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

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

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

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

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

The business of second-hand clothing is booming

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The French department store Printemps is making a bold leap into the U.S. market by opening its first American outpost in Manhattan’s Financial District. After four years in the making, the 2-story, 4,000 square meter location at One Wall Street opened last 21st of March (on Spring Day, which means Printemps in French). Interestingly, it is not advertised as a store but as an immersive luxury experience, blending fashion, gastronomy, and hospitality.

With around one-tenth of the Paris Haussmann flagship store surface, Printemps aims to challenge the traditional department store model by focusing on experiential retail, offering visitors a space to linger, discover and indulge. Also, the opening of Printemps, a new retailer name for US consumers, is expected to contribute to the renewal of the Financial District, introducing a new luxury shopping option in NYC. Advertised as “not a department store” on local cabs and billboards, Printemps is a very ambitious project. What is it all about? Many retailers have bit the NYC dust in the past. What is Printemps’ plan to differentiate, in a crowded market, to oversollicited customers?

It starts with the real estate

One Wall Street: from New York landmark…

One Wall Street is an architectural and historical gem that has played a prominent role in New York City's skyline since its construction in the early 20th century. Originally built as the headquarters of the Irving Trust Company, the building was completed in 1931. At the time, it was one of the tallest buildings in the Financial District, standing at 199 meters and 50 stories tall. One Wall Street is most famous for its stunning Art Deco interiors, particularly the Red Room, a large reception hall embellished with over 2.5 million red and gold mosaics designed by artist Hildreth Meière. The space was initially conceived as a banking hall meant to impress clients and reinforce the prestige of the Irving Trust Company. A 35 story annex was added to the original building in 1965.

Over the decades, One Wall Street has changed hands several times, reflecting shifts in the financial industry. After serving as Irving Trust's headquarters, the building became home to the Bank of New York Mellon, following a series of banking mergers and acquisitions. In 2014, the building was acquired by Macklowe Properties for USD 585 million (and backed by Dilmon LLC, the family office of Qatar’s Sheikh Hamad bin Khalifa Al Thani) to embark on a massive redevelopment project to convert the office tower into a luxury residential and retail destination. Macklowe then secured a USD 750 million construction loan from Deutsche Bank in 2018 to fund the project.

… to a mixed-use destination with problems

Besides Printemps, One Wall Street offers local residents a 4,000-square-meter Whole Foods grocery store and a 5,000-square-meter Life Time wellness and fitness club. The project also boasts 9,000 square feet of resident amenities, including a private dining room and a pool.

Estimated to be a USD 1.5 billion project, the building repurpose is the largest office-to-residential conversion in NYC history. It also illustrates a significant shift in the Financial District as it transforms into a more family-friendly residential area, with ongoing office conversions, high-end retail, and cultural attraction openings, including the Perelman Performing Arts Center. On the corporate side, a new breed of companies have been settling down: tech companies, media companies such as Condé Nast and up-and-coming fashion labels like Theophilio, Rosie Assoulin and Bode. These changes will contribute to making the Financial District more lively and generating traffic.

However, as of November 2024, One Wall Street has faced significant challenges, with sales figures far from expectations. Out of 566 available units, only 113 had been sold since sales began in 2021 for USD 230 million, representing 14% of the anticipated USD 1.7 billion in sales. In 2022, developers were already looking for a USD 1.1 billion loan to help refinance the project. In 2023, in response to these slow sales, Macklowe secured a USD 300 million inventory loan from Deutsche Bank to manage the unsold units. Macklowe dumped two sales brokerages and now markets the units with his team.

One Wall Street is not the only project facing issues in the Financial District, as new residents are not flocking quickly. In addition to numerous rentals, the area has more than 220,000 condo units, with thousands unsold despite the median price dipping from USD 1.275 million in the second quarter of 2023 to USD 985,000 in the third quarter of 2024.

New York, New York: if I can make it there

From Galeries Lafayette and others…

New York has always been a retail magnet. Galeries Lafayette previously attempted to establish a presence in NYC. In 1991, they opened a store in Trump Tower on Fifth Avenue. After a promising debut, customers considered the store too French and complained that the supposedly exclusive brands were not. The targeted USD 65-70 million turnover could never be achieved, only reaching USD 24 million in sales in 1993. With high operating costs and stiff competition, losses peaked at 97 million in 1992 and 93 million in 1993. The store closed in November 1994. Other foreign retailers entered the U.S. and eventually shut down: Takashimaya, Topshop, Tesco, Carrefour and Joe Fresh.

… to Printemps

Luxury has never thrived in the Financial District in the past. Big names failed: Saks Fifth Avenue and Milan’s 10 Corso Como both left the area after less than five years, though Tiffany & Co. and Hermès opened stores on Wall Street in the past decade. Located close by, the Brookfield Place mall houses Gucci, Bottega Veneta, Louis Vuitton and Zegna. Also illustrating the area evolution, other high-street retailers are available close to One Wall Street: Zara, Anthropologie and Urban Outfitters.

Printemps didn’t disclose how much turnover the store is expected to generate, but CEO Jean-Marc Bellaiche says they have a “reasonable business plan.” Printemps bets on 150,000 people entering the store daily and targets local residents with a household income estimated at USD 170,000. Commuters and visitors from out of town are also targeted but should not account for the most significant chunk of customers. Echoing the new Selfridges’ loyalty programme, which rewards purchases and time spent using the store services and amenities (such as the skateboard room and the cinema, for example), Printemps says they will measure success in terms of the time customers spend in-store, not only in terms of sales per square foot. However, is this strategy relevant enough to generate the necessary volumes to make the store viable? They give the store two seasons to know if it’s a success or not.

When it comes to finances, Printemps has a special link with the building as the department store is owned by the Qatari-backed investment fund Divine Investments SA, which is supported by Dilmon LLC, a company financing the project along with Macklowe. As a result, it’s most likely that Printemps’s rent is very low or close to nothing. Low rent will certainly be necessary to help compensate for other significant costs as described in Vogue Business: “Printemps will own the products that are sold there. Printemps will employ the people who work there. […] It’s both an experiment and a gauntlet thrown.” Not to mention the cost of building this ultra-luxurious store concept.

Finally, Printemps wants to develop its e-commerce presence in the U.S. The company has launched a dedicated U.S. website to complement the store opening, us.printemps.com. This platform will be designed to provide American customers with access to Printemps' curated luxury offerings, aligning with its strategy to create a seamless omnichannel experience locally.

Don’t call it retail, but hospitality

Design and interior aesthetics

Parisian architect Laura Gonzalez was in charge of the store's interior. Shoppers will encounter mirrored walls, marble staircases, lavish hardwood floors and intricate detailing that echo the brand's Parisian flagship, as well as vintage furniture that is all moveable and for sale. The landmarked Red Room has been transformed into a beautiful shoe salon with a forest of “trees” lighting up footwear displayed on circular onyx tables. It is an impressive introduction to the store.

Printemps New York is not designed to be a conventional department store. Instead, Bellaiche describes it as a “hospitality project” where “French sophistication and curation meets American hospitality,” that encourages visitors to spend time inside rather than rush through quick purchases.

Inspired by a Parisian apartment and dubbed an “apartment store” by Thierry Prevost, General Manager of Printemps America, the store is divided into ten uniquely designed rooms, each offering a distinct shopping experience. The Boudoir houses eveningwear in a gold and lacquered ambiance, while La Garçonnière (translating to bachelor pad) houses menswear, and the Playroom features casualwear, gifts, and sneakers displayed under an LED ceiling that changes visuals (Nike takeover at the time of the opening). The Salle de Bain beauty and spa area, with four beauty cabins, offers luxurious treatments such as facials and nail services, reinforcing the store’s hospitality-driven approach.

Curated offerings

The store doesn’t advertise itself as a concept store even though it could be considering its surface, its layout and its interior designs. The store will sell men’s and women’s ready-to-wear, casual wear, outerwear, vintage, active, accessories, beauty, wellness and gifts. Unlike traditional department store layouts and the usual branded shop-in-shop model in fashion or beauty departments, Printemps NYC favours a multi-brand, curated selection of luxury goods from 450 established brands and niche labels landing in NYC for the first time. Dior, Manolo Blahnik, Valentino, Maison Margiela, JW Anderson, Jacquemus, Jean Paul Gaultier, Manolo Blahnik, Aquazzura, Balenciaga, Nike, Acne Studios, Simone Rocha, Carven, Jil Sander and Bottega Veneta are among the roster of brands, which will be completed by niche brands such as Vautrait, Le Monde Beryl, Corsi Design, Aeyde and Magda Butrym as well as small and artisanal French brands such as Joseph Duclos, Pinel & Pinel and Capulette. Big names such as Louis Vuitton are missing. As a result, the store offers a mix of exclusive items from high-end brands, artisanal products and vintage offerings. Additionally, Printemps integrates its private label, Saison 1865. Encouraging circularity, the Atelier & Repair service offers customers options beyond standard retail transactions.

It’s unsure whether these offerings will be enough to lure the affluent customers the store is targeting. But the mix of highs and lows indeed adds flair to the store. Printemps is not the only department store looking to behave more like an independent multi-brand store. Many luxury department stores try adding flair to the succession of shop-in-shops, thanks to curated multi-brand areas meant to differentiate and demonstrate the specific store's taste. For example, this is the case with L’Endroit and Le Market in Printemps and la Creative Galerie in Galeries Lafayette, in their Paris's Boulevard Haussmann flagship stores.

Finally, to differentiate from the department store’s traditional layout, one of the first contact points for shoppers will be a café, a similar strategy seen at the Boyner’s Cadde store, which has a Costa Coffee right at the entrance. Also, similar to the Printemps Haussmann store, a gift section featuring cheaper items such as candles will be featured at the store entrance.

Culinary experiences and events 

Now integral to any elevated retail experience, food offerings have become a department store staple. Research by Harrods showed that when customers engage with their 26 restaurants and bars, they spend twice as long in the building and twice as much money. Printemps follows a similar strategy and dedicates a third of the shop floor to F&B offerings. They have appointed Chef Gregory Gourdet as its culinary director who created five different concepts for the store: an all-day casual café, a classic Parisian-inspired raw bar called Salon Vert, the Red Room Bar for cocktails, and The Champagne Bar. There is also a French wine shop. However, the most critical F&B option is undoubtedly the Maison Passerelle restaurant. It aims for a Michelin star and is considered one of the 10 most important restaurant openings in NYC in 2025. It is instrumental to the strategy, and bookings are said to be already flooding in. Fine dining is increasingly vital to department store success: El Corte Inglés also successfully opened a Michelin star restaurant, RavioXO, in Castellana stores in 2022.

Beyond fashion and dining, Printemps integrates culture into its retail experience. The store will host curated events, brand takeovers (Jacquemus at the time of the opening), and even meditation sessions, further positioning itself as a destination rather than just a place to shop. With a focus on retail-tainment, Printemps hopes to fill the void left by Barneys New York and Jeffrey, former fashion landmarks that once led the city’s luxury shopping scene.

Printemps certainly plays by the book and ticks many boxes of what a department store is nowadays: a beautiful store concept, F&B options, a curated multi-brand offer, services and events, all with a Parisian flair that New Yorkers will probably like.

The story of One Wall Street and Printemps’ arrival in the Financial District is emblematic of a broader transformation in urban retail and real estate. As traditional office spaces become increasingly obsolete in a post-pandemic world, developers and retailers alike reimagine the possibilities of mixed-use destinations. One Wall Street’s conversion reflects this shift, blending residential and retail to attract affluent buyers.

Yet, with sluggish condo sales and a volatile retail market, Printemps’ long-term viability remains uncertain. Will Printemps and One Wall Street rewrite the narrative, or will they become yet another cautionary tale in the city’s high-stakes retail experiment? As stated in the Financial Times by Neil Saunders, managing director of Global Data, “they are definitely launching at a challenging time. Consumers are becoming a little more reluctant, the luxury market is a lot softer than it has been, and the environment is very competitive. That said, there is a case to have something else that’s a bit different. There is an opportunity for them to carve out a niche, but it won’t necessarily be easy.” Only time will tell, but one thing is sure: nothing is ever static in New York, and reinvention is the game's name.

Credits: IADS (Christine Montard)

What: Southeast Asian markets face significant investor pullback amid 18% decline in Jakarta's composite index and widespread currency depreciation, reflecting growing regional economic uncertainties.

Why it is important: This market response represents a key moment in Southeast Asia's retail evolution, testing the resilience of major investments like the USD 3.2 billion One Bangkok project and USD 665 million Central Retail digital transformation amid changing investor sentiment.

Southeast Asia's financial markets are experiencing significant turbulence, with Indonesia's Jakarta composite index plummeting 18% since mid-September 2024, including a dramatic 5% single-day drop that triggered trading suspension. Thailand's SET index faces similar challenges, with both countries' currencies weakening against major international currencies. This market volatility stems from a complex interplay of domestic and external factors. Internally, Thailand grapples with a struggling export-oriented economy and questionable stimulus measures, while Indonesia confronts weakening consumer purchasing power, corporate bankruptcies, and governance challenges at state-owned enterprises. The new Indonesian government's creation of a super-holding investment fund and tax revenue shortfalls have further eroded investor confidence. External pressures, particularly global trade disputes and economic uncertainty, are prompting investors to seek safer, more liquid assets in established markets. This shift reflects a broader trend of capital outflow from emerging markets during periods of heightened global risk, though the impact varies across the region's economies.

IADS Notes: Recent market data provides crucial context to the current investment climate in Southeast Asia. In March 2025, while the Jakarta composite index's 18% decline and Thailand's market contraction signal immediate challenges, the underlying retail sector shows a more nuanced picture. Central Retail's USD 665 million investment in AI integration (February 2024) and MM Mega Market's USD 20 million Vietnam expansion (November 2024) demonstrate continued confidence in the region's potential. The USD 3.2 billion One Bangkok project (October 2024) exemplifies Thailand's emergence as a luxury retail hub, even as the broader market faces headwinds. Vietnam's projected retail market growth to USD 350 billion by 2025 suggests that investors are taking a longer-term view despite current market volatility. This aligns with the broader trend of strategic adaptation, as evidenced by the region's increasing omnichannel penetration and tourism-driven recovery, indicating that while investors may be recalibrating their approaches, they are not fundamentally retreating from Southeast Asian markets.

Are investors pulling out of Southeast Asia?

What: A faulty security software update triggered the largest IT outage in history, affecting 8.5 million devices and exposing retailers' dependence on third-party technologies.

Why it is important: This incident reveals how non-malicious technical failures can cause more financial damage than cyberattacks, forcing retailers to reassess their technology dependency and disaster recovery strategies.

The Crowdstrike Falcon update incident of 2024 marked an unprecedented disruption in global retail operations, resulting in a staggering USD 5.4 billion in losses for Fortune 500 companies alone. This non-malicious technical failure affected 8.5 million Windows devices worldwide, disrupting essential retail operations from payment processing to inventory management. The incident's significance lies not just in its immediate impact but in its revelation of how deeply integrated third-party software has become in retail operations. While Crowdstrike's anti-malware solution typically protects against threats, this incident demonstrated that the same mechanisms enabling rapid security updates could also become vectors for system-wide failures. The retail sector's response highlighted a crucial paradox: while technology dependency creates vulnerabilities, it remains essential for modern retail operations. The incident has prompted a fundamental shift in how retailers approach technology risk management, emphasising the importance of rapid recovery capabilities over complete risk avoidance. This event serves as a watershed moment for the industry, demonstrating that resilience in modern retail requires both technological advancement and robust contingency planning.

IADS Notes: The Crowdstrike outage of March 2025 represents a watershed moment in retail technology vulnerability, echoing several significant incidents from the past year. In November 2024, the Blue Yonder ransomware attack demonstrated how third-party software disruptions can paralyze retail operations, affecting 3,000 retailers worldwide. The ripple effects of such incidents were further illustrated in March 2025 when El Corte Inglés faced a major data breach through an external provider, while El Palacio de Hierro's payment system disruption in August 2024 showed how even routine server updates can severely impact customer transactions. The complexity of retail technology integration was highlighted by Asda's USD 21 million inventory discrepancy during their SAP implementation in October 2024. However, success stories like Stripe's handling of USD 31 billion in Black Friday transactions while blocking nearly 21 million fraudulent attempts in December 2024 demonstrate that robust technology infrastructure and preparedness can effectively manage large-scale operations. These incidents collectively underscore the article's emphasis on the critical importance of rapid recovery capabilities and comprehensive contingency planning in modern retail operations.

How retailers can protect against costly IT outages and cyber disruptions

What: Amazon defies social media boycott with 1% sales increase during the February 28th protest, demonstrating the platform's resilience and the gap between online activism and actual consumer behaviour.

Why it is important: This development underscores the challenge of translating social media movements into meaningful economic impact, particularly against platforms that have successfully integrated themselves into consumers' shopping habits.

Amazon's resilience during a planned February 28th boycott reveals the growing disconnect between social media activism and actual consumer behaviour. Data from Momentum Commerce shows transactions rose 1% compared to typical Friday patterns, with early-day performance reaching 6.8% above average before moderating in the afternoon. The e-commerce giant's ability to maintain sales growth during the protest highlights the platform's deeply embedded role in consumer shopping habits. While the People's Union USA plans additional boycotts, including a week-long action specifically targeting Amazon from March 7-14, the initial results suggest that transforming social media campaigns into significant economic impact remains challenging. The data demonstrates how established e-commerce platforms can withstand short-term consumer activism, raising important questions about the effectiveness of such protests in influencing shopping behaviour.

IADS Notes: Amazon's performance during the February 2025 boycott aligns with its demonstrated market resilience throughout 2024. In December 2024, the company achieved record-breaking holiday sales, with global online transactions reaching $74.4 billion despite economic challenges. This was followed by dominant performance in European markets, as evidenced by its Christmas 2024 success in France. The platform's ability to maintain growth during social pressure periods reflects its successful adaptation to changing consumer behaviors, supported by robust data analytics and strategic expansion into new retail segments.

Amazon defies ‘economic blackout’ as sales climb during boycott

What: Consumer spending patterns face imminent transformation as Trump's 25% tariffs on Canada and Mexico, plus 10% on Chinese goods, threaten to reshape retail pricing and shopping behaviour.

Why it is important: The convergence of tariffs with existing inflation concerns signals a transformative moment in consumer behaviour, pushing retailers to restructure their operations while creating opportunities for alternative retail channels like secondhand and off-price.

The imminent implementation of Trump's tariffs is creating significant anxiety in the US retail market, with consumers and brands alike preparing for substantial changes. The comprehensive tariff package includes 25% duties on Canadian and Mexican imports, alongside an additional 10% tariff on Chinese goods, all set to take effect next week. Consumer sentiment has already responded, with 62% expressing concern about rising apparel costs due to new trade policies. The Conference Board's Consumer Confidence Index reflects this anxiety, showing its largest monthly decline since August 2021.

The impact extends beyond immediate price concerns, as retailers anticipate shifts in shopping behaviour. Industry experts predict a two to three-month lag before consumers feel the full effect of tariff increases, as retailers work through existing inventory and gradually adjust prices to maintain market stability. The changes are expected to particularly affect full-price fashion brands targeting aspirational consumers, while luxury brands may remain relatively insulated. Alternative retail channels, including fast fashion, off-price retailers, and secondhand markets, are positioned to benefit as consumers seek more affordable options.

IADS Notes: The current consumer anxiety about Trump's tariffs reflects significant market developments throughout 2024 and early 2025. In January 2025, BCG projected that a 60% tariff on Chinese goods would add USD 640 billion to US import costs, fundamentally reshaping retail economics. This concern has already manifested in concrete policy changes, with February 2025 seeing the elimination of the USD 800 de minimis rule, affecting millions of daily shipments and forcing retailers to restructure their operations. The impact extends beyond direct cost implications; October 2024 port strikes disrupted over 100,000 shipping containers, compelling retailers to adopt more agile supply chain strategies. Companies are actively responding, as evidenced by Shein's February 2025 initiative offering 30% higher procurement prices to manufacturers willing to relocate to Vietnam. Consumer confidence has responded accordingly, with the Conference Board's index showing its largest decline since August 2021, reflecting broader market anxiety about potential price increases and economic uncertainty.

How will consumers respond to Trump’s tariffs?

What: China prioritises consumer spending over technology development in its 2025 economic strategy, introducing a YEN 300 billion stimulus package to boost domestic consumption.

Why it is important: This strategic pivot reflects China's recognition that balanced economic growth requires stronger domestic consumption, particularly as household spending remains 20 percentage points below global averages and international trade tensions persist.

China's government has announced a significant shift in its economic priorities for 2025, elevating consumer spending above technology and industrial production in its national agenda. Premier Li Qiang's parliamentary report outlined a "special action plan" to boost consumption and domestic demand, supporting a target of roughly 5% growth. This strategic reorientation is evidenced by the term "consumption" appearing 31 times in the report, compared to 28 mentions of "technology." The government plans to issue ultra-long special treasury bonds valued at 300 billion yuan to support an expanded trade-in scheme for various consumer goods. This initiative represents a departure from previous hesitancy to implement direct consumer stimulus measures. The policy shift addresses a significant imbalance in China's economy, where household spending comprises less than 40% of annual economic output, approximately 20 percentage points below global averages. While technology remains important, particularly in areas like AI and quantum computing, the focus has clearly shifted towards encouraging consumer expenditure.

IADS Notes: This policy shift builds upon evolving retail trends in China, where January 2025 data showed retail sales reaching YEN 44.2 trillion alongside 230 million consumers embracing AI-powered retail solutions. The transformation of retail spaces, with major cities allocating 16% to entertainment zones, demonstrates the market's readiness for increased consumer focus. Early 2024 performance showed promising signs with a 5.5% year-on-year increase in retail sales and 15.3% surge in online transactions, while December 2024 data revealed stronger growth in rural areas, suggesting the potential effectiveness of these new consumer-focused policies.

China shifts focus to consumer spending over technology amid economic concerns

What: A large-scale study of 776 Procter & Gamble professionals reveals that AI-enabled teams outperform traditional work groups, with individuals using AI matching the performance of two-person teams while reducing work time by 12-16%.

Why it is important: These findings provide a concrete blueprint for retailers seeking to optimise their workforce, as the industry grapples with implementing AI solutions that have already shown 15-30% efficiency improvements in customer service operations.

The comprehensive study of P&G professionals demonstrates AI's transformative impact on team dynamics and productivity in knowledge work. The research reveals that individuals working with AI can match the performance of traditional two-person teams, while AI-enabled teams achieve the highest overall performance, particularly in producing exceptional solutions ranking in the top 10% of quality. The study also shows that AI effectively bridges professional silos, enabling both technical and commercial specialists to produce balanced solutions regardless of their background. Notably, less experienced employees working with AI performed comparably to experienced teams, suggesting AI's potential to democratise expertise. The emotional impact was equally significant, with AI users reporting higher levels of positive emotions and lower levels of anxiety and frustration. These findings, based on real-world product development tasks with actual business stakes, provide valuable insights into how AI can enhance both individual and team performance while improving the overall work experience.

IADS Notes: The study's findings align with significant retail industry developments throughout 2024-2025. As reported in February 2025, 87% of retailers implementing AI witnessed revenue increases of 6% or more, while customer service operations showed 15-30% efficiency improvements. The democratisation of expertise was particularly evident in retail applications, with AI-tool-directed traffic increasing 304% year-over-year. However, implementation challenges persist, as only 10% of companies successfully scale their AI applications, though those who do report 50% reduction in administrative tasks and 30% faster development with properly supervised systems.

The Cybernetic Teammate

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

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

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

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

The CEO’s guide to delivering despite uncertainty in 2025

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

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

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

IADS Notes:

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

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

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

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

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

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

What: India's luxury market undergoes fundamental transformation as 43% of luxury consumers emerge from non-metro cities, driving brands to adopt integrated physical-digital approaches while emphasizing pre-owned goods and cultural authenticity.

Why it is important: This shift represents a pivotal moment in global luxury retail, as India's projected $2 trillion retail market by 2033 and growing affluent consumer base of 100 million by 2027 create unprecedented opportunities for brands willing to adapt their strategies.

India's luxury retail landscape is experiencing a significant transformation, with 43% of luxury consumers now residing outside traditional metro cities. This shift is driving major brands like Bvlgari to adopt innovative "phygital" approaches, combining online presence through platforms like Tata Cliq Luxe with strategic physical retail in emerging markets. The pre-owned luxury segment presents another significant opportunity, particularly in watches and handbags, where cities like Ajmer and Bhubaneswar show strong demand. Cultural storytelling emerges as a crucial factor, with successful examples including Bvlgari's mangalsutra and Dior's partnership with the Chanakya School of Craft. The report emphasizes the importance of authentic cultural integration, as demonstrated by collaborations featuring Indian celebrities like Priyanka Chopra and Ayushmann Khurrana, and the success of initiatives that blend Indian traditions with global luxury.

IADS Notes: The transformation of India's luxury market is supported by significant developments throughout 2024-25. February 2025 saw 27 new international brands enter India, while Bulgari's expansion to nine key cities demonstrated the viability of integrated retail approaches. Barclays projects 15-25% annual growth through 2030, supported by an affluent consumer base expected to reach 100 million by 2027. The importance of cultural integration is highlighted by India's ranking as the most attractive emerging market, while the projected $89 billion in global retail spending by Indian tourists suggests the growing influence of Indian consumers in global luxury retail.

3 opportunities for brands eyeing India’s luxury market

What: Luxury brands must recalibrate their cultural strategy as excessive accessibility threatens their exclusivity and long-term desirability.

Why it is important: The success of brands like Hermès and Brunello Cucinelli  demonstrates how controlled distribution and authentic philosophy can outperform trend-chasing strategies.

The luxury industry faces an existential crisis as brands struggle to balance cultural relevance with traditional exclusivity. Major houses like Louis Vuitton and Gucci have become predictable through endless collaborations and digital initiatives, diluting their mystique in pursuit of younger audiences. The democratising effect of social media has fundamentally altered how luxury generates desirability, challenging traditional brand-building tools. However, some houses have successfully navigated this paradox: Hermès maintains its allure through controlled distribution, Bottega Veneta has withdrawn from social media to preserve exclusivity, and Brunello Cucinelli has built a distinctive philosophy around humanist capitalism. This emerging "post-democratic luxury" operating system emphasises cultural discernment over mere participation, suggesting a return to intentional rarity and authentic brand storytelling. The future of luxury may lie not in chasing every cultural moment but in creating sustainable desirability through controlled scarcity and genuine brand values.

IADS Notes: Recent market data reveals a significant transformation in luxury retail strategy. While global luxury spending faces a projected 2% decline in 2024 , successful brands like Brunello Cucinelli have thrived through exclusive experiences and limited-production offerings . This contrasts with the challenges faced by brands pursuing broad cultural relevance, as evidenced by Louis Vuitton's struggle to maintain exclusivity while chasing growth . The emergence of "post-democratic luxury" is further supported by the success of ultra-exclusive experiences targeting high-net-worth individuals , suggesting a fundamental shift away from digital omnipresence toward controlled scarcity.

The paradox of cultural currency in luxury strategy

What: Southeast Asia's economic performance in Q4 2024 shows regional stability amid external challenges, with Vietnam leading at 7.55% growth while maintaining robust retail and tourism sectors.

Why it is important: The varied performance across markets highlights opportunities for retail expansion, with Vietnam's retail market projected to reach USD 350 billion by 2025 and Thailand emerging as a luxury retail powerhouse.

Southeast Asian economies demonstrated remarkable resilience in the fourth quarter of 2024, with most countries achieving growth rates of 5% or higher. Vietnam led the region with an impressive 7.55% expansion, while Thailand's growth accelerated to 3.2%. The region's core growth drivers remained steady, with particularly strong investment flows and stable consumption patterns. Private consumption showed resilience across most markets, supported by improving labour markets and moderating inflation. The retail sector's transformation was evident through significant developments, including major infrastructure projects and digital integration initiatives. Tourism recovery played a crucial role in driving growth, especially in Thailand and Singapore, where retail sales showed strong correlation with visitor arrivals. Despite these positive indicators, regional currencies faced pressure against the US dollar, prompting several central banks to implement strategic rate adjustments to maintain economic stability.

IADS Notes: Recent developments underscore Southeast Asia's retail transformation. In February 2024, Central Retail announced a USD 665 million investment in AI integration and ecosystem development, while November 2024 saw MM Mega Market commit USD 20 million to Vietnam's expanding market. Thailand's emergence as a luxury retail hub was evidenced by the USD 3.2 billion One Bangkok project in October 2024, while Singapore's January 2025 retail performance showed strong digital integration with online sales reaching 13.3% of total revenue. These investments reflect growing confidence in the region's retail potential, despite varying market conditions.

Southeast Asia quarterly economic review: Steady amid uncertainty

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

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

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

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

How a global trade war could rewire the way fashion operates

What: US consumer confidence hits a three-year low in February 2025, with significant concerns about inflation, tariffs, and recession prospects, despite slight improvements in current business conditions and stable income expectations.

Why it is important: The contrast between current business conditions and future expectations highlights a critical juncture in consumer sentiment that could reshape retail spending patterns and force strategic adaptations across the industry.

Consumer confidence has plunged to its lowest level in over three years, reflecting growing unease about various economic conditions affecting household finances. The Conference Board Consumer Confidence Index's February decline of 7 points to 98.3 marks the third consecutive monthly decrease and the largest single-month drop since August 2021. While current business conditions showed slight improvement, consumers' outlook for the next 6-12 months has weakened considerably. Inflation expectations have surged from 5.2% to 6.0%, and the share of consumers expecting a recession has reached a nine-month high. The impact of tariffs is particularly concerning, with two-thirds of consumers anticipating price increases on typical purchases, though younger consumers show more willingness to wait and see. Despite these concerns, income expectations remain positive, suggesting potential continued spending in the near term, though with more selective and value-conscious purchasing behavior.

IADS Notes: The February 2025 consumer confidence decline reflects broader market challenges identified throughout recent months. As reported in February 2025, Trump's tariff announcements triggered significant consumer anxiety, with confidence indices showing their sharpest decline since 2021 . This concern is well-founded, as March 2025 analysis projects annual household costs increasing by USD 1,200 due to tariffs, with specific sectors facing price increases ranging from 0.81% to 1.63% . While January 2025 data showed potential for global economic growth at 2.8% , recent evelopments have dampened this outlook, with March 2025 data showing 62% of consumers expressing serious concerns about rising retail prices .

Major retailers are actively responding to these challenges, as evidenced by Macy's March 2025 announcement of aggressive store optimization and supply chain restructuring . This convergence of tariff pressures, consumer anxiety, and retail adaptation suggests a fundamental shift in market dynamics, requiring retailers to carefully balance pricing strategies with consumer sensitivity to cost increases. The situation is particularly complex given the varying responses across age groups and income levels, indicating the need for nuanced approaches to different consumer segments.

Few silver linings in the consumer mood as Americans grow more gloomy

What: BCG's annual survey reveals growing disconnect between UK business leaders' company-specific optimism and broader economic concerns for 2025.

Why it is important: This divergence in sentiment could impact pricing strategies and consumer spending patterns, particularly as 75% of businesses plan price increases.

The BCG survey reveals 83% of business leaders expressing confidence in their own prospects despite growing concerns about the broader economy. Companies demonstrate resilience through maintained employment plans and increased technology investment, while facing challenges from rising costs and tax pressures. The survey indicates 75% of businesses plan price increases, though at a lower rate than previous years, with 41% focusing on cutting non-essential costs. Only 13% plan to halt investment, and there's increased interest in technology adoption. This measured approach reflects a pragmatic response to market challenges while maintaining growth initiatives. The findings suggest businesses are adapting their strategies to navigate economic uncertainties while preserving operational momentum.

IADS Notes: Recent market analyses from January 2025 show global economic growth projections of 2.8% , providing context for UK business sentiment. This aligns with trends seen in the retail property sector, where Hammerson reported a 4.2% increase in UK mall values  in March 2025, suggesting underlying market strength despite challenges. However, February 2025 data indicates declining consumer confidence , creating a complex operating environment for retailers balancing growth ambitions with market realities.

State of UK business 2025: confidence at a crossroads

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

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

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

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

AI-powered shopping growing dramatically, Adobe reports

What: Temu's ultra-low pricing strategy relies on a sophisticated Consumer-to-Manufacturer model and customs loopholes, enabling unprecedented market penetration but facing mounting regulatory challenges.

Why it is important: The success and challenges of Temu's pricing model represent a pivotal shift in global retail, demonstrating how digital platforms can bypass traditional supply chain costs while prompting regulatory responses that could reshape cross-border e-commerce.

Temu, the international arm of Chinese e-commerce giant Pinduoduo, has emerged as a formidable player in global retail through its innovative pricing strategy. Within just two years, the platform has achieved remarkable success, ranking fifth in France's online commerce and second globally. At the core of Temu's competitive advantage is its Consumer-to-Manufacturer model, which employs reverse auctions to secure the lowest possible prices from manufacturers. This approach, combined with a consigned inventory system, eliminates traditional storage costs and financial burdens for the platform. The company's success stems from its parent company Pinduoduo's established practices in China, where it has amassed 694 million users through group-buying features and strategic targeting of underserved market segments. Unlike traditional marketplaces, Temu generates revenue through logistics and marketing services rather than sales commissions, enabling its ultra-competitive pricing. However, this model faces increasing scrutiny, particularly regarding customs regulations and market practices, as evidenced by recent regulatory changes in major markets.

IADS Notes: Recent developments have significantly impacted Temu's business model and market position. In November 2024, Amazon launched its "Haul" platform in direct response to Temu's pricing strategy, while regulatory pressures intensified with the EU's implementation of stricter platform liability rules in February 2025. The elimination of the USD 800 de minimis rule in the US particularly threatens Temu's cost advantage, which has been central to its rapid growth. These challenges coincide with Forrester's October 2024 prediction of declining growth rates, suggesting that Temu's ultra-low pricing model faces mounting obstacles. The company's struggles in Southeast Asia, exemplified by its December 2024 suspension in Vietnam, further highlight the increasing scrutiny of its business practices. This evolving landscape indicates that while Temu's innovative approach to pricing and supply chain management has disrupted traditional retail, its long-term sustainability depends on adapting to stricter regulatory environments and intensifying competition.

The secret behind Temu’s rock-bottom prices

What: Global trade policy shifts are compelling retailers to revolutionise their operations through technology adoption, focusing on AI-driven solutions for cost management and supply chain resilience.

Why it is important: The scale of trade policy changes, affecting 44% of US imports, demands unprecedented operational adaptation, making technological innovation no longer optional but essential for maintaining competitive advantage in global retail.

The retail industry faces a transformative challenge as new tariffs threaten to disrupt established supply chains and operational models. Advanced supply chain solutions are emerging as critical tools, enabling retailers to rapidly integrate enterprise-wide data and assess country-specific risks. Through AI-powered analytics and predictive modeling, companies can now pinpoint high-risk SKUs and proactively adjust their strategies to maintain profitability. The integration of real-time simulation capabilities for multiple tariff scenarios has become a competitive necessity, allowing businesses to analyze duties, evaluate alternative vendors, and automate pricing adjustments swiftly. This technological evolution extends beyond immediate operational concerns, encompassing sophisticated risk management strategies that address both current challenges and future uncertainties. The industry's response demonstrates a clear shift towards data-driven decision-making, with retailers leveraging AI to optimise supply chain efficiency, balance inventory, and ensure product availability despite tariff challenges.

IADS Notes: The retail industry's response to tariff pressures has accelerated significantly in early 2025. As reported in March 2025, retailers are implementing AI-powered analytics for supply chain optimisation, while BCG's projections of USD 640 billion in additional import costs are driving widespread operational changes. February 2025 saw the elimination of the USD 800 de minimis rule, further complicating international trade. Despite these challenges, January 2025 data shows that 87% of early AI adopters achieved significant revenue increases, though only 10% of retailers have successfully scaled their AI applications, highlighting both the potential and challenges of technological adaptation.

Tariff turmoil: How retailers adapt to shifting trade policies

What: Erewhon has evolved from a health food store into a luxury lifestyle brand, leveraging celebrity partnerships and premium pricing to create a distinctive retail experience that transcends traditional grocery shopping.

Why it is important: The transformation demonstrates how specialty retailers can successfully elevate everyday shopping into luxury experiences, creating new benchmarks for experiential retail and community building in the process.

Erewhon's remarkable transformation under Tony and Josephine Antoci's leadership since 2011 exemplifies the evolution of modern retail into experiential destinations. The company has successfully positioned itself as a luxury lifestyle brand, where $20 smoothies and $19 strawberries become coveted status symbols rather than mere grocery items. Their strategic approach combines premium product curation with celebrity partnerships, including viral smoothie collaborations that generate both social media buzz and charitable contributions. The company's $200-a-year membership programme has created an exclusive community aspect, while partnerships with fashion brands like Balenciaga and lifestyle ventures such as Sushi Club have reinforced its luxury positioning. As Erewhon expands to thirteen locations across California, its success demonstrates how a focused retail concept can evolve into a comprehensive lifestyle brand that attracts both local regulars and international visitors seeking an authentic LA experience.

IADS Notes: Erewhon's success aligns with significant retail trends identified in recent years. As noted in January 2025, successful retailers are prioritising emotional engagement over traditional sales metrics, which Erewhon demonstrates through its carefully curated environments and social spaces. The company's approach to creating community hubs reflects the growing importance of "third spaces," where retailers foster genuine connections beyond traditional shopping experiences. Their December 2024 expansion into apparel and lifestyle products exemplifies how strong brand identity can support category expansion, creating a comprehensive lifestyle experience that transcends traditional retail boundaries.

The business of Erewhon

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

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

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

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

The retailers unlocking Africa’s luxury market

What: Despite modest holiday sales improvement, Macy's faces mounting pressure from tariffs and cautious consumer spending, prompting aggressive store optimisation and supply chain restructuring.

Why it is important: The convergence of trade tensions, shifting consumer behaviour, and department store decline forces traditional retailers to fundamentally reimagine their business models, making Macy's response a bellwether for the industry's future.

Macy's, America's largest department store chain, reported a slight 0.2% increase in comparable sales across its stores, including Bloomingdale's and Bluemercury, marking its best performance in nearly three years. However, this modest improvement comes amid significant challenges, including consumer spending constraints and margin pressures. The company's turnaround strategy involves closing more than 60 of 150 planned store locations, whilst grappling with the impact of new tariffs on imports from Canada, Mexico, and China. CEO Tony Spring indicated that while current inventory levels shield the company from immediate tariff effects, future impacts will be assessed on a case-by-case basis. This cautious approach reflects broader industry concerns, with other retailers like Target and Best Buy warning of potential price increases for American consumers. Despite these challenges, some retailers, including Warby Parker and TJX, have implemented strategies to diversify their supply chains and minimise tariff exposure, demonstrating the industry's adaptive response to trade pressures.

IADS Notes: Macy's latest performance reflects significant retail transformation trends observed throughout 2024. In March 2024, the company launched a USD 100 million supply chain optimisation plan to address tariff impacts, while November 2024 reports showed the "First 50" pilot stores delivering consistent growth and improved customer satisfaction. The expansion of store closures announced in December 2024 aligns with May 2024 data showing department stores' market share had declined to just 2.6% of retail transactions, highlighting the urgency of transformation efforts. January 2025 results demonstrated strong performance in luxury segments, suggesting that while Macy's faces significant headwinds, its multi-brand strategy shows promise.

Macy’s signals rocky year ahead as retailers reckon with trade war

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

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

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

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

Women in the workforce: the glass-ceiling index 2025