What: Second-hand luxury retailer, Monogram, has moved into Galeries Lafayette Haussmann.

Why it is important: Galeries Lafayette is combining luxury and circular fashion to enhance its commitment to responsible fashion while also appealing to its customers.

Second-hand fashion is becoming more popular among consumers. With the Monogram installation at Galeries Lafayette Haussmann, shoppers can find a range of second-hand luxury goods ranging from EUR 500 to EUR 4,000, ready-to-wear, shoes and a selection of accessories ranging between EUR 150 and EUR 450 euros.

Monogram Paris moves to Galeries Lafayette Haussmann

What: Sandra Weber has been named as Director of Strategy and Development.

Why it is important: The role will be charged with identifying growth vectors and opportunities for development at a challenging time for French department stores.

Weber is replacing Olivier Bron, who left to become chief executive officer of Central Group' s Central and Robinson department stores in Thailand. She reports to executive chairman Philippe Houzé.

Weber is an expert in corporate finance and strategic management who began her career at Goldman Sachs. She has also held positions at Go Sport and Casino.

The appointment of the role comes at a critical time in French retail as the sector has struggled with sluggish demand and a sharp drop in foreign tourism.

Galeries Lafayette Group Names New Director of Strategy and Development

What: After the acquisition of Konen and Bram, the retailer has named the leadership team for these expansions.

Why it is important: The new team is the next key step in the integration process for a successful expansion strategy.

The new team for the acquired houses, Konen Munich and Bram Luxembourg, has been announced. The Konen houses in Munich will be managed by the dual leadership of René Weise, formerly head of sales at Konen and Bram, and Alexander Entov, formerly house manager for Breuninger in Freiburg.

Kai Neu will step in as the new house manager for Bram house in Luxembourg and David Lehr will be taking over the management of the Freiburg house.

Breuninger appoints managing directors for the Munich and Luxembourg houses

What: SM Investments Corporation reported a consolidated net income of PHP 20.1 billion (EUR 405 million) in the January to June period, from PHP 7.1 billion (EUR 143 million) in the same period last year.

Why it is important: Retail revenue growth was 17.8% in Non-Food, with online and Call To Deliver accounting for 13.1% of total revenues.

SM Investments Corporation consolidated revenues rose 4% to PHP 193.5 billion (USD 3.897 billion) in the first half from PHP 185.5 billion (USD 3.736 billion) in the same period last year.

Banking accounted for 58% of SM's reported net earnings from core businesses, followed by property at 28% and retail at 14%.

In the six months ended June 2021, SM Retail and its affiliates added 159 stores while banks increased their network by 22 branches. SM Development Corporation launched two residential projects, Sands Residences in Manila and Cheerful 2 Residences in Pampanga bringing over 3,900 new units to the market.

SM Retail reported revenues of PHP138.2 billion, slightly lower than PHP139.2 billion in the previous period. Revenue growth was 17.8% in Non-Food, with online and Call To Deliver accounting for 13.1% of total revenues. Retail net income was at PHP 3.6 billion (USD 73 million) from PHP 522.0 million (USD 11 million) in the previous period, benefitting from cost reductions implemented in the first quarter across all formats and further efficiencies in the second quarter.

SM financial report

What: Sogo Hong Kong announces results for the six months ended 30 June.

Why it is important: The department store returns to profit with solid strategy and enhanced business capabilities.

Hong Kong retail market returned to growth in the first half of 2021 but the recovery has been limited as inbound tourism remained frozen. For the period under review, and comparing to 2020, the Group's total gross sales proceeds increased by 8% and turnover rose by 12.8% as a result of improvement in customer foot traffic at the stores of the Group amid the gradual easing of social distancing rules with pandemic receding in the city.

The Group recorded a net profit attributable to owners of the Company of HKD 220.0 million, whereas it was a loss of HKD 226.9 million in the corresponding period last year. The profit was mainly attributable to growth in retail sales as a result of improvement in customer foot traffic.

In view of the prevailing challenging operating environment and persistent uncertainties over the pace of market recovery, the board of directors has resolved not to recommend the payment of an interim dividend.

With gradual easing of containment measures and the Group's effective theme-based promotions introduced to attract footfall and encourage repeat purchase, sales at the flagship SOGO Causeway Bay increased 8.2% from a year earlier whereas SOGO Tsim Sha Tsui sales grew 6.8%. Both stores saw a rebound in average ticket size.

With the exception of certain delays that were encountered last year, construction works of the Group's Kai Tak Project during the period have been progressing smoothly as scheduled. The Kai Tak retail complex is expected to be in business in 2023.

Sogo Hong Kong 2021 interim results

What: The retailer is expanding its fashion department with new international brands.

Why it is important: From the beginning of September 2021, and in addition to the private label 'basics', more than 20 new brands will be launched in stores and online.

The fashion department is based on three criteria: young, modern and classic. Manor will also launch multi-brand spaces such as 'The Lab' mixing brands to offer many possibilities for combinations.

Brands like Levi's and Vila will be available in more stores. In addition, new brands such as Noisy May, North Face, Dr. Denim, Moss Copenhagen, La Petite Étoile, Second Female, Minimum and many others will be added to the offer.

 New fashion brands and expansion of the fashion departments

What: Breuninger will open a new flagship store in the Westfield Hamburg-Überseequartier district, its first location in northern Germany.

Why it is important: Breuninger shows the continued importance of brick-and-mortar retail through the expansion into a new market.

Breuninger has been planning to expand to Hamburg for some time as it is a premium location for the retailer. In the past, Breuninger was able to reach Hamburg through its online shop, but the physical store is an important step in the retailer's strategy to maintain consistent growth.

Breuninger expands its presence to Hamburg

What: EBITDA is EUR 81 million with a topline growth of 50%.

Why it is important: Excluding the impact of tourism and the travel business, the first-quarter results came in very close to those of 2019, despite ongoing restrictions.

El Corte Inglés Group staged a strong recovery in the first quarter of 2021 following a year living with the pandemic. Revenue was 50.2% higher year-on-year at EUR 2.51 billion.

The measures rolled out over the past year translated into growth in online sales of 119% by comparison with the first quarter of 2019. EBITDA came to EUR 81 million, an improvement of EUR 276 million from the first quarter of 2020, while cash flow from operations increased by over EUR 1 billion.

The measures rolled out by the Group over the past year drove growth in the online business, where sales rose by 119% compared to the same period of 2019, increasing from 5.3% of total revenue to 12.84%.

El Corte Inglés first-quarter results

What: Sy family joined a USD 1.6 million investment round in NextPay, a Filipino financial technology startup that allows small businesses to access banking services normally reserved for large companies.

Why it is important: With a pay-per-use model, low fees and fast processing, NextPay lets micro and small businesses use financial services such as digital invoicing, cash management, and batch payments to any bank or e-wallet in the country.

"This investment supports our goal of putting the power of big banks in the hands of small businesses," NextPay CEO and co-founder Don Pansacola said in a statement.

NextPay chief experience officer and co-founder Aldrich Tan said the company would roll out new products, including corporate cards, loans, and "integration with other platforms" focused on smaller businesses.

Sy family of SM Group backs PH fintech firm in $1.6M fund round

What: SM Investments Corporation sealed its commitment as a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) in a strong bid to ensure its businesses meet global sustainability targets.

Why it is important: SM has consistently taken the agenda of climate change as an integral part of its business strategy.

TCFD is a globally recognized set of recommendations by the Financial Stability Board and is one of the frameworks recommended by the Securities and Exchange Commission of the Philippines on Environmental, Social and Corporate Governance (ESG) reporting. Joining more than 2,300 supporters in demonstrating a commitment to building a more resilient financial system and safeguarding against climate risk through better disclosures, the adoption of these recommendations helps for more effective climate-related disclosures.

SM has consistently taken the agenda of climate change as an integral part of its business strategy and how this creates lasting value for all its stakeholders, identifying UN Sustainable Development Goal (SDG) 13, Climate Action as one of its focus SDGs. Its Climate Action Strategy advances two priorities that go hand-in-hand: resilience to equip its stakeholders and host communities for climate emergencies and sustainability to help mitigate the climate crisis.

Through SM's leadership role in UN ARISE, the Private Sector Alliance for Disaster Resilient Societies, it calls for a collective effort to incorporate disaster resilience as a core strategy of its business. Leading by example, it allocates 10% of its capital expenditures to disaster resiliency and sustainability in the design of its malls and integrated lifestyle cities.

SM accelerates efforts on climate action signs on to support climate disclosures 

What: With an average of 12.8 hours per employee, the company has invested more than EUR 14.3 million in training.

Why it is important: The average age of the workforce is 44.1 years, which demonstrates the company's ability to retain employees. El Corte Inglés is committed to training as a key tool to retain and attract talent.

This total hours include 614,833 hours of face-to-face courses and 545,948 hours online. Almost 27,000 employees have been trained this year to integrate online sales with face-to-face sales and training in product knowledge and market trends.

El Corte Inglés provided more than 1.1 million hours of training to its employees in 2020

What: Last year, the retailer reached a turnover of EUR 600 million outside of Spain.

Why is it important: Portugal and Mexico are the two most important markets.

After Spain, the first market outside for the company is Portugal, where it has two department stores - one in Lisbon and one in Porto - with a turnover of EUR 397 million in the last financial year. The second most important market is Mexico, with 50 Sfera stores and 88 Viajes El Corte Inglés offices, and sales in 2020 of EUR 92.9 million and the third Chile, already further away with EUR 13.4 million, which adds 58 stores and 10 travel agencies.

As far as the international presence is concerned, the 60 franchised distribution points that El Corte Inglés has in Switzerland, the 42 in Peru or the 28 in Thailand stand out. Apart from the business in Portugal, as a whole, the group has 56 Sfera stores outside Spain, 262 franchisees and 133 Travel Agency El Corte Inglés.

El Corte Inglés also maintains its commitment to the internationalization of its own brands in the different categories, where fashion and food stand out.

Germany is one of the markets where the sports brands Boomerang and Mountain Pro have the largest presence with a total of 120 points of sale in the country, thanks to the alliance with the department store Karstadt Kaufhof Gallery. But El Corte Inglés also has agreements to sell some of its own brands in countries such as Russia, Andorra or Paraguay, among others.

In Ecuador, own-brand products are sold through La Favorita supermarkets, the leader in the distribution of mass consumption in this country. Grupo Rey supermarkets, in Panama, market a wide assortment of own-brand products and in Mexico the presence of the El Corte Inglés assortment in the Soriana supermarket chain has been promoted, while the products of the Club del Gourmet brand are available in the Palacio de Hierro department store. For its part, the presence of food and personal hygiene products has been maintained in Cuba. In Peru, El Corte Inglés maintains the distribution agreement with Supermercados Peruanos through its Plaza Vivanda and Plaza Vea banners; and in Colombia with Success.

El Corte Inglés reinforces its international presence and reaches a turnover of 600 million outside despite the Covid

What: Call to Deliver, SM Store's hybrid and safe shopping service available through #143SM, Facebook Messenger and Viber allow customers to chat with store personal shoppers and have their items delivered right at their doorstep or picked up in-store.

Why it is important: Compared to 2020, Call to Deliver service is achieving double-digit growth.

During the enhanced community quarantine from August 6 to 20, discounts were also made available to COVID vaccine cardholders via #SMCalltoDeliver.

SM's Call to Deliver: Delivering Enhanced Customer Experience

What: In just five years, El Corte Inglés was able to reduce its electricity consumption by about 25%.

Why it is important: In financial year 2020, 100% of the electricity supplied to the retailer in Spain and 55% in Portugal came directly from renewable energy sources.

This year's drop in consumption was larger than in prior years: -10% compared to 2019, partly as a result of the state of emergency and limitations on scheduling and commercial activity. The savings are equivalent to the consumption of about 43,000 households in one year.

In order to increase energy efficiency, the company has installed more than 4,000 integrated telemetry points in most of the centers of El Corte Inglés.

In addition, the company has implemented a Consumption Control project that allows to increase the knowledge of the use made of energy, identify behaviours, comparisons and anomalies in each of the different consumer systems. Currently, it has more than 4,000 telemetry points integrated in most of the centres of El Corte Inglés.

On the other hand, El Corte Inglés has advanced in the process of implementing new charging points for electric vehicles in shopping centres, thus responding to its commitment to sustainable mobility. The company has now more than 200 charging points. This consumption is offered to support and promote electric mobility, with the added value of 100% renewable energy with a guarantee of origin in Spain.

El Corte Inglés manages to reduce its electricity consumption by almost 25% in five years

What: This launch coincides with a modern re-branding aiming to position the store as a leading e-commerce brand.

Why it is important: Customers will find more than 8 million products from Falabella, Sodimac, Tottus and Linio stores all on one site, along with thousands of items on its Marketplace.

The platform has categories covering the group's retailers, together with new categories such as health, wellness, pets, books and automotive. Customers can also access all of Falabella's benefits from this site, such as its Fpay digital wallet, its CMR online account, its CMR points loyalty program and its network of pick-up and return points at all of its stores and shopping centers throughout Chile.

The launch of falabella.com has been supported by improvements to the company's logistics and delivery processes, and an ambitious investment plan that leverages 45 distribution centers and 29 transfer centers with an operating capacity of 1.5 million square meters. Accordingly, falabella.com will continue to strengthen its deliveries, with the promise that 80% will reach customers within 48 hours or less.


Falabella launches new e-commerce platform and unveils new branding for falabella.com

Falabella press release

What: The company diversifies by entering the logistics field.

Why is it important:  Also offering phone, energy or security services, the goal of the company is to move from being a distributor to becoming a service company with a much broader offer.

El Corte Inglés launched a new activity to compete in the logistics and transport sector. The company El Corte Inglés Logística Avanzada, has the following corporate purpose: "the activity of transporting all types of goods, by national or foreign territory and by any means; the logistics activity, including storage, distribution and delivery at destination and agency and transport mediation service".

The objective is to use the entire logistics structure of El Corte Inglés to offer services to third parties, thus expanding the diversification of the business. Marta Álvarez, explains in her letter to shareholders published in the latest annual report that diversification is one of the axes on which the growth plan for the coming years is based.

El Corte Inglés creates a logistics subsidiary to compete with DHL and FedEx

What: At the completion of this project, which is expected by early 2022, Galeries Lafayette will be operating 19 stores directly and 38 as franchises.

Why it is important: This more agile operating model will allow the group to maintain its strong brand presence throughout France while refocusing its investment and efforts on its French flagship stores, the ramp-up of its omni-channel strategy and its targeted expansion outside France.

This project, which would involve the sale of premises and operations, relates to the stores in Angers, Dijon, Grenoble, Le Mans, Limoges, Orléans and Reims. At the same time, Hermione People & Brands (FIB group retail division), already an important franchisee of Galeries Lafayette, would take over the stores in Pau, Rosny and Tours, whereas the business assets of the Avignon store would be entrusted to Philippe Sempéré and Nicolas Chambon, who already operate the franchise for the Béziers store.

Three years after arranging franchises for 22 Galeries Lafayette stores to Hermione People & Brands, this new phase aims to reinvigorate these high-quality commercial and property assets, located mid-sized French provincial cities. This project would have no impact on employment.

Galeries Lafayette launches new franchising project for its store network in France

What: The group reported consolidated revenues of MXN 14,399 million (EUR 609 million) and EBITDA of MXN 1,070 million (EUR 45.3 million).

Why it is important: The department store results are above the sector average and at 2019 levels.

The company points out that the department stores associated with the National Association of Self-Service and Departmental Stores (Antad) recorded a growth of 53% in the same period.

During the forced store closures, the company launched the Palacio Contigo program, which reinforced distance sales through personal shopping. A new contact centre was also launched under the slogan One Call, One Solution.

In addition, El Palacio de Hierro, continues to retain 100% of the workforce, which allows more than 80% of its administrative employees to carry out their activities remotely.

El Palacio de Hierro shoots up its sales by 73% in the second quarter

What: El Corte Inglés launches 'La Vuelta al Cole', a set of new services to facilitate 'back to school' purchases.

Why it is important: This year, the company offers clients a new 'buy now pay later' payment option. Customers can pay on 31 October or in a 3 months instalment plan without interest.

This year to make the purchase as easy as possible and avoid queues and waits, the company offers the option to book an appointment for the purchase of uniforms. The appointment service will be available both on the web and in the App.

The purchases framed in the "Vuelta al Cole" will be rewarded with 10% of the amount. These bonuses will be redeemable until October 31 in purchases over 30 euros. El Corte Inglés also offers great discounts on all the items needed to start the school year.

Hands-free shopping, in-store pickup, Click and Car service and home delivery are completing the Back to School shopping experience.

El Corte Inglés launches 'La Vuelta al Cole' with new services such as prior appointment to facilitate shopping

Occupying a total space of 30 sqm, the store houses a range of around 20 brands from a wide variety of areas, including XD Design, Sprayground, Lexon, Wouf, Green Factory, Donkey Products, Moleskine, Just Spices, Paper & Tea and the Italian lifestyle brand 24Bottles. The concept store will be open until 5 September.

Breuninger Brings Superstore to Nuremberg

What: Philippe Houzé is set to open MAPIC 2021 as the keynote speaker on 30 November 2021.

Why it is important: IADS' Managing Director will interview Philippe Houzé during the opening of the trade show.

Philippe Houzé, CEO of Galeries Lafayette Group is set to open MAPIC 2021 "People & Places: A New Chapter" where he will be interviewed by Selvane Mohandas du Ménil, Managing Director at IADS.

The 2021 theme of "People and Places" and "A New Chapter" recognizes that the whole industry has to encompass human, face-to-face interaction, emotions, new business models, innovation and the increasing role of social media networks and virtual communications, while also providing the best physical experiences locally, in cities and regions.

Register for the event below!

Register for the event here

Philippe Houzé to open MAPIC 2021 

2021 CONFERENCE YEAR-ROUND PROGRAMME

Discover all the sessions 

What: The department store is launching "Paris Mon Amour" campaign with Paris Mayor Anne Hidalgo.

Why is it important: Deprived from Asian tourists, Galeries Lafayette and local authorities are betting on Paris appeal to attract local and European tourism this summer.

The campaign kick-off brought together politicians, tourist board authorities, fashion industry figures, Paris Mayor Anne Hidalgo, Mickey and Minnie Mouse and a troupe of dancers from the Moulin Rouge.

"We're feeling some enthusiasm from local clients and we're doing everything we can to draw them in," said Galeries Lafayette chief executive officer Nicolas Houzé. He said the department store is projecting the return of tourists in 2022.

The campaign features partnerships with Disneyland Paris park as well as with Moulin Rouge, coming along with a set of instore activities:  among other participating brands, the ready-to-wear brand AMI has set a huge heart-shaped logo under the coupole dome completed by two pop-ups and several showcases throughout the store. Gastronomy will also be celebrated: Pierre Hermé,Jean-Paul Hévin, Pierre Marcolini or Dalloyau will offer exclusive creations.

Galeries Lafayette Kicks Off Paris Tourism Campaign With Mayor Anne Hidalgo

What: El Palacio de Hierro has a new CFO

Why it is important:  The new incumbent is a seasoned retailer with experience in Finance, including a former position at Falabella.

El Palacio de Hierro announced that Julio José Alcalde left his position as CFO he had held since 2017, and was replaced by José Antonio Bustos Ortega, who is coming from Sodimac (Falabella).

Mr Bustos Ortega has a significant track record in retail, as he also held various financial positions at Forus (one of the prominent fashion retailer in Chile).

El Palacio de Hierro RESTRUCTURES AND PRESENTS ITS NEW CFO 

What: The plan is underpinned by the development of existing businesses (retail, travel, insurance and financial services) and entry into new businesses (e.g. logistics, mobile telephony, energy supply and security and alarm services).

Why is it important: EBITDA is expected to double to EUR 1.7 billion, debt should be reduced by 60% and online sales are due to reach up to 30% of Group revenue.

During her presentation, Chairwoman Marta Álvarez stressed how "our team, credibility and brand equity pave the way for delivering this ambitious and forward-looking strategic plan".

The Company's CEO, Víctor del Pozo, explained that the Strategic Plan is articulated with the goal of moving "El Corte Inglés away from being a traditional retailer to offering an unparalleled business ecosystem in Spain".

El Corte Inglés' shareholders voted in favour of all of the motions tabled by the Board of Directors, notably approval of the management report, annual financial statements, non-financial statement and earnings appropriation for 2020. They also gave the go-ahead for the 2021-2026 Strategic Plan.

The CEO also detailed the four new businesses recently rolled out: El Corte Inglés Logistics, aa end-to-end logistics operator; Sweno, the mobile telephony operator; Sweno, the energy supplier; and Sicor, a provider of security, alarm and auxiliary services.

El Corte Inglés' Chairwoman talked about the plans to launch a new company loyalty card this autumn in collaboration with Mastercard that will be usable anywhere in the world.

El Corte Inglés strategic plan