in China, where regulatory challenges persist despite the market's significant potential. The platform's commitment to transparency extends to its handling of customs duties and returns, with CEO Diego Abba emphasising the importance of clear communication about costs and policies. This strategy has proven successful in building customer trust and maintaining growth, even as the overall luxury market experiences a slowdown.

IADS Notes: In January 2025, Italist's expansion plans emerge amid significant reshaping of the luxury e-commerce landscape. As noted in December 2024, while major players like Mytheresa acquired YNAP to create an EUR 4 billion revenue business, Italist's unique pricing model offering Italian retail prices globally presents a distinctive approach. The company's strategy aligns with trends identified in June 2024, where successful luxury e-tailers focus on specific consumer segments and avoid competing solely on price. Their planned physical expansion mirrors the industry shift observed in October 2024, where retailers like 10 Corso Como demonstrate how concept stores can successfully scale internationally while maintaining their identity. Italist's transparent approach to customs and duties, particularly noteworthy as other platforms struggle with profitability, reflects the evolving nature of luxury e-commerce noted in March 2024, where operational efficiency and clear value propositions have become crucial for success.

Italist continues to grow in the luxury e-commerce marketplace

What: Major Korean retailers revise loyalty programs with increased spending requirements and reduced benefits, sparking debate about customer retention strategies.

Why it is important: The changes reflect broader industry challenges in balancing exclusive customer benefits with sustainable business practices, while risking customer relationships in an increasingly competitive market.

Korean department stores are implementing significant changes to their VIP programs, with major retailers raising qualification thresholds while reducing benefits. Hyundai Department Store has decreased its luxury mileage brand coverage from 80 to 12 brands and reduced complementary services like café privileges. Shinsegae has established new VIP tiers, raising the diamond rating from 60 million to 70 million won and introducing a "Black Diamond" tier at 120 million won. Lotte Department Store has similarly restructured its system, reducing VIP tiers from 7 to 5 while increasing spending requirements. These changes have sparked customer dissatisfaction and led to the emergence of unofficial performance trading practices, where customers attempt to maintain VIP status through alternative means.

IADS Notes: The changes in Korean department store VIP programs reflect broader industry transformations. While August 2024 data shows department stores enhancing VIP experiences for high-spending customers, December 2024 research reveals growing challenges in meeting evolving customer expectations for loyalty programs. This tension is driving new approaches, as demonstrated by Hyundai's September 2024 partnership with Hankyu to enhance cross-border VIP benefits. The strategy aligns with August 2024 findings showing how Japanese and Korean department stores are transforming their customer engagement approaches. However, January 2025 data indicating increasing market polarisation in Korea suggests these program changes may further intensify the divide between customer segments. These developments show how retailers are struggling to balance exclusive benefits with customer satisfaction in an increasingly competitive market.

It is increasingly difficult to be identified as a VIC in Korean department stores

What: The luxury industry enters a period of strategic recalibration in 2025, with BoF and McKinsey identifying five key imperatives for executives amid slowing growth and changing market dynamics, following a period of exceptional value creation.

Why it is important: The transformation reflects fundamental changes in consumer behaviour and market dynamics, requiring luxury brands to reimagine their approach to exclusivity, creativity, and customer relationships.

Following exceptional growth between 2019 and 2023, the luxury industry faces its first value creation decline since 2016. Growth engines have stalled, particularly in China, while client relationships become increasingly complex across age demographics. The sector's rapid expansion has led to overexposure and weakened its core promise of exclusivity and craftsmanship. With projected growth of 2-4% annually through 2027, industry leaders must focus on five strategic imperatives: conducting a strategic reset, restoring product excellence, rethinking customer engagement, bridging talent capability gaps, and futureproofing portfolios. Success will require balancing long-term investments with immediate market challenges, as brands navigate changing consumer preferences and the growing importance of experiences over products.

IADS Notes: The luxury industry faces a significant transformation in 2025. While Bain & Company projects 2-4% annual growth through 2027, the sector is grappling with changing consumer preferences and macroeconomic headwinds, particularly in China. The industry's self-inflicted challenges, including overexposure and weakened value propositions, necessitate a strategic reset focusing on product excellence, customer engagement, and talent development.

BoF’s State of Fashion on luxury

Check out the full report here

What: Payment terminals evolve into multifunctional tools combining AI-driven personalisation, enhanced security, and omnichannel capabilities to meet evolving consumer demands.

Why it is important: This evolution addresses growing consumer demands for seamless, secure, and personalised payment experiences across all retail channels. The payment landscape is undergoing a significant transformation as terminals evolve beyond basic transaction processing.

Contactless and mobile payments are becoming increasingly dominant, with digital wallets and NFC technology driving this shift. The integration of artificial intelligence enables sophisticated personalisation, allowing merchants to offer tailored payment options and gain real-time insights into customer behaviour. Alternative payment methods, including Buy Now, Pay Later (BNPL) and cryptocurrencies, are gaining traction, particularly among younger consumers.

Enhanced security measures, including biometric authentication and AI-powered fraud prevention, are being implemented to protect against increasingly sophisticated threats. The push towards seamless omnichannel payments reflects consumers' expectations for a unified experience across physical and online retail environments, with features such as QR codes and click-and-collect integration becoming standard. This comprehensive evolution positions payment terminals as crucial tools for both transaction processing and customer experience enhancement.

IADS Notes: Recent data from December 2024 shows that mobile payments now account for 70% of global sales, up from 67% in 2023. The impact of AI in retail has been substantial, with 38% of consumers utilizing AI tools for shopping assistance by late autumn. The adoption of alternative payment methods has accelerated, as evidenced by Klarna's expansion into physical retail in the third quarter. Security concerns remain paramount, with Stripe processing USD 31 billion during the holiday season while successfully blocking 20.9 million fraudulent transactions worth USD 917 million. These developments confirm the article's predictions about the future of payment technologies and their impact on retail operations.

Smart, secure, seamless: Payment methods 2025