Key Takeaways

• Online has found its ceiling; the channel battle returns to physical retail — fewer, bigger, direct. Online appears to have reached its long-term market share of 20–25%, and outlets were the only channel to grow last year. The race to retail is accelerating (more directly operated stores, less wholesale) fuelled in part by American department stores cutting selling space by 10% between 2024 and 2025, while brands reconfigure toward fewer but larger, experience-led flagships.
• The American fault line is the wholesale model, not the market. Challenged by IADS on the contradiction between US department stores' difficulties and the American market's rebound, Bain separated market trend from player-specific management issues and pointed to structure: where Europe moved to concessions and brand-operated store-in-store, the United States remains on a wholesale model in which the department store carries the risk, hence sharply divergent results among players.
• Profitability is back at financial-crisis levels. 2025 margins returned to their 2009 level of 15–16%, with every P&L line inflating at once — tariffs, labour, rents, event-driven marketing, ballooning AI budgets and the carrying cost of post-COVID excess inventory. Roughly 20% of the profit generated between 2021 and 2025 evaporated within months.
• Customers have adopted AI faster than the brands selling to them. Bain's survey of 1,500 recent luxury buyers puts AI in the purchase journey for 27% of clients in France, 54% in the US, and 64% in China — rising with basket size — and 97% intend to use it again. Brands are behind: customer-facing use cases have not progressed since 2024, and luxury's AI adoption stands at roughly a third of retail's level and a quarter of consumer goods'.
• GEO is the new visibility battle — and scale earns no premium. 70% of luxury-related prompts mention no brand at all, delegating the recommendation to the engine, yet LLM responses omit brand websites in 90% of watch queries and 95% in beauty. Among the 30 most visible brands on LLMs, 70% of majors under-index their market share while specialists dominate the rankings. Unlike SEO, GEO cannot be bought — at least not yet — and only 10% of houses rate themselves good at it.
• The next local-brand wave is predictable, and India could be a candidate. Bain's emergence pattern (25 years of maturation in China before the current explosion of national brands, K-beauty's leap from home market to global conquest, J-beauty never scaling for demographic reasons) points to a probable emergence wherever labour, ancestral know-how and quality raw materials combine, with "Indian beauty" framed as the third wave after K-beauty.

Click below to read the full recap:

IADS Conference Report Bain & Company: Luxury Panorama, 2026

Click below to access the presentation and other materials:

Luxury in 2026, from resilience to reinvention
Winning over the customer in the age of AI: A new horizon for luxury
Global luxury stabilizes amid compounding disruptions as brands race to amplify meaning and rebuild relevance

Key learnings from the workshop

Companies no longer face a clean choice between political engagement and neutrality. They act inside a context already shaped by distrust, competitive pressure, conflicting social expectations and tightening regulation. Five points carry over to our sector.

• Neutrality is no longer passive. Once activism becomes the norm, declaring neutrality is itself a position. It can be defensible, but only if it is asserted, justified and practised consistently, rather than used as a way to avoid the question. For a format that sells across the whole of a society rather than to a narrow segment, this is a key choice: not whether to speak, but whether silence has become legible as a choice, and to whom.
• Sincere action earns little moral credit by default. Even principled corporate decisions are read cynically. The workshop's response was procedural rather than rhetorical: transparent decision criteria and clear justification are what allow an observer to distinguish principled engagement from opportunism. The credibility comes from the process, not from the statement.
• Decisions are made by people in a room, not by "the company." The organisers pressed the micro-foundations of corporate choice (who sits at the table, whose incentives dominate, whether an ethical voice is present at the point of decision or relegated to an advisory function). This shifts attention from public positioning to the quality of internal governance.
• Size changes the rules. Formal procedures, ethics functions, reputational exposure and lobbying capacity all scale with the organisation. Large firms hold a structural advantage in regulation (legal complexity and access to institutional channels favour the better-resourced), which is useful when they resist poorly designed rules, but shades into regulatory capture when they are the only actors able to shape them.
• Codes and pledges have practical, not just symbolic, value. When adopted seriously, a set of commitments gives a company a framework for justifying decisions, explaining refusals, and regulating its own participation in public debate — provided the ethical voice sits at the strategic table rather than at its margins, and provided commitments are allowed to vary across national contexts and locally contested issues.
  The organisers framed the open question as whether companies can still claim or reclaim an "apoliticality" — and, if not, through which procedures, with what justifications, within which limits, and in what forms they may legitimately intervene in public controversy.

Click below to read the full recap:

AGORA: The politicisation of business and the department store format

Key Takeaways

• A 250-year retailer rebuilt as an AI-first operating model — and used that rebuild to take over Boohoo. Debenhams, rescued from administration four years ago, did not bolt AI onto its operations but rebuilt the operating model around it; CEO Dan Finley frames the company as "AI-first." That transformation was the platform from which the rescued brand took control of the wider group it now leads (Boohoo).
• The headcount math: 1,500 people running an operation that once required 7,000. Embedding AI cut Debenhams to a "small and mighty" team, with over £200m in stated cost savings. The technology team alone went from around 2,000 to roughly 20, now supported by more "tech agents" than humans.
• Content and design pipelines run straight through, from generation to factory order. AI generates product imagery and catwalk/campaign video at stated accuracy above 99%, swapping a sold-out accessory out of a styled shot in ~1.5 seconds and testing ten variants live before promoting the winner within an hour. In design, AI ingests products on sale worldwide plus Debenhams' own performance data to generate ranges in seconds at a reported 90% hit rate, then runs straight through to tech packs, simultaneous web/social upload for demand signals, and a proprietary algorithm that cancels no-demand products or scales winners before stock reaches customers.
• More agents than people by September 2026, with each colleague managing a fleet. The CEO expects Debenhams to have each colleague typically managing about five agents.
• A deliberate refusal of single-provider lock-in, even with AWS in the room. Presenting alongside AWS as a strong partner, the CEO nonetheless warned that every tech company wants to build a walled garden, advised picking the best features across multiple providers, and argued it is too early to call winners. He explicitly discouraged the five- and ten-year single-provider commitments some retailers are signing, drawing the analogy to firms that locked into e-commerce platforms before Shopify emerged.

Click below to read the full recap:

Rarely Heard Voices: AI in retail 

Key Takeaways

• The 2% decline in global luxury sales is presented as a recalibration toward meaning, not a crisis, and the differentiator to protect is the supply chain, not the brand. 50 million high-end consumers evaporated, but this is presented as a shift favouring curation and editorial point of view over breadth of global brands. The value Europe cannot afford to lose is its artisanal handwork, and the euro-dollar parity (not export support) was presented as a priority.
• The standalone store is finished as a unit; the durable store is a clienteling machine inside a mixed-use engine. E-commerce is unprofitable without physical retail and the store's job is desirability, data and human relationship. Population and spending power come above architecture, and pure-retail destinations are declared dead: the store must sit in a district with transport, tourism and recurring reasons to visit.
• Golden Goose is betting that the addressable market is "outside Versailles" and that the brand's job is to host co-creation, not sell product. The CEO argues that "everyone already owns everything, so they want to make their own." His blunt conclusion: brands should become platforms where designers design "the experience and the next filter" rather than products.
• The aspirational customer is the real pressure point, and clarity is what sells into uncertainty. LuxExperience reported consumers "back" April–May with North America leading, but flagged the aspirational tier as still suppressed by uncertainty.
• Multi-brand earns its place by reaching the half of luxury customers who are not brand-led, and by bridging brands into culture. Brunello Cucinelli made a full defence: at least half of the luxury base is not brand-driven before purchase, and that half discovers variety through multi-brand, where expert buyers' judgement itself serves as a trust signal. END. demonstrated the mechanism — the first-ever Adidas shop-in-shop and the Stan Smith relaunch content built around it — and is launching a private label this autumn.
• The Western centrality of luxury is the assumption to drop. India is its own market, and provenance may matter less than craft. India runs on cricket and Bollywood, not Western trend reports, and treating it like China misreads it. But if co-design erases European character, why would Indian consumers with their own craft traditions need the brand?

Click below to read the full recap:

RLC Fashion Summit 2026 report

What: The 2026 World Department Store Summit, co-organised by IGDS and Liverpool and held in Mexico, centred on how department stores can rebuild relevance through operational trust, loyalty as a revenue system, and pragmatic AI deployment, set against BCG's portrait of a 2030 consumer who is pessimistic about the world but willing to spend.

Why it is important: We have selected the most relevant presentations for IADS members, covering Liverpool's unified commerce strategy, Nordstrom's measured AI use cases, Paris Department Stores' customer-health approach, and Mecca's full-price service model, as well as broader sessions on the 2030 consumer (BCG), the mid-market shake-out (Achim Berg, FashionSIGHTS), loyalty economics (Aeromexico), brand turnarounds (Gap, Kurt Geiger, Authentic Brands Group), and succession planning (Dimas Gimeno and Egon Zehnder). 

IGDS World Department Store Summit 2026

What: In "Enshittification", Cory Doctorow argues that the decline of digital platforms is not accidental but the predictable result of a three-stage cycle: platforms start by being genuinely good for users, shift to serving business customers, then squeeze everyone to maximise shareholder returns. He locates the root cause in decades of unchecked monopoly consolidation and regulatory failure, and proposes a set of structural remedies including antitrust enforcement, mandatory interoperability, data portability, and treating key digital infrastructure as a public good.

Why it is important: For department store leaders, Doctorow's framework gives precise language to a frustration most retailers know intimately, rising platform fees, pay-to-play visibility, opaque data arrangements, and shrinking margins on Amazon, Meta, and Google. In 2026, as platform regulation tightens and boards face greater scrutiny over digital risk, his lens offers a practical provocation: before deepening any platform dependency, ask what stage-3 extraction looks like, and design your loyalty, CRM, and retail media strategies so the customer relationship stays with the retailer, not the intermediary.

Book Review: Enshittification

The IADS attended the 2026 annual mid-year meeting of the Federation of International Retail Association (FIRA). Over the years, FIRA has proven useful to us for gaining insights and accessing other retailers and federations.
18 delegates from 14 federations attended this session, held at the end of the World Retail Congress.

Read the full report below:

FIRA 26 MID-YEAR MEETING REPORT

What: The IADS attended the 2026 edition of the World Retail Congress, held in Berlin on April 28-29. 

Why it is important: During this edition, John Lewis’ Managing Director, Mr Peter Ruis, attended a roundtable on AI along with the CEOs of JD Group and DFI Retail Group, while Newstores, an IADS partner, gave a much-commented presentation on the “best global new stores”. The IADS had the opportunity to moderate a roundtable between Selfridges’ Group CEO, Andre Maeder, Christian Louboutin’s CEO, Alexis Mourot, and Diriyah Company’s Chief of Retail Leasing, Nermeen Nosseir.    

World Retail Congress 2026 IADS report

What: Fixing Fairness argues that legacy diversity, equity, and inclusion programmes have not merely failed; they have generated the conditions for their own political destruction. Lily Zheng proposes a replacement: the FAIR Framework, built around four outcomes everyone deserves to experience (Fairness, Access, Inclusion, and Representation) and four governing tenets (outcomes over intentions, environment over individuals, coalitions over cliques, and abundance over scarcity).

Why it is important: Published in 2026 against a backdrop of rolling DEI rollbacks and coordinated political backlash, the book reframes a poisoned ideological debate as a problem of organisational design. A YouGov poll cited in the opening pages found that only 20% of workers felt DEI programmes had personally benefited them; more than 60% reported no effect at all. Zheng's central proposition, that anti-DEI backlash is the logical consequence of this irrelevance and not a groundswell of hatred, is uncomfortable for advocates and critics in equal measure, and more persuasive for being so.
Their research and perspectives were among those most extensively quoted in the IADS White Paper DEI at a crossroads in retail.   

Book Review: Fixing Fairness

What: The RetailHub "Leadership in Retail" conference demonstrated that adapting to agentic AI and a state of "permacrisis" is no longer optional, but existential. Drawing on cases from Zalando to Mediaworld, and in conversation with leaders from Coin, Amplifon, Geox, and Bocconi University, the event proposed a framework of five strategic imperatives. It challenged brands to move beyond transactional commerce toward becoming data-rich environments capable of interacting with autonomous AI agents that will soon transact on behalf of consumers.


Why it is important: As brands increasingly define themselves by their data depth and geopolitical resilience, their strategic choices directly shape the next generation of department store partnerships and in-store experiences. Understanding what makes a transformation credible such as Equinox’s pivot from fitness to a $40,000 longevity platform or Mediaworld’s shift into a Gen Z gaming destination equips industry leaders to evaluate brand relevance with precision. Furthermore, the rise of "agentic commerce" means retailers must now prepare for a world where the "price tag" is obsolete and the primary customer is a digital bot rather than a human browser.

Retailhub Leadership in Retail 2026

Retailhub - Leadership in Retail brochure

What: Nellyrodi made the case that brand diversification is no longer optional,  it is existential. Drawing on cases from Hermès to Amazon, and in conversation with Le Ritz Paris, Horace, Le Monde, and the 24 Hours of Le Mans, the conference proposed a four-part framework for getting it right, and challenged brands to move beyond the café and the running club toward genuinely new frontiers.

Why it is important: As brands increasingly define themselves not by what they make but by the worlds they represent, their territorial ambitions directly shape the next generation of department store partnerships, category expansions, and in-store experiences. Understanding what makes a diversification credible — or catastrophic — equips department store buyers and category directors to evaluate brand extensions with greater precision and anticipate where strong brands are heading next.

NellyRodi: Brand diversification presentation

NellyRodi: Brand diversification takeaways

What: NRF's annual web conference covered supply chain realignment, Gen Z behaviour, and the 2026 economic outlook. The headline: US retail is growing faster than its pre-pandemic average — but spending is concentrating at the top, and Gen Z is more AI-sceptical than AI-trusting.

Why it is important: For department stores, which serve a predominantly premium consumer base and operate across the categories where Gen Z influence is growing fastest, these findings have direct implications for assortment strategy, digital investment, and content authenticity. The persistence of the K-shaped spending pattern reinforces why luxury and premium retail continues to outperform the mid-market. Understanding how Gen Z uses AI as a discovery and scepticism tool, rather than a frictionless purchase driver, shapes how department stores should approach visual search, AI integration, and transparent communicatio

NRF: State of US retail & the American consumer takeaways

What: French Founders invited the IADS to a discussion in Paris between Patrick Burguet, VP HR EMEAI at Air Liquide, and Marie Barbier, CHRO at Morning, on how working practices have evolved since the pandemic: the hybridisation of working methods, the rollout and rollback of remote work, the transformation of office spaces, and the disappearance of the individual desk.

Why it is important: Hybrid working is now a permanent feature of corporate life, and the strategies organisations adopt have measurable consequences for talent retention, managerial effectiveness, and junior development. The discussion surfaced a clear consensus: neither full-remote nor forced full-return models are sustainable. The future belongs to organisations that redesign the office as a collaboration hub, anchor management in trust rather than supervision, and treat flexibility as a strategic tool.

French Founders – "New forms of work: towards a sustainable model?" – IADS report

The IADS attended a webinar organised by the University of St Gallen on the luxury industry's resilience through economic cycles. Guest speaker Dr Frank Müller, programme director and lecturer of luxury management at the Institute for Marketing and Customer Insight – St Gallen, presented findings from a comparative analysis of 19 macroeconomic variables against the sales of 29 high-end brands between 2001 and 2023.

The key takeaway: macroeconomic indicators are a poor basis for short-term luxury forecasting. While long-term revenues broadly track GDP trends, year-over-year performance is driven by brand-specific variables—management decisions, product focus, and regional dynamics. Dr Müller argued that the four growth "mega boosters" of recent decades have run their course, and called for greater strategic discipline: sharper segmentation, AI-assisted demand planning, and a clear commitment to high-end positioning as mid-market disruption intensifies.

University of St Gallen – Webinar: "Is luxury recession-proof? What data says" – IADS report

What: In Peter Hinssen's "The Day After Tomorrow", the Belgian entrepreneur and innovation strategist argues that organisations are trapped in a dangerous time bias, spending nearly all their energy on today's operations and tomorrow's incremental improvements, while systematically neglecting the radical, transformative thinking that will determine their survival. Drawing on exponential technology curves and a vivid "plantation versus rainforest" metaphor, Hinssen presents a 70–20–10 portfolio model urging leaders to ring-fence attention, budget and talent for a third horizon, the Day After Tomorrow, where conventional forecasting fails and only reverse-engineered imagination from the future back to the present can prepare organisations for disruption.

Why it is important: For department store leaders and retail executives, this book is a direct challenge to the innovation theatre that dominates the industry: running AI pilots, launching omnichannel projects and redesigning loyalty apps that all still demand an 18-month payback. Hinssen's framework exposes the structural reason why most retailers are reactive rather than anticipatory, not a lack of ideas, but a governance and culture failure that lets the urgent perpetually crowd out the important. In 2026, as AI becomes retail infrastructure, physical stores evolve into experience and data hubs, and AI agents begin to reshape discovery and conversion, the 70–20–10 model gives boards a concrete, board-ready language to rebalance portfolios: protecting today's margins while explicitly funding exploration of models such as retail-as-a-service, agentic commerce and membership-based formats that may cannibalise current revenue streams but will define relevance in the 2030s.

Book Review: The day after tomorrow 

What: The IADS attended EuroShop in Düsseldorf, Germany, from 22–26 February 2026. The triennial fair—celebrating its 60th anniversary—is the retail sector's most comprehensive infrastructure event, bringing together 1,840 exhibitors from 61 countries across more than 100,000 sqm and welcoming over 81,000 visitors. Structured into clearly defined "dimensions," the event spans shopfitting and store design, retail technology, lighting, visual merchandising, refrigeration and food technology, energy management, and retail media, enabling operators to assess the store as an integrated system rather than a collection of isolated functions.

Why it is important: EuroShop 2026 marked a decisive shift in the retail sector's investment posture. Sustainability, once a prominent selling point, has receded into a baseline assumption—its absence from stand branding signalling that it is now simply the cost of entry. In its place, AI has emerged as the defining lens, though subtly: the dominant model is in-store augmentation rather than replacement, with interactive mirrors doubling as semi-3D mannequins and AI-driven holographic assistants pointing toward viable after-hours automation. The overriding message from exhibitors and buyers alike is a preference for functional investment over gratuitous technology, with retailers actively seeking solutions that justify capital expenditure. 

Standout innovations included AI-powered dynamic pricing (7learnings, already deployed with Galeria), a commercially safe AI-generated visual creation built on licensed data (Bria, partnered with Getty Images), and a gamified loyalty model that generates self-funded customer rewards (Adjoe). The ambition and theatrical scale of many exhibitor stands also offered a confident signal: investment in physical retail is firm, even as operators grow more selective about where that capital flows. With the next edition not until 2029, EuroShop 2026 stands as the definitive state-of-the-art reference point for department stores and retail leaders shaping their store concepts and technology roadmaps for the rest of the decade.

EuroShop 2026 report

The IADS attended RH-ISAC’s Trade Association Partners meeting, which takes place every two months. Topics discussed are cybersecurity policy issues and updates, recent RH-ISAC reports and resources for members, and threat trend briefings. 

RH-ISAC Trade Association Partners Meeting recap - February 2026 

What: The IADS attended the RLC Global Forum in Riyadh, KSA, on February 3-4, 2026. This by-invitation-only event featured sessions on the GCC consumer economy, geoeconomics, luxury's Global South influence, AI in fashion, retail growth strategies, and WhatsApp business applications.

Why it is important: The GCC's non-oil sector is accelerating to 4.5% growth with consumer spending shifting toward discretionary categories and e-commerce reaching 30% of retail in Saudi Arabia. A critical insight revealed fashion's "hourglass squeeze"—the accessible-luxury middle market is thinning as brands focus on VICs while neglecting aspirational consumers. AI offers solutions for reconnecting with these consumers through personalised experiences at scale. Regional retail leaders emphasised shifting from growth-at-any-cost to quality of earnings, with conversion becoming paramount as mall footfall declines. The Global South's rising luxury influence is reshaping strategies—local brands now hold stronger voices, and consumers demand cultural authenticity over superficial adaptations.

RLC Global Forum 2026 report

What: In Carlo Masala's "If Russia Wins: A Scenario", he presents a 120-page geopolitical thriller set in 2028 where a fatigued West has pressured Ukraine into territorial concessions, emboldening Russia to test NATO's Article 5 commitment through a calculated hybrid incursion into Estonia, exposing the alliance's critical vulnerability: not military hardware, but political will and democratic paralysis in the face of hybrid warfare.

Why it is important: For retailers and European leaders, this scenario demonstrates that geopolitical stability is now a primary operational risk—supply chains through Eastern Europe and the Baltics are far more vulnerable than traditional models suggest, requiring a shift from "just-in-time" efficiency to "just-in-case" resilience, with urgent need for stress-testing strategies against renewed shocks, higher defense spending reducing consumer purchasing power, and the reality that corporate neutrality is becoming impossible in a polarised world where business continuity depends on democratic resilience.

Book Review: If Russia wins, a scenario 

The IADS attended the 2026 annual Federation of International Retail Association (FIRA) meeting, of which IADS is a member. 

Over the years, FIRA has proven useful for gaining insights, access to other retailers and federations, and securing perks for IADS members willing to attend NRF.

54 delegates (56 last year, 63 in 2024) from 27 federations (29 last year, 31 in 2024) attended this session. 

Below is a recap of the presentations and exchanges. 

The NRF conferences and store visits are summarised in a separate document.

FIRA 26 MEETING REPORT

SPEAKER BIOS

Trade Associations in the Age of AI by Ian Khan

Payments Landscape and Innovations by Stephanie Martz

National Retail Federation: Economic Perspectives by Mark Mathews

Authors: David Baverez

What: In David Baverez’s “Welcome to the War Economy”, he argues that since 2022, the West has shifted from a globalisation-driven “peace economy” to a war economy where scarcity, inflation, and strategic dependencies force a move from Just-in-Time efficiency to Just-in-Case resilience, guided by a new ESG: Energy, Security, War.

Why it is important: For retailers and European leaders, this means rethinking cheap global sourcing and consumer-centric models in favor of industrial sovereignty, secured supply chains, and the ability to withstand geopolitical and resource shocks.

Book Review: Welcome to the war economy

The IADS attended RH-ISAC’s Trade Association Partners meeting, part of a new meeting series for trade association partners to collaborate on cybersecurity issues. Beginning from August 2025, this meeting takes place every two months. Partners discuss cybersecurity policy issues and updates, recent RH-ISAC reports and resources for members, and threat trend briefings. 
This document presents a brief recap of the RH-ISAC Trade Association Partners meeting.

RH-ISAC Trade Association Partners Meeting recap - December 2025

Authors: David Epstein

What: David Epstein’s "Range" arguments suggest that generalists with diverse experiences outperform early specialists in complex, unpredictable environments like modern retail.

Why it is important: Epstein’s insights reinforce the importance of developing generalist managers, echoing recent reports that highlight the value of diverse backgrounds and flexible leadership in retail.

Book review: Range

The IADS attended the 2025 edition of Fashion Reboot, the annual conference organised by the Institut Français de la Mode. This event brings together researchers, academics, and professionals to discuss the latest developments, challenges, and transformations shaping the global and French fashion industries.

During the conference, the IADS contributed with a keynote presentation on the current state of department stores worldwide, offering insights into market evolution, emerging business models, and future perspectives. The session invited meaningful discussions on how department stores can adapt to sustainability goals and shifting consumer expectations.

Read the full report below.

Institut Français de la Mode 2025 - Fashion Reboot IADS report