What: H&M’s sustainability report outlines its decarbonisation roadmap and addresses the challenges of reducing emissions across its global supply chain.

Why it is important: H&M’s approach exemplifies how leading retailers are responding to investor and regulatory demands for measurable, transparent sustainability outcomes.

H&M’s latest sustainability report provides a comprehensive overview of its ongoing efforts to decarbonize its global supply chain, highlighting both achievements and persistent challenges. The company details its strategies for reducing emissions, including investments in renewable energy, supplier engagement, and operational changes aimed at lowering its carbon footprint. Despite progress, H&M acknowledges significant obstacles, such as the complexity of tracking emissions across diverse suppliers and the slow pace of industry-wide transformation. The report emphasises the importance of transparency, with H&M disclosing detailed data on its emissions and outlining clear targets for future reductions. This approach is designed to build trust with consumers, investors, and regulators, who are increasingly demanding credible, evidence-based sustainability commitments. By prioritising measurable outcomes and open reporting, H&M positions itself as a leader in retail sustainability, while also recognizing that achieving its ambitious goals will require continued innovation, collaboration, and adaptation to evolving regulatory and market pressures.

IADS Notes: H&M’s sustainability strategy reflects a wider industry transformation, as highlighted in January 2026 by Harvard Business Review, where investors are increasingly demanding transparent and measurable ESG outcomes from retailers. Despite a trend toward “greenhushing,” ESG Dive in January 2026 reported that regulatory scrutiny and consumer expectations for credible sustainability reporting remain high, compelling companies to intensify their efforts. The reputational risks of greenwashing were underscored in December 2025 by the Financial Times, which documented penalties imposed on major brands for misleading environmental claims. H&M’s operational focus on decarbonisation aligns with Ikea’s “real zero” climate strategy, as discussed in Inside Retail in July 2025, emphasising deep supply chain transformation over offsets. The ongoing challenge of scaling decarbonization and circularity across the industry, as noted in the Kearney/Fashion Network CFX 2025 report from July 2025, highlights the complexity and necessity of systematic, scalable action.

What H&M’s sustainability report says about its emissions

What: The rollback of DEI initiatives in retail, highlighted by Target's experience, reveals the reputational, financial, and talent risks of inconsistent values and policy reversals.

Why it is important: Companies that stand by their DEI commitments retain talent more effectively, build stronger loyalty, and avoid the reputational and financial setbacks that reversals trigger.

The retail sector now has a concrete case study in what inconsistent DEI values cost. Target's retreat from DEI, followed by a 9% drop in store traffic and a $10 billion loss in valuation, demonstrates how abrupt policy reversals can trigger consumer boycotts, investor agitation, and lasting reputational harm. These events undermined customer trust, drove recruitment difficulties, and damaged employee morale. In contrast, research shows that companies maintaining their DEI strategies see stronger talent retention, improved business performance, and greater customer loyalty. As the sector faces increased legal scrutiny and political pressure, integrating DEI into core business functions and leadership strategies is proving essential for retaining talent and maintaining consumer trust. Retailers that align internal practice with public values are the ones consumers and employees are choosing to stay with.

IADS Notes: Reuters (March 2026) and ESG Dive (April 2025) document Target's significant losses and investor pressure following DEI rollbacks, while Bloomberg (January 2026) and Forbes (December 2025) highlight the reputational volatility and consumer activism that followed. Catalyst and NYU School of Law (June 2025) link sustained DEI commitments to talent retention and business performance, and Harvard Business Review (February 2026) confirms the positive impact of integrating inclusion into core business functions. Reuters (January 2026) notes that rebranding or scaling back DEI does not eliminate the operational and financial risks of misaligned practices, reinforcing the need for consistent, credible engagement.

Does DEI still have a role to play in employer branding?

What: AI is fundamentally transforming retail, demanding dedicated strategies for visibility, customer engagement, and brand discovery.

Why it is important: The shift toward AI-centric retail models reflects a broader trend of brands adapting to maintain visibility and customer engagement in a rapidly evolving market.

Artificial intelligence is rapidly redefining the retail landscape, making traditional approaches to consumer engagement and brand visibility increasingly obsolete. As AI-driven platforms become the primary interface between shoppers and products, retailers are compelled to develop strategies that go beyond conventional digital or omnichannel models. The article emphasizes that AI visibility—how and where brands appear in AI-generated recommendations and search results—now determines consumer discovery and purchasing decisions. This shift challenges retailers to rethink marketing, merchandising, and even product development, as AI's influence extends across the entire customer journey. Early adopters who invest in dedicated AI strategies are gaining a significant competitive advantage, leveraging proprietary data and domain-specific models to enhance efficiency and personalise customer experiences. However, the transition is not without risks, as brands must navigate new forms of digital gatekeeping and the potential loss of direct customer relationships. Ultimately, the article argues that only those retailers who proactively adapt to AI's demands will thrive in the next era of retail.

IADS Notes: The article’s perspective is reinforced by recent industry sources. In February 2026, BCG reported that only retailers fully integrating AI into their operations and investing strategically are achieving sustained growth, while others risk obsolescence. Forbes coverage of NRF in January 2026 highlighted AI’s central role in operational agility and customer engagement, with a shift toward domain-specific models delivering measurable improvements. Retail Touchpoints in January 2026 noted the adoption of smarter, smaller AI models leveraging proprietary data to enhance efficiency and satisfaction. By November 2025, BCG observed that leading retailers were transforming consumer engagement and internal processes through rapid AI adoption, while the Financial Times in November 2025 warned that this evolution introduces new risks as AI platforms increasingly control brand visibility and customer access, forcing brands to adapt their digital strategies to remain relevant.

AI visibility demands its own retail strategy

What: Employees in retail are increasingly relying on AI for personal and emotional support, raising concerns about workplace culture and human connection.

Why it is important: This trend highlights the need for balanced AI integration, as recent reports show that over-reliance can undermine employee engagement and critical thinking.

The increasing reliance of retail employees on AI for personal and emotional support is reshaping the dynamics of workplace culture, raising significant concerns about the erosion of authentic human connection. As AI-driven tools become more embedded in daily operations, employees may experience cognitive fatigue and burnout, particularly when these technologies are introduced without adequate training or leadership involvement. This shift not only threatens the development of essential interpersonal skills but also risks diminishing critical thinking and innovation within teams. Over-automation, especially in entry-level roles, can undermine long-term business sustainability by weakening talent pipelines and reducing opportunities for meaningful human interaction. However, when AI is implemented thoughtfully, with a focus on human-centric practices and robust governance, it can enhance operational efficiency and employee engagement. Ultimately, the successful integration of AI in retail hinges on a cultural transformation that prioritises empathy, values, and the preservation of genuine human relationships alongside technological advancement.

IADS Notes: In March 2026, Harvard Business Review reported on the phenomenon of “brain fry,” linking cognitive fatigue and burnout in retail to unstructured AI adoption and insufficient leadership engagement. Another Harvard Business Review article from March 2026 warned that aggressive automation in entry-level retail roles undermines talent development and long-term sustainability. Inside Retail, in September 2025, described the dangers of “AI psychosis,” where over-reliance on AI erodes critical thinking and innovation. Conversely, Journal du Net in July 2025 highlighted that human-centric AI implementation, supported by comprehensive training and governance, can enhance both operational efficiency and employee engagement. The Retail Bulletin in May 2025 emphasised that successful AI integration depends on cultural transformation and employee values, reinforcing the need to preserve authentic human interaction in retail environments.

Employees are relying on AI for personal support. That’s risky.

What: Social shopping, voice commerce, responsible practices, immersive technology, and hyperlocal strategies: five trends now changing how brands attract and retain online customers.

Why it is important: Brands that move early on these trends are building advantages in acquisition, retention, and efficiency that are increasingly difficult for slower movers to close.

In 2026, five trends are shifting how brands compete for online customers. Social shopping is accelerating, with platforms like TikTok Shop and Roblox capturing Gen Z's attention through influencer-driven content and immersive, community-based experiences. The rise of conversational AI and voice commerce is lowering friction in online shopping, as consumers increasingly complete purchases within chat apps and brands like JD Sports enable one-click transactions. Sustainability has become a baseline expectation, with brands leveraging AI to optimise supply chains and demonstrate transparency, directly affecting brand preference among conscious consumers. Immersive technologies such as virtual try-on platforms are enhancing personalisation and reducing returns, as Debenhams' virtual try-on rollout demonstrates. Finally, hyperlocal marketing is enabling brands to tailor campaigns and product offerings to specific regions, exemplified by Breuninger's multisensory, locally relevant campaigns. Together, these trends are accelerating the gap between brands that move quickly and those that do not.

IADS Notes: The Robin Report (February 2026) and Fashion Network (February 2026) document the rise of TikTok Shop and Roblox as leading social commerce channels for Gen Z, while Forbes (February 2026) highlights TikTok Shop's influence on Amazon and broader e-commerce demand. Valtech (February 2026) and Fashion Network (January 2026) show the mainstreaming of conversational AI and agentic commerce, with brands like JD Sports enabling AI-driven, one-click transactions. Journal du Net (November 2025) shows that sustainability and transparency now directly affect brand preference, while Internet Retailing (May 2025) and Fashion United (March 2026) show how virtual try-on technology and hyperlocal campaigns are driving conversion and regional brand relevance.

5 e-commerce trends to watch to stay in the game

What: Data-driven loyalty, large-scale personalisation, strategic AI investment, and retail media integration: the four pillars now determining retail competitiveness.

Why it is important: This transformation reflects a move away from volume-based retail logic toward individual customer economics.

Modern retail is undergoing a profound transformation as retailers move beyond traditional loyalty programmes, embracing data-driven frameworks that connect customer data, insights, and personalised actions to foster authentic relationships and measurable sales growth. The DIAL approach, which integrates data, insight, action, and loyalty, is enabling retailers to achieve significant increases in like-for-like sales, even in highly competitive markets. Artificial intelligence now powers large-scale personalisation, allowing for real-time, individualised offers that anticipate customer needs based on contextual triggers and purchase cycles. Strategic AI investments are focused on customisation, data governance, privacy, ethics, and predictive analytics, with a clear shift from descriptive to predictive models that directly impact profitability and operational efficiency. Retail media networks are evolving into genuine profit centres by leveraging first-party data for precise targeting and measurable attribution, creating new revenue streams for both retailers and partner brands. The integration of loyalty, personalisation, AI, and retail media into coherent customer journeys is becoming essential for retailers seeking sustained competitive advantage.

IADS Notes: Inside Retail (April and May 2025) and Drapers (May 2025) highlighted how Selfridges and other luxury department stores are restructuring loyalty programmes around digital engagement and first-party analytics, while Saks Global's hyper-personalised homepage and Google's AI-powered shopping ads, covered by Press Release (October 2025) and Financial Times (January 2026), demonstrate the operational impact of AI-driven personalisation. The Robin Report (April 2026), The Wall Street Journal (December 2025), and Bain & Company (September 2025) emphasise the importance of robust data governance and strategic AI investment. The evolution of retail media into profit centres is documented by MBS (July 2025), Internet Retailing (December 2025), and Retail Detail (June 2025), while Journal du Net (November 2025 and January 2026) and Fashion Network (May 2025) show how integrated omnichannel strategies are replacing channel-by-channel approaches across retail.

The four pillars of modern retail success

What: Successful retailers maintain profitability in tough times through operational innovation, customer-centricity, and technology-driven efficiency.

Why it is important: The strategies highlighted reinforce the importance of customer engagement and supply chain agility, echoing key findings from the past year.

In the face of economic adversity, retailers that outperform their peers are those who embrace operational innovation, prioritise customer-centricity, and harness technology to drive efficiency. The article underscores how successful retailers adapt by refining their inventory management, optimising supply chains, and creating compelling in-store experiences that resonate with evolving consumer expectations. These organisations invest in data analytics and digital tools to make informed decisions, enabling them to respond swiftly to market changes and maintain profitability even when demand is unpredictable. By focusing on curated assortments, personalised service, and omnichannel integration, these retailers not only survive but often thrive, setting themselves apart from competitors who remain static. The narrative is reinforced by recent industry examples, where operational excellence, disciplined cost control, and a relentless focus on customer needs have proven essential for resilience. Ultimately, the article illustrates that agility, innovation, and a deep understanding of the customer are the cornerstones of retail success in challenging times.

IADS Notes: As reported by Maeil Business Newspaper in March 2026, small and medium-sized department stores are adapting to concentrated sales in top-performing locations by focusing on experiential retail and flexible merchandising. This strategic shift is echoed in the January 2026 Harvard Business Review, which highlights that operational excellence, resilience, and customer-centricity can drive value and profitability even in low-growth environments, with department stores thriving through curation, community engagement, and digital innovation. Forbes in March 2026 further illustrates the importance of adapting core retail principles, noting that curated assortments, personalised service, and omnichannel integration have enabled retailers like Von Maur to achieve sustained success. The October 2025 Zebra report demonstrates how intelligent operations and AI-driven workflow optimisation have led to measurable gains in profitability and revenue growth, although only a minority of retailers have effectively scaled these solutions. Finally, Journal du Net in January 2026 explores how retailers are leveraging technology, automation, and operational simplicity to balance cost control with the agility needed for growth, emphasising scalable, modular systems and real-time data integration.

How successful retailers prosper in tough times

What: AI agents present cybersecurity risks for retailers by acting in ways similar to malware, requiring new containment strategies.

Why it is important: The emergence of AI-driven vulnerabilities demands integrated security strategies and governance, reflecting trends seen in the past year’s retail cybersecurity incidents.

AI agents are increasingly being deployed across retail operations, automating everything from customer service to supply chain management. However, their autonomous nature and ability to act independently introduce risks that closely resemble those posed by malware. These agents can be manipulated or exploited, potentially leading to data breaches, operational disruptions, and exposure of sensitive customer information. As retailers accelerate AI adoption, the gap between innovation and security preparedness is widening, making the sector more vulnerable to sophisticated cyber threats. The article underscores the need for robust containment strategies, including real-time monitoring, governance frameworks, and comprehensive staff training, to mitigate these risks. Retailers must recognise that traditional security measures may be insufficient against the unique challenges posed by AI agents, and proactive investment in cybersecurity is essential to safeguard both operations and customer trust. The evolving threat landscape requires a holistic approach, integrating technical, regulatory, and human factors to ensure safe and effective AI deployment.

IADS Notes: The risks described in the article align with findings from March 2026 in RH-ISAC, which reported that rapid AI adoption in retail is outpacing security measures and increasing vulnerability to cyber threats. In January 2026, Bloomberg detailed a surge in AI-driven cyberattacks, prompting heightened regulatory scrutiny and risk reassessment among retailers. The Robin Report in August 2025 highlighted new attack surfaces created by AI systems, particularly through prompt manipulation, while The Retail Bulletin in August 2025 emphasised the need for resilience and integrated security strategies. Finally, IAPP in December 2025 discussed the necessity of robust governance and real-time monitoring to address the unique risks introduced by AI agents.

AI agents act a lot like malware. Here’s how to contain the risks.

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Galeries Lafayette’s first Indian flagship store opened in the Kalaghoda district in Mumbai, at the historic Turner Morrison and Voltas House buildings. Indian shoppers were already among the top international clients at Galeries Lafayette’s Paris Haussmann flagship, with India’s luxury market projected to reach USD 85 billion by 2030[1].

Income inequality in India is stark and ever-increasing, resulting in a nascent luxury segment while mass-market retailers are squeezed. Mumbai, home to over 450 billionaires and 142,000 millionaires[2], and the cultural and financial capital of the country, was the logical entry point for Galeries Lafayette.

Despite a later-than-planned opening due to the complexity of restoring heritage buildings, the Mumbai opening of Galeries Lafayette marks India’s first true luxury department store. It results from a seven-year ambition and partnership announced in November 2022 between Galeries Lafayette Group (Paris) and Aditya Birla Fashion and Retail Limited (ABFRL), the fashion arm of India's Aditya Birla Group conglomerate. The deal was structured as a 20-year exclusive franchise agreement, giving ABFRL the sole rights to operate Galeries Lafayette stores across India. Strategic advisory firm Pike Preston served as the deal's advisor on record. The next planned store opening is in Delhi in 2027.

Beyond being a commercial retail space, this opening represents an extension of French cultural diplomacy and is part of strategic and geopolitical cooperation between France and India. By integrating local architectural heritage and hosting joint Franco-Indian initiatives, Galeries Lafayette Mumbai serves as a symbol of deepening cultural ties between the two nations.

India’s luxury market and competitive context

The Indian luxury sector has entered a period of structurally accelerating growth with the personal luxury goods (fashion, accessories, watches, beauty) segment being valued at $10.6 billion[3]. Bain and Altagamma’s 2025 report highlighted a shift in luxury retail, in which the Middle East, Latin America, Southeast Asia, India, and Africa combined represent a market value of around €45 billion in 2025, matching Mainland China in scale.

The competitive narrative in India's luxury retail market has been framed as ‘Ambanis vs. Birlas’. Reliance Brands Limited (RBL), owned by the Ambani family, manages a portfolio of 90+ brands, including Balenciaga, Bottega Veneta, Versace, Jimmy Choo, Valentino, Tiffany & Co., Burberry, and Ferragamo. It absorbed Genesis Luxury, the original broker that brought Western luxury to India, and operates Jio World Plaza, the country's most advanced luxury mall, located in Mumbai. Its digital arm, AJIO Luxe, extends brand access nationally. In January 2025, RBL also secured the franchise for Saks Fifth Avenue in India.

Aditya Birla Group built its luxury presence through The Collective (India’s original multi-brand luxury store with 12 locations and 85 brands) and through equity stakes in Indian designers, including Sabyasachi, Tarun Tahiliani, and Shantnu & Nikhil. It now operates Galeries Lafayette Mumbai, India’s first multi-brand department store model with over 250 brands in a luxury South Mumbai heritage location and plans to open a location in Delhi by 2027.

Tata Group defines Indian luxury hospitality through Taj hotels and operates Tata CLiQ Luxury, India’s leading digital luxury marketplace.

Further to this, India faces a key structural constraint: a lack of luxury malls. India has precisely three genuine luxury malls: DLF Emporio (Delhi), DLF The Chanakya (Delhi), and Jio World Plaza (Mumbai). In March 2026, DLF’s head of luxury retail reported zero availability despite 15 top-tier brands ready to enter immediately. DLF Emporio’s planned expansion (doubling to 320,000 sq ft) will not be ready until the end of 2028. This bottleneck is a significant constraint on the speed at which the market can absorb demand — and it is one reason the Galeries Lafayette location strategy (a standalone heritage building rather than a mall) is particularly notable.

Architectural localisation and Franco-Indian programming

Galeries Lafayette’s Mumbai store is located in the heart of Kalaghoda, one of Mumbai's most culturally and architecturally significant districts, neighbouring flagships for Hermès, Christian Louboutin, and Sabyasachi. The store spans 90,000 sq ft (approximately 8,400–9,000 sqm) across five floors, plus a dedicated basement Beauty Hall. The ground floor is dedicated to leather goods and accessories, with luxury womenswear on the first floor, contemporary womenswear on the second, menswear and tailoring on the third, and streetwear and concept retail on the fourth. The rooftop terraces of both buildings are earmarked for future dining offerings.

Architecturally unique, the store spans two restored century-old heritage structures — the Turner Morrison Building (a colonial-era, arched neoclassical building originally built for a British trading company) and Voltas House (a mid-century modernist post-independence industrial building) — which have been physically interconnected through a new architectural insertion. This is one of India's first major façade-retaining renovation projects.

The store was designed by Virgile + Partners, blending Parisian and Indian design motifs. The result is a distinctive retail interior; key design features include a life-size Cupola inspired by the French observation balloon L'Intrépide (1796), which floods the central atrium with natural light, an elliptical ‘Jardin de Paris’ staircase with hand-embroidered wallpaper created by Indian artisans and lotus-motif parchinkari stone inlay at the ground-floor entrance, inspired by the Taj Mahal’s craftsmanship. Three Indian artists, Sheehij Kaul, Reshidev RK, and Aashika & Tanishaa Cunha (from Plane Crazy Studios) were commissioned for permanent in-store works.

Beyond retail, the store has positioned itself as a cultural destination bridging France and India. Starting in November 2025, Galeries Lafayette Mumbai displayed rotating art installations, live activations and pop-up shows.

In February this year, the store also hosted a flagship event for the India-France Year of Innovation 2026, attended by two French government ministers (Roland Lescure, Minister of Economy, and Éléonore Caroit, Minister Delegate for Europe) and featured a collaboration with contemporary Indian artist Ankon Mitra. During the same time, Galeries Lafayette Mumbai participated in the India Design ID 2026 fair in New Delhi (the second edition of ‘Art de Vivre à la française’), reinforcing its cultural presence ahead of the planned Delhi store.

Brand selection and specialised services

The pace of brands’ market entry in India has accelerated dramatically. 27 new international brands entered India in 2024 (nearly double the 14 in 2023), with 56% from EMEA, led by France and Italy. 2025 entries include Messika (via The Chanakya), Chanel Beauty on Nykaa, Stella McCartney (via RBL), Maje (Jio World Drive, via RBL), and Kilian Paris. French luxury group SMCP (Sandro, Maje, Claudie Pierlot) entered via Reliance in 2023, with its first Sandro store opening in Mumbai in January 2025. The 2026 pipeline includes Lululemon (via Tata CLiQ), Abercrombie & Fitch/Hollister (via Myntra), and Off-White.

Indian designer labels are closing the revenue gap with global players at a striking pace. By Fiscal Year 2025, Sabyasachi reached ~INR 500 crore in revenue, Tarun Tahiliani ~INR 350 crore, and Manish Malhotra INR 308 crore, exceeding Gucci India (INR 265 crore and down 17% YoY) and Christian Dior India (INR 257 crore and down 3% YoY)[4].

At opening, Galeries Lafayette Mumbai carried over 250 brands with approximately 70% of the assortment exclusive to India, and 200 brands entering Indian retail for the first time. Notable India-firsts include Coperni, Patou, Marni, Valextra, Diptyque, and Parfums de Marly. Indian designers confirmed at launched included Bodice (Ruchika Sachdeva), Dhruv Kapoor, Almost Gods, Hemant & Nandita, Rococo Sand, Verandah (Anjali Patel Mehta), Chorus (by Chanakya atelier), Misho (jewellery), Deepa Gurnani (jewellery), plus Sabyasachi and Tarun Tahiliani[5].

Services offered at the store include personal styling and personal shopping appointments, private reception lounges and VIP client spaces, in-store concierge services, and seasonal cultural programming and live activations. It will also offer special wedding-season services, a key focus given India’s luxury wedding market and valet parking services, catering to Mumbai’s car-travel culture.

Cultural dynamics and the Indian luxury consumer

The purchasing behaviour of Indian luxury consumers is heavily influenced by cultural traditions and a growing appetite for experiences. The $50 billion Indian wedding market is a primary catalyst, driving over half of all gold jewellery sales and prompting large-ticket spending across fashion and hospitality. For these key celebratory occasions, consumers show strong cultural loyalty to homegrown designers like Sabyasachi and Tarun Tahiliani, whose revenues now rival or surpass major European fashion houses operating in India.

Geographically and digitally, the Indian luxury consumer is also evolving. While Mumbai and Delhi-NCR remain crucial hubs, luxury consumption in non-metro cities is booming, driving over 50% of all luxury e-commerce sales. Automobiles constitute the largest and fastest-growing luxury category in India[6]. Within personal luxury goods, watches and jewellery dominate the category, alongside a rapidly growing beauty segment.

However, domestic luxury shopping faces a structural hurdle: high import duties and a 28% Goods and Services Tax mean luxury goods can cost up to 40% more than in markets like Dubai, leading many wealthy Indians to systematically shop abroad. The India-EU and India-EFTA trade deals are the first policy changes in decades to address this directly. Galeries Lafayette’s response is to align pricing with Dubai levels where possible.

For those shopping domestically, especially newer entrants climbing the luxury ladder, Galeries Lafayette can act as an accessible premiumisation gateway, offering a less intimidating experience than mono-brand boutiques. During the launch, Galeries Lafayette’s international development director Philippe Pedone also acknowledged that more local brands would be added.

Galeries Lafayette’s Indian market roadmap

Galeries Lafayette’s entry into Mumbai marks the group’s strategic pivot away from competitive Western markets (highlighted by the July 2024 closure of its Berlin store) and toward high-growth regions like Asia and the Middle East[7]. With a global ambition to increase international revenue from 10% pre-pandemic to 25% by 2030, India sits at the core of this strategy alongside markets like Dubai, Doha, and Macau. The immediate next phase for the Mumbai flagship involves completing its experiential offerings. While food and beverage concepts were not operational at the November 2025 launch, CEO Arthur Lemoine confirmed that rooftop dining will launch in 2026, with the Parisian dining concept La Cantine du Faubourg in advanced talks for the space.

Beyond the Mumbai flagship, Galeries Lafayette’s roadmap in India relies on both physical footprint expansion and digital penetration. A second flagship store in New Delhi, spanning approximately 5,500 square meters within the DLF Emporio complex, is now targeted for 2027 following developer timeline delays. To capture the growing wealth and demand outside major metro areas, the brand also plans to launch a dedicated e-commerce platform aimed at consumers in Tier-2 and Tier-3 cities.

Ultimately, the long-term success of this expansion will lean on its partnerships. By leveraging Aditya Birla Group’s deep connections with homegrown brands and continuing to act as a conduit for Indian-French cultural diplomacy, Galeries Lafayette is positioning itself not just as a foreign retailer but as a deeply integrated platform bridging global luxury with India’s evolving consumer landscape.

Credits: Anchita Ranka

[1] Galeries Lafayette to open its first store in India amid luxury boom

[2]Hurun-India Wealth Report 2025

[3] India Luxury Goods Market Size, Share, Trends and Forecast by Product Type, Distribution Channel, End User and Region, 2026-2034

[4] Indian luxury brands close revenue gap with global players in FY25: Rediffusion report

[5] Galeries Lafayette Bows in Mumbai, a Major Step for Retail in India

[6] Experiential luxury, cars and beauty driving Indian luxury market

[7] ‘The timing is finally right’: Galeries Lafayette arrives in India

What: The AI productivity paradox reveals that faster output alone does not guarantee sustainable performance, as organisations risk eroding judgment, expertise, and leadership capacity without redesigning human systems.

Why it is important: The failure to address the hidden costs of AI acceleration can undermine decision quality, talent pipelines, and future competitiveness.

AI is accelerating output across organisations, but speed alone is not producing the performance gains or capability development that the investment promises. As generative tools lower the cost and time of production, they also risk eroding the pathways through which judgment, expertise, and leadership are built. The so-called "fluency gap" emerges when organisations focus on adoption and upskilling without redesigning work architecture, feedback loops, and developmental pathways. This gap means that while employees may become proficient with AI tools, they may lack the evaluative depth and decision-making capacity needed to reliably lead, oversee, and correct AI outputs. The hidden costs of AI acceleration include increased review and coaching burdens for managers, weakened feedback loops, and a false sense of progress that can mask deeper capability losses. Without redesigning work and developmental pathways, short-term productivity gains can mask a slower erosion of the judgment and leadership capacity that sustains them.

IADS Notes: Seramount (March 2026) highlights the AI productivity paradox and the risk of eroding decision quality when human systems are not redesigned. Harvard Business Review (March 2026) warns that generative AI accelerates output but does not build expertise, while aggressive automation in entry-level roles threatens talent development. BCG (December 2025) and McKinsey (November 2025) find that successful AI transformation depends on leadership-driven, human-centric adoption and robust governance. Harvard Business Review (February and March 2026) documents the hidden costs of AI acceleration, showing that increased workloads and weakened feedback loops can quietly undermine organisational health and future leadership capacity.

The AI productivity paradox

What: OpenAI's decision to disable Instant Checkout exposes the challenges of integrating advanced AI into real-world shopping, highlighting the need for brands to adapt strategies for agentic commerce.

Why it is important: Brands that adapt to AI-driven discovery and invest in customer relationships are better positioned to maintain relevance as agentic commerce matures.

ChatGPT's withdrawal of Instant Checkout makes one thing clear: technological capability and consumer readiness are not the same thing. While AI-driven shopping assistants have become effective at product discovery and recommendation, most consumers remain reluctant to complete transactions within these platforms, preferring the familiarity and trust of established retailer-controlled environments. This hesitation is compounded by the complexity of integrating real-time payments and the lack of full interoperability across the retail ecosystem. As a result, many retailers remain anchored in traditional website experiences, slow to integrate with agentic commerce and optimise for AI-driven, omnichannel journeys. Leading brands are responding by prioritising generative engine optimisation and ensuring their product data is machine-readable and agent-friendly, aiming to maintain visibility as AI platforms become the new gatekeepers of retail. Data ownership and direct customer relationships are becoming the deciding factor as AI platforms increasingly mediate the path to purchase.

IADS Notes: Fashion Network (March 2026) and Digiday (October 2025) show that most shoppers still prefer retailer-controlled platforms for transactions, while BCG (January 2026) confirms that consumer trust in established payment systems remains a decisive factor in checkout behaviour. Journal du Net (January 2026) notes that many retailers are slow to integrate with agentic commerce, and Retail Dive (January 2026) and Bain & Company (March 2026) show that leading brands are prioritising generative engine optimisation to remain visible in AI-powered environments. Forbes (March and February 2026) shows that data control and direct customer relationships are becoming decisive as AI platforms mediate more of the retail journey.

ChatGPT checkout withdrawal: more than a reversal, an agentic hiccup

What: Product data is no longer a back-office concern — it is the raw material on which AI-driven discovery, compliance, and commercial visibility now run.

Why it is important: As AI-driven recommendations and search engines shape purchasing decisions, the quality and governance of product data have become decisive for retail visibility and compliance.

Product data has moved from back-office maintenance to the front line of digital commerce strategy. As regulatory demands intensify and AI channels proliferate, retailers who cannot structure and govern their product data are progressively invisible to the algorithms that now decide what shoppers see first.AI now enables retailers to automate the extraction, normalisation, and validation of product attributes across entire catalogues — turning what was once a sheet-by-sheet manual process into a systematic, governed workflow. The human role shifts rather than shrinks: AI executes and suggests; people define the rules, set criticality thresholds, and sign off on changes that matter.The emergence of generative AI and conversational search engines has repositioned product data as the key signal for discovery and recommendation, with the completeness and consistency of information directly influencing a brand's visibility. Retailers must now manage product data as a living asset, continuously enriched and governed to meet evolving regulatory and algorithmic requirements. Retailers who build this governance capacity will reduce compliance risk — and position their products to be found, before competitors who have not.

IADS Notes: Liontree (April 2026) puts a number on the shift: AI-driven recommendations already influence 10% of consumer purchasing decisions — a figure that makes data quality a brand visibility question, not a catalogue management one. BCG (September 2025) frames the operational challenge plainly: AI can manage product data at a volume no team can match manually, but only within governance structures most retailers have yet to build. The Diplomat's March 2026 coverage of Coupang's data breach makes the cost of that gap concrete — operational disruption, regulatory exposure, and reputational risk are the direct consequences of inadequate data governance. Retail Dive (September 2025) examines Target's move into GEO and AI-powered search — a model in which product data structure, not advertising spend, determines discovery. Journal du Net (January 2026) documents how generative AI is shifting competitive advantage away from marketing budgets and toward data quality, giving retailers with precise, well-governed catalogues access to discovery channels previously closed to them.What these five sources confirm is what the source article argues from the practitioner side: the infrastructure is ready, the algorithms are running, and the question is no longer whether to govern product data well. It is whether you already have.

Product data: fuel for commerce and AI engines

What: AI platforms are rapidly shifting retail power, challenging brands to maintain direct customer relationships and data ownership.

Why it is important: This development highlights the urgent need for retailers to invest in proprietary data and AI integration to remain competitive.

The growing dominance of AI platforms is transforming the dynamics of customer relationships in retail, compelling brands to rethink how they engage and retain their audiences. As agentic commerce and generative AI become central to product discovery and purchase, retailers face the risk of losing direct access to their customers, along with valuable data and brand loyalty. To counter this, leading retailers are investing in proprietary data, domain-specific AI models, and organisational transformation, enabling more accurate automation, efficient operations, and hyper-personalised experiences. The industry is witnessing a shift from traditional marketing and loyalty tactics to AI-optimised content and strategies designed to appeal to AI agents, which now play a pivotal role in shaping consumer journeys. As retail emerges as one of the sectors most vulnerable to AI-driven disruption, the ability to build defensibility through in-house AI capabilities and first-party data is becoming a critical differentiator. Those who adapt quickly and strategically are best positioned to maintain relevance and customer trust in an increasingly AI-mediated marketplace.

IADS Notes: The rapid adoption of agentic commerce, as reported by the Financial Times in November 2025, is shifting retail power to AI platforms and challenging brands to safeguard customer relationships and data. BCG’s February 2026 and January 2026 analyses confirm that only retailers who fully integrate AI and invest in proprietary data and organisational change are achieving sustained growth and resilience. Retail Touchpoints in January 2026 highlights the competitive advantage of domain-specific AI, while Inside Retail in November 2025 details the new tactics brands are using to optimise for AI agents. The Consumer AI Disruption Index from January 2026 further underscores the sector’s vulnerability to AI-driven disruption, emphasising the need for defensibility through first-party data and hyper-personalised engagement.

AI doesn’t own the customer yet. Here’s how retailers can keep it that way

What: Nuuds, a DTC-native brand, enters a retail partnership with Nordstrom to expand its reach through wholesale.

Why it is important: The development underscores the renewed relevance of physical retail as a platform for digital-native brands seeking broader market access.

Nuuds’ entry into a wholesale partnership with Nordstrom signals a significant evolution in the retail landscape, where direct-to-consumer brands are increasingly seeking established retail partners to amplify their reach. By joining forces with Nordstrom, Nuuds leverages the department store’s expertise in curation, storytelling, and customer engagement, positioning itself to access new audiences and strengthen its brand presence. This collaboration reflects a broader industry trend in which department stores are reinventing themselves as platforms for emerging brands, prioritising curated assortments and experiential retail to remain relevant amid shifting consumer preferences. The resurgence of specialty boutiques and the renewed focus on physical retail environments further support this strategy, offering DTC brands opportunities to blend digital innovation with in-person experiences. As the boundaries between online and offline retail continue to blur, partnerships like that of Nuuds and Nordstrom exemplify how agility, operational adaptation, and a commitment to customer-centricity are becoming essential for sustained growth and differentiation in a competitive market.

IADS Notes: Nuuds’ partnership with Nordstrom is emblematic of a wider industry shift, as seen in February 2026 (WWD), where Nordstrom’s focus on curation and exclusive partnerships supports both established and emerging brands. This trend is reinforced by the transformation of multibrand retail documented in December 2025 (BoF), the resurgence of curated department stores and boutiques in September 2025 (BoF), and the enduring relevance of platforms like Liberty London in May 2025 (Monocle). The renewed prominence of physical retail, highlighted in January 2026 (Forbes), confirms that digital-native brands are increasingly blending online and offline strategies to maximise growth and engagement.

How DTC-native brand Nuuds established a retail partnership with Nordstrom

What: The BeautyMatter x SCAD report demonstrates how innovative retail environments in Shanghai and Singapore are setting new standards for Gen Z engagement and brand loyalty.

Why it is important: The findings show that Gen Z's expectations for authenticity and personalisation are pushing retailers to close the gap between what they claim to offer and what consumers actually experience.

Shanghai and Singapore are treating physical retail as cultural infrastructure. A new BeautyMatter x SCAD white paper — based on three weeks of field research by 28 SCAD students — documents what Gen Z expects from stores there, and what that means globally. Across flagship stores, malls, and concept spaces, students observed how this generation moves between a phone and a store without distinguishing between them, demanding authenticity, personalisation, and emotional connection from brands at every point of contact. The report details how retailers are leveraging local heritage, multi-sensory environments, and co-creation to build lasting loyalty and community. In both cities, stores operate less as points of sale and more as entry points into ongoing brand relationships, while digital integration tracks consumers across platforms without requiring them to restart the relationship at each touchpoint. The research confirms the importance of service quality and human connection, revealing that Gen Z's expectations in these markets are already setting the benchmark for what physical retail must deliver everywhere else.

IADS Notes: The BeautyMatter x SCAD report is supported by recent industry news, such as Inside Retail (April 2025) on Singapore's City Square Mall's $50 million redesign toward AI-integrated, experience-first retail, The Chosun Daily (February 2026) on Korea's move to lifestyle-driven department stores, and MBS (March 2026) on the value of placemaking. Le Figaro (March 2026) highlights the integration of art and culture in department stores, while Forbes (February 2026) and The Robin Report (March 2026) confirm that closing the gap between what Gen Z expects and what most retailers currently deliver remains the sector's defining challenge.

The future of experiential retail

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CLICK HERE TO SEE THE PRESENTATION OF DE BIJENKORF ROTTERDAM

For 155 years, De Bijenkorf has stood as one of the Netherlands’ most recognisable retail institutions. Yet the past decade has tested the department store, from ownership shifts and pandemic shocks to repeated reorganisations and a push to reconcile heritage with profitability. The IADS had the occasion to visit the Rotterdam store. This article walks through the company’s history and the store floor and asks whether De Bijenkorf can create true excitement among its customers. Store pictures are attached to this article.

155 years of history

De Bijenkorf: the beehive of commerce

Founded in 1870 in Amsterdam, De Bijenkorf has breifely been a member of the IADS in 1930. Everything began when Simon Philip Goudsmit opened a small haberdashery in Amsterdam, a modest origin that gave the company its Dutch name, “the beehive,” and its early reputation for quality goods and service. Throughout the late 19th and early 20th centuries, the business expanded from that single shop into a full‑scale department store in Amsterdam, adding product categories and services and establishing itself as a city‑centre destination for middle- and upper‑market shoppers.

Since 2011, the department store has been owned by the Selfridges Group.1 The group was owned by the Weston family, who now also own Fortnum & Mason and Primark, among others, until 2022, when Central Group and Signa Holding acquired it.

In 2013, De Bijenkorf launched its “premium experience” strategy, investing more than €200 million in five years: the goal was to transform the business to reach a higher international standard in terms of brands, services and shopping experience. Five stores were closed to focus only on those able to convey the premium message. De Bijenkorf now has seven stores2 and a patisserie in Amsterdam. The e-commerce branch opened in 2009 to serve the Netherlands and, from 2019, has expanded across Europe, with German, French, Austrian and Belgian websites, and has communicated heavily on social media.

Covid financial impact

2020 was supposed to be a great year for De Bijenkorf, as it was turning 150. The pandemic prevented any celebrations, and total sales fell by 22%. De Bijenkorf online sales grew by +53% in that same year, offsetting a part of the overall loss and allowing the company to announce an operating profit of €19,4 million (falling down from €77,8 million in 2019).

De Bijenkorf reported an operating loss of €33.3 million in 2021, despite a 10% increase in sales. This poor performance was attributed to rising costs and Covid-related closures during the 2021 winter. However, analysts wondered whether the Central Group and Signa Holding would focus solely on the jewel in the crown, the Selfridges London location, or also help the other names, such as De Bijenkorf.

2023 brought the Dutch luxury department stores 6% more visitors, but this increase did not translate into sales growth. However, thanks to restructuring measures, they managed to increase EBITDA by 37% and their operating profit to €7 million. Thirty-seven in-store managerial roles and 15 job cuts at HQ were announced, along with the discontinuation of e-commerce activities in France, Germany and Austria due to rising costs.

In 2024, managerial turmoil emerged with CEO Matthijs Visch stepping down after less than six months, amid ongoing transformation challenges and recent ownership changes. In 2025, Central Group appointed fourth-generation Chirathivat family member Sean Hill as the new CEO of De Bijenkorf, strengthening the family’s control over the company.

Ongoing restructuring

In January 2026, De Bijenkorf announced another reorganisation due to challenging market conditions, leading to 167 job cuts (110 in stores, 57 at HQ) out of around 2,400 employees. The company said it would reduce HQ and in-store positions, with a strategic focus on operational efficiency, local relevance and creating customer desire through an enriched shopping experience. Also, this restructuring is not considered a response to declining sales, as the company recently reported a profitable year, but rather a proactive measure to address rapidly changing and challenging market conditions.

The Rotterdam store: architecture, heritage and retail

Marcel Breuer’s masterpiece

Architecture is key to department stores. While tourists visit the Galeries Lafayette dome as one of Paris most important landmarks, the De Bijenkorf department store is also one of Rotterdam’s architectural and cultural retail landmarks. Designed by Marcel Breuer, it is an important piece of post‑war modernist architecture. The building was developed and built in the 1950s and is today protected as a national heritage site. Breuer’s design for De Bijenkorf expresses the mid‑century modernist language he is known for: strong geometric volumes and a carefully resolved façade treatment. The building is an urban object in concrete and stone and was conceived as part of the city’s reconstruction after World War II bombing, making it a symbol of renewal. The store’s public face historically included notable artworks, such as the Naum Gabo outdoor sculpture associated with the building, underscoring the project’s ambition to integrate architecture, art and public life. The store is a simple rectangle and has 5 selling floors, including the basement.

A walk through the store: departments, concepts and highlights

- Ground floor

Bringing natural light into the ground floor, numerous exterior openings make the building visually and physically porous to the street. This explains the pleasant, airy feeling visitors note when on the ground floor. Cosmetics and beauty products account for about two-thirds of the floor, with leather goods, jewellery and sunglasses completing it. The main entrance opens onto a cosy and busy café (with a Venchi Italian confectionery shop) filled with natural light, and Chanel, Dior and Charlotte Tilbury beauty counters, among others. These are completed by a multi-brand area for K-beauty and niche brands on the other side of the entrance and directly visible from the street. There is also what they call the “Beauty Studio”, a nicely executed small area selling minis and a De Bijenkorf €59,95 beauty set that includes around 10 small-format products from brands such as Olaplex and Dr Jart+.

Four luxury full-concept shop-in-shops (Gucci, Saint Laurent, Louis Vuitton and one under construction) occupy one side of the building. Other leather goods brands include Lauren, Chloé, Jacquemus, Marc Jacobs, Jérôme, Dreyfus, Isabel Marant, Furla, Michael Kors, Coach, Longchamp and more. Jewellery and watches include Emporio Armani, Swarovski, Diesel, and a diamond brand, making this the only luxury brand in this section. An engraving station completes this department.

- First floor

The floor is dedicated to women’s fashion. Brands like Etoile Isabel Marant, Ba&sh, Sandro, Weekend Max Mara, Sessun, American Vintage, Max & Co have shop-in-shops located on all four walls of the floor. They are equipped with “soft” concepts, similar to those at Le Bon Marché: a semi-personalised wall featuring the brand logo and brand colours and a personalised piece of furniture. The floor centre is organised in four multi-brand parts, without brand personalisation:

•  Luxury and affordable luxury brands such as Burberry, Moncler, Acné Studios, Zimmermann, Ami Paris, The Frankie Shop and Jacquemus.
• An outdoor section with puffer jackets, on sale at the time of the visit.
• A premium/contemporary section with Scandi brands such as Ganni, MSCH Copenhagen and Neo Noir.
•  A nicely executed denim section with a ceiling influenced by the former NYC Whitney Museum, a famous building by Marcel Breuer.

Two dressing rooms are placed between each shop-in-shop along the 4 walls. The layout is airy, well organised and invites browsing.

- Second floor

The floor is home to women’s shoes, lingerie, hosiery and kidswear. The floor also hosts a restaurant called “The Kitchen,” with windows that open onto the outside. The shoes section is premium-oriented with brands like Jonak and Unisa. The only luxury names include Isabel Marant, Chloé and Balenciaga. Lingerie and hosiery feel more packed, and offer brands such as Skims, Calvin Klein, Aubade, Simone Perèle, Hanro, Falke and more. A Björn Borg activewear pop-up store completes the offerings.

The kids’ wear zone is split between toddler and teen assortments. On the toddler side, the assortment is quite upscale with a few brands like Burberry and Stone Island. The most notable features are a large and personalised Donsje Amsterdam shop-in-shop and Jelly Cat soft-toy offerings, with no staff to convey the product experience. The teen section, geared toward boys, features brands like Tommy Hilfiger, Polo Ralph Lauren and Les Deux. The dressing rooms are designed to be appealing to kids.

- Third floor

The top floor is the home, luggage and gift floor. It has five sections: kitchen (appliances, cookware, glassware and tableware), bed and bath linen, home decor, luggage and, finally, a multi-product gift section. Kitchen appliances include KitchenAid, Ninja, Sage and a multi-brand coffee maker section. Cookware includes brands like Le Creuset. Tableware and glassware are a multi-brand area featuring Villeroy & Boch, Ittala, and Serax soft shop-in-shops. A small food section with products such as nice olive oil bottles completes the kitchen section.

Home scents with a Rituals shop-in-shop and a Marie-Stella-Maris counter help transition to the home textile section, which includes labels such as Ralph Lauren, Marc O’Polo, Yves Delorme and the store’s private label. Home decor is a mix of textiles (cushions and throws) and colour displays with vases and small objects. The section is well executed and quite inspirational. Luggage has a large section with Samsonite, Tumi and Rains backpacks.

The gift area is quite significant and includes fashion books, children’s books, books on the Netherlands, fashion and culture press, plush toys, Lexon gadgets, small objects, adult 3-D puzzles and a Stanley shop-in-shop. A large area dedicated to stationery and experiential gift boxes completes this section. The floor suffers from insufficient lighting and requires renewal.

- Basement

Also accessible from the subway, the men’s department is in the basement and organised into four parts: the luxury section; shoes; suits and formalwear; and finally, streetwear, contemporary and casual brands (including Represent, Diesel, and Ralph Lauren). The men’s shoes assortment is more luxury-oriented than women’s, with brands like Maison Margiela and Amiri. A well-executed large sneaker wall is also part of this section. The multi-brand luxury RTW includes Dior, Burberry, Givenchy, Stone Island and more.

A small De Bijenkorf Museum about the store’s heritage and history is available at the subway entrance in the basement. Not attractive at all, it obviously fills a part of the store that is difficult to display products in or monetise.

Too polished to surprise: execution needs emotion

Overall, the store is airy, tidy and clean with great execution, and it boasts a few initiatives. However, this is not enough to give flair and excitement to the dwelling and shopping experience.

Invisible services

The store offers many services advertised online, but unfortunately, not advertised or even made visible in-store:

- Beauty advice is available with personalised beauty and skincare consultations.

• Repair services, from garments to watches.
• Dyson services focused on delivering the full Dyson experience. Only a Dyson hair product corner is available on the ground floor.
• Mail ordering service and ship-from-store for Louis Vuitton, Gucci and Saint Laurent products.
• Exclusive VIP appointment for Louis Vuitton, Gucci and Saint Laurent.
• Sneaker cleaning, including steam cleaning, manual cleaning of upper material, laces washing, stain removal and freshener treatment.
• Alteration and made‑to‑measure service.

Services have become increasingly important to the overall retail experience. Many services have been developed from personal shopping, private lounges, personalisation or express delivery. Sneaker cleaning and repair services, for example, have become a staple for some brands. Golden Goose is probably one of the best business cases in that area. Their Repair Hubs available in flagships attract younger customers who want to learn more about their favourite shoes and sneakers. While it may create a buzzing atmosphere, Golden Goose repair services can enhance the brand image and generate additional turnover.

Cross-selling efforts

Cross-selling comes top-of-mind to many department store executives, as the multi-category model should offer more opportunities to sell accross several categories. Playing by the book, a few cross-selling initiatives are scattered across the store. For example, the women’s fashion floor features a pink kiosk offering Stanley cups, Assouline travel books, and trinkets. The kiosk is well-executed, featuring a mannequin and a nice look and feel. However, it is the only one of its kind on the entire floor, insufficient to foster storytelling.

Experimenting with cross-selling and local relevance, another example sits on the men’s fashion floor. Taking cues from Ramadan, a table offers Turkish-style delicacies, nice coffee cups, beauty products from Istanbul, chocolates and other gifts. Also in the men’s department, a display mixes men’s accessories with Stanley cups. Finally, on the home floor, several tables mix scents with bath linens.

The missing ingredients: visual drama and storytelling

Overall, the store is nicely displayed, and everything is played “by the book.” However, there is no excitement, very little storytelling. In other words, something’s missing. First of all, the store lacks the kind of messiness that could give customers the impression of a treasure hunt. But this may be incompatible with the store’s impeccable maintenance. Also, there are not enough mannequin groups featuring inspirational looks throughout the store. It seems the store removed walls and most partitions some years ago. On the bright side, it creates a nice as-far-as-the-eye-can-see effect, but maybe they went too far, as it misses more visual stops than the display elements and the few remaining partitions can create on their own. There are two places with interesting “visual breaks” though: the Beauty Salon, thanks to its pink furniture and partitions, and the denim section, thanks to its lighting and furniture that differ from the rest of the floor.

Also, at the time of the visit, the store wasn’t really featuring a strong marketing campaign. There were in-store references to Ramadan, with a few Eid Mubarak (happy holiday) messages scattered throughout the store, but they were too few and discreet to create a cohesive narrative (though it is understandable that religious content may be difficult to promote). The windows featured a marketing theme, “Maak Plezier” (translating to “have fun”), with yellow geometric flowers and blue columns. Unfortunately, the in-store displays include too few related props to add enough flair and decor to the store. Finally, unlike sister company Selfridges with The Corner Shop, it seems De Bijenkorf doesn’t really have a pop-up store programme, as nothing remarkable was featured. Only a Björn Borg pop-up was identified on the second floor.

So, what’s missing is storytelling brought by striking marketing campaigns. Recent strong and successful marketing campaigns include those from Bloomingdale’s. They now have three or four campaigns per year, including Christmas, Spring and Fall. For example, in October 2024, they launched the first of this kind called “From Italy, With Love.” It was a two-month retail event celebrating Italian fashion, design, cuisine and culture. This campaign truly created an immersive customer experience. Moreover, the campaign’s in-store experience at the flagship store was particularly noteworthy. Shoppers were greeted with Italian-themed visual merchandising. The “Mercato” pop-up store offered gourmet Italian products, while installations throughout the store feature travel posters, Roman columns, and whimsical decor, including large-sized tomatoes and lemons. This is exactly what’s missing at De Bijenkorf.

The strengths of the De Bijenkorf Rotterdam store are clear: standout architecture, a well-curated tenant mix and tidy displays. The problem is not execution in the narrow sense; it is the absence of emotional resonance and storytelling that turns visits into memorable experiences and occasional shoppers into regular customers. Recent profitability and efficiency measures buy time, but they will not create desire. De Bijenkorf’s next phase must fuse preservation with experimentation. That means making services visible and experiential, treating Breuer’s building as a stage for seasonal, immersive campaigns, and using pop-ups and cross-category storytelling to reintroduce the thrill of discovery, the very essence of department stores.

Credits: IADS (Christine Montard)

What: Amazon is using AI to optimise packaging, aiming to reduce waste and operational costs.

Why it is important: The move demonstrates how leading retailers are leveraging technology to address operational challenges and meet rising sustainability expectations.

Amazon’s adoption of AI to streamline its packaging processes marks a significant step in the evolution of retail logistics. By deploying advanced algorithms, the company seeks to minimize unnecessary packaging, thereby reducing both material waste and shipping costs. This initiative is not only a response to growing consumer and regulatory demands for sustainability but also a strategic effort to enhance operational efficiency at scale. The use of AI allows Amazon to analyse product dimensions, fragility, and shipping requirements in real time, ensuring that each item is packed with the optimal amount of protection and minimal excess. Such innovation supports broader industry trends, where retailers are increasingly investing in intelligent automation to balance profitability with environmental responsibility. The campaign’s visibility, amplified by high-profile endorsements, further positions Amazon as a leader in retail technology and sustainability. As the sector faces mounting pressure to deliver greener solutions without sacrificing customer satisfaction, Amazon’s approach exemplifies how technology can drive meaningful change in both business performance and ecological impact.

IADS Notes: Amazon’s initiative to use AI for packaging optimisation reflects the broader retail movement toward intelligent automation and sustainability, as detailed in Journal du Net (January 2026), which highlighted how AI-driven logistics and warehouse automation are reducing costs while supporting growth. BCG’s April 2025 report emphasised the shift toward sustainable packaging innovation in response to cost pressures and environmental demands. Zebra’s October 2025 analysis demonstrated that intelligent operations powered by AI are delivering measurable profitability gains, though scaling remains a challenge. Further, Journal du Net (January 2026) underscored the integration of predictive analytics and circular logistics models to enhance sustainability and customer satisfaction. Ian Jindal’s February 2026 commentary reinforced the necessity for retailers to invest in proprietary AI and operational excellence to stay competitive as technology continues to reshape the sector.

Why Amazon believes AI could reduce packing

What: BCG’s latest article outlines how CEOs must adopt an activist mindset, set bold value-creation targets, and embed accountability to withstand shareholder pressure and drive sustainable value.

Why it is important: The increasing CEO turnover and investor demands in retail underscore the need for integrated value strategies and strong leadership accountability, reflecting trends seen in recent industry reports.

In today’s retail landscape, CEOs are under mounting pressure from activist investors and heightened shareholder expectations, making value creation a central leadership imperative. BCG’s latest article argues that retail leaders must move beyond incremental improvements and instead adopt an activist mindset—setting bold, measurable targets across all value drivers, from core business operations to new growth areas and capital allocation. The article warns against common pitfalls such as the sandbag trap, narrative vacuum, and delegation drift, which can quietly erode market confidence and company valuation. Instead, CEOs are encouraged to integrate business, financial, and investor strategies, ensuring that performance management systems and leadership routines are tightly aligned with value creation goals. By fostering a culture of accountability and transparent communication, retail CEOs can rally senior leaders around a unified agenda, engage investors with clarity, and dynamically adjust strategies in response to market signals. Ultimately, mastering value creation is presented as the ultimate test for CEOs, with those who lead proactively and visibly able to secure both enduring shareholder support and organisational resilience.

IADS Notes: The intensifying pressure on retail CEOs to deliver shareholder value and withstand activist scrutiny is vividly illustrated by recent industry developments. As reported by Reuters in March 2026, Target’s management faced mounting investor agitation over declining sales and governance concerns, culminating in a leadership transition and heightened demands for board accountability. This turbulence reflects a broader trend, with Forbes in January 2026 documenting an unprecedented wave of CEO departures across the retail sector, driven by the dual challenges of digital disruption and evolving expectations for operational excellence. Harvard Business Review’s January 2026 analyses further reinforce the need for retail leaders to set bold, measurable value-creation targets and to embed accountability throughout their organisations. Research highlights that hands-on leadership—where CEOs actively shape operational systems and model desired behaviours—drives innovation, agility, and sustained high performance. Additionally, the adoption of project-driven organisational structures, as explored in Harvard Business Review in January 2026, is enabling retailers to break down silos, accelerate adaptation, and maintain a competitive edge in a volatile market. Collectively, these insights underscore that enduring value creation in retail now depends on visionary yet disciplined leadership, transparent communication, and a relentless focus on operational and strategic alignment.

The CEO’s value test: Think like an activist, deliver like a leader

What: AI and automation are transforming retail jobs, highlighting the enduring importance of routine and frontline roles.

Why it is important: The evolving role of routine work in retail demonstrates that human-centric practices remain vital, even as AI adoption accelerates.

As artificial intelligence and automation become increasingly integrated into retail operations, the industry faces a profound transformation in workforce dynamics. While technology is streamlining processes and reducing the need for certain manual tasks, the value of routine and frontline roles is being reasserted. These positions, often considered low-status or “grunt work,” are essential for maintaining operational continuity and delivering the customer experience that technology alone cannot replicate. Retailers are now challenged to balance the efficiency gains brought by AI with the need to retain, motivate, and upskill their essential staff. This shift is prompting a reevaluation of job structures, with a greater emphasis on human-centric practices and the recognition that employee engagement and values alignment are crucial for long-term success. As automation accelerates, the industry’s ability to adapt workforce strategies and invest in people will determine its resilience and capacity to thrive in a rapidly changing environment.

IADS Notes: The discussion around the value of routine, manual, and operational roles in retail is gaining renewed urgency as artificial intelligence and automation reshape the industry’s workforce. Recent events, such as the significant job cuts at Amazon and Target in October 2025, underscore how AI is transforming entry-level and support positions, prompting retailers to rethink the skills and training required for frontline staff. BCG’s 2026 predictions reinforce that automation is not merely about reducing costs but about fundamentally redesigning roles to elevate responsibilities and introduce new advisory functions, with robust upskilling and governance now essential for sustainable growth. Le Monde’s October 2025 analysis highlights that while automation threatens many traditional jobs, leading retailers are leveraging AI to augment rather than replace human talent, focusing on productivity and employee development. However, BCG’s September 2025 findings reveal that only a minority of retail workers feel prepared for these changes, emphasising the need for systematic upskilling and a balanced approach to technology adoption. Amid these shifts, The Retail Bulletin in May 2025 notes a growing emphasis on value alignment and human-centric practices, as retailers recognise that employee engagement and the irreplaceable value of human interaction remain central to delivering customer experience and sustaining operational excellence.

In praise of grunt work

What: BCG’s latest report shows that HR’s strategic role is expanding, but most retail organisations still struggle to implement skills-based talent management and scale digital transformation.

Why it is important: The uneven progress in HR digitalisation and skills management in retail mirrors broader industry trends, reinforcing the importance of leadership and investment in workforce development.

BCG’s 2026 report, based on a global survey of over 7,000 HR and business leaders, reveals that while 65% of senior leaders now view HR as a key business enabler, the retail sector continues to face significant challenges in translating this strategic vision into operational reality. Despite widespread adoption of generative AI and digital solutions, only a minority of retail organisations have successfully scaled these technologies or embedded enterprise-wide skills architectures. Administrative workload and capability gaps remain primary barriers, with only 11% of companies reporting a fully developed skills taxonomy. The report highlights that large organisations are more advanced in deploying AI and people analytics, while small and medium-sized enterprises focus more on culture and rewards. Regional differences further complicate the landscape, with varying priorities and capabilities shaping local approaches to workforce transformation. Ultimately, the findings underscore the need for retail CHROs to move beyond foundational HR practices, invest in systematic upskilling, and lead digital transformation efforts to deliver measurable business value and retain talent in an increasingly competitive environment. (Word count: 172)

IADS Notes: The strategic elevation of HR as a business enabler and the push for skills-based talent management in retail are underscored by persistent gaps between ambition and execution. As highlighted by BCG in July 2025, while 72% of retail workers use AI, only 36% feel adequately prepared, revealing the urgent need for systematic upskilling and a more integrated approach to workforce development. This aligns with HR Dive’s findings from December 2025, which emphasise the growing importance of both hard and soft skills in retail hiring, as well as the necessity for inclusive leadership to support generational diversity and reduce turnover. The challenges are particularly acute in luxury retail, where a MAD study from June 2025 reported that 60% of brands struggle with frontline recruitment and 93% with manager positions, despite 77% planning to implement AI solutions by 2028. BCG’s September 2025 analysis further confirms that only a minority of retailers have successfully scaled AI initiatives, with systematic upskilling remaining a critical gap. Finally, Gallup’s January 2026 survey demonstrates that only 51% of frontline staff are active AI users and just 10% of retailers have scaled AI applications, highlighting the need for targeted training, workflow redesign, and leadership engagement to bridge the divide between digital ambition and operational reality.

Creating people advantage 2026 - Four power moves for the CHRO

What: AI-generated strategic advice for retailers is often undermined by shifting biases and unreliable outputs.

Why it is important: Evolving AI biases and data quality challenges directly impact the effectiveness of retail innovation and competitive strategy.

The text highlights the inherent challenges retailers face when seeking strategic advice from large language models. As these AI systems are continuously updated and retrained, their biases can shift unpredictably, making it difficult for retail decision-makers to rely on their outputs for consistent, actionable guidance. This instability is compounded by the opaque nature of AI training data and algorithms, which limits transparency and makes it nearly impossible to fully understand or counteract emerging biases. The risk of over-reliance on such models is significant, as it can lead to flawed forecasting, misguided planning, and ultimately, poor strategic decisions. The need for explainability and robust oversight is critical, as retailers must balance the promise of AI-driven innovation with the realities of data quality and governance. Ultimately, the text underscores the importance of integrating human expertise and critical thinking alongside AI tools to ensure resilient and effective retail strategies in an environment where technological and data-driven uncertainties are ever-present.

IADS Notes: Recent industry analysis confirms that the reliability and strategic value of AI-driven advice in retail are deeply influenced by the evolving nature of large language models and the data that shapes them. As highlighted in January 2026 by Retail Touchpoints, retailers are increasingly moving from generic AI to domain-specific models, leveraging proprietary data to improve accuracy and operational outcomes, yet persistent barriers such as integration and governance remain. The Financial Times in November 2025 underscores that while agentic commerce is transforming the sector, it also introduces new risks around fairness, transparency, and the concentration of power in AI platforms. BCG’s January 2026 report stresses the necessity of intentional model diversity and robust oversight to counteract automation bias and ensure resilient decision-making, echoing Inside Retail’s September 2025 warning that over-reliance on AI affirmation can erode critical thinking and customer insight. Meanwhile, Forbes in January 2026 documents the regulatory and reputational risks associated with opaque AI-driven pricing, reinforcing the urgent need for transparency and ethical governance. Collectively, these insights demonstrate that the future of retail AI depends on a careful balance between technological innovation, responsible oversight, and the irreplaceable value of human judgment.

Researchers asked LLMs for strategic advice. They got “trendslop” in return.

What: The article from Boston Consulting Group contends that most corporate failures stem from internal weaknesses such as ignorance, inertia, individualism, and infighting rather than external threats.

Why it is important: Recognising and addressing internal barriers is crucial for retailers seeking to adapt, innovate, and maintain competitive advantage in a rapidly changing environment.

This Boston Consulting Group article challenges the conventional focus on external threats by asserting that the root causes of corporate decline are almost always internal. Drawing on historical and contemporary examples, the authors identify four primary enemies within organisations: ignorance of changing market realities, inertia that blocks the implementation of new strategies, individualism that undermines teamwork, and infighting among key decision makers. These internal weaknesses, they argue, are far more damaging than any external disruption, as they erode competitiveness, stifle innovation, and ultimately lead to mediocrity or failure. The article emphasises that successful leadership requires ongoing self-reflection, a willingness to adapt strategy continuously, and the cultivation of a collaborative, execution-focused culture. CEOs are urged to confront uncomfortable truths, foster trust, and manage conflict proactively, recognising that the destiny of their companies lies in their ability to defeat these internal adversaries.

IADS Notes: The article’s exploration of internal weaknesses—ignorance, inertia, individualism, and infighting—as the primary causes of corporate decline is acutely relevant to the retail industry, where similar patterns have been documented in recent analyses. The Robin Report in February 2026 warns that layering new strategies onto legacy store formats without operational redesign leads to a gradual erosion of customer experience and efficiency, echoing the dangers of inertia and misaligned execution. BCG’s July 2025 research confirms that only a minority of retailers achieve meaningful productivity gains from technology, with success hinging on end-to-end reinvention and the dismantling of organisational silos. Harvard Business Review’s January 2026 coverage of project-driven organisations and C-suite dynamics further underscores the importance of cross-functional collaboration and cohesive leadership, showing that innovation and adaptability depend on breaking down barriers between teams and aligning executive incentives. Finally, the same month’s analysis of hands-on leadership demonstrates that CEOs who actively model desired behaviours and foster trust across teams are best positioned to drive operational excellence and sustained performance. Collectively, these sources illustrate that the most resilient retailers are those who confront internal weaknesses head-on, intentionally redesign their organisations, and cultivate a culture of collaboration and disciplined execution.

The enemy is (almost) always within

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During the last IADS Mid-year meeting in Seoul in June 2025, member CEOs had the opportunity to visit several Korean retail landmarks, including the much-acclaimed The Hyundai Seoul. To provide them with a complete understanding of the specificities of the Korean market, a visit to Hyundai’s first-ever department store in Seoul, in the Apgujeong neighbourhood, completed the tour.

Interestingly, this visit generated the highest number of questions, as this visit allowed all visitors to understand the weight of the VICs[1] in the traditional Korean department store business, to an extent well beyond what is experimented in other retail markets.

This Exclusive aims at understanding the specificities of this store and what it tells about high-end Korean retail. A picture report completes this article.

Hyundai’s first-ever department store

Hyundai Department Store’s roots trace to Keumgang Development Industries (established in 1971) within the Hyundai Group, which opened the Ulsan Centre (now known as the Hyundai Department Store Ulsan Dong-gu) in 1977. This first foray in retail allowed the acquisition of enough know-how to open a department store.

The first unit to be opened was the Apgujeong store, in 1985. This area, an upscale neighbourhood in southern Seoul, is situated along the northern edge of the Han River within Gangnam-gu. Such a choice was visionary: starting from the late 1980s onward, Apgujeong catalysed Gangnam’s premium identity and became synonymous with high-end living, fashion-forward retail, and premium medical and beauty services offered to affluent and trend-conscious HNWIs living in the vicinity. In fact, even though the area is now facing competition from other zones nearby, such as Cheongdam and Seongsu, Apgujeong’s identity today remains closely tied to the emergence of modern Korean consumer culture and the rise of domestic brands.

In comparison, rivals Lotte and Shinsegae opened their first flagship stores in the central Myeong-Dong area, not far from the town hall, and both strategically addressed tourists and the commuting population coming and going from their offices. Hyundai differentiated itself early by placing its flagship in a wealthy residential catchment rather than a central business and/or tourist district. However, even though the choice of the location was wise, Hyundai was not the first-comer in Apgujeong: since 1979, Hanwha was already operating a department store, called “Hanyang Shopping Center”, which would become after a significant upgrade in 1990 as a response to Hyundai, the Galleria department store, first under the name Galleria Fashion Hall, and then, starting 1994, Galleria Luxury Hall[2].

At launch, the Apgujeong Hyundai store boasted the first POS system in Korea, and included a cultural centre, supporting a community-driven strategy and a service-based model, well before “experience” was a thing in retail. This allowed the creation of a strong followership from local customers and loyalty among surrounding VICs, attracted by features such as the “sky garden” (a rooftop including a private club) and several lounges dedicated to specific VIC tiers. Even though Hyundai kept on opening new stores in the city and nationwide, until reaching the current total of 14 locations, Apgujeong remains a prestige location for Hyundai, very differentiated from the more recent The Hyundai Seoul one, and a point of reference for luxury brands.

Since its opening, the store did not go through significant structural changes, except the cultural centre, which has been rebranded CH 1985 and now serves as a boutique cultural space, and the B1 food hall renovation in 2023, where a 6,750 sqm “Gastro Table”, a premium dining concept curated with chef-driven counters and notable dessert brands, was opened (B2 was also renovated at this date).

Visiting the store

The store's second basement level (B2) is dedicated to a surprising assortment for this floor location: women's contemporary and children's fashion, niche and rare perfumes (the luxury brands are on the ground floor), sports and lingerie. The women’s fashion area includes Maison Kitsuné, Ganni, Sandro, A.P.C., Maje, Time (a Hyundai private label), System (a Hyundai private label), Alice & Olivia, Tom Greyhound (the Hyndai-owned Handsome Corporation’s fashion multi-brand concept) and others. The kids' offerings lean towards the luxury side, featuring brands such as Baby Dior, Fendi Kids, and Moncler Enfants. In the meantime, customers can find Nike and Adidas in the sports section, nearby a prime selection of fragrance brands such as Officine Universelle Buly and Creed. To complete the picture, a variety of cafés and restaurants dot the space, with a Nespresso shop and other appliances featured in between.

We found this B2 floor surprising for two reasons. The first one being the assortment, which is very eclectic (and allows to finds brands ranging from Adidas to Baby Dior, Nespresso or Officine Bully). The second one is its positioning in the store as the B1 floor is entirely dedicated to home and food. In fact, given the fact that most customers drive to the store, it is expected that this floor captures their attention while coming from the parking lots (B4, B3). It is notable that the shuttle pods (Hyundai offers a free shuttle service for residents of Apgujeong[3]) and the directly connected Apgujeong subway station go directly into B1, and not B2.

The first basement (B1) focuses on food and living, integrating a gourmet space, a general 1,650sqm-wide  supermarket with self-service and fast POS options, and a food court (“Gastro Table”) that positions food as experience: chef-led counters, elevated service (table delivery instead of self-pickup), and a greener, garden-like interior. In the first six months following its 2023 launch, sales reportedly increased by ~24% and customer counts by around 30% year-over-year, thanks to new experiential offerings, including a premium wine bar accessible via a booking system. The “living hall” features everything to equip homes, from decoration items to beds (Tempur) and sports appliances (running mills).

The ground floor is dedicated to beauty, fragrance and accessory luxury brands, including Chanel, Hermès, Louis Vuitton, Gucci but also hard luxury names such as Cartier and Bulgari. Most of the top luxury brands operate multi-story stores with access to the first floor and, in some cases, also to the second floor. Despite relatively low ceilings, the area features an interesting design with centrally placed escalators (where Jacques Marie Mage sunglasses are sold) and a large atrium.

The first floor features luxury fashion, including foreign names (Golden Goose, Off-White) seen as a point of differentiation and coming on top of the high luxury brands, as well as watches and jewellery (Rolex, Buccellatti, Jaeger Lecoultre, etc..), complete with a luxury lifestyle offering (a large space facing Chanel is dedicated to Astier de Villatte). All brands are deploying their brand concept in three-walled retail units.

The second floor is dedicated to women’s fashion, featuring a mix of international and Korean brands, including Jacquemus, Loewe, Isabel Marant, and MMQ, alongside Colombo and Henri Beguelin. A multi-brand store, Mué, and a series of F&B spaces further enrich the floor.

On the third floor (+3), men's fashion is represented by Gucci and Dior, completed by a lifestyle offering (Bang & Olufsen, Tumi). The adjacency strategy aligns Theory with Zegna, Canali, and across from Solid, Time, and Ralph Lauren. The floor also features a golf wear section, catering to both men and women, with licensed brands such as Lanvin Blanc and APC Golf.  A café by Tom Dixon adds a touch of sophistication.

The fourth floor (+4) houses restaurants and home appliances.

VICs are the secret sauce at Hyundai Apgujeong

While execution is great, especially in the newly renovated B2 and B1, and keeping in mind that luxury represents a significant share of the business in this location, visiting the Apgujeong store is not as out-of-the-ordinary as The Hyundai Seoul (which has made experiential retail and discovery a cornerstone of its strategy) is. In addition, the store is small and feels as such: the six floors from B2 to 4F in total only represent 33,000 sqm, to be compared to the Hyundai Seoul store, the largest in Seoul, with 89,000 sqm of retail space.

And yet, even when taking these elements into account, the productivity of the store is remarkable: it has consistently outperformed the KRW 1 trillion threshold every year since 2021 (€0.6bn) and has been reported during the visit to have achieved a KRW 1.2 trillion performance in 2024 (€0.75bn), making it the 7th best performing store in the Korea in terms of sales (the first place being held by Shinsegae Gangnam with a turnover of €1.83 bn and the second by Lotte Jamsil, €1.8bn).

Many visitors scratched their heads to understand how such a store could achieve these levels of sales before realising the importance of the VIC business in Korea.

This customer segment, which often represents less than 5% of customers, generates around half of Korean department stores revenue. In a country where personal luxury goods spending reached KRW 21.8 trillion (€22bn) in 2022, nearly double since 2014, dependence on VICs has become structural and is a cornerstone of the business for some stores such as the Apgujeong one. With US$ 325 in luxury spending per capita, South Koreans rank ahead of Americans (US$ 289) and far ahead of Chinese (US$ 55).

Who are the VICs in Korea?

The pool of VICs rests on a solid wealth base: the country counts 7,310 ultra‑rich individuals (net worth ≥ USD 30 million) and nearly 1.15 million dollar millionaires, growing 5.6% per year. This increase contrasts with demographic erosion and explains the continued raising of thresholds for VIP programmes. Shinsegae, Lotte and Hyundai today recognise as VIP any customer spending at least KRW 4 million per year (€2,400), but their upper tiers now require up to KRW 150 million (€90,000) for Hyundai (“Jasmin Black”), KRW 120 million for Galleria (“PSR White”, €72,000) or KRW 70 million for Shinsegae (“Diamond”, €42,000).

Demographically, the VIC cohort has become younger. Those aged 20–39 accounted for less than 15% of big spenders in 2015; they form more than 30% in 2024 at Hyundai Pangyo, while several Shinsegae branches located in young‑household catchment areas exceed 40% VICs under 45. This generation shows high disposable incomes (KRW 60–80 million net annually), values “flex culture” and engages in ostentatious display on social media. The low birth rate amplifies this phenomenon: without heavy family burdens, discretionary budgets concentrate on luxury, travel and wellness.

Bain & Co identifies three structuring trends explaining the importance of these customers in Korean retail:

• An income polarisation and the rise in financial wealth despite macroeconomic stagnation,
• A generational extension, with Millennials & Gen Z representing half of the new entrants,
• The sophistication of programmes, which have moved from simple discount benefits to lifestyle, investment (money, art and jewellery) and international networking platforms.

By 2030, they anticipate 4–6% annual growth of the luxury market, but heavier loyalty costs (lounges, events, data analytics) that could push chains to monetise certain services or pool infrastructures.

A look at what a VICs can get in Korea…

VIC purchasing behaviour has evolved over the past ten years. Between 2015 and 2024, the VIP share of department store sales rose from about 25–30% to 43–51%, depending on the chain, despite the rise of e‑commerce. Average per‑capita spending grew by nearly 70%, driven by jewellery‑watch categories and by the resale market, now a vector of up‑trading. The pandemic acted as an accelerator: deprived of overseas shopping tourism, Koreans repatriated their spending to domestic flagships, forcing retailers to multiply private salons, food‑art‑wine events and logistical services (two‑hour delivery, express alterations).

Shinsegae cultivates scarcity: six VIP tiers, including “Trinity”, limited to the top 999 clients (> KRW 230 million per year, i.e. €138,000). Holders access the Trinity Lounge (Gangnam) and cobranded experiences with Michelin or Sotheby’s. The group bets on entertainment (Shinsegae Academy) and on heritage integration: “The Heritage”, a historic bank building transformed into a private club, blurs boundaries between retail, culture and investment. Result: VICs generate 45% of sales, with 3.7% more members in 2024, despite the increase in thresholds.

Lotte, conversely, has widened the base with an “Entry VIP” tier (KRW 20 million per year, €12,000) but tightened the top (“Avenuel Prestige” around KRW 280 million, €169,000). More than 5% of its clientele concentrates more than half of the sales. Young VICs are courted via boutique‑hotel vouchers, fine‑dining experiences and NFT‑Art masterclasses. Lotte also mobilises its ecosystem (Lotte Duty Free, Lotte Hotel) to offer a full value chain, particularly attractive for foreign customers whose share exceeds 10% in certain flagships.

Galleria positions itself in pure ultra‑luxury. Its Apgujeong hall, reconfigured in 2022, raised the VIC share to 51% of sales, a national record. The “G Premium/PSR White” programme (≥ KRW 120 million, €72,000) gives access to the country’s largest VIP Lounge: 2,000 sqm, panoramic view, art gallery and a cellar of 3,000 bottles.

Hyundai, on its side, adopts an experiential strategy. The Hyundai Seoul dedicates 40% of its area to event spaces; its “Black” and “Purple” lounges, accessible from KRW 150 million, include a monthly lifestyle programme (contemporary art, tastings, indoor golf). At Pangyo, those under 40 already make up a third of the super‑tier, with spending growth of +31% in 2024. Hyundai has also formed a cross‑services partnership with Hankyu (Japan) to offer, from 2026, reciprocal benefits to their VICs.

…and at Hyundai Apgujeong

At Apgujeong, Jasmin VICs and Black Jasmin VICs each have dedicated lounges, even on the rooftop, and access to the ultra-private Atelier bar overlooking the rooftop garden. The store is said to have become a gathering place for the wealthy of the area. During the visit, no one was particularly impressed by the lounges. And yet, to qualify, customers need to spend €42,000 for the Jasmin status and €94,000 for the Jasmin Black one.

However, what drives Apgujeong’s outsized sales is not the lounges themselves but the operating system behind them: priority allocation of constrained luxury SKUs (especially watches & high jewellery), appointment-based clienteling that pre-matches inventory to named clients, and reciprocity platforms that extend benefits (and allocation access) across partners abroad. In practice, top-tier members are offered previews and pre-orders, receive same-day alterations and white-glove delivery, and are routed to high-margin categories where ticket sizes compound—often closed inside private rooms with brand staff plus store client advisors. The VIP architecture (tiers, thresholds, lounges) is the front end; the economics come from supply control, client data, and partnership rails that ensure the right pieces reach the right clients at the right moment—consistently.

Seen through the lens of Hyundai Apgujeong, what sets Korea apart is not that a single store operates with ultra‑high thresholds for its top clients, but that an entire market does. Across Hyundai, Shinsegae and Galleria, top‑tier VIP cut‑offs now sit between roughly KRW 70 million and KRW 150 million a year, and these are transparent, published criteria, not opaque invitation‑only rumours. In isolation, Harrods or a top U.S. flagship may approach similar spend bands for their most rarefied clubs; in Korea, multiple chains systematise that bar nationwide and pair it with hard benefits (dedicated lounges, concierge teams, allocation access, and even reciprocity abroad through partners such as Hankyu and Sands China). That is the remarkable part: VIC economics are not a corner case—they are the operating system. In this system, Apgujeong’s “small but sharp” format—hard‑luxury heavy, relationship‑dense, and embedded in one of Seoul’s deepest wealth pools—makes perfect sense. It doesn’t need the theatrics of The Hyundai Seoul to outperform; it needs the right clients, the right inventory, and a membership architecture calibrated to very high spend by global standards—and in Korea, that architecture is market‑wide.

Credits: IADS (Selvane Mohandas du Ménil)

What: The rise of independent, educated Chinese women is reshaping luxury retail through new expectations for experience, authenticity, and digital engagement.

Why it is important: This shift reflects a broader transformation in luxury retail, where brands must prioritise cultural intelligence and digital innovation to remain relevant in China.

China’s “She Economy” is redefining the landscape for luxury retail, as a new generation of independent, highly educated women exerts growing influence over purchasing decisions. These consumers are not only more selective but also expect brands to deliver authentic experiences, personalized engagement, and seamless digital integration. Luxury brands are responding by recalibrating their strategies, focusing on emotional connections, immersive store formats, and value-driven offerings that resonate with the evolving aspirations of Chinese women. The emphasis on empowerment and self-expression is prompting brands to rethink their messaging, invest in creative collaborations, and adopt more sustainable and inclusive practices. Digital platforms and social media play a pivotal role in shaping brand-consumer relationships, enabling deeper engagement and fostering loyalty among this influential demographic. As a result, the luxury sector in China is witnessing a shift from traditional marketing and rapid expansion to a more nuanced approach centred on cultural relevance, innovation, and long-term value creation.

IADS Notes: The evolution of China’s “She Economy” is fundamentally reshaping the luxury retail landscape, as highlighted by Bain & Company in February 2026, which noted that Chinese consumers are increasingly selective and buying domestically. This shift is prompting both local and global brands to focus on emotional connections, experiential retail, and value-driven offerings, with cultural intelligence and personalized engagement becoming essential, as reported by WWD in January 2026. The move away from rapid expansion toward immersive, innovative store formats and digital integration was further emphasised by Inside Retail in October 2025, underscoring the importance of deeper customer engagement. Fashion Network in November 2025 revealed that luxury brands are prioritising creative collaborations, sustainability, and long-term investment, reflecting a broader trend of value-driven engagement. Finally, The Economist in January 2026 documented the global expansion of Chinese brands, demonstrating the sector’s adaptability and the critical role of business model innovation and cultural relevance in achieving sustainable growth.

The new rules of desirability: inside China’s she economy