IADS Exclusive - The transparency trade-off: pricing, loyalty and regulation
Ripley improves its financial rating after strengthening its businesses in Peru and Chile
Ripley improves its financial rating after strengthening its businesses in Peru and Chile
What: Ripley Corp’s credit rating was upgraded to A+ after stronger real estate, banking and retail performance improved its financial profile.
Why it is important: The upgrade shows how diversified retail groups can use real estate, banking and digital growth to stabilise cash flow and strengthen investor confidence.
Ripley Corp has strengthened its financial position after rating agencies Humphreys and Feller Rate upgraded its credit and bond ratings to A+. The upgrade reflects improved credit indicators, with net financial debt to EBITDA falling from 5.4 times to 2.6 times in one year and financial expense coverage rising from 1.9 times to 3.3 times. Both agencies pointed to a structural improvement in cash-flow generation, supported by Ripley’s diversified model across retail, banking and real estate. The real estate business was a key driver, with Mall Aventura in Peru reporting an EBITDA margin of 88.8% and 98.4% occupancy, while Grupo Marina in Chile reached an 86.8% EBITDA margin and 99.6% occupancy, excluding offices. Banco Ripley Chile also resumed dividend payments in 2025 after a two-year pause, adding liquidity and reducing exposure to the retail cycle. In retail, operational efficiency improved margins, while digital sales reached 23.9% of revenue in the first quarter of 2026.
IADS Notes: Ripley Corp’s A+ rating upgrade confirms the value of a diversified Latin American retail holding model built around retail, banking and real estate. In August 2026, Perú Retail reported that Humphreys and Feller Rate upgraded Ripley after net financial debt to EBITDA fell from 5.4 times to 2.6 times and financial expense coverage improved from 1.9 times to 3.3 times, supported by stronger cash flow from real estate, banking dividends and retail efficiency. This follows Perú Retail’s March 2026 coverage of Ripley’s record 2025 profits, when earnings rose 120% thanks to growth across retail, banking and real estate, with Peru playing a key role. Modaes reported in December 2025 that Ripley’s sales rose 5.7% and profits more than doubled through September, already showing the benefits of its multi-segment model. The June 2026 Modaes report on Ripley’s weaker first quarter adds contrast: even as Chilean retail sales suffered from lower tourism, banking, Peru and marketplace growth helped offset pressure. The pattern mirrors Falabella’s April 2026 investment-grade recognition, where financial discipline, omnichannel growth, banking and real estate strength also supported investor confidence.
Ripley improves its financial rating after strengthening its businesses in Peru and Chile
5 lessons from the Saks Global bankruptcy
5 lessons from the Saks Global bankruptcy
What: Saks Global’s bankruptcy offers five lessons on vendor trust, debt-heavy consolidation, brand dependence and retail fundamentals.
Why it is important: The reset demonstrates that post-bankruptcy recovery requires more than lower debt; it depends on restoring inventory flow, supplier confidence and customer relevance.
WWD’s analysis of Saks Global’s bankruptcy draws five lessons from the retailer’s rapid rise, collapse and rebirth as Exemplar Luxury Group. The company, parent of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, emerged from six months in bankruptcy with new lender-owners, Geoffroy van Raemdonck as CEO and a reduced debt load. The first lesson is that luxury department stores must protect vendor relationships. Saks’ delayed payments damaged supplier trust and eventually restricted inventory flow, leaving stores without enough product to generate cash. The second is that brands need a broader distribution base, because smaller labels exposed to one major account can be severely damaged by unpaid invoices. The article also warns investors to read deal structures carefully, citing confusion around the collateral behind Saks’ bond offering. More broadly, it argues that Saks became distracted by complex financing, Amazon partnerships and rapid integration plans, while losing focus on retail fundamentals. The Neiman Marcus acquisition may have been financially possible, but the business case was not strong enough.
IADS Notes: Saks Global’s bankruptcy has become a cautionary case for luxury department stores, showing that financial restructuring cannot replace vendor trust, disciplined consolidation and reliable inventory flow. In July 2026, the Financial Times argued that Exemplar Luxury Group’s recovery depends more on restoring relationships with brands such as Gucci, Chanel, LVMH and Kering labels than on Wall Street engineering. WWD reported in June 2026 that Saks Global exited bankruptcy as Exemplar Luxury Group with a 75% debt reduction, new ownership, a streamlined store portfolio and a renewed focus on Neiman Marcus, Bergdorf Goodman and Saks Fifth Avenue. WWD’s May 2026 coverage of the litigation trust showed the legal and creditor complexity of the restructuring, including $500 million in exit financing, vendor payment priorities and limited recovery prospects for unsecured creditors and smaller brands. Earlier, WWD’s January 2026 analysis of the Chapter 11 process showed how unpaid invoices forced luxury brands to reassess distribution strategies, while The Robin Report’s January 2026 coverage traced the crisis to debt-heavy acquisitions, leadership failures, payment delays and vendor backlash.
5 Lessons from the Saks Global bankruptcy
Liverpool grew consolidated revenue by 1.5% in 2026 Q2
Liverpool grew consolidated revenue by 1.5% in 2026 Q2
What: Liverpool delivered modest second-quarter revenue growth as margin gains, logistics stabilisation and diversified businesses offset cautious consumer demand.
Why it is important: Liverpool’s results show how inventory discipline, logistics recovery and diversified revenue streams can protect performance in a cautious consumer market.
El Puerto de Liverpool reported consolidated second-quarter revenue of $57.3 billion pesos, up 1.5%, despite a sluggish macroeconomic backdrop and cautious consumer spending. Retail grew only 0.4%, or 1.8% excluding discontinued operations, as demand concentrated around promotional events and the FIFA World Cup softened most categories. Liverpool same-store sales rose 1.7%, while Suburbia fell 6.4% due to weaker apparel demand, lower clearance sales and category repositioning. The group improved commercial gross margin by 140 basis points to 32.4%, supported by healthier inventory, a stronger peso, lower promotional activity and a better category mix. Operational challenges linked to the Arco Norte distribution centre were resolved, restoring merchandise availability and normal commercial execution. Digital GMV rose 4.8%, with Liverpool digital penetration reaching 32.3%, while Liverpool Pocket active users increased 12.4%. Financial Business revenue grew 9.9%, supported by credit portfolio expansion, and Real Estate revenue rose 8.6% as occupancy reached 94.1%. Net income increased 55.4% to $5.1 billion pesos.
IADS Notes: Liverpool’s second-quarter results show a partial recovery from the pressures earlier this year, supported by inventory discipline, logistics stabilisation and diversification beyond retail. In May 2026, Modaes reported that Liverpool’s first-quarter revenue and net profit had declined as weak consumer demand, cautious spending, supply chain disruption and margin pressure weighed on performance. Modaes had already noted in February 2026 that higher operating expenses, the Arco Norte logistics transition and the Nordstrom acquisition were expected to pressure profitability, making the latest resolution of logistics challenges and margin expansion more significant. The current reliance on digital, financial services and real estate also builds on the October 2025 Press Release showing growth through digital expansion, financial services, real estate, new store formats and app engagement, despite logistics costs and higher bad-debt provisions. Modaes’ October 2025 analysis of Liverpool’s fashion slowdown similarly highlighted the growing importance of e-commerce, credit and real estate as offsets to weaker traditional categories. More broadly, Modaes’ January 2026 profile of Liverpool framed the group’s resilience around heritage, diversification, financial services, real estate, digital channels, exclusive brand partnerships and its Nordstrom stake.
Liverpool grew consolidated revenue by 1.5% in 2026 Q2
Frasers Group now holds over 37% of Hugo Boss
Frasers Group now holds over 37% of Hugo Boss
What: Frasers Group has increased its Hugo Boss stake to more than 37%, advancing its premium and luxury acquisition strategy.
Why it is important: The move shows how Frasers is using strategic stakes and takeover offers to build influence across premium and luxury fashion.
Frasers Group now holds more than 37% of Hugo Boss, strengthening its position in the German fashion company as it extends its takeover offer. The group said that accepted shares under the offer, combined with its direct holding, amount to 25,933,012 Hugo Boss shares, equal to 37.58% of share capital and voting rights. Frasers has been a major Hugo Boss shareholder since 2020, when it acquired an initial stake of around 5%. Its latest position is up from just over 30% at the previous update, showing further progress toward its goal, although it remains below majority control. The offer period has been extended from 31 July to 13 August, giving Hugo Boss shareholders more time to accept the €38-per-share offer. The price values the company at just under its current €2.63 billion market value, with Hugo Boss shares trading at €38.05. The move reinforces Frasers’ long-running effort to expand influence in premium and luxury fashion.
IADS Notes: Frasers Group’s increased Hugo Boss stake reinforces its acquisition-led strategy to move further into premium and luxury fashion. In July 2026, Fashion Network reported that Frasers now holds 37.58% of Hugo Boss as part of its extended takeover offer, giving the group greater influence over a major European fashion brand. This follows Retail Week’s October 2025 coverage of Frasers acquiring a majority stake in The Webster, which strengthened its international luxury strategy and curated premium retail portfolio. Retail Week also reported in December 2025 that Frasers was relaunching Matches after acquiring the distressed luxury retailer’s intellectual property, showing its willingness to revive luxury assets through operational integration and new business models. The broader strategy was visible in Retail Week’s July 2026 coverage of Frasers’ results, where international expansion, acquisitions, premium repositioning and property-led growth helped offset pressure in the UK sports business. Fashion Network’s July 2026 report on Frasers entering the Harvey Nichols auction further shows how the group is pursuing premium and luxury assets to build scale, credibility and influence across the sector.
The cost of intelligence: How CIOs can manage AI demand at scale
The cost of intelligence: How CIOs can manage AI demand at scale
What: CIOs need stronger AI cost governance as enterprise adoption shifts from isolated pilots to large-scale, usage-based deployment.
Why it is important: This shift matters because retailers scaling AI face the same pressure to connect usage, governance, and investment discipline to measurable business outcomes.
McKinsey argues that enterprise AI spending is becoming harder to control as companies move from isolated pilots to broad deployment. AI costs can rise faster than traditional technology budgets because usage is fragmented across business units, vendors, software platforms, and employee-built workflows. According to McKinsey’s May 2026 Enterprise AI FinOps survey, AI spend increases nearly fourfold as organisations scale adoption, while 93 percent of respondents report exceeding their AI budgets. A majority also expect AI spending to rise by at least 25 percent over the next 12 months. The article identifies several causes: unpredictable token usage, consumption-based pricing, immature governance, unclear model-selection rules, and citizen developers creating AI workflows outside central IT. McKinsey recommends treating AI cost management as “enterprise AI tokenomics,” or FinOps for AI. CIOs should build visibility into spend, track token consumption, allocate costs to business outcomes, forecast demand, and optimise usage through measures such as model routing, prompt caching, and stronger governance. Thoughtful AI consumption can reduce costs by 20–30 percent while redirecting investment toward higher-value use cases.
IADS Notes: AI cost management is becoming a strategic retail issue because the sector is moving from scattered experimentation to enterprise-wide deployment without always having the governance, operating models, or financial discipline needed to control usage. In July 2026, ERE Media warned that current AI pricing may be artificially low, making automation and workforce decisions vulnerable to future cost increases. WWD in July 2026 similarly showed that retailers are increasing AI investment but still struggling to convert automation into measurable returns without workflow redesign, data quality, and human-machine collaboration. BCG in June 2026 reinforced that the winners in retail and CPG are those linking AI use cases to financial outcomes, while its February 2026 analysis argued that AI requires a broader redesign of business models, workforce structures, and investment priorities. Forbes in October 2025 added that AI agents are already reshaping pricing, planning, and store operations, making governance, training, and clear boundaries essential as autonomous systems move deeper into retail operations.
The cost of intelligence: How CIOs can manage AI demand at scale
Can fashion compete with supermarkets in the rush to retail media?
Can fashion compete with supermarkets in the rush to retail media?
What: The Iconic, Myer and David Jones are challenging supermarket dominance in Australian retail media with data-led advertising platforms.
Why it is important: Fashion retailers’ move into retail media reflects a broader industry push to monetise customer attention while protecting the shopping experience from ad overload.
Australian retail media is expanding beyond supermarkets as fashion retailers and department stores build advertising businesses around customer data, digital traffic and shopping intent. The Iconic has launched Iconic Media, combining advertising, customer insights and creative services under one platform led by Joshua Nunan. The aim is to help brand partners run faster, more targeted campaigns while turning The Iconic’s audience and data into a connected growth engine. Supermarkets still hold a strong advantage because of frequent transactions, loyalty programmes and large store networks. Woolworths’ Cartology and Coles 360 continue to post double-digit revenue growth, supported by extensive customer datasets. However, fashion retailers argue they can offer a more expressive view of consumers, including style preferences, brand affinities, spending habits and aspirational interests. David Jones and Myer are also investing in retail media, using rewards data, store visits and digital audiences to attract advertisers. The challenge will be proving that fashion’s less frequent but more discovery-led shopping journey can deliver scale, trust and measurable value.
IADS Notes: The Iconic’s launch of Iconic Media reflects the broader maturation of retail media from a supermarket-led advantage into a wider retail business model. MBS reported in July 2025 that retail media had evolved from an e-commerce add-on into a strategic revenue stream, driven by first-party data and measurable links between advertising and purchase. Harvard Business Review noted in October 2025 that the sector’s rapid expansion also brings challenges around trust, transparency, ROI measurement and network fragmentation. Internet Retailing reported in December 2025 that retail media was shifting from aggregation to curation, with quality inventory and transparent supply paths becoming more important than ad volume. Inside Retail argued in April 2026 that retail media can help retailers diversify revenue and protect margins during economic pressure. Retail Times showed in June 2026 how John Lewis is strengthening its own retail media offer through first-party data, self-service tools and measurement that connects online advertising with in-store purchases. This context supports the article’s argument that fashion and department stores can compete only if they offer distinctive audiences, dependable data and advertising experiences that protect customer trust.
Can fashion compete with supermarkets in the rush to retail media?
Leadership readiness lags behind AI adoption rate
Leadership readiness lags behind AI adoption rate
What: AI adoption is accelerating, but most organisations lack the leadership and workforce readiness needed to manage AI-enabled work.
Why it is important: This highlights the risk that companies may deploy AI faster than their people, managers and operating models can adapt.
HR Dive reports that AI adoption is no longer the central workplace challenge; the bigger issue is whether leaders and employees are ready to adapt. A ManpowerGroup Talent Solutions study found that only 17% of organisations describe their workforce readiness as “advanced” or “transformational,” meaning AI capabilities are deeply embedded into workflows. Leadership readiness is even weaker. Among 80 C-suite, CHRO and senior talent acquisition leaders surveyed, only 3% said their leaders are highly prepared to guide AI adoption at work. The findings suggest that many organisations are introducing AI faster than they are redesigning work, building skills or preparing managers to lead AI-enabled teams. The article frames the next phase of workplace AI as one of adaptation rather than adoption. As AI becomes embedded in talent processes and workforce systems, success will depend on reorganising work, not simply deploying technology.
Gallup research cited in the article adds that AI adoption is rising while employee engagement remains flat, reinforcing that technology alone does not improve workforce outcomes. Learning and development are presented as key to readiness and engagement.
IADS Notes: AI adoption is increasingly exposing a leadership and workforce readiness gap, with companies discovering that deployment alone does not create transformation. In September 2025, BCG found that AI was reshaping retail workforce structures while only a minority of workers felt prepared for AI-driven change. BCG’s November 2025 work on how CEOs must change work reinforced that leaders need to redesign roles, workflows and collaboration rather than simply introduce new tools. Its March 2026 report on CHRO priorities similarly showed that HR leaders must lead skills-based talent management, digital transformation and workforce development. BCG’s June 2026 research on AI at work stressed that strategy, governance, leadership engagement and human oversight matter more than tools, while Seramount’s June 2026 analysis of psychological safety showed that employees need clear communication, support and safe learning environments to adopt AI effectively.
Why some junior employees work well with AI—and others don’t
Why some junior employees work well with AI—and others don’t
What: A KPMG and University of Texas study shows that AI performance depends less on AI fluency than on human judgment inside AI workflows.
Why it is important: Human judgment, workflow design and process-based assessment are becoming decisive factors in whether AI improves performance.
A Harvard Business Review article based on a KPMG and University of Texas field study finds that early-career employees create value with AI not through AI fluency alone, but through how they direct, evaluate and refine AI output. The study involved 523 U.S.-based KPMG professionals using an AI agent on business-specific tasks benchmarked against an AI-only baseline.
The research identified three profiles. AI amplifiers, representing 50.1% of participants, outperformed the AI baseline by framing problems clearly, applying domain frameworks, challenging assumptions and refining results. AI delegators, at 25.8%, produced work comparable to AI alone by accepting outputs with limited scrutiny. AI apprentices, at 24.1%, performed below the baseline despite strong foundational skills, because their critiques often failed to improve the work. The findings suggest that domain knowledge, critical thinking and AI literacy are necessary but insufficient. Organisations should redesign early-career development around task-based training, visible judgment and workflow-based assessment, evaluating how employees interact with AI rather than only the final deliverable.
IADS Notes: The KPMG and University of Texas study sharpens a growing workforce lesson: AI fluency only creates value when employees know how to direct, challenge and improve machine output. In June 2026, BCG argued that AI upskilling must be embedded in real workflows to translate capability into performance, with judgment, collaboration and problem-solving treated as core skills. Another BCG analysis in June 2026 warned that widespread AI use can erode critical capabilities such as judgment and problem framing if organisations do not design deliberate practice into work. Harvard Business Review’s March 2026 work on expertise similarly showed that generative AI does not make employees experts without training and repeated application, while its March 2026 analysis of entry-level jobs warned that automating junior work can weaken the experiences through which future leaders develop. Seramount’s June 2026 framework reinforced the same boundary: AI can automate and augment many tasks, but decisions involving people, ethics, capability building and accountability still require human judgment.
Why some junior employees work well with AI—and others don’t
New World Annual Report 2024
New World Annual Report 2024
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Takashimaya Financial Statements 2024
Takashimaya Financial Statements 2024
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Shoppers Stop Annual Report 2023-2024
Shoppers Stop Annual Report 2023-2024
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J Front Retailing Integrated Report 2024
J Front Retailing Integrated Report 2024
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Myer Annual Report 2024
Myer Annual Report 2024
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IADS Conference Report Bain & Company: Luxury Panorama, 2026
IADS Conference Report Bain & Company: Luxury Panorama, 2026
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
AGORA: The politicisation of business and consequences for department stores
AGORA: The politicisation of business and consequences for department stores
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
Rarely Heard Voices: AI in retail
Rarely Heard Voices: AI in retail
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:
RLC Fashion Summit 2026
RLC Fashion Summit 2026
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:
Events
Member News
Boyner unveils its new film ad campaign
Boyner unveils its new film ad campaign
What: Boyner is extending its emotional brand platform with a dialogue-free film that positions the retailer as a lifestyle and fashion universe.
Why it is important: Boyner’s film highlights the role of lifestyle narratives, inclusivity and omnichannel communication in strengthening modern retail brands.
Boyner has released a new brand film set aboard a ship, continuing its series of emotional communication campaigns. The dialogue-free film uses visual storytelling to follow different characters across the vessel, capturing small but familiar moments from everyday life before bringing all the storylines together in a shared scene. The campaign builds on Boyner’s earlier brand narratives, including “Bizim Tarzımız Güzel” in 2020, which celebrated Türkiye’s cultural richness and diversity, and “Bi’ Tanısan Seversin” in 2023, which focused on empathy, dialogue and mutual understanding. The new message, “Bu Gemi Hepimizin. Aynı Gemide Birlikte Güzeliz,” carries those themes forward through a story of shared belonging. Everyday cultural details such as tea glasses, backgammon, coffee-cup readings and evil-eye beads create a warm and familiar atmosphere. Boyner says the film reflects its ambition to build an inspiring world where everyone can express their own style. The campaign will run across television, digital platforms, outdoor advertising and social media.
IADS Notes: Boyner’s new brand film extends the retailer’s long-term use of emotional storytelling, creativity and lifestyle positioning to differentiate its department store identity. In August 2026, a Press Release reported that Boyner’s latest campaign uses a dialogue-free cinematic narrative set aboard a ship to express shared belonging, diversity and the idea that different styles and life moments can coexist under one brand universe. This aligns with BoF’s June 2026 coverage of Boyner Group’s Communité concept, which framed the group’s retail strategy around curation, hospitality, community, local relevance and meaningful experiences rather than purely transactional shopping. Boyner’s June 2026 Art Pieces initiative also reinforces this direction, with artist-designed limited-edition tote bags showing how creativity, personalisation and emotional engagement can build authenticity and loyalty. Together, these sources show that Boyner is using both communication and retail concepts to position itself as a lifestyle platform rooted in inclusivity, creativity and customer connection. :cite[ekx,g8q,a31]
Boyner unveils its new film ad campaign
Chalhoub Group teams up with Gap Inc.
Chalhoub Group teams up with Gap Inc.
What: Gap Inc. is partnering with Chalhoub Group to launch Gap, Banana Republic and Athleta across the Middle East.
Why it is important: The partnership shows how global brands are using regional operators and digital-first rollouts to enter high-growth Middle Eastern markets with local relevance.
Gap Inc. has entered a strategic partnership with Chalhoub Group to expand Gap, Banana Republic and Athleta across the Middle East. The Dubai-based luxury retailer and distributor will use its regional expertise to support a phased omnichannel rollout, beginning with online launches in the UAE, Saudi Arabia and Kuwait during the rest of the year, followed by physical stores across the region in 2027. Gap Inc. said the partnership reflects its continued investment in the region and its ambition to connect with customers through locally relevant experiences. Chief business and strategy officer Eric Chan said the deal will help bring the group’s modern American style to one of the world’s most dynamic retail regions. Chalhoub Group, which works with brands including Dyson, Fendi, Jacquemus and Sephora, will help adapt the offer to regional consumers and cultural dynamics. The agreement follows Gap Inc.’s March partnership with Fashionata to bring Gap to Australia, reinforcing its renewed focus on global expansion.
IADS Notes: Gap Inc.’s partnership with Chalhoub Group reflects the growing importance of regional operators, digital-first entry models and local relevance in Middle East retail expansion. In August 2026, WWD reported that Chalhoub and Gap Inc. would bring Gap, Banana Republic and Athleta to the Middle East through a phased online rollout in the UAE, Saudi Arabia and Kuwait, followed by physical stores in 2027. Chalhoub’s ability to execute this model is supported by its regional infrastructure: in October 2025, WWD reported that the group was accelerating Saudi expansion through digital investment, rapid e-commerce delivery and a focus on youthful, digitally savvy consumers. Zawya’s January 2026 coverage of Bain & Company’s Middle East consumer products report showed that MENA growth is being led by the UAE and Saudi Arabia, with consumers prioritising convenience, trust, relevance and digital engagement. Forbes’ March 2026 coverage of Primark and Ulta Beauty’s UAE openings showed how international brands can gain traction by adapting Western formats to local preferences. RLC’s October 2025 coverage of Michael Chalhoub further framed the Middle East as a global growth engine where brands must move early, localise and invest in quality experiences.
Chalhoub Group teams up with Gap Inc.
El Palacio de Hierro’s sales continue growing, with reduced profitability
El Palacio de Hierro’s sales continue growing, with reduced profitability
What: El Palacio de Hierro grew first-half sales by 4.65%, but net income fell 9.46% as profitability remained under pressure.
Why it is important: El Palacio de Hierro’s performance highlights the growing importance of credit and real estate divisions in supporting diversified department store groups.
El Palacio de Hierro continued to grow sales in the first half of 2026, but profitability remained under pressure. The Mexican department store group reported first-half sales of 28.648 billion pesos, up 4.65% year on year, while net income fell 9.46% to 1.264 billion pesos. Operating income also declined, dropping 8.63% to 2.317 billion pesos. The second quarter showed a similar pattern. Revenue rose 5.05% to 15.374 billion pesos, but net income fell 3.56% to 842 million pesos and operating profit declined 6.11%. The results suggest that El Palacio de Hierro is maintaining commercial momentum but facing pressure on margins and operating profitability. The commercial division, which remains the group’s main business, grew 4.4% in the second quarter. However, supporting businesses expanded faster, with the credit division up 12.7% and real estate income up 5.9%. The company has been led by Eléonore de Boysson since June 2025.
IADS Notes: El Palacio de Hierro’s first-half results show that the Mexican luxury department store continues to grow sales, but profitability is becoming harder to protect. In August 2026, Modaes reported that first-half sales rose 4.65% while net income fell 9.46%, with second-quarter revenue up 5.05% and credit and real estate growing faster than the core commercial division. This follows Fashion Network’s May 2026 coverage of first-quarter revenue growth of 4.2% across commercial, credit and real estate, already accompanied by margin pressure. Fashion Network’s June 2026 report on leadership changes under Eléonore de Boysson showed the company strengthening store sales, supply chain and HR leadership to improve operational excellence and agility.
El Palacio de Hierro’s sales continue growing, with reduced profitability
John Lewis’ new sports and wellness departments
John Lewis’ new sports and wellness departments
What: John Lewis is launching Sports & Wellness departments that combine sportswear, wearables, recovery, AI-powered fitness and expert services.
Why it is important: John Lewis’s investment highlights the shift from category-based merchandising to goal-led shopping journeys that combine advice, digital access and local engagement.
John Lewis is launching a new Sports & Wellness concept that brings sportswear, footwear, wearable technology, recovery, AI-powered fitness and expert services into one destination. The multi-million-pound investment is part of the retailer’s wider £800 million transformation programme and will roll out across Oxford Street, Liverpool, Cheadle and Glasgow. Each department spans around 5,000 sq ft and is organised around activities such as running, training and outdoor pursuits rather than traditional product categories. The aim is to support customers shopping around fitness goals, whether training for a marathon, taking up Hyrox or building a healthier lifestyle. The offer includes brands such as Nike, Brooks, Patagonia, Garmin, Oura, Whoop, Therabody, Peloton and NordicTrack. Services include free gait analysis, specialist footwear advice and MagicAI’s intelligent fitness mirror, which provides personalised training, rep counting and form correction. Monthly “Jog Lewis” run clubs will also connect customers with local running communities, product testing and expert advice.
IADS Notes: John Lewis’s Sports & Wellness concept reflects the rapid convergence of fitness, wellness, technology and community inside department store retail. John Lewis is rolling out the concept across Oxford Street, Liverpool, Cheadle and Glasgow, combining sportswear, footwear, wearables, recovery, AI-powered fitness, expert services and run clubs in one destination. Ian Jindal’s June 2026 analysis of the “health hub economy” showed how fitness, wellness, technology and community are becoming connected retail ecosystems where health drives loyalty, data and commerce. WWD’s May 2026 coverage of Harvey Nichols’ wellness floor similarly showed luxury retailers integrating Pilates, treatments, nutrition and holistic health into stores to drive footfall and differentiation. Retail Week reported in November 2025 that Flannels’ Leeds flagship had added a premium health and fitness club combining performance, recovery, activewear and local community engagement. Modaes’ January 2026 coverage of El Corte Inglés’ Puerta del Sol sports destination also showed how department stores are using sports, technical apparel, footwear and major brand shop-in-shops to attract active-lifestyle customers.
Department Stores

Beymen Tersane
Beymen Tersane
What: Beymen Tersane, located in Istanbul, is presented by the IADS (International Association of Department Stores) as a unique expert platform in the world of department stores. This presentation showcases a high-end retail space divided into 8 galleries (represented by the "G" prefix in the report) to guide the user through a curated luxury experience
Why is it important: This visit offers a window into a sophisticated retail model where historical industrial architecture meets modern luxury clienteling. The store is situated in a restored shipyard area, utilizing monumental stone arches, exposed brickwork, and vaulted ceilings to create a dramatic shopping environment that integrates heritage with high-end commerce.
The store's significance lies in its gallery-based operating system which segments the 33,000-square-metre logic into distinct zones. It houses a curated mix of top luxury brands, including dedicated sections for Alaïa, Bottega Veneta, Maison Margiela, and Chanel. Large-scale suspended art installations and the G9 Contemporary Gallery merge the shopping experience with cultural exploration. Furthermore, the G5 Beauty Gallery and Beymen Beauty Studio offer specialized services alongside premium brands like Xerjoff. The use of premium materials, such as veined marble pedestals and metallic spiral staircases, reinforces the store's premium positioning across all levels.

Galeries Lafayette Mumbai
Galeries Lafayette Mumbai
What: Galeries Lafayette Mumbai represents the iconic French department store's first major entry into the Indian luxury market. Located in the historic district of South Mumbai, the store is housed across two heritage buildings, including the former Philips Antiques building, which have been meticulously restored and connected. This flagship brings a distinct Parisian flair to India, offering a curated selection of international luxury houses alongside celebrated Indian designers.
Why it is important: The opening of Galeries Lafayette in Mumbai is a strategic milestone that highlights the growing importance of India as a global luxury destination. It demonstrates a sophisticated localization strategy where the "Art de Vivre" of Paris is adapted to the vibrant cultural context of Mumbai.
The store's importance lies in its architectural dialogue between neo-classical European styles and Indian heritage, creating a unique backdrop for premium retail. By offering exclusive services such as personal shopping and high-end gastronomy, Galeries Lafayette aims to redefine the luxury landscape in India. This project showcases how international retail leaders are investing in heritage preservation and local partnerships to build strong, culturally resonant brand identities in emerging markets.

De Bijenkorf Rotterdam
De Bijenkorf Rotterdam
What: De Bijenkorf Rotterdam is a flagship store located in the heart of the city, recognized as a historical and architectural landmark. Rebuilt after World War II, the store was designed by the architect Marcel Breuer and is a prime example of modernist architecture. The presentation highlights the store's evolution and its role as a premier destination for luxury shopping in the Netherlands.
Why it is important: This visit illustrates the successful integration of a heritage-protected architectural icon with a contemporary, high-end retail strategy. De Bijenkorf has navigated the challenges of a rigid structural layout by creating open, light-filled spaces that emphasize a premium customer journey.
The store's significance lies in its "premium experience" model, which combines exclusive luxury brands with a strong focus on sustainability and local community engagement. It features a diverse range of departments, from high-end fashion and beauty to home and gastronomy, all unified by a consistent elevated aesthetic. The focus is on creating an inspiring environment where retail meets culture, utilizing the building's unique Brutalist character to differentiate itself in the European market.

Hyundai Department Store Apgujeong
Hyundai Department Store Apgujeong
What: Hyundai Department Store Apgujeong, Seoul's first Hyundai flagship opened in 1985, was visited by IADS member CEOs during the Mid-year meeting in June 2025 — generating more questions than any other stop on the tour. The pic report is ready for you, enjoy!
Why it is important: This visit offers a rare window into the operating logic of Korean premium retail, where VIC economics are not a niche strategy but a market-wide system. With ultra-high spend thresholds, hard benefits and cross-partner reciprocity built into every major chain, Korea has quietly developed the world's most sophisticated VIC architecture — and Hyundai Apgujeong, small but razor-sharp, is its clearest illustration.
The 33,000-square-metre store spans six floors across B2 to 4F, housing a curated mix of approximately 60 top luxury brands on the ground and first floors — including Chanel, Hermès, Louis Vuitton and Cartier — alongside a 6,750 sqm premium food hall renovated in 2023 ("Gastro Table"), a boutique cultural space (CH 1985), and dedicated VIC lounges extending to a rooftop garden with a private Atelier bar. Despite its modest footprint by Seoul standards, the store has exceeded KRW 1 trillion in annual sales every year since 2021, reaching KRW 1.2 trillion (€0.75bn) in 2024 — ranking 7th in Korea. The secret lies not in the lounges themselves, but in the operating system behind them: priority allocation of constrained luxury SKUs, appointment-based clienteling, and reciprocity platforms extending benefits abroad through partners such as Hankuku. At Apgujeong, qualifying for Jasmin status requires €42,000 in annual spend; Jasmin Black demands €94,000 — and in Korea, that bar is not exceptional. It is standard.
Check out the photos of Hyundai Department Store Apgujeong
Tech Insights
Partner Exclusive: How to build an effective client retention strategy
Partner Exclusive: How to build an effective client retention strategy
While many new customers may visit a department store during peak season, they might not become loyal clients right away. Many retailers wonder how to apply concrete methods to build meaningful relationships with customers and encourage them to return after peak season. This article offers a few tips to help convert new shoppers into long-term customers through scalable and tested engagement and loyalty techniques, ensuring sustained growth even during slower periods.
Building a seamless omnichannel strategy
During the low season, tracking sales and interactions without any blind spots becomes crucial in determining the effectiveness of specific operations. It also allows retailers to react quickly with targeted campaigns when certain strategies are not successful.
Many department stores face common challenges in tracking sales and communications across different departments and branches. Managing various divisions that cannot access each other's data can become a major obstacle to delivering a great customer experience and achieving growth.
This is why more and more department stores are implementing omnichannel solutions that:
- Track customer behaviour
- Measure the effectiveness of store operations
- Monitor inventory
- Facilitate data transmission between stores and branches
Implementing an omnichannel platform is a crucial first step in building an effective engagement strategy. It streamlines operations, enables data-sharing between branches, aligns different teams to work seamlessly toward results-drivengoals, and, most importantly, ensures consistent client services across all locations.
Anticipating customers' needs and wants
Once an omnichannel strategy is in place, one of the most valuable data points to record is individual customer information. This allows retailers to personalise their offerings and anticipate customer needs.
Personalisation is one of the most significant factors in enhancing client engagement. However, the challenge for most retailers is that personalising their offerings requires understanding individual customer preferences with a scalable method. They must also ensure this information is shared across branches and stores.
One effective solution is creating detailed customer profiles. By storing key client information—such as past interactions with sales representatives, purchase history, brand preferences, and average spending—retailers can better tailor their services to meet individual needs.
On a practical level, sales associates should have easy access to this information to deliver highly personalised recommendations during one-on-one interactions. Not only does this enhance the customer experience, but it also boosts employee confidence by removing the guesswork from the sales process.
Customer engagement is proportional to sales associates' engagement
Sales associates are the face of their company. Giving them more opportunities to engage with clients and rewarding them for doing so successfully is crucial for any retailer's growth. According to the Bureau of Labor Statistics, U.S. retail organisations experience an average employee turnover rate of 60%. High turnover is problematic for retailers, as
studies show that customers are 77% more likely to purchase a product when they trust the person recommending it. In this sense, customer engagement is directly linked to associate engagement and trust.
Empowering sales associates to take ownership of their roles as local experts and even micro-influencers has proven effective, especially when combined with an omnichannel strategy and a highly targeted, personalized approach. More companies are investing in solutions that provide sales associates with opportunities to engage through recommendation pages, social media, appointment scheduling, and direct communication with shoppers outside the store. By increasing touchpoints with customers, retailers can deliver high-quality service while also motivating sales associates to build lasting one-on-one relationships. Tracking successful interactions and rewarding individuals for their engagement has also been shown to boost associate morale and performance.
Building a scalable communication strategy
Nourishing 1-1 relationships with customers is essential to build loyalty, but how can department stores also grow customer engagement through a repeatable and scalable methodology?
It has been demonstrated that personalized interactions and recurring positive engagements drive customer loyalty.
Many retailers have found success by implementing the 3-3-3 or 2-2-2 strategy.
What is the 2-2-2 strategy?
The 2-2-2 strategy in retail communication is a structured approach designed to maintain consistent, personalised follow-ups with customers after a sale or interaction. It nurtures customer relationships and enhances loyalty, proving highly successful within various client bases.
Example:
- 2 days after the sale: Send a thank-you message and offer assistance if needed.
- 2 weeks after the sale: Follow up to ensure the product meets expectations and suggest complementary products based on the initial purchase or recent browsing history.
- 2 months after the sale: Reconnect with the customer to share updates on new arrivals, promotions, or loyalty programs.
The shift from manual to automated processes offers several benefits. Associates no longer need to spend valuable time identifying which customers to contact or tracking down past purchase details. This efficiency allows them to focus on high-value interactions, increasing productivity and optimising clienteling efforts.
Delivering the in-store experience online with AI
E-commerce has become a crucial aspect of the customer buying experience and changed shoppers' habits by providing round-the-clock shopping accessibility. With this new reality, providing personalised responses at any time of the day is becoming an expectation for customers.
While AI cannot replace human recommendations on an emotional level, it can bridge the gap by offering off-hours support and relevant product suggestions when a sales associate is unavailable. AI technology is increasingly tailored to specific retail use cases, making it an essential tool for retailers to consider.
In today's highly competitive market, incorporating AI has become a crucial part in implementing an effective customer engagement journey. A well-designed conversational AI becomes stronger and smarter over time, because it can be trained from your own retail intelligence, allowing it to deliver autonomous, human-like interactions, enhancing the shopping experience. Leveraging years of customer and associate interactions, AI-powered solutions can assist shoppers with visual browsing and personalised product recommendations. Advanced systems also integrate seamlessly with inventory, ensuring only available products are suggested. Additionally, retail-specific AI models can automate product tagging, identifying key features of new items to provide accurate and relevant recommendations during customer interactions.
Conclusion
The key to a successful client retention strategy lies in a retailer's ability to accurately understand their shoppers' needs and deliver personalised outreach. By incorporating automation, empowering sales associates, leveraging AI, and implementing a scalable engagement strategy, retailers can build a strong foundation for long-term success.
*Salesfloor stands as an award-winning clienteling and customer engagement platform, empowering retailers to foster meaningful conversations, drive recommendations, and boost sales. By offering innovative tools such as clienteling, virtual shopping, and conversational AI, Salesfloor enables seamless customer engagement across all channels.
Trusted by over 50,000 associates from leading retailers in apparel, beauty, jewelry, and beyond, Salesfloor is redefining the role of store associates in the modern retail landscape. Renowned brands such as Saks Fifth Avenue, Bloomingdale's, and Chico's rely on Salesfloor to achieve measurable results, including higher online conversion rates, larger basket sizes, and reduced return rates.*
Learn more about Salesfloor here
Protecting Customer Trust: The Role of Cybersecurity in Retail
Protecting Customer Trust: The Role of Cybersecurity in Retail
In the competitive world of retail, fostering strong customer trust is no longer a nicety, it's a necessity. Consumers entrust department stores with sensitive personal and financial information, making a secure shopping experience an absolute priority. However, the digital age has introduced a multitude of sophisticated cyber threats. From large-scale data breaches to targeted phishing scams, retailers face a constant uphill battle to safeguard customer information. This is where robust cybersecurity becomes the linchpin. By implementing strong data security measures, department stores can build customer confidence, cultivate lasting loyalty, and ensure a safe and secure shopping experience for all.
Unfortunately, the consequences of failing to prioritize cybersecurity can be severe. Data breaches, which occur when sensitive information like customer names, payment details, or addresses are compromised, can have a devastating impact on retailers. The financial repercussions are significant, with potential costs including hefty regulatory fines, expensive credit card fraud mitigation efforts, and a decline in sales due to customer churn.
Even more damaging, however, is the erosion of customer trust that follows a data breach. When consumers learn their personal information has been exposed, they may feel vulnerable and question the retailer's commitment to data security. This loss of trust can translate into a significant shift in shopping habits, with customers taking their business elsewhere and potentially sharing their negative experiences with others, further damaging the retailer's reputation.
Fortunately, there's a powerful tool at retailers' disposal to combat cyber threats and build customer confidence: cybersecurity. Cybersecurity encompasses a range of practices and technologies designed to safeguard data and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction. By implementing robust cybersecurity measures, department stores can demonstrate their commitment to protecting customer information. This includes essential steps like data encryption, which scrambles sensitive data to render it unreadable in the event of a breach. Secure payment gateways further fortify the checkout process, ensuring customer financial information remains protected during transactions. Additionally, employee training plays a crucial role. Educating staff on cybersecurity best practices, including identifying phishing attempts and proper data handling procedures, strengthens the overall security posture. These proactive measures not only safeguard sensitive information but also send a clear message to customers: their trust and security are paramount. This commitment to data security fosters customer confidence, encourages continued patronage, and ultimately strengthens the department store's competitive edge.
However, building trust goes beyond just implementing strong cybersecurity measures. Transparency is equally important. Customers should also understand that a retailer is taking active steps to make sure their information is protected. Retailers can achieve this transparency by clearly communicating their cybersecurity practices. This includes readily available data privacy statements that outline how customer information is collected, used, and secured. Additionally, pursuing recognized security certifications demonstrates a department store's commitment to meeting rigorous industry standards for data protection. By maintaining clear and open communication about data security, retailers can address customer concerns, build trust, and foster a sense of security that keeps them coming back for a positive shopping experience.
By prioritizing robust cybersecurity and open communication, department stores can ensure a secure and trustworthy shopping experience for all. IADS has a partnership with the Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC) to provide cybersecurity resources for all IADS members. To learn more, visit rhisac.org/IADS.
Partner Exclusive: Elevating Customer Experience through Employee Experiences in Department Stores
Partner Exclusive: Elevating Customer Experience through Employee Experiences in Department Stores
Over the last decade, department stores – once shining beacons of commerce and consumer culture – have found themselves increasingly under pressure. From the impact of the pandemic to the relentless rise of eCommerce, deepening labour shortages, and shifting shopper preferences, these venerable institutions are realising that they must adapt, or risk fading into irrelevance. Just look at Macy's – a retail icon that grew at an incredible rate in the early 2000s, now confronting mass closures to stave off the creeping threat of unproductiveness.
Set against this challenge, a new vision is emerging – one that views digitalization not as a threat, but as an opportunity to redefine the department store experience for a new omnichannel era. Around the world, forward-thinking retailers are leveraging innovative strategies and technologies to streamline operations, engage employees, and delight customers in ways that online commerce simply cannot match.
Why customers pick department stores in the eCommerce era
Department stores have a unique ability to turn shopping into a fun, social experience. They are vibrant hubs of activity with new collections and sales, especially during festive seasons, and deliver the experiential retail that customers crave. The presence of helpful and knowledgeable sales associates elevates this experience, providing the all-important human touch while facilitating easy, consumer-friendly policies. Great customer service is crucial not only for attracting shoppers to stores, but also for encouraging them to spend more –according to Alice POS, 42% of Americans will stop shopping with a brand after just two bad experiences, while 52% of consumers say they have made an additional purchase from a company after receiving positive customer service.
To deliver on the promise of experiential shopping, department stores must empower and motivate the people who bring in-person shopping to life: their frontline employees. Retail executives that invest in their customer-facing staff, providing them with the knowledge, skills, and support they need to excel, are better positioned to create the kind of personalised, memorable experiences that keep customers coming back time and time again.
Frontline tech delivers an outstanding shopper experience
This people-centric approach is exemplified by the partnership between Central and Robinson Department Stores (CDS), one of Thailand's largest department store chains, and YOOBIC, a virtual employee engagement platform designed for frontline teams. In 2020, CDS announced plans to merge the processes and support teams from its Central and Robinson brands to offer shoppers an unrivalled brick-and-mortar retail experience. The ambition was big – to create Thailand's first truly omnichannel department store – but so too were the hurdles: fragmented communication, inconsistent task execution, and a lack of accountability and visibility into store performance.
To overcome these obstacles, CDS turned to YOOBIC. Thanks to the platform's targeted, role-based communication tools, the retailer is now able to ensure the right operational information reaches the right employees at the right time, fostering greater consistency and compliance across its locations, like Visual Merchandising updates. YOOBIC's task management features provide Central Retail's leadership with real-time visibility into store execution, enabling them to track key performance indicators and hold teams accountable for results.
The benefits of the partnership extended far beyond operational efficiency, however. By creating digital communities within each of its 77 stores, CDS has fostered a greater sense of connection and belonging among its 4,000-strong frontline workforce. The platform's mobile-first learning and development system has also opened the door to bite-sized, on the-go training, empowering team members with the knowledge and skills needed to deliver exceptional customer experiences.
CDS's commitment to employee development is exemplified by their upcoming relaunch of training programs, which will offer regular incentives for top performers during the initial months, supported by in-person field coach teams who'll promote a blended digital and face to-face learning approach. The workforce's enthusiasm for professional development and digitised workflows is already evident in the impressive 85% Weekly Active Users (WAU) on the YOOBIC platform, sustained over the past 5 months, and the creation of 400,000 missions in the last year, which have had an impressive 87% completion rate. Effective employee training and development has also been crucial for attracting and retaining talent –according to a YOOBIC survey, 49% of frontline workers don't think that onboarding prepared them well for their jobs, while 64% want opportunities for career growth within the organisation.
Tapping into employees' creativity and passion
The lessons of YOOBIC and CDS's collaboration highlight the transformative impact of structured operational communication for store teams, moving beyond basic tools like emails, Whatsapp, or Line to a unified and intuitive communications platform. YOOBIC has not only enabled seamless communication among store staff, however, but has also provided a direct channel for the C-Suite to engage with frontline workers. This direct contact allows senior management to share their vision, provide guidance, and gain valuable insights from the employees who interact with customers daily. Throughout Southeast Asia – and indeed across the globe – department stores are waking up to the fact that their most valuable asset is their people. By giving frontline workers a voice, a sense of purpose, and the tools to succeed through advanced communication strategies, retailers can tap into a wellspring of creativity, passion, and customer-centricity that no eCommerce algorithm can replicate.
Of course, this transformation is not without its challenges. Shifting long-standing practices, investing in new technologies, and fostering a culture of continuous learning and innovation requires vision, commitment, and resources. But for department stores that get it right, the rewards are immense – not just in terms of sales and market share, but in the creation of a more vibrant, engaging, and human-focused retail landscape.Today, CDS enjoys a more knowledgeable and empowered workforce, better equipped to deliver personalised and exceptional shopping experiences. The sense of community and purpose fostered among the company's employees is a huge part of this, not only improving job satisfaction and retention, but also promising a positive impact on customer loyalty and sales.
As CDS continues to invest in its teams and technology, it sets a powerful example for others seeking to thrive in an increasingly competitive and digital world. The success of the brand's partnership with YOOBIC demonstrates that by prioritising the human element in retail, department stores can create a more resilient, adaptable, and profitable future.So, to department store leaders around the world, the message is clear: embrace the power of your people, and let digitalization be the catalyst for a retail renaissance that will stand the test of time. The future of your industry – and the hearts and minds of your customers – depends on it.

Fabrice Haiat - CEO & Co- founder / YOOBIC
YOOBIC is the #1 frontline digital workplace, dedicated to addressing frontline teams' challenges. The platform provides communication, learning and development, operations, and HR teams with the app they need to drive operational excellence while drastically improving the frontline employee working experience.
YOOBIC was founded in 2014 by 3 brothers, Fabrice, Avi and Gilles Haïat. Together they created a unique digital workplace that helps businesses empower their frontline teams for success, wherever they are, through effective communication, mobile learning and, digitized task management - all in one place.
Digital luxury: Brands navigating the intersection of technology and high-end fashion
Digital luxury: Brands navigating the intersection of technology and high-end fashion
At the forefront of luxury retail, the convergence of technology and high-end fashion is redefining elegance and sophistication. In this digital era, luxury brands are leveraging innovative technologies to enhance the customer experience and stay ahead of evolving trends. From immersive virtual boutiques and augmented reality try-on experiences to blockchain authentication and personalized AI-driven recommendations, the fusion of technology and luxury fashion is creating unparalleled levels of engagement and exclusivity. Digital fashion shows offer global audiences unprecedented access to high-fashion runway events, while interactive experiences blur the lines between the physical and virtual worlds. As luxury brands navigate this intersection of technology and fashion, they are reshaping the retail landscape and redefining the standards of opulence and innovation.
Retail Hub, our partner dedicated to innovation, is constantly monitoring potential start-ups for IADS' members, including the latest brands bridging the gap between technological innovation and luxury fashion. Explore the initiatives of startups selected by the Retail Hub such as Beyond The Runway, Fringuant, and Emperia, BuyBuddy pioneering solutions to navigating the intersection of technology and high-end fashion and more by clicking below.
Cybersecurity
RH-ISAC Intelligence Trends Summary: April-June 2026
RH-ISAC Intelligence Trends Summary: April-June 2026
What: Retail cyber risk remained stable but intense in Q2 2026, with rising ransomware activity, impersonation domains, and remote access malware among the key concerns.
Why it is important: This is significant because it connects persistent retail threat patterns with recent evidence of rising account fraud, ransomware disruption, phishing, and remote access malware.
RH-ISAC’s Q2 2026 intelligence summary shows a largely stable threat landscape for retail and hospitality, with threat actors continuing to rely on familiar vectors such as fraud, social engineering, and malware. Intelligence sharing volumes rose significantly from Q1, although the main discussion categories remained broadly unchanged.
The report highlights a sharp rise in domains submitted by members, with more than 106,000 reported in Q2, largely linked to impersonation activity. This points to continuing brand abuse, phishing, and customer trust risks across consumer-facing businesses. Malware reporting also shifted: Amadey disappeared from the top trends after its Q1 appearance, while NetSupportManager RAT surged, suggesting greater use of remote access tooling.
Threat actor reporting stayed mostly consistent, though APT29, BazarCall, and Team PCP replaced MageCart and TA558 as notable trends. Feedly industry tracking showed little change in targeted industries, malware types, attack types, or company-size targeting, but The Gentlemen ransomware group emerged as a key actor. Restaurants continued to contribute unusually strong intelligence sharing relative to their membership weight.
IADS Notes: The RH-ISAC Q2 2026 intelligence summary reinforces a pattern already visible across recent retail cybersecurity reporting: cyber risk is becoming a business resilience issue rather than a narrow IT concern. In July 2026, Retail Insight Network linked retailers’ exposure to the combination of customer data, loyalty systems, payments, omnichannel operations, and connected supply chains, while RH-ISAC in June 2026 showed how account takeovers, loyalty fraud, synthetic identities, and bot-driven attacks are professionalising fraud against retail accounts. RH-ISAC’s March 2026 incident response findings further underline the financial and operational damage caused by ransomware and third-party breaches, while its November 2025 reporting on remote monitoring tools connects directly to the Q2 shift toward remote access malware. The February 2026 RH-ISAC analysis of QR-code phishing also supports the report’s warning that impersonation and social engineering remain central threats to customer trust and retail operations.
Cybersecurity brief: Scattered Spider, AI, and evolving cyber threats
Cybersecurity brief: Scattered Spider, AI, and evolving cyber threats
Key Takeaways
- Cybersecurity is the rare domain where direct competitors are explicitly encouraged to collaborate. CISA in the US, ENISA in the EU, the NCSC in the UK and Interpol all promote ISAC-style sharing structures; the parallel drawn by RH-ISAC is aviation safety, a category where no operator competes on how safe its aircraft are. RH-ISAC already holds more than two dozen recordings of Scattered Spider help-desk calls, with phone numbers, IP addresses and scripts, because member companies submitted them.
- 76% of security budgets are flat or barely growing. The binding constraint on CISOs is no longer money but the speed at which the business is demanding AI. Roughly 3/4 of CISOs expect flat or marginal budget growth, headcount is tilting toward reducing contractors, and the first-ranked constraint is the velocity of AI capabilities being shipped without the security checks that should accompany them. AI also appears for the first time as a defensive solution (fraud detection, threat detection, vulnerability management).
- The attack surface is human, not technical: Scattered Spider walks through the help desk. The operating script is consistent enough that RH-ISAC now plays the recordings as training material: an operator calls the
internal IT help desk impersonating a locked-out employee, supplies a callback number when challenged, and the help desk worker completes the reset. Secondary techniques include MFA fatigue and fake internal login pages that exploit the habit of Googling the login URL rather than using a bookmark. The operative skill is conversational, not technical. - The mitigation posture : harden the help desk, kill SMS-based MFA, train staff to read the red flags. No remote password or MFA reset without strong verification — companies now require physical presence in a store with a manager who verifies identity in person. Authenticator-app MFA replaces six-digit SMS or email codes, because SIM swapping makes phone-number-based MFA structurally weak. Frontline staff, helpdesk
agents and store managers are trained to treat unusual signals, a “security sixth sense” across the organisation rather than concentrated in the security function. - The economic logic shifted to pure data extortion, with third-parties as the dominant entry point. Corporate backup discipline has improved enough that encrypting systems is no longer a sufficient lever; the
current pattern increasingly skips the system lock and goes directly to data theft and threat of publication. The Canvas campaign extracted approximately 275 million student records from nearly 9,000 educational institutions through a single vendor — and when victims did not pay, the threat actors began impersonating journalists to pressure leadership. - AI is changing the unit economics for the attacker. Voice mimicry, higher-quality phishing emails and visual impersonation are becoming cheaper to produce; the same techniques that make legitimate marketing more effective make criminal impersonation more effective. Air France's partnership with Starlink for in-flight connectivity is now generating cabin-crew training scenarios for cases such as a passenger blackmailed midflight by an AI-generated relative claiming abduction, with fake video sent to the device.
Cybersecurity brief: Scattered Spider, AI, and evolving cyber threats presentation
What makes retail so attractive to cyber attacks?
What makes retail so attractive to cyber attacks?
What: Retailers are increasingly attractive targets for cyber attackers because they hold valuable customer data while relying on interconnected payment, loyalty, omnichannel, and supply chain systems.
Why it is important: The rise in ransomware, third-party breaches, loyalty fraud, and AI-enabled attacks shows that retailers must treat cybersecurity as a board-level business risk, not just an IT concern.
Retail has become one of the most attractive sectors for cyber attackers because it combines rich customer data with business-critical digital operations. Retailers collect payment details, loyalty information, purchase histories, and personal data, all of which can be monetized through fraud, identity theft, phishing, or account takeover. At the same time, omnichannel retail has expanded the attack surface through e-commerce platforms, mobile apps, digital wallets, POS systems, click-and-collect, IoT devices, and connected supply chains. Criminals often exploit weaker third-party providers or legacy systems to access wider retail networks. Operational disruption is especially damaging in retail, where ransomware attacks during peak trading periods can halt payments, deliveries, inventory systems, and customer communications within hours. As AI-enabled threats, loyalty fraud, and bot-driven attacks grow more sophisticated, cybersecurity must be treated as a strategic business resilience issue. Protecting customer trust, revenue, vendor governance, and operational continuity now requires board-level attention, employee training, and integrated security planning.
IADS Notes: The Retail Bulletin in August 2025 identifies ransomware, phishing, credential stuffing, POS vulnerabilities, data breaches, and omnichannel growth as major cybersecurity challenges for retailers, making resilience, staff training, vendor management, and integrated security strategies essential. Retail Week in July and August 2025 shows the scale of the exposure, reporting that 80% of leading UK retailers faced at least one critical cyber threat and that attacks on M&S, Harrods, and Co-op exposed third-party vulnerabilities, operational disruption, customer trust erosion, and rising cyber insurance premiums. RH-ISAC in March 2026 confirms that retail cyber incidents are becoming more sophisticated and financially damaging, with ransomware and third-party breaches causing downtime, profitability impact, and reputational harm. Co-op’s experience, covered by Retail Week in September 2025, illustrates the operational stakes, with more than £120 million in profit loss, £300 million in lost sales, manual order processing, and disrupted supply chains. Inside Retail in February 2026 shows similar consequences at Coupang, where a breach involving more than 33 million customer records damaged sales, triggered losses, and led to regulatory scrutiny. The Robin Report in August 2025 and BCG in August 2025 add that AI is expanding the threat landscape through prompt injection, data manipulation, social engineering, and AI-powered attacks, while RH-ISAC in June 2026 highlights the rise of account takeovers, loyalty fraud, synthetic identities, and bot-driven attacks. These sources show that cybersecurity has become a core retail resilience issue, linking customer trust, operational continuity, vendor governance, AI risk, and profitability.
Inside the account fraud economy: Q1 2026 benchmarks for retail
Inside the account fraud economy: Q1 2026 benchmarks for retail
What: Organised fraud groups are increasingly targeting retail accounts and loyalty programmes with advanced verification bypass and synthetic identity techniques, driving a surge in account takeovers and bot-driven attacks.
Why it is important: This escalation reflects a broader industry shift toward more targeted, sophisticated fraud, requiring retailers to strengthen layered defenses and real-time monitoring.
The Q1 2026 RH-ISAC benchmarks reveal a significant transformation in the account fraud landscape, with organized criminal groups leveraging advanced verification bypass and synthetic identity techniques to exploit retail, QSR, airline, and accommodation accounts. Retailers are now facing a surge in account takeovers, loyalty program abuse, and bot-driven attacks, particularly around high-demand products. The professionalisation of fraud services, including KYC and 2FA bypass, has made it increasingly difficult for traditional security measures to keep pace. Macroeconomic pressures, such as inflation and geopolitical instability, have further increased the value of stored credits and loyalty points, making them prime targets for sophisticated fraudsters. As legal and regulatory frameworks struggle to keep up with rapid technological advances, retailers are compelled to implement their own adaptive security strategies, focusing on layered defences, real-time intelligence sharing, and cross-functional collaboration to protect customer trust and business continuity.
IADS Notes: The Q1 2026 RH-ISAC findings align with recent industry reports, such as the May 2026 Retail Dive analysis documenting a shift toward targeted account takeovers and the March 2026 RH-ISAC emphasis on integrating cybersecurity with fraud prevention. The June 2025 Sainsbury’s loyalty programme breach illustrates the vulnerability of digital assets, while the March 2026 and April 2026 articles highlight how rapid AI adoption is outpacing security measures, exposing retailers to new risks. These developments collectively underscore the urgent need for adaptive, layered security and real-time monitoring to sustain customer trust and operational resilience.
Inside the account fraud economy: Q1 2026 benchmarks for retail
Department Stores

Beymen Tersane
Beymen Tersane
What: Beymen Tersane, located in Istanbul, is presented by the IADS (International Association of Department Stores) as a unique expert platform in the world of department stores. This presentation showcases a high-end retail space divided into 8 galleries (represented by the "G" prefix in the report) to guide the user through a curated luxury experience
Why is it important: This visit offers a window into a sophisticated retail model where historical industrial architecture meets modern luxury clienteling. The store is situated in a restored shipyard area, utilizing monumental stone arches, exposed brickwork, and vaulted ceilings to create a dramatic shopping environment that integrates heritage with high-end commerce.
The store's significance lies in its gallery-based operating system which segments the 33,000-square-metre logic into distinct zones. It houses a curated mix of top luxury brands, including dedicated sections for Alaïa, Bottega Veneta, Maison Margiela, and Chanel. Large-scale suspended art installations and the G9 Contemporary Gallery merge the shopping experience with cultural exploration. Furthermore, the G5 Beauty Gallery and Beymen Beauty Studio offer specialized services alongside premium brands like Xerjoff. The use of premium materials, such as veined marble pedestals and metallic spiral staircases, reinforces the store's premium positioning across all levels.

Galeries Lafayette Mumbai
Galeries Lafayette Mumbai
What: Galeries Lafayette Mumbai represents the iconic French department store's first major entry into the Indian luxury market. Located in the historic district of South Mumbai, the store is housed across two heritage buildings, including the former Philips Antiques building, which have been meticulously restored and connected. This flagship brings a distinct Parisian flair to India, offering a curated selection of international luxury houses alongside celebrated Indian designers.
Why it is important: The opening of Galeries Lafayette in Mumbai is a strategic milestone that highlights the growing importance of India as a global luxury destination. It demonstrates a sophisticated localization strategy where the "Art de Vivre" of Paris is adapted to the vibrant cultural context of Mumbai.
The store's importance lies in its architectural dialogue between neo-classical European styles and Indian heritage, creating a unique backdrop for premium retail. By offering exclusive services such as personal shopping and high-end gastronomy, Galeries Lafayette aims to redefine the luxury landscape in India. This project showcases how international retail leaders are investing in heritage preservation and local partnerships to build strong, culturally resonant brand identities in emerging markets.

De Bijenkorf Rotterdam
De Bijenkorf Rotterdam
What: De Bijenkorf Rotterdam is a flagship store located in the heart of the city, recognized as a historical and architectural landmark. Rebuilt after World War II, the store was designed by the architect Marcel Breuer and is a prime example of modernist architecture. The presentation highlights the store's evolution and its role as a premier destination for luxury shopping in the Netherlands.
Why it is important: This visit illustrates the successful integration of a heritage-protected architectural icon with a contemporary, high-end retail strategy. De Bijenkorf has navigated the challenges of a rigid structural layout by creating open, light-filled spaces that emphasize a premium customer journey.
The store's significance lies in its "premium experience" model, which combines exclusive luxury brands with a strong focus on sustainability and local community engagement. It features a diverse range of departments, from high-end fashion and beauty to home and gastronomy, all unified by a consistent elevated aesthetic. The focus is on creating an inspiring environment where retail meets culture, utilizing the building's unique Brutalist character to differentiate itself in the European market.

Hyundai Department Store Apgujeong
Hyundai Department Store Apgujeong
What: Hyundai Department Store Apgujeong, Seoul's first Hyundai flagship opened in 1985, was visited by IADS member CEOs during the Mid-year meeting in June 2025 — generating more questions than any other stop on the tour. The pic report is ready for you, enjoy!
Why it is important: This visit offers a rare window into the operating logic of Korean premium retail, where VIC economics are not a niche strategy but a market-wide system. With ultra-high spend thresholds, hard benefits and cross-partner reciprocity built into every major chain, Korea has quietly developed the world's most sophisticated VIC architecture — and Hyundai Apgujeong, small but razor-sharp, is its clearest illustration.
The 33,000-square-metre store spans six floors across B2 to 4F, housing a curated mix of approximately 60 top luxury brands on the ground and first floors — including Chanel, Hermès, Louis Vuitton and Cartier — alongside a 6,750 sqm premium food hall renovated in 2023 ("Gastro Table"), a boutique cultural space (CH 1985), and dedicated VIC lounges extending to a rooftop garden with a private Atelier bar. Despite its modest footprint by Seoul standards, the store has exceeded KRW 1 trillion in annual sales every year since 2021, reaching KRW 1.2 trillion (€0.75bn) in 2024 — ranking 7th in Korea. The secret lies not in the lounges themselves, but in the operating system behind them: priority allocation of constrained luxury SKUs, appointment-based clienteling, and reciprocity platforms extending benefits abroad through partners such as Hankuku. At Apgujeong, qualifying for Jasmin status requires €42,000 in annual spend; Jasmin Black demands €94,000 — and in Korea, that bar is not exceptional. It is standard.
Check out the photos of Hyundai Department Store Apgujeong





